Boston Financial Closes $221M Fund
The multi-investor fund will finance more than 1,800 affordable housing units across the U.S.
Boston Financial Investment Management has closed on a $221 million Low Income Housing Tax Credit fund. The fund is comprised of 22 tax credit investments that will finance more than 1,800 affordable housing units across 16 multifamily and six senior living communities.
The fund—Boston Financial Institutional Tax Credits 55 LP—has already closed on six investments, including one for Garden Towers, a 150-unit senior property in the Bronx, N.Y., where 30 percent of the units will be set aside for formerly homeless frail and/or disabled seniors in need of permanent supportive housing.
It will provide capital for the new construction and rehabilitation of properties in 13 states: California, Idaho, Louisiana, Massachusetts, Maryland, North Carolina, New Hampshire, New York, Nevada, Texas, Virginia, Washington and Wyoming. Boston Financial estimates ITC 55’s investments and the properties will lead to the creation of about 2,170 temporary and 560 permanent jobs throughout the U.S.
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Nine institutional investors from the banking and insurance sectors participated in the fund, five of which were new. More than 30 percent of the development partners were non-profit entities, which reinforces Boston Financial’s longstanding commitment to creating partnerships with non-profit developers.
Sarah Laubinger, executive vice president and chief production officer at Boston Financial, said in prepared remarks that the firm’s multi-investor strategy is to create inclusive, safe and affordable housing by working with investors and developers to implement a social impact strategy that serves the needs of each community. The properties Boston Financial is investing in will offer more than $4.2 million in social services including creating technology centers with computer work stations, Internet connectivity, tutoring, career development, recreational programs and healthcare screenings.
In March, Boston Financial closed a $173 million LIHTC fund that provided capital for the new construction and rehabilitation of multifamily properties in 12 states: Arkansas, Arizona, California, Florida, Illinois, Kentucky, Louisiana, Massachusetts, North Carolina, New Hampshire, Pennsylvania, and Virginia.
Also that month, the company provided a tax credit equity of approximately $33 million to Preservation of Affordable Housing to renovate Hawthorne Place Apartments, in Independence, Mo. The 745-unit property, the largest affordable housing community in Missouri, was built in 1967 and last renovated in 2003 after POAH acquired the asset. Financing for the renovation came from both public and private sources.