Boston Financial Investment Management has restarted its California-focused funds with the closing of its latest low income housing tax credit fund. The Boston Financial California Fund II (BF CA II) closed at $83 million and will be used to fund affordable housing communities across the state. The company said the fund attracted several new investors for a total of eight institutional investors, adding that four of the investors were new.
According to the company, BF CA II has eight tax credit investments that will finance more than 600 affordable housing units, all of which will be reserved for California residents making up to 60 percent AMI. The fund’s portfolio is expected to include six multifamily properties and two senior living communities. Boston Financial said it will be working with six new developers on properties that will be located in California’s urban areas, like Gilroy, San Diego, Los Angeles, Oroville, Bawley and Lindsay.
The fund also will provide $6.2 million to be used for resident-focused social services, including adult education, health and wellness, job training and placement, tutoring services and civic involvement initiatives.
MORE CALIFORNIA FUNDS IN THE FUTURE
“The regional fund will enhance Boston Financial’s longstanding and deep involvement in California,” Thomas Pereira, senior vice president of institutional sales at Boston Financial, told Multi-Housing News. “It provides an additional competitive outlet for our existing developers and investors and creates the opportunity to onboard several new developers and investors.”
BF CA II will be the company’s second California-focused fund, following its first one approximately 30 years ago. Sarah Laubinger, executive vice president & chief production officer at Boston Financial, said in prepared remarks that Boston Financial will aim to make California-focused funds part of its annual offering moving forward.
Despite not having a California-focused fund in a while, Laubinger also said in prepared remarks that the company had still been working with many California developers. Boston Financial’s funds have investments in more than 250 properties in California, including its Boston Financial Institutional Tax Credits 55 LP. The fund recently closed in September at $221 million and will provide capital for communities in 13 states, including California.