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.
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.
By investing in the OZFund, Investors can defer or eliminate taxes while at the same time helping our distressed communities flourish.
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 in a QOF for 10 years. The 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.
Proposed Project Location
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.