Matt Campbell, the developer at Strong America Development Group, which formed the Crawford County Opportunity Zone Fund, LLC for the Denison housing development that has broken ground between the high school and middle school in conjunction with Jim Johnson of Healthy Efficient Homes will be in Denison today (Friday, March 20) and will be available from 1-5 p.m. for in-person, one-on-one discussions or conversation regarding the housing development.
The in-person meetings are in lieu of the community meeting that had been scheduled for today but cannot take place due to COVID-19 restrictions on gatherings.
The size of the investment fund has been reduced to $400,000 (down from $1 million) so each $20,000 unit subscription will constitute a five percent interest in the development. The development will continue to have a seven percent preferred return and the targeted internal rate of return is 10-14 percent. Interim distributions are expected throughout the life of the fund from year No. 3 onward.
Campbell can be reached at 712-899-8292 or email@example.com.
Those that invest with capital gain triggered in the last 180 days (or certain other rules for Form K-1 or business property gain) are eligible through the Opportunity Zone fund structure for (i) deferral of taxation on the capital gain invested (for federal and state purposes), (ii) a 10 percent reduction in the capital gain after five years (with the deferred tax due in 2026 under current law) and (iii) a tax free exit sale of the interest in the fund interest if held for more than 10 years.
The City has provided an incentive that will pay $24,800/per unit in addition to the profit generated off each residential unit sale (through phase 1 and 2 of the development--29 units).
Iowa Finance Authority is partnering to provide construction loan assistance through Phase I whereby it will pay 65 percent of development costs through a revolver construction loan.
Campbell can answer questions on the Crawford County Opportunity Zone Fund and can be reached at (712) 899-8292 or firstname.lastname@example.org.
Additionally, Campbell is open to talking to anyone interested in buying one of the new homes pre-completion.
Each unit will be 1,432 square feet, have two bedrooms and two baths, a two-car garage and will be energy efficient.
Iowa Finance Authority also has a down payment assistance or loan program that can be used through a local approved lender for any buyer that hasn’t bought a home in the past three years.
Information on the downpayment program can be found here: https://www.iowafinance.com/homeownership/down-payment-programs/