Opportunity zones havequickly become one of the most popular investment models, and itisn't surprising. The model has the potential to completely avoidcapital gains tax—but with a trade off. Investment has to targetcommunities in need of economic growth and investment. However,does the model actually work in action, and will it help inbringing more affordable housing supply to the market in SouthernCalifornia. Experts say yes.

"We certainly believe that this tax legislation will aid inencouraging more affordable development across SouthernCalifornia," Richard Lara, president and CEO ofRAAM Construction, tells GlobeSt.com. "There aremore than 879 opportunity zones across the region, many of whichare regions where demand for affordable housing is high."

However, it isn't market-rate developers who are scrambling tobuild affordable projects in opportunity zones, but ratherexperienced affordable housing developers. "Affordable developersand investors are well positioned to leverage opportunity zonesbecause they already have experience working in underserved marketswithout this tax legislation," says Lara. "They understand thesemarkets and the legislation aids in making more investment possiblein the space."