NMHC/NAA on July 26 met with Treasury Department officials to provide the multifamily industry’s recommendations for implementing Opportunity Zones. As previously reported, this program was enacted as part of last December’s Tax Cuts and Jobs Act and provides a strong incentive to drive considerable investment in multifamily housing. Specifically, it allows for the deferral of capital gains invested in Opportunity Funds and eliminates tax on certain gains realized from Opportunity Fund investments.
During the meeting, NMHC/NAA asked that forthcoming Treasury regulations ensure:
- Multifamily housing is a qualified investment for Opportunity Funds;
- Multifamily properties receiving other tax benefits, including Low-Income Housing Tax Credits, Historic Tax Credits and New Markets Tax Credits, are qualified investments for Opportunity Funds;
- Properties of all sizes be able to receive Opportunity Fund financing;
- Opportunity Funds have sufficient time to deploy capital;
- LLCs and REITs can set up Opportunity Funds;
- Land be a qualified investment if sufficiently improved; and
- Infrastructure improvements, including sewers and broadband, be considered a qualified investment.
The meeting follows a June 8 industry letter that made these recommendations.
- House Democrats Pass $3 Trillion Package on a Party Line Vote
- HEROES Act Detailed Analysis
- SBA Issues Clarification on PPP Certification and Apartment Industry Files Comments
- NMHC Calls on Congress to Include Opportunity Zone Provisions in Future Stimulus Legislation
- Coalition Letter to the House Urging Inclusion of Opportunity Zones in Stimulus Legislation – May 2020