The legislation that created the Qualified Opportunity Zone program includes a provision for the review and potential update of zone designations every ten years, based on new census data. While the initial zones were designated based on 2010 census data, we are approaching the first major decennial review cycle.
This raises the question: Could some existing QOZs lose their designation? While it is widely expected that the core areas of revitalization will remain in the program, it is critical for investors to partner with a fund manager that actively monitors these regulatory developments.
At SF QOZ Fund, our due diligence process includes a rigorous analysis of the census tract data underlying our target acquisitions. We focus on core urban submarkets that have strong, independent economic drivers, ensuring that even if boundaries are adjusted, our assets are located in areas with proven long-term viability. By staying ahead of the OZ 2.0 curve, we provide our investors with the confidence that their capital is deployed in areas that will continue to offer both economic opportunity and tax-advantaged status.