A second hearing was held by the House Financial Services Committee recently to discuss the future of the Terrorism Risk Insurance Program (TRIA), which is set to expire in December 2014. While TRIA was originally intended to be a temporary program, NMHC/NAA and others argue that the federal backstop continues to be necessary because terrorism risk remains every bit as uninsurable today as it was 10 years ago. This program is unquestionably critical to multifamily owners and developers because it is a line of insurance coverage required by lenders.
Bipartisan legislation has been introduced in the House, but roadblocks to passage are inevitable. Critics of the reauthorization claim that the existence of the program prevents private market participation and demands specific program reforms to minimize taxpayer exposure. The Senate has not yet acted, but Committee leadership has expressed a strong desire to extend the program.
- Senate Takes an Early Look at Terrorism Risk Insurance Reauthorization
- Coalition Letter to Senate Banking Committee Regarding Terrorism Risk Insurance - June 2019
- Multifamily Industry Applauds Terrorism Insurance Passage
- NMHC/NAA Applaud Passage of Terrorism Insurance by Congress
- Congress Goes Home Without Renewing Terrorism Insurance