On October 24, 2018, the Real Estate Bar Association (REBA) Affordable Housing Section hosted a brownbag lunch forum to discuss the new Opportunity Zone Program. Co-Chairs Kurt James of KJP and Josiah Madar of MassHousing moderated a panel discussion on the structuring opportunities and challenges created by this new program.
The Opportunity Zone Program, created as part of the 2017 Tax Cuts and Job Acts, allows investors to reinvest proceeds from a capital transaction in to specially designated Opportunity Zones proposed by each state, which are generally low-income census tracts, as well as delay and ultimately avoid tax recognition of these gains. In addition, the U.S. Treasury can certify Opportunity Funds which will be created to pool and deploy investment capital in Opportunity Zones for eligible purposes (e.g. stock, partnership interest, and business property). This program has the potential to increase investors’ (including tax credit investors) returns on various community development projects.
The guest speakers at this event were Miriam Sheehan, a partner at Nolan Sheen Patten LLP, and Nicholas Ratti, a Principal at CohnReznick.