Rural News
Jennifer Emerling / There Is More Work To Be Done
Jennifer Emerling / There Is More Work To Be Done
PRT, HAC, HOPE Release Opportunity Zone 2.0 Recommendations
The Housing Assistance Council (HAC) in collaboration with Partners for Rural Transformation (PRT) and Hope Credit Union/Hope Enterprise Corporation/Hope Policy Institute (HOPE) Wednesday released recommendations for the Opportunity Zone 2.0 designations to drive investments into rural communities facing persistent poverty.
PRT President Farah Ahmad said: “Opportunity Zones hold tremendous potential to drive investment into rural communities facing persistent poverty across the country – if they are done correctly. This guide offers a framework for state policymakers and local practitioners to ensure that this once-in-a-decade opportunity is not missed in the rural communities millions of people call home.”
HAC President and CEO David Lipsetz said: “Investment in persistently poor rural places is an essential step to address our nation’s affordable housing crisis. State officials have an important opening this year to identify the right places for this investment. This guide explains what’s at stake and how they can take action.”
HOPE Senior Advisor for Policy and Advocacy Diane Standaert said: “With this upcoming round of Opportunity Zone selections, states have a once-in-decade chance to get it right for rural places. HOPE’s experience demonstrates how it’s possible to align community-driven solutions, private investors, and public policy to drive transformative change in rural communities, including those experiencing persistent poverty. With advance planning as recommended in this guide, states can ensure they do not overlook solutions for economic opportunity in the rural areas that need it most.”
Created by the Tax Cuts and Jobs Act of 2017, Opportunity Zones spur economic growth and job creation in low-income communities while providing tax benefits to investors. The first round of Opportunity Zones generated $120 billion in new investments across the country. However, only a fraction of that, about $6 billion, flowed into rural communities by 2022, and even less reached areas experiencing persistent poverty.
The program was amended in the One Big Beautiful Bill Act (OBBBA) and added new incentives for rural communities, including a 30% step-up in basis points for investments and a 50% threshold for showing substantial improvement to rehabilitation projects. However, an overly broad definition of “rural” risks funding being diverted away from targeted rural and Native communities. For example, Atlantic City meets the definition of a “rural Opportunity Zone” under the OBBBA.
Activating Rural Investments in the Next Round of Opportunity Zones: Recommendations for States can be found here. The recommendations follow four guidelines:
- Engage Rural Communities, Native Communities, and Practitioners: Hearing directly from rural communities through organizations like Community Development Financial Institutions and non-profit developers will help state and local leaders designate Opportunity Zones that will have the greatest impact.
- Create a Map that Targets Unique Rural Needs and Development Goals: Mapping tools can assist state and local leaders in designating rural areas where investment is needed most and illuminate the opportunities to leverage additional investment incentives.
- Create Priorities in State Funding Programs: States can take a more active role in driving investment into rural communities facing persistent poverty by prioritizing projects within preexisting state programs to attract additional resources and investors.
- Create an Assessment Tool: Establishing a clear decision-making rubric can ensure high-impact selections are made in a transparent manner.
PRT, HAC, and HOPE hosted a webinar on the guide for state policymakers, regional development hubs, and local non-profits on March 12. The recording is available here.
