Update on RC Renewal, Articles (Retrogression, SEC), New and Removed RCs

Legislative Update
Last week Congress passed a two-year budget deal that raises funding levels and suspends the debt limit until 2017. This accomplishment eases the way for the spending package that needs to passed by December 11 to keep the federal government funded. And it could be good news for the EB-5 Regional Center program, if RC program reauthorization could be folded into the appropriations bill as has happened in the past. But we hear that powerful voices in Congress want standalone legislation with changes and reform, not just another reauthorization, and we aren’t hearing of progress toward making that happen. A couple bills came out in October, but we haven’t seen substantial new contenders – no work product from the negotiations by Grassley, Leahy, Goodlatte, and Issa; no new version of the leading Senate bill S. 1501; and nothing that looks like it has a serious chance of satisfying enough interests to pass. (EB5 Coalition has a bill comparison chart summarizing current offerings.) I am happy to report that IIUSA has just come out with an EB-5 legislative compromise proposal based on consultation with a broad base of stakeholders plus assessment of what could fly on Capitol Hill. For details, see the announcement: IIUSA Delivers Compromise EB-5 Legislative Proposal to Congress. We hope to inspire our representatives to engage in some compromising of their own, and avoid an impasse that would let the Regional Center program expire on December 11.

Articles (China Retrogression, SEC Actions)

• If you’re interested in the visa timeline for China-born investors, see Bernard Wolfsdorf’s article on the IIUSA blog EB-5 Visas and the Chinese Waiting Line. Ten Things I learned from Mr. Charles Oppenheim, Department of State (DOS), Chief, Immigrant Visa Control and Reporting (including the fact that $1,794,259 – almost $2 billion was invested in the U.S. in Fiscal Year 2015)
• Among many helpful articles in the latest Regional Center Business Journal, I particularly appreciated  Lessons Learned from Securities Litigation in EB-5 by Michael Homeier and Osvaldo Torres (RCBJ Vol. 3, Issue 3 p. 26). The authors analyze eight SEC actions affecting the EB-5 industry, with helpful charts summarizing the claims, allegations, important facts, status, and sanctions/penalties in each case.

New and Terminated Regional Centers
Additions to the USCIS Regional Center List, 10/19/2015 to 11/02/2015

• City Connections Regional Center LLC (California must be USCIS error, presumably should be Connecticut, New Jersey, New York, Pennsylvania): www.ccrceb5.com
• Deictic Investment Group LLC (California)
• MCFI Southern California / Arizona (Arizona, California): www.mcfiusa.com
• South Atlantic Coast Regional Center LLC (Florida, Georgia, North Carolina, South Carolina)

Renamed:

• California Golden Pacific Regional Center, LLC (former name U.S. Golden Pacific Regional Center, LLC) (California)

Additions to the list of Terminated Regional Centers

• USA Lifestyles Regional Center (Maine) terminated 10/13/2015
• Spring Hill Homes LP Regional Center (Texas) terminated 10/22/2015