Boston Financial Closes Second-Largest LIHTC Fund In Nearly 20 Years

Boston Financial, the longest-standing syndicator focused exclusively on affordable housing with a portfolio of over $16 billion in equity under management, today announced the closing of Boston Financial Institutional Tax Credits 62 Limited Partnership (“ITC 62”), a $237.1 million multi-investor LIHTC fund. ITC 62 is the second-largest multi-investor fund the firm has closed in almost 20 years.

Boston Financial secured commitments from eight institutional investors for ITC 62, enabling the deployment of capital with 13 affordable housing developers – nearly 40% of which are nonprofit organizations. The fund will provide capital for both new construction and the preservation of 1,527 affordable rental homes in 16 communities across 10 states: California, Connecticut, Kentucky, Maryland, Massachusetts, Missouri, New Jersey, South Carolina, Tennessee, and Texas.

“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,” said Rob Golden, CEO of Boston Financial. “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.”

The need for affordable housing is everywhere; 31% of the properties in this fund will bring quality, affordable rental homes to low-income communities, 56% to moderate-income communities, and 13% to high-income communities. Several developments will have units designated for seniors, veterans, people with physical or mental disabilities, and formerly unhoused families. ITC 62 is expected to create 2,448 new jobs, bringing an estimated $275 million in wages and business income to surrounding communities, as well as over $99 million in tax revenue.

“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,” said Thomas Paramore, Head of Housing and Community Investments at Boston Financial. “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.”

What ITC 62 Means For Communities

It takes a village to build new affordable housing, and to preserve the affordable housing we have already. Over 20 million Americans are paying more than 30% of their income on rent – an all-time high for our country. A lack of affordable housing can force families to make difficult sacrifices to pay rent, such as forgoing medications and healthier food, struggling with childcare, and working multiple jobs to make ends meet.

ITC 62 includes communities such as The Armory. Located in Lynn, MA, and developed by the Lynn Housing Authority and Neighborhood Development Associates, The Armory will bring 52 new affordable homes for veterans to the community. The project’s centerpiece is the “drill house,” a three-story gymnasium-like space where National Guard members once lined up in formation on its parquet floors. The Armory’s history is rooted in the Massachusetts National Guard’s heritage as the home of the 101st Field Artillery, a unit tracing its roots back to the pre-Revolutionary War “South Regiment”.

“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,” continues Mr. Paramore. Since the beginning of the LIHTC program in 1986, Boston Financial has worked with over 200 investors to preserve or build almost 400,000 affordable homes.