RSN Fundraising Banner
FB Share
Email This Page
add comment

writing for godot

How Jared Kushner gets Rich off of the Backs of the Poor

Print
Written by Madeleine Kando   
Sunday, 18 June 2017 22:18

You probably never heard of the ‘EB-5 Visa Investor Program’, but it is a favorite of real estate developers who are looking to fund their projects with low cost capital. The Program was created in 1990 and provides a method for Immigrant Investors (the majority are Chinese) to obtain to obtain United States visas as a path to permanent residence. By investing upwards of 1million dollars into a commercial enterprise, wealthy foreigners and their families are granted green cards, so long as the investor can prove that 10 U.S. jobs have been created as a result of his or her investment. 

Originally intended to benefit poor and rural communities, called a Targeted Employment Area (TEA), where the jobless rate is 150% of the national average, it is now being used and abused by wealthy urban developers like Jared Kushner, the President’s son in law, as a way to finance real estate projects at a below market price. This is exactly how ‘Trump Bay Street’, on the Jersey City waterfront was financed at below market rates, through EB-5 investments. Kushner secured $50 million in funding from about 100 investors from China, South Korea and Vietnam. 

That would already be cause for ethical concern, considering how Trump and hence his chief advisor, Jared Kushner, are railing against the Chinese takeover of our economy, but Kushner wanted to sweeten the deal. His investors, he announced, would only have to pay half of that million dollar to get a path to citizenship.

How do you do that, if your project is located in a booming, water front district like Trump Bay Street? By connecting census tracts that stretch nearly 5 miles and include some of the city’s poorest and most crime-ridden neighborhoods, Kushner (with the help of some local officials), finagled it so that Trump Bay Street was now in a ‘Targeted Employment Area’. His investors therefore, qualified for the lowered minimum investment requirement. This is called gerrymandering, just like they do with legislative districts. Even though it is not against the law, it certainly isn’t ethical.

Since there is a limited amount of EB-5 visas issued, by abusing this loophole, investment money goes to lavish areas that do not need it. Kushner and his friends are taking away badly needed investment from the poorer areas, without giving anything back. Their sole purpose is to provide cheaper financing for the developer.

PBS News hour has a detailed expose on this subject: Kushner family’s real estate dealings land foreign-investor visa back in the spotlight

All of this is enough to make you wonder about this man’s ethical standards, but an in-depth article in the New York Times Magazine by Alec MacGillis: Jared Kushner’s Other Real Estate Empire, shows beyond any doubt that Kushner is nothing more than a predatory capitalist and a slumlord.

Charles Kushner, Jared’s father, who had been in federal prison for tax evasion and witness tampering, expanded the Company’s holdings to commercial and industrial spaces, but the empire’s bread and butter is still low income residential properties.

In 2011 Jared Kushner stealthily targeted thousands of units of working-class housing in the inner-ring suburbs of cities like Baltimore and Pittsburgh. Those were what are called ‘distress-ridden class-B apartment communities’, whose owners are in financial difficulty. This meant that he could buy them for half the value of the mortgages on the properties.

This is what Kushner describes the low-end multifamily market. “It was a lot of construction and a lot of evictions, but the communities now look great, and the outcome has been phenomenal.”

A company called JK2 Westminster L.L.C runs the Baltimore-area housing developments that Kushner bought. They are pursuing tenants over virtually any unpaid rent or broken lease, often for several years, even unpaid rent from before they purchased the property. Repairs are virtually non-existent and McGillis describes at length how tenants have to put up with mold, broken appliances, toilet leaks and raw sewage flowing into apartments.

Do these people know their landlord is the president’s son-in-law? Probably not. Did they vote for Trump? Definitely. Baltimore County was a Trump stronghold.

Kushner’s ugly history in the low-income housing market and his willingness to fleece the poor to build luxury apartments for his own enrichment is a reminder of how this entire administration is based on predatory capitalism that is rapidly dismantling any semblance of a decent society.

e-max.it: your social media marketing partner
 

Comments   

A note of caution regarding our comment sections:

For months a stream of media reports have warned of coordinated propaganda efforts targeting political websites based in the U.S., particularly in the run-up to the 2016 presidential election.

We too were alarmed at the patterns we were, and still are, seeing. It is clear that the provocateurs are far more savvy, disciplined, and purposeful than anything we have ever experienced before.

It is also clear that we still have elements of the same activity in our article discussion forums at this time.

We have hosted and encouraged reader expression since the turn of the century. The comments of our readers are the most vibrant, best-used interactive feature at Reader Supported News. Accordingly, we are strongly resistant to interrupting those services.

It is, however, important to note that in all likelihood hardened operatives are attempting to shape the dialog our community seeks to engage in.

Adapt and overcome.

Marc Ash
Founder, Reader Supported News

 
+4 # Brice 2017-06-21 05:36
Has anyone ever heard Jared Kushner speak in public, or seen him speak in a video? Who is this guy and why is he in our government at a high level - and to do what? As mentioned in the article, he is a as scummy as Trump and his BS Trump University ... and I refuse to believe that real honest voting citizens of the US voted for a guy we all know is a criminal with low character who lies all the time. Meaning, elections are a sham.
 

THE NEW STREAMLINED RSN LOGIN PROCESS: Register once, then login and you are ready to comment. All you need is a Username and a Password of your choosing and you are free to comment whenever you like! Welcome to the Reader Supported News community.

RSNRSN