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Jared Kushner built a luxury skyscraper using loans meant for job-starved areas
JERSEY CITY — Jared Kushner and his real estate partners wanted to take advantage of a federal program in 2015 that would save them millions of dollars as they built an opulent, 50-story residential tower in this city’s booming waterfront district, just across the Hudson River from Lower Manhattan.
There was just one problem: The program was designed to benefit projects in poor, job-starved areas.
So the project’s consultants got creative, records show.
They worked with state officials in New Jersey to come up with a map that defined the area around 65 Bay Street as a swath of land that stretched nearly four miles and included some of the city’s poorest and most crime-ridden neighborhoods. At the same time, they excluded some wealthy neighborhoods only blocks away.
The tactic — critics liken it to the gerrymandering of legislative districts — made it appear that the luxury tower was in an area with extraordinarily high unemployment, allowing Kushner Companies and its partners to get $50 million in low-cost financing through the EB-5 visa program.
The move was legal, and other developers have used similar strategies in recent years, often aided by state officials who welcome the infusion of cash. But it illustrates how Kushner, who ran his family’s real estate company before he became a senior adviser to President Trump, and his partners exploited a loophole in a federal program that prominent members of both parties say has been plagued by fraud and abuse.
There was just one problem: The program was designed to benefit projects in poor, job-starved areas.
So the project’s consultants got creative, records show.
They worked with state officials in New Jersey to come up with a map that defined the area around 65 Bay Street as a swath of land that stretched nearly four miles and included some of the city’s poorest and most crime-ridden neighborhoods. At the same time, they excluded some wealthy neighborhoods only blocks away.
The tactic — critics liken it to the gerrymandering of legislative districts — made it appear that the luxury tower was in an area with extraordinarily high unemployment, allowing Kushner Companies and its partners to get $50 million in low-cost financing through the EB-5 visa program.
The move was legal, and other developers have used similar strategies in recent years, often aided by state officials who welcome the infusion of cash. But it illustrates how Kushner, who ran his family’s real estate company before he became a senior adviser to President Trump, and his partners exploited a loophole in a federal program that prominent members of both parties say has been plagued by fraud and abuse.
https://www.washingtonpost.com/investigations/jared-kushner-and-his-partners-used-a-program-meant-for-job-starved-areas-to-build-a-luxury-skyscraper/2017/05/31/9c81b52c-4225-11e7-9869-bac8b446820a_story.html
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