US investment-for-PR programme ends up funding luxury projects

New York

A FEDERAL programme meant to encourage investment in the United States from wealthy foreigners is increasingly supporting large luxury real estate projects, not the development in the rural and downtrodden districts that some say were the original targets of the programme.

With billions of dollars flowing in, mostly from wealthy Chinese, the programme faces an uncertain future. In September, Congress reset the expiration date on parts of the so-called EB-5 programme to Dec 9.

The programme grants permanent residency (PR) in the US to those who are willing to immigrate and invest US$500,000 in a business that creates at least 10 jobs. Many of the projects that have received money have been in real estate, though investments have also go…