Dear Director Jaddou,
As Congress considers the reauthorization of the EB-5 Immigrant Investor Program, we believe
it is essential to ensure that those who utilize the program are creating jobs as promised. We
have learned that one major developer may be falling significantly short of its obligations--
which also raises questions about USCIS' ability to enforce the rules and regulations that govern
As such, we respectfully request that USCIS thoroughly examine the situation and provide
information regarding Relevant Group and affiliates' usage of EB-5.
The EB-5 program makes immigrants eligible for Green Cards if they invest a $1,000,0000, or
$500,000 in a rural area or an area of high unemployment, in a U.S. commercial enterprise and
"plan to create or preserve 10 permanent full-time jobs for qualified U.S. workers."
According to marketing materials for Relevant Hospitality Fund 1, the Relevant Group raised
more than $250 million in Chinese capital to finance a major hotel and entertainment
development in Hollywood, California through the EB-5 program. The fund listed the Dream
Hotel, Selma Hotel, Thompson Hotel and Citizen News as existing assets and included the
Schrader Hotel and Hotel Barclay in the fund's portfolio.
One of the Relevant Group's co-founders said that the $110 million Dream Hotel relied on
funding from 180 "mostly high-net-worth" Chinese investors. If each of the 180 investors is an
EB-5 participant, the Dream Hotel itself would have to create 1,800 jobs to abide by USCIS
rules. The hotel seems to have fallen far short of that requirement.
The Relevant Group told the Los Angeles Times and Beverly Press in 2011 that it was securing
EB-5 funding for the Dream Hotel and that the project would create only 900 jobs. The week
after the hotel opened in July 2017, local reports said the project generated 700 jobs.
None of these figures comes close to the 1,800 job requirement.
We urge USCIS to examine the Dream Hotel project to ensure full compliance with the EB-5
program's requirements. Additionally, for every Relevant Group project that has used EB-5
financing, we ask that you provide the following information:
* How much EB-5 financing the project used, and how many applicant investors financed
* How many jobs the project created and the duration of those jobs.
* The project's anticipated timeline as presented to USCIS and investors and the project's
current timeline, including whether the project has been completed and is in operation.
* How many investors have received a Green Card.