The Opportunity Zone Program

What We Bring To Opportunity Zone Projects

With our relationship to CPLC, our 50 plus years of experience in asset management and real estate development has allowed us to maximize returns and add $1.8 billion of properties to our balance sheets varying from residential, commercial, and industrial assets in both urban and rural areas in the Southwest. Our Opportunity Zone initiative expands these endeavors, allowing us to partner with communities, investors, and developers with the objective of promoting healthy economic growth in targeted zones.

Each project includes access to:

  • Low-cost money to capital stack
  • Expert performa development & presentation
  • LP Equity raise capability
  • OZ Fund Administration
  • Best-in-Class Property Management Team
  • Social Impact Tracking & Reporting

Developments include:

  • 1/3 – Affordable Low Income Housing
  • 1/3 – Workforce Housing
  • 1/3 – Market Rate Projects with Support Retail

What Are Opportunity Zones?

Opportunity Zones are federal government designated communities needing investment to help facilitate hyper-local economic growth.

In June of 2018, the U.S. Treasury Department introduced Opportunity Zones as an incentive to encourage equity capital investment in specifically designated low-income communities via Qualified Opportunity Funds. This is intended to promote local business growth and introduce new quality jobs to help catalyze prosperity within the communities and revitalize the surrounding areas.

Significantly underinvested communities are located in Opportunity Zones and should see new business and job growth leading to increased wealth as a result of this new tax incentive. The infusing of millions of dollars in long-term investment fuels the local economy, benefitting all who live and work in these targeted communities.

Arizona was one of the first in the nation to have its official Opportunity Zones designated and represents an extraordinary possibility to impact the landscapes of distressed rural and urban areas within the state.

What is an Opportunity Fund?

Qualified Opportunity Funds are partnerships or corporations used as vehicles to invest in Opportunity Zone assets. They must hold a minimum of 90 percent of assets in Opportunity Zone property to quality and are purposed with making investments to promote new economic activity in the specifically targeted zones.

How The Program Works

Investors are incentivized to invest their capital gains in Opportunity Funds in exchange for deferral and partial reduction of capital gains taxes depending on the length of the investment term. Additionally, investors benefit from having the qualified investment grow tax-free after a minimum of 10 years. Funds are invested in Qualified Opportunity Zone property, such as stocks, qualified business property, or partnership interest.

Because this program impacts the communities so directly, we collaborate with community organizations, leaders, and other stakeholders who have a long term vested interest in revitalizing the area.

Business Owner in an Opportunity Zone

What does it do for the communities?

Because the Opportunity Zone investments are focused on positively impacting low-income areas by promoting physical revitalization and new job creation, the local economy should improve. This improvement should benefit local residents and businesses by increasing income and real estate values.

“The median family income of the median Opportunity Zone is only $42,400, or 40 percent below the national level. ” – Economic Innovation Group

The creation of quality sustainable jobs, business growth, and affordable housing helps revitalize distressed areas and encourage a healthy local community.

For more Opportunity Zone information please contact:

Patrick Quigley
Director of Opportunity Zones
Patrick.Quigley@cplc.org

or

Lisa Gonzales
Director of Business Development
Lisa.Gonzales@cplc.org

Investment Opportunity Benefits

Below is a calculator you can use to estimate the tax savings when investing in an opportunity fund:

Disclaimer: The information on this page is not a substitution for professional tax or legal advice. Please consult a properly accredited legal or tax professional to obtain advice particular to your situation. IRS regulations pertaining to Opportunity Zones and the tax incentives related to such investments are subject to change at any time.

The benefits of investing in an Opportunity Fund are threefold and increase the longer the Fund can hold the investment.

Capital Gains Tax Deferral

When investing capital gains into an Opportunity Fund within a six month period of realizing those gains, the federal taxes on those gains may be deferred as far out as December 2026.

Capital Gains Tax Reduction

Holding the invested gains in that Opportunity Fund for five years or more opens the option for a ten percent reduction of the tax on the invested capital. Keeping it for seven years or more will increase that percentage up to fifteen.

Capital Gains Tax Forgiveness

Investors can eliminate the federal taxes on any gains realized from the Opportunity Fund invested money if the Fund holds the investment for a minimum of ten years.

Ideally, these tax savings can be deployed into other community investments.

Are you ready to take advantage of spectacular tax benefit on capital gains while investing in the economic growth of our communities? Or do you have a project that could benefit from opportunity fund financing?

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This institution is an equal opportunity provider.
In accordance with federal law and U.S. Department of the Treasury policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. To file a complaint of discrimination, write to Department of the Treasury, Office of Civil Rights and Diversity, 1500 Pennsylvania Ave. NW, Washington, D.C. 20220 or call (202) 622-1160.