Category: News

House Democrats Pass Bill to Extend FY22 Government Funding and Suspend Debt Ceiling; Senate Republicans Plan to Oppose

Posted on by Trey Jackson

U.S. Capitol from side with clouds

House Democrats on Sept. 21 passed a short-term funding bill that would keep federal agencies open until Dec. 3 while suspending the debt limit through December 2022. The bill, passed on a party-line vote (220-211) faces bleak chances of Senate approval, where 60 votes are needed to avoid a filibuster in the evenly divided upper chamber. Republicans object to linking the debt ceiling to FY22 government funding. 

Shutdown, Default Loom 

  • The short-term bill to extend funding for government operations at current levels, known as a Continuing Resolution (CR), would avoid a partial government shutdown on Oct. 1. Funding for programs affecting national flood insurance and surface transportation are also scheduled to expire Sept. 30.
  • Senate Minority Leader Mitch McConnell (R-KY) stated Democrats need to separate the CR from legislation that would suspend or increase the debt limit, which the GOP will not support. (Louisville Courier-Journal, Sept. 23)
  • Meanwhile, Treasury Secretary Janet Yellen issued a stark warning to policymakers that they must raise or suspend the debt ceiling as soon as possible – or the federal government will default on its financial obligations sometime in October. (Wall Street Journal, Sept. 19 and Reuters, Sept. 22)
     
  • Yellen stated, “Doing so would likely precipitate a historic financial crisis that would compound the damage of the continuing public health emergency. Default could trigger a spike in interest rates, a steep drop in stock prices and other financial turmoil. Our current economic recovery would reverse into recession, with billions of dollars of growth and millions of jobs lost.” 
  • Treasury has been spending down its reserves since Aug. 1, when the current two-year debt ceiling suspension ended. Yellen warned that hitting the debt ceiling would result in a halt of social security payments to nearly 50 million seniors for a time. Additionally, troops could go unpaid and millions of families who rely on the monthly child tax credit could see delays. (Axios, Sept. 23) 
  • A coalition of 13 real estate trade organizations, including The Roundtable, last week urged congressional leaders to raise the statutory debt limit as soon as possible. The letter stated, “Given the more than $8.6 trillion in mortgage debt backed by the federal government through Fannie Mae, Freddie Mac, Ginnie Mae and other federal agencies, the housing and real estate markets are particularly susceptible to any instability stemming from concern about the U.S. meeting its financial obligations.” (Coalition letter, Sept. 16)  

Policymakers face the debt ceiling and FY22 government funding deadlines next week as Democrats struggle to advance sprawling legislative bills on infrastructure (see Infrastructure story above). 

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Positive Transit Measures Included in Reconciliation Package

Posted on by Trey Jackson

Infrastructure Virginia highway

The House Transportation and Infrastructure (T&I) Committee this week marked-up its $57.3 billion piece of the reconciliation package with a focus on mass transit and high-speed rail.

  • Many of the T&I measures are now in line with the Biden administration’s original transit priorities, which were pared down in the Senate’s final physical infrastructure bill. (Washington Post, Sept. 10)

  • Roundtable-supported measures in the T&I Committee’s bill include:

    • A competitive federal grant program to support transit access for affordable housing projects and improve mobility for low-income riders; 
    • Grants administered by the Federal Highway Administration to support transportation equity and reconnect communities divided by “existing infrastructure barriers;”
    • Funds to improve high-speed rail corridors;
    • Credit risk assistance to develop rail infrastructure under the Railroad Rehabilitation and Improvement financing (RRIF) program; and
    • Funds to convert federal buildings owned or managed by the General Services Administration to “high-performance green buildings.”    
  • Separately, the Ways and Means Committee’s package also proposed favorable tax-exempt bond financing improvements to attract greater public-private partnership investments in transportation projects.

Timing for a House vote on the sprawling reconciliation bill is uncertain. Modifications to the tax, energy or transportation sections of the bill could be introduced when it is sent to the House Rules Committee, which determines floor action – or through an amendment on the floor. House Speaker Nancy Pelosi (D-CA) can afford to lose only three votes when the final legislation comes to a vote. (Bloomberg, Sept. 15)

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Roundtable Raises Concerns about New and Complex Senate Proposal to Raise Taxes on Real Estate Partnerships

Posted on by Trey Jackson

Real Estate Roundtable President and CEO Jeffrey DeBoer expressed strong concerns following the Sept. 10 release of Senate Finance Committee Chairman Ron Wyden’s (D-OR) draft legislation to restructure pass-through tax rules and raise $172 billion in additional tax revenue from the country’s 4 million partnerships and LLCs. (Wyden Draft, Proposal Overview and Summary)

Possible Economic Disruption

  • DeBoer stated, “Partnerships are used to bring parties together to create and grow businesses that propel job creation, new investment, and productive economic activity. Partnerships contribute immensely to the culture of dynamic entrepreneurship and risk-taking that is missing in many parts of the world where business activity is dominated by large, public corporations. In this current environment, Congress should be working on ways to encourage and strengthen partnerships, not cut their knees out from under them.”
  • Over the last several decades, partnerships have grown to become a dominant form of business organization in the United States, accounting for $8.7 trillion in annual business receipts and $34.3 trillion in total assets, according to the IRS.
  • Senator Wyden’s proposal, if enacted, could have enormous and unanticipated consequences for U.S. real estate, capital investment, and economic activity. Real estate, rental, and leasing businesses represent more than half (50.4 percent) of all partnerships.
  • “The Chairman’s proposal is big, comprehensive, and not yet vetted in any meaningful way. Partnership taxation is a complicated area of the law that has evolved over decades. The proposals would apply retroactively to economic arrangements negotiated years ago. Past experience with retroactive changes to partnership tax law, in 1986, generated huge and damaging economic disruption, including massive bankruptcies, stress on all lenders, and the end of the saving and loan industry. We don’t need that kind of rash policy action again,” DeBoer added.

Details Senate Finance Committee Chairman Ron Wyden (D-OR)

  • Proposals in Chairman Wyden’s discussion draft that would have a significant impact on real estate partnerships include:
  • Modifying the rules for determining whether a partner has recourse debt with respect to partnership property. The provision would require all partnership debt to be allocated in accordance with partnership profits except where a partner is the lender (sec. 752).
  • Restricting the methods available for allocating the tax attributes of contributed property among the partners in a partnership by mandating the remedial method under section 704(c).
  • In the case of property contributed to a partnership with built-in gain, requiring gain recognition by the contributing partner if the property is subsequently distributed to another partner, even if the distribution occurs after 7 years (e.g., the “mixing bowl” rule that currently applies for 7 years would apply forever).
  • Mandating partnership basis adjustments that relate to disparities between inside and outside partnership basis that arise due to partnership distributions or transfers of partnership interests. These basis adjustments are currently elective under section 754 and mandated in only certain substantial cases in sections 734 and 743.
  • Other provisions in the draft legislation would: eliminate substantial economic effect as a basis for partnership allocations and instead require partnerships to make allocations in all instances based on the “partners’ interests in the partnership” standard (except in certain “abusive” situations involving related partners). Among the other proposed changes, the bill would also subject publicly traded partnerships that earn qualifying passive income to corporate-level taxation.

The Wyden proposal comes as Congressional Democrats are seeking new revenue sources to finance their ambitious $3.5 trillion human capital initiative.

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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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2021 Annual Report – Meeting Today’s Challenges & Shaping Tomorrow’s Opportunities

Posted on by Trey Jackson

View Full Report – 2021 Annual Report – Meeting Today’s Challenges & Shaping Tomorrow’s Opportunities

National Policy Issues Dominate Roundtable Annual Meeting; John F. Fish Succeeds Debra A. Cafaro as Roundtable Chair

Posted on by Trey Jackson
2021 Annual Roundtable Meeting image

National lawmakers and industry leaders this week discussed a wide range of policy issues – including cybersecurity, infrastructure, climate, taxes, and post-pandemic reopening of businesses – during The Real Estate Roundtable’s 2021 Annual Meeting, where John F. Fish (Chairman and CEO, Suffolk) was elected as Roundtable Chair, effective July 1. (Watch Incoming Chair Fish’s remarks) 

Leadership:

Policy Issues & Featured Speakers  

  • Sen. Chris Coons (D-DE) discussed the administration’s infrastructure proposal, aid for low-income renters, and more.
  • Sen. Ben Sasse (R-NE) focused on bipartisan congressional efforts on infrastructure, return-to-work issues, and national security threats.
  • White House National Climate Advisor Gina McCarthy, above, and Roundtable Sustainability Policy Advisory Committee Chair Tony Malkin (Chairman, President and Chief Executive Officer, Empire State Realty Trust) focused on the commercial real estate industry’s role in climate policy. (watch the discusssion)
  • Rep. Stephanie Murphy (D-FL) discussed tax policies that could encourage economic recovery and avoid unintended consequences.
  • “Current Market Challenges and Coming Opportunities” – above – featured the following industry leaders in a discussion on challenges facing markets during a recovering economy, reopening strategies, and cybersecurity concerns for CRE: (watch the discussion)
    • Thomas M. Flexner (Vice Chairman and Global Head of Real Estate, Citigroup)
    • Kathleen McCarthy (Global Co-Head of Blackstone Real Estate)
    • Mark J. Parrell (President & Chief Executive Officer, Equity Residential) and
    • Owen D. Thomas (Chief Executive Officer, Boston Properties)

Policy Advisory Committees

  • Sustainability Policy Advisory Committee (SPAC) – above
    The outlook for energy efficiency legislation was a focus of discussion with key Hill staff representing Senator Jeanne Shaheen (D-NH). Additionally, officials from the Department of Energy’s Better Buildings initiative and the Environmental Protection Agency’s ENERGY STAR program updated SPAC.  
  • Research and Real Estate Capital Policy Advisory Committees (RECPAC)
    Sen. Steve Daines (R-MT) discussed the importance of enacting measures to encourage job creation and pro-growth tax policy, and the importance of developing a clear strategy to address global and national security threats, including cyber and ransomware attacks.
  • Tax Policy Advisory Committee (TPAC)
    Tax legislative priorities affecting CRE were the focus of discussion with congressional staffers – including proposals to eliminate or limit the use of carried interest and Like-Kind Exchanges, along with increasing the capital gain rate.
  • Homeland Security Task Force (HSTF) and Risk Management Working Group (RMWG)
    This joint meeting was briefed on “Civil Unrest: Challenges for Communities” by Terry Monahan, Senior Advisor for Recovery and Safety Planning for New York City – and an FBI official discussed the current threats of ransomware and cyber challenges.

The Roundtable’s 2021 Annual Report will be distributed in July. Next on The Roundtable’s Meeting Calendar is the Oct. 5 Fall Meeting in Washington, DC. (Roundtable-level members only)

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Senate Committee Unanimously Reauthorizes Highway Trust Fund; “Gateway” Hudson Tunnel Project Reaches Major Milestone

Posted on by Trey Jackson

Senate Environment & Public Works Comittee

The Senate Environment and Public Works (EPW) Committee’s unanimous vote last week to advance $303.5 billion over the next five years to fund the nation’s largest source for roads, bridges, tunnels, and mass transit may help advance negotiations over President Biden’s infrastructure proposal. (BGov, May 26)

A Bipartisan Signal

  • Senate EPW Ranking Member Shelly Moore Capito (R-WV) is the lead GOP negotiator on the White House’s infrastructure proposal, which includes $115 billion for repairing Main Street roads, highways and bridges. (White House Fact Sheet: The American Jobs Plan, March 31)
     
  • Sen. Capito said the 20-vote committee vote to advance the Surface Transportation Reauthorization Act “… is further proof that a bipartisan infrastructure deal is possible. I’m hopeful this bipartisan product can be the anchor of a larger infrastructure package moving forward.” (Senate EPW Markup and news release, May 26)
     
  • The Senate committee’s measure would set a new baseline funding level for the Department of Transportation’s Highway Trust Fund – an increase of more than 34 percent from the last reauthorization to pass Congress in 2015.  (Full text of the EPW bill and one-page summary)

Time Considerations

Road Construction ramp

  • The Senate EPW Committee only has jurisdiction over the surface transportation bill’s highway section. The Senate Commerce Committee is next, with a markup expected the week of June 14. The Senate Finance Committee will eventually address how to pay for the measure and the Senate Banking Committee will consider sections dealing with mass transit programs.
     
  • In the House, Democrats on the Transportation and Infrastructure Committee  introduced the INVEST in American Act today and plan to mark up their surface reauthorization bill on June 9. (Bill Text | Fact Sheet | Section-by-Section and Washington Post, June 4)
  • The Biden administration was encouraged by the Senate EPW vote. White House Press Secretary Jen Psaki said during a May 25 briefing that the$303 billion dollar bill “is a great down payment” for a broader infrastructure package. (BGov, May 26)
     
  • However, the administration has expressed it is on a tighter deadline to advance a comprehensive infrastructure proposal. Transportation Secretary Pete Buttigieg recently said, “I think we are getting pretty close to a fish-or-cut-bait moment.” (CNN, May 30) 

Gateway Progress

Gateway Hudson Tunnel Project

  • The Biden Administration on May 28 approved a key step allowing the multi-billion dollar “Gateway” rail tunnel project between New York City and New Jersey to move forward, ending years of delay and clearing the way for state officials to apply for federal funding.  (New York Times, May 28)
     
  • The administration’s approval of a long-awaited environmental impact statement clears the way for pre-construction activities to begin on the crucial infrastructure project, which aims to repair tunnels damaged by Superstorm Sandy. (Politico, May 28)
     
  • Transportation Secretary Buttigieg commented on the approval – clearing the way for the project to advance to the next steps such as engineering, final design development, and property acquisition, as well as construction. “This is a big step for the Northeast, and for the entire country, as these tunnels connect so many people, jobs, and businesses,” he said. (DOT statement, May 28)

Senate Majority Leader Chuck Schumer (D-NY) said, “It’s probably the most important public works project in America. If those tunnels fail and can’t be used, 25 percent of our economy would be at risk from Boston to Washington.” (Politico, May 28) 

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Biden Administration Issues FY22 Budget with Tax Policy Details; Policymakers Face Deadline on Bipartisan Infrastructure Negotiations

Posted on by Trey Jackson

The Biden Administration today issued its FY22 budget proposal, which serves as a benchmark of its tax policy priorities, accompanied by the Treasury Department’s “General Explanations of the Administration’s Revenue Proposals.” Meanwhile, negotiations continued this week between Senate Republicans and the White House on the scope and cost of President Biden’s multitrillion infrastructure investment proposal.

Budget Pay-fors 

  • The administration’s $6 trillion 2022 budget beginning Oct. 1 represents some of the highest levels of federal spending of the postwar era. The revenue portion of the proposal would sharply raise taxes on corporations and high-income households to fund President Biden’s infrastructure, climate change and social safety net goals. (BGov, White House Fact Sheet and budget appendix, May 28)
  • Although Congress will eventually determine final legislation that controls the federal government’s annual spending, today’s White House budget influences the debate on how to pay for its proposed programs with a variety of taxes, including:
    • An increase in the corporate tax rate to 28% from 21%;
    • Nearly doubling the tax rate on long-term capital gains to 40.8% from 23.8%;
    • Limiting capital gains treatment to invested cash and disregarding other forms of risk taken by partners;
    • Limiting taxpayers’ ability to defer gain that is reinvested in property of a like-kind; and
    • Making death a taxable event at far lower levels of income and potentially taxing the unrealized gain on appreciated assets not once but twice when an individual dies.

GOP Infrastructure Counteroffer 

  • Senate Republicans yesterday outlined a $928 billion infrastructure proposal over eight years as a counteroffer to Biden’s $1.7 trillion infrastructure initiative. The GOP proposal would repurpose funds from the $1.9 trillion pandemic relief law enacted in March, an approach rejected by Democrats. The Republican proposal also includes $257 billion in new spending for traditional “hard” infrastructure such as roads, bridges and other public works. (NPR / New York Times / AP, May 27)
  • Democrats are weighing whether to advance the Biden infrastructure plan under the same “reconciliation” budget process that was used to pass the March pandemic relief package by a simple majority vote – thereby bypassing the 60-vote requirement typically needed to advance most legislation in the 50-50 Senate.
     
  • President Biden yesterday referred to the infrastructure talks, stating, “We’re going to have to close this down soon.” He added that he plans to meet next week with Sen. Shelley Moore Capito (R-WV), above at podium, who has led Republican policymakers in infrastructure negotiations. (Bloomberg, May 27) 
  • Senate Majority Leader Chuck Schumer (D-NY) on May 25 said, “The bottom line is very simple, that it has always been our plan regardless of the vehicle to work on an infrastructure bill in July. And that’s our plan, to move forward in July.” (The Hill, May 28) 
  • Senate Minority Leader Mitch McConnell (R-KT) stated during a May 27 CNBC interview, “We’re open to spending some more … we’re going to keep talking.”  
  • White House Press Secretary Jen Psaki issued a May 27 statement on the Republican infrastructure proposal. “We are concerned that the proposal on how to pay for the plan remains unclear: we are worried that major cuts in COVID relief funds could imperil pending aid to small businesses, restaurants and rural hospitals using this money to get back on their feet after the crush of the pandemic.” The statement added, “As for the path forward … we will work actively with members of the House and Senate next week, so that there is a clear direction on how to advance much needed jobs legislation when Congress resumes legislative business during the week of June 7.” 

According to Axios, Senate Democrats intend to continue working on bipartisan infrastructure negotiations through the week after Memorial Day congressional recess “… then forge ahead on their own if there’s no deal.” (Axios, May 24) 

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Policy Updates – RER YouTube Channel

Posted on by Trey Jackson

The Real Estate Roundtable’s YouTube Channel

May 28, 2021 – Real Estate Like-Kind Exchanges Congressional Briefing

April 19, 2021 – Discussion with John Anzalone – Partner, ALG Research 

April 12, 2021 – Interview – Robert S. Kaplan, President and CEO, The Federal Reserve Bank of Dallas

January 28, 2021 – A Conversation on Leadership – Penny Pritzker – Former U.S. Secretary of Commerce

January 27, 2021 – Leading on Tax Policy – Sen. Ron Wyden (D-OR) – Chairman, Senate Finance Committee

January 27, 2021 – Interview – Sen. Sherrod Brown (D-OH), Chairman of the Senate Banking, Housing, and Urban Affairs Committee

January 25, 2021 – Finding Unity – An Interview with Sen. Joe Manchin (D-WV) 

2020

October 5, 2020 – Listening Session with EPA Administrator Andrew Wheeler

September 22, 2020 – FY 2021 Nominations for the Board of Directors – Fall Roundtable Meeting

September 22, 2020 – Emerging Global Real Estate Investment Trends Panel-Fall Roundtable Meeting

September 22, 2020 – The Roundtable’s Equity, Diversity, and Inclusion Committee – Fall Roundtable Meeting

September 21, 2020 – A View from the Senate – Interview with Sen. Tim Kaine (D-VA)

September 21, 2020 – Prospects for a Pandemic Risk Insurance Act – Rep. Steve Stives (R-OH)

September 21, 2020 – Senate Majority Leader – Sen. Mitch McConnell (R-KY)

September 9, 2020 – Testimony and Q&A – Jeffrey DeBoer – The Status of the Federal Reserve Emergency Lending Facilities

September 4, 2020 – Bisnow Interview – Jeffrey DeBoer On His Game Plan To Push The CRE Agenda Before The Election

July 30, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – Walker Webcast – All Eyes On Washington: What will the next stimulus bill do for CRE?

July 24, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – Interview with Rep. Darin LaHood (R-IL)

July 10, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – Public Policy in the Age of COVID: Shaping the CRE Recovery 

May 14, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – National Economic Policy Responses to the COVID-19 Crisis

May 6, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – Interview with Dr. Joseph Gardner Allen, Assistant Professor with the Harvard T.H. Chan School of Public Health

May 5, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – “The Policy Response to COVID-19: Implications for Real Estate” – hosted by the Pension Real Estate Association (PREA)

May 1, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – Unpacking the Federal Stimulus – Bisnow Webinar

April 21, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert

April 10, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert 

April 3, 2020 – The Real Estate Roundtable’s COVID-19 Economic Crisis Alert 

 

 

Treasury Releases New Guidance for Emergency Rental Assistance; YIMBY Act Reintroduced

Posted on by Trey Jackson
U.S. Treasury Department
US Treasury Department in Washington

The Treasury Department on May 7 issued new guidance for local municipalities administering emergency rental assistance programs, with rules aimed at directly assisting more renters in less time. The rules simplify applications for aid, expand covered costs such as moving expenses and hotel stays, and require programs to help tenants directly even if their housing providers choose not to participate. (New York Times, May 7) 

Distribution Challenges 

  • Congress approved $25 billion of emergency rental assistance in December 2020 under the Consolidated Appropriations Act. An additional $21.6 billion was allocated in March 2021 under the American Rescue Plan Act. The Treasury Department ‘s May 7 announcement releasing the second allocation was accompanied by its new guidance. (National Multifamily Housing Council, May 10)
  • State and local authorities have been overwhelmed with how to allocate the influx of funds, leaving many tenants and housing providers waiting weeks or months for the assistance. (Washington Post, April 8 and Wall Street Journal, April 13)  
  • The nine “enhanced policies” from Treasury aim to ensure that states and localities can move quickly to address the housing affordability crisis wrought by the pandemic. (Treasury’s May 7 Fact Sheet and FAQs on Emergency Rental Assistance)
  • The new guidance comes days after a federal judge overturned the U.S. Centers for Disease Control and Prevention (CDC) eviction moratorium, which is scheduled to expire June 30. Judge Dabney L. Friedrich of the U.S. District Court for the District of Columbia also issued an order on May 5 that temporarily allows the moratorium to continue while she considers an emergency appeal by the Biden Administration.  (Roundtable Weekly, May 7)  

Rental Assistance Support 

  • The Roundtable is part of a broad real estate coalition that recently urged state, county and municipal officials to distribute the allocated federal funds as soon as possible. (Coalition letter, April 15)
     
  • The coalition letter emphasized the need “to quickly and fully allocate available American Rescue Plan federal funds to provide assistance to renters, consumer-facing small businesses, and impacted industries such as retail, tourism, travel, and hospitality that are having trouble paying rents, mortgages or remaining viable enterprises due to the COVID-19 pandemic.” 

YIMBY Reintroduced 

Window in house. Architectural elements. Construction materials. Building house.
  • The bipartisan “Yes In My Backyard (YIMBY) Act” was reintroduced on May 13 in the House by Reps. Trey Hollingsworth (R-IN) and Derek Kilmer (D-WA).
  • The bill would require local governments applying for federal housing development funds through the Community Development Block Grant (CDBG) program to report whether they have enacted policies to reduce counterproductive regulations that may affect affordability. (Hollingsworth news release and text of the bill)  
     
  • The Real Estate Roundtable is one of many organizations that have endorsed YIMBY, which passed the House last year but stalled in the Senate. The Roundtable also urged support for the YIMBY Act in comments filed with HUD in January 2020.  (Roundtable Weekly, March 6, 2020)
     
  • A Senate YIMBY companion bill was also introduced May 13 by Sens Todd Young (R-IN) and Brian Schatz (D-HI).
     
  • “Discriminatory local zoning and land use policies drive up housing costs in communities across America,” said Sen. Young. “These policies exacerbate the housing affordability crisis and stifle the ability of Americans to move to areas of opportunity. My legislation will require cities, towns, and rural areas across America to face this reality under a new level of transparency and encourage them to cut these harmful regulations.” (Sen. Young news release, May 13)
     
  • “The YIMBY Act complements the many pro-housing proposals currently before Congress,” said Mike Kingsella, Executive Director of Up for Growth Action. “The YIMBY Act will empower communities across the country to clear the path for housing that is more affordable, equitable, and sustainable.” (Up for Growth’s YIMBY Fact Sheet)

The Roundtable and its coalition partners will continue to urge lawmakers to pass the YIMBY Act and similar legislation that eases burdensome rules that inhibit affordable housing development.

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