Last week’s omnibus appropriations bill, which was signed into law by the President December 18th, included provisions that have extended the EB-5 Regional Center program through September 30, 2016.
Though many had hoped that comprehensive reform of the EB-5 program could be passed as part of these year’s Regional Center program renewal, this short-term extension provides the EB-5 industry with a chance to prepare for reform legislation prior to its passage.
Over the past six months, lawmakers have worked with EB-5 industry leaders to draft appropriate integrity measures for the EB-5 industry.
With the attention of Senators Charles Grassley (R-IA) and Patrick Leahy (D-VT) and Representatives Robert Goodlatte (R-VA) and John Conyers (D-MI), reform legislation was drafted for potential inclusion in the omnibus spending bill; however, dissent within the EB-5 industry regarding implementation dates and TEA designations ultimately prevented legislation being finalized prior to the spending bill deadline.
However, industry stakeholders largely agreed on proposed compliance reforms to the EB-5 industry. The anticipated measures would increase reporting, tracking, and documentation requirements while adding additional safeguards to ensure EB-5 projects are in compliance with all relevant securities laws.
EB-5 program reform is expected to remain a legislative priority even with this short-term extension; new compliance requirements will likely be introduced within the next year.
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