Related has spent more than $1.4M to prevent changes to EB-5

Developer has raised $600M for Hudson Yards through controversial dollars-for-visa program

New York /
Jan.January 10, 2017 11:40 AM

Related Companies doesn’t want the EB-5 program to change and has spent more than $1.4 million in an effort to see that it doesn’t.

The developer has lobbied against proposed changes to the immigrant investor program, which offers green cards to individuals who invest at least $500,000 in U.S. businesses that create jobs. The proposed changes are aimed at curbing certain abuse of the program in gerrymandered districts, where luxury projects are linked to high-unemployment areas that qualify for the program. According to a federal government study released in October, most of EB-5 financing is dedicated to gerrymandered districts.

Since January 2015, Related TRData LogoTINY has pumped more than $1.4 million on immigration-related lobbying — more than double spent by any other user of the EB-5 program, the Wall Street Journal reported. In previous years, the developer didn’t spend any money on immigration-related lobbying.

The developer’s interest in the program comes as no surprise: Related’s Hudson Yards development is a big time beneficiary of the program. For the project’s first phase, Related raised $600 million in EB-5 financing. The developer is reportedly in the process of raising more money through the program.

“Hudson Yards is now an economic engine pumping over $150 million a month in construction costs alone into the economy and creating thousands of jobs,” a Related spokesperson said. “We continue to support a robust expansion of the EB-5 program, greater transparency and stronger oversight measures to ensure the program’s integrity moving forward.”

A key provision of the program is set to expire in April, following several short-term extensions. Developers are hopeful that President-elect Donald Trump will implement a long-term extension, though he hasn’t publicly weighed in on the subject since winning the election [WSJ] — Kathryn Brenzel


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)
Related is the latest developer to target the Rockaways
Related is the latest developer to target the Rockaways
Facebook CEO Mark Zuckerberg and Hudson Yards (Credit: Getty Images and Wikipedia)
Facebook close to finalizing Hudson Yards office deal: report
Facebook close to finalizing Hudson Yards office deal: report
The door at 553 West 30th Street, Related's Stephen Ross and 15 Hudson Yards (Getty, Google Maps)
Judge rejects “poor door” lawsuit at Related’s 15 Hudson Yards
Judge rejects “poor door” lawsuit at Related’s 15 Hudson Yards
Related Companies' Stephen Ross andb Furnished Quarters' Gary Brown and Steven Brown (Related, Furnished Quarters, Getty)
Related claims short-term rental provider owes it millions
Related claims short-term rental provider owes it millions
From left: Related's Stephen M. Ross and Bruce A. Beal, Jr. (Photo Illustration by The Real Deal with Getty Images, Related)
“Violations of unprecedented scope and severity:” NFL fines Stephen Ross for tampering with Tom Brady
“Violations of unprecedented scope and severity:” NFL fines Stephen Ross for tampering with Tom Brady
From left: Sterling Equities' Fred Wilpon, Mayor of New York City Eric Adams, Related Companies' Stephen Ross, NYCFC's star Maxi Moralez (Getty Images)
Queens soccer stadium headed for Sterling Equities, Related land: report
Queens soccer stadium headed for Sterling Equities, Related land: report
From left: MSG's James Dolan and Related’s Steve Ross with Madison Square Garden
Dolan rejected Stephen Ross pitch to move MSG
Dolan rejected Stephen Ross pitch to move MSG
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...