You are here[HOT] No more TEA certification letters by CA for subareas composed of contiguous census tracts?

[HOT] No more TEA certification letters by CA for subareas composed of contiguous census tracts?


By eb5attorney - Posted on 05 May 2012

What does the below bode for TEA certifications for CA based EB-5 projects?

Source: http://business.ca.gov/Programs/EB5Program.aspx

This certification of TEAs is a uniform letter intended to be used by all EB-5 visa applicants on the lower investment level. There will be no customized certification letters issued with the name of the investor, the description and the location of the new enterprise.

This certification of TEAs is an exhaustive list of the areas designated as TEAs by the State of California. There will be no other areas or subareas designated as TEAs. [Emphasis added.]

Investors who received special area designations in previous years may request a renewed certificate if it is for the same investment project, it covers the same subarea, and the then current unemployment data provides a high unemployment rate. Such requests will be handled on a case-by-case basis and renewed certificates might be issued at the discretion of the state.

Seems like only certification letter that will be given, aside from the renewal for the unchanged project, is the below letter:

http://www.business.ca.gov/Portals/0/AdditionalResources/Reports/2011%20...

I wonder what many of over 60 regional centers designated in CA state will do now that the state of California will not issue customized TEA letters for new EB-5 projects other than the standard TEA certification letter? I guess CA state does not want EB-5 related projects, unlike other states. Oh well . . . looks like the great financially strong state of CA is turning away EB-5 projects. :)

http://business.ca.gov/Programs/EB5Program.aspx

I guess the CA state's Governor's Office is reviewing this recent policy change and contemplating making some changes, but I am not optimistic about their correcting this situation quickly.

http://hotellaw.jmbm.com/2012/05/eb-5_lawyer_alert_2_update_on_calif_tea...