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One item to consider is that anyone member of the public could nominate their respective census tracts for consideration. Many states did not allow this method of feedback for their nomination process. The biggest flaw in this program is that communities have almost no mechanism for saying ‘yes’ or ‘no’ to a project.
I agree with Jon’s point about community input. Also, Imhotep raises an important concern about community development in this project. The investors are incentivized to go for highest return and not necessarily the most needy neighborhoods. This kind of thinking is very harmful for distressed neighborhoods.
The main attraction of a QOF is the 10 year tax exemption in the new gains. This should push the market to have a longer term outlook than most developers that simply build and sell. An extended investment horizon should allow for better projects in the marketplace and should give developers more options from a product and design standpoint. (We have been stuck in wood construction for quite some time.)