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Opportunity Zones Connect Private Capital with Economic Development

Opportunity zones were created as part of the Tax Cuts and Jobs Act of 2017 to encourage long-term private investments in low-income urban and rural communities nationwide. The opportunity zone program is intended to stimulate economic growth in distressed areas by providing tax benefits to investors.

For its first proposed project, OZFund has acquired a large property located on South Queen Street, Lancaster, Pennsylvania, an Opportunity Zone. City of Lancaster Planning Commission Approval was granted on October 5, 2022, for our multi-use building development with 52 working-family affordable apartments and a 6,700-square-foot neighborhood convenience and grocery store. Investment opportunities are available for accredited investors.

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OZFund

OZFund, Inc. (“OZFund" or the "Fund”) is a community-focused ‘Qualified Opportunity Fund' (QOF) with plans to acquire distressed below-market properties located in the ‘Opportunity Zones’ of Central Pennsylvania and Mid-Atlantic Regions for redevelopment into rental housing for America's working families and commercial space. One project is in progress and three additional properties have been identified for acquisition by the OZFund. The OZFund may make selective investments into businesses located in Opportunity Zones.

According to the Secretary of the US Treasury: “Opportunity Zones are helping to revitalize communities and create jobs for hardworking Americans”. Click here to view the US Treasury FAQ

Tax Benefits that Mature over Time

Investing in a QOF should be of interest to investors who wish to invest their capital gains. A capital gain investment held in the OZFund for at least 10 years will not be liable for any federal tax on profits made from the investment. You do not need to have a capital gain to invest in the OZFund - this opportunity is open to all accredited investors. An example of tax savings from an investment held i the OZFund for at least 10 years, with no federal tax on profits made from the investment is shown in the table below:

Major Benefit to After-Tax Returns	Traditional Investment ($)	QOZ Investment ($)
Capital Gain	$1,000,000	$1,000,000
Less: Federal Taxes (23.8%)	-$238,000	$0.00
Available for Investment	$762,000	$1,000,000

Deferred Tax Payable at Dec. 31, 2026
Deferred Gain	$0.00	$1,000,000
Less: Permanent Exclusuion	$0.00	-$100,000
Taxable Gain	$0.00	$900,000
Federal Taxes	$0.00	-$214,200

After 10-Year Holding Period
Year 10 Value (assumes 2.62 equity multiplier)	$1,996,440	$2,620,000
Original Investment	$762,000	$1,000,000
Capital Gain	$1,234,440	$1,620,000
Less: Federal Taxes (23.8%)	-$293,797	$0.00

Net Cash Flow After 10 Years Pre-Tax	$1,234,440	$1,620,000
Net Cash Flow After 10 Years After-Tax	$940,643	$1,405,800
Tax Savings from No Capital Gains Tax at Exit		$385,560

The OZFund provides a path for investors to support local communities that has never been available until now, and seeks to encourage investors to support low-income communities by investing in OZFund.

For its first proposed project, OZFund has acquired a large property located on South Queen Street, Lancaster, Pennsylvania, an Opportunity Zone. The property will be developed into 52 reasonably-priced apartments and 6,700 sf of commercial space.

The purpose of investing in a Qualified Opportunity Fund such as the OZFund, is to transform distressed neighborhoods into thriving economic hubs.

A unique feature of the OZFund is that it may opportunistically make equity investments into some of the businesses that lease space from the Fund. This is a unique return enhancer that has the potential to deliver significantly higher returns for investors than other housing-focused funds.

“The location is in dire need of development. The neighborhood and City could use MORE affordable housing and the project is going to meet a need. I have 13 years of experience working with low-income housing and I have lived in this community since 1981 and I know for a fact that the city is in great need of more affordable housing. This project will also offer much-needed medical services, food service, daycare, and a general store. All these positive attributes helped me in my decision to invest in the OZFund.”John Suarez, OZFund Investor

I jumped at the opportunity to invest in the OZ Fund. Though ESG investing is hot and popular these days, I’ve been skeptical of it’s authenticity in most cases. But the OZ Fund is an exciting opportunity for real ESG investment, and in our own community. I’m a big believer that private capital will always do a better job than government spending, yet investment is assuredly needed in historically neglected areas to support historically neglected people.Chad Rodenberger, MD, OZFund Investor

Investing in a project like the OZFund was a no-brainer for me. Our community needs workforce housing and services for the tenants occupying the premises. In addition, the project aims to bring businesses and working families back to a location that’s been vacant for ten years. It’s a win-win for all parties involved. Great returns for the investor; more tax revenue for the city property is completed and assessed, and the best of all, more families will be available to live in a safe and beautiful place in the heart of Lancaster.Cinthia Kettering, OZFund Investor

OZFund, Inc.

Proposed Project Location

What People Are Saying

Opportunity Zone Maps

Lancaster, PA

York, PA

Hagerstown, MD

Coatesville, PA

Investor Contact Information