Boston Financial has announced the closing of a $131 million low-income housing tax credit (LIHTC) fund, its first multi-investor fund of the year.
Boston Financial Institutional Tax Credits 58 (ITC 58) will deploy capital across 12 developer partnerships, supporting 1,081 homes.
The fund will aid developers in creating new or preserving existing affordable housing in 15 communities. The properties are in nine states—California, Kentucky, Louisiana, Massachusetts, Maryland, Maine, New Jersey, Pennsylvania, and Texas.
“Successfully closing this fund in the current economic environment speaks to the extraordinary commitment of our capital partners and the Boston Financial team,” said Todd D. Jones, senior managing director and head of tax credit equity production at Boston Financial. “We are thrilled with the outcome and extremely grateful to our investor and developer partners for staying the course and helping us deliver on our collective vision of creating a future where everyone has a home, one investment at a time.”
The firm secured commitments from five institutional investors, including four regional and national banks and a large insurance company.
Eight properties in the latest fund will provide supportive services for residents, including veterans services, elder care, case management for formerly unhoused people, employment assistance, care for those escaping domestic violence, health and dental care, food and utility assistance, legal assistance, and child care resources.
These are communities like the Equinox in Portland, Maine, developed in partnership with Portland-based nonprofit Community Housing of Maine and the Portland Housing Development Corp. The Equinox is part of a larger redevelopment of a historic hospital that will include 95 affordable homes for seniors and families and 15 units set aside for people who have been staying at a local family homeless shelter.
In addition, ITC 58 is expected to create nearly 1,517 new jobs, bringing an estimated $170 million in wages and business income to the surrounding communities, as well as almost $59 million in tax revenue.
Nearly 70% of the properties will bring affordable homes to majority Black, indigenous, and other people of color (BIPOC) communities, and several properties will have units designated for veterans, seniors, persons with physical and mental disabilities, as well as formerly unhoused people, according to Boston Financial.