Department of Housing and Urban Development (HUD) Secretary Ben Carson joined acting Comptroller of the Currency Brian Brooks and Sen. Tim Scott (R-S.C.) in an event to raise awareness of the way in which Opportunity Zones can receive credit under new regulatory rules.
The event took place in Charleston, S.C., and brought together 50 bankers, developers, and advocates from throughout the mid-Atlantic region.
Opportunity Zones activities in investment and lending may be available to receive credit under the Office of the Comptroller of the Currency’s (OCC) new Community Reinvestment Act (CRA) rule.
“The Charleston community, and many others like it across the nation, have witnessed the revival of economic activity since the Opportunity Zone tax incentive was established by President Trump,” Carson said in a news release. “The new CRA rule will continue to draw bankers, lenders, and entrepreneurs to communities that are ripe with untapped investment and have grounds that are fertile with economic opportunity. Since day one, Sen. Scott has been a champion for Opportunity Zones, and I am thankful to be with him and acting Comptroller Brooks – whose work identified this new way to support community development – today for these important discussions that will power capital investment in underserved communities.”
Presentations included a welcome from South Carolina Bankers Association President and CEO Fred Green and a discussion by PNC Bank regarding its investments in Opportunity Zones. A team from TD Bank and the International African American Museum also shared insight into the development of the museum, which highlighted how the project benefited from CRA credit and how similar deals could benefit under the OCC’s new CRA rule.
“Today, bankers, community developers, and advocates got together to explore how to green light projects that increase access to capital to meet local housing and community reinvestment needs,” Brooks said. “By combining incentives associated with Opportunity Zones and credit under the OCC’s new CRA rule, we have a powerful force for supporting underserved areas and creating sustainable change for communities in South Carolina and across the nation.”
The event also included remarks by Scott and a robust roundtable discussion of CRA lending and investment relationships in underserved markets and opportunity zones.
“I’d like to thank Secretary Carson and acting Comptroller Brooks for making the trip down to South Carolina. Access to capital is a very important topic for people in underserved and minority communities across South Carolina and our nation, especially as so many are seeking to navigate economic challenges around the pandemic,” Scott said. “As the author of Opportunity Zones, I created this initiative to ensure that families in distressed neighborhoods across the country had access to and could utilize the resources needed to climb out of poverty and build towards economic success.
“Being raised in a single-parent household, I understand the importance of educating the underserved and minority communities on financial literacy and ownership, which is a tool that many are denied in our struggling communities. Today’s conversations were encouraging, and I’m looking forward to seeing how this workshop yields results not only in South Carolina, but across the nation to provide a hand-up towards economic opportunity.”
The Opportunity Zones incentive, which was created by the 2017 Tax Cuts and Jobs Act, was designed to spur economic development and job creation by encouraging long-term investments in low-income communities nationwide. Nearly 35 million Americans live in the more than 8,700 Opportunity Zones across the country.