Boston Financial has followed up on its first Low Income Housing Tax Credit fund close earlier this year with a second LIHTC investment vehicle. The firm closed its Boston Financial Institutional Tax Credits 59 LP, or ITC 59, after securing $164 million from a group of seven institutional investors.
The investors in the fund represent a mix of regional and national banks and insurance companies, according to Boston Financial. Sources close to Boston Financial told Multi-Housing News that most investors were repeat inventors, but there was one new investor.
ITC 59 will focus on affordable housing and provide capital to both new construction builds and preservation projects. The fund will invest in 22 projects across 10 states, including properties in California, Illinois, Kentucky, Louisiana, Massachusetts, Montana, Nevada, North Carolina, Ohio and Tennessee. These will comprise 15 preservation projects and seven new construction projects, sources close to Boston Financial told MHN.
According to Boston Financial, nearly 70 percent of the properties will bring affordable rental housing to minority communities, while several properties will have units designated for seniors, people with disabilities or formerly homeless residents.
Vanderbilt Apartments, a senior housing community in Asheville, N.C., is one of the assets the fund will invest in. The property was first constructed as a hotel in 1924 and was later converted to affordable housing in 1969. Boston Financial plans to work with the nonprofit National Church Residences to ensure 13 apartments at the 123-unit property are designated for those with disabilities or struggling with homelessness. Vanderbilt Apartments will also have several support services for its tenants, along with a resident services coordinator.
Closing another affordable housing fund
Boston Financial has a long history of investing in affordable housing after the 1986 adoption of the LIHTC program. Since then, the firm has worked with more than 200 investors to preserve or build more than 360,000 affordable homes. ITC 59 represents the firm’s second multi-investor LIHTC fund this year. In April, the firm closed ITC 58, which saw five investors commit a total of $131 million. Similarly, the fund is expected to create 1,081 affordable homes across nine states. A year prior, Boston Financial closed on ITC 57, which raised $164 million from six investors.
