Tax Credit Advisor Article Archives

When the Opportunity Zones program was added to the bipartisan Tax Cuts and Jobs Act of 2017, it was presented as a triple bottom line win: helping underserved communities achieve economic growth and build wealth for residents and businesses; bringing a new source of investment dollars into those communities; and offering the new investors an attractive way to defer and even offset capital gains taxes.

Tax Credit Advisor sat down with Bernstein to get his thoughts on the role Opportunity Zones can play to help address the crisis, as well as other policy initiatives that Congress might focus on in 2020 to help generate more affordable housing.

Ever since the Opportunity Zone program was announced two years ago, developers, investors and community development organizations have been trying to determine which other tax benefit programs, if any, fit comfortably within the same requirements and parameters.

The idea behind Opportunity Zones has been to encourage development in poor areas. Inspired by the Enterprise Zone concept championed in the 1980s by congressman Jack Kemp, the Trump Administration law is, according to the IRS website, “Designed to spur economic development and job creation in distressed communities…by providing tax benefits to investors who invest eligible capital into these communities.”

Two years into the era of Opportunity Zones, its impact on our industry has been minimal: whatever benefit the OZone may provide other types of real estate, it’s not boosting Low Income Housing Tax Credit (LIHTC) production.

When asked about the December 19, 2019 final Opportunity Zone regulations, Jerome Breed, principal with Miles and Stockbridge P.C., said, “The IRS and Treasury did an excellent job with the final regulations. Of course, if I drafted the rules, I’d be happy with all of them.” John Gahan, partner with Sullivan and Worcester LLP, echoed the sentiment, “We as lawyers would never be completely happy with any set of rules.

The enactment of the 2017 Tax Cuts and Jobs Act and the creation of the Qualified Opportunity Zone Incentive (QOZI) has generated a great deal of activity by investors deploying capital in disinvested neighborhoods.

Most tax credit deals are complicated. Between the allocation, syndication and gap financing, Low Income Housing Tax Credit developments are never easy to finance and build.

It’s spring training time, when everyone is optimistic and hopes they can win the World Series.

Am I missing something or is the current campaign-driven conversation about healthcare totally focused on costs? Limiting the healthcare debate to dollars and cents makes no sense.

We hear a lot of conversation these days about the social determinants of health: healthcare itself; education, personal and family stability, neighborhood and environmental safety and prosperity; and social and community context and commitment.

Only a few months after Red Stone Equity Partners was founded in 2007, America suffered its worst economic recession in 80 years. While many companies in the affordable housing business closed, RSEP persevered, and over the next decade, became a leading national equity syndication platform.