The new federal program known as Opportunity Fund Investing provides an important emerging resource for economic development in underserved communities.
These federally-designated urban and rural Opportunity Zones create the latest tools for economic development strategists. The program works in a similar spirit as Federal New Markets Tax Credits (NMTCs), as it incentivizes investments in neighborhoods with highest capacity for inclusive job creation. Specifically, it provides investors a mechanism to defer gains by encouraging their patient capital into a Qualified Opportunity Fund. The investor must hold the investment for at least ten years, after which time they can reduce gains to zero.
The concept, first announced in December 2017, was officially appointed in April of this year. Ohio is among the initial 18 states with these specially-designated districts. In Uptown, all of Avondale has been designated an Opportunity Zone.
Managed properly, these investments will infuse additional higher-paying jobs into the designated areas, including in the Uptown Innovation Corridor (@UptownInnoCorr). Since the concept was announced, our Uptown Consortium team has been part of key conversations across the country, and has been on the forefront of planning with this new tool. Avondale’s enviable position as an Opportunity Zone within the Uptown neighborhoods means we can assist current and prospective investors as they navigate this innovative program.
Both experienced and new investors will likely leverage these tax benefits, as the promise of social benefits and community inclusion mean smart business. Investors interested in learning more can contact me here at the Consortium.
As always, on behalf of all who benefit from the impact of Uptown, thank you for being a partner who helps us achieve the future together.
President & CEO
Uptown Consortium, Inc.