The Real Deal New York

Changes could come to EB-5 investor visa program

The federal program, which has helped fund multiple projects, is up for its tenth renewal this year

January 12, 2015 08:40AM

From left: rendering of 30 Park Place, Senator Chuck Grassley and a rendering of Hudson Yards

From left: rendering of 30 Park Place, Senator Chuck Grassley and a rendering of Hudson Yards

The EB-5 investor program, an initiative that provides non-residents with visas in exchange for investments that create jobs, is up for renewal this year.

With a Republican-controlled Congress, the program — which is popular with investors — might face political obstacles to reauthorization, according to the New York Observer. The EB-5 program has helped fund many real estate projects in the city, including Related Companies’ Hudson Yards.

Silverstein Properties’ 30 Park Place has used foreign investors through the program as well. Forest City Ratner Companies has raised more than $475 million through the program to construct its project near the Barclays Center in Brooklyn. The Durst Organization raised $260 million through the EB-5 program in 2013 and 2014 for two apartment towers.

Congress renewed EB-5 the last nine times it has come up, according to the newspaper. Since the last renewal in 2012, however, the political climate has changed. Chuck Grassley, a Republican from Iowa has replaced fervent EB-5 supporter Senator Patrick Leahy as the head of the Senate Judiciary Committee.

EB-5, which offers a fast-track to a green card for non-U.S. citizens who invest at least $500,000 in approved projects that create jobs, currently allows 10,000 visas to be approved every year. [NYO] Claire Moses

 

  • Fun One

    This article is terrible. You are only stating that someone has been replaced that doesn’t like EB-5. How about an in-depth story on what Chuck doesn’t like about the program follows by actual comments he makes about what he’s going to do to the program to either fix it or make it go away.

  • Sharique Memon

    Actually, it was ICE that first spoke about the fraud and conflict of interest seen in regional centers. ICE, USA’s biggest investigative agency says that all Regional centers usually commit fraud, conflict of interest and violations of securities laws (see http://www.smartbusinessbroker.com/EB5_ICE_fraud_memo.pdf) If you truly wish to learn about why regional centers richly deserve to be booted out of the EB-5 visa program, just go to http://eb5-expert.blogspot.com/ and you will have a totally different opinion. I compared several regional centers with the Direct Investment model and realized that Mohammed Shaikh was speaking the truth when he claimed that regional centers were simply a way to lose time and money, with the USCIS figures showing that most EB-5 visa investors did not get their permanent green cards approved (I-829), and we all know that over 95% of the EB-5 visa petitions were through regional centers so far.

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