Boston Financial Closes $191M ITC 63 LIHTC Fund With Seven Institutional Investors

Boston Financial has closed ITC 63, a $191 million national low-income housing tax credit (LIHTC) fund, after securing commitments from seven institutional investors, the firm announced Oct. 9. The fund will deploy capital with 14 affordable housing developers across 16 communities in 12 states, supporting the creation or preservation of 1,342 affordable rental homes for individuals and families.

ITC 63 will provide capital for both new construction and preservation projects, according to the announcement. Boston Financial CEO Rob Golden said the close reflects relationships built with investors and developers over many years.

ITC 63 Fund Structure and Scope

The $191 million fund represents equity commitments from seven institutional investors. Based on the stated fund size and home count, equity averages approximately $142,325 per affordable home.

Key figures for ITC 63 include:

• Fund size: $191 million
• Institutional investors: seven
• Developers: 14
• Communities: 16 across 12 states
• Affordable rental homes: 1,342, through new construction and preservation

Several developments within the fund will include housing opportunities for seniors, veterans, people with physical or mental disabilities, and formerly unhoused individuals and families.

Projected Economic Impact

Boston Financial projects that ITC 63 will create 2,210 new jobs, generate approximately $249 million in wages and business income, and contribute nearly $90 million in tax revenue to local communities.

Choice Landing in Crestwood, Kentucky

The fund includes Choice Landing in Crestwood, Ky., developed by Pillar, a local nonprofit developer. The development, located at 1000 Choice Place in Oldham County, will provide 72 affordable homes serving special needs adults with intellectual and developmental disabilities. It is an independent-living community under development.

Executive Commentary

"ITC 63 reflects the strength of the relationships we have built with both our investor and developer partners over many years," Golden said. "We are deeply grateful for the trust our investors place in us and for the extraordinary work our developer partners do every day to bring affordable housing to communities across the country. Their commitment, creativity, and perseverance are making a meaningful difference in the lives of thousands of families, and we are honored to work alongside them in addressing our nation's housing challenges."

John Schromm, senior managing director and co-head of investor capital at Boston Financial, emphasized collaboration among stakeholders. "The affordable housing industry succeeds because of collaboration," Schromm said. "Each investment in ITC 63 represents a shared commitment among investors, developers, public agencies, and community members to expand and preserve affordable housing opportunities. We are thankful for the confidence our partners continue to place in Boston Financial and proud to help connect capital with high-quality developments that will create lasting impact in communities for years to come."

ORIX USA Support

The fund also reflects ongoing support from Boston Financial's parent company, ORIX USA, whose balance sheet provides enhanced flexibility and execution capabilities for the firm's affordable housing platform.

"The support of ORIX USA continues to be a meaningful advantage for our clients and partners," said Mark Tolliver, senior managing director and co-head of investor capital at Boston Financial. "Their commitment to affordable housing and willingness to deploy capital alongside our platform helps us deliver more flexible and creative solutions in an increasingly complex market environment. That support strengthens our ability to serve investors, support developers, and ultimately help finance more affordable housing across the country."

Market Context: A Changing LIHTC Landscape

The close comes as federal changes that began in 2026 expand LIHTC supply. Annual 9% LIHTC allocations increased by 12%, and the private-activity-bond threshold for 4% LIHTC developments fell from 50% to 25%, allowing more projects to qualify for bond-financed credits.

The expansion is occurring alongside pressure on equity pricing. LIHTC pricing has fallen by roughly 3 to 5 cents per credit in many markets, with some geographies reaching approximately 75 cents per dollar of tax credit. In some regions, particularly where bank Community Reinvestment Act demand is weaker, additional credit supply is arriving faster than investor demand.

For developers, more projects can access credits, but each dollar of credit may generate less equity. That can widen funding gaps and increase reliance on deferred developer fees, state and local subsidies, soft financing, and flexible capital providers. Demand for affordable rental housing continues to exceed supply.

Boston Financial's Track Record

Since the start of the LIHTC program in 1986, Boston Financial has worked with more than 200 investors to preserve or build over 420,000 affordable homes.

Sources

• Boston Financial: https://www.boston.financial/itc63/