Transcript of "EB-5 Updates from Lucid Professional Writing"
EB-5 Updates Suzanne Lazicki does a http://blog.lucidtext.com/ http://blog.lucidtext.com/ great job of helping to keep the EB-5 community Go informed. She has been too busy lately to post much BUT still she finds time when it HOME ABOUT ME EB-5 LINKS EB-5 RESOURCES RC LIST RC REAL ESTATE POSTS COMMENTS really matters. Thanks! NEW REGIONAL CENTERS UPDATES FROM USCIS EB-5 LAW & POLICY EB-5 EVENTS EB-5 RESOURCES EB-5 IN THE NEWS EB-5 STATISTICS Recent Posts What doesn’t work for Regional Centers What doesn’t work for Regional Centers SEPTEMBER 20, 2012 LEAVE A COMMENT New Regional Centers (FL, VA, MD) I’ve been too busy recently for much comment but want to at least link several important documents that deserve RC Reauthorization your attention. EB-5 Visa Stats by Country The USCIS website recently posted three AAO Decisions affirming denial of Regional Center applications. New Regional Center (CA) The decision dated January 18, 2011 affirms that a Regional Center application should not be approved if it Action to Reauthorize RC Program applies for a geographic area without demonstrating how proposed investments will affect that area, requests 7/26 EB-5 Stakeholder Engagement industry categories without giving examples of investments in those categories, and declines to demonstrate that EB-5 Stats up to Q3 FY2012 its “hypothetical” plans are realistic. The case centers on the question of what level of detail ought to be provided at the I-924 stage. The AAO argues that USCIS is right to ask for evidence to support job creation claims, New EB-5 Program Office especially since the agency is under pressure to accept projections approved at the regional center stage when it 5/1 Engagement Mega Executive Summary! is adjudicating Form I-526 petitions. The decision does not preclude basing an application on hypothetical plans, (Tenant Occupancy! TEAs! Bridge Financing! RC but such plans ”must be sufficiently detailed and credible pursuant to 8 C.F.R. §§ 204.6(m)(3)(iv) and (v) if USCIS Sunset! More!) is to approve the regional center proposal…. While a general proposal as contemplated by Congress may include hypothetical plans, they may not rely on investment costs and direct employment numbers that have no basis in New Regional Centers (NV, NY) reality.” I recommend Joe Whalen’s analysis of this decision, the issues involved, and the applicant’s mistakes. Q&A from USCIS on Economic Methodologies The decision dated November 10, 2010 dissects problems with an economic impact report and its attempts to I-924 Processing Times and RFE Template calculate job creation through DOE estimates for number of employees per square foot. If your reports use a similar methodology, read this case and ensure that your economist isn’t making mistakes like the ones that Call with USCIS Economists: Transcript doomed this application. If you haven’t laughed and cried enough after reading the decision itself, read Joe and Thoughts Whalen’s analysis of the November 10 and November 23 decisions. USCIS Chief Economist Speaks The decision dated November 23, 2010argues that USCIS does indeed have the right to hold applicants New Regional Centers (NJ, TX) accountable to the current regulations at 8 C.F.R. § 204.6(m), which have not been overturned by Federal Court or Congress. Repeating a point that has often been made of late: Question for USCIS Economists The regulation at 8 C.F.R. § 204.6(m)(3)(ii) requires the applicant to provide “verifiable” detail as to how the jobs Engagement with USCIS Economists will be created. Nothing in the 2002 amendments to the pilot program suggests that the general proposal need not EB-5 I-829 RFEs: What Does USCIS Look for? have verifiable detail at to how the jobs will be created pursuant to 8 C.F.R. § 204.6(m)(3)(ii). Rather, the Congressional language expresses that the regional center proposal may be based on a general proposal rather May News and Information than a specific project. “General,” however, does not have the same meaning as “vague.” The proposal, while “Operational Guidance” for the Tenant general in nature in that it may cover several potential industries, must still provide verifiable detail as to how the Occupancy Issue jobs will be created in each industry proposed. New Regional Center (TX) Follow Not all frustrated petitioners and applicants take their cases to the AAO; others sue in court. The most prominent New Regional Centers (CA, NV, NY, TX) recent complaint was brought by no less than Ira Kurzban on behalf of a group of investors who had I-526s denied or revoked when USCIS found fault with the investment — an American Life real estate renovation/leasing project in the Follow “EB-5 5/1 Stakeholder Non-Engagement time-honored American Life model. The case is a must-read for existing Regional Centers who are nervous about Updates” Mayorkas Statement on Tenant Occupancy EB-5 Updates Blog at WordPress.com. Theme: Enterprise. how much their prior approvals mean now and how to deal with emerging issues such as tenant occupancy and JOBS Act Implications &new post delivered Get every Other Articles NAICS code requirements. You’ll find a cautionary tale and eloquent arguments that you might try in your defense. to your Inbox. Advice for Amendments Again, I recommend that you keep an eye on http://www.slideshare.net/BigJoe5 if you are interested in the unfolding of this and other EB-5 litigation. RC Application Materials Posted! Join 113 other followers New Orleans Cautionary Tale But don’t abandon Lucid Text altogether, as I have two major additions cooking: a page with collected guidance from Enter your email address recent I-924 RFEs (“the real I-924 instructions,” I’m thinking of calling it, since the official instructions don’t tell you EB-5 Visa Stats as of 03/2012 everything you need to know to get approved), and an informational page on stand-alone/direct EB-5 (as I’ve noticed Sign me up increasing interest in and misinformation about this EB-5 option). Archiveshttp://blog.lucidtext.com/[9/20/2012 11:36:09 PM]
EB-5 Updates Powered by WordPress.com FILED UNDER EB-5 LAW & POLICY Select Month Select Month New Regional Centers (FL, VA, MD) Follow Blog via Email Enter your email address to follow this blog and SEPTEMBER 18, 2012 3 COMMENTS receive notifications of new posts by email. The USCIS list of approved Regional Centers has been updated for the first time in several months with many new entries. Most of the changes reflect addition of repeat entries for existing Regional Centers whose approved areas span more than one state. The changes also include addition of three new Regional Centers. The web offers little Follow information about these centers beyond listings for the corporate entities. If you are involved, please email me and I will update my directory with the web address or other details for your center. We congratulate you for being the elite few not stalled in the RFE process, and are eager to see why USCIS likes you. Florida American Opportunity Regional Center, LLC (Linkedin, Corporationwiki) Virginia Virginia Center for Foreign Investment and Job Creation (Bizapedia) DC, Maryland, and Virginia Westmill Mid-Atlantic Regional Center LLC (Bizapedia) FILED UNDER NEW REGIONAL CENTERS RC Reauthorization SEPTEMBER 13, 2012 4 COMMENTS IIUSA reports that that U.S. House of Representatives today passed S. 3245 (412-3) – which includes a three year re-authorization of the EB-5 Regional Center Program through September 2015. Having been passed by the Senate on August 2, the bill is now on its way to President Obama for signature – likely later this week. FILED UNDER EB-5 LAW & POLICY EB-5 Visa Stats by Country AUGUST 14, 2012 2 COMMENTS The U.S. Department of State website has finally published the Report of the Visa Office 2011. The data is old news by now, but I still enjoy looking at the table that details EB-5 visas and status adjustments by country and type of investment. Now we know that in all the world in FY2011, only one Chinese investor and up to four Dutch took advantage of a Regional Center offering at the $1 million level. During the same period, there were over three thousand visas/adjustments in connection with Regional Center TEA/$500,000 investments. Stand-alone (non- Regional Center) EB-5 investments included a relatively large percentage at the $1 million level, with 230 visas associated with investments outside of TEAs as compared with 152 visas associated with TEA/$500,000 investments. Props to the lone Australian who is the only person in all of Oceania to have gotten an EB-5 visa in FY2011, and who didn’t even add spouse/children to the visa count. The total number of EB-5 visas issued nearly doubled between 2010 and 2011 and is projected to nearly double again in 2012 according to a State Department estimate. The annual limit for EB-5 is approximately 10,000 visas (7.1% of the total 140,000 employment-based immigrant visas.) Changing the visa allocation would require an Act of Congress. The following charts summarize data from the FY2010 and FY2011 reports from the State Department Visa Office as well as the preliminary data for FY2012 reported to AILA in July 2012. EB-5 visas issued and adjustments of status, by region FY 2012 as of FY 2011 FY 2010 06/2012 Asia 4,220 3,035 1,358http://blog.lucidtext.com/[9/20/2012 11:36:09 PM]
EB-5 Updates Europe 211 289 North America 89 111 South America 82 81 45 Africa 46 58 Oceana 1 24 Grand Total (Estimate for FY 3,463 1,885 2012: 6,200) EB-5 visas issued and adjustments of status, by foreign state chargeability Country FY 2011 China-mainland born 2,408 Korea, South 254 China-Taiwan born 122 Iran 117 Great Britain 57 Mexico 53 Venezuela 46 India 37 Russia 30 Vietnam 26 Canada 26 Netherlands 26 Japan 20 Turkey 20 South Africa 19 Italy 16 Brazil 16 Germany 15 Egypt 12 France 10 All other countries 133 Total 3,463http://blog.lucidtext.com/[9/20/2012 11:36:09 PM]
EB-5 Updates FILED UNDER EB-5 STATISTICS New Regional Center (CA) AUGUST 6, 2012 3 COMMENTS The USCIS list of approved Regional Centers was updated today with one new entry. Pacific Proton Therapy Regional Center, LLC (http://pptus.com/) Economic Activity: loans to 3rd party enterprises Geographic Area: Counties of Los Angeles, Orange, Riverside, and San Bernardino Target Industry Categories: Construction, Manufacturing, Healthcare and Social Assistance USCIS Designation Letter issued June 28, 2012 FILED UNDER NEW REGIONAL CENTERS Action to Reauthorize RC Program AUGUST 3, 2012 LEAVE A COMMENT IIUSA has posted welcome news about solid action on the part of the Senate toward re-authorization of the Regional Center aspect of the EB-5 program (see S.3245) . Now let’s see if we can get the House to take up this matter before September 30th, when the current authorization is set to expire. Senate acts to reauthorize EB-5 Regional Center Program for three years IIUSA is thrilled to be present in DC to support Senate action yesterday to reauthorize the EB-5 Regional Center Program for three years via unanimous consent. The House is expected to do the same in September after August Congressional recess. The bipartisan support of this Program should come as no surprise since its explicit purpose is U.S. job creation without adding a dime to the deficit (in fact, it contributes to deficit reduction through tax revenue generation by driving economic activity and adding high net worth individuals to U.S. taxrolls). IIUSA will continue to advocate for prompt action by the House in September to make sure this Program can continue its growing contribution to the U.S. economy, on track for over $2.0BILLION and 40,000 U.S. jobs in FY2012. Congressional action to reauthorize will allow FY2013 to account for even more economic impact. With today’s jobs report ticking unemployment up to 8.3%, it is gratifying to know that Congress understands the importance of reauthorizing an emergent source of reliable, job-creating capital. FILED UNDER EB-5 IN THE NEWS 7/26 EB-5 Stakeholder Engagement JULY 26, 2012 2 COMMENTS Today’s EB-5 stakeholder engagement was very substantive, with the USCIS panelists providing detailed answers to many questions submitted in advance of the call. I encourage you to review my recording if you weren’t able to join the teleconference. Robert Silvers, Senior Counselor to the Director, took an active role in this call and seemed well- prepared and genuinely engaged, upholding the standard set by Director Mayorkas. Rob Silvers discussed process enhancements for EB-5, including the new EB-5 program office, new hires, case specialization, and the forthcoming review board for I-924 applications recommended for denial. He also suggested that a new draft of the EB-5 policy memorandum will be published in the next four weeks, and that movement on the “tenant occupancy” cases can be expected “very soon.” Stakeholder questions addressed in the call included questions related to the requirements for sustaining investment, evidence requirements for I-924 petitions and amendments, metrics for determining acceptable geographichttp://blog.lucidtext.com/[9/20/2012 11:36:09 PM]
EB-5 Updates boundaries for a Regional Center, RFE practices, acceptable evidence of non-EB-5 capital commitments, acceptability of investor returns and distributions during the CPR period, acceptability of investors receiving real estate as a return on investment, counting jobs in business acquisition scenarios, and the issue of deference to prior approvals. For more detail see the detailed summary of the call posted by the EB-5 Center blog, or review my recording of the call. FILED UNDER EB-5 EVENTS, UPDATES FROM USCIShttp://blog.lucidtext.com/[9/20/2012 11:36:09 PM]