News Type: Roundtable Weekly

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

Posted on by Trey Jackson

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

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

Fed Concerns on Pandemic & CRE

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

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

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

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

Posted on by Trey Jackson

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

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

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

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Legislation Reintroduced in the House to Change Taxation of Carried Interest

Posted on by Trey Jackson

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

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

The Roundtable & Carried Interest

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

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

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

Posted on by Trey Jackson

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

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

Construction Industry’s Role

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

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

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Roundtable-Backed Corporate Diversity Bill Reintroduced in House and Senate

Posted on by Trey Jackson

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

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

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

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Biden Policy Eases Funding Constraints on Mass Transit Projects

Posted on by Trey Jackson

NYC bridges

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

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

Movement on Infrastructure

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

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

Posted on by Trey Jackson

U.S. Capitol

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

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

Foreclosure Moratorium Extended

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

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

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President Biden Focuses on Infrastructure Policy Plan With Key Senate Committee Leaders

Posted on by Trey Jackson

Infrastructure Meeting at White House with Senate EPW members

The critical need for investing in modern and sustainable infrastructure was the focus of a Feb. 11 White House meeting between President Joe Biden, Vice President Kamala Harris, Transportation Secretary Pete Buttigieg, and a bipartisan group of senators from the Environment and Public Works (EPW) Committee.

  • The Senate EPW committee was represented by Chairman Thomas Carper (D-DE), Transportation Subcommittee Chairman Ben Cardin (D-MD), Ranking Member Shelley Moore Capito (R-WV), and former Chairman James Inhofe (R-OK).
  • Biden stated at the meeting that the EPW Committee “is central to everything that’s going to happen” on infrastructure. (White House Remarks and meeting video, Feb. 11). White House Press Secretary Jen Psaki remarked that the meeting “was a reflection of how important it is [for Biden] to meet with bipartisan leaders and have a discussion about what’s required in states and communities.” (White House press conference video, Feb. 11) 
  • The president noted the importance of investing in infrastructure to maintain Americas’s international competitiveness, referring to China’s advancements in high-speed rail and automobiles by stating, “if we don’t get moving, they’re going to eat our lunch.” (Washington Post, Feb. 11)
  • Sen. Cardin said after the meeting that “it’s going to be a challenge to… have adequate revenues to fund transportation moving forward.” Congressional focus on an infrastructure package is widely expected to take place after the legislature acts on the next round of COVID-19 relief. (Politico, Feb. 11). 
  • Sens. Cardin and Carper led a Feb. 9 letter from nearly 50 Democrats from both the House and Senate to Secretary Buttigieg, regarding the need for federal transportation policies to create jobs while also reducing carbon pollution, with an emphasis on reducing vehicle tailpipe emissions.
  • In a December 16, 2020 letter, The Roundtable and 12 national real estate organizations provided detailed recommendationsto then President-elect Biden and Vice President-elect Harris that included infrastructure funding and modernization as engines to drive recovery and job growth from the economic fallout of the COVID-19 pandemic. 
  • The December industry letter stated, “A strong national infrastructure is vital to the health of the nation’s real estate, and vice versa. Roads, bridges and mass transit enhance the values of nearby properties, which in turn generate greater tax revenues to fund even more infrastructure assets.”
  • The Roundtable is also part of Build by the 4th coalition led by U.S. Chamber of Commerce, which encourages the Biden Administration and the new Congress to pass a comprehensive infrastructure deal by Independence Day 2021.

The Biden Administration is expected to reveal its infrastructure package soon as part of its “Build Back Better” agenda to spur economic recovery from the repercussions of the pandemic.

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Roundtable’s ED&I Committee Releases Mission Statement Aiming to Advance Racial Equity in CRE

Posted on by Trey Jackson
Roundtable Meeting

The Real Estate Roundtable’s Equity, Diversity and Inclusion (ED&I) Committee finalized its mission statement on Wednesday, with a key objective to create more economic opportunities for Black, Latino and other historically under-represented groups to prosper in the commercial real estate industry.

  • The ED&I Committee’s mission statement draws from the Biden-Harris Administration’s executive order “On Advancing Racial Equity and Support for Underserved Communities” (Jan 20), as well as data recently reported by Citi GPS on the economic cost of racial inequality in the U.S.

  • The statement provides a four-part mission to:
    • Encourage RER’s members to create equal opportunities in real estate’s management, workforce, supply chain, and capital markets for Black, Latino, and other professionals historically under-represented in the CRE industry;
    • Develop an anti-discrimination, pro-inclusion federal policy agenda within The Roundtable’s traditional spheres of influence as an advocate on tax, capital markets, ESG, housing, infrastructure, and immigration matters;
    • Forge alliances by The Roundtable with civil rights and minority business organizations; and
    • Increase diversity among Roundtable membership, directors, contractors, and staff.

       

  • Roundtable Board Member and ED&I Committee Chairman Jeff Blau (CEO, Related Companies) stated, “The creation of a mission statement is a foundational step that will guide The Roundtable in its crucial work to create equity and affect real change in the real estate industry. Diversifying our industry is not a task that can be left to a few, rather it is a responsibility for all of our members and I look forward to continuing to work with RER to advocate for and drive meaningful progress.”

  • The ED&I Committee’s initial focus will be on initiatives to boost opportunities for minority-owned firms in CRE’s supply chain of service providers, and support appropriate federal policy proposals to improve diversity in corporate governance.

  • The Roundtable is also a “Founding Diversity Partner” in a national program recently launched by the Real Estate Executives Council (REEC) — the leading trade association formed to promote the interests of minority executives in the CRE industry.  The Roundtable’s ED&I mission statement reflects the goals of REEC’s framework, including objectives to increase corporate spend on minority-owned vendors, develop a pipeline of racially diverse CRE talent, and improve access to capital and credit for minority owned investment managers.  (Roundtable Weekly, Feb. 5)

  • NAIOP and the National Multifamily Housing Council (NMHC) are also among the founding partners in REEC’s initiative.

“The events of the last year have laid bare the injustices faced by Black Americans and other minorities in our economic, public health, and social institutions,” said Jeffrey D. DeBoer, President and CEO of The Real Estate Roundtable.  “The Roundtable must do our part to help create an equal playing field of opportunities for all Americans to prosper in our industry.” (ED&I Mission Statement, Feb. 10)

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House Committees Advance Provisions Supporting President Biden’s $1.9 Trillion Virus Relief Proposal; Democrats Aim to Pass Final Bill by Month’s End

Posted on by Trey Jackson

U.S. Capitol

House committees this week advanced legislative language that will transform President Joe Biden’s $1.9 trillion pandemic relief package proposal into a consolidated bill and provide details on aid for states and local communities; assistance for renters and homeowners; and support for small businesses.

  • The progress in the House is a positive development that brings much-needed economic relief and funding to defeat COVID-19 one step closer to enactment. The Real Estate Roundtable consistently has urged policymakers to take aggressive actions to combat the pandemic.
  • Roundtable President and CEO Jeffrey DeBoer said,” The Real Estate Roundtable is encouraged by both Democratic and Republican efforts to work toward additional economic relief from the pandemic. Given the continuing great need for additional assistance to cities, people and businesses, we continue to urge policy makers to find a path forward.” (Roundtable Weekly, Feb. 5)
  • Democrats plan to pass the final legislation through “reconciliation” procedural protections, which will prevent a filibuster by Republicans when the measure reaches the 50-50 Senate. House Speaker Nancy Pelosi (D-CA) yesterday said she expects the House will approve a bill “by the end of February so we can send it to the president’s desk before unemployment benefits expire” on March 14.  (CNBC, Feb. 11 and Roundtable Weekly, Feb. 5)
  • The House Ways and Means Committee on Feb. 11 approved over $630 billion in new tax relief, including $460 billion in 2021 alone.  Their provisions include $1,400 payments to individuals; credits for children, childcare and dependent care; and expansion of the Earned Income Tax Credit. The temporary federal unemployment and benefit would also be extended through August 29, 2021, increasing the weekly benefit from $300 to $400. (Wall Street Journal, Feb. 11and Ways and Means Committee mark-up videos)
  • The committee proposal – “Subtitle G. Budget Reconciliation Legislative Recommendations Relating to Promoting Economic Security – passed on a partisan 24-18 vote with  no amendments. (Section-by-section summary and Joint Committee on Taxation (JCT) description)

House Ways and Means Chairman Richard Neal (D-MA)

  • House Ways and Means Committee Chairman Richard E. Neal (D-MA), above, stated, “Over the last two days, the Ways and Means Committee has considered aggressive, science-based solutions that will deliver the urgent relief our country so desperately needs. From unemployment benefits to health care affordability, the work we’ve done is substantial, and it is exactly what the American people have been calling on us to do to meet this moment.” (Ways and Means news release, Feb. 11)
  • The House Financial Services Committee was also one of the House committees this week that held legislative markup sessions to formulate legislative details for Biden’s pandemic relief proposal. (Financial Services Committee Instructions, Feb. 4 and Markup videos, Feb. 10)
  • In her markup opening statement Financial Services Committee Chairwoman Maxine Waters (D-CA) noted, “The package also includes $25 billion to provide rental assistance, including $5 billion towards 70,000 emergency vouchers and funding directed to rural and tribal communities.  The package also includes language … to provide $10 billion to support struggling homeowners, who face a looming foreclosure crisis. And, it … provides $10 billion to support small businesses, including minority-owned businesses that are closing their doors at historic rates.”
  • More than half of 2.7 million active home mortgage forbearance plans are set to end in March, April, May or June, according to mortgage-data firm Black Knight Inc. (Wall Street Journal, Feb. 9)
  • During the Small Business Committee’s Feb. 10 markup, $50 billion in emergency pandemic aid for small businesses was approved. Committee Chairwoman Nydia M. Velazquez said, “Surveys show that one in three small business owners will not survive the next few months without additional financial support.” (Rep. Velaquez opening statement, Feb. 10)
  • The committee’s language would also provide $25 billion for restaurants and bars under a new Small Business Administration program, and $15 billion for “economic injury disaster” loans.  (Washington Post and BGov, Feb. 11)

In the Senate, the pandemic relief package is expected to go straight to the Senate floor, circumventing the committee “mark-up” process, due to the ongoing impeachment trial of former President Donald Trump, which may conclude this weekend. (Bloomberg, Feb. 11)

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