Opportunity Zones: Updates on Impact Reporting

Last week, Edward S. Smith, Ph.D. attended the Opportunity Zone Policy Summit in Washington, D.C., where government officials, legal experts, and community development stakeholders discussed how this economic development tool promotes outcomes in low-income communities nationwide. Key themes included affordable housing, infrastructure improvement, and community revitalization. An important topic discussed was impact reporting and its potential to inform evidence-based policy aimed at advancing the benefits and original intent of Opportunity Zones.

Earlier this week, the House Ways and Means Committee released draft text for “The One, Big, Beautiful Bill,” providing further insight into proposed annual Opportunity Zone reporting requirements. These include details on Opportunity Fund corporate structure, total asset value, NAICS codes and census tracts for investments, and job creation. The reporting aims to shed light on the number of Opportunity Zone funds operating across the country, the assets they hold, investment locations, and the overall impact of investments in low-income and rural communities.

JTC plays a significant role in providing impact reporting for the Opportunity Fund ecosystem. Founded in 1987, JTC is a global administrator of fund, corporate, and private client services, overseeing more than $410 billion in assets and employing over 2,300 people worldwide. As a leader in specialty financial administration, JTC serves markets requiring complex administration, high transaction security, and stringent compliance.

Since the inception of Federal Opportunity Zones, OZ funds have engaged JTC to produce annual impact reports that are aligned with proposed OZ reporting requirements listed in “The One, Big, Beautiful Bill” which evaluate the community impact of their investments. JTC has developed a unique solution in impact measurement and reporting, leveraging our technology, expertise, and third-party relationships. By also providing third-party fund administration for the investments driving these projects, JTC’s team has the ability to track and report community impact outcomes against projections, offering near real-time insights over the life of the assets.

To evaluate Opportunity Zone investment impact, JTC employs multiple approaches. These include interviewing leadership and key stakeholders, conducting site visits, incorporating industry-standard social impact evaluation frameworks, and utilizing economic impact modeling to assess job creation, income generation, and added economic value.

As stakeholders await the final version of “The One, Big, Beautiful Bill,” JTC anticipates continuing its leading role in Opportunity Zone fund administration and providing best-in-class impact reporting. This reporting will offer valuable insight into investment performance and the tangible impact on communities nationwide. To learn more about JTC’s Opportunity Zone solutions, please contact Edward Smith or Michael Richards.