Boston Financial Closes $191M Affordable Housing Fund

Boston Financial closed a $191 million multi-investor Low-Income Housing Tax Credit fund, securing capital to support the construction and preservation of affordable rental housing across 12 states.

The fund, Boston Financial Institutional Tax Credits 63 Limited Partnership, drew commitments from seven institutional investors. It will finance projects involving 14 affordable housing developers across 16 communities, creating or preserving 1,342 rental homes for individuals and families nationwide.

Several developments will offer housing for seniors, veterans, people with physical or mental disabilities, and formerly unhoused individuals and families. Projects include Choice Landing in Crestwood, Kentucky, developed by local nonprofit Pillar.

“The affordable housing industry succeeds because of collaboration,” said John Schromm, senior managing director and co-head of investor capital at Boston Financial. “Each investment in ITC 63 represents a shared commitment among investors, developers, public agencies, and community members to expand and preserve affordable housing opportunities.”

The fund is expected to create 2,210 jobs, generate approximately $249 million in wages and business income, and contribute nearly $90 million in tax revenue to local communities.

Boston Financial said parent company ORIX USA’s balance sheet provides additional flexibility and execution capabilities for its affordable housing platform.

Founded in 1969 and acquired by ORIX Corporation USA in 2016, Boston Financial manages more than $16.8 billion in affordable housing equity. Since the federal tax credit program began in 1986, the firm has worked with more than 200 investors to build or preserve over 420,000 affordable homes.