News Type: Roundtable Weekly

Roundtable Survey Seeks Members’ Input on SEC Climate Risk Disclosure Proposal

Posted on by Trey Jackson

SEC building exterior

Real Estate Roundtable members received a survey earlier today that will help formulate comments in response to a proposed rule issued on March 21 by the U.S. Securities and Exchange Commission (SEC) regarding corporate disclosures of climate-related financial risks. (Roundtable Weekly, March 25) 

Roundtable Member Participation 

  • The Roundtable requests that members respond to the SEC climate issues survey by COB April 11.

  • Before submitting responses to the survey, members are encouraged to review The Roundtable’s fact sheet summarizing the SEC’s proposed rule.
  • The survey sent today aims to obtain a high-level understanding of the existing practices and standards used by Roundtable members in assessing and quantifying the following:
    • greenhouse gas (GHG) emissions across their portfolios,
    • their buildings’ electricity use,
    • impacts to their real estate assets from floods and rising sea levels,
    • how they interact with their tenants on these matters, and
    • similar questions that will likely require registered companies to report on their climate-related financial risks.
  • If any Roundtable member has questions about the survey, please contact Roundtable Senior Vice President and Counsel, Duane Desiderio.

SEC Climate Risk Proposal

Flooding of mixed used building

  • The proposed rule has no immediate effect. If the proposal is finalized, all companies registered with the SEC would be required to report, measure, and quantify “material” risks related to climate change in their annual Form 10-Ks and certain other filings. (SEC News Release | Proposed Rule | Fact Sheet, March 22)
  • Compliance would phase-in over the next several years. For example, registrants with a global market value of $700 million or more would need to comply first for filings in FY 2024 (covering FY 2023 emissions).
  • “Limited assurance” from independent third party verifiers, regarding so-called Scope 1 and Scope 2 emissions, would be required for the first two compliance years. Thereafter, “limited assurance” would ramp-up to “reasonable assurance” at a level provided in a financial statement audit filed with a 10-K.
  • Indirect “supply chain” emissions – known as “Scope 3” – are considered the most difficult emissions to measure and quantify. Under the SEC’s proposal, reasonable efforts to report on Scope 3 emissions would receive a “safe harbor” from certain liability under federal securities laws. Also, third-party verification of Scope 3 reporting would be optional. 

The SEC proposal, formally titled “Enhancement and Standardization of Climate-Related Disclosures for Investors,” is considered a key component of the Biden Administration’s efforts to cut U.S. greenhouse gas emissions by as much as 52% (below 2005 levels) by 2030. (CBS-AP | Bloomberg | Axios, March 21)  

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Roundtable Convenes Town Hall on Ukraine With Alexander Vindman; Biden Administration Warns About Russian Cyberattacks

Posted on by Trey Jackson

Lieutenant Colonel (Ret.) Alexander Vindman, Senior Advisor of VetVoice Foundation, today discussed the conflict in Ukraine during a Real Estate Roundtable virtual town hall. In recent years, Vindman served on the White House’s National Security Council as the Director for Eastern Europe, the Caucasus, and Russia. (Watch video discussion)

Focus on Ukraine

  • Vindman and Roundtable President and CEO Jeffrey DeBoer addressed Ukraine in the context of Democracy vs. Authoritarianism, the spillover effects of the war, and the need for a future international reconstruction effort.
  • “It’s a geopolitical earthquake that has unfolded over the past year, culminating in a war between the largest country in the world and the largest country in Europe,” Vindman stated.
  • In addition to the devastating human and physical destruction, the war’s spillover effects include interruptions to the supply of crucial commodities such as neon and titanium, and food supplies for the Middle East and Africa.
  • “The longer this war continues, the greater the chance of spillover,” Vindman said, citing the Russian attack on a Ukrainian nuclear power plant, and the potential use of cyberwarfare and chemical weapons.
  • He added the war’s eventual outcome will be a significant setback to Authoritarianism – and that the West should keep a door open for a reconciliation with Russia after Putin is gone.
  • Vindman and DeBoer also discussed the need for an enormous reconstruction effort, which Vindman said could amount to $100 billion international fund that could take the form of a public-private partnership. (Watch video discussion)
  • Roundtable members can support Ukraine against the Russian invasion via the VetVoice Foundation.

U.S. Support

Zelensky before U.S. Congress
  • Since the invasion of Ukraine began, over 450 U.S. companies have announced their withdrawal from Russia, shutting down 25% of Russia’s gross domestic product (GDP), according to Professor Jeffrey Sonnenfeld at the Yale Chief Executive Leadership Institute. Sonnenfeld’s research team maintains a list of companies that have either withdrawn from Russia completely, suspended or scaled back operations, or delayed investments. (Fortune, March 16)
  • Many American Hotel & Lodging Association members, including Hilton and Marriott International, recently announced donations for humanitarian aid; the closure of their corporate offices in Moscow; and a suspension all future hotel development and investment in Russia. (TravelPulse, March 21 and Roundtable Weekly, March 18) 

White House CyberSecurity Warning 

WhiteHouse cyber warning
  • President Joe Biden alerted U.S. business leaders on March 21 that “based on evolving intelligence, Russia may be planning a cyberattack against us.” Biden added, “[I]t’s a patriotic obligation for you to invest as much as you can in making sure … you have built up your technological capacity to deal … with cyberattacks.” (Remarks by President Biden | White House Statement | Fact Sheet: Act Now to Protect Against Potential Cyberattacks, March 21)
  • The growing concern about a possible Russian cyberattack response over U.S. sanctions also led White House Deputy National Security Adviser for Cyber and Emerging Technology Anne Neuberger, above, to clarify that although “there is no certainty” of an attack, Biden’s warning was intended to focus attention on “critical infrastructure.” (White House Press Briefing video | BGov and Axios, March 21)

The Real Estate Roundtable’s Homeland Security Task Force and the Real Estate Information Sharing and Analysis Center (RE-ISAC) continue to work with its members, key law enforcement and intelligence agencies to help manage and mitigate cyber and physical threats to the commercial facilities sector. (Information on joining the RE-ISAC and Roundtable Weekly, March 4) 

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Roundtable Opposes SEC Proposals Impacting Real Estate and Private Fund Advisors

Posted on by Trey Jackson

SEC logo on wall with American flag

The Real Estate Roundtable on March 21 submitted comments to the Securities and Exchange Commission (SEC) opposing a proposal that would impose new reporting requirements on real estate investment and private equity advisers, including a mandate to file reports within one business day of certain events. The proposal “presents significant compliance and operational challenges for private real estate fund sponsors, with no added benefit to investors and no relation to the intent of Form PF in monitoring systemic risk,” according to The Roundtable’s letter.

Cost and Timing Burdens 

  • The SEC’s proposal would impose new requirements on Form PF, the confidential reporting form for certain SEC-registered private fund advisers. The proposal reflects the SEC’s experiences with recent market turmoil, including the COVID-19 crisis and the January 2021 market volatility impacting certain stocks. (SEC, Jan. 26 News Release | Fact Sheet | Proposed Rule)
     
  • New disclosure obligations in the Commission’s proposal include:
     
    • Additional reporting requirements for large hedge fund advisers and advisers to private equity funds, obligating such advisers to report a number of specified events to the SEC within one business day of their occurrence;
    • A lowered threshold for large private equity adviser reporting;
    • Certain revised reporting questions for private equity funds; and
    • Enhanced reporting requirements for large liquidity fund adviser. 

The Roundtable’s Response 

SEC building exterior

  • The Roundtable’s March 21 comment letter details why the proposed reporting requirements for Form PF should not be adopted. While the letter acknowledges the SEC’s intention to enhance the monitoring of systemic risk, it also outlines how the proposed reporting requirements present significant compliance and operational challenges for private real estate fund sponsors. Some of the key points made against the proposed new requirements include:
    • A one-day reporting requirement imposed on private equity advisers for any reason is unprecedented, and a requirement to report the specific transactions and events deemed by the SEC to be systemically important is wholly unsupported.
    • The proposed amendments to Section 4 of Form PF impose onerous new reporting requirements that force “large private fund advisers” to report sensitive information unrelated to monitoring for systemic risk.
    • The significant added cost and timing burdens of the proposed amendments are unreasonable and do not provide investors with commensurate benefits or protections or enhance systemic risk monitoring.
    • The reduced threshold for reporting private equity advisers is arbitrary. The SEC’s rationale for choosing 75% of committed capital as a meaningful threshold for purposes of FSOC’s systemic risk-monitoring function is unclear. 

A March 16 analysis of the proposed SEC amendments on Form PF is available from Dechert LLP. The Roundtable’s Real Estate Capital Policy Advisory Committee (RECPAC) will continue to respond to the SEC’s various proposed regulatory initiatives with its industry and coalition partners. 

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SEC Issues Proposal for Registered Companies to Disclose Climate Risks; EPA Releases Emissions Calculator Tool

Posted on by Trey Jackson

Houston skyline storm clouds

The U.S. Securities and Exchange Commission (SEC) issued an anticipated proposed rule on March 21 regarding the reporting and disclosure of material corporate financial risks related to climate change. (GlobeSt, March 22 and Roundtable Fact Sheet, March 25) 

Expanded Climate Disclosures 

  • The proposed rule has no immediate effect. If it is finalized, the action would require all SEC registered companies to quantify their greenhouse gas (GHG) emissions, assess the economic impact of rising sea levels relating to their assets, and report to investors on these and other climate-related risks through annual 10-Ks and additional filings. (SEC News Release | Proposed Rule | Fact Sheet, March 22)
  • Release of the proposal triggers a public comment period, with stakeholder input due to the SEC around May 20, 2022. Themes raised by The Real Estate Roundtable in pre-rulemaking comments submitted last year will likely be raised again in this latest round of public input. (Roundtable Weekly, June 11, 2022)
  • The SEC’s proposal, titled “Enhancement and Standardization of Climate-Related Disclosures for Investors,” is considered a key component of the Biden Administration’s efforts to cut U.S. greenhouse gas emissions by as much as 52% (below 2005 levels) by 2030. (CBS-AP | Bloomberg | Axios, March 21) 

Scope 3 “Safe Harbor” 

Chicago downtown with river view

  • A Real Estate Roundtable Fact Sheet provides a summary of the 510-page SEC proposal, including the following elements:
    • All companies registered with the SEC would be required to report and quantify Scope 1 and Scope 2 GHG emissions each year. Scope 1 and 2 reporting would require registrants to define and disclose how they determine their “organizational” and “operational” boundaries.
    • SEC registrants would report on Scope 3 “indirect” emissions in their supply chain if the company has announced a Scope 3 reduction goal – or if investors would deem the registrant’s Scope 3 emissions to be “material.” 
    • The SEC proposes a “safe harbor” for Scope 3 disclosures related to certain liabilities covered by federal securities law.
    • Independent 3rd party assurances would be required for Scope 1 and 2 disclosures, but not for Scope 3.
    • Registrants should report on climate targets or goals they set for themselves, their energy efficiency investments, and whether they purchase Renewable Energy Certificates (RECs) or carbon offsets to meet their GHG goals.
    • Registrants would also need to report on material “physical risks” to buildings and other assets from climate change – such as those caused by extreme weather, droughts, and coastal flooding.
    • Compliance would start with SEC filings in 2024 for the biggest registrants and phase-in for other companies. (Roundtable Fact Sheet)

EPA’s GHG Emissions Calculator for Buildings 

EPA's Emissions Calculator logo

The Building Emissions Calculator has important potential to assist owners as they strive to comply with state and local building performance standards. EPA’s new calculator can also help real estate companies registered with the SEC to quantify and report on their GHG emissions should the commission’s investor disclosure proposed rule take final shape. 

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SEC Proposes 4-day Cybersecurity Reporting Requirements for Public Companies; Roundtable’s HSTF Plans Security Threat Briefings

Posted on by Trey Jackson

Gary Gensler of the SEC

The Securities and Exchange Commission (SEC) on March 9 issued a proposed rule that would require publicly traded companies to disclose a cybersecurity incident within four days of determining a breach is “material,” or important to the average investor. (BGov, March 11 and SEC News Release | Proposed Rule | Fact Sheet)

Proposed SEC Requirements

  • SEC Chair Gary Gensler, above, said, “Today, cybersecurity is an emerging risk with which public issuers increasingly must contend. I am pleased to support this proposal because, if adopted, it would strengthen investors’ ability to evaluate public companies’ cybersecurity practices and incident reporting.” (Bloomberg, March 9)
  • An SEC spokesperson noted that the crisis in Ukraine gave these proposals “special relevance.” (CNBC, March 9 and see story below on The Roundtable’s upcoming March 25 discussion on the Ukraine conflict)
  • The proposed SEC amendments would include requirements around reporting material cybersecurity incidents – and providing periodic updates for previously reported cybersecurity incidents. (Wall Street Journal, March 9)
  • The proposal also would require periodic reporting related to:
    • a registrant’s policies and procedures to identify and manage cybersecurity risks;
    • the registrant’s board of directors’ oversight of cybersecurity risk; and
    • management’s role and expertise in assessing and managing cybersecurity risk and implementing cybersecurity policies and procedures.
  • The Real Estate Roundtable is planning to provide comments on the SEC proposal in advance of the May 9, 2022 submission deadline and looks forward to Roundtable members’ input. The proposed four-day reporting timeframe for companies to provide cyber disclosures may not provide enough time for companies to discover the full extent of an incident. (BGov, March 11)

Cybersecurity Threats

Cybersecurity computer operator at console with world map

  • An Audit Analytics report  released last year showed the number of cybersecurity intrusions reported by public companies increased from 28 breaches in 2011 to 117 in 2020.
  • The average cost of a corporate data breach was $4.24 million in 2021, according to an annual IBM Security report.
  • Separately, the $1.5 trillion omnibus bill spending bill enacted on March 11 included the Cyber Incident Reporting for Critical Infrastructure Act. The legislation establishes a narrower 72-hour window for critical infrastructure owners and operators to disclose a cyberattack to the Cybersecurity and Infrastructure Security Agency (CISA). Certain businesses are also required to report any ransom payments to the federal government within 24 hours, among other changes. (Brownstein Hyatt Farber Schreck, March 14)

REISAC logo

  • The Real Estate Roundtable’s Homeland Security Task Force (HSTF) is coordinating briefings on the following security threats through the Real Estate Information Sharing and Analysis Center (RE-ISAC):
    • April: DHS Sector Outreach and Programs (Active Shooter, and other soft target resources for the Commercial Facilities Sector)
    • May: DHS Fusion Center overview
    • June: US Secret Service cybercrime
    • August: The Protective Security Advisor Program
    • September: FBI cybersecurity/cybercrimeNovember: The InfraGard program 

Roundtable members interested in participating can contact Andy Jabbour of the RE-ISAC. 

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U.S. Labor Secretary Discusses “Back-to-the-Workplace” Issues With Roundtable Members

Posted on by Trey Jackson

Labor Secretary Martin Walsh with Roundtable Members

U.S. Department of Labor Secretary Martin Walsh discussed back-to-the-workplace and labor market issues with Real Estate Roundtable members today during a virtual town hall. Participants also included Roundtable Chair John Fish (Chairman and CEO, Suffolk); Fred Seigel (President and CEO, Beacon Capital Partners); Owen Thomas (CEO, Boston Properties); and Roundtable President and CEO Jeffrey DeBoer. (Watch video discussion) 

Pandemic Labor Market 

  • Fish, below left, opened the discussion by noting how the pandemic has changed the relationship of employees to their physical workplaces, which poses new challenges for real estate. He cited a recent Pew Research report showing that the majority of teleworkers feel more productive at the office, yet appreciate how a hybrid work model improves their work-life balance.
  • Secretary Walsh, below right, commented on how the overall labor market has bounced back from the COVID-19 downturn more swiftly than in prior recessions – and that the nation is continuing a “worker-centered” economic recovery.

  • “Worker-centric means making sure workers have what they need to be successful,” Secretary Walsh stated, emphasizing how the Biden administration is working to create pathways for workforce development, job training, and apprenticeships. “But we can’t do it if we don’t have businesses at the table with us,” he continued. (Watch the video discussion) 
  • The Labor Department’s February employment data analysis showed widespread job growth across the private sector – especially for hard-hit leisure and hospitality businesses.
  • The jobs report also showed the overall number of telecommuting workers dropped to 13% in February, compared to a pandemic-era high of 24.3% in August 2020. (Bureau of Labor Statistics and Business Insider, March 4)
  • Walsh also commented the employment report indicates that, “With the Administration’s Bipartisan Infrastructure Law beginning to invest in communities across the country, we have the opportunity to create many more good jobs and make sure that they are accessible to all workers.” (DOL Feb. Jobs Report) 

Workplace Return & CRE 

Jeffrey DeBoer and Fred Seigel

  • During the town hall discussion, Seigel, above right, shared an overview of research underway by the University of California, Berkeley, with The Roundtable’s DeBoer, above left.  Preliminary findings show that further delays of employees’ return to the workplace pose major risks to local government budgets and the health of cities – particularly for lost municipal revenues from transit services and from property, sales, and hotel-stay taxes.
  • Seigel stated that the repercussions of the pandemic could reduce near-term revenue for certain municipalities between 10 to 18 percent per year.

  • He added that property owners “… need to create environments that address employees’ health and wellness concerns.” Seigel noted how state-of-the-art building systems can share health-related data in real time with tenants. “The transparency and trust between tenants and landlords has never been more important than it is today,” he said.

John Fish and Owen Thomas

  • Thomas, above right, said, “You have to think about the office not as an obligation, but as a destination.” He added that property owners, tenants and local policy makers should consider various efforts to attract employees back to the workplace, including  “… amenities, indoor air quality, sustainability features, the environment around the building and proximity to transit.”
  • “The future is some form of hybrid work, which is the reality of the market right now,” Thomas commented. He also stated that “Our leasing activity is at pre-pandemic levels, so clearly businesses are planning on using offices in the future but perhaps in a different way.”
  • Return-to-office issues were also recently addressed on CNBC’s Squawkbox on March 10 by Roundtable Chair Emeritus (2015-2018) Bill Rudin (Co-Chairman and Chief Executive Officer, Rudin Management Company. Squawkbox  hosted Roundtable Member Scott Rechler (CEO, RXR Realty) to discuss the CRE market on March 17. 

Biden Administration Announces “Clean Air In Buildings” Challenge 

  • Clean Air in Buildings Challenge documentIn related news, the White House and the U.S. Environmental Protection Agency (EPA) yesterday released a “best practices” guide to improve indoor air quality and reduce the spread of COVID-19 inside buildings. (White House Fact Sheet; EPA Guidance)

  • The “Clean Air in Buildings Challenge” is styled as a “call to action” that encourages building owners and managers to take steps such as: 
    • Create a clean indoor air “action plan” (e.g., regular HVAC inspections and maintenance)
    • Optimize fresh air ventilation (e.g., use economizers, open operable windows)
    • Enhance air filtration (e.g., install MERV-13 filters)
    • Communicate IAQ practices with building occupants 

Reopening businesses and the country is an important priority in The Roundtable’s 2022 Policy Agenda: “Connection, Commitment, and Collaboration – Supporting Federal Policy Through Experience and Innovation in 2022,” sent this week to Roundtable members. 

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Roundtable Schedules Town Hall Next Week on Ukraine Conflict; Zelensky Addresses Joint Session of Congress

Posted on by Trey Jackson

Vindman testifying

The Real Estate Roundtable will hold a virtual “town hall” on Friday, March 25 with Lieutenant Colonel (USA, Ret.) Alexander Vindman, former National Security Council Director for Eastern Europe during the Trump Administration, to discuss Russia’s war against Ukraine. 

Ukraine Support 

  • The Roundtable’s town hall with Vindman will address Ukrainian President Volodymyr Zelensky’s speech to Congress on Wednesday and the U.S. response thus far to the brutal Russian invasion. Zelensky’s appeal galvanized the Biden administration to release additional aid to Ukraine. (President Biden video, transcript and Axios, March 16)
  • Roundtable President and CEO Jeffrey DeBoer stated, “The Roundtable fully supports the billions in federal aid to Ukraine as its citizens continue to bravely stand up against Russian aggression. As we bear witness to the tragic violence of the invasion, The Roundtable encourages its members and all industry stakeholders to contribute to charities involved in Ukrainian humanitarian relief,” DeBoer added. (VetVoice Foundation)

Map of Ukraine

  • The Ukrainian war has compelled hundreds of American companies with business in Russia to either withdraw completely, suspend or scale back operations, or delay investments, according to the Yale’s Chief Executive Leadership Institute.
  • Hilton President and Chief Executive Officer Christopher Nassetta (Roundtable Chairman 2006-2009) announced on March 9 the company’s actions in response to the crisis in Ukraine, including:
    • Closure of Hilton’s corporate office in Moscow;  
    • Suspension all new development activity in Russia;  
    • Donation of any Hilton profits from business operations in Russia to the humanitarian relief efforts for Ukraine, and;  
    • Donation of up to 1 million room nights to support Ukrainian refugees and humanitarian relief efforts across Europe, in partnership with American Express, #HospitalityHelps.

  • Marriott International also recently announced the closure of their corporate office in Moscow, along with a suspension in opening upcoming hotels and all future hotel development and investment in Russia. (Marriott statement, March 10) 

Reviving Climate Negotiations 

Capitol Hill night mirror image

  • Separately, House Democrats this week urged the White House to revive negotiations on climate measures that were part of the moribund Build Back Better (BBB) Act. (Business Insider, March 8)
  • A group of 89 House Democrats on March 14 wrote to President Biden stating, “The more than $555 billion in climate investments in the House-passed Build Back Better Act can serve as the building block to restart negotiations.”  (House Democrats’ letter)
  • The Roundtable sent a letter to Congressional tax writers last fall detailing recommendations to improve the BBB Act’s green energy tax provisions. (Roundtable letter, Nov. 16) 

The BBB bill passed the House in November, but stalled in the Senate amid disagreements with key Democratic Senators Joe Manchin (WV) and Kyrsten Sinema (AZ). (Roundtable Weekly, Nov. 19, 2021 and Jan. 21, 2022). It remains uncertain if any revised deal will garner their support. (CNBC, March15) 

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Roundtable and Coalition Weigh In on Sweeping SEC Proposals Impacting Private Fund Investors

Posted on by Trey Jackson

logo - U.S. Securities and Exchange Commission

The Real Estate Roundtable and 12 trade organizations recently responded to a set of sweeping, proposed Securities and Exchange Commission (SEC) rules that would significantly increase the compliance obligations of advisers to “private funds.” (Coalition letter, March 1)

Time Extension Request

  • The coalition letter detailed why time extensions are needed for comprehensive responses to two recently introduced SEC NPRMs (“Notice of Proposed Rulemaking”), which include more than 800 questions and an extensive expansion of cost-benefit analysis requests. The SEC provided a tight deadline for stakeholders to respond to the proposed rules.
  • The SEC issued two NPRMs on Jan. 26 and Feb. 9 that would significantly change how private funds are regulated. If approved, the proposed rules would require private-equity and hedge-fund managers to provide new statements on fund performance, compensation, fees and expenses. The NPRMs passed the Commission on a 3-1 party-line vote, with one dissenting Republican. (Wall Street Journal and PoliticoPro, Feb. 9)

SEC building

  • Currently, under most conditions, private companies are exempt from registration requirements put forth by the SEC, above – instead, they are regulated at the state level, where registration and disclosure requirements vary by state. The proposed rules would increase the compliance burden for private fund advisers, potentially impeding capital formation. (SEC resources: Jan. 26 News Release | Fact Sheet | Proposed Rule and Feb. 9 News Release | Fact Sheet | Proposed Rule)
  • The coalition response provided context to the NPRM requests, noting the deluge of recent SEC regulatory initiatives. The coalition letter stated, “We and our members will need simultaneously to analyze and prepare comments for these proposals as well as other significant proposals on short-selling (with the related re-opened proposal on securities lending), shortening the securities transaction settlement cycle, beneficial ownership reporting, security-based swap position reporting, and cybersecurity risk management (collectively representing more than 1,000 additional pages of text and thousands of additional individual questions from the Commission).”

A “LawFlash” report on the proposed SEC rules is available from Morgan Lewis. The Roundtable’s Real Estate Capital Policy Advisory Committee (RECPAC) will continue to respond to the SEC’s various proposed regulatory initiatives with its industry and coalition partners.

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Roundtable Convenes “Workplace Return” Town Hall Next Week with U.S. Labor Secretary; Industry Coalition Urges Full Capitol Hill Reopening

Posted on by Trey Jackson

Labor Secretary Martin Walsh

U.S. Department of Labor Secretary Martin Walsh will address back-to-the-workplace issues in a March 18 virtual town hall with Roundtable members. Participants will also include Roundtable Chair John Fish (Chairman and CEO, Suffolk); Beacon Capital Partners President and CEO Fred Seigel; Boston Properties CEO Owen Thomas; and Roundtable President and CEO Jeffrey DeBoer. Roundtable members were sent an exclusive registration invitation this week via email. (Roundtable Meetings contact) 

Reopening Momentum 

  • “Americans have learned to deal and cope and live with the coronavirus,” Secretary Walsh recently told Insider (March 4). More employees coming back to the office can “add to job creation and job growth” he explained, as restaurants, retail shops, and other small businesses cater to returning workers.
     
  • The reopening theme was also the focus of a March 9 letter to Senate and House leaders signed by over 200 organizations and companies, including The Real Estate Roundtable. The coalition urged lawmakers to fully reopen Capitol Hill buildings by July 11 “in a way that is safe for all with security measures already being used in many state legislatures.” (Coalition letter, March 9)
     
  • In addition to The Roundtable, other real estate organizations signing the letter to re-open Capitol Hill included the American Hotel & Lodging Association; American Resort Development Association; Building Owners and Managers Association; CRE Finance Council; ICSC; NAIOP, Commercial Real Estate Development Association; and the National Apartment Association. 

2022 Roundtable Policy Agenda 

Virtual SOI 2022 DeBoer and Fish

  • Reopening businesses and the country is an important priority noted in The Roundtable’s 2022 Policy Agenda: “Connection, Commitment, and Collaboration – Supporting Federal Policy Through Experience and Innovation in 2022” sent this week to Roundtable members.
  • In the policy agenda’s introduction, John Fish, above right, and Jeffrey DeBoer, above left, emphasize the national need for a safe and successful return to the physical workplace.
  • “Our state and local economies—as well as our long-term global competitiveness—depend heavily on the innovation, collaboration, and productivity fostered by an in-person work environment,” Fish and DeBoer stated.
  • The Roundtable’s policy agenda states that the nation’s long-term health, economic growth, and strength of small businesses and local governmental budgets all require safe back-to-workplace encouragement. 

Policy Agenda Issues 

RER 2022 Policy Agenda Cover

The Roundtable encourages our members and partner organizations to share the content from our policy agenda on your social media channels or websites by using our communications toolkit.  You may also follow us on social media for RER updates and the latest developments in DC via LinkedIn or Twitter:  

LinkedIn

Twitter

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Long Overdue EB-5 Regional Center Reforms Included in Omnibus

Posted on by Trey Jackson

EB-5 and passport

A reinstatement and major overhaul of the EB-5 investment visa program passed Congress this week as part of the omnibus package that will fund the federal government through Sept 30. President Biden is expected to sign the omni today. (Roundtable news release and EB-5 Fact Sheet)

 EB-5 Reinstatement

  • The EB-5 Reform and Integrity Act is the first significant update to the “regional center” program since its creation by Congress in the early 1990s. The EB-5 language can be found in the Division BB section of the 2022 omnibus appropriations bill.
  • The Act reauthorizes regional centers for five years, which expired on June 30, 2021. The EB-5 program reforms are the culmination of years of hard work by a bipartisan group of Senators and Representatives who negotiated a pragmatic solution to modernize the investment visa program.
  • After President Biden signs the omni, the U.S. Citizenship and Immigration Services (USCIS) can re-start its procedures to review the petitions of tens of thousands of overseas investors who have been in limbo on their green card applications since last July.
  • The Act also sets new program requirements to safeguard national security, deter fraud, and promote urban and rural development with EB-5 financing provided by overseas investors. [Roundtable EB-5 Fact Sheet]

Roundtable Commends Reforms 

John Fish Suffolk CRE background

  • “The EB-5 Reform and Integrity Act gives our country a competitive edge in the global marketplace for foreign capital and it will attract investments from abroad to create jobs here at home,” said Real Estate Roundtable Chair, John Fish [Chairman and CEO, Suffolk], above, “American workers in low-income neighborhoods, downtown business districts and rural markets will benefit from EB-5 modernization because it will bring critical financing to support infrastructure and other economic development projects throughout the country.” (Roundtable news release, March 11)
  • “The Roundtable has advocated for years to clean up the regional center program and we applaud congressional passage of the EB-5 Reform and Integrity Act,” said Roundtable President and CEO, Jeffrey D. DeBoer. “The Act strikes a bipartisan compromise to get the program back on track – and reduces the litigation risk from existing investors who have been waiting in limbo on their visa applications since the program expired last July.”

“We thank House Speaker Nancy Pelosi (D-CA), Senate Majority Leader Charles Schumer (D-NY), Senate Minority Leader Mitch McConnell (R-KY), and House Minority Leader Kevin McCarthy (R-CA) for their bipartisan, bicameral agreement to include comprehensive EB-5 reform in the omnibus appropriations package,” DeBoer continued. “We commend the authors of the EB-5 Reform and Integrity Act, Senators Patrick Leahy (D-VT) and Chuck Grassley (R-IA), for their work in crafting a product that has the support from a diverse stakeholder coalition.” 

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