Boston Financial Closes $145M LIHTC Fund

The financing covers properties in 11 states, and includes 2,800 units of affordable housing for 11 multifamily and six senior communities.

Boston Financial Investment Management has closed of a $145 million low-income housing tax credit (LIHTC) fund, its latest, which is known as Boston Financial Institutional Tax Credits XLVIII Limited Partnership (ITC 48). The fund will provide capital for the new construction and rehabilitation of multifamily properties.

ITC 48 is comprised of 17 tax credit investments, resulting in the financing of more than 2,800 units of affordable housing for 11 multifamily and six senior communities. The properties are in 11 states: Arkansas, California, Florida, Georgia, Kentucky, Louisiana, Maryland, New York, South Carolina, Tennessee and Washington.

Six institutional investors, representing the banking, financial services and insurance sectors, are participating in ITC 48. According to Boston Financial, because of the ITC 48 investments, 3,340 temporary and 864 permanent jobs will be created in various local economies.

Boston Financial a Major Player in Affordable Housing Finance

Since its founding almost 50 years ago, Boston Financial has raised and managed over $11 billion of low‐income housing and historic tax credit equity investments, comprising 2,400 properties and 220,000 units. The company is a subsidiary of ORIX USA, a financial services company headquartered in Dallas, which is part of Tokyo-based ORIX Corp., which operates in 36 countries.

“Given the strength of our parent company, and investor and developer partners, Boston Financial is positioned to provide capital that advances the development of affordable housing,” said Sarah Laubinger, executive vice president of equity production at Boston Capital.

Altogether, since its creation more than 30 years ago, LIHTC has financed over 3 million affordable housing units. From 1995 to 2015, roughly 1,400 projects and 110,000 units were put in service each year, according to HUD LIHTC data.

Last year’s tax cuts decreased the value of LIHTC projects, since tax credits are less valuable overall in a lower-tax environment. To restore part of the lost value, the omnibus spending bill signed into law in late March included changes that increased the amount LIHTC allocations and made the program available to tenants whose income exceeded 60 percent of adjusted area median gross income.