Categories
EB-5 legislation and regulations, USCIS compliance issues
Date
Mar 04, 2017
Share this article
Author
Kurt Reuss
Kurt Reuss
Kurt Reuss is a registered securities broker who has been specializing in EB-5 since 2012. He offers advice on investment structuring and market conditions related to EB-5 investments.

Related Articles

House Hearing on Investor Visa Reforms (3/8/17)

On March 8, 2017, the Judiciary Committee of the US House of Representatives held hearings on DHS reforming the Investor Visa program.

Read MoreMar 11, 2017
How the 'Account Transparency Requirements' Compare to Custodial Rules for Investment Advisors

We need to accept that there are integrity measures coming and we need to embrace them. Most of the proposals are already best practices

Read MoreJan 20, 2017
Why 'Account Transparency' is Needed

'Account Transparency' protects investor funds during the most fraud laden period, from when EB5 funds are received by the NCE until released into the JCE.

Read MoreJan 03, 2017

Takeaways from USCIS Stakeholder Meeting - March 3rd, 2017

USCIS held a stakeholder meeting today (03/03/2017) in Washington, DC on EB-5 matters.  According to USCIS personnel, over 900 people registered to attend the stakeholder meeting, whether in-person or by telephone.

According to Rana Jazayerli and Bob Cornish of the Phillips Lytle law firm offices in Washington, DC, there were several major “take-aways” from this meeting of crucial importance to those involved in projects connected with EB-5:

• The May 30, 2013 USCIS Policy memorandum on EB-5, which explicitly stated that formal I-924 amendments are not required for a Regional Center to expand its geographic boundaries was represented by USCIS, to the surprise of many, as superseded by their new policy. This policy, effective December 23, 2016, states that any Regional Center wishing to sponsor a project outside of its geographic area must file a formal I-924 amendment application. Further, any I-526 petition filed by an investor based on such a project before USCIS approves the I-924 amendment will be denied on the grounds that it was not approvable when filed.

Some audience members expressly objected, stating that (a) USCIS did not provide adequate notice of this very significant change in policy, and (b) that the adverse impact on Regional Centers, developers and EB-5 investors that have already filed I-526 petitions may be severe. 

While USCIS countered that this policy was clearly expressed in both the EB-5 Policy Manual published in 2016, as well as the instructions to the new Form I-924, the Policy Manual actually does not explicitly state that a I-924 amendment is required to expand the geography of a Regional Center. Rather, it simply omits geography from its list of changes that do not require an I-924 amendment. 

One would think and expect that a change this significant to USCIS policy would deserve and receive far more notice than a simple deletion in a multi-chaptered policy manual. Nonetheless, those involved in EB-5 process should take special notice of this new policy in their current and prospective business planning and investment decisions.

• USCIS will be commencing what it characterized as “drive-by” inspections of Regional Centers, in addition to more formal inspections that would provide guidance on documents for inspection and the timing of such reviews on-site (generally one week).  The number of inspections that will take place in 2017 was represented to exceed 200.

• USCIS has sought approval for nearly 100 additional personnel to handle the processing of applications.  However, the addition of many such personnel is subject to USCIS obtaining an exemption from the federal hiring freeze implemented through Executive Order by the Trump Administration.

• No comments were offered on reauthorization of the EB-5 Program or the upcoming hearings in the House of Representatives on program reauthorization. 

Please contact EB-5 Diligence directly for further guidance and insight on these important issues in EB-5.

Popular Articles

Answers to Common EB-5 Visa Investor Questions

The most frequently asked question about the EB-5 Visa program to get US green card by investment. Answered by the industry's top EB-5 experts.

Read MoreMay 22, 2023
EB-5 Green Card process: from investment to U.S. permanent residency

Learn about the entire EB-5 process from selecting an investment, to filing an I-526, to conditional permanent residency, to filing an I-829 and approval.

Read MoreMay 17, 2023
EB-5 Source of Funds Requirements & Best Practices

A lawful source & path of funds is critical for EB-5 Green Card success. Get expert insight on USCIS requirements & and the use of unsecured loans.

Read MoreMay 15, 2021
EB-5 I-526 petition requirements & recent processing times

Discover EB-5 I-526 petition requirements: cost, “at risk,” source of funds & job creation. Learn why 2021 processing times should improve significantly.


Read MoreMay 13, 2021
What 'Reg S' Means and What EB-5 Issuers and Investors Should Know

Learn about the Reg S meaning, flow back, liability and compliance, the benefits for EB-5 issuers, and the impact of failing to register when required.

Read MoreMay 05, 2021

Do you need further assistance
or have a question?