Boston Financial Investment Management has continued to ramp up funding for its affordable housing funds, closing its 56th fund in the series at $290 million. The Boston Financial Institutional Tax Credits 56 LP (ITC 56) was first opened to investors in October and has since attracted national and regional banks, as well as insurance companies.
According to Boston Financial, one third of the institutional investors who contributed to ITC 56 were new investors. The latest fund is also the single largest multi-investor fund syndicated by the company in the last 15 years, according to Boston Financial.
ITC 56 is made up of 23 tax credit investments that will be used to finance 17 multifamily and six senior living communities, for a total of more than 2,500 affordable housing units. More than half of the properties will be new construction projects, while the remaining communities that are part of the fund are going to be rehabilitated. ITC 56 spans 15 states, including Alabama, California, Colorado, Connecticut, Florida, Illinois, Indiana, Kentucky, Louisiana, Missouri, New Jersey, Pennsylvania, Tennessee, Texas, and Washington, with most of the equity funding the development of communities in areas with a minority population of 50 percent or greater.
PROVIDING SOCIAL SERVICES
The fund will also have $6.4 million in the development and operating budgets for the properties that are meant for tenant-focused social services. The services will include adult education, after school, service, skill-building classes, and health and wellness. At the Liberty View affordable housing community in Aurora, Colo., Boston Financial is planning to partner with the Aurora Housing Authority for veteran-specific services.
The company similarly set aside $4.2 million for social services with its Boston Financial Institutional Tax Credits 55 LP. The previous fund closed in September at $221 million and also financed affordable housing homes and senior living communities in 13 states. While ITC 56 includes communities in California, Boston Financial recently closed its California-focused fund in March that would create more than 600 units of affordable housing in the state.