A new article from Glen Graff, Attorney at Applegate & Thorne-Thomsen, published in Novogradac and Company’s Journal of Tax Credits April 2019 issue covers the issues and opportunities when combining Opportunity Zones and LIHTC. Graff lists the top nine issues and opportunities as:

  1. Pick the right LIHTC developments–new construction or very substantial rehabilitations with significant debt.
  2. Treatment of significant related party fees is unclear.
  3. Investors may benefit even without expected future appreciation.
  4. Investors need capital gains or exit taxes to get any OZ benefits.
  5. Single asset funds are currently preferred.
  6. Developers can also benefit from OZ investments
  7. Invest in transactions with debt to take advantage of tax losses.
  8. Capital contribution timing issues.
  9. Monitor the QOF 90 percent test.