Article
Opportunity Zones 2.0: Public sector readiness checklist
March 27, 2026 · Authored by Jolena Presti
Opportunity Zones 2.0 (OZ) reopens a powerful tool for place-based investment, but only jurisdictions that prepare deliberately will see results. This checklist reflects what public-sector leaders should do now, before the designation window opens.
- Appoint a single OZ 2.0 lead: Designate one office or senior staff member responsible for OZ strategy, coordination and deadlines.
- Create an interagency OZ working group: Include economic development, housing, planning, transportation, workforce and budget/tax staff.
- Brief elected leadership early: Explain what changed in OZ 2.0 (permanence, tighter eligibility, rural incentives, reporting). Clarify tradeoffs and political risks associated with poor zone selection.
- Set a clear economic objective: Decide what OZs are meant to deliver—jobs, housing, rural investment, business growth or some combination.
- Pull the OZ 2.0 eligibility list: Screen census tracts using the new income and poverty thresholds. Confirm no reliance on contiguous tract exceptions (now eliminated).
- Define written zone selection criteria: Balance economic distress with market feasibility, infrastructure access and on-the-ground community readiness.
- Analyze OZ 1.0 performance: Identify which past zones attracted investment and which did not. Avoid repeating ‘no-investment’ zones—tracts that received little or no OZ activity under OZ 1.0.
- Intentionally incorporate a rural strategy: Identify tracts that benefit from enhanced rural OZ incentives. Confirm that rural projects can meet the 50% substantial improvement threshold.
- Plan a transparent public input process: Publish selection criteria, consider local recommendations and document decision-making.
- Inventory investable projects: Include real estate, operating businesses, industrial, logistics or mixed-use sites.
- Prioritize projects with site control: Focus on publicly owned sites, projects with identified development partners or those with a clear land assembly path.
- Preclear major development barriers: Address zoning alignment, environmental conditions, and utility or infrastructure capacity issues.
- Create investor-ready project sheets: Include location and OZ status, proposed use and size, estimated capital stack and available local incentives.
- Map all complementary incentives: Identify state and local tax credits, grants and infrastructure funding sources.
- Evaluate stacking opportunities: Assess compatibility with New Markets Tax Credits (NMTC), Low-income housing tax credits (LIHTC) or workforce housing tools and brownfield or site redevelopment programs.
- Streamline development approvals: Reduce uncertainty in zoning, permitting and entitlements to signal predictability to investors.
- Explicitly integrate rural OZ advantages: Market the 30% basis step-up and highlight reduced improvement requirements.
- Document community priorities: Housing affordability, job access and small business support.
- Meet with local stakeholders early: Engage anchor institutions, nonprofits and residents.
- Set expectations for investors: Encourage local hiring, use of local and small-business suppliers, and mixed-income housing where appropriate.
- Assess displacement risks: Monitor housing supply and coordinate with housing stabilization and tax relief tools.
- Develop a clear OZ 2.0 value proposition: Articulate the community’s place-based assets and how they align with OZ 2.0 rules.
- Create plain-language OZ materials: Explain how OZ 2.0 works, including timelines, holding periods and basic compliance requirements.
- Build relationships with capital providers: Engage Qualified Opportunity Funds, banks, CDFIs and developers.
- Position government as a facilitator: Convene, connect and de-risk—without overpromising returns.
- Understand OZ 2.0 reporting requirements: Anticipate expanded federal reporting obligations and penalties for noncompliance.
- Define success metrics: Jobs created, housing units delivered and businesses launched or expanded.
- Assign data ownership: Determine who collects, validates and reports data.
- Create a feedback loop: Inform zone strategy and project focus throughout each 10-year designation cycle.
- Integrate OZs into the 10-year economic strategy: Treat OZs as permanent infrastructure, not a short-term incentive.
- Document decisions and outcomes: Prepare institutional knowledge for the next redesignation cycle.
- Assess staffing and capacity: Ensure long-term program management is realistic and resourced.
Unlocking Opportunity Zones’ potential to address the housing shortage
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