TO:Andrew P. Powers, City Manager
FROM:Alexandra South, Director of Strategic Communications & Public Affairs
DATE:July 7, 2026
SUBJECT: Application for Opportunity Zone 2.0 Designation for Census Tract 71
RECOMMENDATION:
1. Adopt resolution authorizing staff to submit Nomination of Census Tract 06111007100 for designation as an Opportunity Zone.
2. Authorize the City Manager or designee to execute all necessary related documents to support designation and implementation of Opportunity Zone status.
3. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Staff time to prepare and submit necessary documents and the application is included in the Adopted FY 2026-27 General Fund Budget.
BACKGROUND:
The Federal Opportunity Zone (OZ) Program was codified under the Internal Revenue Service code in 2017 to encourage reinvestment into economically distressed communities. The program provides preferential federal tax treatment for capital gains invested in qualified projects located within designated low-income census tracts.
The first OZ census tracts were nominated by each state's governor and certified by the U.S. Department of the Treasury in 2018. These census tracts received OZ
Application for Opportunity Zone 2.0 Designation for Census Tract 71 July 7, 2026
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designation for a 10-year period. In 2025, the Federal Government authorized a new round of designations, commonly referred to as “Opportunity Zones 2.0,” to continue promoting reinvestment in eligible low-income census tracts. A new round of census tract designations known as “Opportunity Zones 2.0” (OZ 2.0) will launch on January 1, 2027.
This designation serves as a powerful signal for private investment, unlocking a national pool of tax-advantaged capital that gives selected communities a distinct competitive edge in attracting investment to underutilized sites, accelerating housing production and stimulating business growth in designated neighborhoods.
The three main federal tax benefits are:
Investors can defer taxes on eligible capital gains if they reinvest those gains into a qualified Opportunity Zone investment within the required timeframe;
If the investment is held for at least five years, investors may receive a 10 percent step-up in basis, which can reduce the amount of original gain subject to tax; and
If the investment is held for at least 10 years, investors may be able to exclude any new gain earned from the Opportunity Zone investment itself.
Each state’s governor decides which eligible areas to nominate. The federal government sets the rules, but states choose which communities to put forward.
DISCUSSION/ANALYSIS:
City of Thousand Oaks Qualified Census Tract
Census Tract 06111007100 (Census Tract 71) meets the OZ 2.0 Program criteria for nomination, as identified by the County of Ventura’s eligibility map. Census Tract 71 is roughly 0.9 square miles and is a geographically compact, higher- density residential and commercial zone which includes the Civic Arts Plaza (Attachment #1). The tract’s median household income of $66,591 is roughly half of the citywide median for Thousand Oaks. Nearly half (48 percent) of all households within this tract have an annual income of under $50,000. Most notably, the tract's poverty rate stands at 18.9 percent, which is more than quadruple the average poverty rate of Thousand Oaks overall.
An OZ 2.0 designation could serve as a powerful financial engine to effectuate the policy goals established by the Thousand Oaks Boulevard Specific Plan in 2011, by directly addressing the funding gaps that typically stall ambitious, multi-year revitalization efforts. This tax-advantaged equity dramatically improves the financial feasibility redevelopment projects, making it significantly easier for developers to absorb the costs of integrating affordable and workforce housing into their designs. This improves the ability of private capital to accelerate housing Application for Opportunity Zone 2.0 Designation for Census Tract 71 July 7, 2026
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production, helping the City meet its state-mandated Regional Housing Needs Assessment (RHNA) targets.
California Process
California’s selection process for OZ 2.0 is structured, highly competitive, and designed from the bottom up. Because the State's statutory cap allows the Governor to nominate only 618 from 2,469 federally-eligible areas, the State has established a rigorous review framework to filter submissions. The selection process is managed through a joint partnership between the Governor’s Office of Business and Economic Development (GO-Biz) and the California Department of Finance (DOF).
GO-Biz invited local jurisdictions throughout California to submit nominations for updated qualifying census tracts within their boundaries. The nomination portal opened June 15, 2026, and will close July 25, 2026. The window for California municipalities to secure these benefits is exceptionally narrow. Adoption of the proposed resolution (Attachment #2) is required to authorize submittal of the OZ
2.0 designation application.
Following its review, the Governor’s Office will select a limited number of nominations for submission to the U.S. Department of the Treasury for certification.
Newly certified OZs would become effective on January 1, 2027, while the original designations are scheduled to expire on December 31, 2028. If selected, City staff will return to City Council for confirmation of the designation and the terms of the OZ 2.0 designation period.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
H. Participate in public-private and multi-jurisdictional opportunities to ensure residents have access to high levels of parks, recreation, education and leisure programs and services.
J. Implement high quality revitalization projects within Thousand Oaks Boulevard and Newbury Road Areas; develop a pedestrian-oriented, viable, and self- sustaining "Downtown;” and continue to support production of long-term affordable housing.
PREPARED BY: Dusty Russell, Economic Development Analyst Mina M. Layba, Legislative Affairs Manager
Attachments:
Attachment #1 – Census Tract 71 Map
Attachment #2 – Resolution
CMO: 460-10\KM\H:\Common\City Council\City Council Items\2026\070726\Opportunity Zone Census Tract 71 Staff Report