APARTMENT ADVOCATE
NATIONAL APARTMENT ASSOCIATION
Apartment Industry Applauds
Terrorism Insurance Passage
W
ith the opening of the 114th Congress came much welcome relief to
apartment owners and managers
who rely on terrorism insurance
coverage for their properties. The Senate and House
overwhelmingly approved the Terrorism Risk Insurance Program Reauthorization Act of 2015 (H.R.
26), which extends the program for six years.
Failure to pass legislation during the final days
of the 113th Congress caused the program to expire
at the end of the year. This forced policyholders to
reevaluate their insurance programs and identify
alternative coverage options if necessary.
However, the reauthorization did not simply
extend the program, it also made some modest
changes aimed at increasing taxpayer protections
and private market participation. Specifically, it
38 | TRENDS • FEBRUARY 2015
incrementally raises the program trigger to $200
million from $100 million and reduces the federal loss share from 85 percent to 80 percent. It
also increases the level of federal recoupment by
$10 billion.
In addition, studies to assess future private
market capacity and various program funding options are to be presented to Congress. The compromise package overall represents a win for the
policyholder community and ensures continued
stability in the real estate market.
NAA/NMHC, along with our partners in the
Coalition to Insure Against Terrorism (CIAT),
worked tirelessly to advocate for a TRIA reauthorization since early 2013. In addition, our member
company representatives contributed to these efforts on the grassroots level with letters, calls and
office visits to key lawmakers.
WHAT TO WATCH IN THE NEW
CONGRESS
Lawmakers are getting down to business with
a number of deadlines this year requiring action
to avoid disaster. Some of the issues requiring
Congressional action directly impact the apartment
industry; others will serve as a broader way for the
industry to measure the effectiveness of the new
Congress.
Among the key issues requiring action is increasing the debt limit, which expires March 15.
Although Treasury is able to manage the government’s cash flow for a short period after that date
using “extraordinary measures,” even a perceived
threat to American debt obligations could result
in a disastrous credit downgrade.
www.aamdhq.org