Policy Issues

CFIUS Reforms in the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA)

October 17, 2019

View Letter

The Roundtable submitted comments to the U.S. Department of the Treasury regarding the proposed implementing regulations for the recently enacted Foreign Investment Risk Review Modernization Act (FIRRMA).

In the letter, The Roundtable commends efforts by the Committee on Foreign Investment in the United States (CFIUS) and the U.S. Treasury to promulgate rules for the protection of our markets and a safe country within which to invest.  The Roundable also recognizes that investors both in the U.S. and abroad value predictability and transparency in the regulation of real estate and other investments.  Certain aspects of the proposed rules are unnecessarily complex. and  undermine predictability and transparency from the standpoint of investors (and may even result in decreased or delayed foreign investment in urban areas).

The recently enacted Foreign Investment Risk Review Modernization Act (FIRRMA) allows the CFIUS to review transactions involving foreign entities of concern, including virtually any type of real estate transaction in close proximity to U.S. government facility – including "greenfield" investment in vacant land. The “real estate provision” includes carve-outs for “single housing unit” and properties that are in an "urbanized area” based on the Census definition.

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