REMIC Tax Bill Gets Boost

Commercial real estate interests are stepping up their efforts to pass a REMIC modernization bill now that they have received a favorable revenue ruling from the Joint Committee on Taxation.The joint House-Senate tax committee determined that the bill (H.R. 4113), which would make it easier to renovate existing buildings after the loans have been securitized in a real estate mortgage investment conduit, would reduce revenues by $4 million the first year and by only $11 million over 10 years. This bill, sponsored by Reps. Mark Foley, R-Fla., and Earl Pomeroy, D-N.D., will have a negligible effect on government revenues, according to six CRE groups. "Perhaps more importantly, by facilitating renovation of commercial properties, this legislation will help spur new economic growth and employment," the trade groups say in a letter to members of Congress. The Commercial Mortgage Securities Association, the International Council of Shopping Centers, the Mortgage Bankers Association, the National Association of Real Estate Investment Trusts, the National Association of Realtors, and the Real Estate Roundtable signed the letter. "It is something we strongly support and have been building support [for] since the beginning of the year," said MBA's top lobbyist Kurt Pfotenhauer.