HCD has just issued a much anticipated memorandum addressing some of the most interesting dynamics of TEAs.  As stated in the memo it addresses:

• New enterprise zones must apply for a Targeted Employment Area.
• A TEA may include a census tract that overlaps with the boundaries of a jurisdiction that is not participating in the enterprise zone.
• Enterprise zones that previously attempted to include a census tract that overlapped the boundaries of a non-participating jurisdiction may re-apply to include this census tract.
• New enterprise zones may use their former TEAs during their conditional stage.
• The use of a former TEA is not impacted by the absence of former enterprise zone partners unless the TEA expired prior to 2006.
• Once approved, a new TEA will become effective on the enterprise zone’s designation date.
• Because of the Department’s policy of allowing former zones to use their former TEAs during their conditional stages, these zones will have their former and new TEAs coincide for the conditional period.