Buying real estate for personal use would seem like undermining the spirit of the OZ legislation. I don't think it will fly...
IANAL (or a CPA), but it seems like a good-faith attempt to invest in an OZ should not incur penalties later. Disclaimer: you are taking about the IRS, so logic/fairness may not apply.
Also: why would personal investment be against the spirit of the OZ legislation? It seems to focus on getting the property developed, not why it is developed.
This depends on the penalties that the Service/Treasury aims to collect and their ability to tie-up and/or seize one's assets.
There's a 3rd option: How about the IRS knocking never? I say that in jest as I know you have a 1:3 chance in getting audited just through the normal course of business. I suppose it depends on your risk tolerance.