Media

A massive $2.2 trillion emergency Coronavirus relief bill was signed into law today by President Trump shortly after passage by the House of Representatives, following unanimous approval on March 25 by the Senate. The historic legislative package—the Coronavirus Aid, Relief, and Economic Security (CARES) Act—comes as the United States registered the largest amount of coronavirus cases in the world and a record 3.3 million jobless claims in one week.

The Federal Reserve took unprecedented actions this week to aggressively support markets in an attempt to contain the economic damage of the coronavirus pandemic – announcing it is “committed to using its full range of tools to support households, businesses and the U.S. economy overall in this challenging time.”

Coronavirus Aid, Relief and Economic Security (CARES Act) and Implications for U.S. Real Estate, profiles the loan programs, tax relief, and Federal Reserve actions within the $2.2 trillion emergency coronavirus relief package.

The Real Estate Roundtable which represents owners of approximately 14 billion square feet of office and industrial space, nearly 3 million apartments, 3 million hotel rooms and other rental buildings totaling nearly $5 trillion today calls on all owners and operators of business and residential rental real estate to voluntarily proactively work in a positive and constructive manner with their COVID-19 impacted tenants respecting current rent obligations.

The Federal Reserve and central banks around the world conducted urgent large-scale interventions in capital markets this week to ease strains on economies and investors as the economic toll of the coronavirus expanded dramatically in the U.S.

Senate Majority Leader Mitch McConnell (R-KY) unveiled a “Phase III” coronavirus economic stimulus proposal on March 19 that includes a number of tax provisions important to real estate – including a temporary reinstatement of the net operating loss carryback; relaxation of the current-law restrictions business interest deductions; and long-sought technical corrections to several provisions in the 2017 tax code overhaul (e.g. qualified improvement property).

Policymakers raced this week to complete a massive economic response to stem the spiraling public health and economic toll of the Coronavirus pandemic. As infection and death rates continued to grow, jobless claims soared, hotels and malls temporarily closed world-wide, and President Trump invoked rarely used emergency powers to fight what he called a “medical war.”

Policymakers raced this week to complete a massive economic response to stem the spiraling public health and economic toll of the Coronavirus pandemic. As infection and death rates continued to grow, jobless claims soared, hotels and malls temporarily closed world-wide, and President Trump invoked rarely used emergency powers to fight what he called a “medical war.”

President Trump declared a national emergency this afternoon to unleash billions of disaster reserve funds to combat the coronavirus, as House Democrats were poised to pass legislation to give families and businesses immediate support as they confront the economic impacts of the COVID-19 pandemic.

Strict criteria for how the Government Sponsored Entities (GSEs) Fannie Mae and Freddie Mac must facilitate a secondary mortgage market for very low-, low-, and moderate-income families in manufactured, affordable and rural housing were released on March 11 by the Federal Housing Finance Agency (FHFA). (Updated FHFA Guidance)

Central banks around the world took dramatic action this week to mitigate the economic fallout of the coronavirus pandemic.

The United States House of Representatives on Monday passed the bipartisan Yes in My Backyard (YIMBY) Act (H.R. 4351) on a voice vote, following last week’s unanimous approval by the House Financial Services Committee.

Testifying before the House Ways and Means Committee on the President’s FY 2021 budget, Treasury Secretary Steven Mnuchin was questioned this week on the Foreign Investment in Real Property Tax Act (FIRPTA) and addressed potential steps he could take to encourage greater real estate investment from abroad. (Watch 2:35 video of March 3 exchange with Mnuchin)

This week congressional policymakers overwhelmingly passed, and President Trump signed, an $8.3 billion emergency spending package to combat the coronavirus outbreak in the U.S. – after the Fed reduced interest rates by a half-point amid early signs of economic disruption.

Deepening concerns over the international spread of the coronavirus (COVID-19) have prompted U.S. policymakers to consider measures for combating the potential public health and economic repercussions of the global disease, as the commercial real estate industry braces for potential disruption.

The House Financial Services Committee reported a bill today with overwhelming bipartisan support that would require localities to report to the U.S. Department of Housing and Urban Development (“HUD”) on land use practices that promote affordable housing production.

Over three-quarters of the Republican Members of the House Ways and Means Committee on Feb. 20 urged Treasury Secretary Steven Mnuchin to remove tax barriers to foreign investment in U.S. real estate and infrastructure.

The Real Estate Roundtable’s 2020 Q1 Economic Sentiment Index released this week registered a three point increase over the 2019 fourth quarter index. Commercial real estate (CRE) industry executives continue to experience generally balanced market fundamentals across nearly all product types, with limited overbuilding and conservative overall industry debt.

The Real Estate Roundtable’s 2020 Q1 Economic Sentiment Index released this week registered a three point increase over the 2019 fourth quarter index. Commercial real estate (CRE) industry executives continue to experience generally balanced market fundamentals across nearly all product types, with limited overbuilding and conservative overall industry debt. CRE executives also positively noted the continued macro-economic job growth and low interest rates. Election year politics and international tensions somewhat temper the overall optimistic sentiment causing some CRE executives to prepare for potential market disruptions later in 2020.