Tuesday, September 3, 2019
The U.S. Securities and Exchange Commission (SEC), along with the North American Securities Administrators Association, issued a statement July 16, explaining the application of state and federal securities laws to OZ funds, along with guidance for Main Street investors to participate. The guidance indicates that investors can invest in a manner compliant with securities laws, but Main Street investors, particularly those living in an OZ, face a more complex path. SEC Chairman Jay Clayton also issued a statement explaining the guidance and seeking feedback on how to increase access to private security offerings for Main Street investors while maintaining protections.
Reps. Elijah E. Cummings, D-Md., and Rashida Tlaib, D, Mich., introduced legislation July 25 to require lead remediation for certain buildings in OZs. H.R. 4011, The Opportunity Zone Lead Remediation Impact Act of 2019, would require investors in OZ residential property built before 1978 to fund lead-based paint poisoning prevention efforts and a complete remediation before being considered to have “substantially improved” the property. The substantial-improvement standard is required for eligibility for the OZ incentive.
Washington, D.C. Mayor Muriel Bowser announced the launch of an interactive website to connect local developments and businesses in the city’s OZs with QOFs. The website, OZmarketplace.dc.gov, also features OZ Community Corps, a network of Washington, D.C.-based, professional service providers who will provide pro bono consultations on OZs.
The Rockefeller Foundation and Atlanta Mayor Keisha Lance Bottoms announced July 31 that Atlanta will be the second city to participate in The Rockefeller Foundation’s OZ Community Capacity Building Initiative. The initiative aims to help cities attract private investment in OZs. Atlanta will receive $920,000 in grants and supportive services, including $400,000 to establish a chief OZ officer in the city, with further funding going to the placement of two AmeriCorps Volunteers in Service to America members to facilitate community involvement in proposed OZ projects and businesses. Newark, N.J., was the first city selected by the Rockefeller Foundation and four more cities will be chosen.
Read the full Novogradac Opportunity Zone News Brief for September 2019 HERE.