November 6, 2019
National Real Estate Investor
In an article published by National Real Estate Investor on Nov. 6, Miami partner Glenn Cooper discusses the proposed EB-5 reforms. An anticipated issue with the reforms is likely the change in how targeted employment areas are qualified. What many of us would consider to be not economically distressed parts of big cities had found their way to be qualified as targeted employment areas for EB-5 development projects that include sports arenas, hotels and other facilities,” explains Cooper.
He continues that the number of applications will likely decline after the new rules go into effect. “Developers are already asking — how do we adapt to this new paradigm? Are we going to have to shift our projects to other geographical areas? Are the current ones that we have going to work?” he shares. “There are a lot of issues that the developers in the regional centers and the financial partners are going to have to work through post-Nov. 21.”
The biggest issue for investors is the backlog in receiving a green card. In the U.S. there are green card quotas for different countries. China, for example, has extremely long wait times for EB-5 visas that nearly double that of other countries due to a high volume of applications.
“That has created a chilling effect whereby a lot of investors have chosen not to proceed with EB-5 because of the number of years they would have to wait,” states Cooper. “The hope for many in the industry is that the new rules might also pave the way for improvements that streamline processing and applications, which would go a long way in reviving investor demand for the program.”
For the full article, subscribers may click here.
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