Our priority in selecting census tracts was to bring new investment to communities most in need of jobs, commercial activity and amenities by leveraging actionable investment opportunities. Our approach to identifying Opportunity Zones had several components, described below.

1.  First Step: Map Options

Determined eligibility: As a starting point, we mapped the statutory indicators (poverty and family income) to determine eligible census tracts. The District of Columbia has 97 eligible Census Tracts, based on the federal definition of low-income tract. While the program does allow for certain contiguous tracts to be designated if they meet certain requirements, we did not consider these tracts due to the number of eligible tracts and the need in those tracts.

Removed outliers: We removed clear outliers, such as Census Tracts that have an unusually high poverty rate due to the presence of universities. We also removed areas that have received a great deal of investment or are already higher-priced markets, such at Columbia Heights, Adams Morgan, and Logan Circle.

Identified options: We then layered on unemployment, commercial land, and District development priorities to ensure that selected tracts aligned with District priorities of reducing employment disparities and benefiting existing residents, and to estimate investment potential in each tract. From there we identified 18 census tracts that could potentially be good options for OZ designation because of their need for investment, absorption potential, and alignment with strategic priorities.

2. Gather Public Input

Survey: In partnership with the LAB @ DC, we created a survey that offered a straightforward way for residents and other stakeholders to weigh in on Opportunity Zone priorities. To make it easy for people with limited familiarity with Census tracts to engage, we identified three clusters of Census tracts that reflected existing economic development priorities. Survey respondents could rank the three options and provide freeform feedback on the base 18 tracts or others.

1. East of the River: exhibited a higher than average need for investment/commercial and retail amenities
2. Retail Corridors: contained retail corridors and are distributed across the city; align with Great Streets program objectives.
3. Creative Industries and Manufacturing: contained large amounts of industrial/commercial land; aligned with the Ward 5 Works study and efforts.

Results: 385 respondents ranked the options and 95 provided written comments. Of the three options, the East of the River option received the most support, with 202 respondents ranking it as number 1, with 103 ranking retail corridors as the top option and 87 choosing the manufacturing option.

ANC and Council Engagement: After the survey closed on March 12, we sought additional input from ANCs and Council Members until April 10. During that period we engaged via email, conference calls and an information session.

3. Analyze Data

We then analyzed additional data: recent investments, investment absorption potential, socioeconomic changes, and other factors at the Census tract level. Other factors considered:

Complementary incentives and investment opportunities: We examined existing incentives that could be paired with Opportunity Zones -- such as DC’s Supermarket Tax Credit and the Great Streets grant program – that could complement Opportunity Zone investments to bring amenities needed by the community. We also examined the location of development projects and other actionable investment opportunities that could help produce needed amenities.

Levers: We also examined avenues for maximizing community benefits from Opportunity Zone investments, such as First Source and CBE requirements (via District projects) and the PUD process. The presence of a District development projects introduces many of these levers

4. Determine DC’s 25 Opportunity Zone Tracts

Based on the feedback and analysis, we made the following adjustments to determine the final 25 tracts:

• Prioritized tracts with the following characteristics:
  • located in Wards 7 and 8
  • has high need for employment
  • contains actionable investment opportunities that would bring desired amenities and jobs
  • contains concrete opportunities to maximize benefits for existing residents (through complementary incentives and projects)
  • has significant public support
• Eliminated tracts already experiencing high commercial investment flows and socioeconomic changes, unless they contained significant opportunity to bring needed amenities and maximize benefits to existing residents.

Census Tract	Ward	Neighborhood
2101	4	Brightwood Park
3400	1	Howard University, LeDroit Park, Pleasant Plains, Park View
6400	6	Buzzard Point
6804	7	Hill East
7304	8	Congress Heights
7401	8	Barry Farm, Poplar Point
7407	8	Fort Stanton
7503	8	Historic Anacostia
7601	8	Fairlawn
7603	7	Naylor Gardens, Fairfax Village
7604	7	Hillcrest, Randle Highlands
7709	7	Twining, Dupont Park
7803	7	Central Northeast
7804	7	Lincoln Heights
7806	7	Deanwood
7808	7	Northeast Boundary, Grant Park
8904	5	Carver Langston
9102	5	Brentwood
9204	5	Edgewood
9601	7	Kenilworth, Eastland Gardens
9602	7	Mayfair, Parkside
9603	7	Benning
10300	4	Shepherd Park, Takoma
10400	8	Congress Heights
10900	8	Bellevue

Overview of Selected Tracts
The District’s designated opportunity zones demonstrate both robust need for investment (that can create commercial/retail activity and jobs) and significant investment opportunities, such as real estate projects and commercial corridors.

• Average unemployment rate: 22.2%, compared to 18.7% for all eligible tracts and 17.4% for non-selected tracts
• Average percentage of population below the poverty line: 32.2%, compared to 27.6% for all eligible tracts and 26.0% for non-selected tracts
• 72.0% are located in Wards 7 or 8, compared to 49.5% of all eligible tracts and 42% of non-selected tracts
• Average commercial density: 20.2%, compared to 16.3% of all eligible tracts and 15.0% of non-selected tracts.