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The Government Shutdown’s Impact on CRE
Government Shutdown's Impact on CRE
The federal government is currently heading into day 19 of a partial government shutdown. The shutdown affects the operations of nine federal departments and dozens of agencies, including Treasury, Interior, Homeland Security, and Justice — with nearly 800,000 federal workers furloughed or working without pay. Standard and Poor’s estimated that 2013’s 16-day, full government shutdown cost the economy nearly $24 billion. Areas of the shutdown directly affecting commercial real estate include:
  • The Treasuring Department hearing on the proposed Opportunity Zones rules originally scheduled for this Thursday, Jan. 10, has been postponed until funding for the Treasury Department is restored. 
  • Thanks to the efforts of the National Association of REALTORS®, FEMA will continue issuing and renewing National Flood Insurance Program policies during the shutdown, reversing their original course to not issue or renew policies during the shutdown.
  • The Federal Housing Administration will not process new commitments for multifamily housing projects, according to an update by NAR.
  • The Small Business Association will not initiate new loans during the shutdown. As noted in an article by Commercial Observer, retail tenants who rely on such loans in their business operations will be acutely affected.
  • The Environmental Protection Agency and the Department of the Army announced they are postponing the Jan. 23 public hearing on the new “Waters of the United States” definition that was recently proposed. The hearing will be rescheduled after appropriations are made to fund the EPA.