News Type: Roundtable Weekly

Roundtable Weekly Will Resume Publication on July 17, 2026

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The Roundtable’s policy news digest will resume publication on Friday, July 17, 2026.

Recent issues of Roundtable Weekly can be searched by keyword here.

Housing Bill Awaits Final Action After Bipartisan Passage

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Congress this week passed the 21st Century ROAD to Housing Act with overwhelming bipartisan support, clearing the Senate 85–5 and the House 358–32 after months of negotiations over the most significant federal housing package in decades. (Politico | Axios | CNBC | Bill Text | One-pager | Section-by-Section, June 24)

State of Play

  • House Republican leaders are transmitting the bipartisan housing bill to the White House following Speaker Mike Johnson’s (R-LA) meeting with President Trump on Thursday, starting the 10-day window for the president to sign or veto the measure once it is formally delivered. (Politico, June 26)
  • “Congress has work to do, and that’s what we’re going to do,” Johnson said after the meeting. He also said he expects Trump to sign the bill. (ABC News, June 25)
  • If Trump does not sign or veto the bill within 10 days, excluding Sundays, it becomes law without his signature under the Constitution. The bill passed both chambers this week with veto-proof majorities. (Axios, June 25)
  • The move follows the White House’s decision Wednesday to cancel a planned signing ceremony after Trump said he would not sign the measure until Congress passes the SAVE America Act. (Truth Social, June 24 | NYT, June 25)
  • In a joint statement, Senate Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) called the Senate’s bipartisan vote “an important step toward addressing America’s housing affordability crisis” and said the bill reflects years of work with the White House, Senate, and House to increase supply and expand access to affordable housing. (Senate Banking Press Release, June 22)
  • After final passage in the House on Tuesday, Chairman French Hill said, “This is a true bicameral, bipartisan product that demonstrates what can happen when both chambers work together to deliver real solutions.” (Press Release, June 23)

Why It Matters

  • The bill is the most consequential housing package in a generation, with reforms aimed at increasing housing supply, boosting homeownership, and improving affordability. (One-pager | Section-by-Section, June 24)
  • The package advances major reforms to modernize federal housing programs, streamline environmental reviews, reduce barriers to construction, support manufactured housing, build more homes in Opportunity Zones, encourage transit-oriented development, and promote local zoning and land-use reforms. (Roundtable Weekly, May 22 | June 18)
  • For CRE, the most significant change remains the removal of the unconstitutional seven-year forced-sale mandate for build-to-rent housing, which would have required certain owners to sell newly built single-family rental homes after seven years. (RER Fact Sheet, June 8)
  • The Real Estate Roundtable (RER) and other housing stakeholders warned that the mandate would be counterproductive—discouraging new construction and undermining efforts to increase housing supply.

RER Advocacy

  • RER commended congressional leaders for their work to advance the amended 21st Century ROAD to Housing Act in a statement from RER President and CEO Jeffrey D. DeBoer. (RER Statement, June 18)
  • “This landmark, bicameral legislation advances a comprehensive package of reforms to help build more homes, improve affordability, protect private property rights, and preserve the capital needed to finance housing nationwide,” DeBoer said.
  • DeBoer noted that the bill includes major reforms to modernize federal housing programs, streamline environmental reviews, reduce barriers to new construction, support manufactured housing, build more homes in Opportunity Zones, restore critical community banking provisions, encourage transit-oriented development, and promote much-needed land-use and zoning reforms. (RER Fact Sheet, June 8)
  • DeBoer also emphasized that the reforms will take time to reach the housing marketplace. “These reforms are significant, but they will take time to fully filter into the housing marketplace and begin correcting the supply imbalance caused by years of underbuilding and regulatory barriers,” DeBoer said.

What’s Next

The bipartisan housing package now awaits final action. RER continues to urge swift enactment of the bill to advance supply-focused reforms that can help address the nation’s long-standing housing affordability crisis.

IRS Issues Long-Awaited Transition Guidance for Opportunity Zones

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The Treasury Department and IRS issued new guidance last week, IRS Notice 2026-40, providing transition rules for Opportunity Zone investments made or initiated under the original OZ 1.0 regime.

The notice previews rules Treasury and IRS intend to include in forthcoming regulations. It focuses on new OZ designations going forward, transition rules for investors with existing deferred gains, and transition rules for Qualified Opportunity Funds (QOFs) and Qualified Opportunity Zone Businesses (QOZBs) operating in OZs designated under the prior law. (Tax Notes, June 18 | Reuters, June 22)

Why It Matters

  • The guidance is a major development for Opportunity Funds and OZ businesses with projects in OZ 1.0 census tracts as the program transitions to the new permanent OZ framework under the One Big Beautiful Bill (OB3)Act.
  • While the OB3 Act permanently extended and improved the OZ tax incentives, it left unresolved tax questions affecting investments in expiring OZ 1.0 tracts, including how far along a project must be before a census tract expires and whether future capital expenditures can continue to qualify for the tax incentives.

The Notice

  • Under the notice, property acquired after Dec. 31, 2026, in a previously designated OZ may still qualify if certain conditions are met. (Seyfarth, June 23)
  • To qualify, the OZ business must have a written working capital plan in place by Dec. 31, 2026; future property acquisitions must be consistent with that plan; the business must receive at least 10% of its estimated working capital assets by year-end; and it must expend at least 5% of those assets by Dec. 31, 2026. (IRS Notice 2026-40, June 18)
  • The notice also clarifies how OZ compliance tests apply after an OZ 1.0 census tract expires. In certain cases, a previously designated OZ can continue to be treated as a qualifying zone for purposes of the “substantial use” test and the requirement that at least 50% of a business’s gross income be derived from the active conduct of a trade or business in a qualified OZ. (IRS Notice 2026-40, June 18 | Reuters, June 22)
  • The guidance provides important certainty for real estate investors, developers, and businesses seeking to move forward with projects in low-income communities during the transition from OZ 1.0 to the new permanent OZ framework.

RER Advocacy

  • RER emphasized that unresolved questions surrounding expiring census tract designations could delay projects, discourage new fund formation, and undermine housing production and community development efforts.
  • While the notice includes many important details that remain under review, its issuance marks a major step forward in providing greater certainty for long-term OZ investment in underserved communities.

RER’s Opportunity Zone Working Group will review the implications of Notice 2026-40 in the days ahead and continue to engage with Treasury and the IRS to support clear, workable implementation of the new OZ framework.

Senate Advances Bipartisan Housing Bill After Bicameral Deal

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The Senate this week voted overwhelmingly, 84-4, to advance the amended 21st Century ROAD to Housing Act, moving the bipartisan housing package closer to final passage after Senate Banking Committee and House Financial Services Committee leaders reached an agreement on updated bill text aimed at expanding housing supply, improving affordability, and modernizing federal housing programs. (Senate Banking Committee, June 16 | Multifamily Dive, June 17 | POLITICO, June 16)

State of Play

  • The Senate voted Tuesday and today on a procedural motion to advance the 21st Century ROAD to Housing Act, clearing an initial hurdle for the House-amended package. (Bill text | Section-by-Section, June 16)
  • A final Senate vote is expected next week. If approved, the bill would return to the House for final approval before it can be sent to President Trump for signature. (POLITICO, June 16)
  • The updated text was released by Senate Banking Committee Chairman Tim Scott (R-SC), Ranking Member Elizabeth Warren (D-MA), House Financial Services Committee Chairman French Hill (R-AR), and Ranking Member Maxine Waters (D-CA), who said the package reflects years of bipartisan, bicameral work and incorporates priorities from the Senate, House, and White House. (Bill text | Section-by-Section, June 16). (Bill text | Section-by-Section, June 16)
  • Chairman Scott said the bill “is the result of years of work to lower costs, expand housing supply, cut red tape, protect taxpayers, and help more Americans achieve the dream of homeownership.” Ranking Member Warren called the package “the biggest housing bill in more than 30 years.” (Senate Banking Committee, June 16)
  • The Senate version preserves most of the House-passed housing provisions, restores community banking measures, updates the Rental Assistance Demonstration program, authorizes the Community Development Block Grant–Disaster Recovery program for three years, and adds back the BUILD NOW Act. (POLITICO, June 16| Multifamily Dive, June 17)
  • Chairman French Hill (R-AR) said the bill is “a meaningful step toward increasing housing supply, improving affordability, and helping more Americans achieve homeownership,” adding, “I look forward to President Trump signing it into law.”  (Bisnow, June 16)

Why It Matters

  • The bill is the most consequential housing package in a generation, with reforms aimed at increasing housing supply, boosting homeownership, and improving affordability.
  • The package advances major reforms to modernize federal housing programs, streamline environmental reviews, reduce barriers to construction, support manufactured housing, build more homes in Opportunity Zones, encourage transit-oriented development, and promote local zoning and land-use reforms. (Roundtable Weekly, May 22)
  • For CRE, the most significant change remains the removal of the unconstitutional seven-year forced-sale mandate for build-to-rent housing, which would have required certain owners to sell newly built single-family rental homes after seven years. (RER Fact Sheet, June 8)
  • The Real Estate Roundtable (RER) and other housing stakeholders warned that the mandate would be counterproductive—discouraging new construction and undermining efforts to increase housing supply.

RER Advocacy

  • RER commended congressional leaders for their work to advance the amended 21st Century ROAD to Housing Act in a statement today from RER President and CEO Jeffrey D. DeBoer. (RER Statement, June 18)
  • “This landmark, bicameral legislation incorporates a comprehensive package of reforms to help build more homes, improve affordability, protect private property rights, and preserve the capital needed to finance housing nationwide,” DeBoer said.
  • DeBoer noted that the amended bill includes major reforms to modernize federal housing programs, streamline environmental reviews, reduce barriers to new construction, support manufactured housing, build more homes in Opportunity Zones, restore critical community banking provisions, encourage transit-oriented development, and promote much-needed land-use and zoning reforms. (RER Fact Sheet, June 8)
  • “These reforms are significant, but they will take time to fully filter into the housing marketplace and begin correcting the supply imbalance caused by years of underbuilding, regulatory barriers, and constrained supply.” DeBoer said. (RER Statement, June 18)

What’s Next

The House is expected to take up the Senate-approved bill when lawmakers return from recess on June 23. RER is urging swift passage so the package can be sent to President Trump to be signed into law.

Coalition Urges Regulators to Refine Basel III Proposal for CRE Lending

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The Real Estate Roundtable (RER) and a coalition of national real estate organizations urged federal banking regulators this week to make targeted refinements to the revised Basel III Endgame proposal to better calibrate capital rules for commercial and residential real estate lending. (Letter, June 18)

Why It Matters

  • In March, the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) unveiled a substantially revised Basel III Endgame proposal, replacing the 2023 framework that drew broad industry opposition. (Reuters, June 18)
  • The coalition commended regulators for improving the revised proposal, particularly by tailoring capital requirements more closely to risk across different assets and activities, but warned that additional changes are needed to avoid unnecessarily constraining CRE credit. (Letter, June 18)
  • Commercial and multifamily real estate is a roughly $20 trillion sector supported by more than $6.4 trillion in debt, with approximately $3 trillion in CRE loans maturing over the next five years.
  • For commercial real estate, the reset could ease regulatory pressure that threatened to constrain credit for real estate lending, mortgage activity, and other capital-intensive transactions. (Roundtable Weekly, March 20)
  • “The Proposals significantly improve on the 2023 proposal,” the coalition wrote, adding that targeted refinements would “better calibrate CRE capital requirements without unduly constraining the financial system or burdening housing providers.”

Policy Priorities

  • The coalition urged regulators to better align capital treatment with actual risk for CRE exposures, multifamily loans, securitizations, warehouse facilities, mortgage servicing rights, Low-Income Housing Tax Credit (LIHTC) investments, and Fannie Mae Delegated Underwriting and Servicing (DUS) exposures.
  • The letter also recommends avoiding structural penalties for common CRE financing arrangements, including mezzanine loans, preferred equity, B-notes, junior participations, and loans involving special-purpose entities. (Letter, June 18)
  • Capital rules that are not properly calibrated could increase borrowing costs, reduce bank lending capacity, and constrain credit for housing development and other income-producing real estate.

Roundtable Advocacy

  • The Real Estate Roundtable (RER) has consistently opposed the original Basel III proposal, citing its potential negative impact on available credit capacity for commercial real estate transactions, market liquidity, and economic growth. (Roundtable Weekly, Nov. 2023 | Jan. 2024 |  Mar. 2024 | Dec. 2025 | Feb. 2026 |  March 20, 2026)
  • Earlier this year, federal regulators released a substantially revised Basel III proposal that reduced capital requirements for the largest U.S. banks by 2.4% overall and lowered certain risk weights for mortgages and mortgage servicing assets. (Financial Times, June 17)
  • In its June letter, the coalition urged regulators to preserve the proposal’s improvements while making targeted refinements to avoid unnecessarily constraining CRE lending, affordable housing investment, or broader economic growth. (Letter, June 18)

RER will continue working with policymakers, regulators, and real estate industry partners to support capital rules that are appropriately calibrated, risk-based, and aligned with the need for a stable and liquid commercial real estate finance market.

Policymakers and Industry Leaders Address CRE Policy Priorities at Annual Meeting

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The Real Estate Roundtable’s (RER) 2026 Annual Meeting this week included discussions with policymakers and industry leaders on issues affecting commercial real estate, including housing supply, tax policy, capital and credit markets, energy and grid reliability, federal buildings, data centers, tariffs, foreign capital, and evolving security threats. (RER Policy Priorities | Executive Summary)

Roundtable Leadership

L-R: RER Chair Kathleen McCarthy Baldwin & Immediate Past Chair John Fish
  • RER Chair Kathleen McCarthy Baldwin (Former Global Co-Head of Real Estate, Blackstone) opened the meeting by welcoming members and highlighting the importance of RER’s policy advisory committees to the industry’s advocacy work. (RER Policy Priorities | Executive Summary)
  • Immediate Past Chair John Fish (Chairman & CEO, SUFFOLK) commended McCarthy Baldwin’s service and dedication as Chair of RER.
  • “Kathleen’s impact can be seen in nearly every aspect of The Roundtable today,” Fish said. “She has strengthened our communications, elevated our meetings, and helped ensure RER remains a powerful, respected voice for real estate in Washington.”
  • McCarthy Baldwin thanked the board, membership, and staff, calling it a “huge honor” to chair an organization that is effective in advancing policies that shape the built environment and support the people who live, work, and visit buildings across the country.
  • Owen D. Thomas (Chairman and CEO, BXP) will begin his three-year term as RER Chair on July 1, 2026.
  • During the meeting, RER members approved the nominees for its FY2027 board of directors and policy advisory committees chairs, which were presented by RER Nominating Committee Chair Anthony E. Malkin (Chairman and Chief Executive Officer, Empire State Realty Trust, Inc.; Chair, RER Sustainability Policy Advisory Committee).
RER President and CEO Jeffrey DeBoer
  • Addressing the membership, RER President and CEO Jeffrey DeBoer said the past 12 months were “among the most complex and fast-moving in political history,” requiring smart, coordinated advocacy on housing supply, tax policy, energy, terrorism risk insurance, cyber information sharing, and capital markets. (DeBoer Remarks, June 10)
  • He emphasized that RER’s strength comes from its “big tent” approach, bringing together members, policy advisory committees, and national real estate partners to deliver a unified, data-driven voice in Washington and advance policies that support smart supply, appropriate capital, and business certainty.

Meeting Speakers

  • Sen. Chris Coons (D-DE) (Committees: Appropriations, Foreign Relations, Judiciary, Small Business and Entrepreneurship, and Ethics) connected the housing supply crisis to broader questions of economic growth, affordability, infrastructure, and U.S. competitiveness, emphasizing the need for bipartisan solutions on workforce housing, building conversions, tariffs, grid reliability, data centers, and global instability.
  • Curt Beaulieu (Senior Policy Adviser to House Speaker Mike Johnson) joined RER Tax Policy Advisory Committee (TPAC) Chair Josh Parker (Chairman & CEO, Ancora Group Capital), and Ryan McCormick (Senior Vice President and Counsel, RER) for a policy discussion on the One Big Beautiful Bill Act; the House Leadership’s tax, housing, and affordability agenda; potential legislation in the remainder of 2026; and the role industry leaders play in educating lawmakers.
  • The Honorable Edward Forst (Administrator, General Services Administration; Acting Archivist, The National Archives) outlined GSA’s efforts to consolidate and modernize the federal real estate footprint, improve transparency, and identify opportunities to reuse federal assets in cities across the country.
  • Sen. Peter Welch (D-VT) (Committees: Agriculture, Judiciary, Finance, and Rules & Administration) commented on Energy Star and energy efficiency, artificial intelligence, data centers, and the growing energy demands affecting property development and infrastructure.
  • Rep. Bill Huizenga (R-MI) (Vice Chair, House Financial Services Committee; House Foreign Affairs Committee) highlighted the Financial Services Committee’s work this year on terrorism risk insurance reauthorization, the 21st Century ROAD to Housing Act, and ongoing House-Senate efforts to advance the housing package to the president’s desk.
  • Senate Democratic Leader Charles Schumer (D-NY) outlined the policy and political challenges shaping the housing and economic debate, including tariffs, rising building costs, housing supply constraints, local zoning reform, tax incentives to convert obsolete buildings into housing, the Low-Income Housing Tax Credit, and the need to restore certainty to the economy.
  • Jonathan Martin (Politics Bureau Chief and Senior Political Columnist, Politico) discussed the political forces shaping Washington, the upcoming midterm elections, and the role of technology, media, and political identity in transforming American life.

RER’s 2026 Annual Report will be distributed in July. Next on RER’s FY 2027 meeting calendar is the Fall Meeting, which will take place on Nov. 11-12 and is restricted to Roundtable-level members only.

Inside RER’s Policy Committee Discussions on Capital Markets, Tax Policy, Sustainability, and Homeland Security

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The Real Estate Roundtable’s (RER) policy advisory committees met this week during the 2026 Annual Meeting for focused discussions on the federal policy issues shaping commercial real estate, from capital formation and housing supply to tax policy, grid reliability, data centers, and security threats.

Joint Real Estate Capital Policy Advisory Committee (RECPAC) and Research Committee

  • The joint Real Estate Capital Policy Advisory Committee (RECPAC) and Research Committee meeting focused on financial regulation, capital markets, housing, terrorism risk insurance, the economic outlook, and market conditions. (RECPAC Research Agenda | RER’s Capital & Credit Policy Priorities)
Rep. Andy Barr (R-KY) 
  • Rep. Andy Barr (R-KY) (Chairman, House Financial Services Subcommittee on Financial Institutions; Member, Committee on Foreign Affairs) discussed the policy issues shaping credit capacity and capital formation for real estate, including the Basel III Endgame, the flow of institutional investment capital into real estate and housing, data centers, and U.S. competitiveness with China on artificial intelligence. He also highlighted the HFSC’s work on the TRIA Program Reauthorization Act of 2026 (H.R. 7128), the 21st Century ROAD to Housing Act, and his hope that the Senate will move the bipartisan housing package forward.
Rep. Andrew Garbarino (R-NY)
  • Rep. Andrew Garbarino (R-NY) (Chairman, House Homeland Security Committee; Vice Chairman, House Financial Services Subcommittee on Capital Markets) briefed members on terrorism risk insurance (TRIA), housing affordability, data centers, foreign capital and the Foreign Investment in Real Property Tax Act (FIRPTA). Rep. Garbarino emphasized the need to renew TRIA by the end of the year, ahead of its 2027 expiration.
  • Kenneth Rosen (Managing Director, Andersen; Chair, Fisher Center for Real Estate and Urban Economics at the Haas School of Business, University of California, Berkeley) presented an overview of real estate markets, the outlook for interest rates and market conditions, and the role of AI and the growth of data center development.  His talk also included the outlook for labor markets, the “K-shaped” economy, and varying conditions across real estate sectors.
  • Spencer Levy (Global Client Strategist & Senior Economic Advisor, CBRE) moderated a market discussion with Sam Chandan (Director, Chao-Hon Chen Institute for Global Real Estate Finance, NYU Stern School of Business); Rich Hill (Senior Managing Director and Global Head of Research & Strategy, Principal Asset Management); Darin Mellott (Head of U.S. Investor Research, CBRE); and Nicholas Seidenberg (Managing Director, Eastdil Secured).
  • The panel discussed real estate credit and capital market conditions, occupancy and sector-specific market trends, the outlook for housing, data center development and financing, and investment trends shaping the industry.

Tax Policy Advisory Committee (TPAC)

  • Tax Policy Advisory Committee (TPAC) Chair Josh Parker (Chairman & CEO, Ancora Group Capital) led discussions on tax legislation and regulatory issues affecting real estate, including reconciliation, the Rental Housing Investment Act, pass-through tax issues, housing investment, foreign investment tax policy, and other tax priorities under consideration in Washington. (TPAC Agenda | RER’s Tax Policy Priorities)
Sen. Lisa Blunt Rochester (D-DE)
  • Sen. Lisa Blunt Rochester (D-DE) (Committees: Banking, Housing, and Urban Affairs; Commerce, Science, and Transportation; Environment and Public Works; and Health, Education, Labor, and Pensions) joined TPAC members to discuss housing affordability and supply, including her legislation, the RER-supported Rental Housing Investment Act, as well as transit-oriented development and bipartisan approaches to expanding rental housing options. (Roundtable Weekly, March 27)
  • Andrew Grossman (Chief Tax Counsel, House Ways and Means Committee Democrats), Michael Gould (Tax Counsel, Senate Finance Committee Republicans), and Bobby Andres (Tax Advisor, Senate Democratic Leader Chuck Schumer) joined TPAC to discuss Congressional tax policy priorities, real estate, and the outlook ahead.
  • Treasury Tax Legislative Counsel Krishna Vallabhaneni provided an update on OBBBA implementation, Treasury regulatory initiative, and tax guidance projects affecting the real estate industry.
  • CJ Aberin (Principal and Co-founder, KBKG); Corey Husak (Director of Tax Policy, Center for American Progress); William McBride (Chief Economist, Tax Foundation); and Gilbert J. Winn (CEO, WinnCompanies) discussed new federal tax incentive proposals aimed at boosting housing supply. (RER’s Housing, Infrastructure and Cities Policy Priorities)

Sustainability Policy Advisory Committee (SPAC)

  • SPAC Chair Anthony E. Malkin (Chairman and Chief Executive Officer, Empire State Realty Trust, Inc.) and Vice Chair Tamara Chernomordik (President of Strategic Projects & Change Management, Kimco Realty) led discussions on state-level energy policy, building performance, federal energy data, electricity prices, grid reliability, large load growth, data centers, and global transition risk. (SPAC Agenda)
  • SPAC special guests presented on an alert from the North American Electric Reliability Corp. (NERC) that may result in data center federal-level registration and reporting; state-level energy policy; energy management across the U.S. military’s real estate portfolio; and the U.S. Department of Energy’s Building Performance Database. (RER’s Energy Policy Priorities)
  • The meeting came as energy, data centers, and permitting reform remained in focus in Washington this week. At the POLITICO Energy Summit, FERC Chair Laura Swett said the commission will soon act on a proposal to accelerate data center interconnections, while top Senate permitting negotiators expressed optimism that Congress could still reach a permitting deal this year. (POLITICO | E&E News, June 11)

Homeland Security Task Force (HSTF)

  • The Homeland Security Task Force (HSTF) Chair Amanda S. Mason (Executive Director, Global Intelligence, Related Companies) led discussions on evolving security threats affecting the commercial facilities sector, including cyber risk, physical security, operational continuity, data center security, and reauthorization of terrorism risk insurance. (RER’s Homeland Security Policy Priorities)
  • HSTF members received briefings from the FBI Counterterrorism Division, Cyber Division, and the FBI DC Field Office on Threats from Iran and its Proxies: Priority International Terrorism Threats; and Cyber and Espionage Threats to Commercial Facilities and Data Centers.
  • To discuss the risk management challenges for real estate in today’s market, Duncan Ellis, Industry Practice Leader for Marsh’s U.S. and Canada Real Estate & Hospitality, provided an update on commercial insurance markets and TRIA reauthorization. 
  • The meeting included a briefing from a representative from the DHS Office of Intelligence and Analysis, who delivered a briefing on lone offender threats associated with the World Cup games

The next in-person policy committee meetings are scheduled for RER’s State of the Industry Meeting, Jan. 28-29, 2027. (Meeting Calendar)

Solar Credit “Safe Harbor” Restored; Court Cites RER Comments

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A Washington, D.C. federal court this week fully restored the long-standing “5% Safe Harbor” as a valid method for solar projects to establish the key “beginning of construction” date—before certain energy tax credits start phasing out under the GOP’s tax law passed last summer. (Reuters, June 8 | Holland & Knight, June 8)

Why It Matters

  • The June 6 court decision restores a key tax credit pathway that real estate owners, developers, and investors have relied on for more than a decade to plan rooftop solar and other clean energy investments.
  • The court’s opinion cited comments submitted by The Real Estate Roundtable (RER) and coalition partners urging the IRS to preserve the long-standing, clear-cut rule to establish “beginning-of-construction” based on expenditure of 5% of project costs. (Letter, Aug. 8 | Roundtable Weekly, Sept. 5, 2025)
  • Under the ruling, projects that spend 5% of project costs by July 4, 2026, have a longer time period to preserve tax credit eligibility under the beginning-of-construction deadline set by the One Big Beautiful Bill (OB3) Act. (McGuire Woods, June 8)

RER Advocacy

  • RER, Nareit, NAIOP, and ICSC submitted a joint letter to Treasury in August 2025, urging the IRS to continue allowing taxpayers to rely on both the 5% Safe Harbor and the Physical Work Test to show “beginning of construction.” (Letter, Aug. 8 | RW, Sept. 5, 2025)
  • The court cited the RER coalition letter, explaining that businesses have relied on the 5% cost test as a valid method for tax credit eligibility  “for more than twelve years.” (Memorandum Opinion, June 6)
  • The court also cited the letter in recognizing the coalition’s concerns to avoid “stranding capital already invested” in rooftop solar and similar projects that relied upon the well-established safe harbor. (Memorandum Opinion, June 6)

The Ruling

  • The U.S. District Court for the District of Columbia found that the IRS acted arbitrarily and capriciously under the Administrative Procedure Act when it eliminated the 5% Safe Harbor for most wind and solar facilities. (Memorandum Opinion, June 6)
  • Most commercial building rooftop projects met the small-scale threshold—but this week’s court decision reinstates the cost-based safe harbor for large-scale installations as well. (JD Supra, June 9 | Nixon Peabody, June 10)
  • The ruling does not change the OB3 Act’s underlying “beginning of construction” deadlines. Projects that start construction by this coming July 4 must be “placed in service” by the end of 2030. Projects that start construction after this coming July 4 must be “placed in service” by the end of 2027. (RER Fact Sheet, Aug. 27)

The IRS could issue revised guidance or appeal the court’s ruling. In the meantime, the decision restores the 5% Safe Harbor as a planning tool for clean energy projects seeking to meet the July 4 “beginning-of-construction” deadline.

Senate Leaders Signal Momentum on Bipartisan Housing Package

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Congress appears to be moving closer to a final agreement on the 21st Century ROAD to Housing Act, as Senate and House leaders work to resolve remaining differences and send the bipartisan housing package to President Trump’s desk. (PoliticPro, June 11)

State of Play

  • The Senate and House each passed separate versions of the bill this year. The House-passed bipartisan amendment, approved 396-13 on May 20, is now awaiting Senate action. (Roundtable Weekly, May 22)
  • Senate Banking Committee Chairman Tim Scott (R-SC) said Thursday he is “optimistic” the Senate and House can reach a bicameral agreement and send the bill to President Trump “in the next week or so.” (PoliticoPro, June 11)
  • Scott said he met with House leaders on Tuesday to discuss compromise language “that’s on the table,” adding that the package “maintains all of the House product and most of ours.” (PoliticoPro, June 11)
  • Senate Majority Leader John Thune (R-SD) said he hopes the Senate can pass an updated version of the housing package and send it back to the House before the July 4 recess. (PoliticoPro, June 11)
  • The White House has indicated support for the House version as lawmakers work toward final passage. (White House SAP, May 20)

What They’re Saying

  • At RER’s Annual Meeting this week, senators and representatives from both sides of the aisle also expressed optimism that Congress could reach an agreement and move the housing package forward. (See stories above)
  • House Financial Services Committee Chairman French Hill (R-AR) worked with House leadership, Democrats, and the White House to advance compromise language that secured overwhelming bipartisan support on the House floor. (PoliticoPro, June 8)
  • “It’s in the best interest of both chambers and in the interest of both political parties to have a win on housing,” Chairman Hill told Politico. (PoliticoPro, June 8)

Why It Matters

  • The bill is the most consequential housing package in a generation, with reforms aimed at increasing housing supply, boosting homeownership, and improving affordability.
  • The House-passed bill preserves the core housing supply and affordability provisions in the Senate package, including reforms to streamline environmental reviews, reduce barriers to new construction, modernize HUD programs, support manufactured housing, and encourage local zoning and land-use reforms. (Bipartisan Policy Center, May 20)
  • The most significant change was the removal of the Senate’s unconstitutional seven-year forced-sale mandate for build-to-rent housing, which would have required certain owners to sell newly built single-family rental homes after seven years. (RER Fact Sheet, June 8)
  • RER members and other housing stakeholders warned that the mandate would be counterproductive—discouraging new construction and undermining efforts to increase housing supply.

RER Advocacy

  • The measure includes provisions relevant to owners, developers, and financiers of single- and multi-family rental housing, including reforms to modernize outdated housing programs, reduce barriers to development, and give local communities more flexibility. (RER Fact Sheet, June 8)

RER and its coalition partners will continue working with lawmakers to ensure the final package remains focused on increasing housing supply, improving affordability, protecting private property rights, and supporting the capital needed to build more homes nationwide.

Roundtable Backs DOL Proposal to Expand 401(k) Access to Alternative Assets

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The Real Estate Roundtable (RER) submitted comments this week supporting the Department of Labor’s (DOL) proposed rule to clarify fiduciary standards for including alternative assets, such as real estate, in 401(k) retirement plans. In the letter, RER affirmed that the proposal would expand investment choice, improve diversification, and provide retirement savers with access to asset classes that have long been available to institutional investors. (Letter, June 1)

Why It Matters

  • RER’s comments respond to the DOL’s proposed rule implementing the August 2025 Executive Order, “Democratizing Access to Alternative Assets for 401(k) Investors,” which seeks to clarify fiduciary obligations when plan sponsors offer investment options that include alternative assets such as private equity, real estate, private credit, and infrastructure investments. (Letter, June 1)
  • The DOL proposal would also establish a process-based safe harbor under the Employee Retirement Income Security Act (ERISA), helping reduce regulatory uncertainty and litigation risk that have discouraged many employers from offering alternative investment options in defined-contribution retirement plans. (DOL Press Release, March 30)
  • More than 90 million Americans participate in 401(k)-style retirement plans but generally lack access to the same alternative investment opportunities available to defined-benefit plan portfolios, such as pensions and other institutional investors. (Letter, June 1)

RER Advocacy

  • RER’s letter argues that the DOL’s rule appropriately clarifies that ERISA gives fiduciaries discretion and flexibility to determine when alternative investments are suitable for plan participants. (Letter, June 1)
  • RER also emphasized that defined-benefit pension plans that maintain allocations to private equity and other alternative assets have historically outperformed many defined-contribution plans, giving institutional investors access to diversification and return opportunities generally unavailable to retail retirement savers. (Letter, June 1)
  • The proposal would help level the playing field between 401(k) investors and defined-benefit plans by allowing fiduciaries to consider a broader range of investment options when they determine such investments are appropriate for plan participants. (Letter, June 1)
  • “RER believes that this rulemaking represents an important step toward restoring the principle that retirement savers, not regulators, determine how they invest,” the letter stated.

State of Play

  • The proposal has drawn mixed reactions on Capitol Hill.
  • Senior congressional Democrats, including House Education and Workforce Committee Ranking Member Bobby Scott (D-VA), Senate HELP Committee Ranking Member Bernie Sanders (I-VT), and Senate Banking Committee Ranking Member Elizabeth Warren (D-MA), urged DOL this week to withdraw the proposal. (Letter, June 1)
  • The Democratic lawmakers argued that expanding access to private equity, cryptocurrency, and other alternative investments could expose retirement savers to “risky, complex, and expensive” investments and weaken fiduciary protections for retired savers. (Letter, June 1)
  • Meanwhile, a group of 21 Senate Republicans, including Senate Banking Chair Tim Scott (R-SC) and HELP Chair Bill Cassidy (R-LA), submitted a letter backing the proposal, arguing that it “has the potential to materially improve long-term retirement outcomes for American workers.” (PoliticoPRO, June 2)
  • A separate group of 25 House Republicans, including House Budget Chair Jodey Arrington (R-TX) and House Financial Services Subcommittee on Financial Institutions and Monetary Policy Chair Andy Barr (R-KY), also submitted a letter advocating for the policy. (PoliticoPRO, June 2)
  • In a March press release, then-U.S. Secretary of Labor Lori Chavez-DeRemer explained, “This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today. This greater diversity will drive innovation and result in a major win for American workers, retirees, and their families.” (DOL Press Release, March 30)
  • SEC Chairman Paul S. Atkins echoed former Secretary Chavez-DeRemer’s remarks, saying, “Americans’ ability to participate more fully in innovation and economic growth through well-diversified long-term investments is a vitally important priority for effective retirement planning.” (DOL Press Release, March 30)

What’s Next

  • The public comment period closed on June 1, and DOL is reviewing stakeholder feedback before deciding whether to finalize the rule later this year.

RER will continue to engage with policymakers on retirement investment policy and support reforms that expand capital formation, balance investment flexibility with appropriate oversight, and provide American workers with broader opportunities to build long-term wealth.