How does the partnership distribute income?

Each partnership distributes profits to its investors monthly. The distributions are based on the prior month's gross rental income net of expenses. Investors receive a profit and loss statement with each month's distribution. At the end of the year the partnership issues a summary report along with Internal Revenue Service form K-1. Form K-1 details your yearly income and expenses. Your accountant will require form K-1 to prepare your US annual tax return.

I understand that EB5 has been the subject of litigation. Will this history effect my green card applications?

It should help, since CIS removed conditions from all pre-1998, our partners investors in June, 2006. This sets a precedent for programs, which are full $500,000 investments that create employment in the US.

The history is outlined as follows:

The EB5 visa category started in 1991. Regional Centres started in 1993. Our partner formed its regional centre in 1996 and raised capital from some 40 investors between 1996 and 1998. Several companies competed for investment capital during this period. Most of the companies didn't offer sound investments and were really in business to collect fees rather than to fund an ongoing business. Many investment opportunities didn't raise the full $500,000 investment capital or hire the required number of employees.

CIS (formerly INS) rightly wanted to stop these abuses of the program. In 1998, CIS wrongly applied their revised rules retroactively to people who already had approved petitions. CIS attempted to revoke these visa petitions. This started the litigation.

In 2002, Congress passed a new law to protect the pre-1998 investors. Also, in 2002, in a case commonly known as "Chang" the 9th Circuit Court of Appeals ruled that CIS may not apply their new rules retroactively. In August of 2003, CIS began approving regional centre petitions for the first time since 1998.

In September 2005 and May 2006, BCIS approved all pre-1998 removal-of-condition (I-829) petitions. As a result our partner dropped its lawsuit against the Justice Department. We were able to settle with CIS because all of our investors invested $500,000 in job creating investments. It took 8 years to work through the system and prove the point. During the interim all of the investors were allowed to live in the US as if they had permanent green cards. Other than the delay and the legal expenses, which were paid out of investment income, there was no serious inconvenience to the investors.

We believe that EB5 immigration petitions based on sound investments, for the full $500,000 as prescribed by the rules, with proper supporting documentation, will continue to be approved.

For further information please contact:
Mathew Collins,
Ambler Collins, Eden House, 59 Fulham High Street, London, SW6 3JJ
Telephone: 020 7371 0213
Email: mathew@amblercollins.com

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