The recent bipartisan House vote of 416-5 to extend the Terrorism Risk Insurance Act (TRIA) for six years is a major step forward in bolstering economic security, maintaining positive momentum in commercial real estate markets and reducing policy uncertainty with a multi-year reauthorization, according to The Real Estate Roundtable.
“The Roundtable praises the bipartisan efforts of House leaders in reaching consensus on legislation that is essential for the economic well-being of the United States and its commercial real estate markets,” said Roundtable Chairman Robert S. Taubman (Chairman, President and CEO – Taubman Centers, Inc.). “The House Republican and Democratic leadership deserve recognition for their dedication and determination to pass a six-year extension of TRIA, which is crucial to maintaining long-term liquidity in commercial real estate capital markets,” added Taubman.
“It is reassuring to see that the first act of business in the new Congress is quick and overwhelming consensus on TRIA, a major policy issue affecting the nation’s economic security. With the encouraging passage of this bipartisan TRIA renewal by the House, it is now time to face TRIA reauthorization in the Senate, see it passed, then signed into law by President Obama this month,” said Roundtable President and CEO Jeffrey DeBoer.
Under the Terrorism Risk Insurance Program Reauthorization Act of 2015 (H.R. 26), TRIA would be extended until year-end 2020, and in the event of a catastrophic terrorist attack, gradually increase the loss threshold that triggers federal assistance, from $100 million to $200 million.
Despite the House passing a TRIA reauthorization bill on December 10, 2014 by a vote of 417-17, reauthorization efforts in the previous Congress suffered an 11th hour setback in the Senate, resulting in the law’s scheduled expiration at year-end. With continued strong bipartisan and stakeholder support, the debate over TRIA’s renewal now moves to the Senate.
“TRIA will allow businesses of all types across the country to once again move forward in the face of ongoing terrorist threats,” said Roundtable President and CEO Jeffrey DeBoer.
“TRIA will not stop terrorists. But it will help stop their goals to disrupt our economy. Without TRIA, a substantial number of financings and refinancing simply will not occur, causing unnecessary job losses. With TRIA, one of the biggest potential impediments to economic security would be removed. Jobs will be preserved and growth encouraged. In addition to commercial real estate projects, hospitals, universities, sports facilities and stadiums, amusement parks and businesses of all sizes are affected. TRIA will prevent commercial property owners from technical default on existing loans (if they lack terrorism coverage), and allow them to obtain financing for new projects, as lenders require terrorism insurance on the loan collateral,” adds DeBoer.
Source: Real Estate Roundtable