Boston Financial Secures $170 Million for Affordable Housing Fund
BOSTON--Boston Financial, recognized as the top syndicator of U.S. Low-Income Housing Tax Credits (LIHTC), proudly announces the closure of Boston Financial Institutional Tax Credits 60 Limited Partnership, a noteworthy $170 million multi-investor LIHTC fund.
Commitments from Key Investors
This innovative fund, known as ITC 60, garnered commitments from six prominent institutional investors, which include a diverse mix of regional and national banks along with insurance companies. This collective support enables Boston Financial to deploy vital capital, collaborating with 14 dedicated affordable housing developers, 30% of whom are nonprofit organizations. The fund is poised to foster both the construction and preservation of 1,418 affordable rental units across 16 communities.
Rob Golden, the Chief Executive Officer of Boston Financial, emphasized the importance of this initiative, stating, "At a time when more Americans than ever are facing a lack of affordable housing, it’s critical that we maintain our ongoing commitment to providing affordable housing capital solutions. ITC 60 is the first new LIHTC multi-fund that Boston Financial has closed since I assumed the role of CEO, and I am proud of my team’s hard work in building this fund. We are grateful for the continued support and trust our investors place in us."
Economic Impact and Community Focus
ITC 60 is anticipated to create over 2,100 new jobs, contributing an estimated $250 million in wages and business income to local economies. Additionally, it will generate over $90 million in tax revenue. Notably, nearly 45% of the properties included in this fund are designed to offer affordable rental homes to underserved minority communities, with several units specifically set aside for seniors, veterans, individuals with disabilities, and formerly homeless families.
"We are in the midst of a protracted affordable housing crisis, with over 22 million households spending more than 30% of their income on rent," remarked Thomas Paramore, the Head of Housing and Community Investments at Boston Financial. "This burden disproportionately affects very low-income families and individuals. I am honored to be part of a dedicated team that collaborates closely with investors and developers to produce urgently needed affordable housing."
Support from Parent Company
The establishment of ITC 60 underscores the steadfast support from Boston Financial’s parent company, ORIX USA, which remains committed to enhancing Boston Financial’s LIHTC platform. Golden remarked, "We are fortunate to have tremendous backing from ORIX USA, which amplifies the Boston Financial platform and our fund executions. Having such an aligned parent company allows us to tackle the challenges surrounding affordable housing effectively."
Spotlight on Pointe Common
One exciting venture under ITC 60 is Pointe Common, located in Fullerton, California. This development will offer 65 affordable apartments to households earning between 30% and 70% of the area median income. Developed alongside long-time partner Meta, Pointe Common is dedicated to serving families in need. The community features a variety of essential 1-, 2-, and 3-bedroom apartments and offers an array of amenities for residents.
Boston Financial's Legacy in Affordable Housing
Since the LIHTC program's inception in 1986, Boston Financial has collaborated with over 200 investors to facilitate the preservation or creation of over 360,000 affordable homes across the nation. The company continues to strive for a vision where everyone has a safe and secure home.
About Boston Financial
Boston Financial stands as the largest Low Income Housing Tax Credits (LIHTC) syndicator in the United States, managing a substantial $16.2 billion portfolio encompassing nearly 1,900 properties. Established in 1969 and acquired by ORIX Corporation USA in 2016, the firm is dedicated to creating sustainable solutions for affordable housing.
About ORIX Corporation USA
Founded in the U.S. in 1981, ORIX USA has evolved into a multifaceted investment and asset management firm. Specializing in private credit, real estate, and private equity, ORIX USA aligns its interests with third-party investors to foster collaborative growth. With approximately 1,300 employees across the U.S., ORIX Corporation is publicly traded and operates globally in 30 countries.
Frequently Asked Questions
What is ITC 60?
ITC 60 is a $170 million multi-investor Low-Income Housing Tax Credits fund launched by Boston Financial.
How many affordable housing units will ITC 60 support?
The fund is aimed at constructing and preserving 1,418 affordable housing units across 16 communities.
What impact will ITC 60 have on local economies?
It is projected to create over 2,100 jobs and contribute around $250 million in wages and business income to local economies.
Who are the key investors in ITC 60?
ITC 60 has secured commitments from six institutional investors, including various banks and insurance companies.
What role does ORIX USA play in Boston Financial?
ORIX USA is the parent company of Boston Financial, providing essential resources and support to enhance the firm's initiatives in affordable housing.
