EB-5 Investments to Help Low-Income Areas
As EB-5 investing has become more and more popular in the US, stakeholders are beginning to question how the funds are being used to encourage development in both high and low-income areas. The ways development areas are designated provides insight into the answer to this question.
Some states allow developers to section together multiple neighboring blocks to create a new designated area. Developers then submit their plan to a state agency for qualification. These areas can be statewide or include various counties. The process is typically referred to as gerrymandering. This system helps to bring investment money to designated urban areas and creates employment opportunities as well.
Urban & Low-Income Housing Development
EB-5 investments are one of the most affordable solutions to housing projects available to US cities. Developers have learned to leverage EB-5 funds to finance low-income housing projects. Though the definition of “affordable housing” varies, the U.S. Department of Housing and Urban Development defines it as, “Housing for which the occupant[s] is/are paying no more than 30% of his or her income for gross housing costs, including utilities.” Utilizing EB-5 capital to provide funding to make low-income housing available to struggling Americans is quickly becoming a popular option.
A great example of EB-5 investment funds being used for affordable housing is a project sponsored by the Miami Regional Center. Miami Mayor Tomás Regalado is collaborating with immigration attorneys and developers to determine how to use the city’s EB-5 Regional Center to build affordable housing. If you have a project in mind and feel called to help with affordable housing solutions, retaining the support of EB-5 investment attorneys will be critical in the success of your project. The attorneys at BMK LLP have expertise honed from over 20 years of navigating eb-5 investment initiatives and the procuring EB-5 green cards on clients’ behalves.
Green Space & Mixed-Use Funding
Rural areas like green spaces and mixed-use spaces are also being developed through EB-5 investment money. To gain approval of funds usage, the developer or regional center must prove the location is outside of a precinct that has 20,000 inhabitants or more. In fact, a new plan has been implemented recently to combine housing rentals with green space, retail, wellness facilities, and social activities. It’s a win-win strategy; the investor can meet the EB-5 permanent job requirements, and people in the area experience an improvement in their quality of life. In Seattle, EB-5 funds led to the creation of 115 affordable units at Stadium Place, an office-hotel-retail-residential project.
In one of the poorest sections of San Francisco, the redevelopment of Hunters Point Shipyard, a 495-acre decommissioned Navy base, will also feature low-income living space. Thanks to the several hundred million dollars from individual EB-5 investors, an additional 10,000 square feet of retail and 25 acres of parks and open space will also come to fruition. The secret to a developer’s success is working with honest, experienced EB-5 investment attorneys who specialize in understanding the unique process. Be sure to retain the best in the industry, the team at BMK LLP. Contact us today to learn more.
BMK LLP EB-5 Resources:
- EB-5 Investment Process
- How Do I Get An EB-5 Visa / Green Card?
- E2 Treaty Investor – Helping Foreign Investors Obtain Temporary Visas
- Traditional Direct Program VS Regional Center Program
- Becoming a US Permanent Resident Through the EB-5 Program
- Finding EB-5 Franchise Opportunities
- Regional Center Program for EB-5 Investment
- DHS Update: EB-5 Fee Increases
- EB5 Immigration Visa Timeline