Author: Trey Jackson

Roundtable’s Q1 Sentiment Index Shows CRE Execs Optimistic About Market Conditions

Posted on by Trey Jackson

Q1-2021-Sentiment Index Graph - HomePage

Commercial real estate industry leaders continue to acknowledge the effects of the COVID-19 pandemic on various asset classes, while expressing increased optimism about market conditions for the remainder of 2021, according to The Real Estate Roundtable’s Q1 2021 Economic Sentiment Index. The March 3 Index also reports on growth potential for the industrial and multifamily sectors, while hospitality and retail continue to face challenges due to government restrictions and health guidelines.

  • Real Estate Roundtable President and CEO Jeffrey DeBoer stated, “Our Q1 index indicates that despite the extremely challenging past 12 months, industry leaders are optimistic that market conditions are trending in positive way. General supply and demand market balance, functioning capital markets, and low leverage – combined with increased vaccination efforts – have sparked the strong uptick in optimism. Of course all of this is threatened if vaccinations stall overall, or if national policymakers impose new tax or regulatory burdens on the industry.”
  • DeBoer also noted the positive role that real estate has played in combatting the pandemic. “Throughout the pandemic, real estate owners, managers, investors and lenders each have focused on mitigating the impact of the crisis on their residential and business tenants. The industry has restructured leases with tenants under stress, advocated for federal rental and other assistance, helped educate tenants on how to access relief, provided significant reforms to health-related building operational protocols, and issued detailed guidance to ensure safe and effective ways to re-enter buildings,” he said.
  • The Roundtable’s Q1 2021 Sentiment Index registered at 59 – a fifteen-point increase from the previous quarter.  [The Overall Index is scored on a scale of 1 to 100 by averaging Current and Future Indices; any score over 50 is viewed as positive.]. This quarter’s Current Conditions Index of 44 increased 17 points from the previous quarter, while this quarter’s Future Conditions Index of 74, is an increase of 13 points compared to last quarter. The last time the Future Conditions Index registered at 74 was Q3 2010.

    The report’s Topline Findings include: 

  • The Q1 2021 Real Estate Roundtable Sentiment Index registered a score of 59, an increase of 15 points from the fourth quarter of 2020. Respondents continued to express optimism about future conditions; however, the outlook is highly dependent upon asset class and portfolio mix.
  • The industrial and multifamily sectors were cited as having been the most resilient to the global pandemic, and best positioned to emerge successful in a post-pandemic environment. Retail and hospitality sectors continue to face challenges stemming from public health measures and government restrictions.
  • Low transaction volume has resulted in limited visibility into asset valuations over the past year. Among the trades that have occurred, industrial assets have seen their values increase, mirroring the market overall, while multifamily properties are trading at a slight discount to their pre-COVID values.
  • Capital flows within the real estate market are following the sector-specific impacts of the pandemic. Most respondents cited accessible capital markets for high quality assets, particularly in the industrial and multifamily spaces. However, out-of-favor property types and strategies with leasing and/or development exposure are finding it more difficult to secure institutional equity and financing. 

Data for the Q1 survey was gathered by Chicago-based FPL Associates on The Roundtable’s behalf.  For the full Q1 report, visit here and full news release.

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Senate Advances Pandemic Relief Package as President Biden Pushes Infrastructure Plan

Posted on by Trey Jackson

White House with Washington monument in background

Senate Democrats this week advanced an amended, $1.9 trillion pandemic relief package that is expected to pass on a party-line vote – then sent back to the House for final passage before current unemployment benefits expire March 14. (Politico, March 4 and Congress.gov, actions on H.R. 1319)  

  • President Biden, who has championed the COVID-19 legislation, agreed to changes in the package such as restrictions on the use of $350 billion in state and local funding to solidify Democratic support in the 50-50 Senate. (BGov, March 4 and text of the amended Senate bill)
  • CQ reported that financial allocations changes for states and local governments require federal assistance be used for specific purposes, including: 
    • Aid to households, small businesses or nonprofits, or aid to “impacted” industries like tourism, hospitality and travel;
    • Funding government services that reduced due to the pandemic-related hit to tax revenue;
    • “Necessary investments” in water, sewer, or broadband infrastructure. 
  • Senate Majority Leader Chuck Schumer (D-NY) said yesterday, “No matter how long it takes, the Senate is going to stay in session to finish the bill, this week.” (Politico, March 4).
  • Meanwhile, the White House push for a massive infrastructure bill was discussed on March 4 in a meeting with President Biden, Transportation Secretary Pete Buttigieg and a bipartisan group of House members led by Rep. Peter A. DeFazio (D-OR), chairman of the House Transportation Committee.  (Bloomberg, March 4)
  • Biden remarked at the start of the meeting, “We’re going to talk about infrastructure and American competitiveness and what we’re going to do to make sure that we once again lead the world across the board on infrastructure. It not only creates jobs but it makes us a helluva lot more competitive around the world.”  (White House, March 4)
  • The White House infrastructure plan is expected to emphasize climate change, but legislation has not been unveiled nor has its cost or methods to pay for the initiative. (Wall Street Journal, March 4)
  • The critical need for investing in modern and sustainable infrastructure was also the focus of a Feb. 11 White House meeting between Biden, Vice President Kamala Harris, Buttigieg and a bipartisan group of senators from the Environment and Public Works Committee. (Roundtable Weekly, Feb. 12)
  • In a December 16, 2020 letter, The Roundtable and 12 national real estate organizations provided detailed recommendationsto then President-elect Biden and Vice President-elect Harris that included infrastructure funding and modernization as engines to drive recovery and job growth from the economic fallout of the COVID-19 pandemic.

The Roundtable is part of Build by the 4th coalition led by U.S. Chamber of Commerce, which encourages the Biden Administration and the new Congress to pass a comprehensive infrastructure deal by Independence Day 2021. 

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Q1 Survey: Commercial Real Estate Executives Express Optimism About Current and Future Market Conditions

Posted on by Trey Jackson

Current Conditions Index Increases Seventeen Points from Previous Quarter

(WASHINGTON, D.C.) — Commercial real estate industry leaders continue to acknowledge the effects of the COVID-19 pandemic on various asset classes, while expressing increased optimism for both current and future market conditions for the remainder of 2021, according to The Real Estate Roundtable’s Q1 2021 Economic Sentiment Survey released today. The report outlined the potential for growth for the industrial and multifamily sectors, while hospitality and retail continue to face challenges due to government restrictions and health guidelines.

“Throughout the pandemic real estate owners, managers, investors and lenders each have focused on mitigating the impact of the crisis on their residential and business tenants,” said Real Estate Roundtable President and CEO Jeffrey D. DeBoer. “The industry has restructured leases with tenants under stress, advocated for federal rental and other assistance, helped educate tenants on how to access relief, provided significant reforms to health related building operational protocols, and issued detailed guidance to ensure safe and effective ways to re-enter buildings.” DeBoer added, “Our Q1 index indicates that despite the extremely challenging past 12 months, industry leaders are optimistic that conditions are trending in positive way. General supply and demand market balance, functioning capital markets, and low leverage, combined with increased vaccination efforts have sparked the strong uptick in optimism. Of course all of this is threatened to be reversed if vaccinations stall overall, or if national policymakers impose new tax or regulatory burdens on the industry.” 

The Roundtable’s Q1 2021 Sentiment Index registered at 59 – a fifteen-point increase from the previous quarter.  [The Overall Index is scored on a scale of 1 to 100 by averaging Current and Future Indices; any score over 50 is viewed as positive.]. This quarter’s Current Conditions Index of 44 increased 17 points from the previous quarter, while this quarter’s Future Conditions Index of 74, is an increase of 13 points compared to last quarter. The last time the Future Conditions Index registered at 74 was more than a decade ago in Q3 2010.

The report’s Topline Findings include:

  • The Q1 2021 Real Estate Roundtable Sentiment Index registered a score of 59, an increase of 15 points from the fourth quarter of 2020. Respondents continued to express optimism about future conditions; however, the outlook is highly dependent upon asset class and portfolio mix.
  • The industrial and multifamily sectors were cited as having been the most resilient to the global pandemic, and best positioned to emerge successful in a post-pandemic environment. Retail and hospitality sectors continue to face challenges stemming from public health measures and government restrictions.
  • Low transaction volume has resulted in limited visibility into asset valuations over the past year. Among the trades that have occurred, industrial assets have seen their values increase, mirroring the market overall, while multifamily properties are trading at a slight discount to their pre-COVID values.
  • Capital flows within the real estate market are following the sector-specific impacts of the pandemic. Most respondents cited accessible capital markets for high quality assets, particularly in the industrial and multifamily spaces. However, out-of-favor property types and strategies with leasing and/or development exposure are finding it more difficult to secure institutional equity and financing.

DeBoer noted, “The Roundtable remains committed to working with the Administration and Congress to advance bipartisan federal measures that will accelerate the economic recovery and strengthen our resiliency in the event of future pandemics or similar threats: provide direct relief to workers and families, rental assistance for both residential and business tenants, temporary tax incentives to offset the cost of critical health and safety measures implemented by employers, and legal liability safeguards for businesses that clearly define expectations and create much-needed certainty for employers to facilitate a return to work.” 

Data for the Q1 survey was gathered by Chicago-based FPL Associates on The Roundtable’s behalf.  For the full Q1 report, visit here.


House Passes $1.9 Trillion Virus Relief Package; Fed Reports Concerns About CRE

Posted on by Trey Jackson

Congressional Democrats racing to enact President Biden’s landmark $1.9 trillion COVID-19 relief package before unemployment benefits expire March 14 passed The American Rescue Plan Act of 2021 (H.R. 1319) early Saturday morning on a near party-line vote. The massive aid bill now goes to the 50-50 Senate where Democrats cannot afford to lose a single vote. (Associated Press, Feb. 27 and Politico, Feb. 26 and text of the bill)

  • The House bill provides $638 billion in tax cuts, offset by $45 billion in tax increases, representing over 2% of GDP in 2021 and a significant individual income boost for low- and middle-income Americans. While there is no business tax relief in the bill, it includes:
    • $245 billion to extend enhanced unemployment benefits through August;
    • $350 billion in fiscal assistance for States and localities;
    • $170 billion for schools and colleges – and $85B for vaccine distribution.
    • $30.5 billion in grants to mass transit
        
  • Key elements of the bill affecting real estate include:
    • $19 billion for residential rental assistance through Sept. 30, 2027, which adds to the existing $25 billion in rental assistance provided in December’s omnibus legislation;
    • $10B homeowner assistance fund to help prevent foreclosure or eviction due to the pandemic;
    • a new $25B Restaurant Revitalization Fund to provide cash grants to food and beverage establishments.

Fed Concerns on Pandemic & CRE

As the $1.9 trillion relief package made its way through the House this week, Federal Reserve Chairman Jerome Powell testified before congressional committees on the Fed’s semiannual monetary policy report to Congress before the Senate Banking, Housing and Urban Affairs Committee on Feb. 23 and the House Financial Services Committee on Feb. 24.

  • The Fed’s Feb. 19 Monetary Policy Report warned of significant risks to the economy as a result of the ongoing national impact of the pandemic. The report noted, “Commercial real estate prices remain at historically high levels despite high vacancy rates and appear susceptible to sharp declines, particularly if the pace of distressed transactions picks up or, in the longer term, the pandemic leads to permanent changes in demand.”  (Bloomberg, Feb. 19, “Fed Sounds Alarm on Commercial Real Estate, Business Bankruptcy”)

“We don’t have a plan specifically for commercial real estate,” Powell testified. “I will say that we do see a number of sectors of commercial real estate that are under pressure, particularly office [and] hotels … which are directly affected by a pandemic. The best thing that can happen for the commercial real estate sector is [to] … get the pandemic behind us.” (Powell House Testimony)

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White House Requests Information from Businesses on Their COVID-19 Efforts

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The Biden Administration is calling on the private sector to share their unique contributions in combatting the pandemic. In the coming weeks, The White House plans to elevate these examples to show how businesses across the country are doing their part to fight the coronavirus. (New York Times and White House Press Briefing, Feb. 26)

  • For more information, email publicprivatepartnerships@who.eop.gov and provide the name of your organization, location, and 3-5 bullets about your efforts toward defeating the virus. (Download White House document Join Us to Help Defeat COVID-19  for more details).
  • Examples of how commercial real estate owners are offering to open their buildings for COVID-19 testing are provided in a Feb. 24 Bloomberg report (subscription only).
  • The Bloomberg article focuses on the efforts of several companies exploring how to open coronavirus testing centers for the public good. “SL Green Realty Corp. and Rudin Management Co. have expressed interest in offering tests at their buildings. And Vornado Realty Trust and Boston Properties Inc. are among companies that agreed to let the state set up testing centers in select buildings,” according to the article.
  • Companies such as Related Cos. and RXR Realty are noted for having added on-site testing at their properties for returning clients. Roundtable Member and RXR Chairman and Chief Executive Officer Scott Rechler told Blooomberg, “You think to yourself, as a real estate owner and operator, we need to provide testing to help our tenants.”

Roundtable President and CEO Jeffrey DeBoer noted the continuing efforts of Roundtable members in fighting the pandemic. “Commercial real estate owners of buildings small and large have been active in combatting COVID-19 on behalf of their employees, tenants and investors since the early days of the outbreak,” DeBoer said. “These focused efforts will continue to help Americans in towns and cities throughout the nation until the pandemic is defeated and a sense of normalcy returns to the workplace.” 

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Legislation Reintroduced in the House to Change Taxation of Carried Interest

Posted on by Trey Jackson

A group of House Democrats led by Bill Pascrell Jr. (D-NJ), chairman of the House Ways and Means Oversight Subcommittee, introduced the Carried Interest Fairness Act of 2021 (H.R. 1068) on Feb. 16. For taxpayers with a profits interest in a partnership that invests in capital assets, such as stock and real estate, the bill would convert long-term capital gain to ordinary income. (Pensions & Investments and Bisnow, Feb. 16)

  • As currently drafted, the House legislation would apply to dispositions of partnership interests, distributions of partnership property, and sales of partnership assets that occur in tax years ending after the date of enactment. Thus, if the bill became law this summer or fall, and a partnership’s tax year corresponded with the calendar year, the tax increase would apply to gains realized after December 31, 2020. There is no provision that would exempt or grandfather prior partnership agreements, even though the agreements were negotiated based on well-settled tax law as it existed at the time.
  • The top individual income tax rate today is 37%. The current maximum tax rate on long-term capital gain is 20%.  In some cases, an additional 3.8% tax on net investment income also applies. 
  • The six co-sponsors of H.R. 1068 are Reps. Reps. Don Beyer (D-VA), Earl Blumenauer (D-OR), Judy Chu (D-CA), Andy Levin (D-MI), Katie Porter (D-CA) and Tom Suozzi (D-NY). (Rep. Pascrell news release, Feb. 16).  Similar legislation has been introduced in every Congress since 2010.
  • In the Senate, incoming Finance Committee Chairman Ron Wyden (D-OR) outlined his tax agenda during a Jan. 13 call with reporters, including plans to move forward with an increase in the corporate tax rate and major changes in the taxation of individual capital gains. Wyden added he would also pursue raising the current 21% corporate tax rate and change the tax treatment of carried interest (Roundtable Weekly, Jan. 15).
  • During the Presidential campaign, then-candidate Joe Biden did not put forward a carried interest proposal, but rather proposed raising the maximum tax rate on long-term capital gains to create rate parity with wages, rental income, and other sources of ordinary income. 

The Roundtable & Carried Interest

  • The Roundtable has consistently opposed proposals to tax all carried interest at ordinary income rates. Congress likewise has consistently rejected proposals to recharacterize all profits interests as ordinary income. Carried interest is not compensation for services.  General partners receive fees for routine services like leasing and property management.  Those fees are taxed at ordinary tax rates.  The carried interest is granted for the value the general partner adds to the venture beyond routine services, such as business acumen, experience, and relationships.  It is also recognition of the risks the general partner takes with respect to the general partnership’s liabilities, such as predevelopment costs and potential litigation. 
  • “Taxing carried interest at ordinary income rates would discourage the risk taking and sweat equity that drives job creation and economic growth,” said Roundtable President and CEO Jeffrey DeBoer. “It would encourage real estate owners to borrow more money to avoid taking on equity partners, and it would make it more expensive to build or improve real estate and infrastructure, including workforce housing, assisted living communities, and industrial properties, to name just a few. Some development simply won’t happen, especially in long-neglected neighborhoods or on land with potential environmental contamination,” DeBoer added.
  • The Tax Cut and Jobs Act of 2017 created a 3-year holding period requirement for carried interest to qualify for the long-term capital gains rate.

As Congress considers additional economic recovery legislation, The Roundtable and its Tax Policy Advisory Committee (TPAC) will continue working with policymakers, including the Congressional tax-writing committees, to preserve and improve tax rules that promote capital formation and the appropriate treatment of entrepreneurial activity and productive risk-taking.   

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Biden Plans Infrastructure Push as Congress, Agencies Prepare to Investigate the Texas Electric Grid Crisis

Posted on by Trey Jackson

The Biden Administration plans to push for a large-scale infrastructure initiative that takes into account the effects of climate change after Congress finishes consideration of the pandemic relief package. Meanwhile, federal regulators and Congress are preparing to examine the threat that climate change poses to the nation’s electric infrastructure in the wake of last week’s deadly freeze in Texas that stranded millions without power. (Wall Street Journal and Reuters, Feb. 22)   

  • The Biden Administration is expected to reveal details of its infrastructure package soon, as part of its “Build Back Better” agenda to spur economic recovery. (Roundtable Weekly, Feb. 19)
  • The rolling power outages across Texas and the Midwest due to severe winter storms prompted the Federal Energy Regulatory Commission (FERC) this week to open a proceeding to examine how electric grid operators prepare for and respond to extreme weather events. (FERC news release and FERC Insight, Feb. 2021)
  • FERC Chairman Richard Glick said, “The effects of climate change are already apparent and we must do everything we can within our statutory authority to ensure that the electric grid is capable of keeping the lights on in the face of extreme weather.” 
  • The Texas power outages have increased scrutiny in Congress on the need for investments in the nation’s electric grid. House Speaker Nancy Pelosi (D-CA) referred to the blackouts when she announced that the House Energy Committee will be investigating the matter. (Axios, Feb. 19)
  • In the Senate, Energy Committee Chairman Joe Manchin (R-WV) told Politico Pro that he is planning his own review of the power grid issue. (Politico, Feb. 19) 
  • The question of how to fund a national infrastructure effort remains the major challenge for Washington policymakers. ( Roundtable Weekly, Feb. 12)  Senate Environment and Public Works Committee Chairman Tom Carper (D-DE) suggested at a hearing yesterday that a national pilot program should explore a “vehicle miles travelled” tax, while Manchin separately stated that the gas tax paid by consumers at the pump “is not going to do what we need” to build and modernize roads, bridges, and mass transit. (NATSO, Feb. 25)   
  • The Roundtable and the Build by the 4th coalition is encouraging Congress to pass a comprehensive infrastructure package by Independence Day 2021. Last December it also provided recommendations to the new Administration that included infrastructure funding and modernization as engines to drive recovery and job growth from the economic fallout of the COVID-19 pandemic. 

Construction Industry’s Role

  • The leadership role that the construction industry could take in sustainable development was the focus of a Feb. 7 op-ed in Crain’s New York Business by Suffolk’s Executive President of Business Development, Ann Klee. (Suffolk’s Chairman and Executive Officer John Fish is the Chair-Elect of The Real Estate Roundtable)
  • “The construction industry can be part of the solution by working with developers and owners to reimagine the entire building lifecycle and ensure sustainability is incorporated at every stage of the process, from planning, design and material selection to building operation and energy efficiency after construction completion,” the op-ed states.
  • Other recommendations include more efficient management of the consumer supply chain; just-in-time delivery of materials to project sites; and minimizing construction waste.

Ms. Klee concludes that sustainable development will require “smart planning, flawless execution and education across the spectrum of stakeholders to ensure these best practices pay significant dividends, both socially and financially, in the long term.”

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Roundtable-Backed Corporate Diversity Bill Reintroduced in House and Senate

Posted on by Trey Jackson

Legislation requiring public companies to report on the diversity of their corporate boards and executive officers was reintroduced Feb. 23 in the Senate and House by Sen. Bob Menendez (D-NJ), above right, and Rep. Gregory Meeks (D-NY), left, (Bloomberg Law, Feb. 23) 

  • The Improving Corporate Governance Through Diversity Act  would amend the 1934 Securities Exchange Act to require issuers of securities that must file annual reports to disclose in proxy statements:
    • Data on the racial, ethnic, and gender composition of their executive officers, board of directors, and board nominees;
    • Whether any director, board nominee, or executive officer is a veteran; and
    • Plans or strategies to promote diversity at the board and executive levels. 
  • “Without greater diversity in top corporate positions, the U.S. will fail to compete with other leading economies and stall our nation’s progress towards full inclusivity,” said Sen. Menendez. “It’s time corporate boardrooms mirror the rich diversity of our country.” (Menendez news release, Feb. 23
  • “Revealing the gender, racial, ethnic and veteran makeup of these corporate C-suites and boardrooms will not only shed light on the value of diversity, but hopefully encourage corporate shareholders to increase diversity in the highest ranks of their corporations,” said Rep. Meeks. (Meeks news release, Feb. 23)
  • The Improving Corporate Governance Through Diversity Act passed the House in the last Congress but did not advance in the Senate. (Roundtable Weekly, July 31, 2020). Now that the Senate is controlled by the Democrats, the measure has a higher likelihood of passage this session.
  • The Roundtable supports the Menendez-Meeks bill along with other groups including Nareit, NAIOP, International Council of Shopping Centers, Real Estate Executives Council (REEC) and the U.S. Chamber of Commerce. (Meeks news release, Feb. 23)
  • “Diversifying corporate leadership is a critical step to provide equal business opportunities for all Americans, and we urge Congress to pass the Improving Corporate Governance Through Diversity Act,” said Roundtable President and CEO, Jeffrey DeBoer. ”It’s been estimated that $5 trillion can be added to US GDP over the next five years if we close the systemic gaps that have prevented Blacks, Hispanics, and other under-represented groups from fully and fairly participating in our economy.”
  • Reports from PwC and McKinsey & Co. find that diversity in corporate management and leadership drives profitability.  The McKinsey report concludes that “companies with more diverse executives were 33% more likely to see above average profits.” (CNBC, June 12, 2020)
  • The Roundtable’s Equity, Diversity and Inclusion (ED&I) Committee recently issued its mission statement to create equal opportunities for Black Americans and other minorities to prosper in the commercial real estate industry. (Roundtable Weekly, Feb. 12)

The Roundtable is also a “Founding Diversity Partner” in a national program recently launched by the Real Estate Executives Council (REEC) — the leading trade association formed to promote the interests of minority executives in the CRE industry. (Roundtable Weekly, Feb. 5) 

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Biden Policy Eases Funding Constraints on Mass Transit Projects

Posted on by Trey Jackson

NYC bridges

The Biden Administration released a policy letter on Feb. 16 enabling states to more readily access federal grant dollars to help finance mass transit and other large-scale transportation projects. (FTA “Dear Colleague” letter and CQ, Feb. 16).

  • The letter from Acting Federal Transit Administrator Nuria Fernandez reverses Trump-era policy from 2018. The earlier policy restricted the amount of transportation money states could receive from the U.S. Department of Transportation (DOT) through the Capital Investment Grants (CIG) program if the project also received a low-interest DOT loan.
  • The Feb. 16 letter clarifies that DOT loans extended under the Transportation Infrastructure Finance and Innovation Act (TIFIA) or the Railroad Rehabilitation & Improvement Financing (RRIF) program – when repaid with non-federal funds – can count toward the state’s cost-share requirement to also qualify for a “new starts” CIG grant.
  • The Roundtable has long supported the FTA’s recent step. “Loans repaid [by states] with interest are fundamentally different instruments than grants awarded with no repayment obligation,” The Roundtable noted in a 2019 letter to the House’s Transportation and Infrastructure Committee.  The letter added, “Credit-worthy state and local project sponsors who successfully navigate the TIFIA loan process should not be penalized for seeking a CIG grant as a separate, necessary layer in the capital stack to finance a massive transit project.” (Roundtable Weekly, May 3, 2019)   
  • The FTA’s policy change should help large-scale transportation projects of national and regional significance that may qualify for both CIG grants and TIFIA loans.  [See nationwide lists of CIG projects and TIFIA projects.] One prominent example is the New York-New Jersey Gateway Program, a $30 billion modernization of Amtrak’s Northeast Corridor.
  • Senator Bob Menendez (D-NJ) applauded the Biden Administration’s action, noting that the effect of the 2018 policy was to “stall the Gateway project” which includes replacing a 110-year-old bridge and construction of a “new Trans-Hudson rail tunnel.” (Menendez press release, Feb. 16)
  • The Real Estate Board of New York (REBNY) applauded the Biden FTA’s move.  “Restoring access to federal funding for Gateway is an initial but pivotal step toward advancing the project, which will improve mass transit service for millions of commuters, create thousands of good jobs and play a significant role in getting our regional and national economics back on track,” said REBNY President Jim Whelan. (REBNY news release, Feb. 18) 

Movement on Infrastructure

The Roundtable’s recommendations regarding infrastructure financing and permitting will again be featured in our forthcoming 2021 Policy Agenda. The Roundtable is also a member of the  “Build by the 4th”coalition, led by U.S. Chamber of Commerce, which urges Congress to pass a comprehensive infrastructure bill by Independence Day 2021. 

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House Democrats’ $1.9 Trillion Virus Relief Bill Faces Possible Changes in Senate; President Biden Extends Residential Foreclosure Moratorium and Forbearance Program

Posted on by Trey Jackson

U.S. Capitol

House Democrats are quickly advancing a $1.9 trillion coronavirus relief proposal through committees to create a final bill that may face delays in the Senate, but is expected to give President Biden his first major legislative accomplishment by March. (BGov, Feb. 18)

  • The Real Estate Roundtable has consistently urged Washington policymakers to take aggressive actions to combat the pandemic and its economic repercussions. (Roundtable Weekly, Feb. 12)
  • Speaker Nancy Pelosi (D-CA) last week said she expects the House will approve a bill “by the end of February so we can send it to the president’s desk before unemployment benefits expire” on March 14. (CNBC, Feb. 11)
  • The House legislation is being considered under a budget reconciliation process that allows passage in the Senate with only a simple majority – yet certain measures such as a minimum wage increase face opposition from Democratic Senators that could pose delays in the 50-50 upper chamber. (The Hill, Feb. 17)
  • House Majority Leader Steny H. Hoyer (D-MD) told his Democratic colleagues in a Feb 16 letter that “Members should be aware that the House may need to remain in session through the weekend next week to complete consideration.”
  • Anticipating potential changes to the House bill from the Senate, Hoyer added, “During the week of March 8, the House will continue in legislative session. We will be ready to take further action on the American Rescue Plan in the event the Senate amends it and sends it back to us.” (Rep. Hoyer’s Feb. 16 Dear Colleague letter)
  • The Democratic House bill include $25 billion in assistance to renters and their landlords, as well as $10 billion for assistance to homeowners. It would also provide $350 billion for state and local governments, territories and tribal governments to respond to the economic downturn caused by the pandemic.  (“Where things stand on the COVID-19 relief measure,” The Hill, Feb. 17)
  • The two chambers must reconcile differences before a final bill is sent to Biden’s desk.  Comparisons of the Democratic and Republican proposals are available from CNN, The Wall Street Journal, and USA Today.

Foreclosure Moratorium Extended

  • President Biden on Feb. 16 further extended a ban on home foreclosures for Americans with federally backed mortgages through June 30, as well as a residential mortgage payment forbearance program that allows people to pause or reduce payments.  On his first day as president, Biden issued an executive order extending eviction protections for the country’s 44 million rental households until March 31. (USA Today, Feb. 16 and Forbes, Feb. 3 )
  • According to a White House Fact Sheet, the extension benefits 2.7 million homeowners currently in COVID forbearance and extends the availability of forbearance options for nearly 11 million government-backed mortgages nationwide.

The White House statement on the extensions also referred to the pandemic relief package under consideration in Congress. “To bolster these efforts, it is critical that Congress pass the American Rescue Plan to deliver more aid to struggling homeowners. The rescue plan creates a Homeowners Assistance Fund which will provide states with $10 billion to help struggling homeowners catch up on their mortgage payments and utility costs,” according to the Feb. 16 statement.

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