CREF Policy Update: House GOP Passes $3.8 Trillion Reconciliation Package; Preserves and/or Enhances MBA-Supported Tax Provisions
House GOP Passes $3.8 Trillion Reconciliation Package; Preserves and/or Enhances MBA-Supported Tax Provisions
Last week, after nearly 24 hours of a House Rules Committee meeting and numerous negotiations overnight (including with the White House), the U.S. House of Representatives passed (215-214; one Republican voting “present”) H.R. 1, a $3.8 trillion congressional tax, energy, and border security package.
• The bill also raises the debt limit by $4 trillion.
Why it matters: Importantly, the tax policy component preserves – and in some cases, enhances – key elements of the 2017 Tax Cuts and Jobs Act identified as a priority by MBA’s Board-approved Tax Task Force. This includes the utilization of Section 1031 like-kind exchanges and the continued deductibility of business interest for real estate.
• Importantly, the bill also includes an expanded deduction (from 20% to 23%) for Qualified Business Income under permanent a Section 199A, needed enhancements to the Low-Income Housing Tax Credit (LIHTC) program, and a new round of Opportunity Zones with program tweaks.
MBA recently sent a letter to House Ways and Means members prior to the tax policy package amendment vote and, along with other real estate coalition partners, has continued to fight to preserve current tax code elements that help maintain an appetite for investment in real estate – both commercial/multifamily and residential.
What’s next: MBA will provide a more detailed summary of the bill in the coming days. Following next week’s congressional recess, the Senate will use the House product as a baseline while crafting its own version of a reconciliation package. Any changes contained in a Senate-passed bill would then have to be mirrored and approved again by the House before the package could be signed into law by President Donald Trump.
• MBA staff will continue to engage with lawmakers and their key staff to advocate for our industry’s tax priorities throughout the remainder of the debate this summer.
For more information, please contact Bill Killmer at (202) 557-2736, Madisyn Rhone at (202) 557-2741, Rachel Kelley at (202) 557- 2816, and Fran Mordi at (202) 557-2860.
MBA Urges Reforms to the 2023 Davis-Bacon Rule
MBA and a coalition of real estate associations submitted a letter to Secretary Turner of the Department of Housing and Urban Development (HUD) and Secretary Chavez-DeRemer of the Department of Labor (DOL) urging them to repeal and revise the August 23, 2023, final rule, “Updating the Davis-Bacon and Related Acts Regulations” (“Davis-Bacon rule”).
• The letter calls for immediate suspension of the Biden-era rule, citing its negative impact on affordable housing production and financing. Changes being sought include split wage decisions, timing of the determination of wages, and updating the definition of residential structures.
Why it matters: The current Davis-Bacon rule increases development costs for affordable housing by 10-20%, complicates project execution, and deters contractor participation.
What’s next: MBA is urging DOL to cease defending the existing rule and begin a formal rulemaking process to revise it. The letter also calls for a temporary suspension of Davis-Bacon requirements for housing projects to help deliver immediate cost relief and support the current administration’s housing affordability agenda.
For more information, please contact Megan Booth at (202) 557-2470.
Recap: MBA’s Commercial/Multifamily Servicing and Technology Conference (CMST25)
Last week, MBA hosted more than 1,000 industry professionals at its Commercial/Multifamily Servicing and Technology Conference in Hollywood, Florida. The record number of attendees learned from industry experts, discussed market challenges and opportunities, and made and renewed connections with business partners and peers.
• AI, insurance, and fraud were recurring topics during the high-level general sessions, with detail oriented breakouts and active committee meetings digging into the specifics on topics such as cash management, investor reporting, property inspections, closing, default management, compliance, staffing, troubled loans, and more.
Why it matters: MBA’s Commercial/Multifamily Servicing and Technology Conference is the annual meet-up for the industry – building on the work the Servicing Council and its subcommittees do throughout the year.
What’s next: The Servicing Council will next meet (virtually) on July 17.
For more information or to get involved, please contact Jacky Salazar.
Life Company Senior Executive Roundtable & NextGen Day
MBA is pleased to invite senior life company leaders and their NextGen designees to join us in Washington, D.C., for MBA’s Life Company Senior Executive Roundtable and NextGen Day, taking place June 25–26.
Why it matters: With candid, peer-to-peer dialogue and insightful speakers, the Roundtable brings together life company CML leaders to discuss key issues affecting commercial real estate lending and investment, with a special focus on life company-related issues, opportunities, and challenges.
What’s next: Senior Leader registration & NextGen nominations are open.
For more information or to register, please contact Kelli Burke at (202) 557-2742 or Tonya Wright at (202) 557-2846.
That’s a Wrap on the 2025 Mortgage Action Alliance (MAA) Action Week!
Mortgage Action Alliance (MAA) Action Week was a hole in one! In total, 122 professional organizations, including 38 state associations, ran company-wide campaigns aimed at growing MAA membership.
• As a result, 2,417 new industry professionals joined MAA and 5,039 renewed their memberships, bringing total MAA membership to over 76,000! 994 advocates also responded to MAA Calls-to-Action alerts on issues currently in play, including a push for co-sponsorship of Senate legislation designed to update Federal Housing Administration (FHA) multifamily loan limits.
Why it matters: There is strength in numbers and policymakers pay attention when a large number of people weigh in. To date, MAA membership totals roughly 76,000 industry voices. Through regular contact with your lawmakers and their staff members via MAA Calls to Action, you can establish yourself as a “go-to” constituent for our industry. The LARGER the Group, the LOUDER the Voice.
What’s next: You can continue to make an impact and help grow our industry’s PAC. MBA’s federal, bipartisan political action committee, MORPAC, will also be hosting its annual fundraising campaign on June 23-27. Take the next step and SIGN UP to run a MORPAC company campaign (executive or grassroots). MORPAC provides access to build and strengthen relationships with pro-industry candidates and advance MBA’s legislative agenda.
For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Margie Ehrhardt at (202) 557-2708.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely commercial/multifamily and single-family programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – all complimentary to MBA members:
• MBA Roundtable with CMF Council Leadership – June 12
• Decoding Blanket Property Insurance for Commercial and Multifamily Properties – June 26
• Trends in Commercial Non-Bank Lending: Evolving Strategies & Creating Operational Advantages – Sept. 9
MBA members can register for any of the above events and view recent webinar recordings by clicking here.
For more information, please contact David Upbin at (202) 557-2931.
