Opportunity Zones News Briefs - October 2021
Rep. Michelle Steel, R-California, introduced legislation to extend the opportunity zones (OZ) incentive by creating subsequent rounds of OZ designation, starting Jan. 1, 2027, with further designations every 10 years. The Growth and Opportunity Act (H.R. 4608) would therefore extend the date by which investors in qualified opportunity funds can exclude 10% of gains after holding the investment for five years from Dec. 31, 2026. Another bill introduced in the House would extend the tax deferral date until Dec. 31, 2029.
Silicon Valley Bank announced Aug. 26 a partnership with the National Equity Fund, a nonprofit tax credit syndicator, to commit a $110 million OZ fund to low-income housing tax credit transactions before the end of the year. The fund would target Santa Rosa and San Jose in the Bay Area and Coachella and Los Angeles in Southern California.
Maryland Gov. Larry Hogan announced Aug. 27 that seven businesses would receive a combined $500,000 to expand into OZs. The funds were geared toward growing and expanding manufacturing and retail businesses, including ones that faced financial burdens due to the COVID-19 pandemic. The announcement came eight months after a similar allocation of $500,000 in grants to 13 small businesses in Maryland in OZs.
Parkview Financial delivered a $25.5 million construction loan to Orchestra Partners Development in August to convert the of Frank Nelson Building in Birmingham, Alabama, into a mixed-use property. The 10-story, 79,000-square-foot historic office building is set to become 180 apartments as well as retail space using state and federal historic tax credits as well as funds from OZ investors. Construction is scheduled for completion in 2022.