Boston Financial, a long-standing syndicator that specializes exclusively in affordable housing, announced the closing of the Boston Financial Institutional Tax Credits 62 Limited Partnership (ITC 62). This fund represents a significant milestone, totaling $237.1 million and marking it as one of the largest multi-investor Low-Income Housing Tax Credit (LIHTC) funds the firm has established since 2006.
With a portfolio exceeding $16 billion in equity under management, Boston Financial continues to be a leader in the realm of affordable housing development.
The closing of ITC 62 was made possible through the solid commitments obtained from eight institutional investors, which facilitated the allocation of capital to 13 different affordable housing developers. Impressively, nearly 40% of these developers are nonprofit organizations, evidencing Boston Financial’s dedication to supporting a diverse range of stakeholders in the affordable housing sector.
The fund’s primary objective is to provide essential capital for both the new construction of affordable housing units and the preservation of existing affordable rental homes. In total, the fund aims to impact 1,527 affordable rental homes across 16 communities located in 10 states: California, Connecticut, Kentucky, Maryland, Massachusetts, Missouri, New Jersey, South Carolina, Tennessee, and Texas.
The demand for affordable housing is urgent and pervasive in the current economic landscape. Within this fund, 31% of the properties will specifically cater to low-income communities, 56% will serve moderate-income areas, and 13% will address needs in high-income communities. The developments supported by ITC 62 are particularly notable for their inclusivity, as several projects will offer units designated for vulnerable populations, including seniors, veterans, individuals with physical or mental disabilities, and families who have formerly experienced homelessness.
ITC 62 is projected to create approximately 2,448 new jobs, significantly benefiting local economies by injecting an estimated $275 million in wages and business income into the surrounding communities. In addition to economic growth, the fund is anticipated to generate over $99 million in tax revenue, further supporting state and local services.
Among the notable projects funded is The Armory, located in Lynn, Massachusetts, and developed in collaboration with the Lynn Housing Authority and Neighborhood Development Associates. The Armory project will bring 52 new affordable homes specifically for veterans to the community, meeting a critical need within this demographic.
A standout feature of this project is the “drill house,” a three-story, gymnasium-like space where National Guard members once gathered. The Armory has a rich historical background, being the former site of the 101st Field Artillery, a unit that traces its lineage back to the pre-Revolutionary War “South Regiment,” thus holding significant cultural and historical importance.
Since the inception of the LIHTC program in 1986, Boston Financial has leveraged its expertise to partner with over 200 investors, successfully preserving or developing nearly 400,000 affordable homes. Through its ongoing commitment to affordable housing, Boston Financial continues to transform communities and improve the lives of countless individuals and families across the nation.
KEY QUOTES:
“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. 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.”
Rob Golden, CEO of Boston Financial
“For over 55 years, Boston Financial has focused on building and preserving affordable housing across the nation. Our proven platform unites developers, investors, and government at all levels to transform ambitious housing goals into real, lasting communities. The renewed national attention on affordable housing energizes us, and we are honored by the trust our investor and developer partners place in our experience and vision. Remarkably, 100% of the developers in ITC 62 have partnered with us for years, a testament to the lasting relationships we build. Closing ITC 62—the second-largest multi-fund in nearly two decades—signals tremendous momentum, and we are excited to accelerate our impact in the year ahead.”
Thomas Paramore, Head of Housing and Community Investments at Boston Financial
