In the U.S., investment in private development has long been limited to wealthy individuals; making the type of crowdfunding that raised $239 million from 3,100 people for a skyscraper in Bogota difficult. New securities laws should change that.
"The practice of crowdfunding real estate is spreading from South America — where Prodigy Network recently raised around $239 million from 3,100 Colombians to build a 66-story skyscraper in Bogotá — to New York, where the developer Urban Muse is hoping to offer a slice of a Brooklyn Bridge Park project to the public," reports Amy Cortese.
"That seemingly simple idea [crowdfunding development] is actually a radical departure from conventional practice, and requires some financial and regulatory gymnastics," she explains. "Under current law, only wealthy 'accredited' investors (typically those with a net worth of $1 million or more) are allowed to invest in private firms."
"But recent changes to securities laws ushered in by the Jumpstart Our Business Startups Act, signed into law in April 2012, will soon make it much easier for the Millers and other new-breed developers to 'crowdfund' real estate."
FULL STORY: Washington Projects Invite the Small Local Investor
The Mall Is Dead — Long Live the Mall
The American shopping mall may be closer to its original vision than ever.
Report: Las Vegas, Houston Top List of Least Affordable Cities
The report assesses the availability of affordable rental units for low-income households.
‘Micro-Apartment’ Trend Underscores Housing Crisis
SROs are making a comeback under a new name as the housing supply remains strained and costs soar.
Indian States Give Women Free Bus Passes
The programs are part of an initiative aimed at helping more women join the workforce and improving access to basic needs.
Study: How to Revitalize Downtown Minneapolis
A proposal calls for a reevaluation of the city’s skyways, a focus on street-facing businesses, and an improved public realm.
Milwaukee Residents Challenge Freeway Expansion
Residents are voicing opposition to a planned expansion of Interstate 94, arguing that the project would eliminate the limited green space in the neighborhood.
City of Yakima
City of Auburn
Baylands Development Inc.
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
City of Birmingham, Alabama
City of Laramie, Wyoming
Colorado Department of Local Affairs
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.