Boston Financial has closed its latest Low Income Housing Tax Credit multi-investor fund, ITC 62, at $237 million. The second largest multi-investor LIHTC fund the company has closed since 2006, the investment will go towards developing and preserving affordable housing in 16 different communities in 10 states.
Commitments to this fund included capital from eight institutional investors. Boston Financial is partnering with 13 affordable housing developers, and almost half of which are non-profit, for the construction and preservation of 1,527 units across California, Connecticut, Kentucky, Maryland, Massachusetts, Missouri, New Jersey, South Carolina, Tennessee and Texas.
In addition to expanding the nation’s affordable housing stock, the investments are expected to generate a significant economic impact, including 2,448 jobs, more than $99 million in tax revenue and $275 million in wages and business income. Since 1986, Boston Financial has worked with more than 200 investors to create more than 400,000 affordable homes nationwide.
More than half of the communities benefiting from the latest fund are moderate-income areas. Several developments will target vulnerable populations, including seniors, veterans, formerly unhoused families, and individuals with disabilities.
A closer look
A few featured communities that Boston Financial and its partnered developers will be improving include Smith Avenue Apartments in Lemoore, Calif., the company told Multi-Housing News. The Pacific Cos. is the developer executing the project, which will add a community building, laundry room, playground and a swimming pool. The community will include 108 affordable apartments.
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In Texas, Resolution Cos. is rehabilitating Wyndham Park in Baytown, a senior housing community with 184 affordable residences built in 2008. The property is in the Greater Houston area and features one- and two-bedroom units.
On the East Coast, the fund will also benefit The Amory, a planned multifamily community for veterans in Lynn, Mass. The Armory is a project developed by the Lynn Housing Authority and Neighborhood Development Associates at the Lynn Armory, a prerevolutionary war-era structure previously used by the Massachusetts National Guard.
In January, itemlive reported that the Massachusetts’ Executive Office of Veterans Services awarded the project $2.5 million in American Rescue Plan Act End Veteran Homeless funds as part of the initiative to address and limit veteran homelessness. Now moving forward, The Amory will include 52 affordable single-bedroom units, with a few two-bedroom units and a three-story gym-like space.
Boston Financial’s commitment to affordable housing
The closing of ITC 62 was the second LIHTC fund to close this year for Boston Financial. ITC 61 closed in May with $112 million in capital investments from five investors, including regional and national banks, the company shared. This fund benefitted 1,112 affordable units within 12 communities across Arizona, Delaware, Louisiana, Massachusetts, North Carolina, Rhode Island, Texas, Virginia and Washington.
Last year, Boston Financial closed a similar multi-investor fund totaling $170 million for a similar venture. Through this investment, the company preserved and created 1,418 units in 13 states, including California, Maine, Rhode Island, Virginia and Wisconsin. Almost half of the properties were focused on providing minority communities with affordable housing as well as seniors and veterans.
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