Following the successful sale of Continental Villages Phase I and per USCIS regulations, USACRC Project V investors who have not met their sustainment period must have their initial investment remain at risk and be redeployed into another project. The General Partner has identified what it has determined in its sole discretion is a strong and prudent reinvestment project, namely Phases II and III of the Continental Villages Project.
What Is A Sustainment Period?
Currently, EB-5 Program rules prohibit an investor from receiving a return of capital during the investor’s “Sustainment Period,” and require that the invested capital remain invested “at risk” throughout the entirety of that period. The Sustainment Period is the two-year period beginning on the date a limited partner is granted conditional permanent resident status, as evidenced by the expiration date on the limited partner’s conditional permanent resident card and ending two years from that date. If the project company has completed its job-creating activities, and/or has a capital event allowing or requiring repayment of the investment while any of
the partnership’s limited partners remain in their Sustainment Periods, typically the partnership will receive the repaid capital into a “Reinvestment Account” that will reinvest the funds in an alternative at-risk investment. In no case may the partnership repay a limited partner’s capital contribution during the Sustainment Period during which USCIS policy requires an Investor to sustain his or her investment in the partnership. Once the Sustainment Period has ended for all Limited Partners, the General Partner will have the discretion, but not the obligation, to receive back into the Reinvestment Account the funds redeployed into the successor project, and then distribute funds equal to each Limited Partner’s pro rata share from the Reinvestment Account to the Limited Partners.
As described in our original offering documents provided to all investors at the time of subscription, the Partnership is committed to the redemption of investors from being limited partners in the Partnership and the repayment of their capital contributions upon the repayment of the EB-5 loan. Repayment of the EB-5 loan is structured to occur only following adjudication of all USACRC Project V EB-5 investors’ I-829 petitions.
Consulate Interviews Resume for Investors
With the re-authorization of the EB-5 Regional Center Program by the US Congress, consulate interviews for Project V investors have resumed. Ten (10) investors have obtained their conditional green cards, while ten (10) investors are currently awaiting a consulate interview. To date, four (4) investors have successfully scheduled their interviews for July or August. One (1) investor has filed their I-829 petition and the adjudication is expected to arrive in the coming months.
Phase II and Phase III Updates
CRC is pleased to report that Phases II and III of USACRC Project V have obtained the necessary permits for rough grading site work. Phase II comprises of ninety-six (96) 1, 2, and 3-bedroom apartments, sixteen (16) 4-bedroom duplexes, and a clubhouse. Phase III is a 21,000 SF two-story neighborhood retail center. Continental East Development modified the architectural design for Phase III that will better serve the retail center. The entrance was moved to create easier access and visibility. The courtyard fire pit was also relocated to offer better visibility to the retail units. The roof
line was modified to a less complex, more cost-effective design. CED submitted final architectural designs for Phases II and III and is awaiting city approval.
Soil export for both phases is complete, and the grading process has commenced. Site clearing has concluded and weed abatement has begun. Pre-watering will follow, take one week to complete, and the heavy equipment will mobilize on July 11 to start rough grading. Concurrently, the retaining wall contractor will be constructing the walls in cooperation with the grading.
A groundbreaking ceremony is scheduled for Wednesday, July 13, 2022, at 11 a.m. to commemorate the occasion. We expect official city dignitaries to attend and invite all interested investors to celebrate with us. Please keep an eye on your inbox for an invitation with more information.
To learn more about Continental Villages, visit Continental East – Fund III, LLC.