Will Opportunity Zones Benefit the Housing Crisis?

Affordable housing continues to be a prevalent crisis in communities across the United States. There are many communities that are affected. In particular, the Latin and African American communities do not have access to affordable housing. Because of the coronavirus pandemic, the country has an ongoing housing crisis. However, Opportunity Zones are an incentive that can benefit the problem. 

What are Opportunity Zones? 

Opportunity Zones were created as an incentive program to bring investors to areas and locations that do not have capital strength and would have probably only been seen as valuable investments for non-profit agencies or the government. These zones are economic development tools designed to enhance economic development and job creation in distressed communities. 

The designated zones have lower-incomes, high poverty rates, and higher unemployment rates. 

Opportunity Zones and their Benefits for the Housing Crisis

Opportunity Zones can lead to a healthy real estate market, the rise of remote work and coworking space, and create exponential technological progress. The following are three benefits of Opportunity Zones for investors: 

1. Temporary Deferral of Taxes on Previously Earned Capital Gains – Investors can place existing assets with accumulated capital gains into Opportunity Funds. They will not be taxed until the end of 2026 or when the asset is disposed of. 

2. Basis Step-Up of Previously Earned Capital Gains Invested – Investment increases by 10 percent when capital gains are placed in Opportunity Funds for at least five years. 

3. Permanent Exclusion of Taxable Income on New Gains – Investors pay no taxes on any capital gains produced through their investment in Opportunity Funds that have been held for at least ten years. 

Opportunity Zones allow the possibility of creating an affordable living for those in distressed and unprivileged communities. With Evo Haven, we can build container homes for these communities that can prove to be very beneficial for the housing crisis. 

With traditional housing prices increasing, container living is an affordable and more sustainable option. Many of the containers used in building these homes are stacked up in empty yards across the country, contributing to pollution. However, by using them to build homes, Evo Homes can create green communities. 

Conclusion 

Evo Opportunity Fund is committed to developing energy-efficient real estate in Qualified Opportunity Zones by creating sustainable housing for all. Evo promises to utilize the radical tax breaks provided by Opportunity Zones. The timing for this opportunity is now. 

Note to the client: 

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