News Type: Roundtable Weekly

House Democrats Reach Deal for $3.5 Trillion Budget Framework, Schedule September Vote on Bipartisan Infrastructure Bill

Posted on by Trey Jackson

The House of Representatives passed a $3.5 trillion budget resolution Tuesday, after Speaker Nancy Pelosi (D-CA) promised moderate Democrats a September vote on the Senate-passed bipartisan infrastructure bill to garner their support for a framework that sets-up the “reconciliation” process. (Washington Post, Aug. 25)

Why It Matters

  •  “I am committing to pass the bipartisan infrastructure bill by September 27,” Pelosi said. “We must keep the 51-vote privilege by passing the budget and work with House and Senate Democrats to reach agreement in order for the House to vote on a Build Back Better Act that will pass the Senate.” (Speaker Pelosi Statement, Aug. 24; Politico, Aug. 24)

CRE Impact

  • The human infrastructure proposal that may be advanced in the House under budget reconciliation rules would be partially financed by raising taxes on businesses and wealthy individuals – and potentially include a variety of tax increases affecting commercial real estate (see Tax Policy story below)
  • The Real Estate Roundtable held an all-member Infrastructure Town Hall on Aug. 12 to discuss the Senate-passed infrastructure bill, what lay ahead in the House, and the potential impact on commercial real estate.  
  • Rep. Tom Suozzi (D-NY), a member of the tax-writing House Ways and Means Committee, joined Roundtable Chair John Fish (Chairman and CEO, Suffolk), and Roundtable President and CEO Jeffrey DeBoer, for the Town Hall discussion.  (Roundtable Weekly,  Aug. 13)  
  • DeBoer, stated, “This [reconciliation] package may be financed with a variety of tax increases affecting step-up in basis, like-kind exchanges, carried interest and capital gains that would act as a cumulative drag on investment at the exact time when sectors of the economy need incentives to recover from the pandemic. The Roundtable urges Senate and House policymakers to be very cautious as they proceed on the reconciliation bill – so that one-step forward with the physical infrastructure bill is not met with two-steps backward from tax increases.” (Roundtable statement, Aug. 11)

What’s Next

  • Congressional committees are in the process of drafting different sections of the reconciliation package. They have a non-binding deadline of submitting their text by Sept. 15. (Axios, Aug. 24)
  • Reconciliation would likely move in the House first. The House Budget Committee will compile each committee’s individual text into a single package for a floor vote that, if approved, would then be sent to the Senate. 

  • Getting both packages to President Biden’s desk for his signature will be a major challenge. Congressional leadership must consider demands of centrists who balk at the $3.5 trillion price tag for “social” infrastructure, and progressives who believe the $550 billion in new spending for “physical” infrastructure is not big enough to address issues such as climate change. (CNBC, Aug. 25)

When Congress returns after Labor Day, policymakers will face other critical deadlines in addition to their anticipated actions on the infrastructure and reconciliation packages. Legislation is needed after the Treasury Department exhausts its “extraordinary measures” in mid-September to avoid defaulting on the national debt. Congress is also expected to consider a “continuing resolution” to put stop-gap spending measures in place before federal government funds run dry on Sept. 30. (Politico, Aug. 25)

Eviction Moratorium Appeal Denied; Supreme Court Challenge Expected

Posted on by Trey Jackson

image Appeals Court DC Circuit

The D.C. Circuit Court today allowed the Biden administration’s latest federal eviction moratorium to remain in effect, denying an Aug. 14 emergency appeal by the Alabama and Georgia Associations of Realtors to overturn the ban. (Politico and Wall Street Journal, Aug. 20)   

The Legal Challenge 

  • The Realtor groups’ challenge was filed immediately after a federal judge’s ruling allowed the latest eviction moratorium – effective through Oct. 3 – to remain in place until higher courts decide its legality. (Wall Street Journal and Law.com, Aug 13)
     
  • The White House stated its latest moratorium from the Centers for Disease Control and Prevention (CDC) is targeted toward areas that have experienced substantial or high levels of Covid-19 transmission. (CDC news release and Wall Street Journal, Aug. 4). The extension would also allow more time for billions in rent relief appropriated by Congress to reach tenants and landlords. (Time, Aug. 3)
  • Previously, the U.S. Supreme Court ruled that an earlier CDC eviction ban could remain in effect through its expiration on July 31, yet indicated the federal agency had overstepped its authority. Justice Kavanaugh wrote in the high court’s 5-4 decision that another extension would require “clear and specific” legislation from Congress. (New York Times, June 29)
     
  • When Congress could not muster last-minute support in late July to pass an extension, the CDC issued its latest moratorium on Aug. 3. (NBC News and Roundtable Weekly, July 30) 

Impact on Housing Providers 

image Evict Morat July29-2021 letter

  • A coalition of 15 national real estate organizations – including The Real Estate Roundtable –  sent a letter on July 29 to all members of Congress strongly opposing another moratorium extension. The  joint letter called for policymakers to focus on disbursing billions in unspent sums of federal rental assistance appropriated in prior COVID-19 bills – instead of destabilizing rental markets with a legislative eviction moratorium. (Roundtable Weekly, July 30)
  • A massive logjam in states’ disbursement of federal rental aid to tenants and housing providers has compounded the negative economic impact of the eviction moratorium. A National Rental Home Council survey issued in March showed that approximately 23 percent of small landlords leasing single-family rentals were forced to sell at least one, if not all of their properties.
  • Politico also reported on Aug. 14 that nearly 59 percent of tenant households who are behind on rent live in properties with between one and four units – and that 72 percent of those properties are operated by mom-and-pop landlords. 

The Realtors’ current attempt to end the moratorium, considered this week by the D.C. Circuit Court of Appeals, is likely to be appealed to the Supreme Court next week. 

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House Scheduled to Vote Next Week on Rule to Advance both “Physical” and “Human” Infrastructure Packages

Posted on by Trey Jackson

US Capitol view up

The House of Representatives will briefly return to Washington the week of Aug. 23 to vote on measures affecting the future of President Biden’s sweeping infrastructure agenda. (New York Times, Aug. 17) 

Two-Track Approach

  • A group of nine moderate Democrats led by Rep. Josh Gottheimer (D-NJ) informed House leadership on Aug. 12 that they will not support a $3.5 trillion budget resolution encompassing “human” infrastructure initiatives unless the bipartisan “physical” infrastructure bill passed by the Senate last week is approved by the House and enacted. (Bloomberg, Aug. 17 and Roundtable Weekly, Aug. 13)

  • The moderates’ letter to House Speaker Nancy Pelosi (D-CA) stated, “Some have suggested that we hold off on considering the Senate infrastructure bill for months – until the (budget) reconciliation process is completed. We disagree. We will not consider voting for a budget resolution until the bipartisan Infrastructure Investment and Jobs Act passes the House and is signed into law.” (Politico, Aug. 13)
  • Progressive House Democrats countered with the opposite approach, stating that they will not support the bipartisan infrastructure plan unless it is tied to the massive budget reconciliation measure, which addresses child care, health care and climate change. (Axios, Aug. 18)
  • Pelosi this week reiterated her two-track plan to advance both measures in the House despite having just a three-vote margin majority. Republicans are expected to oppose the sprawling “human” infrastructure budget resolution. (BGov, Aug. 18) 

CRE Impact 

image - Roundtable President and CEO Jeffrey DeBoer


The human infrastructure proposal that may be advanced in the House under budget reconciliation rules would be partially financed by raising taxes on businesses and wealthy individuals – and potentially include a variety of tax increases affecting commercial real estate.

  •  The Real Estate Roundtable held an all-member Infrastructure Town Hall on Aug. 12 to discuss the Senate-passed infrastructure bill, what lay ahead in the House and the potential impact on commercial real estate.  Rep. Tom Suozzi (D-NY), a member of the tax-writing House Ways and Means Committee, joined Roundtable Chair John Fish (Chairman and CEO, Suffolk), Roundtable President and CEO Jeffrey DeBoer, and other Roundtable staff for the Town Hall discussion.  (Roundtable Weekly,  Aug. 13 and The Roundtable’s  Bipartisan Infrastructure Deal Fact Sheet and Tax and Fiscal Reconciliation Fact Sheet)  
  • DeBoer, above, stated, “This [reconciliation] package may be financed with a variety of tax increases affecting step-up in basis, like-kind exchanges, carried interest and capital gains that would act as a cumulative drag on investment at the exact time when sectors of the economy need incentives to recover from the pandemic. The Roundtable urges Senate and House policymakers to be very cautious as they proceed on the reconciliation bill – so that one-step forward with the physical infrastructure bill is not met with two-steps backward from tax increases.” (Roundtable statement, Aug. 11)

What’s Next

image - House floor debate

  • Pelosi and House Majority Leader Steny Hoyer (D-MD) laid out a schedule for votes next Monday and Tuesday.
  • The House is scheduled to vote Aug. 23 on a rule that governs floor debate on the $3.5 trillion budget resolution (S Con Res 14), the $550 bipartisan infrastructure bill (HR 3684) and a voting rights bill (HR 4). The chamber is then expected to vote Tuesday on the “human” infrastructure framework and the popular voting rights bill. (CQ, Aug. 16)
  • Approval of the budget resolution would allow the development of legislation to move forward that could pass later this year under “reconciliation” rules without any Republican support. The Senate voted last week to advance the same measure. (Roundtable Weekly, Aug. 13)
  • White House spokesman Andrew Bates this week told Bloomberg, “All three are critical elements of the President’s agenda, and we hope that every Democratic member supports this effort to advance these important legislative actions.” (Bloomberg, Aug. 17) 

Pelosi sent a note to her caucus this week, warning that any delay next week  “jeopardizes the once-in-a-generation opportunity” to enact Biden’s broader legislative priorities. (Politico, Aug. 17) 

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Commercial Real Estate Leaders Report Improving Market Conditions Amid Uncertain Return-to-Office Trends

Posted on by Trey Jackson

Q3 2021 Sentiment Index Chart

Commercial real estate executives report improving market conditions, through consistent growth of various asset classes, despite uncertainty surrounding employees returning to the office, according to The Real Estate Roundtable’s Q3 2021 Economic Sentiment Survey released today. The report shows the continued positive momentum for industrial, multifamily and single-family assets, with hospitality continuing to improve with increased travel. 

Market Conditions

  • “As the commercial real estate industry continues to adapt in the face of the global pandemic, we recognize the changing demands and expectations for hospitality, shopping centers, office buildings, travel and convening spaces,” said Real Estate Roundtable President and CEO Jeffrey DeBoer. “Strong, stable and growing real estate markets can be a driving force for the nation’s economic recovery, and contribute productively to a world struggling to overcome COVID and its variants. Investment in these reimagined spaces presents the opportunity to move the economy forward for the benefit of all Americans.”
     
  • The Roundtable’s Q3 Current Conditions Index of 85 increased 7 points from the previous quarter, the highest index recorded in its thirteen year history.
     
  • The Economic Sentiment 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. The Roundtable’s Overall Q3 2021 Sentiment Index registered at 78 – a one-point increase from the previous quarter. 
     
  • The Roundtable’s quarterly survey shows that 89 percent of respondents believe that general market conditions today are “much better or somewhat better” versus one year ago – with an abundance of available capital compared to one year ago.
  • However, this quarter’s Future Conditions Index of 71 decreased 4 points compared to last quarter, indicating uncertainty still remains while the country continues to recover from the COVID-19 crisis.

Topline Findings:

Chicago skyline upward

  • The Q3 2021 Real Estate Roundtable Sentiment Index registered a score of 78, an increase of 1 point from the second quarter of 2021 and a 36-point increase over Q3 2020. The speed of the economic recovery compared to only 6 months ago has provided more clarity and certainty for specific asset classes, with the biggest looming question marks being the impact of employees returning to the office and rising inflation risk.
     
  • Industrial performed exceptionally well throughout the pandemic and has maintained positive momentum through the first half of 2021. Additionally, multifamily and single-family suburban assets continue to attract strong demand. Previously challenged assets such as hospitality have rebounded and remain hopeful to reach pre-pandemic levels with increased travel and employees returning to the office.
     
  • Assets classes with durability or the perception of durability such as high-quality multifamily, long-term net lease office, and industrial have all hit record levels, all while certain sectors and regional markets (in particular, those relying heavily on mass transit) have yet to fully recover.
     
  • Respondents cited a continued abundance of available debt and equity capital, which has led to significant amounts of capital sitting on the sidelines waiting for attractive deployment opportunities.
  • DeBoer also noted, “Historically, the real estate industry has played a pivotal role in catalyzing economic recovery following national and worldwide events, and we have the opportunity to play that role again. With the recent infrastructure policy developments in Washington, it is a once-in-a-generation opportunity to rebuild cleaner, safer, and more climate-friendly buildings. With private capital readily available for investment, we are hopeful federal and public private partnerships will continue to fuel job creation and equitable economic development needed to continue the progress made in the economic recovery.”

Data for the Q3 survey was gathered in July by Chicago-based Ferguson Partners on The Roundtable’s behalf.  For the full Q3 report, visit here.

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Senate Democrats Pass Budget Resolution that Would Authorize $3.5 trillion “Human Infrastructure” Bill with Large Tax Increases

Posted on by Trey Jackson

DC monuments night

Senate Democrats voted August 11 to advance a $3.5 trillion “human infrastructure” budget resolution, which allows development of legislation that could pass later this year without any Republican support. The budget blueprint passed on a party-line vote of 50-49 the day after the Senate passed a $1.2 trillion “physical infrastructure” bill on a bipartisan basis. (BGov, Aug 11 and Roundtable Weekly, story above) 

Why It Matters 

  • The Senate budget resolution supports President Biden’s wide-ranging domestic priorities that aim to expand the federal social safety net and combat climate change. (New York Times and The Hill, Aug. 11)
  • The sprawling human infrastructure proposal would be partially financed by raising taxes on corporations and wealthy individuals – and potentially include a variety of tax increases affecting commercial real estate.
  • The Senate measure also provided instructions for various committees to craft bills under “reconciliation” budget rules. If approved by the Senate Parliamentarian, the committees’ work would be combined into final legislation that could pass on a majority vote, thereby bypassing a Republican filibuster. (Senate Democratic Memorandum, Aug. 9)
  • The House announced this week that it will return early from summer recess on Aug. 23 to consider the budget resolution. (Associated Press and CQ, Aug. 11)
  • House Speaker Nancy Pelosi (D-CA) reiterated on Aug. 11 that until the Senate finishes and passes the massive reconciliation bill, the House will not vote on the physical infrastructure legislation. Other Members of the Democratic Caucus, including Rep. Josh Gottheimer (D-NJ), co-chair of the bipartisan Problem Solvers Caucus, have called on Congressional Leaders to decouple the measures and send the bipartisan infrastructure bill to the President without delay. (Politico, Aug. 11 and The Hill, Aug. 11) 

Taxes & CRE  

Philadelphia, PA skyline

Roundtable President and CEO Jeffrey DeBoer commented on the Senate’s $3.5 trillion reconciliation bill and the tax proposals under consideration.  

  • DeBoer on Aug 11 stated, “This [reconciliation] package may be financed with a variety of tax increases affecting step-up in basis, like-kind exchanges, carried interest and capital gains that would act as a cumulative drag on investment at the exact time when sectors of the economy need incentives to recover from the pandemic. The Roundtable urges Senate and House policymakers to be very cautious as they proceed on the reconciliation bill – so that one-step forward with the physical infrastructure bill is not met with two-steps backward from tax increases.” (Roundtable statement, Aug. 11)
  • The Roundtable this week produced a summary of budget reconciliation tax issues that could directly impact commercial real estate, including: 
    • Like-Kind Exchanges
    • Capital Gains
    • Pass-through Business Income
    • Step-up in Basis and Taxation of Gains at Death
    • Carried Interest
    • Energy Efficiency Incentives
    • Affordable Housing Incentives 

Roundtable Infrastructure Town Hall 

Roundtable Infrastructure Town Hall - image capture

  • The Roundtable held an all-member Infrastructure Town Hall on Aug. 12 to discuss the Senate reconciliation measure and what it means for commercial real estate. Rep. Tom Suozzi (D-NY), a member of the tax-writing House Ways and Means Committee, center in photo,  joined Roundtable Chair John Fish, top right, Jeffrey DeBoer, top left, and other Roundtable staff for the Town Hall discussion.

The congressional debate on infrastructure is expected to extend into the fall, when policymakers face multiple other deadlines that converge on Sept. 30 – government funding for FY2022, reauthorization of funding for surface transportation programs, and reauthorization of the National Flood Insurance Program. The Roundtable is scheduled to discuss all these issues at its Fall Meeting on Oct. 5 in Washington, DC (Roundtable-level members only). 

#  #  #

Senate Passes Historic Bipartisan Infrastructure Legislation

Posted on by Trey Jackson

Senate Infrastructure Vote Total
The Senate on Aug. 10 passed a historic, bipartisan $1 trillion+ infrastructure bill that would allocate $550 billion in new spending to improve the nation’s transit, utilities and broadband. The Infrastructure Investment and Jobs Act (H.R. 3684) was approved 69-30, with support from all Democrats and 19 Republican Senators, including Minority Leader Mitch McConnell (R-KY). (Wall Street Journal and New York Times, Aug. 10)   

Why it Matters 

  • Real Estate Roundtable Chair John Fish (Chairman and CEO, Suffolk) on Aug. 11 commented, “With the Senate’s passage of this bill, we are one step closer to realizing a once-in-a-generation opportunity to rebuild and reimagine the buildings of tomorrow. We applaud both this historic investment in our nation’s infrastructure, and the members of Congress who have reached across the aisle to find common ground.”
  • Real Estate Roundtable President Jeff DeBoer added, “By devoting more than a trillion dollars toward American infrastructure projects, this long-term investment in the nation’s roads, bridges, mass transit, high-speed rail, broadband, power grid, water pipes, and electric vehicle charging will prompt positive, transformational change for our communities and citizens.” (Roundtable statement, Aug 11)
  • The Roundtable held an all-member Infrastructure Town Hall on Aug. 12 to discuss the Senate bill, its prospects in the House and what it means for commercial real estate. Rep. Tom Suozzi (D-NY), a member of the tax-writing House Ways and Means Committee, joined Roundtable Chair John Fish, Jeffrey DeBoer and other Roundtable staff for the Town Hall discussion. (See Tax Policy story below and  The Roundtable’s Bipartisan Infrastructure Deal Fact Sheet)
  • Roundtable policy specialists also briefed members of the CREW (Commercial Real Estate Women) Network on Aug. 11 about how the infrastructure legislation could potentially impact CRE.  

BID Details 

Roundtable Infrastructure Senate Bill Summary August 5, 2021

  • The 2,700-page Senate bill evolved from bullet points to legislation after a painstaking journey of more than a month by a group of bipartisan senators who negotiated with the Biden Administration. (Politico and Senate Group Joint Statement, Aug. 10)
  • President Biden remarked about the Senate bill, “Forecasters on Wall Street project that over the next 10 years our economy will expand by trillions of dollars, and [the legislation] will create an additional 2 million jobs.” (White House Remarks, Aug. 10)
  • The amounts that would be invested by the “Bipartisan Infrastructure Deal” (BID) to various infrastructure categories are listed in White House summaries and The Roundtable’s BID Fact Sheet. 
  • The BID seeks no tax increases on families or businesses as “pay-fors.”
  • The Senate bill includes Roundtable-supported measures that will utilize public-private partnerships to reach ‘physical’ infrastructure goals, streamline the federal permitting process, and improve key federal energy data used in EPA building labels.

What’s Next 

U.S. Capitol dome interior

  • The Senate’s “physical” infrastructure package now goes to the House.
  • House Speaker Nancy Pelosi (D-CA) has insisted that she will not bring up the Senate’s “physical” infrastructure bill until the Senate also passes a sprawling $3.5 trillion “human” infrastructure bill with funding for climate programs, health care, education and child care.  (New York Times, Aug. 10). 

Majority Leader Steny Hoyer (D-MD) announced the House will interrupt its summer recess and return to session on Aug. 23 to consider the Senate-passed budget resolution that Democrats have insisted is a precursor to votes on the bipartisan infrastructure deal. (NBC News, Aug. 10) (See “reconciliation” story below) 

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Senate Vote on Bipartisan “Physical” Infrastructure Deal Expected Soon, Laying Groundwork to Consider “Human” Infrastructure on Separate Track

Posted on by Trey Jackson

The Senate processed amendments this week on bipartisan legislation for hundreds of billions in new investments in the nation’s “physical” infrastructure. Majority Leader Chuck Schumer (D-NY) pushed to continue votes this weekend on the bipartisan measure – with further plans next week to separately consider an anticipated $3.5 trillion budget resolution for “human infrastructure” designed to pass with only Democratic support. (BGov, Aug. 6)

Bipartisan “Physical” Infrastructure Deal

  • The Senate’s Bipartisan Infrastructure Investment and Jobs Act ( text as of Aug. 3 | section-by-section – also known as the “Bipartisan Infrastructure Deal” (BID) – proposes $550 billion in new infrastructure investment.
  • Summaries and fact sheets from the Biden Administration break down the amounts invested in the BID’s various infrastructure categories. The bipartisan deal is estimated to create around 2 million jobs per year over the next decade.
  • The bill needs 60 votes to pass in the Senate, requiring support from at least 10 Republicans.
  • The BID includes no new tax increases. Most of its proposed “pay-fors” involve repurposing previously enacted COVID relief funds.
  • Senate policymakers struggled to complete work on the bipartisan deal this week amid concerns over taxation on cryptocurrency and yesterday’s release of a score by the Congressional Budget Office score, estimating the bill would add $256 billion to the deficit over 10 years. (Politico, Aug. 5; Wall Street Journal, Aug 6; The Washington Post, Aug. 6)

The BID, Real Estate, and Community Development

  • The Real Estate Roundtable has summarized elements of the BID of particular interest to real estate owners and community developers, that align with The Roundtable’s longstanding infrastructure policies.  [“Spending and Other Provisions Pertinent to Real Estate and Community Development”]
  • The Roundtable’s summary addresses the BID’s provisions for:
    • Billions of proposed investments in various infrastructure asset classes dedicated to roads, bridges, mass transit, high-speed rail, broadband, the power grid, water pipes, and electric vehicle charging;
    • Supporting public-private partnerships;
    • Streamlining the federal permitting process; and
    • Improving the key federal energy data that supports EPA building labels (Roundtable Weekly, July 16) 

“Human” Infrastructure Package

  • If the BID legislation is approved,  it would prompt the Senate to move to a $3.5 trillion budget plan that includes President Biden’s wide-ranging domestic priorities supporting “human infrastructure.”
  • No Republicans are expected to support the $3.5 trillion measure. Democrats must first pass a joint budget resolution to avoid a Senate filibuster, that authorizes the use of special “reconciliation” rules and sets a course for passage on a party-line vote
  • Senate Budget Committee Chairman Bernie Sanders (D-VT), above, signaled that the reconciliation package would include spending for health care, child care, education, paid family and medical leave, and affordable housing. Reconciliation is also expected to address immigration and climate change matters. ( Wall Street Journal, Aug. 3)

After Labor Day, Democratic members are expected to meet to decide on which provisions to include in the human infrastructure package, including tax increases on businesses and individuals.  

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CDC Issues New Eviction Moratorium Until Oct. 3; Realtor Groups File Legal Challenge

Posted on by Trey Jackson

The Biden administration reversed course this week and issued a new federal eviction moratorium on Aug. 3, responding to pressure from progressive Democrats to allow more time for billions in rent relief appropriated by Congress to reach tenants and landlords. (CDC news release and Wall Street Journal, Aug. 4) 

New 60-Day Eviction Ban 

  • The new ban from the Centers for Disease Control and Prevention (CDC) is in effect until Oct 3.
  • It applies to about 80% of U.S. counties with “substantial” or “high” COVID-19 transmission rates, and covers about 90% of the U.S. population. ( Reuters, Aug 4 and CDC order, Aug. 3)
  • The previous eviction moratorium expired on July 31. A U.S. Supreme Court majority in June indicated the federal-level ban exceeded CDC’s authority.
  • President Biden initially stated that the Supreme Court’s action prevented another CDC extension, and called on Congress to pass 11th-hour legislation establishing a new moratorium. House Democrats last Friday failed to muster enough last-minute votes to pass an extension. ( The Hill, July 30; Roundtable Weekly, July 30) 

Legal Challenge Redux 

  • Upon the Administration’s about-face in issuing the new moratorium, President Biden said it is “likely to face obstacles” in court. (White House remarks, Aug. 3 and Associated Press, Aug. 4)
  • The latest eviction ban prompted the Alabama and Georgia Associations of Realtors to file an emergency motion in D.C. federal trial court before the same judge who previously ruled that the CDC had overstepped its authority in imposing the first eviction moratorium. (Politico and Washington Post and National Association of Realtors’ statement, Aug. 4) 

Need to Accelerate Federal Rent Assistance

  • The Realtor groups’ motion adds more pressure on state and localities to distribute billions allocated by federal policymakers to assist renters and housing providers – an effort that has faced severe bottlenecks and delays.
  • Only 6.5 percent of $46.5 billion allocated by Congress for rental aid has found its way to state and localities in the first half of 2021, according to a recent Treasury Department report.  (Washington Post, July 21 and Bloomberg and July 22)
  • Treasury’s Emergency Rental Assistance program, overseen by Senior Advisor to the President Gene Sperling, now faces a 60-day race for states and localities to distribute funds to tenants and landlords while the newest CDC order is in effect. 

Sperling stated during an Aug. 2 White House press conference that the Emergency Rental Assistance is “so important [because] it helps struggling landlords and struggling tenants. It can pay up to 18 month, forward or backwards, of back rent or back utilities. So, it is a way to make a landlord, who is struggling, whole, while also keeping that tenant and their family safe and secure.” 

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Roundtable Elects FY 2022 Leadership; 2021 Annual Report Released

Posted on by Trey Jackson

The Real Estate Roundtable this week announced its new FY2022 leadership, with John F. Fish (Chairman & CEO, Suffolk), above, elected as Chair for a three-year term starting July 1, 2021 – following an effective, productive term by Immediate Past Chair Debra A. Cafaro (Chairman & CEO, Ventas, Inc.). The Roundtable’s membership also approved a 22-member Board of Directors and committee officers. ( Roundtable news release, Aug. 5)

Policy Leaders

  • “I am honored and humbled to assume this new role at such a pivotal moment for the real estate industry. Our communities are facing a host of challenges – from unprecedented political polarization, to the growing threat of climate change, to the comeback from the global pandemic – but where we see obstacles ahead, we also see opportunity to expand jobs, provide housing, and assist businesses evolve in the post-Covid economy,” said John Fish, Real Estate Roundtable Chair.
  • Fish also recently discussed infrastructure issues, the impact of the pandemic on commercial real estate and the industry’s leadership role in national policy issues with Roundtable member Willy Walker (Chairman and CEO of Walker & Dunlop) on the  Walker Webcast.  (Bisnow and Connect, July 21 and Roundtable Weekly, July 23)
  • The Roundtable’s Immediate Past Chair, Debra Cafaro noted, “It has been an honor and privilege to serve as chair for the last three years, and I am delighted to pass the baton to my friend and colleague John Fish. John is uniquely well-positioned to lead this organization as we move forward with the issues of economic recovery from the pandemic, job creation, sustainability, infrastructure and tax policy, which are at the forefront of policy debates in Washington.”
Real Estate Roundtable Leadership

Photo – center: Debra Cafaro, top right: John Fish, top left: Jeffrey DeBoer

  • Cafaro was recently recognized as a “Diversity Champion” for her efforts with The Roundtable and her company Ventas on equity, diversity and inclusion by Real Estate Forum magazine in their “Women of Influence” July-August issue. The Forum’s sister publication, GlobeSt.com, also featured the award winners.
  • Roundtable President and CEO Jeffrey DeBoer commented, “We are committed to sustainable national policies that reinforce and expand long-term economic growth and opportunities for all, spur job creation and encourage capital formation.”  DeBoer added, “The real estate industry provides jobs for tens of millions of people, is a significant source of revenue for local governments to help fund schools, hospitals and much needed community services, and is a key investment allocation for pensions and other retirement savings funds.  I thank Debra for her leadership, and look forward to working closely with our new chair John Fish on these policy issues and to continuing The Roundtable’s fact-based, data driven advocacy work.”
  • The Roundtable recently released its 2021 Annual Report, which shows its effective policy activities in the areas of tax … capital and credit … housing and infrastructure … energy and climate … and homeland security.  The publication’s introduction also addresses The Roundtable’s path ahead as the industry seeks to emerge out of the pandemic stronger than ever.

Roundtable Board and Committee Leadership 

The Roundtable’s membership represents over 3 million people working in real estate; some 12 billion square feet of office, retail, and industrial space; over 2 million apartments; and more than 3 million hotel rooms. It also includes senior, student and manufactured housing as well as medical office, life science campuses, data centers, cell towers, and self-storage properties. The collective value of assets held by Roundtable members exceeds $3 trillion.

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House Republicans Urge Biden Administration to Preserve Like-Kind Exchanges

Posted on by Trey Jackson

A group of 88 House Republicans, led by Rep. Randy Feenstra (R-IA), above, sent a letter to President Joe Biden on Aug. 3 urging him “not to damage the livelihood of farmers everywhere by repealing or changing like-kind exchanges.” ( Coalition letter and Feenstra news release)

Agriculture Sector Impact 

  • Like-kind exchanges (LKEs) allow real estate, farming, and other businesses to defer capital gain when exchanging real property used in a trade or business for property of a like kind. Like-kind exchanges also help businesses to grow organically, with less debt, by reinvesting gains on a tax-deferred basis in new and productive assets.
  • President Biden has proposed restricting the use of LKEs by limiting deferred gain in any one year to no more than $500,000 for single taxpayers and $1 million for married taxpayers. (Treasury Department’s Summary of Revenue Proposals, “Green Book” budget documents, and Roundtable Weekly, April 30)
  • The coalition of House policymakers emphasized in their Aug. 3 letter how LKEs allow farmers and other small business owners to improve their operations and invest in better income-producing properties. The letter noted that four out of five individuals who utilize these tax deferments are qualified as small investors by the IRS.
  • The letter stated, “For the agricultural community, a cap on like-kind exchanges would limit farmers’ ability to improve their operations through combining acreage, purchasing more productive land, and mitigating environmental impacts. Further, capping like­kind exchanges could make it more difficult to restructure businesses so that young or beginning farmers can join operations. Retiring farmers could be prevented from using like-kind exchanges to exchange their farm or ranch for other real estate, allowing for the next generation to take over, without depleting their life savings.”
  • The 88 policymakers also commented how the negative impact of the administration’s LKE proposal would radiate outward from individual farm owners and agricultural investors into the larger agricultural sector and the national economy at large. 

Roundtable’s Strong Support for LKEs 

  • On May 27, a broad business coalition that included The Real Estate Roundtable held a virtual briefing for members of Congress and their staff on the longstanding economic importance of LKEs – and detailed the potential negative unintended consequences of limiting section 1031. (Roundtable Weekly, May 28)
  • The briefing, moderated by Roundtable President and CEO Jeffrey DeBoer, included expert speakers and featured recent research into the macro-economic impact of LKEs. (See “The Tax and Economic Impacts of Section 1031 Like-Kind Exchanges in Real Estate” by Professor Milena Petrova and Dr. David Ling)
  • On May 18, The Roundtable and others submitted detailed comments to the Senate Finance and House Ways and Means Committees on like-kind exchanges and other pending tax issues. (Roundtable Weekly, May 21).  Additionally, in March, The Roundtable and 30 national real estate, housing, environmental, farming, ranching, and forestry organizations wrote to key policymakers to underscore the vital importance of real estate like-kind exchanges. (Roundtable Weekly, March 19)

The coalition “1031 Builds America” provides an online method for stakeholders to share their experiences with LKEs with members of Congress, and urge them to preserve Section 1031. 

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