Initial Evaluation of Opportunity Zones for Fair Development Projects
This document offers an initial evaluation of how the Opportunity Zones initiative is being employed for projects focused on fair development. It scrutinizes the degree to which OZ funding is fostering assets owned by communities, generating high-quality employment for residents in the area, and reducing the potential for displacement within neighborhoods undergoing gentrification.
Principal Topics and Suggestions
This document points out several main topics and presents suggestions for aligning the OZ incentive with the objectives of fair development.
| Theme | Recommendation |
|---|---|
| Local Possession | Promote and provide incentives for organizational structures that foster community ownership of property and enterprises, including community land trusts, cooperatives, and corporations owned by residents. |
| Generation of High-Quality Employment | Give preference to investments in businesses that offer local residents adequate wages, benefits, and chances for professional growth. Connect OZ tax advantages to meeting particular standards for job quality. |
| Alleviating Displacement | Combine OZ investments with robust policies aimed at preventing displacement, including inclusionary zoning, rent control, and property tax assistance for residents who have lived in the area for a long time. |
| Openness and Responsibility | Require public disclosure of specific project data, such as details on job creation, housing accessibility, and community involvement, to ensure investors are held responsible for their asserted impacts. |
The Contribution of Purpose-Driven Investors
The document emphasizes the vital contribution of investors guided by a specific mission, such as Community Development Financial Institutions (CDFIs), foundations, and family offices focused on impact, in leading the way for fair development approaches within Opportunity Zones.
These investors are proving that attaining both monetary profits and significant societal benefits is feasible.