ADISA is part of an industry-wide real estate coalition, formed by the Real Estate Roundtable (RER). Here is good news from Ryan McCormick, Senior Vice President & Counsel, The Real Estate Roundtable, regarding Opportunity Zones:

The IRS provided welcome, additional pandemic-related relief to Opportunity Zone investors and opportunity funds today. IRS Notice 2020-39 includes five key changes and clarifications:
 

1. If the 180-day investment period to roll gain into an opportunity fund would have expired between 4/1/20 and 12/31/20, the deadline is extended to 12/31/20.
2. If an opportunity has a compliance date for the 90% investment asset test that falls between 4/1/20 and 12/31/20, failure to comply is automatically excused under the reasonable cause exception.
3. The 30-month substantial improvement period for real property owned by an opportunity fund or opportunity zone business is tolled from 4/1/20 through 12/31/20.
4. The IRS has clarified that the working capital safe harbor for opportunity fund working capital assets is extended under the President’s emergency declaration by 24 months (for a total period of 55 months) if the working capital is held by the fund before 12/31/20 and the other requirements for the safe harbor are met.
5. The 12-month period for an opportunity fund to reinvest proceeds from the return of capital or disposition of property is extended by an additional 12 months if the original period included 1/20/20, the date of FEMA’s major disaster declaration and other requirements are met. 

The Roundtable’s Opportunity Zone Working Group has strongly supported greater flexibility in the Opportunity Zone rules to ensure that capital investment continues to flow to hard-hit, low-income communities during the economic crisis brought about by COVID-19. 

In addition, The Roundtable and a broad coalition of real estate organizations continue to support more significant enhancements to Opportunity Zones that would require Congressional action.  More information regarding these recommendations is available here.