For Communities
There are trillions of unrealized capital gains sitting on balance sheets across the country. A Federal Opportunity Zones market is already in play and much of this capital is actively seeking projects. In order for our communities to successfully attract capital to projects that will benefit the citizens and positively impact communities, stakeholders will need to organize themselves to develop prospectuses, structure deals and add incentives that are attractive to investors, and work to engage investors.
Be Proactive – The best way to ensure that your community attracts the investments it would like is to make those projects the most attractive and easiest to find.
Urgency is Key – To realize the full benefits of the incentive, a Federal Opportunity Zone investment must occur before the end of 2019. While FOZ investments will continue after this date, community and projects that organize themselves quickly will have an easier time attracting capital.
Think Like an Investor – Focus on projects that will help investors realize a return, and consider what your community can do to increase that return even more. Many Opportunity Fund investors focus on Impact Investments, which means the intent to generate a social or environmental impact alongside their financial return. Your local strategy will help guide investors with the same mission or vision to invest in projects in your community.
For a template of an investment prospectus and example of an investment prospectus, please see the “Resources” on the Federal Opportunity Zones page.