The U.S. Department of Transportation (USDOT) regularly reports to the White House Opportunity and Revitalization Council's Chair and Vice-Chair on implementation actions and progress made within the Economic Development work stream. Through this subcommittee, USDOT will leverage federal grants and loans in a more integrated way to develop dilapidated properties and provide basic infrastructure and financial tools to attract private investment. 

Amid all the bad news, there may be one bright spot this summer (and beyond) for investors: Opportunity Zones. New deadlines, growing momentum, and various market factors will converge to make such investments — and the positive social impact they bring — more attractive than ever.

In Opportunity Virginia's July newsletter, Director of Investments Jay Beekman sits down with Rich Larochelle, Chairman of the Board of Directors of the Fredericksburg Food Cooperative ("FXBG Co-op"). The FXBG Co-op recently finished a $4.3M capital raise that will allow it to launch a full-service, member-owned grocery store with a mission to provide Fredericksburg, VA, and the surrounding area with access to locally-grown and locally-sourced products.

The sale of assets in order to survive the impact of COVID-19 will likely present unique opportunities in the real estate market—especially those in and surrounding QOZs. With many businesses forced to shut down and real estate markets on the edge of a pullback, properties available for redevelopment within QOZs may start to become more accessible.  Read about some such QOZs here.

Systemic racial injustice has been brought to the forefront across communities and industries, and it requires our attention. There is a powerful yet relatively simple solution: Allow minority depository institutions (MDIs) and community development financial institutions (CDFIs) to qualify for Opportunity Zone–type investments.

Banks can now invest in opportunity zones (OZs), according to a new ruling from federal regulators that invites new money into the qualified opportunity funds (QOFs) created to funnel money into projects in those census-designated and Treasury-approved areas.

With bipartisan support in place since its inception, the federal Opportunity Zone program frequently touted by the Trump administration appears likely to last another presidential term, although perhaps in a modified form. On the legislative front, a bill by U.S. Sen. Tim Scott, a Republican from South Carolina, and one of the opportunity zone bill's original sponsors, would put reporting requirements in place and has a good chance of becoming law, experts say.

Do Opportunity Zones have the potential to create a more optimistic and hopeful outlook, and to help build national recovery and resiliency in the wake of the COVID-19 pandemic and economic crisis? On August 5, OpportunityDb co-hosted a live national webinar briefing with Egils Milbergs at OZ Accelerator. The webinar featured opening remarks from Senator Tim Scott (R-SC) and a panel with guests from Urban Institute, Sen. Scott's office, Sorenson Impact Foundation, Emsi, EIG, and SBA.

Arctaris Impact Investors is inviting you to participate in our $25M Place-Based Opportunity Zone Fund Investment Initiative. This initiative intends to improve the quality of life for all Americans by providing Opportunity Zone investment capital for community development programs that would otherwise go unfunded. Arctaris will award each recipient $25 million or more of Opportunity Zone capital in combination with localized match dollars from government, philanthropic, or private sector partners.

CDFA // BNY Mellon Development Finance Webcast Series: Investing in Childcare Facilities
Thursday, August 27, 2020 - 1:00 PM Eastern

Intro Infrastructure Finance WebCourse
September 23-24, 2020 - Daily: 12:00 - 5:00 PM Eastern

>>> VIEW THE OPPORTUNITY ZONES RESOURCE CENTER   

Section 1400Z,2 of the Tax Cuts and Jobs Act of 2017 created a new place-based tax incentive intended to spur economic development and job creation in distressed communities designated as "Opportunity Zones." Although Opportunity Zones (OZs) are the latest place-based tax incentive, they also represent a sweeping expansion of the approach— both in terms of the potential tax benefits being provided and the huge scale of the geography now covered for reduced income taxes for investors.

In a post-COVID world, it will be imperative to invest in our underserved communities' capacity to serve themselves, and in their resilience. Opportunity Zones are one tool to drive this effort. The Milken Institute has developed this state and local official training guide to help community leaders engage more effectively with the private sector and philanthropic partners to create new, lasting models for building local prosperity and community wealth.

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