New Boston Fund Targets Workforce Housing Initiatives

Bostonm MA (6/23/06) - New Boston Fund is looking to provide workforce housing through its Urban Strategy America (USA) Fund. The fund has a more socially conscious bent than the company`s previous investment funds, focusing on double-bottom and triple-bottom line investments--or investments that aim to better the socio-economic status of the urban markets where it invests and improve the area`s environment through green development.

David Keiran, senior v.p. of investor relations, said the fund wants to meet the housing needs of individuals earning 80%-100% of the median income. The fund also has a feature that allows investors to earmark two-thirds of their equity commitments within the geographic focus area of Boston, St. Louis and Florida. "It gives you the ability to say that you`re investing locally, so that you`re giving positive social and economic benefits to your constituents," he said. The fund anticipates investing roughly equally among the three markets.

The company has kicked off construction of Olmsted Green, a $180 million urban residential community developed with Lena Park in Boston. In a similar partnership with Asian Community Development Corporation, New Boston Fund will build Big Dig Parcel 24, which will house more than 300 units. Half will be earmarked to low-income residents. Over the past 12 years, New Boston Fund has raised nearly $1 billion of equity capital, which Keiran credits to the company`s strategy. "It`s a good time to be doing what we`re doing," he said. "But it`s not for the faint of heart. It requires a lot of time, resources and energy, but we`re in it for the long haul."