Boston Financial Closes $164M Multi-Investor Fund

Samma Senior Apartments. Rendering courtesy of Boston Financial

Boston Financial closed its third LIHTC multi-investor fund this year, a $164 million national fund that will create 1,233 affordable units in 16 communities across 13 states.

The low-income housing tax credit fund, Boston Financial Institutional Tax Credits 57, will provide capital for the new construction of and preservation of existing affordable housing properties in: Arizona, California, Delaware, Florida, Kentucky, Massachusetts, Montana, Ohio, Rhode Island, Tennessee, Texas, Virginia and Washington.

The fund secured commitments from six investors, including a new investor. ITC 57 also attracted 14 developer partners, including two new partners. The fund is expected to create nearly 2,100 new jobs, bringing an estimated additional $233.4 million in wages and business income to the surrounding communities, as well as more than $81 million in federal tax revenue.

Todd Jones, head of tax credit equity production at Boston Financial, said in a prepared statement the firm was grateful for the collaboration and commitment from its developer and investor partners, particularly while navigating an increasingly complex deal-making landscape of both micro- and macro-economic challenges. ITC represents Boston Financial’s ongoing commitment to equity initiatives that enable investors to contribute to social impact strategies and affordable housing development goals across the nation.

Community details

Six of the properties in ITC 57 will bring affordable homes to majority Black, Indigenous and people of color communities and one property will have 20 percent of its units designated for persons with disabilities.

Samma Senior Apartments in Bothell, Wash., will bring 76 new affordable homes to the community along fully funded supportive services for residents including 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 childcare resources.

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. ITC 57 is Boston Financial’s third LIHTC multi-investor fund closing this year. In April, Boston Financial closed ITC 56, a $290 million fund and the single-largest multi-investor fund syndicated by the firm 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.

The firm closed ITC 55 in September, a $221 million LIHTC fund comprised of 22 tax credit investments that financed more than 1,800 affordable housing units across 16 multifamily and six senior living communities in 13 states.

Boston Financial also closed an $83 million fund in California in March that will be used to finance more than 600 affordable housing units in communities including Los Angeles and San Diego.