While the Opportunity Zone program was designed to focus capital flows and economic investment into communities that have historically faced economic challenges, long-term investment scarcity and strained local governments have made it difficult for many of the communities most in need to develop and capitalize critical projects. The Opportunity Zone Challenge Program is designed to address that problem by encouraging communities to develop specific plans to guide their pursuit of Opportunity Zone-based investments, state officials note.

“The Federal Opportunity Zone program is a unique tool that communities can use to drive long-term, transformative investment in the most underserved areas of our state, and the NJEDA is committed to helping municipalities and counties benefit from the opportunities it provides,” says NJEDA Chief Executive Officer Tim Sullivan. “The Opportunity Zone Challenge Program will jumpstart community-led revitalization in these areas by providing the resources communities need to catalyze investment in their Opportunity Zones.”

The Opportunity Zone Challenge Program will award five grants of up to $100,000 each—for a total of $500,000—to select municipal or county governments or municipal partnerships of two to five New Jersey municipalities whose applications demonstrate a clear strategic plan to build investment capacity in their Opportunity Zones.

As part of the grant application, applicants must prepare a proposal that includes steps they will take to attract Opportunity Zone investments. Some examples include: preparing a financial or marketing prospectus to showcase an Opportunity Zone's benefits to investors; engaging in feasibility planning for Opportunity Zone-focused development; or considering zoning, code, and regulatory reforms to streamline the approvals process in Opportunity Zones.

Proposals must include specific deliverables that can be fully completed within six calendar months of the date the NJEDA and the recipient execute a grant agreement. As part of the application, applicants must also designate at least one strategic partner whose external expertise they will use to best achieve the Challenge's goals.

The final plans that are developed using the Opportunity Zone Challenge grant funding are expected to be detailed strategic plans that will guide a community's approach for attracting Opportunity Zone investments. With the benefit of these plans being completed, local government entities will be better positioned to implement their strategies based on the community's unique needs and vision for long-term, socially responsible growth.