Dorothy Brown (Georgetown; Google Scholar), Opportunity Zones: A Better Path Forward (JOTWELL) (reviewing Deanna S. Newton (Pepperdine), Closing the Opportunity Gap, 102 N.C. L. Rev. 1159 (2024)):

Professor Deanna S. Newton’s article, Closing the Opportunity Gap, is an example of the best of legal scholarship, one which provides a thorough critique of a well-known problem, but also engages with unique policy prescriptions designed to actually make a difference. The article discusses Opportunity Zones, introduced by the Tax Cuts and Jobs Act of 2017 and designed to “encourage investment in economically distressed areas by offering investors tax benefits.” (P. 1161.)

Professor Newton begins by acknowledging the most frequent critique of Opportunity Zones, namely “that most benefits from Opportunity Zone legislation go to wealthy investors rather than the residents within Opportunity Zones.” (P. 1161.) …

Professor Newton argues that Opportunity Zone incentives currently do not recognize the value of existing assets already in the community and do not engage the community and investors. She advocates for an interdisciplinary approach, and proposes two intriguing reforms: (i) first, that investors should be required to make a one-time “buy-in” or pay an “initiation fee” (P. 1202); and (ii) second, that a percentage of each Opportunity Zone should be reserved for current community members to invest in, which they will be able to do because the amount of the “buy-in” would be allocated to the community members and would fund their investment. She discusses the practicalities of how the amount of the buy-in should be determined (Pp. 1206-09); how the community fund should be managed (Pp. 1209-11); and how community members can accumulate assets through this approach (P. 1211-20.)

Professor Newton concludes by once again arguing that Opportunity Zones should be reformed based on community development principles. It is an argument with the potential to transform marginalized communities. “Opportunity Zone reform must include participation by investors and community members in the decision-making process, in program implementation, and in benefit sharing.” (P. 1221.) But the truly radical nature of her argument is how she envisions a future where existing community members financially and socially benefit from Opportunity Zones. Here’s hoping that Professor Newton’s vision materializes in the not-too-distant future.

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