Opportunity Zones

Opportunity zones are meant to encourage development and job creation in low-income communities. To do this, opportunity zones allow investors who invest unrealized capital gains in opportunity funds to defer paying capital gains income tax on the money until 2026. These funds are then invested into the OZ. If 90% of the investment stays in the zone for ten years, investors can avoid paying the capital gains tax altogether. In New York there are 306 opportunity zones.

Opportunity Zones Q&A

How were opportunity zones created?
Opportunity Zones were created by the Tax Cuts and Jobs Act on December 22, 2017. The first OZs were designated the following April.
How do opportunity zones influence the real estate market?
Intended to spur development in low-income communities, opportunity zones create an incentive for the real estate industry to move more money into underdeveloped areas. In New York, opportunity zones are largely residential. The chance to invest tax-free in a property or development within an opportunity zone is an incentive for many investors.
Who is impacted by opportunity zones?
Investors with real estate interests, or who are looking to increase their real estate interests, may benefit from opportunity zones. Their effect on residents of the zones are more unclear. Although the stated intention of the opportunity zones is to create jobs and increase the quality of living in the zones, some suggest that opportunity zone development causes gentrification and are a giveaway for the rich; others suggest that they are simply not as effective in alleviating poverty as they claim to be; and still more suggest that the long-term effects of opportunity zones are yet to be seen.
Want to know more about opportunity zones?
Check out our Top Stories below for TRD's most up-to-date coverage of opportunity zones.

Opportunity Zones Top Stories

September 10, 2019Why a Hell’s Kitchen census tract is in the Opportunity Zone program
September 9, 2019CrowdStreet, a real estate crowdfunding firm, launched its own Opportunity Zone fund targeting $20 million.
August 12, 2019State senator James Sanders Jr. on New York state and city Opportunity Zones.
August 9, 2019“Um, news flash, the rich will get richer anyway.”

The Latest

Alex Sapir’s massive Opportunity Zone site in Miami hits the market

Sapir Corp. and its partners planned to build a 1.7 million-square-foot project on an assemblage of land north of...

HUD Secretary Ben Carson joins Grant Cardone and a power panel for TRD Miami Forum

Ben Carson, head of the U.S. Department of Housing and Urban Development, will be among the roster of speakers...

Census tract 135 and Stellar Management's Larry Gluck (Credit: Getty Images and Stellar Management)

How a small stretch of land on the Far West Side became an Opportunity Zone

It’s hard for “census tract 135” not to stand out on a map of Opportunity Zones in the five...

Crowdfunding platform launches $20M Opportunity Zone fund

A crowdfunding platform is piling into Opportunity Zones. CrowdStreet is launching a $20 million fund that will target new...

Silverback Development's Josh Schuster (Credit: iStock)

NYC developer raises $50M, will hunt for deals in Southern bayous and beaches

Josh Schuster’s Silverback Development has snagged a $50 million capital investment to seed a new Opportunity Zone Fund and...

From left: New York Governor Andrew Cuomo, New York State senator James Sanders Jr., and New York City Mayor Bill de Blasio (Credit: Getty Images, iStock, and NY Senate)

“This program will either be a boom or a bust:” State senator has plans to redesign Opportunity Zones

UPDATE Monday, August 12, 2019, 11:47 a.m.: New York State senator James Sanders Jr. is laying groundwork in New York to modify the federal...

“Rich people are going to get richer anyway”: HUD Secretary Ben Carson dismisses concerns that Opportunity Zones will only benefit rich people

Ben Carson is well aware of the complaints directed at federal Opportunity Zones, and how the tax incentive program meant to boost struggling communities...

Bridge Investment Group Chairman Robert Morse and the Willet's Point neighborhood (Credit: Getty Images)

Bridge Investment met its $500M Opportunity Zone fund goal. Now what?

Bridge Investment Group said it had raised $509 million through its Opportunity Zone fund, becoming one of the few...

Presidential debate 2020 Night 2: Here’s where these Democratic candidates stand on housing

Some of the 10 Democratic candidates for president taking the stage at Thursday’s debate in Miami have wrapped their housing policies in larger proposals...

“It’s like the tulip craze:” South Florida developers expect Opportunity Zone land values to wilt

Developers are finally putting shovels in the ground and deploying capital in Opportunity Zones in South Florida and across the country. But with 124...

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