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 strategies, and data analysis. In her previous experience, Elder worked with industry-leading clients, including AARP Foundation, The Mental Health Association of Frederick County, Massachusetts General Hospital and AOPA. She has experience 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). OPPORTUNITYZONE.COM