On May 5, 2023, the Department of the Treasury’s Office of Investment Security published in the Federal Register a Proposed Rule that would amend the regulations pertaining to certain transactions by foreign persons involving real estate in the United States pursuant to section 721 of the Defense Production Act of 1950, as amended, and implemented by the Committee on Foreign Investment in the United States (CFIUS). The rule would amend a portion of the CFIUS covered real estate transaction regulations at 31 C.F.R. Part 802 regarding the term “military installations” and revise Appendix A (identifying specific bases, ranges and other installations that meet the CFIUS definition of military installations) to include the eight sites listed below:
- Air Force Plant 42, located in Palmdale, California
- Dyess Air Force Base, located in Abilene, Texas
- Ellsworth Air Force Base, located in Box Elder, South Dakota
- Grand Forks Air Force Base, located in Grand Forks, North Dakota
- Iowa National Guard Joint Force Headquarters, located in Des Moines, Iowa
- Lackland Air Force Base, located in San Antonio, Texas
- Laughlin Air Force Base, located in Del Rio, Texas
- Luke Air Force Base, located in Glendale, Arizona
These eight bases would be placed under Part 2 of Appendix A that applies to real estate that extends 99 miles outward from the boundaries of these military installations. These locations are new designations and were not previously listed in Part 1 of Appendix A which applies only to real estate within close proximity (i.e., one mile) from certain military installations. Once finalized, this rule would increase CFIUS’ jurisdiction and ability to review certain covered real estate transactions involving foreign investment within the “extended range” of these U.S. military installations.
Comments on the proposed rule must be received by June 5, 2023. Comments may be submitted electronically via the Federal government eRulemaking portal at https://www.regulations.gov. Electronic submission of comments citing “Provisions Pertaining to Certain Transactions by Foreign Persons Involving Real Estate in the United States.” Comments may also be submitted via regular mail to U.S. Department of the Treasury, Attention: Meena Sharma, Deputy Director of Investment Security Policy and International Relations, 1500 Pennsylvania Avenue, N.W., Washington, DC 20220.