Governor Abigail Spanberger announced additional opportunity zones earlier this month, part of a federal effort that gives tax breaks for new development. It’s a program that’s seen parts of Richmond flourish, but it’s not the sole silver bullet needed to address Virginia’s housing needs.
Governor Spanberger’s announcement describes the 153 new Opportunity Zones, recommended by her administration and approved by the federal Department of Treasury in early November as a chance for localities to quote “leverage federal incentives.”
“I look forward to seeing the new investment and economic opportunity this will bring to our Commonwealth,” the governor said in her announcement.
To view a map of all of Virginia’s 153 Opportunity Zones, visit: Virginia's Opportunity Zones
And just ahead of that announcement, in a webcast hosted by RVA757 Connects, Natalie Mason with Richmond-based developer Capital Square, praised the Opportunity Zone program, created in President Donald Trump’s first term, extended under Joe Biden and made permanent during Trump 2.0. She said it’s brought hundreds of billions in investment across the country thanks in large part to deferrals on taxes.
And in Richmond, she said it’s responsible for the rapid growth in the city’s Scott's Addition neighborhood.
“It has brought restaurants, it has brought new residents, it has brought businesses to this neighborhood and it’s a success story because it no longer qualifies,” Mason said of the success leading to delisting Scotts Addition from the program.
Virginia Senator Mark Warner voted to extend the Opportunity Zone program in the past and argued it was a net good for the commonwealth in press availability Tuesday. But he also supported reforms in the future.
“Narrowing and tailoring this more towards business startups in underserved communities," Warner said. "Rather than just oftentimes taking an old apartment building and fixing it up so nicely the residents of the community can’t live there anymore.”
Katherine Jordan has been the Richmond City Council person for the Scotts Addition neighborhood since 2021, so she’s seen just how impactful the federal benefit can be. She also said rezoning and other local efforts are needed to make opportunity zones reach their full potential.
“Money is gonna go where it’s easy, right?" Jordan told Radio IQ. "The zoning is ready, got these opportunity zones, other incentives, that’s what’s going to draw the type of developers you want developing your neighborhoods.”
Whether or not legislation passed in the 2027 legislative session will make it easier for localities to benefit from the program’s expansion remains to be seen.
