Opportunity Zones (OZs) have primarily attracted real estate investments, with limited business investment. Realizing the Transformative Potential of Opportunity Zone Business Investing highlights this gap and proposes regulatory changes to unlock OZ potential. Recommendations include clarifying rules for IP-focused sectors, easing improvement requirements, and extending working capital timelines. Stronger reporting and safeguards are urged to ensure OZs create jobs, build community wealth, and support equitable economic growth in distressed areas.

A redevelopment project in Philadelphia's Wayne Junction neighborhood transformed a historic industrial site into a mixed-use development. The project utilized Opportunity Zone incentives, New Markets Tax Credits, and other financing tools, serving as a model for equitable urban revitalization.

The U.S. is shifting from top-down community development to a bottom-up approach focused on people over buildings. This emerging model prioritizes skills, entrepreneurship, and local asset-building to drive economic inclusion. Driven by evolving practices, new investors, and tools like Opportunity Zones, it seeks to expand access to fair capital and foster inclusive revitalization.

The United States is undergoing a quiet revolution in revitalizing distressed urban communities, where poverty, low social mobility, and wealth disparities persist. The private sector has often ignored the potential of these communities, contributing to income inequality.

However, in recent years, a new approach—"Community Wealth"—has emerged, representing a shift toward more effective, inclusive private capital investment in underserved neighborhoods.

The Illinois Medical District (IMD) in West Chicago is a major urban medical hub driving economic growth and innovation. Positioned in a distressed area, it leverages Opportunity Zones, strategic partnerships, and zoning control to attract investment, promote inclusion, and ensure equitable benefits for surrounding communities.

Mayors gathered in Copenhagen for a C40 summit focused on urgent climate action. Cities, especially Copenhagen with its goal of carbon neutrality by 2025, were seen as leaders in addressing climate challenges through innovative solutions in policy, products, and processes.

The U.S. is facing a "street fight" between small businesses, absentee landlords, and low-quality capital. In neighborhoods like North Kensington, initiatives like Shift Capital are working to regenerate communities by supporting local businesses.

The lack of local capacity is a significant challenge in realizing the full potential of Opportunity Zones. Many local governments struggle with limited resources and expertise, while civic and private institutions often lack coordination and capital.

We are experiencing a profound shift in power and responsibility, moving from top-down, government-led solutions to bottom-up, network-driven approaches. This transition is reshaping urban revitalization, investment, entrepreneurship, housing, and governance.

Opportunity Zones have transitioned from concept to reality, addressing the capital gap in underinvested areas by supporting long-term, socially impactful projects. The incentive encourages investment in diverse developments like mixed-income housing and revitalized commercial spaces. While it fosters responsible investment, careful planning is essential to avoid misuse and ensure lasting community improvement.

Eighteen months into the Opportunity Zone initiative, investments in distressed neighborhoods are driven by local communities focusing on projects like workforce housing and small businesses, rather than just capital gains incentives. While the national discourse often fears gentrification, local efforts are fostering long-term growth with coordinated capital.

By 2040, universities must enhance their roles as anchor institutions by leveraging resources to promote inclusive growth. This includes stimulating local economies through innovation districts, investing in their communities using land and endowments, and embracing civic responsibilities by maximizing educational opportunities and addressing social challenges.

The Nowak Metro Finance Lab released a City Case study on Cincinnati’s 3CDC, which successfully revitalized Over-the-Rhine using public, private, and civic capital. With $1.4 billion invested, 3CDC transformed the neighborhood inclusively, creating affordable housing and restoring civic spaces.

In 2003, Cincinnati's leadership established the Cincinnati Center City Development Corporation (3CDC) to revitalize downtown and the Over-the-Rhine neighborhood. The organization used private funding to make unconventional investments in civic spaces, blighted properties, affordable housing, and commercial developments, transforming vacant areas and reinvigorating the city's economy.

As the 2020 campaign progresses, federal proposals have focused on healthcare, housing, and the safety net, with less attention on empowering local players like states and cities. The misalignment between federal governance and local, integrated approaches calls for proposals that scale local innovations, align federal investments with local needs, and modernize institutions to better reflect the decentralized structure of the nation.

Governance is key to modern urban development. Two forthcoming studies, "The Rise of Innovation Districts” and another analyzing Cincinnati’s 3CDC, highlight how new institutions blending public, private, and civic roles drive economic growth, placemaking, and inclusion. Unlike traditional public authorities, these entities unlock capital and expertise for sustainable urban transformation. Scaling this model requires case studies, academic focus, and skilled leaders.

We outline nine strategic steps for cities to leverage Opportunity Zones (OZs) to enhance infrastructure assets. These steps include enacting strong public-private partnership legislation, creating skilled negotiation teams, and integrating economic development with utility and transportation departments.

Philanthropies are critical to unlocking the full potential of Opportunity Zones, but many have been slow to engage due to risks, unfamiliarity with market finance, and concerns over the program's imperfections. Despite this, some philanthropies are beginning to step up by convening stakeholders, mapping assets, and providing concessionary capital to fill financing gaps.

The Department of Housing and Urban Development's (HUD) recent Request for Information seeks public input on leveraging Opportunity Zones to revitalize low-income communities, particularly public and assisted housing. With nearly 27% of public housing residents living in Opportunity Zones, there's significant potential to blend market-led transformation with affordable housing and economic growth.

The U.S. federal system thrives on bottom-up solutions, in contrast to the centralized governance of Israel and the UK. While both countries face political instability, the U.S. benefits from its decentralized approach, with cities adapting tools like Opportunity Zones and innovation districts to foster local community development.