Southland Communities Push for New Opportunity Zone Designations With SDA Support
Several Southland municipalities turned to the Southland Development Authority (SDA) in recent weeks for help preparing and submitting Opportunity Zone nominations to the Illinois Department of Commerce and Economic Opportunity as Illinois begins selecting its next round of Opportunity Zones under the federal OZ 2.0 program.
“Even up through yesterday, we had new municipalities that said they were interested in getting our help,” said SDA President Felicia Hardy. “We have not turned anyone down.”
The Opportunity Zone program was created under the 2017 Tax Cuts and Jobs Act. It gave investors tax incentives to reinvest capital gains. And it moved them into low-income communities through what’s known as Qualified Opportunity Funds. Basically, the idea was to create jobs and spark development in the areas that need it most.
By July 2025, the federal government made the program permanent. It launched what is now being called Opportunity Zones 2.0.
States are currently preparing and reviewing nominations for a new round of Opportunity Zones.
That process is now underway.
Municipalities Continue Pursuing Opportunity Zone Investment
The SDA worked one on one with several municipalities over the past few weeks. Organizing submissions. Coordinating support letters. And completing nomination materials.
“We spent three hours in person actually starting to add those nominations to the DCEO website,” Hardy said, referencing the hard work of SDA team members Maeve Phelan and Jennifer Martinez.
The organization also coordinated with regional and government partners throughout the process. Hardy mentioned support from Illinois State Representative Will Davis’ office, Commissioner McCaskill and Kristi DeLaurentiis from the South Suburban Mayors and Managers Association (SSMMA).
The process is competitive. It requires communities to build a strong case for why their census tracts should be considered. Illinois officials have said community input will play an important role in selecting the next Opportunity Zones.
$100 Billion in Private Investment
Nationally, Opportunity Zones have attracted more than $100 billion in private investment since launching in 2017.
Recent research also found Opportunity Zone incentives increased housing production in designated communities to the tune of about 70%. This generated more than 416,000 new residential addresses between 2019 and early 2025.
That is why it’s important for Southland communities. And why local leaders continue pursuing designation. All as they work to attract housing, commercial redevelopment and long-term private investment.
Meanwhile, Illinois continues to review submitted nominations and develop its recommendations for the next generation of Opportunity Zones.
Those new designations are expected to take effect in January 2027.
About the Southland Development Authority
The Southland Development Authority, a not-for-profit economic development organization, is committed to driving equitable and sustainable economic growth in the South Suburbs of Chicago. Through innovative programs, strategic partnerships, and impactful direct investments, the SDA is building a vibrant, inclusive economy that drives wealth growth for individuals, businesses, and municipalities. Combined with the benefits of the South Suburban Land Bank and the Monarch Fund, the SDA serves as a model for regional development.
