News Type: Roundtable Weekly

Real Estate Industry Fights to Preserve Business Property Tax Deductions amid GOP Tax Negotiations

Posted on by Abigail Grenadier

As House and Senate Republicans work to develop the details of their tax legislation, the real estate industry is mounting a unified defense against possible limitations on the deductibility of state and local business property taxes. (BisNow, March 14)

Why It Matters

  • Last week, The Real Estate Roundtable (RER) and sixteen other national real estate organizations wrote to members of the House Ways and Means and Senate Finance Committees urging them to oppose any proposal that would cap or eliminate the deductibility of state and local business property taxes.  (Roundtable Weekly, March 7)

  • The House Ways and Means Committee is exploring reductions to business-related state and local tax deductions—including property taxes—as part of its effort to offset the costs of a broader GOP tax package. (PoliticoPro, March 11)
  • At a White House meeting on Thursday between President Trump and Senate Finance Committee Republicans, Sen. Ron Johnson (R-WI) said Senators raised corporate SALT as a potential offset.  Several Senators reportedly “pitched Trump on repealing the corporate state and local tax deduction.”  (CQ, March 13; Politico, March 13)
  • A cap on the deductibility of property taxes paid by U.S. businesses could have devastating consequences for commercial real estate owners, developers, and investors nationwide.

  • State and local property taxes represent 40% of the operating costs of U.S. commercial real estate, a greater expense than utilities, maintenance, and insurance costs combined.

  • The potential tax change could reverse the benefits of the 2017 Tax Cuts and Jobs Act (TCJA) and Section 199A, potentially raising effective tax rates on real estate to 1970s-era levels near 50%.

  • With elevated interest rates, rising insurance premiums, and increased operational expenses pressuring property owners across asset classes, industry advocates argue that eliminating the deduction would only deepen existing challenges, resulting in “job losses, pressure on rents, stress on the banking system, and reduced housing construction.” (BisNow, March 14)

  • RER urges members to amplify this message to their representatives in Congress. 

Tax Talks

  • Both chambers had a busy week meeting with committee members and Trump administration officials to discuss the overall framework for their respective tax agendas.

  • House Ways and Means Committee Republicans met with Treasury Secretary Scott Bessent on Monday to review tax options, while Senate Finance Committee members separately convened to discuss their approach, revealing significant differences in timeline and strategy. (PoliticoPro, March 10)
  • Ways and Means Committee Chairman Jason Smith (R-MO) has already said that the instructions laid out in the House-approved budget resolution won’t allow for a permanent extension of Trump’s tax cuts, but would allow for an eight- to nine-year extension. (Politico, March 10)

  • GOP lawmakers from high-tax states, including New York, New Jersey, and California, continue to demand that any final tax legislation include lifting or fully repealing the $10,000 SALT cap for individual taxpayers. President Trump has expressed support for repealing the SALT limitation.

  • House and Senate Republicans have yet to reach an agreement on a budget plan that would set the framework for Trump’s legislative agenda.

  • During the White House meeting with Senate Finance Republicans, Trump raised his Gold Visa card concept as a way to pay for the package, along with tariffs and other options.  (PoliticoPro, March 13)

Looking Ahead

  • House Republicans aim to pass legislation extending Trump-era tax cuts by Memorial Day, while Senate Republicans suggest an August timeframe might be more realistic, with Sen. John Cornyn (R-Texas) noting “there’s no consensus” in the Senate. (Politico, March 10)

RER will remain actively engaged with lawmakers, reinforcing the message that preserving full deductibility of business property taxes is essential to protecting jobs, promoting investment, housing affordability, and ensuring continued economic stability nationwide.

Affordable Housing in Focus on Capitol Hill

Posted on by Abigail Grenadier

As the nation continues to grapple with housing affordability challenges, recent developments in Washington signal increased attention on this critical issue. From new leadership at federal housing agencies to congressional hearings focused on supply constraints, policymakers are exploring multiple avenues to address the ongoing crisis.

Congressional Focus on Housing Supply Constraints

  • This week, the Senate Banking, Housing and Urban Affairs Committee held a hearing titled “Housing Roadblocks: Paving a New Way to Address Affordability,” which explored various factors limiting housing supply and driving up costs. (Watch Hearing)
  • Discussions during the hearing were centered on the challenges of restrictive zoning laws, delayed permitting, land use policies, and escalating material costs.

  • Last week, the House Financial Services Subcommittee on Housing and Insurance held a hearing on “Building Our Future: Increasing Housing Supply in America” which focused on strategies to address the housing shortage. (Committee Memo, March 4)

  • Both Republicans and Democrats on the subcommittee agreed that restrictive zoning laws, high construction costs, and regulatory barriers at the state, local, and federal levels are exacerbating the housing crisis. (CREFC, March 11)

  • Throughout both hearings, solutions for addressing these challenges echoed RER’s housing policy recommendations of simplifying permitting and zoning processes, promoting modular housing construction, strengthening public-private partnerships, and expanding housing incentives such as the low-income housing tax credit (LIHTC).

Pulte Confirmed as FHFA Director

  • On Thursday, the Senate confirmed Bill Pulte as the new director of the Federal Housing Finance Agency (FHFA) in a 56-43 vote, marking one of the few Trump cabinet nominations to receive some bipartisan support. (Politico, March 13)
  • RER wrote to Senate leadership this week in support of Pulte as director of FHFA. “His knowledge and experience will prove to be critical in overseeing the Government Sponsored Enterprises—Fannie Mae and Freddie Mac, the key financing sources for America’s housing industry—as well as the 11 federal home loan banks, who play a critical role in investing in local needs including housing, jobs and economic growth,” the letter stated.
  • Speaking with CNN, Pulte said that privatizing the government-sponsored enterprises (GSEs) is not the Trump administration’s immediate priority. Instead, he stressed the need for a “significant study” on the potential impact on mortgage rates before any such move. (GlobeSt. March 14)

  • “Fannie and Freddie shouldn’t be in conservatorship forever. But it’s critical to ensure any discussion about exiting conservatorship needs not only to ensure safety and soundness but how it would affect mortgage rates.” (CNN, March 13)

Opportunity Zones Study

  • The study found that the OZ incentive has nearly doubled the number of new housing units in these areas, generating more than 313,000 new residential addresses between 2019 and 2024.
  • The authors also found that this new housing came at a low fiscal cost per unit, suggesting that OZs are proving to be one of the most effective tools in the federal housing policy toolkit.

  • RER has long championed (OZs) as a transformative tool to stimulate economic growth and increase the supply of affordable housing in low-income areas. By creating tax incentives for investments in designated low-income census tracts, OZs have channeled investment into areas most in need.

  • RER has called on Congress to improve and extend the program, which is set to expire along with other key provisions of the TCJA at the end of this year.

Sustained recovery and resolution of the affordability crisis will require continued policy reform, increased housing supply, and greater collaboration between the public and private sectors. RER remains committed to working with policymakers to implement solutions that address both immediate needs and long-term challenges in the housing market.

Lawmakers Navigate Action-Packed Week on Capitol Hill

Posted on by Abigail Grenadier

Contentious policy discussions surrounding the economy, immigration and government spending continued this week in Washington as lawmakers work towards an agreement on a federal spending bill.

State of Play

  • The House narrowly approved a continuing resolution (CR), on March 11 to keep the government funded through September. Speaker of the House Mike Johnson (R-LA) managed to largely keep his GOP conference united, passing the measure days ahead of a possible government shutdown. (CBS News, March 11)
  • To prevent a shutdown, the Senate must approve a measure before the current funding expires on Friday night. Republicans will require support from at least seven Democrats to reach the 60-vote threshold necessary to overcome a filibuster. (Financial Times, March 12)
  • Senate Minority Leader Chuck Schumer (D-NY), told his caucus privately on  Thursday, and later in a floor speech, that he would vote to advance a GOP-written stopgap to fund the government through September. While he described the Republican spending bill as “very bad,” he emphasized that the “consequences of a shutdown for America would be far worse.” (Politico, March 13)

National Flood Insurance Program (NFIP)

  • Included in the CR package, is the extension of The National Flood Insurance Program (NFIP).
  • If enacted, this will be Congress’s 32nd  short-term extensions of the NFIP. The Roundtable has been a long-standing supporter of a long-term reauthorization of the NFIP with appropriate reforms.
  • A long-term reform and reauthorization of the NFIP is essential for residential markets, overall natural catastrophe insurance market capacity, and the broader economy.

  • RER, along with its industry partners, will continue advocating for targeted policy solutions that can help alleviate increased insurance costs for housing providers nationwide. (Roundtable Weekly, Feb. 28)

Inflation Reduction Act

  • As Congressional Republicans look to offset trillions of dollars in proposed tax cuts in their budget bill, Biden-era provisions from the Inflation Reduction Act (IRA) have sparked debate. (Politico, March 10; Brookings, Jan. 6)
  • This week, a group of 21 House Republicans led by Rep. Andrew Garabino (R-NY), whose districts have benefited from billions in new investments due to IRA incentives, argued that energy tax credits and provisions for manufacturers and builders are essential in achieving President Trump’s goal for the U.S. to be “energy dominant”. (Politico, March 10)
  • In a letter to President Trump, the group asserted that eliminating certain credits could mean “drastically higher power bills for American families” and emphasized that “many credits were enacted over the course of a 10-year period, which allowed energy developers to plan with these tax incentives in mind.” (Reuters, March 11)

Immigration – Gold Card Proposal

  • On March 11, RER sent a letter to Commerce Secretary Howard Lutnick, expressing support for the “Gold Card” proposal. This concept aims to bolster U.S. economic growth, address the national deficit, and strengthen America’s competitive edge in the global marketplace.
  • The letter reiterated support for the existing EB-5 program, which allows foreign investors to obtain a green card by making substantial investments that result in jobs for American workers and funding for large-scale developments.
  • As RER’s letter emphasized, pairing the “Gold Card” program with the EB-5 framework offers a powerful, dual-track approach that will reform America’s visa system, attract top global talent, and drive foreign investment into strategic, job-creating projects. (Letter, March 11)

  • During a meeting with GOP Senators this week, President Trump discussed his “Gold Card” Program as a revenue source to address the national deficit.

Federal Workforce Cuts and GSA Leasing

  • Federal agencies faced a Thursday deadline to submit initial plans for sweeping workforce cuts and reorganizations, following President Trump’s directive for “large-scale reductions in force,” with a second round of plans due in April. (Politico, March 12)
  • The “Phase 1” agency cut plans due this week mark the first step in the Trump administration’s broader downsizing strategy, with “Phase 2” plans—detailing operational overhauls—due by April 14 and set for implementation by Sept. 30. (Politico, March 12)
  • A federal judge ordered the administration to rehire thousands of employees dismissed from six agencies, disputing the Trump administration’s justification for firing the probationary workers. (NYT, March 13)

  • RER will continue to track these developments and their potential implications for government leasing in Washington, D.C. and other major urban centers. (Roundtable Weekly, Feb. 7)

Both chambers are in recess next week and set to return to Washington on March 24.

RER Members – Call to Action

Posted on by Abigail Grenadier

The Real Estate Roundtable (RER) and sixteen other national real estate organizations recently wrote to Congress urging them to oppose any proposal that would cap or eliminate the deductibility of state and local business property taxes.  (Letter)

A cap on property tax deductibility could have devastating consequences for commercial real estate owners, developers, and investors nationwide.

Call to Action

The Real Estate Roundtable urges members to amplify this message to their representatives in Congress.

Click here to find your Representative.   Click here to find your Senators.      

Effects on CRE and the Broader Economy

  • Some lawmakers have raised “Business SALT” and potential restrictions on the deductibility of state and local property and income taxes as a possible revenue offset for the tax bill.
  • The ripple effects of this proposal would extend far beyond property owners to impact the broader economy and housing affordability nationwide.
  • U.S. commercial real estate is valued at $18-$22 trillion, supporting 15 million jobs and generating $2.3 trillion in GDP annually.
  • Eliminating the business deduction for property taxes would be the equivalent of raising business owners’ property tax bills by roughly 40 percent, causing employers to owe federal tax on money that they do not have.
  • This tax change could reverse the benefits of the 2017 Tax Cuts and Jobs Act (TCJA) and Section 199A, potentially raising effective tax rates to 1970s-era levels near 50%.
  • Additionally, the increased tax burdens could discourage new investment, deter housing development, and exacerbate the national housing crisis.
  • Given that U.S. businesses paid $1.1 trillion in state and local business-related taxes in 2023 (including nearly $400 billion in property taxes), the stakes are extremely high.

Treasury Halts Corporate Transparency Act Enforcement for U.S. Businesses

Posted on by Abigail Grenadier

This week, The U.S. Department of Treasury announced it will suspend enforcement of the Corporate Transparency Act (CTA) for U.S. citizens and domestic reporting companies. (CNBC, March 2)

Why It Matters

  • The agency will not impose penalties or fines tied to the CTA’s beneficial ownership reporting requirements, either under current deadlines or future rule changes. (BisNow, March 4)
  • Treasury plans to narrow the rule’s scope to apply only to foreign reporting companies, with a forthcoming rulemaking proposal.
  • Due to the far-reaching scope of the CTA, RER has long raised concerns about the regulatory burden and cost the CTA would impose on many commercial and residential real estate investment businesses. (Roundtable Weekly, Dec. 2024)
  • The decision marks a major shift in financial transparency regulation, easing compliance burdens on small businesses and other domestic entities.
  • The law, enacted in 2021, was aimed at curbing illicit financial activity by requiring companies to disclose their beneficial owners the Financial Crimes Enforcement Network (FinCEN).
  • The decision aligns with President Trump’s efforts to cut back on regulatory burdens, particularly for small businesses.

What’s Next

  • Treasury Secretary Scott Bessent called the move a “victory for common sense,” framing it as part of the administration’s broader deregulatory push to bolster economic growth.
  • “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy,” said Secretary Bessent. (Treasury Press Release, March 2)
  • Treasury will soon propose new rules to formally limit CTA enforcement to foreign reporting companies.

RER’s Real Estate Capital Advisory Committee (RECPAC) will continue to closely track developments related to the enforcement of the CTA.

Real Estate Industry Urges Congress to Preserve Deductibility of Business Property Taxes

Posted on by Abigail Grenadier

As discussions continue between the House, Senate, and Administration on how to move forward with a tax and fiscal package, The Real Estate Roundtable (RER) and sixteen other national real estate organizations wrote to members of the House Ways and Means and Senate Finance Committees urging them to oppose any proposal that would cap or eliminate the deductibility of state and local business property taxes.  (Letter)

A cap on property tax deductibility could have devastating consequences for commercial real estate owners, developers, and investors nationwide.

Why It Matters

  • Republican lawmakers intend to enact a major tax and fiscal package this year, and they are under pressure to identify additional revenue offsets to finance a growing list of priorities.  Ways and Means Committee Republican Members have scheduled all-day, closed-door meetings next week to discuss the details of their tax plan.
  • Some lawmakers have raised “Business SALT” and potential restrictions on the deductibility of state and local property and income taxes as a possible revenue offset for the tax bill (Roundtable Weekly, Feb. 28)
  • Eliminating the business deduction for property taxes would be the equivalent of raising business owners’ property tax bills by roughly 40 percent, causing employers to owe federal tax on money that they do not have.
  • “Business taxes are fundamentally different from state and local individual income taxes.  State and local business taxes are an unavoidable expense, an inescapable cost of doing business,” said Real Estate Roundtable President and CEO Jeffrey DeBoer.  (Roundtable Weekly, Feb. 21)
  • DeBoer’s comments were echoed this week in analyses from the Tax Foundation and former Congressional Budget Office Director Douglas Holtz-Eakin.  (Tax Foundation, March 3; American Action Forum, March 6).
  • “Firms deduct the costs of generating income—wages, rents, capital costs, etc.—and CSALT is the recognition of those costs. Fully deducting those taxes is … necessary to correctly tax firms. Capping CSALT is professional malpractice,” said Holtz-Eakin.

Effects on CRE and the Broader Economy

  • The ripple effects of this proposal would extend far beyond property owners to impact the broader economy and housing affordability nationwide.
  • U.S. commercial real estate is valued at $18-$22 trillion, supporting 15 million jobs and generating $2.3 trillion in GDP annually.
  • This tax change could reverse the benefits of the 2017 Tax Cuts and Jobs Act (TCJA) and Section 199A, potentially raising effective tax rates to 1970s-era levels near 50%.
  • “A cap on the deductibility of property taxes paid by businesses, “would cause self-inflicted injury to the U.S. economy, including unnecessary job losses, higher rents for families and individuals, and other inflationary pressures,” DeBoer said this week.  “It would lower commercial property values and create new stresses in the banking system. It is a recipe for a recession.”
  • Additionally, the increased tax burdens could discourage new investment, deter housing development, and exacerbate the national housing crisis.

Call to Action

  • RER urges members to amplify this message to their representatives in Congress.
  • Given that U.S. businesses paid $1.1 trillion in state and local business-related taxes in 2023 (including nearly $400 billion in property taxes), the stakes are extremely high.

Next Steps

  • House and Senate Republicans remain divided on several key issues as they work to prevent a March 14 government shutdown and agree on the parameters of a larger tax and fiscal reconciliation bill. (USA Today, March 7)

The impasse centers on whether to pursue one big bill or a two-bill strategy, the size of spending reductions, how to deal with the debt ceiling, and the budget baseline that will determine the need for offsetting tax increases.  The impasse could push resolution of the tax issues into the second half of the year.

Policymakers Sharpen Focus on Grid Reliability

Posted on by Abigail Grenadier

Recent legislative hearings and administrative initiatives have highlighted the critical need for a resilient and affordable electricity supply.​

The Big Picture

  • EPA Administrator Lee Zeldin’s initiative for “Powering the Great American Comeback,” and DOE Secretary Chris Wright’s 9-point plan for US “energy dominance,” outlined agency strategies emphasizing permitting reform, strengthening grid reliability, expanding U.S. energy production to fuel economic growth, and position the U.S. as a global leader in AI and advanced energy technologies.
  • As The Roundtable’s Policy Guide on building performance standards states, the transition to a digital economy raises serious concerns about electricity availability. “AI could soon need as much electricity as an entire country” as “[v]ast swaths of the U.S. are at risk of running short of power.” (Roundtable Weekly, Jan. 25)

Why It Matters

  • Policymakers and industry leaders are debating how to balance investment in renewable energy, transmission infrastructure, and traditional baseload generation sources to ensure stable electricity supply. (E&E News, Feb. 26)
  • During this week’s joint address to Congress, President Trump emphasized the administration’s focus on reducing energy costs: “A major focus of our fight to defeat inflation is rapidly reducing the cost of energy … That’s why, on my first day in office, I declared a national energy emergency… It’s called drill, baby, drill.”
  • In a new report from The Center for Strategic & International Studies warns that while AI is digital, its biggest hurdle is physical infrastructure. The report explores using President Trump’s energy “emergency” declaration to fast-track permitting and urges a stronger DOE role in accelerating nuclear projects. (Axios, March 5)

Congressional Hearing

  • Industry experts argued that regulatory hurdles are slowing energy infrastructure projects, creating a gap between federal energy goals and grid capacity. (Latitude Media, March 5)

Clean Energy & Economic Impact

  • The American Clean Power Association (ACP) reports that while the Inflation Reduction Act (IRA) has boosted clean energy investment, uncertainty over efforts to cut tax credits raises concerns about long-term project financing.
  • In 2024, U.S. developers added 48 gigawatts of new utility-scale solar, storage, and wind capacity—a 33% increase from the previous year. (ACP Report, March 5)
  • The clean energy industry argues that wind and solar projects can be built faster than natural gas and nuclear, making them essential for stabilizing the grid. (E&E News, Feb.26)
  • 79% of operational clean power capacity is now located in Republican-held districts, with GOP districts also home to 77% of new clean energy additions last year. (PoliticoPro, March 5)
  • North America’s data center sector doubled its construction supply in 2024 to a record 6,350.1 megawatts (MW), underscoring the increasing power demands of AI-driven computing, according to CBRE’s latest North American Data Center Trend Report.  (ConnectCRE, March 4)

The Real Estate Roundtable will continue working with the administration to advance policies that streamline energy project approvals, strengthen grid resilience, ensuring a stable, reliable power supply to fuel economic growth and innovation.

Major Tax and Fiscal Package Gains Momentum as House Passes Budget Resolution

Posted on by Abigail Grenadier

House Republicans’ effort to pass a massive tax and fiscal package received a jolt of momentum this week after a cliffhanger vote on the House floor Tuesday night. Passed by a narrow vote of 217-215, the House resolution would authorize $4.5 trillion in tax cuts, provided congressional committees can identify $2 trillion in spending reductions. 

House Budget Proposal

  • Under the deal negotiated with fiscal conservatives in the House, if congressional committees cannot agree on $2 trillion in savings, the size of the authorized tax cut will automatically adjust downwards.  If they can agree on more than $2 trillion in savings, the size of the authorized tax cuts would adjust higher. (House Committee Report, Feb. 18)
  • The House resolution also includes a controversial $4 trillion increase in the national borrowing limit, along with allocations of up to $200 billion for border security and $100 billion for defense funding. (Roll Call, Feb. 25; AP, Feb. 25))
  • Shortly before the vote, The Roundtable joined a broad business coalition urging Congress to pass the House budget resolution to prevent a looming tax hike on pass-through businesses.  (Letter, Feb. 24)

Next Steps

  • Both the House and Senate chambers must now align on a budget resolution before moving forward with a reconciliation bill detailing the spending cuts, tax reductions, and other measures.
  • Senate Republicans have expressed reservations about the House’s approach, particularly concerning the scale of spending cuts and the structure of tax extensions.
  • Senate leaders have already signaled they will push for changes to ensure the 2017 tax cuts become permanent, as the House plan may lack the fiscal room to do so while also accommodating President Trump’s proposed new tax breaks.
  • Senate Majority Leader John Thune emphasized the complexity of the task, stating, “It’s complicated. It’s hard. Nothing about this is going to be easy.” (The Hill, Feb. 27)

View from The White House

  • For weeks, the president has endorsed the House plan as the best way to achieve his top legislative priorities in one move, yet he has also signaled openness to the Senate’s alternative or a compromise blending both approaches.
  • “So the House has a bill and the Senate has a bill, and I’m looking at them both, and I’ll make decisions,” President Trump said at the White House on Tuesday. “I know the Senate’s doing very well, and the House is doing very well, but each one of them has things that I like, so we’ll see if we can come together.”

Revenue Offsets and Business SALT

  • Some lawmakers have raised “Business SALT” and potential restrictions on the deductibility of state and local property taxes as a possible revenue offset for the tax bill. 
  • Eliminating the business deduction for property taxes would be the equivalent of raising property tax bills on commercial real estate by roughly 40 percent. 
  • “Business taxes are fundamentally different from state and local individual income taxes.  State and local business taxes are an unavoidable expense, an inescapable cost of doing business,” observed Real Estate Roundtable President and CEO Jeffrey DeBoer last week.  (Roundtable Weekly, Feb. 21)
  • “Employers would owe federal tax on money that they do not have.  It would lead to insolvencies and foreclosures. It would cause self-inflicted injury to the U.S. economy, including unnecessary job losses, higher rents for families and individuals, and other inflationary pressures.  It is a recipe for a recession,” said DeBoer.
  • It remains an open question whether the House and Senate will use a “current policy” budget baseline that would not count the extension of the 2017 tax cuts as a revenue loss.  A current policy baseline could significantly reduce the pressure to identify spending reductions and revenue offsets. (PoliticoPro, Feb. 28)

Averting Government Shutdown

  • In addition to the tax and fiscal package, congressional leaders are under pressure to reach an agreement on current-year federal spending before a government shutdown on March 14.  A short-term stopgap bill will likely be necessary. (Axios, Feb. 27, CBS, Feb. 27)

Looking Ahead

The House budget resolution directs House committees to report their spending reductions and tax changes to the House Budget Committee no later than March 27, 2025.

RER to Congress: Oversee Federal Grants for Onerous Local Building Performance Laws

Posted on by Abigail Grenadier
Department of Energy building in Washington, DC

The Real Estate Roundtable sent a letter on Wednesday asking Congress to oversee nearly a quarter billion dollars in federal grants, used to back city and state efforts setting onerous energy and emissions regulations on buildings.

Congressional Hearing

  • The oversight and investigations arm of the U.S. House Energy and Commerce Committee held a hearing Wednesday examining Biden-era energy and environmental program funding.
  • BPS laws are like “EV mandates” for buildings. These state and local mandates aim to set “net zero” emissions targets for owners and tenants to stop using heaters, boilers, stoves and other appliances that run on natural gas — and “electrify” instead.
  • No U.S. agency has the authority to require private sector building electrification. The U.S. Department of Energy (DOE) should not make an “end run” around this limit on its authority by issuing grants for BPS jurisdictions to accomplish indirectly what federal regulators can’t do directly, RER explained.
  • RER’s letter requested reasonable “strings attached” to the DOE grants. BPS cities and states taking federal taxpayer dollars should be required to study fully the housing affordability, grid capacity, and market impacts of their “net zero” laws.
  • RER has released a comprehensive, peer-reviewed 20-point policy guide for fair BPS mandates. The letter urged Congress to investigate whether jurisdictions receiving federal grants are considering issues raised in RER’s guide to achieve balanced building emissions regulations. 

CRE Supports EPA ENERGY STAR

  • These programs give building owners and developers standardized tools to monetize and forecast “massive energy savings,” help reduce strain on the power grid, and attract global capital to U.S. real estate.
  • “At minimum, any state or locality that received federal grants to develop onerous BPS laws should not levy fines on buildings participating in federal partnership programs,” RER wrote.
  • RER’s position advances the priorities of its Sustainability Policy Advisory Committee (SPAC), chaired by Anthony Malkin (Chairman and CEO, Empire State Realty Trust, Inc.). SPAC leads the organization’s energy advocacy agenda with a message centered on saving money, delivering profits, enhancing grid reliability, and attracting global investments to U.S. real estate.
  • “Building energy, water, and waste performance drives savings, results, and delivers a healthier work environment,” said Malkin recently in a discussion with Paul Donofrio, Vice Chairman of Bank of America and Co-Chair of its Responsible Growth Council. (BofA Webinar, Feb. 18) 

RER will continue to work with the Trump administration to identify opportunities for cost savings while highlighting effective government programs that create American jobs, grow the economy, and optimize America’s energy independence.  

Lawmakers Push for NFIP Overhaul Amid Short-Term Reauthorization Plan

Posted on by Abigail Grenadier

Rising disaster risks—from California wildfires to coastal flooding—are pushing property insurance costs to crisis levels, forcing insurers to retreat from high-risk markets. At the same time, Congress is working to pass another short-term extension of the National Flood Insurance Program (NFIP) before the March 14 deadline, while acknowledging the urgent need for long-term reforms.

View from Congress

  • Congress has enacted over 32 short-term extensions of the NFIP.
  • Without comprehensive reforms, property owners and commercial real estate investors face increasing premiums, reduced coverage, and market uncertainty—issues that now threaten housing affordability and broader economic stability.
  • Sen. John Kennedy (R-LA), co-chair of the Senate Banking Committee’s NFIP working group, and House Financial Services Republicans warn that Congress must stop “kicking the can down the road” with temporary National Flood Insurance Program (NFIP) extensions. (PoliticoPro, Feb. 25)
  • Lawmakers from both parties have long called for an overhaul.
  • Sen. Kennedy and Sen. Kevin Cramer (R-ND), a member of the Senate Banking Securities, Insurance, and Investment Subcommittee, recently told POLITICO they are open to incorporating other disaster coverage into NFIP renewal. (Politico, Feb. 13)
  • Potential changes to the program could include exploring a national catastrophe insurance program, combining flood, wildfire, and hurricane coverage into a single, federally backed plan. (Politico, Feb. 13)
  • Meanwhile, Sen. Jack Reed (D-RI) noted that the Senate Banking Securities, Insurance, and Investment Subcommittee has been exploring NFIP reforms for years.

Roundtable Advocacy

  • The Roundtable has been a long-standing supporter of a long-term reauthorization of the NFIP with appropriate reforms. (Roundtable Weekly, Oct. 4)
  • Without a robust, long-term NFIP, property owners face escalating risks from future storms, leaving both homeowners and commercial real estate properties vulnerable.
  • A long-term reform and reauthorization of the NFIP is essential for residential markets, overall natural catastrophe insurance market capacity, and the broader economy.

BPC Report: The Growing Insurance Crisis

  • Key takeaways from the report: With insurer exits accelerating in high-risk markets, affordable housing developers are struggling—property insurance premiums for multifamily housing jumped 129% between 2018-2023, and disaster risk is intensifying—climate-driven disasters like wildfires, hurricanes, and flooding now account for 90% of property insurance claims.
  • The paper also presented potential opportunities for federal policymakers to help mitigate the impact of rising property insurance costs on housing affordability.
  • Some of BPC’s policy recommendations included: Expanding federal incentives for resilience upgrades, enhancing transparency and data-sharing on disaster risk, allowing insurers, developers, and lenders to make more informed decisions, and considering a federal catastrophe insurance backstop, similar to NFIP, to stabilize private insurance markets.

The Roundtable and its industry partners are actively engaging with policymakers and stakeholders to address commercial insurance gaps and rising costs while advocating for targeted policy solutions to ease the financial burden on housing providers nationwide.