OP you might research but I believe the Federal OZ program has sunsetted.  

You are converting their tax free gain in to a taxable gain.

They specialized in concrete tilt up, but did a lot of time and materials work for a self made real estate tycoon who owned a lot of Federal Way.Along the way I got my CPA license and practiced in several differing sectors including doing some work with low income housing projects.As far as my start in RE, it was with buying my first personal SFR and later moving to a new residence. 

Long term money, you could invest into a taxable account so you have access to it whenever you want.

Is the level of selling we’re seeing in line with previous administration changes, or does this have to do with federal workers losing their jobs?

If you are based in California or operating an LLC in California you will be required to file an LLC regardless of whether or not it is considered a "Disregarded entity" by the IRS for Federal tax purposes.

He owns 1031 Federal Exchange and is also a tax attorney. 

I hear there's a recent case in Federal Court where an investor was found NOT GUILTY of violating anti spam laws because his text was asking to BUY a property, which isn't sales (which is what marketing is). 

If this effort gains traction, it could fundamentally reshape the U.S. mortgage market, impacting financing options for real estate investors nationwide.The Role of Fannie Mae and Freddie Mac in Housing FinanceFannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are government-sponsored enterprises (GSEs) that purchase mortgages from banks and lenders, package them into mortgage-backed securities (MBS), and sell them to investors.

And to his credit, Federal Reserve Chair Jerome Powell seems in no rush to cut rates with inflation above target level.