Agenda Summary National Association of REALTORS® 2012 Midyear Meetings Omni Shoreham Ambassador Room, Lower Level Wednesday, May 16, 2012 9 a.m. – 10:30 a.m.
Chair: Max Gurvitch, Green Vice Chair: Cindy Chandler, CCIM, CRE Committee Liaison: H. Blaine Walker, CRB, GRI Committee Executive: Vijay Yadlapati
Purpose: To identify and analyze emerging legislative and regulatory issues that impact commercial real estate; monitor and analyze current and prospective housing issues affecting federal multifamily housing programs and recommends appropriate policy; to develop, communicate, and advocate public policy which benefits the business interest of our commercial members while protecting and enhancing the right to own, use and transfer real property.
I. Call to Order and Opening Remarks
II. Ownership Disclosure and Conflict of Interest Policy
V. Issue Updates: Credit Union Lending, Covered Bonds, and Lease Accounting Continued economic weakness and uncertainty are contributing to lackluster demand for commercial space, which has resulted in reduced operating incomes, property values and equity—all of which complicate efforts to refinance maturing loans. Approximately $1.6 trillion in commercial real estate mortgages will mature between 2012 and 2016. Currently there is insufficient credit capacity for small businesses and other commercial property owners to refinance this wave of loan maturities, which could result in higher loan defaults and delinquencies—further endangering economic recovery.
NAR is supporting H.R. 1418 and S. 2231. Credit unions can fill in the commercial real estate lending gap, and help get capital to the struggling small businesses that occupy commercial space. In addition, NAR is supporting H.R. 940 and S. 1835 to create a U.S. covered bond market, which would complement the fragile commercial mortgage-backed securities (CMBS) market by providing an additional new source of capital for the commercial real estate.
VI. Small Business Administration Panel: Commercial 504 Refinance Program The SBA 504 refinance program which helps business owners buy commercial property had been a zero-subsidy program prior to the current recession. Now that the program is experiencing financial difficulties Congress and others are looking closely at the program.