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CREFC Names Lisa Pendergast 2021 Woman of the Year

January 11, 2022

Woman of the Year – Lisa Pendergast

Lisa Pendergast is the Executive Director of CREFC, previously serving as the 2010/2011 President, and is a former member of CREFC’s Board of Governors for over nine years. As Executive Director, Ms. Pendergast provides analysis and commentary on commercial real estate credit fundamentals and relative value within the private-label and agency CMBS and structured-product markets.

With more than 25 years of industry experience in the structured-finance markets, Lisa has been a top-ranked research analyst in the highly competitive Institutional Investor All-American Fixed-Income Research Team survey in the CMBS category. She has published several articles and reports on various aspects of the CMBS markets that appear in industry handbooks and academic journals, and is often quoted in the financial press on commercial real estate debt-related issues.

Prior to CREFC, Ms. Pendergast was with Jefferies LLC, as a Managing Director and Head of CMBS Strategy and Risk in the Fixed Income Division’s MBS/ABS/CMBS Group. Before joining Jefferies, Ms. Pendergast was a Managing Director in the Fixed-Income Strategies Group at the Royal Bank of Scotland, where she worked for eight years. Early on in her career, Ms. Pendergast focused on the residential MBS marketplace as a research analyst at Prudential Securities, authoring reports on various securitization structures and mortgage-related bond analyses, such as option-adjusted spreads.


Founders Award – Jan Sternin

Jan Sternin currently serves on the Commercial Real Estate Finance Council Board of Governors. She also serves as Senior Vice President and Managing Director at Berkadia where she is responsible for business development across the servicing platform as well as industry relations. Prior to joining Berkadia, she was responsible for business development, marketing and communications for Situs. Additionally, Ms. Sternin also served as Senior Vice President of Commercial and Multifamily for the Mortgage Bankers Association and CEO of MISMO, the MBA’s technology initiative for creating uniform data standards for the real estate finance community.

Previously, Ms. Sternin held the position of Senior Vice President at Midland Loan Services, responsible for marketing and sales activities and has worked with numerous governmental agencies including the Resolution Trust Corporation, Office of Thrift Supervision, Federal Savings and Loan Insurance Corporation, and the Federal Home Loan Bank System


Founders Award – Eric Hillenbrand

Eric Hillenbrand, whose career in CMBS investment spanned key roles at Frist Chicago, BankOne & JPMorgan Chase, was very integral in the early days of CREFC, which in its infancy stage was called the Commercial Real Estate Secondary Market and Securitization Association (the “CSSA”). Eric was a Founding Governor and a member of the Strategic Planning Committee from 2000 to 2001, a member of the Executive Committee from 2002 to 2003, a Board member from 2002 to 2005, and served on a number of other CREFC committees and initiatives, typical of his commitment to the industry and this Association.

Most notably, very early in CREFC’s history, Eric was a highly vocal and passionate advocate for more CMBS information to be distributed to investors, and more standardization of that information. He was an early proponent of the “CSSA 100”, envisioned to be one hundred fields of common, and commonly defined, information to be distributed via CMBS remittance reports. While he often said that “100 fields would not be enough”, he felt that at least “they would be a start”.

The industry owes a debt of gratitude to his vision, which was a precursor to the eventual Investor Reporting Package, a still-evolving and widely regarded information format that is a hallmark of the CMBS industry. The IRP has undoubtedly helped attract more investors to the sector, confident that there consistently will be a great deal of standardized information provided on CMBS, which better enables comparisons of bonds and informed investment decisions.

Sadly, on February 23, 2021, we lost Eric to COVID. Gratefully, his enormous influence on our sector remains and continues. In recognition of his business leadership, his contributions to best practices in transparency and professionalism, and his impact building the CMBS Industry, CREFC hereby posthumously awards Eric Hillenbrand the CREFC Founder’s Award. Eric’s son, Jeremy Hillenbrand, was going to attend the conference to accept this award on this Father’s behalf, but current conditions precluded his travel. On behalf of Eric’s entire, large, loving family, we accept this well-deserved award for them and for Eric Hillenbrand.


About CREFC
The CRE Finance Council (CREFC) is the trade association for the commercial real estate finance industry with member firms including balance sheet and securitized lenders, loan and bond investors, private equity firms, servicers and rating agencies, among others. CREFC promotes liquidity, transparency, and efficiency in the commercial real estate finance markets, and acts as a legislative and regulatory advocate for the industry, playing a vital role in setting market standards and best practices, and providing education for market participants.

Contact

Morgan McGinnis
mmcginnis@prosek.com
323-500-0939


The Commercial Real Estate Finance Council (CREFC) today at its annual January Conference in Miami, announced Lisa Pendergast as the winner of the second annual Woman of the Year Award. Additionally, Jan Sternin, Eric Hillenbrand and Brian Furlong were named as recipients of the 2021 Founders Award.


The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2021 CRE Finance Council. All rights reserved.
CREFC Names Lisa Pendergast 2021 Woman of the Year
January 11, 2022
Jan Sternin, Eric Hillenbrand, and Brian Furlong receive annual Founders Award.

News

January Conference Health & Safety Communications

CREFC looks forward to seeing everyone at our annual January conference in Miami.

After nearly two years of virtual and distanced meetings, we see significant value in convening with our peers and colleagues in-person.

With this in mind, CREFC is dedicated to ensuring your health and safety – and peace of mind – as much as possible while you join us next week. We kindly remind you to please stay home if you are feeling unwell or experiencing symptoms of COVID-19. The conference will be available to stream to ensure you receive the latest industry insights.

CREFC is following all CDC event guidelines for our conference and will be enforcing strict precautions throughout the entire event, including:

  • Proof of vaccination: All attendees must be fully vaccinated and provide proof of vaccination. No one will be allowed into any component of the conference without proof of vaccination.
  • Daily temperature scans: All registered attendees will have their temperatures scanned each day prior to gaining access to the conference.
  • Mask requirement: All attendees are required to wear a mask while indoors during the conference. Masks are strongly encouraged while in outside meeting spaces.
  • Social distancing: Ballrooms and meeting areas will be set to allow for distance between attendees.
  • Testing: CREFC will provide optional rapid COVID testing onsite for any attendee at no charge.
For your convenience, CREFC will be using Health Pass by CLEAR during the January Conference, which provides secure, digital proof of vaccination and other entry requirements before you check-in to the event. Download and enroll here.

For any questions, please reach out to Caitlin Adams. We look forward to seeing everyone in person next week.

Best,
Lisa Pendergast
Executive Director
CRE Finance Council

###

 

Contact

Caitlin Adams
Senior Manager, Meetings & Events
646.884.7577
cadams@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2021 CRE Finance Council. All rights reserved.
CREFC’s Conference in Miami Is On! Health and Safety Communications
January 05, 2022
CREFC looks forward to seeing everyone at our annual January conference in Miami. After nearly two years of virtual and distanced meetings, we see significant value in convening with our peers and colleagues in-person. With this in mind, CREFC

News

Businesses Face Mounting Flood Risks

January 1, 2021

On December 12, the First Street Foundation released a comprehensive report detailing the risks borne by commercial properties from the increasing frequency and severity of flooding. The report notes that while most flood risk analyses thus far have focused on the residential markets, “the commercial market is often made up of the most valuable physical structures in communities, employs much of the local labor force, and generally plays a key role in the sustainability of the local, regional, and national economy.”

According to this report:

  • 729,999 retail, office, and multi-unit residential properties are at risk of annual flood damage in the contiguous United States, with the count of buildings at risk growing by about 8% by the year 2052;
  • The structural damage associated with this risk is currently over $13.5 billion annually and expected to grow to $16.9 billion over the same time period;
  • The combined lost days of building operation for all retail and office buildings is estimated to grow from 3.1 million to 4.0 million lost days of operation annually; and
  • The economic impacts on local economies is estimated to grow from $26.8 billion in direct lost output and $23.0 billion in indirect impacts due to downtime days to $34.0 billion and $29.1 billion ($63.1 billion total), respectively (~26.5% increase over the time period).
The report ranks metropolitan areas and states by exposure to flood risk. The top five metropolitan areas with the highest estimated vulnerability to flood risk include Miami, New York, Pittsburgh, Boston, and Houston.

The information and data highlighted in this report are likely to become increasingly important as policymakers dig further into the financial impacts of climate risk, as outlined in the following article, on regulator guidance to banks on climate.

 

Contact

Sairah Burki
Managing Director, Regulatory Affairs
703.201.4294
sburki@crefc.org
The top five metropolitan areas with the highest estimated vulnerability to flood risk include Miami, New York, Pittsburgh, Boston, and Houston.
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2021 CRE Finance Council. All rights reserved.
Businesses Face Mounting Flood Risks
December 20, 2021
On December 12, the First Street Foundation released a comprehensive report detailing the risks borne by commercial properties from the increasing frequency and severity of flooding. The report notes that while most flood risk analyses thus far have

News

Biden Nominates Thompson as FHFA Director

December 20, 2021

On December 14, President Biden announced the nomination of Sandra Thompson to serve as Director of the Federal Housing Finance Agency (FHFA). Thompson is currently serving as the Acting FHFA Director. The post has been vacant since Biden fired former Director Mark Calabria after a June 2021 Supreme Court ruling that found the FHFA Director must be removable by the President at will.

Speculation on a permanent replacement has swirled for months, although House Financial Services Chairwoman Maxine Water (D-CA) had publicly urged Biden to select Thompson as a permanent replacement. Senate Banking Chairman Sherrod Brown (D-OH) lauded her nomination, as well.

While there are no obvious roadblocks to Thompson’s confirmation, the process will likely put the larger question of GSE reform back in the spotlight, at least momentarily. As Acting Director, Thompson has already proposed scrapping Calabria’s GSE Capital Rule and the Administration has not made ending the conservatorship a priority.

Affordability, rather, will likely continue to be a major focus for Thompson and FHFA. While FHFA raised the multifamily caps for 2022, it kept in place most of the affordability driven metrics. Click here for more information on the caps.

Contact

Lisa Pendergast
Executive Director
646.884.7570
lpendergast@crefc.org

Raj Aidasani
Senior Director, Research
646.884.7566
raidasani@crefc.org

Justin Ailes
Managing Director, Government Relations
202.448.0853
jailes@crefc.org

Sairah Burki
Managing Director, Regulatory Affairs
703.201.4294
sburki@crefc.org

David McCarthy
Managing Director, Head of Policy
202.448.0855
dmccarthy@crefc.org

Kathleen Olin
Managing Director, Industry Initiatives
202.448.0863
kolin@crefc.org

Christina Perez
Manager, Political and Government Relations
508.272.2592
cperez@crefc.org
Speculation on a permanent replacement has swirled for months, although House Financial Services Chairwoman Maxine Water (D-CA) had publicly urged Biden to select Thompson as a permanent replacement.
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2021 CRE Finance Council. All rights reserved.
Biden Nominates Thompson as FHFA Director
December 20, 2021
On December 14, President Biden announced the nomination of Sandra Thompson to serve as Director of the Federal Housing Finance Agency (FHFA). Thompson is currently serving as the Acting FHFA Director. The post has been vacant since Biden fired forme

News

FHFA Proposes Capital Planning Rule for Enterprises

December 20, 2021

On December 16, the Federal Housing Finance Agency (FHFA) issued a proposed rule that would require Fannie Mae and Freddie Mac (the Enterprises) to submit annual capital plans to FHFA. “Today’s action is part of FHFA’s commitment to safety and soundness and protecting the housing finance system throughout the economic cycle,” said Acting Director Sandra Thompson.

The proposed rule will help ensure that the Enterprises have robust systems and processes in place to monitor and maintain proper levels of capital. Adhering to a framework similar to other regulatory capital planning frameworks will better position the Enterprises, and the mortgage market, to withstand stressful economic environments.
Comments are due 60 days following publication in the Federal Register.

The proposed rule mandates that the Enterprises’ capital plans include:
  • An assessment of the expected sources and uses of capital over the planning horizon;
  • Estimates of projected revenues, expenses, losses, reserves, and pro forma capital levels under a range of the Enterprise’s internal scenarios, as well as under FHFA’s scenarios;
  • A description of all planned capital actions over the planning horizon;
  • A discussion of how the Enterprise will, under expected and stressful conditions, maintain capital commensurate with the business risks and continue to serve the housing market; and
  • A discussion of any expected changes to the Enterprise’s business plan that are likely to have a material impact on the Enterprise’s capital adequacy or liquidity.
The proposed rule also incorporates the determination of the stress capital buffer from the final Enterprise Regulatory Capital Framework (ERCF) into the capital planning process.

The planning horizon would be defined as at least nine consecutive quarters for the FHFA scenarios and at least five years for the internal scenarios, consistent with the Enterprises’ corporate forecasts. FHFA’s proposal differs from the banking framework, which has a nine-quarter horizon for both the regulator’s scenarios and bank’s internal scenarios. According to FHFA, a longer-term horizon for the internal scenarios would better allow the Agency to assess each Enterprise’s plan to rebuild capital to come into compliance with the ERCF.

Contact

Sairah Burki
Managing Director, Regulatory Affairs
703.201.4294
sburki@crefc.org
The planning horizon would be defined as at least nine consecutive quarters for the FHFA scenarios and at least five years for the internal scenarios, consistent with the Enterprises’ corporate forecasts.
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2021 CRE Finance Council. All rights reserved.
FHFA Proposes Capital Planning Rule for Enterprises
December 20, 2021
On December 16, the Federal Housing Finance Agency (FHFA) issued a proposed rule that would require Fannie Mae and Freddie Mac (the Enterprises) to submit annual capital plans to FHFA. “Today’s action is part of FHFA’s commitment to safety and soundn

News

New Memo Gives Insights into the 2022 Mid-Term Elections

December 20, 2021

Last week, a widely-watched observer of trends in politics, former senior advisor to President Bill Clinton, Doug Sosnik, released a memo “A Look Ahead to the 2022 Midterm Elections and Beyond” that explores the potential outcomes of the 2022 mid-term elections.

The memo argues that the mid-terms will serve as a referendum on Democratic leadership and stewardship. Sosnik identifies late-summer 2022 as a critical time for determining the outcome of the mid-term elections. Summer 2022 is a critical time because views “formed by how people feel about the current direction of the country and their daily lives” are “hardened by the end of summer in the runup to voting in the fall.” That gives Democrats six to eight months to turn their perceived polling weakness around. Sosnik writes that the state of the economy (inflation, employment, GDP growth) will determine the Democrats’’ fate in 2022, noting that “These three metrics most accurately gauge the strength of the economy and impact how voters think about the future.”

Sosnik also argues, “The results of the 2016 and 2018 elections led to five widely held assumptions that the 2020 Presidential elections and this year’s off-year elections demonstrated to be false.”

Sosnik believes that 2022 will be the best political environment for Republicans since 2010, adding that history is on the Republicans’ side in 2022 as the party in the White House traditionally loses House seats.

Contact

Christina Perez
Manager, Political and Government Relations
508.272.2592
cperez@crefc.org
The memo argues that the mid-terms will serve as a referendum on Democratic leadership and stewardship.
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2021 CRE Finance Council. All rights reserved.
New Memo Gives Insights into the 2022 Mid-Term Elections
December 20, 2021
Last week, a widely-watched observer of trends in politics, former senior advisor to President Bill Clinton, Doug Sosnik, released a memo “A Look Ahead to the 2022 Midterm Elections and Beyond” that explores the potential outcomes of the 2022 mid-ter

News

Anti-Money Laundering Roundup: FinCEN Releases Three Proposals

December 20, 2021

Over the past few weeks, Treasury’s Financial Crimes Enforcement Network (FinCEN) issued three proposals addressing various aspects of anti-money laundering (AML) requirements. We covered the Beneficial Ownership NPRM and the Real Estate ANPR last week in more detail, but key information is summarized below.

Risk of Money Launder in U.S. Real Estate Markets ANPR (Released Dec. 6)

  • At the core of the Advanced Notice of Proposed Rulemaking (ANPR) is whether FinCEN should extend AML and customer due diligence requirements to “non-financed” or all cash real estate transactions, including residential and commercial purchases.
  • While many CREFC members already are subject to AML requirements, the ANPR’s definition of “non-financed” transactions could actually include some financed transactions.
  • From the ANPR: ‘‘Non-financed purchase,’’ ‘‘non-financed transaction,’’ ‘‘all-cash purchase,’’ and ‘‘all-cash transaction’’ refer to any real estate purchase or transaction that is not financed via a loan, mortgage, or other similar instrument, issued by a bank or non-bank residential mortgage lender or originator, and that is made, at least in part, using currency or value that substitutes for currency (including convertible virtual currency (CVC)), or a cashier’s check, a certified check, a traveler’s check, a personal check, a business check, a money order in any form, or a funds transfer.
  • Comments are due February 7, 2022.

Corporate Transparency Act: Streamlining Beneficial Ownership Due Diligence NPRM (Released Dec. 7)

  • The Notice of Proposed Rulemaking (NPRM) is one more step to implementing the Corporate Transparency Act (CTA), which requires certain legal entities to disclosure and report their beneficial ownership to a FinCEN database.
  • This is the first in a series of three rulemakings necessary to implement the CTA, which will also address how financial institutions can use the FinCEN database to satisfy their Customer Due Diligence requirements.
  • Comments are due February 7, 2022.
Modernization of U.S. Anti-Money Laundering (AML) / Countering Financing of Terrorism (CFT) Regulatory Regime RFI (Released Dec. 14)
  • The Request for Information (RFI) seeking comments on ways to streamline, modernize, and update the anti-money laundering and countering the financing of terrorism (AML/CFT) regime of the United States.
  • The RFI is in response to the AML Act of 2020, which requires a formal review of existing AML regulations and a report to Congress.
  • Comments are due February 14, 2022.
CREFC will continue to analyze the FinCEN proposals and engage with members on possible comments. Please contact Sairah Burki and David McCarthy with any questions on comments.

 

Contact

Sairah Burki
Managing Director, Regulatory Affairs
703.201.4294
sburki@crefc.org

David McCarthy
Managing Director, Head of Policy
202.448.0855
dmccarthy@crefc.org
The proposed rule also incorporates the determination of the stress capital buffer from the final Enterprise Regulatory Capital Framework (ERCF) into the capital planning process.
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2021 CRE Finance Council. All rights reserved.
Anti-Money Laundering Roundup: FinCEN Releases Three Proposals
December 20, 2021
Over the past few weeks, Treasury’s Financial Crimes Enforcement Network (FinCEN) issued three proposals addressing various aspects of anti-money laundering (AML) requirements. We covered the Beneficial Ownership NPRM and the Real Estate ANPR last we

News

OCC Issues Draft Climate Guidance for Large Banks

December 20, 2021

On December 16, the Office of the Comptroller of the Currency (OCC) published climate-related preliminary guidance for banks with over $100 billion in total consolidated assets, posing 13 specific questions for the public’s consideration. According to the OCC, “these draft principles provide a high-level framework for the safe and sound management of exposures to climate-related financial risks, consistent with the existing risk management framework described in existing OCC rules and guidance.” Comments are due February 14, 2022. The OCC will provide further details on these principles next year.

The OCC’s draft principles include the incorporation of climate risk and related financial exposures into governance, policies and procedures, strategic planning, risk management, scenario analysis, and data and reporting. The document also provides additional color on appropriate risk management coverage areas, including liquidity, credit, operational, and legal risk.

According to Politico, the Federal Reserve said it would also be reviewing comments on the OCC document, “as we continue to move toward the development of an interagency set of supervisory expectations for the management of climate-related financial risks with a focus on large banks.”

Climate risk has been at the forefront of the Biden Administration’s agenda with several key climate-related executive orders and commitments. The Administration will likely continue to advance the issue via executive orders and regulatory mandates. CREFC continues to closely monitor both regulatory and legislative developments related to climate risk, particularly as they relate to commercial real estate markets.

In June 2021, CREFC responded to the Securities and Exchange Commission’s (SEC) initial request for public input on ways to improve climate disclosure, and continues to meet with SEC staff and leadership to share the industry’s perspectives and recommendations. CREFC will submit a response to the forthcoming proposal via our Sustainability Initiative (SI). This response will incorporate the work of the SI’s Transparency Committee, which is evaluating the climate-related data that can and should be incorporated into CREFC’s Investor Reporting PackageTM (IRPTM ).

 

Contact

Sairah Burki
Managing Director, Regulatory Affairs
703.201.4294
sburki@crefc.org
The OCC’s draft principles include the incorporation of climate risk and related financial exposures into governance, policies and procedures, strategic planning, risk management, scenario analysis, and data and reporting.
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2021 CRE Finance Council. All rights reserved.
OCC Issues Draft Climate Guidance for Large Banks
December 20, 2021
On December 16, the Office of the Comptroller of the Currency (OCC) published climate-related preliminary guidance for banks with over $100 billion in total consolidated assets, posing 13 specific questions for the public’s consideration. According t

News

Manchin on BBB: “This is a no on this legislation.”

December 20, 2021

The Senate, where courtesy is a virtue, is feeling less collegial today after Senator Joe Manchin (D-WV) disclosed on “Fox News Sunday” that he will not support President Biden’s family and climate spending Build Back Better (BBB) reconciliation legislation. The revelation came after the Senate adjourned for the year on early Saturday morning. Prior to adjournment the Senate confirmed 9 district court judges, 5 other positions, and broke through a Republican hold on 41 ambassadors. Manchin released this statement on the Build Back Better Act after his Fox News appearance.


Senator Bernie Sanders (I-VT) responded on CNN’s “State of the Union” on Sunday saying Manchin didn’t have the “guts” and “courage” to take on special interests. Sanders said he “absolutely” wants a vote on BBB even if Manchin will vote no saying, “Let him vote no in front of the whole world.” But NBC News noted that Manchin represents a state that Biden lost by 39 points in 2020, which strongly suggests Manchin has little to lose when it comes to his West Virginian voters by voting “no” on BBB.

Senate Majority Leader Chuck Schumer (D-NY) on Friday had admitted that BBB would not pass this year, saying in floor remarks, “The president requested more time to continue his negotiations, and so we will keep working with him, hand in hand, to bring this bill over the finish line and deliver on these much-needed provisions.”

And as late as Thursday evening, President Biden issued a statement saying, "Senator Manchin has reiterated his support for Build Back Better funding at the level of the framework plan I announced in September."

Where Does BBB Go from Here?
Axios reports that Democratic leadership is looking to set new deadlines in 2022 to “renew that sense of urgency,” and noted that Manchin is not the only obstacle. Disagreements within the Democratic caucus over how the reconciliation bill would address immigration and state and local tax deductions are still unresolved.

The Senate left Washington for the holidays and will return on Monday, January 3. While it is not clear, many expect Democrats to bring portions of the BBB legislation, such as an extension of child tax credit payments, which expire at the end of this year, to a vote in the Senate and pass as much of President Biden’s agenda as possible.

However, progressives are incensed at what they view as Biden and Schumer running down the clock with unnecessary negotiations with Manchin, while BBB’s climate change and social spending priorities languished, along with voting rights legislation.

Manchin Vexed over How Long BBB Programs Funded
A key part of the disagreement between Manchin and the White House is about how long programs in the Build Back Better legislation should be funded, which Axios says is an indication that President Biden may be willing to hold out for a bigger deal, as opposed to a faster agreement. BBB currently funds some programs for one year, while others are funded for 10 years. Axios reported that Manchin wants to agree to a single funding horizon before negotiating which individual programs should survive.

US Chamber Opposition to BBB
Manchin’s revelation that he will not support BBB in its current form also comes after Politico reported that the US Chamber of Commerce put extra pressure on Manchin in his home state by commissioning a television ad where residents of the state, vetted by the business group, thank Manchin for “fighting for my business,” and, “standing up for my family,” to oppose BBB. Another person in the ad says. “Keep fighting for us, senator. We can't afford higher taxes and more inflation.”

Policy Pivot
A November op-ed in The New York Times may provide a roadmap for Democrats to bring Manchin back to the table, which was highlighted this weekend by Axios. A think tank recommends that rather than “spreading the price among American taxpayers while leaving the cause of the underlying costs unaddressed," BBB should instead, “focus policymaking on increasing the supply of those expensive but vital goods and services, in what's come to be called ‘supply-side progressivism.’" This approach may offer Democrats a way to bring Manchin to agreement over President Biden’s spending priorities. Time will tell.

 

Contact 

Justin Ailes
Managing Director, Government Relations
202.448.0853
jailes@crefc.org
Senator Bernie Sanders (I-VT) responded on CNN’s “State of the Union” on Sunday saying Manchin didn’t have the “guts” and “courage” to take on special interests.
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2021 CRE Finance Council. All rights reserved.
Manchin on BBB: “This is a no on this legislation.”
December 20, 2021
The Senate, where courtesy is a virtue, is feeling less collegial today after Senator Joe Manchin (D-WV) disclosed on “Fox News Sunday” that he will not support President Biden’s family and climate spending Build Back Better (BBB) reconciliation legi

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