Many CDFIs are still determining how they can play a role in Opportunity Zones or are trying to find potential Opportunity Funds that could help provide capital to projects in their communities. Please join us on August 14 at 2:30 pm to hear details about how PNC’s new Opportunity Fund will work and how they want CDFIs to participate.
PNC’s expectation is that funds will be deployed as preferred equity via either an LLC or LLP structure, margined primarily against the cash flow potential and secondarily against the stabilized value of proposed projects. The PNC structure is anticipated to include a combination of owner equity, preferred equity and debt. The combination of preferred equity and debt may reach as high as 90% of the stabilized fair market value of the project. The return on the preferred equity will range from 3 to 5% and PNC is looking for CDFIs to assist in providing debt in the projects.
Projects must be in PNC’s target market and include: mixed-use, multi-family naturally occurring affordable housing, commercial rental, and owner-occupied.
Join the call to learn more about the structure and see if your CDFI might be able to participate.