CCDFI Opportunity Fund

About the Clearinghouse CDFI Opportunity Fund

The Clearinghouse CDFI Opportunity Fund targets economically viable real estate investments in qualified opportunity zones that have a positive outcome and influence on the community. The purpose of the fund is to deploy capital into communities with demonstrated need. View our service area.

For investments, projects, and other related questions, contact:

Chris McMartin
Phone: 949-525-4976
Email: chrism@ccdfi.com

 

Over 20 Years of Experience Working with Investors & Community Development Finance

Clearinghouse CDFI has a long history of producing measurable returns for its investors, while achieving significant, positive community impacts.

  • Assets under management > $660 million
  • $1.55 billion in total loans funded for over 1,820 community projects
  • 18,000 Jobs Created / Retained Since Inception
  • First CDFI to obtain a strong S&P rating
  • First to close $100MM in bonds from the U.S Treasury’s Bond Guarantee Program
  • Among the first financial institutions use New Markets Tax Credits
  • Clearinghouse CDFI also directly invests in, owns, and manages real estate projects in low-income neighborhoods.

Opportunity Zones Basics

  • The Opportunity Zone Program was established by Congress to incentivize investors to provide equity funds to projects in underserved communities throughout the U.S.
  • Investors benefit through a deferral and partial reduction of capital gains taxes if those gains are invested into a Qualified Opportunity Fund.
  • The Fund can be organized in various ways to raise capital from investors.
  • Funds can invest in new real estate developments & in new/expanding businesses.

 

Opportunity Zones – Parties Involved

  • Investors –Investors place capital into Qualified Opportunity Funds in order to receive tax benefits on gains. Investors may also receive annual dividends and upsides on project exits or recapitalizations.
    • Long-term investment horizon – to fully benefit from the Opportunity Zone Program, investors will hold their investments in projects for at least ten years.
  • Opportunity Fund – Funds must be Certified by the U.S. Department of Treasury and will take equity positions in projects with funds received from Investors. The Fund will be responsible for managing assets, compliance and impact reporting.
    • The Fund acts as a bridge between Investors and Qualified Projects, increasing Investor confidence in placing funds in community development projects that meet Opportunity Zone Regulations.
  • Project Sponsor – The owner and/or developer of Qualified Opportunity Zone Projects. The Sponsor benefits by receiving long-term equity dollars that may not typically have been invested in underserved communities.

 

Benefits to Parties

  • Investors:
    • Tax deferral on Capital Gains along plus potential for partial forgiveness – which increases over the length of the investment in the Fund/Project. Additionally, investors pay no capital gains tax on any gains generated by the Qualified Opportunity Zone project if that investment is held for ten years.
  • Opportunity Fund:
    • Expand and increase impact and investment in underserved communities.
    • Can use its expertise to provide debt and other financing instruments (NMTC, LIHTC) to community development projects.
  • Project Sponsor:
    • Receives long-term capital for much needed community development. Opportunity Zone equity funds are another available layer in the Capital Stack needed for these kinds of developments.
    • Debt can be easier to obtain due to the increased equity available.

Example Projects:

Before

After

MSA Annex - Before - Opp Fund pg MSA Annex - After - Opp Fund pg
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$2.7MM Loan – Tucson, AZ


Before

After

El Vado - before El Vado - After
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$3.2MM Loan – Albuquerque, NM


For investments, projects, and other related questions, contact:

Chris McMartin
Phone: 949-525-4976
Email: chrism@ccdfi.com