Full Member Executive Conversation with Clifton E. (Chip) Rodgers, Jr., Senior Vice President, The Real Estate Roundtable – February 4, 2021

Chip Rodgers is the principal strategist and advocate for federal legislative and regulatory issues with The Real Estate Roundtable, which brings together leaders of the nation’s top public and private real estate development, lending and management firms with the leaders of major national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy.

Chip views himself as a recovering banker, having started his career with Mellon Bank in Pittsburgh. He then joined Fannie Mae during an intense period when they were losing $1.5M every day, requiring all hands on deck all the time.  He then moved on to investment banking with Credit Suisse, and Phillips Realty Capital representing life companies.

His political career included working for George H.W. Bush and a position at the Treasury Department.  He was involved in establishing the Resolution Trust Corporation (RTC), the U.S. government-owned asset management company charged with liquidating assets, primarily real estate-related assets such as mortgage loans, that had been assets of savings and loan associations (S&Ls).  He would go on to work on policy that was intended to even out the Boom and Bust cycles.  REITS in the 90’s and CMBS were great strides from the lone wolf cowboy days.

The Real Estate Roundtable was established with CEOs of major real estate owners from both public and private companies, as well as banks and investors.  Today, there are also 19 trade groups and associations represented. Policy committees drive their lobbying efforts.

After 9/11, The Roundtable helped to craft the Terrorism Risk Insurance Act.  Now because of Covid, they are working on the Business Interruption Coverage Act.  This will be a parametric program with a layer of support.  Either the insurance company would offer it with the Feds covering it, or the insurance company would take some risk along with the Feds.

Chip believes the Opportunity Zones have been successful, but he thinks the approach will be challenged at some point. Chip feels that the Presidential election was a “balanced approach mandate,” and not a “democratic mandate.”  For some issues, grid lock can be good.  He is not concerned about changes to the capital gains tax rate as it relates to real estate.  He does not believe the Senate will pass a Green New Deal.  Chip believes President Biden appreciates the art of compromise, but his challenge will be maintaining control.