Policy Issues

The Roundtable Opposes NASAA Proposal Affecting REITS, Multifamily Industry, Capital Formation

September 9, 2022

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The Real Estate Roundtable submitted comments on September 9, 2022 to the North American Securities Administrators Association (NASAA) in opposition to proposed rules that would place new restrictions on the market for public non-listed REITs. 

  • Since nontraded real-estate investment trusts are not listed on stock exchanges, investors purchase shares through financial brokers. Federally regulated, public non-listed REITs (PNLRs) raised a record $35.4 billion last year. (Wall Street Journal, Aug. 30)
  • Roundtable President and CEO Jeffrey DeBoer emphasized in the NASAA letter that PNLRs are a growing source of capital to the acquisition and development of affordable housing, commercial properties for small businesses, and other types of real estate that supports economic growth and employment.


  • “The Roundtable encourages NASAA to conduct or at a minimum to address the economic impact of the proposal in its justification before considering adoption,” DeBoer stated. (Roundtable comment letter, Sept. 9)


  • The Roundtable’s letter also notes the proposal would impose arbitrary restrictions that would limit investor choice during a time of stock market volatility and high inflation. 

The Roundtable’s letter concludes by urging NASAA to withdraw their proposal and engage industry participants to craft regulations that will help ensure NASAA’s goals without stifling investment in commercial real estate—nor limit investors’ ability to diversify their portfolios. 

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