S&W InfO-Zone Blog

Recent Opportunity Zone Guidance Gives Developers a Shot In the Arm

Posted by John Balboni on Nov 9, 2018 3:28:47 PM
Clarification on Working Capital, Substantial Improvement and Use of Leverage will Drive Investment Activity
Developers  intuitively understood the powerful nature of the new Opportunity Zone legislation, but their enthusiasm was hampered without further guidance. The answer to their calls for clarity came on October 19 th   when the Treasury Department issued proposed regulations, as well as Revenue Ruling 2018-29. Developers quickly recognized that the overall tenor of the newly issued guidance is "investor-friendly" and speaks to an overall theme of driving unbridled economic activity to the targeted opportunity zones. Specifically, three key points stand out to accelerate the flow of investment into Opportunity Zones, namely (i) flexible timing to deploy capital; (ii) a less-restrictive test on how measure substantial improvement; and (iii) making use of leverage to maximize development.
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Topics: Opportunity Zones, Qualified Opportunity Funds, Real Estate Finance, Real Estate Development, Affordable Housing, Real Estate Investment

About the InfO-Zone Blog

Sullivan & Worcester's InfO-Zone blog features insight and analysis about Opportunity Zones, written by our multi-disciplinary team of lawyers from our Tax, Real Estate, Affordable Housing and Corporate practice groups. 

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The material on this site is for general information only and is not legal advice. No liability is accepted for any loss or damage which may result from reliance on it. Always consult a qualified lawyer about a specific legal problem.


Meet the Editor

John G. Balboni

John G. Balboni is a partner in our Boston-based Real Estate and Corporate Practice Groups. Mr. Balboni is a member of the firm's Management Committee and co-leader of the firm's Real Estate Group, focusing on debt and equity transactions. His practice in real estate and finance law includes private/preferred equity investing, structured real estate transactions, syndicated real estate projects, real estate crowdfunding, lending matters and fund formation. His clients include hedge funds, insurance companies, family offices, developers, investment banks, local, national and international banks, REITs and other institutional investors.


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