Boston Financial has raised a total of $170 million from a fund that commits capital to support affordable housing.
Six institutional investors participated in the Boston Financial Institutions Tax Credit 60 Limited Partnership (ITC 60). Although currently closed, the fund receives support from banks and insurance companies. The funding will go to 14 affordable housing developers, 30% of which represent nonprofit organizations.
ITC 60 aims to build 1,418 homes in 16 communities. It is located in 13 states, including North Carolina, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, California, Illinois, Louisiana, Maine, Wisconsin, Maryland, and Massachusetts.
Point Common in Fullerton, California, is among the residential communities affected by the fund, which is publicly traded by Boston Financial. Households earning between 30 and 70 percent of the area’s median income will have access to 65 “high-quality, affordable apartments,” the company said.
In addition to affordable housing, ITC 60 is planned to generate more than $90 million in tax revenue, increase business revenue and wages by an estimated $250 million, and create more than 2,100 job opportunities.
“We are committed to providing affordable housing capital solutions at a time when more Americans than ever before are facing an affordable housing shortage,” Rob Golden, CEO of Boston Financial, said in a statement. It is important that we maintain a continued commitment to doing so.”
“ITC 60 is the first new LIHTC multi-fund that Boston Financial has closed since I became CEO in May of this year, and I am very pleased with this successful close. I am proud of my team’s hard work and appreciate the continued support and confidence our investment partners have in Boston Financial and our platform. ”
The move builds on Boston Financial’s past in the affordable housing space. Meta, the developer of Pointe Common, is still active. Together, they have helped bring approximately 2,300 units of affordable housing to approximately 20 communities.
The latest fund is part of the company’s low-income housing tax credit program, which began in 1986. Since then, Boston Financial has worked with more than 200 investors to preserve or build more than 360,000 units of affordable housing.
