NMHC/NAA on June 8 sent the Treasury Department recommendations on how to best implement Opportunity Zones. The program provides a strong incentive to drive considerable investment in multifamily housing by providing for the deferral of capital gains invested in Opportunity Funds and eliminating tax on certain gains realized from Opportunity Fund investments.
The industry’s letter asked that the Treasury Department 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
- Infrastructure improvements, including sewers and broadband, be considered a qualified investment.
- Real Estate Industry Urges Congress to Correct Depreciation Oversight in Tax Cuts and Jobs Act Legislation
- Real Estate Coalition ADS Tax Reform Letter to House Ways and Means Committee
- Senate Finance Committee Task Forces Focus on Expired Tax Provisions
- NMHC and NAA Comment on Ways to Maximize the Positive Impact of Opportunity Zones
- NMHC and NAA HUD Opportunity Zones Comment Letter - June 2019