NREO Support Letter

On June 11, 2012, a coalition of real estate organizations, including NAR, wrote to Reps. Tiberi (R-OH) and Neal (D-MA) thanking them for introducing H.R. 5746, the Update and Streamline REIT Act (U.S. REIT Act).  This legislation would make a number of narrowly targeted, but important, changes to the tax rules applicable to Real Estate Investment Trusts (REITs).  These changes will enable them to operate effectively, keep up with market changes, and remain consistent with the decades-old Congressional goal of making professionally managed, income-producing real estate available to investors from all walks of life. Below is the letter sent.

June 11, 2012

The Honorable Patrick J. Tiberi                     The Honorable Richard E. Neal

United States House of Representatives          United States House of Representatives

106 Cannon House Office Building                 2208 Rayburn House Office Building

Washington, D.C. 20515                                Washington, D.C. 20515

Dear Representatives Tiberi and Neal:

On behalf of the commercial real estate industry, we are writing to express our support

for H.R. 5746, the Update and Streamline REIT Act (U.S. REIT Act), and to thank you for your

leadership in co-sponsoring this non-controversial, bipartisan legislation.

In 1960, Congress enacted the original tax provisions that created the opportunity for

individual investors to obtain the benefits of large scale, income-producing real estate while

diversifying their investment portfolio. Today, REITs are widely held entities that own about

$900 billion of commercial real estate properties, amounting to approximately 20% of

investment grade commercial real estate in this country. At little or no revenue cost, the U.S.

REIT Act would make a number of narrowly targeted, but important, changes to the tax rules

applicable to REITs to enable them to operate effectively, keep up with market changes, and

remain consistent with the Congressional goal of more than five decades ago of making

professionally managed, income producing real estate available to investors from all walks of

life.

Commercial real estate is an important contributor to the U.S. economy and impacts the

way in which Americans live, work, shop, and carry on business. REITs are a small but

significant part of the larger real estate community. We applaud your efforts to keep the rules

governing REITs up to date to make it easier for investors to diversify their retirement and

savings portfolios, and we fully support H.R. 5746.

Sincerely,

American Hotel & Lodging Association

American Land Title Association

American Resort Development Association

American Seniors Housing Association

Building Owners and Managers Association (BOMA) International

CCIM Institute

CRE Finance Council

Institute of Real Estate Management

International Council of Shopping Centers

Investment Program Association

Manufactured Housing Institute

NAIOP, Commercial Real Estate Development Association

National Apartment Association

National Association of Real Estate Investment Trusts

National Association of Realtors

National Multi Housing Council

Realtors Land Institute

Society of Industrial and Office Realtors

The Real Estate Roundtable