Opportunity Zones 101 for Public Housing Authorities February 4, - - PowerPoint PPT Presentation
Opportunity Zones 101 for Public Housing Authorities February 4, 2020 National Development Council Webinar Overview Goals: Introduce Opportunity Zones, including how they work, and how they can be used as a tool for community and
National Development Council
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https://opportunityzones.hud.gov/resources/map
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Communities Other capital Dealmakers/ Matchmakers Project Sponsors or Enablers Investors
Banks CDFIs Foundations Federal programs (potentially through PHAs) Accountants Attorneys Brokers Financial Advisors Entrepreneurs Landowners Companies Incubators PHAs National & regional funds Local funds Individuals Cities & Counties Economic Developers Community
PHAs
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Qualified Opportunity Fund (QOF)
Stock
Partnership Interest
Business (QOZB) Property Qualified OZ Business (QOZB) Direct Ownership Indirect Ownership 90% Asset Test 70% Asset Test
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$ $ $ $ $
OZ Project (i.e. multifamily housing) Portfolio of Projects
15 End of 7-year step-up window* End of 5-year step-up window* Tax Deferral ends Investment window ends 6/30/27
Investment window began
BEGIN 10+ year disposal window
END 10+ year disposal window
*Investors can invest until 2027, but those that invest after 2019 will not be eligible to reduce their capital gains taxes by 15%, and investors that invest after 2021 will not be eligible to reduce by 10%.
Adapted from EIG
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February 4, 2019 Erich Yost US Department of Housing and Urban Development Office of Field Policy and Management
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Provide Guidance on How to Target Investments
Coordinate with Other Federal Agencies in Administering Programs
Measure Investment Outcomes
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Building and activating your Opportunity Zone ecosystem is a joint effort across all HUD Programs lead by your Local HUD Office Field Staff
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Coordinate Federal Programs and Investments from Other Agencies Collect Data to Assess Effectiveness
Lead Local Efforts to Attract Private Investment
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Federal Agency Opportunity Zone Resources (As of 1/31/20)
programs to Opportunity Zones
consideration and other benefits if working with and in OZ or with QOF
listing.
https://opportunityzones.hud.gov/localleaders
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HUD GRANTS WITH OPPORTUNITY ZONE PREFERENCE
Choice Neighborhoods Implementation Grant Program Choice Neighborhoods Planning Grants Community Development Block Grant Program for Indian Tribes and Alaska Native Villages Comprehensive Housing Counseling Grant Program Fair Housing Initiative Program – Education and Outreach Fair Housing Initiative Program - Fair Housing Organization Initiative Fair Housing Initiative – Private Enforcement Initiative Healthy Homes Production Grant Program for Tribal Housing HOPE VI Main Street Grant Program Indian Housing Block Grant (IHBG) Program-Competitive Grants Jobs Plus Initiative Lead Hazard Reduction Grant Program Project Rental Assistance Program of Section 811 Supportive Housing for Persons with Disabilities Resident Opportunity & Self-Sufficiency Program Rural Capacity Building for Community Development and Affordable Housing Grants (RCB) Section 202 Supportive Housing for the Elderly Program Section 4 Capacity Building for Community Development and Affordable Housing Grants Section 811 Supportive Housing for Persons with Disabilities (Capital Advance) Self-Help Homeownership Opportunity Program Veterans Housing Rehabilitation and Modification Pilot Program Note: those marked in RED are currently open. See OpportunityZones.gov for open and updated listing.
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HUD PROGRAMS WITH OPPORTUNITY ZONE PREFERENCE
(Multifamily)
(Residential Care / Nursing Homes)
Others
Zones
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The US Department of Housing and Urban Development developed the "OpportunityZones.gov" website that provides information about the White House Opportunity and Revitalization Council along with information for investors, local leaders and entrepreneurs with resources and news stories about Opportunity Zones and the Council actions.
The EDA, Indiana University and its Kelley School of Business created s web-based tool that offers information
(https://www.eda.gov/opportunity-zones/) EDA created a website for Opportunity Zones. The website provides a database of their investments in Opportunity Zones along with the steps that EDA has taken to prioritize Opportunity Zones.
The Department Transportation created a website for Opportunity Zones. The website identifies transportation assets that fall within Opportunity Zones with the goal of driving investment of all types to these areas.
Department of Housing and Urban Development and Department of Commerce: Opportunity Project Winner. Citi designed website provides data-driven insights into Opportunity Zones and a directory of Qualified Opportunity Funds. 29
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with the help of Opportunity Zones funding, are now planning to build 800 units of housing, half of which will be affordable and offered first to current residents, as well as commercial space that will be available to park residents rent free if they are interested in starting a business.
housing for teachers and other social impact-related projects in cities across the U.S.
250-unit affordable apartment complex in its Clark-Fulton neighborhood utilizing Opportunity Zone capital.
capital infusion in June. The fund aims to renovate, retrofit, and preserve 3,300 low-income units
neighborhoods of South Los Angeles, raised a $100 million Opportunity Fund - its largest fund to date. Martin Muoto, founder of SoLa Impact, plans to build between 1,500 and 2,500 units in the neighborhood, and also construct commercial space for new businesses to locate and potentially take advantage of Opportunity Zones financing.
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variety of ways - there’s no one way to get involved.
between different partners’ priorities. Developers using OZ (whether PHAs or
affordability.
designation from potential buyers.
OZ has built community trust and opened doors to other opportunities and sources of capital.
developers and public or nonprofit entities to converge.
Vouchers as a way to deconcentrate Racially & Ethnically Concentrated Areas of Poverty created by public housing in other census tracts.
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OUR MISSION SINCE 1969 NDC directs capital to support the development and preservation of affordable housing, creates jobs through small business lending, advances livable communities with social infrastructure investment, and builds capacity with hands-on technical assistance to local governments.
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