A Community Focused Fund

Problem:

Finding Affordable Rental Housing is a Struggle for Low Income Families

  • There's nowhere in the US where there's enough affordable rental housing for people at the bottom end of the income scale.
  • As an example, the Lancaster Housing Opportunity Partnership reports that rental housing affordability is a major concern in the City of Lancaster, Pennsylvania.
  • Since 1960, renters’ incomes have increased by only 5% while rents have risen 61% with renters now paying more than 30% of their income on housing.
  • When adding transportation costs, that number jumps to 72% of all households being cost burdened.
  • This issue is predicted to worsen if both an increase in multi-family housing and efforts to ensure affordability are not addressed.

 

Proposed Project: Before and After

Solution:

The OZFund is a community-focused ‘Qualified Opportunity Fund’ with plans to acquire properties for redevelopment into affordable rental housing and commercial space

  • For its first proposed project, the OZFund has acquired a large property located in South Queen Street, Lancaster, Pennsylvania. The OZFund property will be developed into about +/-72 affordable apartments and +/- 14,000sf of Commerical Area.
  • The property is located in an Opportunity Zone as described by the Tax Cuts and Jobs Act (H.R. 1) of 2017 (TCJA). Opportunity Zones are intended to spur economic development and job creation in distressed communities while providing investors with an investment opportunity offering significant tax benefits.

Fund Objective: 

  • The Opportunity Zone program has the potential to become the most impactful federal incentive for equity capital investment in low-income communities ever enacted. The program is designed to tap into the country’s vast unrealized corporate and individual capital gains holdings, encouraging investors to invest their earnings in Qualified Opportunity Funds that support new and expanded business activity in low-income areas nationwide and in the US Territories.
  • The OZFund takes advantage of the tax benefits afforded by the program by acquiring real estate located in an Opportunity Zone and redeveloping the properties into affordable apartments, homes and commercial spaces. The fund may also make investments into job-creating businesses that lease space from OZFund.
  • Taxpayers invest into the OZFund and receive significant tax benefits while enjoying an appreciation on their investment in a worthwhile community real estate project.
  • No tax payable on any profits made from the investment if held in the fund for 10 years.

Tax Cuts and Jobs Act 2017: 

The Opportunity Zone program has the potential to become the most impactful federal incentive for equity capital investment program ever enacted. Designed to tap into the country’s vast unrealized corporate and individual capital gains holdings, investors invest their earnings in Opportunity Funds that support new and expanded business activity in low-income areas nationwide and in the US Territories.

Exit Strategy:

To provide OZFund and its Limited Partners/Investors with a profitable exit strategy while providing the investor with significant tax advantages. The Fund’s property development strategy is coupled with a contingency plan to liquidate the investment once certain predetermined criteria has been met or exceeded.

Strict Oversight and Project Management: 

The General Partner (“GP”) of the Fund is the JPF Venture Group, Inc. (JPF Ventures). The GP leverages a distinctive combination of industry expertise through property acquisition and development together with proven management experience. The Principals of JPF Ventures have a successful track record when investing in challenging opportunities, including real estate investments.   

Since 1990, companies founded and assisted by the Principals of the General Partner have raised millions of dollars in capital and launched more than half a dozen products and services. These products and services have been developed, marketed and sold to federal, state and local governmental agencies and to customers both large and small. JPF Ventures is well connected to federal, state and local governments in the US and beyond. A particular focus of the Group has been taking early-stage companies public or managing a listing on the US and/or a European Stock Exchange.

Benefits to Investors:

  • The fund will be secured against the properties that it purchases.
  • The fund is squarely focused on community development.
  • Investing in job-creating businesses who lease space in OZFund properties offers additional investment income for the investor.
  • OZFund is a long-term secured fund that offers significant tax benefits to the investor including no tax payable from profits if held for 10 years.

How to Invest

Investors may subscribe for Limited Partner Units in the OZFund, by requesting a copy of the Partnership Agreement and a Subscription Agreement from the OZFund.

Once completed, the Subscription Agreement should be delivered to the Lancaster Opportunity Fund at the address set forth on the cover page of the Memorandum.

The Subscription Agreement will contain information concerning the investor's status as an Accredited Investor under Regulation D under the 1933 Securities Act.

Investor Contact Information

Jeremy P Feakins
Founder and Chief Executive Officer
OZFund, LP
c/o JPF Venture Group, Inc. (General Partner)
800 South Queen Street
Lancaster, Pennsylvania 17603

Office: 717-715-0238
Website: www.jpfventures.com

Mobile: (917) 679 2005
Email: Jeremy.Feakins@jpfventures.com