Green card loophole boon to NY developers

February 02, 2011 02:00PM

More New York City developers are taking advantage of a program that offers green cards to foreign investors of development projects, according to the Wall Street Journal, as stateside financing remains constricted in the rocky economic climate. The federal program, known as EB-5, grants two-year green cards in exchange for a $500,000 or more investment in a real estate development. The strategy has gained traction among developers like Forest City Ratner, which has received $249 million from 498 investors taking advantage of the program at his Atlantic Yards development. Experts like Evan Zeppos, a spokesperson for developer Jackson Street Management, said that EB-5 is increasingly useful in the down market. "It's an attractive alternative," Zeppos said. "Any developer knows now that for financing, the faucet is still very tight." [WSJ]