EB-5 Set to Expire, but South Florida Developers Count on Short Extension
0 people likes this
Developer Rodrigo Azpurua has protected his EB-5 projects from potential changes in the federal visa law by limiting his project size and the amount of EB-5 capital used.
The president and CEO of Riviera Point Development Group said he keeps his real estate developments under $30 million and ensures EB-5 funds make up no more than half of his capital stack.
Riviera Point has built 1.2 million square feet of commercial real estate financed with EB-5 funds, a hotly debated program that allows foreign investors to place $500,000 to $1 million in a job-creating U.S. venture in exchange for a green card.
"When your capital stack is supported by legislation that by nature is subject to changes, we as developers have the responsibility to plan accordingly," Azpurua said.
The EB-5 visa investment program is set to expire April 28, but an extension is pending. The cash-for-visa program's growing popularity has been marred by a number of fraud cases in recent years, exposing the need for stricter oversight.