By Gail Kalinoski | Multi-Housing News
Multifamily experts expect housing issues to play a big role in the new administration. They are also anticipating a divided Congress, which may postpone tax reform and could hurt investors with changes to 1031 exchanges and Opportunity Zones.
“Housing–and particularly affordable–has been a mainstay of the campaign platform and will be front-and-center domestic policy and that will support a major asset class with ripple effect,” said Ira Weinstein, managing principal & Opportunity Zones practice leader at CohnReznick. “We can expect a measured level of stimulus that will focus on healthy buildings and short-term economic support that will buy some time among residential and commercial tenancy.”
Biden has a robust housing plan of about $650 billion. “He wants to tackle the affordable housing situation and so do we,” said Cindy Chetti, senior vice president of government affairs at the National Multifamily Housing Council.
“The likelihood of tax reform which would affect the real estate industry – such as elimination or modification of the 1031 exchange or opportunity zone program – depends, in part, on the U.S. Senate composition in January 2021. It is also possible, regardless of the outcome of the remaining Senate races, that there is not enough political support to enact tax reform. For the opportunity zone program, stakeholders would be likely to see program modifications to increase reporting requirements and oversight, or changes to the opportunity zone maps.”