Community Development Corporation of Oregon Selects NES Financial to Administer Its Opportunity Zone Fund

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Purpose-Built Opportunity Zone Fund Administration Solution Will Maximize CDCO’s Fund Security, Investor Transparency, and Regulatory Compliance

NES Financial
As a new investment fund just launching into the dynamic OZ space, OCCI needed to display expertise, control and transparency to investors.

Earlier this year, NES Financial introduced a purpose-built Opportunity Zone Fund Administration Solution to its lineup of award-winning financial administration services. The Solution is specially designed for the new Opportunity Zone Fund tax program and will provide the tracking and record-keeping needed for investors to maximize their capital gain tax deferral, tax reduction, and elimination of taxes on appreciation of their investment in a fund.

The response across the industry has been overwhelmingly positive, and today the innovative fund administrator announced that it has contracted with the non-profit Community Development Corporation of Oregon (CDCO) to provide its purpose-built fund administration solution to their OZ Fund subsidiary, Oregon Community Capital, Inc. (OCCI).

The tax incentives associated with the Opportunity Zone (OZ) program were created to encourage long-term investment into targeted economically distressed areas across the country. Opportunity Zone investments offer investors temporary tax deferral, partial reduction of taxes on an investor’s realized capital gains, and total elimination of taxes on all capital gains due to the appreciation of the OZ investment. As a result, the OZ program opens up enormous potential both for developers looking to raise capital at attractive rates, and for non-profit organizations like CDCO that seek to bolster small business and improve local economies.

Community Development Corporation of Oregon was working to improve the area around Gresham, Oregon, long before the Opportunity Zone program was introduced, and they are now in their sixth year of building community within this OZ. In July, they created Oregon Community Capital, Inc., as a wholly owned subsidiary that will raise and invest Opportunity Zone dollars. They are offering two pools of money for Opportunity Zone Investment: (1) a micro-cap limited partnership fund for investment in small businesses and (2) a real estate limited partnership, which will focus on expanding affordable housing options within the area.

"As a new investment fund just launching into the dynamic OZ space, OCCI needed to display expertise, control and transparency to investors,” said Brad Ketch, President of Community Development Corporation of Oregon. “We reduced the uncertainty — and drove up investor confidence — simply by signing on to NES Financial’s platform. Also, we could see that we could scale from the first investment to many, with no effort on our part. NES Financial is thus a key part of our value proposition."

The purpose of the NES Financial Opportunity Zone Fund Administration Solution is to efficiently and securely handle administration of growing funds, at scale, so that Opportunity Zone Fund managers can focus on raising capital and deploying it to underserved communities across the country. This includes handling the specialized reporting requirements of the program with the highest possible degrees of fund security, investor transparency, and regulatory compliance.

“CDCO is doing meaningful work in an area that needs it — exactly what the OZ program was designed to encourage,” said Reid Thomas, Executive Vice President at NES Financial. “By using our purpose-built OZ Fund Administration Solution, they’ll streamline their administrative overhead, increase marketability and investor confidence and, ultimately, serve the community of Gresham more effectively.”

For additional information about the Opportunity Zone Fund Administration Solution, please visit the NES Financial website or contact an NES Financial representative at 1-800-339-1031.

About NES Financial
NES Financial is a Silicon Valley financial technology (FinTech) company providing technology-enabled solutions and services for the efficient back- and middle-office administration of complex financial transactions. Serving private equity, commercial real estate, and Fortune 1000 clientele, NES Financial offers industry-leading private equity fund administration, loan servicing, specialized EB-5 and Opportunity Zone Fund Administration, and 1031 tax-deferred exchange services. Their unwavering commitment to data security, operational redundancy, and compliance reporting is evidenced by 12 consecutive years of successful independent audits of their technology, processes, and financial controls. Today, NES Financial services over 190 funds, administers over $20B annually, and has worked with more than 675 EB-5 projects. For more information, visit nesfinancial.com.

About Community Development Corporation of Oregon
Community Development Corporation of Oregon works to improve Oregon communities. It has established two Qualified Opportunity Zone Investment Funds and is now putting capital to work. For more information, visit rockwoodcdc.org.

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