CDFA Opportunity Zones Update Newsletter - September 14, 2020

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Features

Opportunity Zones Get Big Push as Critics Question Who They Help

Contentious economic development incentives lawmakers and the White House are pitching as an answer to the nation's economic and social ills are structurally unable to help fix those problems—and may even exacerbate them—critics say.

EPA Meets With Federal Agencies in New Castle, PA to Discuss Redevelopment

The US Environmental Protection Agency joined federal partners to meet with New Castle and Lawrence County Economic Development leadership and community leaders to discuss how EPA can assist the city in the redevelopment of former Brownfields and sites in Opportunity Zones that had become tarnished from past industrial activity.

Novogradac Opportunity Fund List Shows Nearly $2B in Additional Investment

Equity raised by qualified opportunity funds (QOFs) listed on the Novogradac Opportunity Funds List surpassed $12 billion, data that comes on the heels of an estimate made last week by the White House Council of Economic Advisers (CEA) that $75 billion was invested in QOFs by the end of 2019.

Opportunity Zones Continue to Make an Impact

Although the nation is bracing for a new slowdown in the last quarter of the year, Notice 2020-39—issued by the Internal Revenue Service in June—is expected to boost investors' confidence in placing capital. Edmon Rakipi, principal at Opp Zone Capital—an entity that provides specialized Opportunity Zone investment and fund management services nationwide—expects the OZ program to contribute to the revitalization of some of the hardest-hit real estate sectors.

White House Directs Federal Agencies to Prioritize Opportunity Zones

An executive order signed by President Donald Trump on Aug. 24 directs federal agencies to move their offices to Opportunity Zones to spur investment in some of the nation's poorest neighborhoods, a report said. The move will apply to all federal agencies and asks that they stop prioritizing city centers and central business districts and instead base themselves in any of the 8,769 low-income communities designated as Opportunity Zones.

First-Of-Its-Kind Agricultural Center a Boon to Hampton County, SC Consumers

Billed as the nation's largest investment in a federal Opportunity Zone, a high-tech agricultural project announced Wednesday aims to ensure a safer and more reliable food source for South Carolina consumers while bringing hundreds of jobs to the area. The $314 million Agriculture Technology Campus will grow produce in environmentally controlled greenhouses on a 1,000-acre site in Hampton County.

After a Pause, Opportunity Zones Projects Are Back on Track

Opportunity zone projects are now in full swing. The opportunity zone model has been available for nearly two years, but investors were awaiting the final regulations and guidance from the IRS. Then, the pandemic hit. Now that there is more understanding around both, opportunity zone projects are taking off.

White House Releases Initial Assessment of Opportunity Zones Report

This report from the White House' Council of Economic Advisers compares the advantages of OZs with those of other Federal antipoverty programs and documents the characteristics of the nearly 8,800 low-income communities designated as OZs. It also quantifies the effect of OZs investment and finds that a large increase is already benefiting OZ residents while potentially having only a small effect on the Federal budget.

Upcoming Events

CDFA-Bricker PACE Webinar Series: PACE Program Capitalization
Tuesday, September 22, 2020 - 11:00 AM - 1:00 PM Eastern

PACE program financing can be provided through private third parties, public bonds, or a combination of both, and within those options, there are many creative approaches being implemented across the nation. In 2017, The Kresge Foundation made a $3 million program-related investment into the St. Paul Port Authority's "Trillion BTU" and "MinnPACE" loan programs. This was a first of its kind PRI to help the community on-board PACE. This webinar will explore this and other creative methods that communities can utilize to capitalize their PACE program.

CDFA Food Systems Finance Webinar Series: Financing Food Systems Entrepreneurs
Tuesday, September 29, 2020 - 2:00 PM Eastern

During this installment of the CDFA Food Systems Finance Webinar Series, development finance professionals from around the country will describe their strategies for supporting local entrepreneurs in moving their business from idea to execution.

Opportunity Zones Headlines

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Resources

The Impact of Opportunity Zones: An Initial Assessment
Access to Capital | Community Development | Economic Development | Federal | Opportunity Zones

>>> 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