Congress Considers CRE Loan Guarantees 

New legislation that would allow the U.S. Treasury to guarantee new loans on commercial real estate (CRE) projects has been introduced in the House. The measure (HR 5816) would provide up to $25 billion in guarantees to provide more liquidity to the still-struggling commercial real estate sector.  The bill is targeted at smaller CRE owners who lack access to any capital, primarily because CMBS and bank mortgage debt are not available.

NAA/NMHC support the measure, as it would add liquidity to the commercial and multifamily real estate industry. The provision also would allow smaller and regional banks to move existing REO from their balance sheets through newly originated loans. There is no companion legislation at this time in the Senate, however, and the outlook for passage is unclear given the short legislative calendar and mounting concerns over deficit spending.

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