Opportunity Zone
Definition
Federal tax incentive program allowing investors to defer capital gains taxes by investing in designated low-income areas. Controversial: benefits wealthy investors, limited accountability for community impact.
Louisville Context
Louisville has 24 federally-designated Opportunity Zones, mostly in West Louisville and South End. Intention: attract private investment to distressed areas. Reality: often benefits real estate developers and wealthy investors more than residents. Projects can gentrify neighborhoods without affordable housing or living-wage jobs. Dave requires: (1) community benefits agreements for OZ projects, (2) affordable housing requirements, (3) local hiring mandates, (4) transparency on investments and outcomes.
Why It Matters
Opportunity Zones can either revitalize neighborhoods or accelerate gentrification. Without community input and requirements for affordable housing and good jobs, OZ investments displace residents rather than lifting them up.
Dave’s Proposal
All Opportunity Zone projects receiving city support must include: community benefits agreements, affordable housing components, local hiring requirements, and transparency reporting on community impact.