Maloney bill that would reveal true owners of LLCs gaining support

Congresswoman Carolyn Maloney discusses her legislation in Washington, DC. (Photo courtesy of Carolyn Maloney)

By Sabina Mollot

For the past decade, Congresswoman Carolyn Maloney has been pushing legislation aimed at preventing money laundering, often via real estate purchases, by cracking down on shell companies.

On Tuesday, May 14, Maloney held a press conference in Washington, DC about the bill, which she said is finally starting to gain traction in Congress along with having the support of law enforcement agencies, banks, credit unions and four real estate industry associations. Real estate groups in support of the bill are American Escrow Association, American Land Title Association, National Association of REALTORS, Real Estate Services Providers Council, Inc. (RESPRO).

“I’ve never had such huge support for one of my bills before,” said Maloney. “If this bill passes, it’ll be harder to finance terrorism.”

After reintroducing the Corporate Transparency Act, which is co-sponsored by Reps. Peter King and Tom Malinowski last week, she expects it to have a markup soon. A markup, unlike a hearing, is aimed at getting legislation passed in committee and moved onto the house floor. There have already been hearings for this bill, and there is also one set for next week. The bill hasn’t yet been discussed in the Senate.

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More NYC real estate being bought by LLCs

By Maria Rocha-Buschel

LLC involvement has been increasing in residential real estate purchases in the last 15 years, a new study has found. RealtyHop, a sister site of rental listings website RentHop, looked at data from 2004 to 2018 in four of the five boroughs, as well as co-op versus condo purchases.

One of the key findings of the study was that LLC (limited liability corporation) involvement increased to nearly 14 percent of transactions and accounts for almost 25 percent of the value of residential real estate purchases in that time frame.

The data science team combed through records on ACRIS (Automated City Register Information System), information made public by the city government, to examine how the use of LLCs has changed over time. Staten Island was not included in the study because data for the borough is not published on ACRIS.

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