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PRESIDENT'S REAL ESTATE INVESTMENT INCENTIVES ENDORSED BY RTC ADVISORY BOARD

 PRESIDENT'S REAL ESTATE INVESTMENT INCENTIVES
 ENDORSED BY RTC ADVISORY BOARD
 WASHINGTON, Feb. 7 /PRNewswire/ -- An advisory board to the Resolution Trust Corporation (RTC) Wednesday applauded proposals made by President Bush to restore value to real estate.
 Meeting in Richmond, the Region 1 Advisory Board to the S&L cleanup agency specifically endorsed portions of the President's plan that would cut the capital gains tax; provide a more level playing field for rental property loss recognition; remove obstacles to pension fund investment in real estate, and offer incentives to first-time homebuyers.
 Earlier in the meeting, Peter Monroe, president of the Thrift Depositor Protection Oversight Board -- the RTC's policy review board -- noted that the RTC currently holds about $65 billion in real estate, non-performing mortgages and hard-to-sell commercial mortgages. When that $65 billion is added to the sum of similar assets held by other agencies, Monroe said, the total inventory owned by the federal government is about $120 billion. Thus, he maintained, by helping increase values even 10 percent, the President's measures could bring a $12-billion increase in sales proceeds to the government -- and taxpayers.
 "In other words," Monroe said, "I hope Congress considers not only the potential increase in tax revenues from the President's proposals, but also the increase in sales revenues possible."
 Monroe continued: "Under the President's proposals, real estate developers would be taxed like other industries on a net vs. gross basis, without undoing the 'active-passive' dichotomy appropriately introduced by the 1986 Tax Act to prevent excessive benefits to passive investors. Certainly re-establishing fairness for real estate taxation under current tough real estate conditions also will help the government reduce further bank and S&L defaults, which were exacerbated by certain provisions of the 1986 Tax Act."
 Monroe's comments followed his review of RTC achievements to date, including liquidation of two-thirds of its current asset pool, with cash proceeds of more than $218 billion. The oversight board president also discussed the recent Senate confirmation of RTC Chief Executive Officer Albert V. Casey.
 Casey "already is having a profound positive impact on the RTC," Monroe said, singling out the CEO's recent decision to delegate more responsibility to field offices, "reducing red tape and moving to streamline a complex organization."
 Among RTC representatives providing further information on the agency's activities were: William M. Dudley, regional vice president, Eastern region; William C. Thomas, director, Mid-Atlantic consolidated office; Thomas Horton, vice president/asset sales, national office, and Stephen Allen, director of the Affordable Housing Program, national office.
 In making its endorsement, the advisory board recommended that Congress move swiftly to implement the President's program, as outlined in his State of the Union address. While agreeing with Monroe's support of the plan, though, the board recommended that the so-called "passive" loss proposal be taken further, allowing all active investors -- not just developers -- to be taxed on a net vs. gross basis, as is done in all other industries.
 "With the contraction of credit from financial institutions, insurance companies and pension funds, it is essential to restore investment and tax incentives available to all other industries to aid in the disposition of the $120 billion of government-held real estate," said Advisory Board Chairman Henry A. Berliner, Jr.
 "Moreover," Berliner said, "these incentives will restore health to housing, real estate and construction, which are the traditional leaders in an economy emerging from recession."
 The Financial Institutions Reform, Recovery and Enforcement Act of 1989 required the establishment of six regional boards to advise the RTC on policies and programs for the disposal of real estate acquired from insolvent S&Ls. The five-member boards meet four times yearly at various sites in their respective regions.
 Region 1 represents the states of Alabama, Connecticut, Delaware, Florida, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia and West Virginia and the District of Columbia. Members of the Region 1 advisory board are: Chairman Berliner of Annapolis, Md.; G. Lindsay Crump of Savannah, Ga., Alpha Johnson of Mobile, Ala.; Charles Kopp of Philadelphia, and Stanley Tate of Miami.
 -0- 2/7/92
 /CONTACT: Bonnie M. Limbach of the RTC, 202-786-9672/ CO: Resolution Trust Corporation ST: District of Columbia IN: FIN SU:


JT -- NY077 -- 8003 02/07/92 19:00 EST
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Publication:PR Newswire
Date:Feb 7, 1992
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