Boston Financial Investment Management (“Boston Financial”) today announced the close of an $83 million Low Income Housing Tax Credit (“LIHTC”) fund, Boston Financial California Fund II, Limited Partnership (“BF CA II”). BF CA II is comprised of eight tax credit investments that will finance more than 600 affordable housing units of six multifamily properties and two senior living communities for those across the state earning up to 60% of Area Median Income.
BF CA II is Boston Financial’s first California-focused fund in almost 30 years and will provide essential capital for the construction and rehabilitation of its properties in that state. The development and operating budgets for the properties include $6.2 million for tenant-focused social services for designated properties to help close the persistent economic gap in historically underserved areas. These include but are not limited to – adult education, health and wellness, job training and placement, tutoring services, and civic involvement initiatives.
BF CA II attracted several new investors and developers to Boston Financial. Of the eight institutional investors who participated in the fund, four investors are new to Boston Financial. In addition, the six developers included several new partners, including one of the largest nonprofit housing organizations in the western U.S, reinforcing Boston Financial’s strong commitment to creating thriving partnerships with non-profit developers.
“We believe that combining permanent supportive housing with robust social services helps foster economic and social well-being and growth. BF CA II will continue this mission and support underserved communities across California’s major cities,” said Tom Pereira, Senior Vice President, Director of Institutional Sales at Boston Financial. “Our ability to attract new investors and developers underscores not only the strength of our company and the quality of our existing development and investment partnerships, but also a collective commitment to positive and tangible social and economic impact for these communities.”
Boston Financial estimates that BF CA II’s investment, creation, and rehabilitation of the properties will create approximately 180 permanent and 730 temporary jobs statewide. BF CA II’s properties are located in urban areas such as Gilroy, San Diego, Los Angeles, Oroville, Brawley, and Lindsay.
“California developers already account for a significant amount of Boston Financial’s business, and BF CA II enables us to better service this market and onboard local investors eager to join in-state funds that directly support the community. Working with top West Coast developers to build high-quality affordable housing and providing an extensive range of social services creates greater impact in this region, and we aim to make California-focused funds a part of our annual offering moving forward,” added Sarah Laubinger, Executive Vice President and Chief Production Officer at Boston Financial. “This new offering is a great testament to the increased production capabilities and expertise brought to the firm by Tom and other senior members of Boston Capital over the last 15 months.”