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Opportunity Zones News Briefs – November 2018

The National Association of Home Builders and eight other national organizations Sept. 10 asked acting Internal Revenue Service Commissioner David Kautter to issue guidance on issues facing potential investors in the federal opportunity zones (OZ) incentive. Their letter specifically seeks a definition of qualified investments, a clarification of the oversight process for investment funds and clarification of several terms in the statute. This is the latest of several requests for guidance. The letter is available at www.novoco.com.

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Manny Friedman’s $6.9 billion hedge fund firm, EJF Capital, announced in mid-September that it is seeking to raise $500 million for low-income areas. Specifically, EJF Capital plans to raise $500 million for OZs.

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The Kresge Foundation and The Rockefeller Foundation announced in mid-September that they received 141 responses from fund managers from across the nation who are creating OZ funds. The foundations hoped to find projects that align with their missions to ensure positive outcomes for America’s low-income communities. Of the 141 responses, 20 applicants represented national funds, 11 were targeting regional investments and 113 were looking to work at a state or local levels.

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New York based developer Youngwoo & Associates (YWA) and EQUITYMULTIPLE, a commercial real estate investment startup, announced Sept. 11 a partnership to create an OZ fund. Through its Opportunity Fund, YWA and EQUITYMULTIPLE intend to offer investors the chance to participate in developments in select markets throughout the country. 

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Steve Glickman, a former Obama administration senior economic advisor and an architect of the OZ measure, announced mid-September that his firm, Develop LLC, will advise fund managers on new tax breaks. Glickman’s consulting firm will provide advice to investors, helping with communicating the benefits of the tax breaks and government relations.

Journal Category:

Opportunity Zones

Authors:

Novogradac

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