Bill Overview
Title: To amend the Internal Revenue Code of 1986 to require fairness and diversity in opportunity zone investment and to require minimum investment in controlled-environment agriculture.
Description: This bill modifies requirements relating to opportunity zone investment (i.e., investment in economically distressed areas) to require its funds to meet specified investment advisory board, diversity, and affordable housing requirements. It also requires that at least 5% of a fund's qualified opportunity zone property is controlled-environment agriculture property.
Sponsors: Rep. Johnson, Henry C. "Hank," Jr. [D-GA-4]
Target Audience
Population: Residents of economically distressed areas designated as opportunity zones
Estimated Size: 2000000
- Opportunity zones are designated economically-distressed areas to stimulate investment and economic development.
- Residents of these zones are likely to experience direct impacts as the investment landscape changes.
- The introduction of mandatory diversity and affordable housing requirements implies potential benefit for minority communities and lower-income individuals who live in opportunity zones.
- Controlled-environment agriculture can potentially impact those involved in the agricultural sector, urban development, and local food economy within opportunity zones.
Reasoning
- The policy targets economically distressed areas, so individuals directly impacted are likely already experiencing challenges such as lower incomes or fewer employment opportunities.
- By requiring investment funds to meet diversity and affordable housing standards, minority and low-income residents might see an increase in housing options and other benefits.
- The inclusion of controlled-environment agriculture suggests that individuals in these areas who work in agriculture or related sectors may see new job opportunities.
- Not everyone in distressed areas will be directly impacted, as those not involved in real estate, agriculture, or investment might see minimal change.
Simulated Interviews
Construction Worker (Detroit, MI)
Age: 45 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I'm hopeful about new construction jobs this policy might bring.
- Affordable housing is much needed, maybe it'll help relieve my rent costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 3 |
| Year 5 | 7 | 3 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 3 |
Local Cafe Owner (Baltimore, MD)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- This policy might bring more foot traffic and investment to my area, which would help my business.
- The focus on agriculture might mean more local products I can use.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Small-scale Farmer (Rural Mississippi)
Age: 52 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- Controlled-environment agriculture doesn't suit my farm, but it might create jobs for others.
- I hope investments also address broader rural issues.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Software Developer (Newark, NJ)
Age: 29 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 18/20
Statement of Opinion:
- Not sure how much this policy will affect technology and crime issues.
- Might see some ripple effects from economic development in the longer term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 6 |
Retired School Teacher (Appalachia, KY)
Age: 63 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 9/20
Statement of Opinion:
- Affordable housing could really help seniors like me.
- Hope the investment benefits everyone, not just investors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 3 |
| Year 5 | 6 | 3 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 3 |
Urban Planner (Riverside, CA)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy aligns with sustainable practices by promoting controlled-environment agriculture.
- It may introduce new planning challenges but is promising.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
College Student (Phoenix, AZ)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 14/20
Statement of Opinion:
- I'm excited about the focus on agriculture—could mean more opportunities.
- Affordable housing is also crucial for students like me living off-campus.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 7 | 4 |
Restaurant Manager (Chicago, IL)
Age: 37 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 8/20
Statement of Opinion:
- If this can help stabilize rent and bring more customers, that'd be great.
- Not sure how the agriculture part would impact city restaurants like mine.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Real Estate Agent (San Antonio, TX)
Age: 48 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- This policy could drive more real estate interest in opportunity zones.
- Might be a good chance to focus on sustainable housing projects.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Non-Profit Worker (Oklahoma City, OK)
Age: 56 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- The diversity requirement could really help improve equity in these zones.
- Hope to see better living conditions and infrastructure develop.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $10000000)
Year 2: $5200000 (Low: $3100000, High: $10500000)
Year 3: $5400000 (Low: $3200000, High: $11000000)
Year 5: $5800000 (Low: $3400000, High: $12000000)
Year 10: $6500000 (Low: $3700000, High: $13500000)
Year 100: $10000000 (Low: $5000000, High: $20000000)
Key Considerations
- The potential administrative burden on opportunity zone funds due to new compliance requirements.
- The need for effective oversight and measurement of diversity and inclusion efforts within opportunity zones.
- Economic impacts on local agricultural markets due to the push for controlled-environment agriculture investments.
- The sustainability and scalability of affordable housing projects within opportunity zones.