CHICAGO—1031 exchanges are popular among investors, but might not be well-understood by members of Congress, and recent proposals to limit the exchanges has worried many that Washington will cut a deal on the issue before experts get a chance to weigh in. But the Alternative & Direct Investment Securities Association, formerly known as REISA, expects more than 500 industry professionals to attend its Spring Symposium next week at the Hyatt Regency New Orleans, and will start spreading the word about the possible changes to 1031 exchanges, among other key issues.

“The symposium is about six months away from our national meeting in Las Vegas,” John Harrison, ADISA's chief executive officer and executive director, tells GlobeSt.com, and gives participants a chance to get updates on regulatory changes and “drill down on hot topics.” And this year, the status of 1031 exchanges has become a potentially contentious issue.

“There is some rumbling going on both sides of Congress,” Harrison says, about possible changes. And last month, the Obama Administration released its budget, which proposed a limitation on like-kind exchanges to a $1 million annual deferral cap for real estate.

But 1031 exchanges “are going gangbusters right now,” he adds, and perform a tremendous service to the economy by helping investment flow. “We're struggling to keep it unchanged.”

The three-day symposium will tackle a number of other topics that concern investment professionals, Harrison says. Experts will discuss, for example, the low prices in the energy market and what that will mean for investors. Furthermore, Kevin Shields of Griffin Capital Corp. will moderate a discussion of recent regulatory changes approved by the US Securities and Exchange Commission. And another panel will explore “what the broker-dealer model is going to look like in a few years.”

But the discussions surrounding the possible limitations on 1031 exchanges may end up being the most important. “Folks in the industry have shrugged it off,” at least so far, Harrison says, perhaps because these exchanges have become such an accepted part of life that it's difficult to realize that they are vulnerable. “Something could happen if we are asleep at the switch.”

Most people, including members of Congress, don't know how exchanges operate, he points out, meaning 1031 exchanges “can be painted as just a loop hole.” But a new study by Ernst & Young found that even though changing the exchanges would bring in more tax revenue, those gains would be more than offset by an annual loss in GDP.

“Once people see the light on this, no one thinks it's a good idea,” Harrison says. And due to its importance to the overall economy “it does affect all of us,” even those who don't handle 1031 exchanges. The effort to spread the word is “just now gearing up. We will talk about it at the conference and get people fired up.”