In Spite of Concerns of EB-5 Fraud, Visa Will Finance New Project
Feb. 15, 2018
It was recently announced that the former Navy shipyard complex in New York will be converted for multiple uses. Part of the financing of the planned redevelopment will be obtained through the use of the EB-5 visa program. In spite of the concerns of previous allegations concerning EB-5 fraud, it is anticipated that millions will be raised for the construction.
The redevelopment and expansion of the former shipyard, which is located in Brooklyn, will be conducted in three stages. One of the planned projects has already been completed. The developer has described the project as being mainly a technology center with a third of the space being dedicated to creative uses. The funding will be coming from a variety of tax credits, leasing income and through foreign investors using the EB-5 visa program.
A portion of the completed project has already allowed the development company to pay back some of the early investors. The EB-5 visa provides an opportunity for qualified foreign nationals to invest in projects in exchange for consideration for a green card. The minimum investment ranges from $500,000 to $1 million based on the project itself. The current project has purportedly already secured an estimated $600 million in funding through visa investors.
Due to several notorious cases of EB-5 fraud, the government has toyed with the idea of allowing the program to expire. However, it has been renewed several times with the most recent budget agreement extending the program once again. It is expected that the next renewal will increase the amount of the required investment. While this visa does provide an opportunity for investors to obtain a coveted green card, they are not guaranteed approval. New York residents, who have concerns that they may have been a victim of a fraud and are concerned about their current status, are assured of their rights to seek the assistance of a knowledgeable attorney who can assess their case and provide invaluable assistance in resolving the matter.
Source: constructiondive.com, “Developer plans $2.5B conversion of Brooklyn Navy Yard into tech center“, Kim Slowey, Feb. 5, 2018