News Type: Roundtable Weekly

FSOC Hearing Highlights Nonbank Oversight as CRE Reacts to Fed Chair Nomination

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This week, the House Financial Services Committee (HFSC) and Senate Banking, Housing and Urban Affairs Committee held hearings with Treasury Secretary Scott Bessent to review the Financial Stability Oversight Council’s (FSOC) 2025 Annual Report. Lawmakers used the session to raise broader concerns about financial regulation, capital formation, and credit availability, including attention on FSOC’s role in banking regulation.

FSOC and Regulatory Direction

  • In his testimony, Sec. Bessent described a recalibrated approach at FSOC that focuses on identifying specific risky activities, rather than broadly regulating entire firms or sectors. He criticized prior “regulation by reflex” and stated that FSOC should avoid labeling wide swaths of the financial system as vulnerable, absent clear, material risk. (Watch Hearing)  
  • “FSOC should… work with its members to support efforts to avoid or pare back existing regulation that stifles pro-growth lending, capital formation, and innovation. And the best way to achieve these goals is by centering economic growth and economic security at the heart of FSOC’s agenda,” Sec. Bessent said. (Politico Pro, Feb. 4)
  • Several exchanges focused on FSOC’s authority to designate nonbank financial companies as Systemically Important Financial Institutions (SIFIs). Sec. Bessent confirmed a preference for an activities-based framework, signaling openness to clearer standards and restraint in the use of entity-based designations. (Watch Hearing)  
  • Sec. Bessent added that he would propose new nonbank guidance later this year, and that he supports higher deposit insurance to protect small banks’ competitiveness against larger institutions. (Politico Pro, Feb. 4)
  • He also supported HFSC Chairman French Hill’s (R-AR) community banking legislative package. He emphasized that small and community banks need tailored capital and risk standards to succeed. (American Banker, Feb. 4)
  • Democratic lawmakers warned that easing regulatory scrutiny could increase systemic risk and repeat conditions that preceded the 2008 financial crisis, with HFSC Ranking Member Maxine Waters (D-CA) arguing that FSOC should play a stronger role in identifying risks across the financial system, including among nonbank entities. (Watch Hearing)

Affordability and Tariffs

  • During the HFSC hearing, Ranking Member Waters pressed Sec. Bessent on whether the administration’s tariffs have contributed to persistent inflation. Sec. Bessent rejected that characterization and disputed claims that he had previously warned investors tariffs were inflationary. (American Banker, Feb. 4)
  • Ranking Member Waters also linked tariffs directly to worsening housing affordability, pointing to duties on key construction inputs such as lumber, steel, and appliances. (American Banker, Feb. 4)
  • While Democrats argued that tariffs and high prices continue to burden consumers, Sec. Bessent cited a Wharton study that points to immigration-driven demand as a contributing factor to higher housing costs. (CNBC, Feb. 4)

Roundtable Advocacy

  • The Real Estate Roundtable (RER) and coalition partners have supported the Financial Stability Oversight Council Improvement Act (H.R.3682), which would require FSOC to consult with a company and its primary regulator before designating a nonbank as a SIFI. (Letter, Oct. 28)
  • The bill is intended to strengthen due-process protections, improve interagency coordination, and ensure designations are based on rigorous analysis.
  • RER has consistently urged regulators to focus on activities that pose genuine systemic risk, rather than imposing broad designations that can create regulatory overreach and unintended consequences for credit markets. (Roundtable Weekly, Oct. 31)

CRE’s Reaction to Fed Chair Nomination

  • Last week, President Donald Trump announced his nomination of Kevin Warsh, a former Federal Reserve Governor, to succeed Fed Chair Jerome Powell. (Axios, Jan. 30)
  • As industry media outlets have reported, commercial real estate and finance leaders have broadly welcomed the nomination, citing Warsh’s experience from the financial crisis and his capital markets expertise. (Bisnow, Jan. 30)
  • “Kevin Warsh is a smart, thoughtful, and experienced nominee. His deep understanding of monetary policy and financial markets would help maintain and strengthen market confidence at a time when economic certainty matters most,” Jeffrey D. DeBoer, RER President and CEO, said.
  • Bob Broeksmit, President and CEO of the Mortgage Bankers Association, said in a statement that Warsh’s prior service on the Fed board gave him a reputation as “a prudent, thoughtful voice on monetary policy.”(ConnectCRE, Jan. 30)
  • CRE finance experts noted that while Warsh’s nomination could raise expectations for near-term rate cuts, uncertainty surrounding the confirmation process and Fed independence may keep long-term Treasury yields, as well as permanent financing costs, elevated. (ConnectCRE, Jan. 30)

RER remains committed to engaging policymakers on FSOC reform and related financial regulations to ensure oversight frameworks support capital formation, liquidity, and economic growth.

Treasury Considering Extension of Bonus Depreciation to Certain Existing Real Estate Investments

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The U.S. Treasury Department is reviewing real estate industry concerns that many firms may be locked out of the One Big Beautiful Bill (OB3) Act’s restored 100 percent bonus depreciation because of prior elections made to opt out of the Section 163(j) business interest limitation. (Bloomberg, Feb. 3)

State of Play

  • The restoration of 100 percent expensing for capital expenditures, including tenant and nonresidential property improvements, is among the most significant provisions in the OB3 Act.
  • Treasury tax policy advisor Dan Penrith acknowledged the concern at the American Bar Association Tax Section’s midyear meeting in San Diego. Penrith stated that the issue is “on our radar, it’s something that we’re thinking about,” signaling potential openness to targeted administrative relief. (Bloomberg, Feb. 3)
  • The Real Estate Roundtable (RER) has urged Treasury guidance to allow “real property trades or businesses (RPTOBs)” that previously elected out of Section 163(j) to withdraw or amend that election—so they can fully benefit from the OB3 Act’s restored bonus depreciation for eligible property improvements. (Roundtable Weekly, Oct. 17)

Why It Matters

  • The RPTOB election historically enabled full interest deductibility, but required the alternative depreciation system, making taxpayers ineligible for bonus depreciation.
  • Without additional guidance, many taxpayers may not qualify for bonus depreciation on property improvements, despite Congress’s intent to spur investment through 100 percent expensing.
  • There is precedent for allowing flexibility. During the pandemic, IRS Revenue Procedure 2020-22 provided an opportunity for certain taxpayers to withdraw a prior Section 163(j)(7)(B) election in response to CARES Act changes. (Revenue Procedure 2020-22)
  • As RER’s SVP & Counsel Ryan McCormick told Bloomberg Tax: “We’re seeking similar flexibility,” adding that it’s “really important for the future.” (Bloomberg, Feb. 3)

Roundtable Advocacy

  • In an Oct. 17, 2025, letter, RER wrote to Treasury urging guidance to ensure the OB3 Act’s restored 100 percent bonus depreciation provision supports real estate investment, job creation, and economic growth.
  • The letter emphasized that clear implementing rules will help bonus depreciation “facilitate the modernization and repurposing of real estate assets,” including underutilized offices, shopping centers, hotels, and mixed-use properties. (Roundtable Weekly, Oct. 17)

RER will continue engaging Treasury as it considers next steps to ensure the OB3 Act’s bonus depreciation provisions deliver on their intended investment and growth impact.

Energy Policy Update: Permitting Push, ENERGY STAR Preserved, Grid Stressed

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In Washington this week, President Donald Trump signed a bipartisan FY 2026 appropriations bill preserving ENERGY STAR funding, lawmakers refocused on permitting reform, and Winter Storm Fern exposed challenges to electric grid reliability driven by extreme weather.

ENERGY STAR

  • President Trump signed the bipartisan FY 2026 appropriations bill (H.R. 6938) into law on Jan. 23, securing approximately $33 million in funding for EPA’s ENERGY STAR program through Sept. 30. (E&E News, Jan. 29)
  • The agreement preserves the voluntary efficiency labeling initiative after earlier proposals to eliminate it and sets, for the first time, a specific mandatory annual funding level.
  • ENERGY STAR is a long-standing, market-based program that helps lower energy costs and supports “retrofit” investments for all commercial real estate asset classes. (Roundtable Weekly, Jan. 9)
  • The Real Estate Roundtable (RER) has long urged the “business case” to support the ENERGY STAR program. RER is working with a coalition of multi-industry partners in the real estate, manufacturing, consumer tech, and retail sectors to explain to Congress and the administration why ENERGY STAR is critical to the national “energy dominance” agenda. (Roundtable Weekly, June 6; May 23).

Permitting Reform

  • Senate EPW Committee Chair Shelley Moore Capito (R-WV) said permitting reform must be bipartisan, “project neutral,” and provide developers “predictability, consistency and finality” in securing permits in order to be effective. (E&E News, Jan. 29)
  • Abigail Ross Hopper (President and CEO of the Solar Energy Industries Association), testified that permitting reform should rest on three core principles: project certainty for approved projects, reduced timelines through streamlined and coordinated reviews, and a faster transmission buildout supported by stronger planning, permitting authority, and grid modernization. (UtilityDive, Jan. 29)
  • Faster permitting remains central to accelerating the buildout of the generation and transmission needed to meet rising electricity demand and improve reliability.

Winter Storm & Electric Grid

  • Ahead of Winter Storm Fern, the Department of Energy directed grid operators to be prepared to tap backup generation from large facilities—including data centers—to prevent outages and limit price spikes.
  • Energy Secretary Chris Wright framed the directive as part of a response to a “national energy emergency,” reflecting heightened reliability concerns as extreme weather collides with rapidly rising electricity demand from AI and other large loads. (WSJ, Jan. 22)
  • In the wake of this week’s winter storm, the North American Electric Reliability Corp. (NERC) warned that power generation and transmission are not growing fast enough to meet accelerating demand. NERC cautioned that several regions may lack sufficient energy supplies during extreme winter conditions, raising the stakes for grid expansion and resilience planning. (PoliticoPro, Jan. 29 | PoliticoPro, Jan 25)

RER will continue advocating for policies that remove permitting bottlenecks and support cost-effective grid modernization to ensure a robust supply of affordable power and a safe, reliable electric grid.

Fed Holds Rates Steady as Housing Affordability Pressures Shape Policy Debate

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The Federal Reserve building in Washington, DC

After the Federal Reserve’s Federal Open Market Committee (FOMC) concluded its January meeting on Wednesday by holding rates steady at 3.5 percent to 3.75 percent, President Donald Trump announced today he is nominating former Fed governor Kevin Warsh as the next Fed chair. (Axios, Jan. 30 | CBS News, Jan. 28)

Fed Chair

  • “I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” said Trump in a Truth Social post announcing the selection. (CNBC, Jan. 30)
  • Warsh still needs Senate confirmation and, if approved, would take over in May when Powell’s term expires.

Key Takeaways

  • The FOMC voted 10-2 to maintain rates, with Governors Stephen Miran and Christopher Waller dissenting in favor of an additional quarter-point cut. While most Fed officials still expect further reductions in 2026, Chair Powell emphasized that decisions will remain “data dependent.” (Fed statement, Jan. 28)
  • Fed Chair Jerome Powell said the economic outlook has “clearly improved” since the Committee’s December meeting.
  • Fed Chair Jerome Powell said the economic outlook has “clearly improved” since the Committee’s December meeting.
  • He cited growth and signs of stabilization in the labor market, while emphasizing that policymakers want greater confidence that inflation is moving toward the Fed’s 2 percent target before resuming rate cuts.
  • The U.S. economy grew at a 4.4 percent annual rate in the third quarter of 2025. Chair Powell noted that this performance suggests that interest rates are not currently restrictive enough to materially slow economic activity. (AP, Jan. 28)
  • Inflation remains above target, with the Fed’s preferred measure running near 2.8 percent late last year. Chair Powell acknowledged that recent tariff-related price pressures have lifted goods inflation but suggested those effects are likely temporary and could begin easing later this year. (AP, Jan. 28)
  • The Fed’s decision to hold rates steady reinforces expectations that borrowing costs will remain elevated through at least mid-year.
  • For commercial real estate, sustained higher-for-longer rates continue to place pressure on refinancing, valuations, and transaction activity.

Institutional Investor Legislation Introduced

  • Against this backdrop of a pause in rate cuts and broader concerns about housing affordability, lawmakers have renewed efforts to target institutional participation in the single-family housing market.
  • On Jan. 20, Reps. Summer Lee (D-PA), Ro Khanna (D-CA), Mark Takano (D-CA), and Jill Tokuda (D-HI) reintroduced the Stop Wall Street Landlords Act (H.R. 7138). (Press Release, Jan. 20)
  • The bill would deny mortgage interest, insurance, and depreciation deductions for large institutional investors that own single-family homes and impose a 100 percent federal real estate transfer tax on covered properties that are not sold within 18 months of enactment, with proceeds used to fund the federal Housing Trust Fund.
  • The proposal would also bar the Federal Housing Financial Agency, Fannie Mae, Freddie Mac, and Ginnie Mae from supporting single-family mortgages tied to large institutional investors. (CNBC, Jan. 18)
  • Other legislation aimed at restricting institutional investment in the single family rental market include:
  • Rep. Mary Miller (R-IL) introduced the American Family Housing Act (H.R. 7186), co-sponsored by Rep. Buddy Carter (R-GA), which would direct the SEC to enforce restrictions on large institutional investors (those with more than $100 billion in assets under management) from purchasing single-family homes. Rep. Miller serves on the House Agriculture Committee and Rep. Carter on the House Budget Committee.
  • The debate has taken on added political significance following President Trump’s recent statements and Executive Order on curtailing institutional ownership of single-family homes. (CNBC, Jan. 18 | Roundtable Weekly, Jan. 23)

Looking Ahead

  • Proposals such as the Stop Wall Street Landlords Act risk could further restrict housing supply and access to capital at a time when liquidity and investment are already under pressure.
  • As The Real Estate Roundtable (RER) and partners have emphasized, targeting institutional investment does not address the core drivers of unaffordability: high mortgage rates, rising construction costs, labor shortages, and restrictive zoning that limits housing supply. (Roundtable Weekly, Jan. 9)

RER will continue to engage policymakers about the importance of expanding housing supply, preserving access to capital, and maintaining regulatory flexibility to support long-term stability for the commercial real estate industry and the overall economy.

Fifth Circuit Reverses Tax Court, Sides with Taxpayer and Roundtable in Limited Partnership Tax Dispute

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The U.S. Court of Appeals for the Fifth Circuit issued a 2-1 decision in Sirius Solutions, L.L.L.P. v. Commissioner (No. 24-60240) on Jan. 16, restricting the federal government’s effort to extend self-employment taxes to a broad range of limited partners in limited partnerships. The Real Estate Roundtable (RER) submitted an amicus brief in the case, and the Court’s ruling closely aligns with the RER’s position.

Court Ruling

  • Since 1977, the tax code has exempted limited partners from self-employment taxes. In recent years, the IRS has asserted a new and more restrictive test to determine whether a limited partner qualifies for the exclusion.
  • The Fifth Circuit held that the Section 1402(a)(13) “limited partner” exception from self-employment (SECA) tax applies to a partner in a state-law limited partnership who has limited liability. (TaxNotes, Jan. 27)
  • The ruling vacates and remands the Tax Court decision that followed Soroban Capital Partners LP v. Commissioner (No. 25-2079), and applied a “functional analysis” of partner roles and activities to determine whether the SECA exclusion applies. (Sullivan Cromwell, Jan. 27)
  • The Fifth Circuit rejected that approach and held that “limited partner” in Section 1402(a)(13) is a status-based, state-law concept tied to limited liability, not an activity test.
  • The decision is the first appellate ruling to reach the issue and reverse the Tax Court’s restrictive interpretation. (Reuters, Jan. 21)
  • This ruling has set a precedent for future SECA tax cases, with significant consequences for real estate and other industries that use limited partnerships for business purposes.

Roundtable Advocacy

  • In August 2024, RER submitted an amicus brief to the Fifth Circuit. The brief argued that the IRS’s interpretation was flawed and inconsistent with decades of state law recognizing that limited partners can provide services while retaining limited partner status. (Roundtable Weekly, Sept. 6, 2024)
  • The brief emphasized that pre-1977 state court decisions and the IRS’s own 1994 proposed regulations contradict the government’s position that limited partners must be passive to avoid SECA taxes.
  • RER argued the Tax Court’s “passive investor” test is found nowhere in the statute and reflects a misunderstanding of partnership law that real estate and other businesses have relied on for decades.
  • RER has continued this advocacy across the circuits. In Dec. 2025, RER filed an amicus brief with the Second Circuit in Soroban, challenging the IRS’s restrictive interpretation of the “limited partner exception” under Section 1402(a)(13). (Roundtable Weekly, Dec. 19, 2025)
  • This successful outcome in the Sirius case supports RER’s position and could reduce momentum for formal tax guidance that would broaden the reach of SECA taxes.

What’s Next

  • Related appeals are pending in the First Circuit (Denham) and Second Circuit (Soroban). (TaxNotes, Jan. 27)
  • Divergent outcomes could create a circuit split and increase the odds of Supreme Court review. (Skadden Arps, Jan. 27)
  • The First Circuit is scheduled to hear oral arguments in Denham on Feb. 5. (TaxNotes, Jan. 27)

RER remains committed to protecting entrepreneurs’ ability to flexibly organize in partnerships and other pass-through entities that promote capital formation, risk-taking, and economic growth, and it will remain engaged as the SECA dispute moves forward.

RER’s State of the Industry Meeting Spotlights Housing Affordability, Energy, Tax Policy, Capital Markets, and Homeland Security

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This week, The Real Estate Roundtable’s (RER) State of the Industry (SOI) Meeting brought together policymakers, industry leaders, and experts to examine the market and policy landscape shaping the economy and commercial real estate in 2026—from housing affordability and financing conditions to energy constraints, tax policy, homeland security, and geopolitical uncertainty. (Agenda, Jan. Executive Summary, Policy Priorities)

  • The general themes emphasized throughout the meeting by RER members and guests centered on the value of communicating smart, timely issue analysis to policymakers, as well as the benefits to business risk management from political engagement. 
  • RER’s policy advisory committees on capital and credit, tax, sustainability, and homeland security were highlighted for producing trusted, fact-based analysis that strengthens the organization’s credibility and effectiveness. Similarity noted was RER’s political action committee (REALPAC), in supporting the industry’s advocacy goals.
  • RER leaders underscored that Washington policymaking is strategic, coordinated, and increasingly consequential for real estate investment and operations—and that staying engaged is essential as today’s debates will shape tomorrow’s legislative outcomes.

Meeting Speakers

  • Rep. Jason Smith (R-MO) (Chair, House Ways and Means Committee) was presented RER’s Champion of the Economy Legislative Leadership Award for his efforts on the One Big Beautiful Bill Act (OB3). He discussed the committee’s work ahead on bipartisan tax initiatives, trade issues, affordability, and housing-related incentives such as the low-income housing tax credit (LIHTC).
  • Mark Halperin (Editor-in-Chief, 2WAY; Host, “Next Up”) provided an overview of the current political environment, discussing President Trump’s governing style, the dynamics shaping the 2026 midterms, and early positioning for the 2028 presidential field.
  • Rep. Andy Barr (R-KY) (Chairman of the Financial Institutions Subcommittee on the House Financial Services Committee; Member, House Committee on Foreign Affairs) discussed the committee’s expected early action to extend the TRIA Program Reauthorization Act of 2026 (H.R. 7128), emphasized the importance of regulatory reform to strengthen capital formation and credit availability, discussed the Committee’s the bipartisan Housing for the 21st Century Act (H.R. 6644) and argued that boosting housing supply—and supporting financing capacity— is essential to improving affordability.
  • Rep. Mike Lawler (R-NY) (Member, House Committees on Financial Services and Foreign Affairs) stressed the importance of bipartisan legislating, framed housing affordability as a supply-and-investment challenge, and urged regulatory relief to spur new development. He also highlighted his bipartisan, bicameral transit-oriented housing bill, Build Housing, Unlock Benefits and Services (HUBS) Act, which would cut red tape and expand federal infrastructure loan tools to support transit-oriented development and boost housing supply. (Roundtable Weekly, Jan. 16)
  • Philip L. Swagel (Director, Congressional Budget Office) delivered a macroeconomic outlook on growth, inflation, and interest rate expectations, and highlighted long-term fiscal pressures, tariff and immigration dynamics, and the need to reduce regulatory bottlenecks that constrain housing supply and infrastructure investment.
  • Rep. Mike Flood (R-NE) (Chairman, House Financial Services Committee, Subcommittee on Housing and Insurance) joined a joint session of RER’s Real Estate Capital Policy Advisory Committee (RECPAC) and Research Committee to address housing and insurance priorities for the year ahead, including his TRIA Program Reauthorization Act of 2026 (H.R. 7128), the National Flood Insurance Program, and efforts to improve housing supply and affordability.

Committee Meetings

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

  • During the joint session, Hessam Nadji, (President & CEO, Marcus & Millichap) made a presentation on the Commercial Real Estate Investment Outlook for 2026 and led a market discussion with RECPAC Co-Chair Bryan McDonnel (Managing Director, Chair of Global Debt & Agriculture, PGIM Real Estate), David Fowler (BNY), and Andy Richard (Citigroup Global Markets Inc.). Genger Charles (Amherst), Sheila Greenwood (Invitation Homes), Lou Hayden (American Homes), and Ama Romaine (Pretium), held a panel on addressing the administration’s proposed restriction on institutional investments in single-family rentals. (See more in Housing story below)(See more in Housing story below) (Agenda & Speakers)

Tax Policy Advisory Committee (TPAC)

  • Kevin Salinger (Treasury Deputy Assistant Secretary, U.S. Treasury Department), Thomas Barthold (Chief of Staff, Joint Committee on Taxation), and other government speakers joined TPAC Chair Joshua M. Parker (Chairman & Chief Executive Officer, Ancora L&G), TPAC Vice Chair David Friedline (Partner, Deloitte Tax LLP) and committee members to discuss the continuing implementation of the OB3 Act, recent policy developments affecting sovereign investors in U.S. real estate, and the outlook ahead for tax legislation and regulatory changes. (Agenda & Speakers)

Sustainability Policy Advisory Committee (SPAC)

  • SPAC Vice Chair Tamara Chernomordik (VP, Corporate Responsibility, Kimco Realty led discussions on federal-state energy policy dynamics, the solar outlook, ENERGY STAR and Better Buildings, permitting reform, electricity reliability, AI-related load growth, and building performance standards. (Agenda & Speakers)

Homeland Security Task Force (HSTF)

  • Co-Chairs John Giacalone (VP, Global Safety and Security, Hilton Worldwide) and Amanda Mason (Executive Director, Global Intelligence, Related Companies) led a series of discussions on the evolving physical and cyber threat picture. Also joining the discussion were representatives of the FBI who discussed their new Homeland Security Task Force, Foreign Terrorist Organizations (FTO), and Criminal Activity; and Sports and Gaming (in light of the World Cup). The Task Force also discussed the growing importance of data center security as AI drives new operational and counterintelligence challenges. (Agenda & Speakers)

Next on RER’s FY 2026 meeting calendar is the Spring Roundtable Meeting in April. The Spring Meeting is limited to Roundtable-level members only. 

House Financial Services Committee Advances Long-Term TRIA Reauthorization Legislation

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The House Financial Services Committee marked up and passed with bipartisan support, the Terrorism Risk Insurance Act (TRIA) Program Reauthorization Act of 2026 (H.R. 7128), sponsored by Reps. Mike Flood (R-NE) and Andrew Garbarino (R-NY), extending the federal terrorism insurance backstop for seven years. (CIAT Letter | Hearing).

TRIA Reauthorization

  • The bill would extend TRIA through 2034 and raise the program trigger from $5 million to $10 million beginning in 2029. (PoliticoPro, Jan. 22)
  • The coalition letter emphasized that acting in 2026 would provide long-term certainty and help avoid disruptions if reauthorization were to slip into the program’s final year.
  • The legislation would also shorten the Treasury Department’s certification window for determining an act of terrorism from 90 days to 30 days, enabling claims to move sooner, along with other technical updates.
  • House Financial Services Committee Chairman French Hill (R-AR) said in his opening statement, “Extending TRIA not only safeguards American businesses but ensures that our economy remains resilient against potential threats.” (Press Release, Jan. 22)

Why It Matters

  • TRIA was originally enacted in 2002, following the 9/11 attacks. The program has been reauthorized four times—in 2005, 2007, 2015, and 2019—and is currently set to expire on Dec. 31, 2027.
  • While TRIA has never been triggered, it has provided a crucial backstop against losses from terrorist attacks for nearly two decades.
  • At almost no cost to the taxpayer, the TRIA Program has been the key factor in ensuring that the private insurance market has remained intact and continues to meet the needs of commercial policyholders during the on-going threat of a future terrorist attack—all while minimizing federal taxpayer exposure.

Roundtable Advocacy

Rep. Mike Flood (R-NE), lead sponsor of the bill at RER’S SOI RECPAC meeting
  • Since 9/11, RER has been at the forefront of efforts to enact a federal program to enable American businesses to secure the terrorism risk insurance coverage they need.
  • RER helped establish CIAT, a broad coalition of commercial insurance consumers formed immediately after 9/11 to ensure that businesses could obtain comprehensive and affordable terrorism insurance. (CIAT Talking Points on TRIA Reauthorization)
  • In September 2025, the House Housing and Insurance Subcommittee held a hearing on TRIA reauthorization, where members and witnesses from both parties voiced strong support for renewing the program ahead of its expiration.  CIAT also sent a letter before that hearing, warning that a lapse would trigger “a period of profound economic slowdown, posing a very real threat to our economic and homeland security.”  (Roundtable Weekly, Sept. 19)

The bill (H.R. 7128) now advances to the full House for consideration. RER and its CIAT coalition will continue working with policymakers to secure a long-term TRIA reauthorization ahead of 2027

Executive Order Seeks to Restrict Institutional Single-Family Home Purchases Amid Affordability Push

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This week, President Donald Trump signed an Executive Order directing federal agencies to restrict large institutional investors from purchasing single-family homes, framing the action as part of a broader effort to restore housing affordability and expand homeownership. (WSJ, Jan. 20)

State of Play

  • The Executive Order directs leaders at HUD, Treasury, FHFA, USDA, VA, and GSA to issue guidance limiting federal programs and government-sponsored enterprise (GSE) activities that facilitate institutional purchases of single-family homes that could otherwise be purchased by owner-occupants. (White House EO, Jan. 20)
  • The Order instructs the Treasury Secretary to develop formal definitions of “large institutional investor” and “single-family home” within 30 days, signaling that further details on implementation are to come. (White House EO, Jan. 20)
  • Agencies are also directed to promote first-look policies and disclosure requirements favoring individual buyers, while including narrow exceptions for build-to-rent communities planned and constructed as rental housing, and potentially other types of projects. (White House EO, Jan. 20)
  • DOJ and the FTC are instructed to review large-scale investor acquisitions in local housing markets for potential anticompetitive behavior, including coordinated vacancy or pricing strategies. (White House EO, Jan. 20)
  • Notably, the Order appears to focus on future acquisitions and does not contain language requiring sale, divestment, or unwinding of existing holdings, instead assuming continued ownership by requiring disclosure from current owners of single-family rentals. (White House EO, Jan. 20)

Remarks from Davos

  • Speaking at the World Economic Forum in Davos, Switzerland this week, President Trump reiterated many of the key points from the Executive Order.
  • In his speech, President Trump argued that institutional investors have distorted the housing market, stating that “homes are built for people, not for corporations,” and asserting that large firms purchasing “as much as 10 percent of houses on the market” have crowded out families and first-time buyers. (CNBC, Jan. 21)
  • President Trump also noted a complementary effort to lower borrowing costs, stating, “I’ve instructed government-backed institutions to purchase up to $200 billion in mortgage bonds to bring down interest rates.” (CNBC, Jan. 21)

Activity on Capitol Hill

  • Housing affordability was also a focus for leaders on Capitol Hill this week. HUD Secretary Scott Turner told the House Financial Services Committee that the administration is prioritizing housing supply expansion and regulatory rollback.
  • Sec. Turner cited HUD’s elimination of the Affirmatively Furthering Fair Housing (AFFH) rule—which he said “did not build one home” and functioned as a de facto national zoning mandate—as part of a larger push to cut red tape, empower local decision-making, and promote homeownership. (HUD Secretary Turner Testimony, Jan. 21)
  • On Thursday, the House Oversight Subcommittee on Economic Growth held a hearing titled “Housing Affordability: Saving the American Dream,” examining regulatory barriers, supply constraints, and market-based approaches to lowering housing costs. (House Oversight Committee, Jan. 22)
  • NAHB Chairman Buddy Hughes testified that regulatory burdens are a central driver of affordability challenges, noting that “nearly 24 percent of the price of a new single-family home is due to regulatory regimes at the state, local and federal levels,” which he said directly increase costs and limit housing production. (Witness Statement, Jan. 22)
  • AEI Housing Center Co-Director Edward Pinto told lawmakers that restrictive state and local land-use regulations are an “immovable object” constraining supply and driving prices higher, while demand-side measures alone risk exacerbating price pressures. (Witness Statement, Jan. 22)

What’s Next

  • The White House has indicated that additional housing-related executive actions are under consideration, particularly measures aimed at first-time homebuyers, as the administration looks to demonstrate progress on housing affordability ahead of the midterm elections. (Washington Post, Jan. 9)
  • The administration has also signaled its intent to pursue legislation that codifies elements of the Executive Order banning institutional investors from purchasing single-family homes, though prospects remain uncertain given jurisdictional, legal, and political hurdles. (White House EO, Jan. 20 | FOX Business, Jan. 21)

RER Advocacy

  • RER has consistently emphasized that expanding housing supply—not restricting capital—is the most effective path to improving affordability.
  • During this week’s RECPAC meeting, Genger Charles (Amherst), Sheila Greenwood (Invitation Homes), Lou Hayden (American Homes), and Ama Romaine (Pretium) participated in a member panel examining proposals to restrict institutional investment in single-family homes and the implications for housing supply, affordability, and capital formation.
  • Panelists emphasized that institutional investors are one piece of the housing ecosystem—not the reason homebuyers are being priced out, pointing instead to chronic supply shortages, elevated interest rates, and local regulatory barriers that raise costs and constrain production.
  • RER has also highlighted research showing affordability pressures are driven primarily by supply shortages, construction costs, and mortgage rates—not institutional ownership levels. (Roundtable Weekly, Jan. 9)
  • RER President and CEO Jeffrey DeBoer has stressed that “the gap between supply and demand is the true cause of today’s housing crisis,” calling for common-sense reforms that remove barriers to development and maintain incentives for the capital needed to build, modernize, and expand the nation’s housing stock. (Roundtable Weekly, Jan. 9)

RER will continue working with policymakers and the administration to advance supply-forward housing solutions that increase production, preserve access to capital, and help families—whether renters or homeowners—achieve the American Dream.

RER, Nareit Urge Practical GHGP “Scope 2” Standards for Real Estate’s Energy Purchases

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This week, The Real Estate Roundtable (RER) and Nareit submitted joint feedback to the Greenhouse Gas Protocol (GHGP) on proposed updates to its Scope 2 Guidance. The submission urges GHGP to preserve optional hourly and narrow geographic matching for bulk clean energy purchases, rather than make these strict “24/7” procurement conditions mandatory. (Summary memo | detailed comments, Jan. 23)

Background

  • Scope 2 emissions result from the generation of electricity, steam and other power purchased or acquired by a customer from a utility provider or grid operator. These emissions are not directly controlled by building owners or tenants, but depend on the types of fuels that power off-site grid infrastructure. (US-EPA) 
  • Last year, GHGP unveiled a set of proposed revisions to its Scope 2 Guidance. GHGP’s recommended modification to its global guidelines would require companies to match clean energy procurements (such as renewable energy certificates or power purchase agreements) to their actual electricity consumption on an hour-by-hour basis, rather than on an annual basis—a practice often referred to as “24/7 matching.” (GHGP Press Release, Oct. 20) 
  • The changes also proposed tight narrowing of geographic deliverability standards, requiring the purchased clean energy to be co-located on-site and/or within the same local grid segment. 

RER and Nareit Collaboration

  • The comments RER and Nareit submitted this week emphasize that 24/7 matching is not practicable for the vast majority of U.S. businesses that use GHGP guidance to voluntarily account for Scope 2 emissions. 
  • As RER and Nareit explained, 24/7 matching is not workable as a “one size fits all” standard practice for commercial building owners because they do notcontrol how much energy tenants use. Owners of multi-tenant buildings do not have dependable access to leased space energy data on a monthly—much less hourly—basis. (Summary memo)  
  • The joint RER-Nareit comments also explain that there is not enough solar or wind generation in many U.S. markets to support GHGP’s restrictive geographic deliverability mandate, and market and policy headwinds are expected to make corporate investments in renewables more challenging in the short term.
  • Further, RER and Nareit raised concerns about scientific validity, noting that electricity does not physically flow in accordance with contractual arrangements and that strict hourly “matching” is a misleading accounting construct.
  • RER and Nareit back an alternative approach put forth by GHGP working group participants that would maintain the current Scope 2 Guidance approach, allowing for—but not requiring—optional 24/7 matching.

Why It Matters

  • GHGP’s existing Scope 2 “quality control” criteria are a proven, successful framework that have helped spur significant growth in U.S. clean power purchases since 2015. The 24/7 matching mandate would reverse this trend.
  • Mandating strict time and place restrictions for corporate procurements like RECs will make compliance burdens with the Scope 2 Guidelines more onerous, increase costs, disincentivize private sector investments in clean energy—and not result in better information for investors.

January 31 Deadline

  • Real estate companies and their assurance providers submitting direct feedback to GHGP may wish to incorporate points from the joint RER/Nareit summary memo and detailed comments.

RER, Nareit and allied real estate stakeholders will remain engaged to advocate for a practical, science-based Scope 2 framework as GHGP moves to adopt new guidance.

RER Backs Community Banking Reform to Expand Credit and Local Investment

Posted on by abigail_grenadier

The Real Estate Roundtable (RER) submitted a letter of support this week for the Main Street Capital Access Act (H.R. 6955). RER praised the bill as a long-overdue step toward “common sense tailoring” of bank regulation in comments sent to House Financial Services Chairman French Hill (R-AR) and Financial Institutions Subcommittee Chairman Andy Barr (R-KY). (Letter, Jan. 8)

Background

  • Introduced on Jan. 7, the Main Street Capital Access Act looks to ease regulations on small and mid-size banks and increase their access to capital.  
  • The measure bundles 29 bills that advanced through the full House Financial Services Committee last year, several of which received overwhelming bipartisan support.
  • Chairman Hill said, “Over the past year, the Subcommittee on Financial Institutions under Chair Barr’s leadership has worked tirelessly to examine outdated regulations, listen directly to small businesses, and confront barriers to access capital for small and mid-sized banks. I am proud to introduce the Main Street Capital Access Act with Chair Barr to reinvigorate our community banks and return commonsense back to Main Street.”
  • Chair Barr will be a featured speaker at RER’s State of the Industry Meeting next week.
  • The package includes legislation that promotes new bank formation, expands local community access, tailors bank regulation, fosters fair and transparent bank supervision, and supports competition, innovation, and responsible bank partnerships.

Roundtable Advocacy

  • RER’s letter emphasizes that community and regional banks are vital to the financing ecosystem for commercial and residential real estate, and therefore play a key role in addressing the nation’s housing shortage.
  • “The Main Street Capital Access Act will help revitalize communities across the nation by encouraging local bank formation and enhancing credit capacity,” wrote RER President and CEO Jeffrey DeBoer. “By easing outdated regulatory burdens for community banks, it will help unlock more capital for housing and small businesses and permit Main Street community lenders to focus on serving families and local economies, making life more affordable for Americans.”
  • DeBoer also underscored the impact of the decline in new bank formation in recent years. “This lack of ‘de novo’ or ‘new’ bank activity, coupled with ‘banking deserts’ that are common in rural areas, has led to higher costs for households and less access to capital and investment for small and medium-sized businesses,” DeBoer added.

Why It Matters

  • Community banks serve as a primary capital source for local housing and commercial real estate projects, particularly in underserved markets where larger institutions may have little presence.
  • RER has consistently advocated for right-sized financial regulation that promotes liquidity in the CRE market while maintaining safety and soundness in the banking system. The Main Street Capital Access Act aligns with this principle by streamlining oversight and promoting innovation in the small-bank sector.

Next Steps

RER will continue to work with Congress and the administration to advance policy measures that encourage capital formation, enhance credit capacity, support housing production, and foster economic development in communities around the country.