CREF Policy Update May 6, 2021
Commercial and multifamily developments and activities from MBA relevant to your business and our industry.
1. President Biden Releases American Families Plan with Broad Tax Implications for Real Estate Finance
On Wednesday, President Joe Biden unveiled the American Families Plan, a $1.8 trillion addition to the previously announced $2.3 trillion American Jobs Plan. To pay for the plan, which would increase spending on a variety of social programs, President Biden has proposed a series of tax increases that could significantly impact real estate markets and our industry.
The proposals (in tandem) would increase tax rates on capital gains, eliminate “step-up” provisions and the use of carried interest, dramatically scale back the 1031 “like-kind” exchange, increase corporate and individual tax rates, and more. This summary, which MBA developed (and is included in this letter to all association members from MBA President and CEO, Bob Broeksmit, CMB), covers the broad real estate-related points of the president’s plan.
- Why it matters: Given political realities and the tight majorities in both the House and Senate, the administration’s proposal should be seen as an opening bid. However, any of the suggested real estate-related proposals could have serious implications for MBA’s members.
- What’s next: MBA will continue to advocate with the administration and on Capitol Hill against any threat to real estate finance markets as the congressional debate on tax and infrastructure advances.
2. SBA Will Accept Restaurant Revitalization Fund Application Beginning Next Monday
On May 3, the Small Business Administration (SBA) will begin accepting applications for eligible businesses who can benefit from the Restaurant Revitalization Fund (RRF). MBA strongly supported including the RRF emergency grant program as part of the American Rescue Plan that was signed into law on March 11, 2021, and is pleased that the program will start next week.
- Why it matters: The RRF establishes a $28.6 billion fund to assist the hard-hit restaurant industry. It is important to get this relief out as quickly as possible.
- What’s next: Information about how to apply is available here.
3. New York Legislature to Consider Eviction Moratorium Extension
On Monday, the New York Legislature is expected to consider an extension of the state moratorium on residential and small landlord evictions and foreclosures. The vote, originally scheduled for this past Wednesday, was rescheduled until Monday, in part because of concerns expressed by property owners.
- Why it matters: The draft legislation would extend the state moratorium on residential eviction and eviction for small business tenants, and foreclosures for some landlords, until August 31, 2021.
- What’s next: MBA is working with state trade groups to follow developments.
4. State Trackers:
- State eviction moratorium and legislative activity tracker available here.
5. Sign Up for the Sixth Annual MAA Action Week
The Mortgage Action Alliance (MAA), MBA’s free grassroots advocacy network, will be holding its sixth annual Action Week, May 3-14, 2021. Action Week is a national, industrywide campaign aimed at growing MAA and activating real estate finance professionals in key states and congressional districts. MAA has over 71,000 active members nationwide in an industry of over 330,000 employees.
- Why it matters: MAA needs to be louder and stronger than ever to ensure that Congress does not end up harming, more than helping, real estate and housing with any targeted changes to federal taxes that reduce support for capital formation and investment and negatively impact consumers.
- What’s next: MBA’s goal is to grow and sustain MAA’s membership to 75,000 members.
6. Speaker Highlights: MBA’s National Advocacy Conference – May 11-12
Register for MBA’s National Advocacy Conference (NAC) today to hear from a bipartisan duo: Rep. Anthony Gonzalez (R-OH) and Rep. Dean Phillips (D-MN).
- Why it matters: The two lawmakers are dedicated to finding common ground and breaking the partisan gridlock in Congress. They will share how they are working together on a bipartisan basis to advance key issues that impact the American economy, and will highlight the importance of nonpartisan political engagement with your elected officials.
- What’s next: Share your experiences, your voice, and your passion for our industry on May 11-12! Register today at mba.org/nac.
For more information, please contact Alden Knowlton at (202) 557-2816.
7. MBA’s Lisa Haynes, Charmaine Brown Recognized as DEI Leaders by the National Diversity Council
This week, MBA’s Lisa J. Haynes – SVP, Chief Financial Officer and Chief Diversity and Inclusion Officer, and Charmaine Brown – Director, Diversity, Equity, and Inclusion, were presented with awards by the National Diversity Council during its virtual, four-day Diversity & Leadership Conference. Haynes was presented with the Top 50 Financial Leaders Award, and Brown with the DEI Champion Award. MBA President and CEO Bob Broeksmit, CMB, commended both Haynes and Brown in a press release.
- Why it matters: The National Diversity & Leadership Conference is one of the largest diversity conferences in the nation – offering networking opportunities, professional development, and critical conversations surrounding diversity and inclusion.
- What’s next: To learn about MBA’s DEI Initiative, click here.
For more information, please contact Lisa Haynes at (202) 557-2835.
8. Upcoming and Recent MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – which are complimentary to MBA members:
- The 2020 Pandemic and Other Primary Factors of Urban Exodus – May 4
- Basics of Commercial Loan Closing and Loan Documentation – May 11
- Key FDCPA Compliance Issues and Considerations – May 18
- Harnessing and Leveraging Data in Today’s CRE Markets – May 18
- Introduction to Commercial Mortgage-Backed Securities – May 19
- CONVERGENCE: The Future is Female: How Women are Shaping the Future of Housing – May 26
- Retail 3.0: Re-Envisioning Retail – May 26