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Opportunity Zones News Briefs – October 2018

The U.S. Conference of Mayors sent a letter to the Internal Revenue Service (IRS) and U.S Department of Treasury Sept. 5 asking for timely and effective IRS guidance for the implementation of opportunity zones (OZ) provisions. The letter specifies five reasons for guidance to be issued in a timely manner, including the need for sufficient time for meaningful investments in affordable housing. The letter is available at www.novoco.com.

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The National Housing Conference (NHC) submitted a letter Aug. 15 to David J. Kautter, acting commissioner of the Internal Revenue Service, on OZ regulations. The letter was developed with NHC’s OZ task force. NHC states in the letter that the OZ incentive has tremendous potential to attract more investment capital and development talent to revitalize low- and moderate-income census tracts, but that NHC members are concerned about what types of housing will be built with the OZ incentive. The comment letter is available at www.novoco.com.

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An Augusta, Maine, property will be one of the first buildings to be rehabilitated under the new OZ incentive. Redevelopment started in mid-August for the former Odd Fellows building. The 31,500-square-foot building will continue to have street-level retail, as well as 30 apartments. The six-story building was built in 1900. 

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Foundation Capital Partners (FCP), a private investment management firm, announced Aug. 18 the launch of its industrial-focused opportunity fund. The fund is designed to invest exclusively in industrial development with a focus on e-commerce logistics. FCP will close its first investment at the end of the fourth quarter of 2018.

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RXR Realty announced in mid-August the launch of a $500 million fund reserved for the OZ incentive. RXR Realty has several developments lined up in New Rochelle and Glen Cove that would be eligible for the tax benefit.

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The U.S. Impact Investing Alliance, a group of more than 800 investors and financial intermediaries, addressed a letter Sept. 6 to Treasury Secretary Steven Mnuchin, asking that he instruct the Internal Revenue Service or another agency to collect and then provide data on opportunity funds that participate in the OZ incentive. The letter specifies information to be reported at least annually and made available to opportunity fund managers. The letter is available at www.novoco.com.

Journal Category:

Opportunity Zones

Authors:

Novogradac

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