In the 2013 State of the Union address, the President announced the creation of “Promise Zones. (PZ)” The goal of these zones is to provide a mechanism for a partnership between the federal government and local governments in order to create jobs, increase economic security, expand educational opportunities, increase access to quality affordable housing, and improve public safety.
On January 8, 2014, the first five zones were announced. They are (1) San Antonio, TX; (2) Philadelphia, PA; (3) Los Angeles, CA; (4) Southeastern KY; and (5) the Choctaw Nation of OK. HUD selected the three urban promise zones and USDA selected the rural and tribal zone.
To be selected, areas had to demonstrate an existing capacity for revitalization activities.
The advantages to an area in being a Promise Zone include:
enabling a partnership between federal government and localities in addressing multiple community problems;
federal staff is assigned to each community to assist in accessing federal benefits;
preference may be given for certain federal programs; and
there may be tax incentives for businesses investing in Promise Zones or hiring residents living in a Promise Zone.
A Promise Zone designation will last for then years, with possible extensions.
A second round of Promise Zones is in the planning stages, with selections announcements expected in earl 2015. A total of 20 Promise Zones is expected by the end of 2016.
Eligible lead applicants for Urban Promise Zone designations include:
-Units of General Local Governments;
-Non-profit organizations applying in partnership with local governments;
-Housing Authorities applying in partnership with local governments;
-School districts applying in partnership with local governments
Eligible lead applicants for rural and tribal PZ designations are:
-local or tribal governments;
-offices/departments within local government;
-non-profit organizations applying in partnership with local governments;
-Housing authorities applying in partnership with local governments or
-school districts applying in partnership with local governments.
Eligibility Requirements:
1. PZ must encompass one or more census tracts or portions of census tracts across a contiguous geography;
2. the overall poverty rate or Extremely low-income rate (whichever is greater) of residents in the PZ must be over 33%;
3. PZ boundaries must encompass a population of at least 10,000 but no more than 200,000 residents; and
4. Local leadership, including the Mayors of jurisdictions in the PZ, must demonstrate commitment.
Once the application deadline passes, there can be no substantive or technical corrections to the application. Application deadlines have not yet been announced for the 2014 Promise Zones.
Local governments, non-profits, and Housing Authorities located in areas meeting the criteria noted above should look into the possibility of applying for PZ designation in the 2014 round. Additional information may be found at www. hud.gov/promisezones.