A new bipartisan bill (H.R. 5580) introduced in the House aims to alleviate the tax burden for borrowers facing troubled commercial real estate loans during debt workouts, according to a statement from the Real Estate Roundtable. The legislation, presented by Representatives Claudia Tenney and Brian Higgins of New York, could play a crucial role in facilitating a smooth transition towards a healthy and stable post-pandemic real estate market.
Real Estate Roundtable President and CEO Jeffrey DeBoer emphasized that public policy has always encouraged restructuring unsustainable loans as part of efforts to help businesses recover and assist taxpayers in getting back on their feet. He added that despite government interventions such as PPP loans, federal debt repayment suspensions, and foreclosure moratoriums on federally backed loans during the pandemic peak period; there is still uncertainty surrounding commercial real estate’s full economic impact.
DeBoer stated that remote work arrangements have put pressure on certain assets like office buildings while underscoring how vital loan workouts are between lenders and borrowers for finding solutions. These measures can ensure these properties continue supporting jobs while stimulating economic activity.
On September 26th Marcus & Millichap will host “A Conversation with Lloyd Blankfein,” featuring former Chairman & CEO of Goldman Sachs discussing insights into industry leaders’ perspectives regarding Federal Reserve policies influencing CRE markets alongside other critical issues affecting this sector with Real Estate Roundtable President DeBoer joining Tom McGee (ICSC), Sharon Wilson Géno (NMHC), Hessam Nadji (Marcus & Millichap president/CEO).
