Boston Financial has announced the closing of a $237.1 million multi-investor low-income housing tax credit fund.
Boston Financial Institutional Tax Credits 62 (ITC 62) is the firm’s second-largest multi-investor fund closed since 2006. It will provide capital for the construction or preservation of 1,527 affordable homes across 10 states—California, Connecticut, Kentucky, Maryland, Massachusetts, Missouri, New Jersey, South Carolina, Tennessee, and Texas.
“We are proud to announce the successful closing of ITC 62, a milestone that reflects the continued confidence of our investors and partners in Boston Financial’s mission,” said Rob Golden, CEO of Boston Financial. “This fund will help finance over a thousand affordable homes for families across the country, reinforcing our long-standing commitment to addressing the nation’s housing crisis and strengthening communities through the power of affordable housing.”
The developments in the fund are being led by 13 affordable housing developers, nearly 40% of which are nonprofit organizations, according to the company.
All the developers in ITC 62 have partnered with Boston Financial for years, according to Thomas Paramore, head of housing and community investments.
The longtime LIHTC syndicator secured commitments from eight institutional investors for its latest fund.
According to Boston Financial, 31% of the properties in this fund will bring affordable rental homes to low-income communities, 56% to moderate-income communities, and 13% to high-income communities. Several developments will have units designated for seniors, veterans, people with physical or mental disabilities, and formerly unhoused families.
ITC 62 is expected to create 2,448 new jobs, bringing an estimated $275 million in wages and business income to surrounding communities, as well as over $99 million in tax revenue.
The Armory in Lynn, Massachusetts, is among the developments in the fund. Under development by the Lynn Housing Authority & Neighborhood Development agency and its nonprofit affiliate Neighborhood Development Associates, The Armory will bring 52 affordable homes for veterans to the community. The project’s centerpiece is the “drill house,” a three-story, gymnasium-like space where National Guard members once lined up in formation on its parquet floors. The Armory’s history is rooted in the Massachusetts National Guard’s heritage as the home of the 101st Field Artillery, a unit tracing its roots back to the pre-Revolutionary War South Regiment.