Homeland Security Impacts International Business
In October 2003, the Greater Miami Chamber of Commerce and Florida International University published the following report on how post-9/11 security measures have impacted international business in South Florida.
Download the full report in PDF>>

Proposed INS Rule Will Devastate Resort Real Estate, NAR
The National Association of REALTORS® and other industry groups met with Immigration and Naturalization Service officials September 4, 2002 to discuss proposed changes to the current rules governing the period of time visitors may remain in the U.S. Currently foreigners traveling to the U.S. for business (B-1) or pleasure (B-2) may stay in the U.S. a minimum of 6 months and a maximum of 1 year with provisions for extensions if necessary. To increase homeland security, the proposal eliminates this minimum stay of 6 months and replaces it with a length of time that is determined fair and reasonable to complete the purpose of the visit. When the time cannot be determined, INS will grant a 30-day period of admission. In addition, the maximum time will be reduced from 1 year to 6 months. In comments to the INS, NAR said this change could devastate real estate industry, especially in states with many resort and retirement communities. It is unclear when and if the INS will move forward with this proposal.
Check the Government Affairs Weekly Report for Additional Information.

Immigration Policy: Talking Points
NAR fully supports efforts to enhance security of the United States, especially in the wake of the September 11 attacks. The events have changed the world forever and we are fully supporting of the government’s initiatives to make our country a safer place. We are however very much concerned about recent policy proposals by the Immigration and Naturalization Service (INS), certain aspects of which could be devastating to our economy, while adding very little to further homeland security.

Current rules should be retained for foreigners who own property in the U.S. It is clear that the INS recognizes property ownership as a legitimate reason foreigners visit the United States. This is especially true for retirees who own property in warmer regions such as Florida and who spend the entire winter here.

While the proposed new restrictive rules restricting the length of stay for such visitors do provide means for B-1 and B-2 nonimmigrant visa holders to request extensions of stays for periods of up to six months or longer, the proposed changes would impose an undue burden on foreign property owners, and effectively make ownership of second and retirement homes in the United States much less attractive to such buyers.

The proposal will create tremendous anxiety about future travel to the United States, and will especially affect retirees and students on summer courses or vacations for periods longer than 30 days. By adding an extra burden of proof to the foreign visitor, the rule will discourage travel to this country and investment in property by new investors. Many foreign property owners have already expressed concerns to their real estate professionals, and many are exploring sales of their properties and moving elsewhere where they will not be subject to such restrictions.

The effect of enforcing the proposed rule will be negative in places like Southern Florida and elsewhere, which have been attractive investment destinations for foreign investors as second, vacation, and retirement properties. Not only the loss of real estate-related investment income is involved, but the loss of sales of other goods and services to this group of investors would have a significant negative impact on small business in the area.

Our own analysis indicates the total economic impact of the proposed rule would exceed the threshold of $100 million, making it a major rule. Evidence and data supporting our position can be provided. Based on our understanding that the economic impact of the proposed legislation is far greater than originally estimated and the likely benefits to homeland security would be minimal, we recommend that if the current rules cannot be maintained, that they be clarified so that owning a home in the United States would qualify for a maximum length of stay of six months as well as a condition of granting an extension. Further, any proposed regulation should clearly state what information a foreign national homeowner would have to present in order to qualify for admission and extension, in order to ensure fair and consistent admission requirements for these people.

NAR's efforts so far in 2002 to block changes in limits to Foreigners' visas
The U.S. Immigration and Naturalization Service (INS) has proposed changing the rules regarding the length of stay for nonimmigrants who are here on business or pleasure.

By the Midyear Meetings in Washington, DC in May, this issue had reached NAR's radar screen, however the brief 30-day comment period on the issue had already expired on May 13. Despite the comment period's expiration, letters were circulated at the Midyear Meetings for members to voice their views on the proposed new restrictions. An email that went out to all CIPS Network members on May 8 urging them to write letters (see below). A similar email was sent out to all NAR Cooperating Associations after the Midyear Meetings to let them know that NAR members were fighting the new rules.

NAR has been keeping a careful eye on the issue. So far, the INS reports that the response has been enormous and they are required by law to go through the thousands of letters they have received - some are in favor of the proposal but most are opposed. Until they go through the letters, no change can be made to the current rule. NAR is working to find out if there is anything else members can do to voice their opinion on the proposed changes since the comment period has ended (such as contacting Congress members).

A representative from the INS will be at the International Forum program at the NAR Convention in November to discuss the issue.

If you need any more information or have any suggestions, please feel free to contact NARGlobe.

Following is the original notice dated May 8, 2002 as well as a link to the INS:

The following information was included in today's Internal News Service from NAR. It's of particularly relevance for US members, who are encouraged to send any comments to the US Immigration and Naturalization Service (INS) by 5/13, but non-US NAR members may wish to stay abreast of this issue.

After reviewing the proposed rule (link provided below), US members may submit their comments electronically to theINS. When submitting comments electronically, please include INS No. 2176-01 in the subject heading.

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NAR Urges Members to Comment on Rule to Limit Stay of Foreign Visitors
The U.S. Immigration and Naturalization Service has proposed changing the rules regarding the length of stay for nonimmigrants who are here on business or pleasure. The proposal eliminates the current six month admission period and instead will base the allowed length of stay on the amount of time needed to accomplish the purpose of the trip. This may impact resort and vacation real estate markets as well as other real estate segments. Extensions of up to six may be granted for other reasons, such as if the nonimmigrants own a home in the United States that they visit occasionally or seasonally. NAR encourages members to submit comments to the INS by May 13. For a copy of the proposed rule and where to send comments, go to: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2002_register&docid=02-8927.

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Read about how the state of Florida has been tracking the proposed changes to the INS rules.