|HUD No. 19-106
HUD Public Affairs
July 16, 2019
SECRETARY CARSON APPLAUDS THE SEC'S EFFORTS TO ENCOURAGE MAIN STREET INVESTORS TO INVEST IN OPPORTUNITY ZONES
SEC is also explaining how state and federal laws apply to Opportunity Zone fundraising
WASHINGTON - U.S. Housing and Urban Development (HUD) Secretary Ben Carson today applauded the Securities and Exchange Commission's (SEC) recent efforts to encourage Main Street capital investment in Opportunity Zones. In addition to providing guidance about participating in Qualified Opportunity Fund offerings, the SEC has worked with the North American Securities Administrators Association (NASAA) to describe the compliance implications for Qualified Opportunity Funds under federal and state securities laws.
"Opportunity Zones provide a community-specific incentive for long-term investment," said SEC Chairman Clayton. "The SEC staff statement and guidance about Opportunity Zones demonstrate that Main Street investors can invest in their communities in a manner that is compliant with our securities laws." Read more about the SEC's staff statement on Opportunity Zones here (www.sec.gov/page/staff-statement-opportunity-zones-federal-and-state-securities-laws-considerations).
"Opportunity Zones have the ability to enhance thousands of communities and improve millions of lives across the country," said HUD Secretary Carson. "The steps the SEC has taken will help unlock more investments into Opportunity Zones, and more investment means better outcomes for the residents of these distressed communities."
Secretary Carson is the Chair of the White House Opportunity and Revitalization Council ("Council"), which consists of 17 members from Federal agencies and Federal-State partnerships. The Council engages with governments at all levels-State, local, tribal, and Territorial-on ways to more effectively use taxpayer dollars to revitalize low-income communities.
President Trump signed the 2017 Tax Cuts and Jobs Act, creating Opportunity Zones to stimulate long-term investments in low-income communities. As the initiative offers capital gains tax relief to those who invest in these distressed areas, the tax incentives are anticipated to spur $100 billion in private capital investment in Opportunity Zones. Incentivizing investment in low-income communities fosters economic revitalization, job creation, and promotes sustainable economic growth across the nation, especially in communities HUD serves. On average, the median family income in an Opportunity Zone is 37 percent below the state median. Overall, more than 8,700 communities in all 50 States, Washington D.C., and five U.S. Territories have been designated as Opportunity Zones. Nearly 35 million Americans live in communities designated as Opportunity Zones. Read more about Opportunity Zones (www.irs.gov/newsroom/tax-reform-creates-opportunity-zone-tax-incentive).
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. More information about HUD and its programs is available on the Internet at www.hud.gov and https://espanol.hud.gov.
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