The EB-5 investor program is back in the spotlight after a US legislator proposed using it to address the country’s housing crisis. Senator Ruben Gallego introduced the ‘Building Housing for the American Dream Act’ to leverage the EB-5 investor visa program to address the nation’s housing shortage.
EB-5 Visa Program
The EB-5 Visa program is said to be the fastest route for foreign nationals to become citizens of the United States after obtaining a green card or lawful permanent residency.
To qualify for an EB-5 Visa, foreign investors can make a direct investment or invest in a US business worth up to USD 800,000 if it is located in a Targeted Employment Area or a higher capital amount of $1.05 million in a business in a high-employment area.
Currently, under the EB-5 visa rules, investments made by foreign investors can be done only in ‘infrastructure projects’.
EB-5 Program Amendment
The biggest amendment will relate to inserting a housing project’ in addition to ‘an infrastructure project’ at the disposal of an investor. Senator Gallego’s bill also proposes a lower investment limit of $800,000 for ‘housing projects’. If the bill is passed, foreign investors can invest $800,000 in a ‘housing project’, and become eligible for a US green card.
‘Building Housing for the American Dream Act proposes to amend section 203(b)(5) of the Immigration and Nationality Act to spur an increase in the supply of housing, including low-income housing, in the United States. “The bill leverages EB-5 foreign investment to fill the persistent capital gaps in affordable housing development,” said Ishaan Khanna, President of the American Immigrant Investor Alliance.
EB-5 Visa to US Green Card
EB-5 Visa mandates investment in the US for obtaining a green card, allowed through USCIS-approved Regional Centers and private economic units.
The I-526 petition provides two years of conditional residency in the US through the EB-5 visa process. To transition to permanent residency, an I-829 petition must be submitted within this timeframe, which takes 22-45 months to process. The program also allows concurrent filing for Adjustment of Status, facilitating work authorization and residence in the US, and expedites the green card application within 18 months.
