A new bipartisan bill (H.R. 5580) introduced in the House aims to alleviate the tax burden for borrowers when modifying troubled commercial real estate loans as part of a debt workout, according to Real Estate Roundtable. The legislation, brought forth by Representatives Claudia Tenney and Brian Higgins of New York, could aid in creating a stable post-pandemic real estate market.
Real Estate Roundtable president and CEO Jeffrey DeBoer stated that public policy has always encouraged restructuring unsustainable loans to help businesses recover and support taxpayers. During the pandemic peak, federal government measures such as PPP loans, debt repayment suspension, and foreclosure moratoria on federally backed loans were implemented. Emergency legislation specifically excluded forgiveness of federal loan from cancellation of debt income.
DeBoer added that while we are still witnessing the full economic impact of COVID-19 on commercial real estate assets like office buildings due to remote work challenges facing cities; workouts between lenders and borrowers are crucial for finding solutions that will sustain jobs and economic activity.
On September 26th during Marcus & Millichap’s webcast “A Conversation with Lloyd Blankfein,” former Chairman & CEO at Goldman Sachs about insights from industry leaders regarding economy & CRE market factors; DeBoer will discuss various policy issues affecting this sector along with other industry leaders including Tom McGee (president/CEO at ICSC), Sharon Wilson Géno (president at NMHC).
