It is important that housing agencies work closely with their Governors’ offices in the identification of Opportunity Zones to ensure the greatest community revitalization impact and to increase the affordable housing inventory. Governors have until March 21, 2018 to designate OZs or request a 30-day extension.
- No more than 25% of low-income census tracts may be selected as OZs.
- A census tract must have a poverty rate of 20% or greater from 2011-2015 and area median income no greater than 80% (same eligibility criteria as the NMTC program). Policy Map provides this helpful reference tool Qualified Opportunity Zone Eligibility Map.
- The OZ will retain its designation for 10 years.
Rental housing located in a designated OZ can maximize the benefits of the new program, as long as the units are:
- Newly constructed.
- Acquired after 12/31/17 and substantially improved.
While NMTCs were limited to allocation amounts, investment through the OZ vehicle will not be limited, making the program more flexible.
More guidance on Opportunity Zones is expected to be released this month.