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 project, OZFund has acquired a large property located on South Queen Street, Lancaster, Pennsylvania, an Opportunity Zone. The 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. We have secured our senior construction loan, and we are supported by Commonwealth of Pennsylvania funding programs, including a $1.8 million low-interest loan from PENNVEST, a $1.0 million grant from the Redevelopment Assistance Capital Program (RACP), and an $800,000 grant from the Pennsylvania Housing Finance Agency (PHFA).
Equity investments from both OZFund Principals and our valued investors further support our project.
We remain focused on completing our Lancaster, PA project as soon as possible while at the same time reviewing other properties suitable for development that meets our criteria.
Our supporters, investors, and vendors care about building safe, attractive, affordable rental accommodations for America's working families. We look forward to advancing our business model of successfully developing nine projects over the next ten years.
Please feel free to contact us with any questions or for additional information.
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 interest investors who wish to invest their capital gains. A capital gain investment held in the OZFund for at least ten years will not be liable for any federal tax on profits made from the investment. You do not need a capital gain to invest in the OZFund - this opportunity is open to all accredited investors.
The OZFund provides a path for investors to support local communities that have just been available now and to seek to encourage investors to help low-income communities by investing in OZFund.
For its first project, OZFund has acquired a large property located on South Queen Street, Lancaster, Pennsylvania, an Opportunity Zone. The property is being developed into 52 reasonably priced apartments and 6,700 sf of commercial space.
Investing in a Qualified Opportunity Fund, such as the OZFund, transforms distressed neighborhoods into thriving economic hubs.
A unique feature of the OZFund is that it may opportunistically invest in some businesses that lease space from the Fund. This is an excellent return enhancer that has the potential to deliver significantly higher returns for investors than other housing-focused funds.