Opportunity Zone is a designation created by the Tax Cuts and Jobs Act of 2017 allowing for certain investments to have tax advantages.
For most transactions, in order to qualify, the Opportunity Fund needs to invest more than 90% of its assets in Qualified Opportunity Zone Property that is located in an Opportunity Zone. The property must be significantly improved, which means it must be an original use or the basis of the property must be doubled of the basis of the non-land assets. Capital gain taxes are deferred for investments reinvested into investments in these zones and, if the investment is held for ten years, all capital gains on the new investment are waived.
HUD 221(d)4 non-recourse, long term, low rate terms, go well, with many of opportunity zone's requirements.
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