+1-800-997-1228
Questions & Answers

What can I do to avoid project construction delay from jeopardizing my EB-5 application?

I invested in an EB-5 regional center project and have been to my project site twice, but there seems to be very limited progress. The site manager told me they sent all progress reports to my migrant agent. Then I talked to my agent, who said they had not received any reports from my EB-5 project manager. This issue has been going on for a year. What should I do to prevent the sloppy construction management and potential delay of the project from jeopardizing my EB-5 application?

Answers

  • Avatar

    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    This is a tough situation. Construction delays are common and acceptable if for legitimate reasons. You should try and understand the reasons for the delay and determine if they are credible. If not, you have to try and find ways to help move the project forward, maybe together with other investors.

  • Avatar

    Daniel A Zeft

    Immigration Attorney
    Answered on

    You may be able to withdraw your principal of $500,000 from the project and invest your $500,000 in a different EB-5 project.

  • Avatar

    Charles Foster

    Immigration Attorney
    Answered on

    As an EB-5 investor, you would have no more rights than those set forth in your EB-5 documentation for the project, including the private placement memorandum. You are most likely a limited partner and, as such, you have no actual control or authority. The best thing you could do, along with your fellow investors, is to forward your concern to your migration agent and ask for a detailed report as to what, if any, issues the EB-5 project is facing, and why there has been a delay in the construction. I think you should view your agent, who received a substantial commission as your primary representative, but you should also contact the attorney that represented you in preparing filing your EB-5 investor petition. You should also ask your attorney to make inquiry as to the status, and to express your concern as to the lack of progress.

  • Avatar

    Barbara Suri

    Immigration Attorney
    Answered on

    I would need to see a copy of your agreements with both the regional center and with your migrant agent in order to access your situation and respond to your question.

  • Avatar

    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    It seems like you have a communication problem between the regional center and the migration agent. You could retain an experienced EB-5 immigration attorney to represent your best interests with respect to the regional center and make sure you get all project updates. As for the construction progress, there is not much you can do about that. You and your attorney should have a meeting with the regional center to go over the business plan projections/timelines to make sure that the construction does not fall too far behind without good reason. If progress is not made, this could affect I-526 approval and endanger your investment. If you have concerns, your attorney can advise you.

  • Avatar

    Darren A Seary, FRICS

    Due Diligence Analyst
    Answered on

    There is definitely a labor shortage out there, which has negatively impacted many construction schedules; however, you should be provided with progress updates. The regional center should have retained a third-party construction risk management firm to prepare progress reports. The progress reports should just come from the general contractor.

  • Avatar

    Howard Gould

    Securities Attorney
    Answered on

    Among other possibilities, check the offering documents for any schedules or projections on the construction. Ask for the original construction schedules and agreement if you do not have them. Continue to pressure the promoter of your investment for information for these and any related documents, as well as for compliance with the representations. If nothing happens, see if you can get other investors to work with you to get information and compliance. If nothing seems to be working, you may need to hire a lawyer who knows both construction law and EB-5 law and procedures.

  • Avatar

    Jinhee Wilde

    Immigration Attorney
    Answered on

    If you invested through the regional center, you should contact them. As a limited partner of the project, you should be given an annual report on how your investment is performing from the general partner, which is usually the regional center. Accountability from the developer, construction manager and regional center is yours to demand.

  • Avatar

    Vaughan de Kirby

    Immigration Attorney
    Answered on

    You should immediately alert your investment immigration attorney so he or she can look into the matter. This could be a serious issue if the developer or the regional center are intentionally misleading you.

  • Avatar

    BoBi Ahn

    Immigration Attorney
    Answered on

    As long as the requisite 10 jobs were created and the other EB-5 requirements have been met, delay in and of itself does not jeopardize the EB-5 petition.

Add your comment

Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.