REALTOR® G. Joseph Cosenza of the Oak Brook, Illinois-based Inland Real Estate Group testified on the current state of the commercial real estate market before a May 17 hearing of the U.S. House Financial Services Subcommittee on Oversight & Investigations in Chicago. The purpose of the hearing was for federal lawmakers to review federal laws, regulations, programs, and policies and their impact on the commercial real estate market and to hear proposals to mitigate turmoil in this important business sector. Illinois Congress members present were Judy Biggert (R-Hinsdale), Luis Gutierrez (D-Chicago), Melissa Bean (D-Barrington), and Bill Foster (D-Geneva).Committee Chairman Dennis Moore of Kansas (D-Lenexa) was also present.

"The commercial real estate industry supports 9 million jobs in every sector of the economy," said Cosenza, a 42-year veteran of the commercial real estate industry, in his expert testimony representing the National Association of REALTORS® and the Illinois Association of REALTORS®. Among the suggestions presented for rebuilding the commercial real estate industry were the following:

• Accelerate depreciation on commercial assets to improve cash flow.
• Increase the asset cap on business lending from 12.25% to 25% for credit unions in an effort to provide more market liquidity and options for business owners. Cosenza asked the members of Congress to support H.R. 3380 which is legislation that addresses this issue.
• Support for a mortgage insurance program that would cover the difference between current appraised value and the debt owned in order to refinance healthy, performing loans.
• Federal guidance to encourage extending current loans as an option instead of refinancing.
• Extending and simplifying the Term Asset-Backed Securites Loan Facility (TALF) program to help stimulate the commercial mortgage-backed sercurities market.

Said Cosenza in a related NAR statement: “Commercial real estate is the basis for much of the growth in the American industry and economy, and having a stable and well-functioning commercial market is crucial to our nation’s economic recovery. But the market is now in the midst of a financial meltdown and many property owners are underwater. We cannot regain our footing until action is taken on such issues as an enhancement of liquidity and extension of terms for performing properties.”