Treasury Secretary Mnuchin and Industry Leaders Address Coronavirus Policy Response, Racial Injustice, and Reopening Challenges

RER 2020 Annual Meeting visual

The Real Estate Roundtable’s first Virtual Annual Meeting this week attracted nearly 300 Roundtable members who remotely accessed discussions with Treasury Secretary Steven Mnuchin and industry leaders on COVID-19 policy responses, racial injustice and business reopening challenges.  The Roundtable’s policy advisory committee meetings also held their first remote meetings to analyze policy issues in the tax, capital and credit, sustainability and homeland security areas with subject matter experts from Capitol Hill, federal agencies and the private sector.  

  • Roundtable Chair Debra Cafaro (Chairman and CEO, Ventas, Inc.) launched the business meeting yesterday, noting the June 9 statement on racial injustice she issued with Roundtable President and CEO Jeffrey DeBoer.  (See related story below for more details)
  • Cafaro noted The Roundtable’s intense focus on the economic repercussions of the coronavirus.  She explained how the organization has successfully pivoted its focus to advocating policies that support economic recovery, including a pandemic risk insurance program modeled after TRIA; ongoing efforts to reform the Paycheck Protection Program; Federal Reserve credit lending facilities that accommodate CMBS; and federal efforts that could preserve the “rental obligation chain.”

  • Cafaro also announced that four individuals will join The Roundtable’s Board of Directors and three current Directors will depart, effective July 1.  The new Board Members are:
  • The exiting Board Members, who Cafaro thanked for their accomplished service, are:


Policy Issues & Featured Speakers 
  
The Roundtable’s June 11 Annual Business Meeting included the following speakers: 

  • Treasury Secretary Steven Mnuchin discussed the Administration’s work with Congress to address the economic fallout from the outbreak with The Roundtable’s Jeffrey DeBoer. Secretary Mnuchin emphasized how recent improvements to the Paycheck Protection Program (PPP) has helped small business borrowers deal with the economic impact of the global pandemic.  He added that the Administration is also considering business liability protections and pandemic risk insurance.
  • Citi’s Vice Chairman Raymond McGuire discussed “Real Estate’s Role in Addressing Racial Injustice” with Roundtable Immediate Past Chair William Rudin (Co-Chairman and CEO, Rudin Management Inc.).  McGuire noted that fortunate opportunities for an excellent education is what made the difference in his life experience and that providing similar opportunities to African American youths is of vital importance. 

  • “Reopening the Economy, Returning to the Workplace, Reinforcing Health Protections” panel featured leading industry executives discussing reopening strategies, operational protocols, potential liability concerns and more.  The discussion is available to stream at your convenience.  Separately, Roundtable Board Member and Sustainability Policy Advisory Committee Chair Tony Malkin (Chairman and CEO, Empire State Realty Trust, Inc.) was interviewed on CNBC this week on safety protocols and other measures that can be utilized for reopening businesses.  (CNBC interview, July 9)

  • Governor Jared Polis (D-CO) focused on Colorado’s approach to managing the outbreak, as it has recently reopened most businesses while practicing social distancing.  In his video interview, “States Set the Pace,” Gov. Polis discusses how state government can work with the real estate industry on practical safety measures to help businesses looking to reopen.

  • Dr. Scott Gottlieb, former Food and Drug Administration Commissioner (2017-2019) and Roundtable Chair Debra Cafaro discussed medical aspects of the novel coronavirus and his health policy perspectives on the crisis.  Dr. Gottlieb noted, “We still have a slowly expanding epidemic in the United States” that has a high case fatality rate.  He added that the world could see multiple vaccines with some targeting specific populations based on age or other factors.

  • Charlie Cook, Editor and Publisher of the Cook Political Group, outlined the dynamics of the upcoming election cycle during a health pandemic and economic downturn. Cook emphasized the importance of approximately 5 percent of independent voters who will make a choice in an election without third-party candidates. 


Roundtable Policy Committees 

The Roundtable’s Policy Advisory Committees and associated task forces also met remotely in conjunction with the Annual Meeting, offering a combination of live and recorded presentations for participants.  A video featuring all Roundtable Committee Chairs providing updates on each committee’s policy efforts is available on The Roundtable’s youtube channel.  

This week’s committee meetings analyzed policy issues in detail with high-level congressional and agency staff:

  • Research and Real Estate Capital Policy Advisory Committee (RECPAC):
    Rep. French Hill (R-AR), who serves on the House Financial Services Committee and the Congressional Oversight Commission on the CARES Act, provided insights on recent and future COVID-19 economic relief and stimulus during this joint committee meeting.  Additionally, industry experts discussed the state of real estate capital and credit markets, including the Fed’s Term Asset-Backed Securities Loan Facility (TALF). 
  • Tax Policy Advisory Committee (TPAC):
    House Ways & Means Chief Tax Counsel Andrew Grossman joined TPAC to share his perspective on committee priorities and the tax legislative outlook.  A panel of leading real estate tax authorities also discussed legislative proposals focused on the current distress in U.S. real estate – particularly debt restructurings, impaired rent and cancellation of indebtedness (COD) income.  Additional wide-ranging tax policy TPAC discussions are available on demand: 

  • Sustainability Policy Advisory Committee (SPAC):
    U.S. Environmental Protection Agency speakers provided an update on the ENERGY STAR certification program and its Portfolio Manager Benchmarking tool in the Covid-19 Era.  EPA and the Centers for Disease Control and Prevention (CDC) speakers discussed “Reopening Guidance for Cleaning and Disinfecting Workplaces.”  SPAC members also focused on “Healthy Building Strategies in a Global Pandemic” with the senior executives from the Center for Active Design and the International WELL Building Institute.  
  • Homeland Security Task Force meeting (HSTF) and Risk Management Working Group (RMWG):
    The joint meeting attendees heard briefings by government officials on the threat of civil unrest, looting, homegrown violent extremists and organized attacks on commercial properties – and the security, management and health challenges related to building re-entry.  The Task Force was also briefed on the need to enact a federal business continuity/pandemic risk program aimed at providing capacity for policyholders in need of insurance protection from the enormous costs associated with pandemics.

Next on The Roundtable’s meeting calendar is the September 22 Fall Meeting, which is restricted to Roundtable-level members only.  The Roundtable has also posted its 2021 meeting calendar dates.

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Lawmakers and Industry Leaders Discuss National Policy Challenges; Roundtable Releases Annual Report

House Ways and Means Committee Chairman Richard Neal (D-MA), Senate Banking Committee Member Sherrod Brown (D-OH) and other prominent lawmakers this week engaged Roundtable members on policies affecting the industry – including infrastructure, tax reform, the financial regulatory environment, and extending the Terrorism Risk Insurance Act – during The Real Estate Roundtable’s 2019 Annual Meeting in Washington, DC.

Four Roundtable Chairs in attendance at the 2019 Annual Meeting to recognize the organization’s 20th anniversary –  left to right, Randall K. Rowe (1998-2000); Robert S. Taubman (2012-2015); Debra A Cafaro (current); and Nelson C. Rising (2000-2003)
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  • Roundtable Chair Debra A. Cafaro  (Chairman & CEO, Ventas, Inc.) launched the business meeting by recognizing the organization’s 20 th anniversary of effective industry advocacy efforts; its recent success in attracting greater diversity to its membership; and its newly-released FY2019 Annual Report, ” Building Strong Public Policy, Now and for the Future. ”   
  • Cafaro noted, “During these past 20 years, our mission has been to bring the top leaders in the real estate industry together with the industry’s 17 leading trade associations to identify significant policy issues affecting our industry, job creation and the overall economy.  We will continue to analyze the issues for their real world impact based on solid research and facts, then advocate a nonpartisan, unified position to national policymakers.” 

Featured guests during the June 11-12 business and policy advisory committee meetings included: 

  • Ways and Means Chairman Richard Neal discussed his committee agenda for the year, including his efforts with the White House to develop a comprehensive infrastructure improvement program.  He also noted the need to reform or repeal the Foreign Investment Real Property Act (FIRPTA) of 1980.  Chairman Neal added that Ways and Means next week may address the extension of numerous expired or expiring tax provisions.  He also mentioned the committee’s agenda may include a tax overhaul technical corrections bill, which could include a correction to address a drafting error affecting qualified improvement property. (Roundtable Weekly, June 7) 

    Roundtable President and CEO Jeffrey DeBoer introduces House Ways and Means Committee Chairman Richard Neal (D-MA)

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  • Senate Banking Ranking Member Sherrod Brown acknowledged the urgency to address the reauthorization and extension of the Terrorism Risk Insurance Act (TRIA) before it expires at the end of 2020.  (The Senate Banking Committee will hold a  June 18 hearing on TRIA.)  He also said that housing finance reform, including reform of the Government Sponsored Entities (GSEs) Fannie Mae and Freddie Mac, also must address the urgent need for more affordable and workforce housing throughout the nation. 
  • Richard W. Fisher, former President & CEO of the Federal Reserve Bank of Dallas, discussed global and national monetary policy issues with former Roundtable Chair Robert Taubman (Chairman, President and Chief Executive Officer of Taubman Centers Inc.).  

A panel discussion moderated by Roundtable Treasurer Thomas M. Flexner (Vice Chairman and Global Head of Real Estate, Citigroup) focused on market conditions and the economic outlook with:  

  • Jeff T. Blau, CEO, Related Companies   
  • Adam Gallistel, Managing Director, GIC Real Estate   
  •  Timothy J. Naughton, Chairman, Chief Executive Officer and President, AvalonBay Communities, Inc. 
  • Barry Sholem, Partner, MSD Partners, L.P.  
Policymakers, congressional committee staff and regulatory officials also participated in The Roundtable’s policy advisory committee meetings for in-depth discussions about public policy issues in the areas of tax; capital and credit; energy and environment; and homeland security. 

 The Roundtable’s newly-released FY2019 Annual Report, “ Building Strong Public Policy, Now and for the Future 

  • During a joint meeting of the Real Estate Capital Policy Advisory Committee (RECPAC) and Research Committee, Rep. French Hill (R-AR) provided insights on housing finance reform efforts as a member of the House Financial Services Committee.  Federal Housing Finance Agency Director Mark Calabria also shared his views on reform efforts from a regulatory perspective.  ( Politico , June 12, ” Housing regulator seeks power from Congress to overhaul mortgage finance “) 
  • An evening dialogue with former White House Chiefs of Staff Denis McDonough (2013-2017, President Barack Obama) and Reince Priebus (January 2017-July 2017, President Donald Trump) included their perspectives on current and future policymaking efforts. 
  • During the meeting, The Roundtable membership also approved three proposed FY2020 Roundtable Board members , effective July 1: 
  • Scott Jones , Vice President of Jacobs Engineering and Chair-Elect of Building Owners and Managers Association (BOMA), International 
  • Amy Rose , President & CEO, Rose Associates
  • Robert Spottswood , President of Spottswood Companies and Chair of the American Resort Development Association (ARDA)  
The Roundtable’s FY2019 Annual Report will be sent to the membership in early July.  Next on The Roundtable’s calendar is the Fall Meeting on October 30 in Washington, DC (Roundtable-level members only).