News Type: Roundtable Weekly

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.

Treasury Extends Tax Relief to Foreign Governmental Investors in U.S. Real Estate

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The U.S. Department of the Treasury and Internal Revenue Service (IRS) took a positive step last Friday in response to The Real Estate Roundtable (RER) and other stakeholder concerns, partially withdrawing and modifying proposed regulations on the taxation of sovereign wealth funds and other foreign governmental investors. (Treasury Press Release, May 29)

Why It Matters

  • Foreign investment, including investment by sovereign wealth funds, foreign pension funds, and other government entities, is a critical source of financing for capital-intensive U.S. real estate projects.
  • Section 892 of the tax code generally exempts from U.S. tax certain dividends, interest, and gains earned by foreign governments, unless the income is treated as commercial activity income or income from a controlled commercial entity. Foreign investors rely heavily on Section 892 when planning and structuring U.S. real estate investments.
  • In December, Treasury issued proposed regulations addressing two key questions under Section 892: (1) when a foreign government has effective control of an entity engaged in commercial activities, and (2) when an acquisition of debt is considered commercial activity. (Tax Notes, June 1)
  • The new regulations published on June 1 would ensure that existing foreign government investments, as well as investments acquired during a transition period, are not subject to the more stringent standards in the 2025 proposed rules. (Skadden, May 29)
  • As Treasury and the IRS continue to evaluate the underlying substantive issues, this most recent action ensures that the new rules will not retroactively increase the tax burden on existing real estate investments or have a chilling effect on foreign real estate investments currently under consideration.

RER Advocacy

  • In February, RER submitted comments urging Treasury to avoid imposing a retroactive new tax on existing investments and recommended clear grandfathering and transition rules as part of any final Section 892 regulations. The new Treasury proposal is a positive step that directly addresses those concerns. (Letter | Roundtable Weekly, Feb. 13 | Feb. 27)
  • RER also provided detailed comments on the underlying section 892 issues, urging Treasury to clarify that customary minority investor protections do not create effective control, confirming withholding agents may rely on foreign government self-certifications, and establishing safe harbors for certain debt-related situations. (Roundtable Weekly, Feb. 27)
  • In March, TPAC Chair Joshua Parker (Founder, Chairman and CEO, Ancora) reinforced RER’s concerns in a Bloomberg Tax op-ed urging Treasury to modernize Section 892 rules without discouraging sovereign investment in U.S. real estate and other long-term assets. (Roundtable Weekly, March 13)

What’s Next

  • Treasury Secretary Scott Bessent said the new guidance provides certainty for current investments and transition relief for sovereign investors, while Treasury continues to evaluate feedback to “uphold established market practices” and maintain a stable environment for sovereign wealth fund investment. (Treasury Press Release, May 29)
  • Treasury has not yet modified the substantive provisions related to effective control, commercial activity, and acquisitions of debt.
  • RER will continue working with Treasury and IRS to ensure final Section 892 rules preserve foreign government capital flows into U.S. real estate while maintaining the statute’s distinction between tax-exempt investment activity and taxable commercial activity.

Section 892 regulations and other foreign investment tax policy issues will be discussed next week during RER’s Tax Policy Advisory Committee meeting on June 10.

Housing Bill Returns to Senate as HUD Moves to Streamline Reviews

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The House and Senate return from recess next week as lawmakers continue negotiations on the bipartisan 21st Century ROAD to Housing Act, following the House’s 396-13 vote last week to pass the amended housing package. (Politico, May 24 | May 25)

What’s Next

  • The House-passed bill now returns to the Senate, where lawmakers must decide whether to accept the amended package or pursue additional changes as both chambers resume work next week. The Senate returns Monday, June 1, with no floor action on the housing bill scheduled yet. (Roundtable Weekly, May 22)
  • The White House said it “strongly supports” the House-amended bill and urged the Senate to pass it, asking both chambers to “resolve any remaining differences expeditiously.” (White House SAP, May 20 | CNBC)
  • Senate Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) said there is “still work to be done” on a final bill. (Politico, May 21)
  • Neither Senate Majority Leader John Thune (R-SD) nor Senate Minority Leader Chuck Schumer (D-NY) has publicly said whether they support the House-amended package. (Politico, May 21)

Key Reforms

  • The House-passed bill preserves core Senate provisions designed to expand housing supply, modernize federal housing programs, streamline environmental reviews, reduce barriers to new construction, improve affordability, support manufactured housing, and encourage local zoning and land-use reforms. (View Bill Text |  One-Pager | Section-by-Section | Bipartisan Policy Center, May 20) 
  • The most significant change is the removal of the Senate’s unconstitutional seven-year forced-sale mandate for build-to-rent (BTR) housing. Limits on large institutional investors remain, with exceptions for newly built and renovated housing. (Axios, May 21)

Roundtable Advocacy

  • Over the last several months, RER led efforts to raise constitutional concerns about the Senate’s forced-sale mandate, including through a white paper by former U.S. Solicitor General Paul Clement, which framed the provision as an unprecedented federal market intervention and detailed a “triple threat” to the U.S. Constitution. (RER’s One Pager, May 18 | RER Letter, May 12 | Roundtable Weekly, April 17)

HUD Regulatory Action

  • The Department of Housing and Urban Development (HUD) published an interim final rule this month to shorten environmental reviews for large, federally supported multifamily developments. The rule removes an additional approval step for projects with more than 200 units or a mortgage of more than $5 million. (Bisnow, May 27)
  • The change goes into effect June 22, and HUD is accepting public comments through July 21.
  • The rule is part of a broader federal effort to cut red tape, speed up housing construction, and help address rising costs. (PoliticoPro, May 22)

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

Roundtable Urges FTC, DOJ to Preserve HSR Real Estate Transaction Exemptions

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The Real Estate Roundtable (RER) submitted comments this week urging the Federal Trade Commission (FTC) and Department of Justice (DOJ) to preserve longstanding real estate exemptions under the Hart-Scott-Rodino Act (HSR), warning that eliminating them would impose substantial costs and delays on lawful real estate transactions without delivering any clear antitrust benefit. (Letter, May 26)

Why It Matters

  • The comments respond to an FTC and DOJ request for public input on potential changes to the Premerger Notification and Report Form, including whether the agencies should revisit exemptions for certain real estate transactions. (Letter, May 26)
  • The real estate exemptions were adopted in 1996 because these transactions were considered unlikely to violate antitrust laws.
  • The exemptions cover several categories of real property acquisitions, including office, residential, retail, hotel, warehouse, agricultural, recreational, and other rental real estate assets.
  • At the time, the FTC said the exemptions would “remove an unnecessary burden from business” and allow the FTC and DOJ to better focus resources on transactions more likely to cause competitive harm.
  • The letter emphasized that the same policy and economic rationale remain sound today, given that real estate markets are local, highly fragmented, and shaped by property type, geography, zoning rules, neighborhood characteristics, and other market-specific factors.

Market Impact

  • Eliminating the exemptions would create new regulatory burdens for transactions that have long been considered unlikely to raise antitrust concerns. (Letter, May 26)
  • HSR filing fees can reach up to $2.46 million, in addition to legal, financial, and operational costs associated with preparing filings.
  • Potential new filing requirements could slow transactions, disrupt market liquidity, and create additional uncertainty across real estate markets at a time when capital formation remains critical to investment and development.
  • The agencies have not provided evidence that circumstances have changed materially since the exemptions were adopted, or that exempted real estate transactions have had a negative effect on competition.
  • RER board member Ross Perot Jr. (Chairman, The Perot Companies and Hillwood), discussed the real estate market and how developers are keeping up with demand this week on CNBC’s The Exchange. He emphasized the need for pro-growth tax and regulatory policies to support investment, job creation, AI infrastructure, and responsible development in communities across the country. (CNBC, May 29)

Housing Supply

  • The letter warned that removing the exemptions would not be a targeted way to address concerns about single-family housing acquisitions by large institutional investors. (Letter, May 26)
  • The vast majority of transactions covered by the exemptions do not involve single-family housing, and many single-family housing transactions would not meet the $133.9 million HSR filing threshold even if the exemptions were removed.
  • Large institutional investors collectively own less than 1% of single-family homes nationally and make less than 3% of annual home purchases in the U.S. (Roundtable Weekly, Jan. 9)
  • The costs and delays of HSR reporting would fall disproportionately on smaller buyers such as homebuilders and residential developers acquiring land for new housing projects, potentially increasing development costs and slowing efforts to address the nation’s housing shortage.

Preserving the exemptions would help avoid unnecessary regulatory burdens, support market liquidity, and protect the capital needed to expand housing supply and strengthen the broader economy.

Sentiment Index Shows Market in Holding Pattern as Capital Conditions Improve but Transactions Lag

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The Real Estate Roundtable (RER) this week released its Q2 2026 Sentiment Index, which registered an overall score of 63, down three points from the previous quarter. The survey shows a CRE market with improving capital conditions and steady fundamentals, but one still constrained by limited transaction activity, pricing uncertainty, and uneven momentum across sectors. (Full Q2 Report)

CRE Market Conditions

  • The Current Index registered 61, down five points from Q1 2026, while the Future Index posted a score of 64, down three points from the previous quarter. (RER News Release, May 22)
  • Compared to one year ago, sentiment has improved: current conditions are up 11 points, future conditions are up six points, and overall conditions are up nine points. (Full Q2 Report)

Topline Findings

  • The Q2 Sentiment Index’s results reflect a market caught in stalemate, where capital is abundant, debt is open, and fundamentals are holding, yet transactions remain stuck behind a wide bid-ask spread. Sellers are refinancing rather than listing, geopolitical shocks have delayed an otherwise visible recovery, and a K-shaped dynamic is widening the gap between well-capitalized players and those running short on equity. The mood is patient, not pessimistic: a ‘decaffeinated’ recovery that participants believe will accelerate once pricing clarity returns.
  • Beneath the headline numbers, performance is increasingly defined by where firms are and what they own. Top-quartile markets and assets are pulling decisively away from the rest, with industrial, lodging, data centers, and high-quality retail running hot, while multifamily continues to absorb its supply overhang, and office remains sharply bifurcated between trophy assets and everything else. Across every sector, AI is emerging as both a demand driver and an operational force multiplier, reshaping where capital flows and how participants underwrite the next cycle.
  • A majority (53%) of respondents believe asset values are relatively unchanged compared to a year ago, while 32% feel they are higher and 15% think values have declined. Looking ahead, the outlook is overall optimistic: 54% expect asset prices to rise over the next year, 37% believe asset values will remain stable, and only 9% anticipate that values will decrease.
  • Perceptions on equity capital are split, with 24% believing availability is worse compared to a year ago, 33% thinking it is better, and 43% feeling it is the same. On the other hand, sentiment around debt capital is positive, as 69% said the availability of debt capital has improved from last year. Looking forward, 51% of respondents believe that equity capital availability will be better in one year, and 31% believe debt capital availability will be better.

Roundtable View

  • “Commercial real estate is on stronger footing than it was a year ago, but the recovery is still uneven,” said Jeffrey DeBoer, President and CEO of The Real Estate Roundtable. “Debt is available, values are stabilizing, and fundamentals are holding in many sectors. But transactions remain limited, equity capital is still cautious, and performance varies sharply by market and asset class.” (RER News Release, May 22)
  • “Now is the time for policies that encourage investment and capital formation—not new barriers that make it harder to build, finance, and modernize the real estate that supports housing, jobs, communities, and economic growth,” DeBoer added.

Data for the Q2 survey was gathered in April by Chicago-based Ferguson Partners on RER’s behalf.

House Passes Landmark Housing Bill, Sending Bipartisan Package Back to Senate

Posted on by abigail_grenadier

The House passed the amended 21st Century ROAD to Housing Act on Wednesday by a vote of 396-13, sending the bipartisan housing package back to the Senate for final consideration. The legislation includes major reforms to expand housing supply, modernize federal housing programs, reduce regulatory barriers, and removes the Senate bill’s unconstitutional forced-sale mandate targeting build-to-rent (BTR) housing. (Politico | The Hill, May 20)

State of Play

  • House Financial Services Committee Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA) led months of bipartisan negotiations over the landmark housing package, navigating extensive back-and-forth among the White House, House leadership, and the Senate. (View Bill Text |  One-Pager | Section-by-Section ) 
  • The White House indicated it will back the House version of the bill, as the legislation moves to the Senate for final approval. (White House SAP, May 20 | CNBC)
  • The House-passed version amends the Senate-approved legislation, addressing concerns raised by House members and industry stakeholders, while preserving core reforms to streamline housing development, improve affordability, encourage new construction, update outdated HUD programs, restore critical community banking provisions, and eliminate burdensome regulatory barriers. (House Financial Services Committee Press Release, May 20)
  • Chairman Hill said, “Today, we proved Washington still works. After months of bipartisan, bicameral negotiations—and with the partnership of the Trump Administration—the House delivered to make housing more accessible and affordable for American families.”(House Financial Services Committee Press Release, May 20)
  • Ranking Member Waters added, “I am beyond proud of this legislation and the benefits it will bring to all of our cities, counties and states. The Senate must meet this moment with the same urgency and determination and quickly pass this bill.” (Rep. Waters Press Release, May 21)
  • In a joint statement before the House vote, Senate Banking Committee Chairman Tim Scott (R-SC) and Sen. Elizabeth Warren (D-MA) said there is “still work to be done” on a final bill. (Senate Banking Committee Press Release, May 20)
  • Chairman Hill urged Senate negotiators to support the amended House bill, calling it “the best landing spot for the two chambers” and saying it reflects both chambers’ priorities and their shared commitment to a “bicameral bipartisan housing bill.” (Watch–Fox News | Roll Call, May 21)

What’s In the Bill

  • 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 is the removal of the Senate’s unconstitutional seven-year forced-sale mandate for BTR housing, which would have required certain owners to sell newly built single-family rental homes after seven years. (Axios, May 21)
  • Both Chairman Hill and Ranking Member Waters raised concerns about the provision’s constitutionality this week during their floor statements and an appearance on CNBC’s Squawkbox. (SquawkBox, May 19 | Roll Call, May 21 | Rep. Waters Floor Statement, May 19)
  • The bill still limits large institutional investors—defined as entities controlling at least 350 single-family homes—from buying additional single-family homes. However, it includes exceptions for BTR homes, newly constructed or renovated homes, rental conversions, and homes sold by another large institutional investor that already owned the property or acquired it in compliance with the bill. (Bisnow, May 20)
  • The bill also restores critical community banking provisions and includes measures to expand community lending, support transit-oriented development, improve federal tools for renters and homeowners, and convert abandoned buildings into housing.
  • Key provisions include:
  • Manufactured housing reforms to eliminate the outdated 1974 “permanent chassis” requirement for manufactured homes, which supporters estimate could reduce production costs by thousands of dollars per unit.
  • Zoning incentives to provide grants to local governments that adopt “pattern books” of pre-approved housing designs to speed up construction.
  • Permitting and development reforms to reduce delays, streamline environmental reviews, and lower barriers to new housing production.
  • Community lending and housing finance tools to support local development capacity, expand access to housing, and strengthen federal housing programs.

Roundtable Advocacy

  • The Real Estate Roundtable (RER) strongly endorsed the House amendment, which advances several housing supply and affordability reforms RER has long championed. (RER Statement | May 20)
  • “The latest amendment is focused where it should be — on increasing housing supply,” said RER President and CEO Jeffrey D. DeBoer. “Its sections to boost manufactured housing; help support renters interested in home ownership; build more homes in Opportunity Zones; streamline excessive environmental reviews that delay residential construction; encourage transit-oriented development; and promote much-needed land-use and zoning reforms, among other provisions, all add up to a comprehensive and robust package of smart housing policy.” (RER Statement | May 20)
  • Over the last several months, RER has led efforts to raise constitutional concerns about the Senate’s forced-sale mandate, including through a white paper by former U.S. Solicitor General Paul Clement, which characterized the provision as an unprecedented federal market intervention and outlined a “triple threat” to the U.S. Constitution. (RER’s One Pager, May 18 | RER Letter, May 12 | Roundtable Weekly, April 17)
  • More than 125 housing advocacy and industry groups supported the House amendment, urging lawmakers to advance legislation that would modernize outdated housing programs, reduce barriers to development, and increase flexibility for local communities. (Coalition Letter, May 18)
  • Following House passage, RER joined 10 other national housing organizations in commending House leadership for their work, while urging the Senate to swiftly pass the revised Act, calling it one of the most significant housing proposals in a generation. (Statement May 20)

What’s Next

  • The legislation now returns to the Senate, where lawmakers will determine whether to accept the House-passed package or pursue additional changes. With Congress out next week for recess, the earliest the Senate could take up the bill is June.
  • Sens. Scott and Warren have indicated they are not ready to accept the House-passed bill as-is and continue to push for the Senate-approved text. (Politico, May 21)
  • Neither Senate Majority Leader John Thune (R-SD) nor Senate Minority Leader Chuck Schumer (D-NY) has publicly indicated whether they will support the House-amended package. (Politico, May 21)

RER and its coalition partners will continue working with lawmakers as the housing bill moves back to the Senate 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