What Challenges Might Arise When Using OZ Investor Equity in a HOME or HTF Project?
When considering HOME and HTF investments in the OZ, grantees and their financial partners need an understanding of obstacles that may have to be confronted in order to execute a successful transaction. The OZ industry is new and the relationships between the parties may be new. By addressing challenges up-front, the parties are more likely to accomplish mutually beneficial goals.
The first challenge may be bringing all parties up to speed on the opportunities and challenges the combination of resources may offer. OZ is a relatively new resource and grantees, developers, and investors may need assistance in learning the basics involved in combining OZ investments with HOME and HTF. This guide is intended to assist with this first step in learning the basics and where to link to additional resources.
Investors will seek HOME and HTF funds for projects that need it, and vice versa. Grantees need to convey how HOME/HTF can fit into the puzzle and play an important role, while acknowledging that these funds carry restrictions. This section reviews some requirements that may require special attention and consideration when structuring HOME or HTF deals in an OZ.