Skeletons in the closet? Skeleton in the closet or skeleton in the cupboard is a colloquial phrase and idiom used to describe an undisclosed fact which, if revealed, would damage perceptions. Transparency is key to successful community development, particularly in the age of social media. Facebook groups and keyboard warriors can quickly turn a viable project into a nightmare. Developers and municipalities must take a proactive rather than reactive approach to public information and engagement.
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Shown Above: Opportunity Zones in NC, SC, GA, TN - for details visit HUD Opportunity Zones map .
What’s up with Opportunity Zones?
Opportunity Zones (OZs) are a nationwide program established by the Tax Cuts and Jobs Act of 2017 to incentivize private investment in economically distressed communities. These zones, certified by the U.S. Treasury Department, consist of nearly 8,700 low-income census tracts across all 50 states, the District of Columbia, and five U.S. territories.
The program’s primary goal is to stimulate economic growth and job creation in these underserved areas by offering tax benefits to investors who reinvest their capital gains into designated OZs through Qualified Opportunity Funds (QOFs).
Recent developments:
- The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, made the Opportunity Zone program permanent.
- The OBBBA introduced significant changes, including a decennial redesignation process for OZs, ensuring that designations remain aligned with current economic conditions and community needs. The first redesignation is scheduled for July 1, 2026. Under the revised framework, every 10 years, state governors will propose new qualified opportunity zones, and the Treasury Secretary will certify those zones, with the effective date for those new QOZ designations being on July 1, 2026 (and every 10 years thereafter).
- New regulations will take effect on January 1, 2027, including a rolling deferral mechanism for capital gains invested after December 31, 2026. This offers greater flexibility for investors and could encourage long-term investment in Opportunity Zone projects.
Benefits of investing in opportunity zones:
- Temporary Deferral of Capital Gains: Investors can defer taxes on capital gains by reinvesting them into a QOF within 180 days of the sale or exchange of an asset. The deferral lasts until December 31, 2026, or until the investment in the QOF is sold or exchanged, whichever comes first.
- Step-Up in Basis: If the investment in a QOF is held for at least five years, the investor’s basis on the original investment increases by 10 percent. Holding the investment for at least seven years increases the basis by 15 percent.
- Permanent Exclusion of Capital Gains: Investors who hold their investment in a QOF for at least ten years pay no taxes on any capital gains earned through their QOF investment.
Key takeaways:
Opportunity Zones offer significant tax incentives to encourage investment in economically distressed communities. Recent changes to the program, including permanence and redesignation processes, aim to enhance its effectiveness and promote long-term economic growth. Investors considering Opportunity Zone investments should consult with a tax professional to fully understand the tax benefits and regulations
News and Events
Reinventing Carolina Mills
We have created this COFFEE TABLE BOOK on the reinvention and adaptive reuse of some of Carolina’s most notable mills. Want a hardback copy? Reach out to us here: Cost: $65.00 each. Great client give for the holidays!
Better Know a CRE®: Kathleen Rose, CRE®
Kathleen Rose was featured in the recent Real Estate Issues publication of the Counselors of Real Estate© –
And she attended the Annual Conference in Detroit – a city undergoing a renaissance! See details on LinkedIn.
We have teamed up with award winning Lancer Films
As part of our Prosperity Builder Scorecard (see below) we are creating videos that highlight your community’s quality of life. With the results of the Scorecard, we will curate a promotional video that highlights each of the unique features of your community based on the 12 scorecard categories. See a sample version here that we did for our hometown of Davidson, NC: Prosperity Builder Scorecard 2024
PROSPERITY BUILDER SCORECARD
Prosperity Builder Scorecard™ is a tool we developed in collecting demographic and economic data and evaluating quality of life for attracting talent and investment, and other policy priorities. Get your overall score and a score for each of 12 categories. For more information on how the scorecard works and details on each category, send a note to: info@roseassociates.com and be sure to put SCORECARD in the subject line!
WHERE IN THE CAROLINAS ARE WE?
We have been busy! Whether real estate or economic development related, Rose Associates’ continued work with communities across the Carolinas is focused on one goal – Building Prosperity and Curating Quality of Life:
- Pender County, NC ~ Market Analysis and Prosperity Builder Scorecard to support the County Comprehensive Plan.
- Mebane, NC ~ Community Needs Assessment to support Mebane Comprehensive Plan.
- New Hanover County, NC ~ Market Analysis & Development Strategy to support the County Comprehensive Plan.
- Rolesville, NC ~ Economic Development Plan Update to support the Rolesville Comprehensive Plan.
- Lillington, NC ~ Market, Economic & Land Use Strategies to support the Lillington Land Use Plan Update.
- SAGA/Lee County, NC ~ Prosperity Builder Scorecard to support regional Economic Development Organization.
- Pittsboro, NC ~ Development Strategy for City/County owned properties within the downtown.
Farmland loss due to development is a growing concern for many rural communities. Iredell County, NC ranked 38th in the nation for farmland loss. In 2023 we assisted in developing land use policies and economic development strategies to preserve their farmland while continuing to expand jobs and tourism opportunities. See it here in their adopted 2045 Horizon Plan.
How Can We Help?
Do you have a problem you need to tackle or help to implement a plan in 2025?
With 35 years of experience and expertise in real estate and economic development, we can help make decisions that will expand your fiscal performance and get closer to your vision. Need help with implementation? We provide fractional services for real estate and/or economic development to fill the gap until you hire new staff. Reach out to Kathleen at krose@roseassociates.com if your community wants to know more and put “Help” in the subject line.
Connect with Rose Associates
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