CDFA Opportunity Zones Update Newsletter - December 15, 2020

Having trouble viewing this newsletter? View it online.
CDFA Opportunity Zones Update December 15, 2020	Subscribe View Archives

Features

Despite Challenges, Opportunity Zones Provide Much-Needed Capital

Following a slow rollout of rules governing opportunity zones, a program Congress approved three years ago to encourage investment in low-income neighborhoods, developers have pumped billions of dollars into the zones nationwide, even in the midst of the pandemic. Despite criticism for a lack of transparency, developers say it is "a great tool to have in the toolbox."

Developer Aims to Raise $1B for Investing in Minority Communities

A California developer is trying to raise $1 billion to invest in Black and Latino communities. If successful, it would be one of the largest commercial real-estate funds ever to focus on minority neighborhoods. Martin Muoto, chief executive of the real-estate firm SoLa Impact LLC, is trying to use a similar approach in cities across the U.S. that suffer from a shortage of affordable housing and from regulatory barriers that make it tougher to build.

Musk, Bezos Space Race Gets a Boost From Opportunity Zones

Jeff Bezos and Elon Musk had competed for nearly a decade to develop engines and rockets through their privately owned space companies when Opportunity Zones became law. Their companies' sites were included among the thousands of tracts across the U.S. designated as Qualified Opportunity Zones, part of President Trump's plan to use tax breaks to attract investments and jobs to distressed neighborhoods.

Biden's Administration Plans Long-Awaited Opportunity Zone Reforms

As the presidential transition countdown continues, opportunity zones have been the object of renewed focus, both for their potential benefits and their weaknesses. President-elect Joe Biden's campaign website includes a page, last updated on July 28, detailing how he would like to reform the opportunity zone program to prevent "billionaires [from exploiting] Opportunity Zones tax breaks to pad their wealth."

Opportunity Zones on Track to Lift One Million Americans Out of Poverty

Fifty-two million Americans live in economically distressed communities, including the thirty-five million who reside in Opportunity Zones. A report from the White House Council of Economic Advisors estimates that the poverty rate in Opportunity Zones could be reduced by 11 percent through billions in investment and new job opportunities.

Opportunity Zones: Past, Present, and Future, with Rachel Reilly

With a new President taking office next month, what does the future hold for Opportunity Zones? And what policy reforms under a Biden-Harris administration would improve the policy such that it more closely adheres to legislative intent? This podcast features Rachel Reilly, the former director of impact strategy at Economic Innovation Group.

IRS Begins Sending Letters to Taxpayers that May Need to Take Action Regarding Opportunity Funds

The Internal Revenue Service has started sending letters to taxpayers that may need to take additional actions related to Qualified Opportunity Funds (QOF). This letter lets them know that if they intended to self-certify as a QOF they may need to take additional action to meet the annual self-certification requirement.

Opportunity Zones Working Group Prepares to Provide Feedback on OZ Legislation, Oversight

The OZ Working Group provides a platform for OZ stakeholders to work together to create consensus solutions to technical OZ incentive issues and to provide recommendations to the government to make the OZ incentive more efficient in delivering benefits to low-income communities.

Upcoming Events

Fundamentals of Economic Development Finance WebCourse
January 27-28, 2021 - Daily: 12:00 - 5:00 PM Eastern

The Fundamentals WebCourse is the foundation for all of CDFA's educational offerings. This course helps attendees understand the variety of development finance tools available, from bonds, tax credits and TIF, to federal financing programs, RLFs,...

Intro Opportunity Zones Finance WebCourse
April 28-29, 2021 - 12:00 - 5:00 PM Eastern

The Intro Opportunity Zones Finance WebCourse will bring together program designers, fund managers, communities, investors, and policy experts to educate and review the most up-to-date thinking and strategies on how to maximize Opportunity Zone designations and how best to attract zone investments. This interactive webcourse will help communities bring all economic development stakeholders to the table, and have a firm understanding of how the development finance toolbox can both encourage and supplement Opportunity Fund investments.

Opportunity Zones Headlines

>>> VIEW THE OPPORTUNITY ZONES RESOURCE CENTER

Resources

Delivering Opportunity: A Diagnostic and Strategy Playbook to Maximize Indiana's Opportunity Zones
Opportunity Zones

To overcome binding constraints on the market's growth and maximize the potential of the new federal OZ incentives for Indiana communities, EIG authored this report and mapped out several strategies that should be considered to unlock more capital and strengthen local capacity.

>>> EXPLORE ONLINE RESOURCE DATABASE

The Council of Development Finance Agencies (CDFA) is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the nation's leading and most knowledgeable members of the development finance community representing public, private and non-profit entities alike. For more information, visit www.CDFA.net or email info@cdfa.net.

Council of Development Finance Agencies
100 E. Broad Street, Suite 1200
Columbus, OH 43215
(614) 705-1300
info@cdfa.net