Opportunity Zone Magazine Volume 1, Issue 3 | Page 58
58 OPPORTUNITY ZONE MAGAZINE | VOLUME 1 • ISSUE 3
OPPORTUNITY ZONES AND ECONOMIC IMPACT: A PRACTICAL FUND APPROACH
Sources:
1
Rent and rent growth data from US Census American Community Survey, 2010 – 2018,
https://data.census.gov/cedsci
2
https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions, accessed
10/18/2019
This section is heavily influenced by the distinctions between economic growth and
economic development in the paper, Feldman, M., Hadjimichael, T., Lanahan, L., & Kemeny,
T. (2016). The logic of economic development: a definition and model for investment.
Environment and Planning C: Government and Policy, 34(1), 5-21.
3 Some management specialists state that the difference between goals and objectives is
Natalie Elder has over 10 years of experience as a direct
marketing professional specializing in content creation and
management, client relations, fundraising campaigns and
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Elder worked with industry-leading clients, including AARP
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in investment partnership with a focus on startup opportunities,
state-issued grant application and acquisition, and budgeting.
that a goal is a description of a destination, and an objective is a measure of the progress
that is needed to get to the destination.
4 We do not discuss the policy debate of whether all OZ communities have the same level of
economic stress in this paper.
5 https://www.epi.org/publication/updated-employment-multipliers-for-the-u-s-economy/ for
example.
6 Ibid, Feldman et.al.
7 This list is influenced by the Urban Institute
8 https://www.nhlp.org/resource-center/low-income-housing-tax-credits
9 https://www.nhlp.org/resource-center/low-income-housing-tax-credits
10 https://www.cdfifund.gov/programs-training/Programs/new-markets-tax-credit/Pages/
default.aspx
11 https://www.novoco.com/resource-centers/historic-tax-credits/htc-basics/about-historictax-credit
12 https://www.hud.gov/program_offices/comm_planning/communitydevelopment/
programs
13 https://www.hud.gov/program_offices/comm_planning/affordablehousing/programs/
home/
14 https://www.sec.gov/news/public-statement/clayton-statement-opportunity-zones and
Stephanie M. Smith is the principal and founder of SMS
Global Advisors Law Group. She has over 20 years' experience
as counsel to lenders, developers and businesses to finance
multifamily housing and mixed-use development projects
with grants, tax credits, loans and equity. Through SMS Global
Advisors, Smith advises real estate developers, lenders and
investors on the efficient coordination for multilayered financing
of real estate and business enterprise ventures in Opportunity
Zones nationwide. She is a frequent speaker and writer about tax
credit financing and Opportunity Zone investing for a wide range
audience, including investors, developers and real estate trade
organizations.
https://www.sec.gov/divisions/corpfin/guidance/reg-crowdfunding-interps.htm#204.05
15 Rule 506(b) allows an unlimited number of accredited investors and up to 35 “sophisticated
investors”, but general marketing is not allowed under 506(b). Rule 506(c) is typically used
by QOFs.
16 See A. Johnson (2019). Optimizing Tax-Advantaged Participation in Qualified Opportunity
Funds. New Directions Trust Company.
17 A traditional IRA investor will pay income taxes at the time of their withdrawal but not at
the time of the QOF capital gains. For a Roth IRA investor, the capital gains tax is effectively
eliminated just like a qualified capital gains investor.
18 https://www.sec.gov/divisions/corpfin/guidance/reg-crowdfunding-interps.htm#204.05
19 US Impact Investing Alliance and Beeck Center for Social Impact and Innovation (2019).
Prioritizing and Achieving Impact in Opportunity Zones.
Leonard Mills has over 30 years of experience in investment
and portfolio management. His past employment includes
positions at the Federal Reserve, Fannie Mae, Wells Fargo,
private funds, and as an adjunct professor. Mills was the head of
portfolio analytics and research for Fannie Mae’s portfolio that
peaked at over $1.5 trillion in assets during his tenure. He was
a principal at Unison Investment Management, managing a real
estate equity fund and an interest rate derivatives fund. Mills has
founded two venture capital funds, Verte Capital (2015) and Verte
Opportunity (OZ).
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