Boston Financial Closes $131M Fund

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Boston Financial has closed its first Low Income Housing Tax Credit multi-investor fund, a $131 million investment vehicle that will provide capital for the creation and preservation of affordable housing properties in 15 communities across nine states.

The low-income housing tax credit fund, Institutional Tax Credits 58 Limited Partnership, secured commitments from five institutional investors, including four regional and national banks and a large insurance company, allowing it to deploy capital across 12 developer partnerships. ITC 58 will fund development and improvements at properties in California, Kentucky, Louisiana, Massachusetts, Maryland, Maine, New Jersey, Pennsylvania and Texas.

Nearly 70 percent of the properties will bring affordable homes to majority-minority communities. Several of the properties will have units designated for veterans, seniors, persons with physical and mental disabilities and people who have been homeless. Eight of the properties in ITC 58 will provide supportive services for residents, including veterans’ services, elder care, case management for the formerly homeless, employment assistance, care for those escaping domestic violence, health and dental care, food and utility assistance, legal assistance and childcare.

One of the communities receiving funding from ITC 58 will be The Equinox in Portland, Maine. The project is being developed in partnership with the Portland-based nonprofit Community Hospital of Maine and the Portland Housing Development Corp. The Equinox, part of a larger redevelopment project at the former Mercy Hospital property, will provide 95 affordable homes for seniors and families. Fifteen units will be set aside for people who have been staying at a local homeless shelter.

The fund is also expected to create more than 1,500 new jobs, bringing an estimated $170 million in wages and business income to surrounding communities, as well as nearly $59 million in tax revenue.

Earlier Funds

Since the beginning of the LIHTC program in 1986, Boston Financial has worked with more than 200 investors to preserve or build more than 360,000 affordable homes. The firm had its best year to date in 2022, with nearly $1.4 billion in LIHTC equity raised.

In November, the firm closed Institutional Tax Credits 57, its third LIHTC multi-investor fund of 2022. The $164 million national fund was expected to create 1,233 affordable units in 16 communities across 13 states. ITC 57 secured commitments from six investors, including a new investor, and attracted 14 developer partners, including two new partners.

The firm closed ITC 56 in April 2022. The $290 million fund was the single-largest multi-investor fund syndicated by Boston Financial in the last 15 years. It comprised 23 tax-credit investments used to finance 17 multifamily and six senior living communities, for a total of more than 2,500 affordable housing units. More than half of the properties will be new construction projects.