Question:
How should a regional center lease itself out? What are the best practices for a regional center leasing itself to a developer? What are the issues, pitfalls, and exposures, both with legality and compliance? How does USCIS look upon a regional center that leases itself out? What are the disadvantages to leasing out a regional center?
Answers:
The best practice is to retain an attorney with experience in this type of transaction (like our law firm). A solid memorandum of understanding and operating agreement may be necessary, and you will have to negotiate the fees paid by the project to utilize your Regional Center designation for their project. USCIS should simply consider the new project as just another new project that your Regional Center is covering.
The Regional Center through the assistance of its experienced EB-5 attorney will enter into a Memorandum of Understanding with the project. There will be a need for the RC to use its due diligence in reviewing the EB-5 compliance of the project, its legally correct marketability, and the reviewing the credibility of the project principals. In addition, the RC will review the financial and business viability of the project to determine the predictability of the investors obtaining their unconditional permanent residency in a few years time.