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Staff Report and Business Impact Statement
TDD/ Opporturi11y�
Purpose:
The purpose of this amendment is to expand the affordable housing transfer of development density (TDD)
program to include opportunity zones.
Estimated Direct Economic Impact:
• No direct compliance cost is associated with the amendment. Business and property owners must
elect to participate in the program. Development rights are sold and bought on the open market.
• Developers may choose to sell or buy development rights on the open market. The current rate of
TDDs in Miami is estimated to range from $15,000.00 to $35,000.00.
• It is anticipated that this amendment will have a net positive impact on City's revenues. 15% - 25%
(as negotiated by the City Manager) of the proceeds from the sale of the TDDs will be contributed to
the shall be contributed to the City's Affordable Housing Trust Fund.
Estimated Number of Businesses to be Impacted:
The estimated number of businesses to be impacted by this amendment cannot be determined due to the
ambiguities created by the voluntary nature of the amendment and the uncertainty of the free market.
Additional Information:
• Federal Opportunity Zones (OZs) are a community and economic development tool used to drive
investment into distressed areas throughout the US.
• In early 2018, governors were asked to identify 25% of their state's eligible census tracts as Eligible
Opportunity Zones. The program guidelines encouraged input from local economic development
stakeholders to ensure the selected zones balance needs with opportunity.
• The program encourages long-term, community investments by increasing benefits for commitments
of five, seven, and 10 years.
• To stimulate private participation, the program allows investors to defer federal taxes by taking
capital gains from other investments and investing in a Qualified Opportunity Fund. In turn,
Qualified Opportunity Funds must invest at least 90% of their assets in businesses or property
located within eligible areas.
• Further information on the U.S. Depaitiuent of the Treasury and IRS regulations implementing the
Opportunity Zones tax incentive is available at https://www.irs.gov/newsroom/opportunity-zones-
frequently-askedquestions.
Recommendation: Approval