Developers - Leveraging Qualified Opportunity Funds
Leveraging Qualified Opportunity Funds (QOFs) As Capital Source
The QOF may benefit the developers and business industries by attracting the funds for capital projects to increase their capital stack, reduce the total project cost and create highter project return.
Leverage QOFs With Local And State Programs
The QOF can be leveraged with existing local programs such as:
Chapter 312 - Tax Abatement
The City of Houston's tax abatement is an economic development tool designed to attract new industries and encourage the retention and development of existing businesses through property tax exemptions or reductions. To learn more abut the City's tax abatement program, visit: https://www.houstontx.gov/ecodev/tax_abatements.html.
Chapter 380 Program
The City of Houston's Chapter 380 Program of the Texas Local Government Code provides financial assistance in the form of performance-based property or sales tax incentives to qualified businesses for eligible projects located within the City of Houston limits. To learn mor about the City's Chapter 380 program, visit: https://www.houstontx.gov/ecodev/380agreements.html.
TIRZ (Tax Increment Reinvestment Zone)
Tax Increment Reinvestment Zone (TIRZs) are special zones by City Council for the construction of public infrastructure to stimulate the economy by attracting new investment. The zones help finance costs of redevelopment and promote growth in areas that lack the necessary public assets needed to support new development or redevelopment. To learn more about the City's TIRZ's visit: https://www.houstontx.gov/ecodev/tirz.html.
Houston Land Bank
Houston Land Bank's mission is to strategically acquire, dispose, and steward vacant, abandoned, and damaged properties into productive use to catalyze transformative community and economic development for the City of Houston. To learn more about the Houston Land Bank, visit: https://houstonlandbank.org/.
The Texas Enterprise Zone Program (EZP) is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state. To learn about TEZ's, visit: https://gov.texas.gov/business/page/texas-enterprise-zone-program.
The Texas Enterprise Fund (TEF) awards "deal-closing" grants to companies considering a new project for which one Texas site is competing with other out-of-state sites. The fund serves as a financial incentive for those companies whose projects would contribute significant capital investment and new employment opportunities to the state's economy. To learn more about TEF's visit: https://gov.texas.gov/business/page/texas-enterprise-fund.
PACE is 100% financing for energy and water efficiency improvements to commerical buildings. PACE is essentially a long-term (typically 10-20 year), low-cost loan for such improvements as HVAC modification or replacement, light fixture modifications such as LED, solar panels and other environmentally friendly solutions. To learn more about PACE, visit: https://www.texaspaceauthority.org/houston-pace/.
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