Boston Financial Closes $164M LIHTC Fund
Boston Financial announced the closing of Boston Financial Institutional Tax Credits 59 Limited Partnership (ITC), a $164 million low-income housing tax credits (LIHTC) fund.
This is the second multi-investor LIHTC fund syndicated by Boston Financial this year, following the $131 million ITC 58 in April.
ITC 59 secured commitments with 14 affordable housing developers – over 40% of whom are nonprofits, according to the firm. The fund is expected to create nearly 1,980 new jobs, bringing an estimated $223 million in wages and business income to the surrounding communities, as well as almost $77 million in tax revenue.
The fund will provide capital for both new construction as well as the preservation of 22 affordable housing properties in 18 communities across California, Illinois, Kentucky, Louisiana, Massachusetts, Montana, Nevada, North Carolina, Ohio and Tennessee.
“Funding and building affordable housing in the current economy is challenging, with developers facing higher interest rates and expense structures and investors struggling to generate satisfactory returns relative to increased cost of capital amid disruption in the capital markets,” said Todd D. Jones, Head of Tax Credit Equity Production at Boston Financial. “Attracting deals and capital for a $164 million fund in this market is a remarkable achievement that we are very proud of at Boston Financial.”
Since the beginning of the LIHTC program in 1986, Boston Financial has worked with over 200 investors to preserve or build over 360,000 affordable homes.
Boston Financial was founded in 1969 and acquired by ORIX Corporation USA in 2016.
Pictured: Vanderbilt Apartments (credit to Boston Financial)
