Boston Financial Investment Management has closed a $173 million Low Income Housing Tax Credit fund, Boston Financial Institutional Tax Credits 54 Limited Partnership.
ITC 54 is composed of 19 tax credit investments and will finance more than 1,500 affordable housing units across 16 multi-family and three senior living communities.
The fund will provide capital for new construction and rehabilitation of multi-family properties in 12 states, leading to the creation of some 1,900 temporary and 470 permanent jobs.
Six institutional investors from the banking and insurance sectors participated in ITC 54, all of whom were repeat investors in Boston Financial funds.
“Amid unprecedented times, it has been incredible to witness the perseverance of our industry in navigating the many challenges presented by the pandemic,” said Todd Jones, Senior Vice President, Director of Institutional Sales.
“We are proud of our ongoing commitment to preserve and expand affordable housing across the country and thank our many investor and developer partners for supporting us in this important effort.”
Created by the Tax Reform Act of 1986, the LIHTC program gives State and local LIHTC-allocating agencies the equivalent of approximately $8 billion in annual budget authority to issue tax credits for the acquisition, rehabilitation, or new construction of rental housing targeted to lower-income households.
The program is considered the most important resource for creating affordable housing in the United States today.