Opportunity for All?

They’re cities of dreams. They’re the nation’s glamor capitals. But they’re attracting the lion’s share of Opportunity Zone funds meant to spark the economies of neighborhoods struck more by poverty than by fame.

Analysis published in September 2020 by tax break experts Novogradac found that investment in more than 800 Qualified Opportunity Funds (QOFs) tracked by the organization exceeded $12 billion, though the total amount in all QOFs was “undoubtedly more.” The White House Council of Economic Advisers put the total around $75 billion. But where are those funds targeted for action?

“QOFs can focus on a national, regional, state or city investment areas,” wrote Michael Novogradac, noting a pretty even split among those with a national, multi-city or single-city focus. Based on available information, California and New York are the leading states for QOF investment, driven by their star-struck cities.

“Based on Novogradac’s numbers, New York City-focused QOFs have raised $696 million and Los Angeles-focused QOFs have raised $509 million — much of which is attributable to the number of low-income areas in those metro areas,” the firm reported. “The investment amounts in New York City and Los Angeles combine to make up 10% of the national investment total.”

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