Announcing ITC 58
Boston Financial, one of the largest and most established syndicators of Low-Income Housing Tax Credits (“LIHTC”) in the U.S., today announced the closing of Boston Financial Institutional Tax Credits 58 Limited Partnership (“ITC 58”), a $131 million LIHTC fund. ITC 58 is the first LIHTC fund syndicated by Boston Financial this year, representing the firm’s ongoing commitment to equity initiatives that enable investors to contribute to meaningful social impact strategies and goals in affordable housing developments across the country.
ITC 58 secured commitments from five institutional investors, including four regional and national banks and a large insurance company, allowing it to deploy capital across 12 developer partnerships. ITC 58 will provide capital for both new construction and the preservation of existing affordable housing properties in 15 communities in nine states: California, Kentucky, Louisiana, Massachusetts, Maryland, Maine, New Jersey, Pennsylvania, and Texas. Nearly 70% of the properties in ITC 58 will bring affordable homes to majority Black, Indigenous and other people of color (BIPOC) communities, and several properties will have units designated for veterans, seniors, persons with physical and mental disabilities, and formerly unhoused people.
Eight of the properties included in ITC 58 will provide supportive services for residents including: veterans services, elder care, case management for formerly unhoused people, employment assistance, care for those escaping domestic violence, health and dental care, food and utility assistance, legal assistance, and childcare resources.
These are communities like The Equinox in Portland, Maine, developed in partnership with Portland-based nonprofit Community Housing of Maine and the Portland Housing Development Corporation. The Equinox is part of a larger redevelopment of an historic hospital that will include 95 affordable homes for seniors and families, and 15 units will be set aside for people who have been staying at a local family homeless shelter.
ITC 58 secured commitments from 5 investors to invest across 12 developer partnerships. The fund is expected to create nearly 1,517 new jobs, bringing an estimated additional $170 million in wages and business income to the surrounding communities, as well as almost $59 in tax revenue.
“Successfully closing this fund in the current economic environment speaks to the extraordinary commitment of our capital partners and the Boston Financial team,” said Todd D. Jones, Senior Managing Director, Head of Tax Credit Equity Production at Boston Financial. “We are thrilled with the outcome and extremely grateful to our investor and developer partners for staying the course and helping us to deliver on our collective vision of creating a future where everyone has a home, one investment at a time.” 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. ITC 58 is Boston Financial’s first LIHTC multi-investor fund closing of this calendar year, following the firm’s best year to date in 2022, with nearly $1.4 billion in LIHTC equity closed.