Opportunity Zones? What are OZs? How Do They Work? What can OZs do for the affordable housing crisis? Why it is that what they can do may not be at all what they will do? Ever.
A recent article in Forbes helps explain why this new investment concept, with the potential to help less advantaged neighbourhoods in communities across America, is a hopeful mechanism for encouraging business growth.
For investors, the incentive for risking money in opportunity zones comes in the form of significant tax breaks. The investments can’t be for golf courses or exclusive country clubs for the wealthy. Other than that, pretty well any kind of investments is permitted.
So why would an investor pour money into affordable housing to improve the living conditions for poorer folks within the neighbourhood? Particularly when investment in luxury condos is allowed?
If the question preys upon you, read in Forbes: What You Need to Know About Opportunity Zones.
The article explains from a business perspective how affordable housing might come about in an OZ investment. At the very least, it holds out the prospect that principled investors have a mechanism to not only have their cake, but also eat it, all while doing valuable public service at the same time.
