The Council of Development Finance Agencies has partnered with Frost Brown Todd and its affiliate FBT Project Finance Advisors on the new CDFA Intro Infrastructure Finance WebCourse and the CDFA Finance Toolbox video series. This collaboration will focus on financial challenges and opportunities facing communities working to develop or upgrade energy, water, broadband, disaster recovery, transportation, and other services, and provide expert analyses to inform the development finance industry.

The OZ marketplace finally began to hit its stride late in 2019 as increased regulatory clarity, higher levels of investment, and emerging market norms combined to encourage broader participation from a diverse group of stakeholders.  However, broader economic conditions have changed dramatically due to the COVID-19 crisis, raising new questions about the potential near- and long-term effects of the pandemic on the OZ marketplace.

As has become its practice with legislation and regulations of significance, the IRS has recently issued a set of frequently asked questions ("FAQs") on qualified opportunity zones ("QOZs"), to "provide a basic understanding and awareness" of the subject.  Following is a summary of highlights of the FAQs.

The Economic Development Administration (EDA) is awarding a $4.9M grant to the Muskogee City-County Port Authority of Fort Gibson, Oklahoma, to make critical infrastructure improvements needed to protect businesses from future floods. The EDA grant, to be located in a Tax Cuts and Jobs Act Opportunity Zone, will be matched with $1.65M in local funds.

Erie has won national recognition for its use of Opportunity Zones, which provide tax benefits for investing capital gains in designated low-income areas. More importantly, $47.7M in Opportunity Zone investments already have been committed to some of Erie's poorest census tracts. And there's reason to believe more investments are on the way.

The prestigious insider listing of who's who in the Opportunity Zone industry – the Top 25 OZ Influencers – has been released in the latest edition of Opportunity Zone Magazine. The annual tribute showcases the industry's leading and most influential OZ professionals, who inspire and lead through their vision and innovative accomplishments.

The U.S. Department of the Interior's Bureau of Indian Affairs wants to encourage tribes and Alaska Native Corporations to identify potential economic development projects or activities inside designated Opportunity Zones. The department is seeking proposals from tribes for technical assistance to hire consultants to perform feasibility studies for Opportunity Zone projects. The agency has $900K allocated for the program. 

Three systemic barriers Economic Development Organizations face are understaffed teams, limited expertise and a network that lacks connections to key stakeholders. These constraints extend to other participants in the development process as well, including project sponsors, funders and residents. The use of online platforms can go a long way toward bridging these gaps and help lead to a more inclusive and equitable process.

CDFA Food Systems Finance Webinar Series: Neighborhood Revitalization Through Food Systems Finance
Thursday, July 30, 2020 - 2:00 PM Eastern

CDFA-Bricker PACE Webinar Series: Policy and the Future of PACE
Tuesday, August 25, 2020 - 11:00 AM - 1:00 PM Eastern

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

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The July 2020 Novogradac Journal of Tax Credits looks at various ways communities can assist in securing Opportunity Zone investments in affordable housing. Suggested strategies include combining OZs with other development finance tools, leasing city land to developers at a minimum price, applying for additional federal support, and more.

Opportunity Virginia's 2019-2020 Annual Report discusses their goals and strategies to ensure that VA Opportunity Zones attract investments that will make inclusive and equitable economic growth a priority alongside the market-driven capital flows.

In light of the unprecedented economic challenges presented by the COVID-19 outbreak, taxpayers with short-term or long-term capital gain income generated in 2019, or in early 2020, can use the OZ program to invest the qualified gains in a QOF for a period of time. As some investors reevaluate their commitments to qualified opportunity zones ("QOZs") in light of the COVID-19 global pandemic, they may enjoy some level of favorable tax treatment in 2020 if they decide to liquidate their capital from the funds.

Despite being viewed primarily as an economic development tool in low-income communities—that is, positioning the local economy on a higher growth trajectory—many proponents have suggested that OZs also have a community development purpose of helping people in poverty to improve their local context and lead healthy, productive lives.

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