What are the best practices in a regional center leasing itself to a developer? What are the issues, pitfalls, and exposures - legal and compliance? How does USCIS look upon a regional center that leases itself out?
USCIS is concerned with compliance with its rules and regulations, and with fighting fraud and abuse. Transparency from the regional center and project is very important, including in lease scenarios.
The EB-5 policies allow an approved regional center to lease out its designation to an a EB-5 compliant project. The regional center best practice is to review the compliant documents of the project to ensure legal compliance and credibility of the representations.
In general, USCIS is not against a regional center that leases itself out. USCIS will evaluate the project just like other projects. Both parties need to conduct due diligence. If you are the lessee, you should pay attention to USCIS requirements. You should sit down with an experienced EB-5 attorney for further advice.
Regional Centers (RCs) do regularly lease themselves out and the USCIS continues to allow the practice. In determining the issues, pitfalls and both legal and compliance exposures, you have to look at both the leasing agreement and practices of the specific RC that you want to deal with. If you are considering leasing an RC, make sure you employ the service of an EB-5 attorney and pay particular attention to the details of your lease agreement before investing time and money on a lease.
