One of several important changes to the original REIT legislation. It allows a REIT to own up to 10 percent of a taxable REIT subsidiary that is able to offer services to REIT residents and others, a change that allows a REIT to save on expenses and operate more efficiently. The act also altered the minimum distribution requirement from 95 percent of a REIT's taxable income to 90 percent, a number consistent with the REIT rules on the books from 1960 to 1980.