Author: Keith A. Carswell, Director, Department of Economic Innovation & Development
A National Conversation with Local Impact
On May 8, 2025, I had the privilege of representing the City of Miami at the Opportunity Zone Policy Summit in Washington, DC. Keynoting and panel moderating was Senator Tim Scott (R-SC), one of the original architects of the federal Opportunity Zone (OZ) program. Among other national leaders in attendance was Senator Mike Crapo (R-ID), Chair of the U.S. Senate Finance Committee, which is currently reviewing the proposed Opportunity Zones 2.0 legislation.
Just weeks earlier, on April 11, the City of Miami hosted its own Opportunity Zone Summit at the Frost Museum of Science under the theme “The Capital of Capital: Fueling Miami’s Opportunity Zones.“
This finance-focused event featured HUD Secretary Scott Turner, Mayor Francis X. Suarez, and a cross-section of business, and investment leaders dedicated to unlocking capital and accelerating impact across Miami’s Opportunity Zones.
What’s in the Opportunity Zones 2.0 Legislation?
The Opportunity Zones 2.0 proposal, currently under Senate review, outlines key changes designed to improve accountability and expand investment into underserved communities:
- Early Sunset of Existing OZs: Moves up the expiration date of current zones to December 31, 2026
- New OZ Designations: Launches a new round of zones effective January 1, 2027 to December 31, 2033, with at least 33% in rural areas
- Adjusted Tax Incentives: Offers a 10% basis step-up after 5 years, and a 30% step-up for projects in Qualified Rural Opportunity Funds (QROFs)
- Ordinary Income Inclusion: Allows taxpayers to invest up to $10,000 of ordinary income annually (lifetime cap: $10,000) into Qualified Opportunity Funds
- Enhanced Reporting: Adds mandatory disclosure and transparency requirements for QOFs and Opportunity Zone businesses
Concerns with the Current Proposal
While the updated framework represents progress, several concerns have been raised by stakeholders:
- Gap Year for Investments: The proposed sunset of current zones in 2026 followed by a new round in 2027 may create a disruptive “dead zone” for OZ investments during 2026
- Reduced Number of Zones: The legislation is expected to reduce the total number of Opportunity Zones nationwide by approximately 22%, potentially excluding areas still in need of revitalization
- Limited Support for Urban Communities: With one-third of new designations mandated for rural areas, urban communities may face reduced access to new OZ investment benefits
- Lack of Permanency: The program remains temporary, which may discourage longer-term capital commitments
- Missed Opportunity for Rolling Deferrals: Investors may lose out on more flexible reinvestment options due to the absence of a rolling deferral mechanism
These points underscore the need for thoughtful refinement of the legislation to ensure continuity, equity, and maximum impact.
Miami by the Numbers: OZ Progress to Date
Since the program’s launch in 2018, the City of Miami has tracked:
- 155 large-scale real estate projects (100+ units)
- 53,377 new housing units citywide
- $13.1 billion in total development activity
- Of these, 44 projects are in Opportunity Zones, bringing:
- 15,108 residential units
- $3.1 billion in construction investment
This underscores how the OZ framework has been a powerful catalyst for housing and infrastructure investment in Miami.
Understanding Miami’s OZ Geography
The City of Miami contains approximately 100 census tracts, with about 30 designated as Qualified Opportunity Zones. These include areas of historic and strategic importance:
- Allapattah
- Liberty City
- Little Haiti
- Overtown
- Sections of Downtown and Wynwood
You can explore Miami’s OZ tracts on the Miami-Dade County Opportunity Zones Map .
Local Tools: Miami 21 Zoning Incentive
To complement federal OZ incentives, the City of Miami offers a targeted local zoning benefit:
Attainable Mixed-Income Housing Transfer of Development Density Program
This program enables developers to sell unused as-of-right residential density if the following criteria are met:
- The development meets Subsection 3.15.2 of Miami 21
- Includes at least 200 attainable mixed-income units
- Is located within a CRA or designated Opportunity Zone
This approach promotes affordable housing while enhancing the economic viability of large-scale development.
What’s Next
The City of Miami continues to lead in deploying Opportunity Zone tools for real impact.
As federal legislation advances, we remain committed to aligning local policy, investment, and community outcomes.
Stay tuned to www.eidmiami.org for further updates as Opportunity Zones 2.0 takes shape
Watch this space. Big things are on the horizon.
