In response to the COVID-19 pandemic, IRS Notice 2020-39 extends several deadlines and eases certain restrictions relating to the opportunity zone program and provides welcome relief for investors and qualified opportunity funds (QOFs).  

The New Jersey EDA received more than 20K applications in the opening hours of phase 2 of its Small Business Emergency Assistance Grant Program on Tuesday morning. The second phase not only had much more funding - it also was open to a far greater number of companies. In addition, $15 million of the $45 million available will be allocated to companies based in Opportunity Zone ZIP codes.

Economic Development Leaders in both High Point and Raleigh, NC have fielded calls throughout the pandemic about their opportunity zones. Just when those leaders thought inquiries would die down, they were pleasantly surprised. Even during the pandemic, interest has remained steady. About a dozen projects are still in the works. The only one on hold is the Raleigh Convention Center project.

Economic support and investments can go a long way toward helping cities, businesses and individuals navigate any number of challenges. Across urban and rural settings, communities are in need of investment. To that end, according to Valla Vakili, managing director and head of the studio at Citi Ventures, data can make all the difference in helping funds get where they need to go to revitalize those communities.

Investment in the opportunity zones (OZ) incentive was expected to accelerate in 2020, as the incentive matured and the Department of the Treasury issued final regulations. Then the COVID-19 pandemic hit, the stock market plunged and the economy hit a bump. Several OZ stakeholders say that while a post-pandemic recession is bad news, OZ investment is suited to survive and to assist in the recovery. Even with the chaos, 2020 could be a good year for OZ investment.

The IRS released Opportunity Zones Guidance that extends the 180-day window to invest capital gains in qualified opportunity funds, suspends the 30-month substantial improvement period, and more.

The city of San Jose is fostering a positive collaborative environment with private local developers, which in turn, has built a rare window of opportunity to fund, at a larger scale, the types of projects that can have an outsized impact on the local community. Read more about how to leverage Opportunity Zone (OZ) programs to curate an underserved urban ecosystem like downtown San Jose and achieve the true intent of the program.

Reps. John Curtis, R-Utah, and Henry Cuellar, D-Texas, introduced the Small Business Opportunity Zone Act in April, which would allow small businesses affected by the COVID-19 pandemic to be classified qualifying businesses in which investors can receive favorable opportunity zone tax benefits, regardless of location.

In the first month after the coronavirus ground the U.S. economy to a halt, the opportunity zone marketplace had slowed along with the rest of the commercial real estate industry. But over the past month, opportunity zone investors have been some of the most active players in the real estate market, closing deals and starting new projects as most traditional sources of capital stay on the sidelines.

CDFA-ARI Rural Finance Webinar Series: Access to Capital and Community Facilities
Wednesday, July 8, 2020 - 1:00 PM - 2:30 PM Central

CDFA-Bricker PACE Webinar Series: Focusing on Sustainability Using PACE
Tuesday, July 14, 2020 - 11:00 AM - 1:00 PM Eastern

CDFA // BNY Mellon Development Finance Webcast Series: Financing Small Business Recovery After COVID-19
Tuesday, July 21, 2020 - 1:00 PM Eastern

>>> VIEW THE OPPORTUNITY ZONES RESOURCE CENTER   

The Opportunity Zones tax incentive, created by the Tax Cuts and Jobs Act of 2017, was designed to spur investment in low-income and undercapitalized communities. The experiences of investors, developers, government officials, and business representatives show how the incentive is playing out nationally and locally in Cuyahoga County, Ohio.

Parramore Oaks will bring 120 new energy-efficient homes and a boost of economic activity to a downtown Orlando, FL community. It is a new energy-efficient apartment building for families, bringing mixed-income with 96 affordable homes and 24 market-rate homes using Opportunity Zone equity and housing tax credits.

Cleveland-based Sustainable Community Associates (SCA) have broken ground on their fourth development in the city—The Tappan—which will bring 95 new apartments and a bakery to the Tremont neighborhood.

Ox Fibre Apartments will bring 83 new affordable apartments to Frederick, MD—a growing community located within one hour of both Washington, D.C. and Baltimore. Layering Opportunity Zones equity with state LIHTC, federal Historic Tax Credits (HTC), and additional sources of debt will allow the developer to bring a 19th century warehouse back to life while providing much-needed one-, two-, and three-bedroom homes at price points affordable to current residents.

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