The City of Birmingham is positioning its neighborhoods and commercial corridors for new economic investment through Opportunity Zone 2.0, a renewed federal initiative designed to encourage private investment in historically underserved communities.
“This is an opportunity to attract new investment to communities that have historically been overlooked and unlock possibilities for transformative growth,” said Mayor Randall L. Woodfin. “But realizing that potential requires more than tax incentives. It requires partnering with competitive development teams and identifying projects that deliver lasting value. We want to attract visionary developers, locally and nationally, who can help create jobs, expand housing opportunities and build wealth in ways that directly benefit Birmingham residents.”
Following the U.S. Department of the Treasury’s November 5 announcement of the new Opportunity Zone designations, Birmingham is working to connect experienced developers and investors with opportunities throughout the city.
Opportunity Zones are federally designated census tracts that offer tax incentives to encourage private investment in eligible businesses and real estate projects. The updated program, known as OZ 2.0, takes effect January 1, 2027, and establishes a new 10-year designation cycle.
For Birmingham, the opportunity is significant. Areas identified through the region’s Opportunity Zone application include historic and emerging commercial districts, redevelopment sites, and residential communities with potential for new investment.
Among the Birmingham areas identified are Woodlawn, Norwood and the former Carraway Hospital campus, downtown Birmingham, Ensley and the historic Ensley Works site, Smithfield, Titusville and other strategic corridors. The full list of sites can be found here:
https://www.cdfifund.gov/opportunity-zones
The regional application was submitted in partnership with the Birmingham Business Alliance (BBA) and includes eligible communities beyond Birmingham, creating opportunities to strengthen economic development throughout Jefferson County.
Mayor Randall L. Woodfin said the initiative provides an opportunity to rethink how private capital can support Birmingham’s economic future.
The Department of Innovation and Economic Opportunity will help connect interested developers and investors with potential opportunities throughout the designated areas.
Potential investment opportunities include mixed-use developments, commercial and industrial redevelopment, housing, adaptive reuse of vacant or underutilized properties, business development and projects that support workforce and neighborhood revitalization.
“Opportunity Zones 2.0 give us another tool to help move investment into communities with significant potential,” said Coreata R. Houser, director of the City’s Department of Innovation and Economic Opportunity. “We are interested in working with experienced developers who understand how to use this tool strategically and who are committed to projects that create sustainable economic opportunities for the communities where they invest.”
While Opportunity Zone financing is a complex investment tool that requires specialized knowledge and qualifying investment structures, it can offer meaningful advantages for experienced developers and investors. The City’s focus is on helping identify competitive partners and projects that align private investment with community priorities.
The goal is straightforward: turn investment opportunities into tangible economic progress for Birmingham residents.
Developers and investors interested in exploring potential opportunities in Birmingham are encouraged to connect with the City’s Department of Innovation and Economic Opportunity via
ieo@birminghamal.gov.
