LA Harbor News

Washington D.C.— Congressman Robert Garcia (CA-42) is calling on federal regulators to guard against systemic risks to the financial sector posed by ongoing instability in the commercial real estate market.

Instability in sections of the commercial real estate market caused by increases in remote work and rising interest rates have triggered concerns about the stability of the financial system. Regional banks are disproportionately exposed to the commercial real estate market. In the wake of the failure of Silicon Valley Bank and Signature Bank, investor confidence in the banking system is critical. While broad sectors of the commercial real estate market remain resilient, threats to the office sector are concerning for communities, and investor concerns have the potential to cause further shocks to regional banks.

“As the Former Mayor of Long Beach, I know the importance of revitalizing downtowns, and keeping commercial real estate markets healthy.” said Congressman Garcia. “The administration should continue their work to maintain investor confidence, and Congress must be part of the solution. I want to understand the administration’s plan to maintain confidence, and to understand whether we can support the sector by converting unused commercial real estate to affordable housing.”

Ultimately, state, local and federal government agencies have a critical role to play supporting the long term health of our communities. Congressman Garcia believes that we can accomplish this by facilitating conversions of vacant office space to address our long term critical need to increase the supply of housing units, particularly affordable units, and particularly in areas which are well served by high quality transit.

The full letter can be read here.

Congressman Garcia believes that housing is a human right, and we have a moral obligation to ensure every one of our residents has access to homes that are safe and affordable. He remains committed to supporting cities as thriving engines of our economy, and is fighting to increase the availability of affordable housing everywhere. He knows it’s critical for us to invest in not only shelter, but supportive services and permanent housing for people who are unhoused. Congressman Garcia also believes we must redouble efforts to assist residents who are housing insecure. This is a long-term, structural problem and it requires us to take bold steps to create the new homes our community needs—especially along our transit corridors and job centers.

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Issues: Providing Safe, Affordable Housing for Every American  

Original source can be found here.