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Reprinted courtesy of Graebel Newslines Magazine, October 2006 issue

Update on America

by Ghadeer Hasan and Ronald Huiskamp

In his book “I’m a Stranger Here Myself,” funny man Bill Bryson describes his experiences on returning to America after having lived in the U.K. for 20 years. From his amazement at the choices one has at supermarkets (“Do we really need 193 different types of cereal?”) to his analysis of our addiction to cupholders, he provides a humorous “outsider’s” perspective on living in the U.S.

Thousands of people moving or returning to the U.S. encounter similar experiences. While many situations may indeed be humorous, even more tend to unsettle and frustrate. Much of this frustration stems from the confusion surrounding the ever-changing rules and regulations impacting those moving to the U.S. Since the terrorist attacks of September 11, 2001, security measures continue to multiply. And unfortunately, these well-intentioned protective measures have inevitably led to increased bureaucracy.

Intended as a reference for those who assist international assignees with relocation to the U.S., this article shares the latest updates on matters such as travel, immigration and social security, as well as an overview of the current rental market. 

Travel to the U.S.

Events like the recently foiled terrorist plot in London instantly changed the rules for what we can take with us on board a U.S.-bound flight. As these rules are constantly in flux, international assignees should make sure to verify the latest Transportation Security Administration (TSA) restrictions. TSA keeps an updated list of Permitted and Prohibited Items on its Web site at www.tsa.gov. Likewise, travelers to the U.S. are advised to check with the airline they are flying.

For assignees traveling to the U.S. prior to receiving their visa, it is important to note the new requirement by the Department of Homeland Security (DHS) regarding passports. Passports issued by certain countries after October 26, 2006 must be “e-Passports.” These new passports include an integrated computer chip that stores biometric information. Passports issued before October 26, 2006 must include a digital photograph and be machine-readable.

Immigration

Earlier this year, the U.S. Senate passed the Comprehensive Immigration Reform Act of 2006. Included in this bill is an increase of the H-1B visa cap (from 65,000 to 115,000 per year). As available H-1B visas have run out every year for the past few years, this increase would be welcomed by U.S. businesses. Before this bill can become law, however, it must first go to a “conference committee” that will work out differences between the proposed law and a similar bill that was passed by the House of Representatives. Given the contrasts between the two bills, resolution is unlikely to occur until after the mid-term elections later this year.

On a brighter note, the U.S. Citizenship and Immigration Services (USCIS - formerly INS) has been working hard the past few years to improve its “customer service.” The USCIS Web site (www.uscis.gov), in particular, provides a lot of online tools and information (for example, regarding the status of a visa petition). USCIS has also been working hard to reduce processing backlogs.

Social Security

Recently, the Social Security Administration (SSA) issued a new rule for obtaining a social security number (SSN). Accompanying spouses of L-1, E-1, or E-2 visa-holders can now apply for an SSN without having to go through the Employment Authorization process first. This is very helpful for obtaining a driver's license more quickly – or, at least, with less hassle – as most states require additional paperwork when the spouse does not have a SSN when applying for a license. Under the new rule, as long as both spouses apply together and can provide a marriage certificate (translated into English if need be), the SSA will accept the application. 

Note: initial feedback from “field experiences” indicates that, unfortunately, not all officers at the SSA are familiar with (or even aware of) these new regulations. Affected assignees should hold their ground and ask for a supervisor, if necessary. 

Rental Housing Market 

Around the country, but particularly in both coastal regions, rental markets are experiencing lower vacancies and higher rents.

After five years of double-digit growth in many real estate markets (particularly those coastal regions), home prices have finally started to level off. At the same time, mortgage rates have been rising. As a result, many would-be buyers are holding off on purchasing a home and opting to rent instead – either because they want to wait and see what will happen to the market next, or because they can’t afford to buy.

Needless to say, this has driven up demand for rental properties. With vacancy rates dropping, rents are going up. 

Further impacting the shortage of rentals in the big cities is the decrease in supply of apartment units as a result of condo conversions that took place over the past few years. 

Currently the most expensive areas in the U.S. to rent are the Greater New York area (including Southern Connecticut and portions of New Jersey); California (pretty much the entire coastal area stretching from San Francisco down to San Diego); and the Washington D.C. area (including Northern Virginia). Some other cities that are on the list of “most expensive to rent” include Boston, Honolulu, and Miami.

As the majority of international assignees are renters, explaining local market conditions will help to calibrate their expectations about the home-finding process. Making sure they are prepared with all the right documents and have funds available to secure a lease is critical to avoiding disappointments in a tight rental market.

Change is inevitable. And in the current global climate, security regulations are bound to increase. It is our job, as “relocation ambassadors,” to stay on top of these changes and make sure U.S. assignees and repatriates are informed and well-prepared for their journey.

About the authors: Ghadeer Hasan is Director of Operations for Full Circle International Relocations. Ronald Huiskamp is Director of Marketing for Full Circle International Relocations. They can be reached by email at ghadeer.hasan@fullcircle.com or ronald.huiskamp@fullcircle.com. Full Circle is a provider of domestic and international destination services.