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Showing posts with the label Community development

New Opportunity Zone Guidance

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April 17th saw the release of a second set of guidance for the “Opportunity Zone” (OZ) program. As we noted in testimony to the IRS on February 14th , we remain concerned that the OZ program diverts needed tax revenue from public purposes and places this revenue in the hands of a mainly wealthy and white demographic unrepresentative of the US population as a whole. As the Hill Newspaper noted, the program has "drawn criticism from those who argue it will primarily benefit wealthy investors rather than residents of low-income neighborhoods." Today's regs do nothing to change this concern. The regs released today benefit Opportunity Zone Funds (as opposed to residents). These funds are the financial vehicle used to make investments in Opportunity Zone areas. Today's regs are "designed to make it easier for funds to ensure that they are complying with a requirement that they have 90 percent of their assets invested in opportunity zones." In other words, the

DC Econ UNPLUGGED Lanxi He, Research Analyst Intern, Creative Investment. Georgetown University

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On January 31st, the Office of The Deputy Mayor For Planning And Economic Development presented DC Econ UNPLUGGED, which connected fashion, arts, entertainment, housing, transportation and others sectors to DC’s economic development. Event attendees shared opinions, thoughts and suggestions, and also enjoyed wonderful food and music. First, a panel consisting of DC's fashion leaders - Kristopher Johnson-Hoyle, Editor, Chairman of the Mayor's Commission on Fashion, Arts and Events; Deidre Jefferies, Owner/Creative Director of ESPION Atelier, CFAE Commissioner; Mariessa Terrell, Fashion Attorney, Howard Law School IP Law Clinic Supervising Attorney, and CFAE Commissioner; Roquois Clark, Co-Creative Director, District of Fashion Runway Show, DowntownDC BID - talked about the impact fashion entrepreneurs have  on DC’s economy and ecosystem. A second panel - Ernest Chrappah, Interim Director of DCRA; Shawn Townsend, Director of Nightlife and Culture; Fred Moosally, Director o

Opportunity Zones

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The Tax Cuts and Jobs Act, passed in 2017, created new tax incentives for investments in what are known as Opportunity Zones: targeted areas in the United States. Investments are made via Qualified Opportunity Funds, who are directed to promote economic development in 8,700 disadvantaged rural and urban (read Native, African American and Hispanic) communities (low-income census tracts selected by state governors and certified by the U.S. Treasury Department) by offering investors substantial federal tax advantages. As one analyst explained: "Assume an investor has a $1 million gain in Apple stocks and decides to sell. To keep it simple, let’s also assume the investor is in a 20 percent tax bracket, totaling $200,000 in capital gains tax. But instead of paying, the investor reinvests the $1 million in an Opportunity Fund. If the investor holds for more than 10 years: the investor pays ZERO capital gains tax on the appreciation of that asset." These benefits are only

The Future of Public Housing (Hsiu Jui Chang, William Cunningham, Jui Kai Li)

On July 29th, the Subcommittee on Housing and Community Opportunity held a hearing on Academic Perspectives on the Future of Public Housing. Testifying were Dr. Thomas D. Boston, Professor, School of Economics, Georgia Institute of Technology, Orlando Cabrera, Chief Executive Officer, National Community Renaissance and Nixon Peabody, Dr. James Fraser, Associate Professor, Department of Human and Organizational Development, Vanderbilt University, Dr. Edward Goetz, Director, Center for Urban and Regional Affairs, University of Minnesota, Dr. Laura Harris, Assistant Professor, School of Urban Affairs and Public Policy, University of Memphis, Mr. David R. Jones, President and Chief Executive Officer, Community Service Society of New York, Dr. Mark Joseph, Assistant Professor, Mandel School of Applied Social Sciences, Case Western Reserve University, and Dr. Susan Popkin, Director, Program on Neighborhoods and Youth Development, The Urban Institute. In the opening

Creative Investment studies community development and minority-owned financial institutions for PG&E

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Washington, D.C. — Creative Investment Research, Inc. announced that it has provided to Pacific Gas & Electric Company current, up to date social and financial credit ratings covering community development banks serving areas of high social need within PG&E’s service territory. PG&E has made FDIC-insured deposits in fifteen minority and community based institutions. The Community Investment Program (CIP) positively reflects the company’s values and has been undertaken as part of PG&E’s continuing effort to be responsive to the needs in communities it serves. The portfolio has a 90 day maturity. Performance data for the portfolio, relative to investing alternatives, is outlined above.