Apartment Trends Magazine September 2014 | Page 37

INDUSTRY URGES ACTION
ON TRIA WHEN CONGRESS
RETURNS IN SEPTEMBER
Congress left town for the August recess without reauthorizing the Terrorism Risk Insurance
Act (TRIA) due to a division among House Republicans over their chamber’s bill (H.R. 4871)
that is stalling further action. House Financial
Services Chairman Jeb Hensarling (R-Texas) has
stated that the process for passage will not be
settled for several months.
TRIA is set to expire at the end of this year.
Without an extension, insurance carriers have said
they are unwilling to provide coverage, which is
problematic for apartment owners because most
lenders require terrorism insurance. If the program
is allowed to expire, multifamily housing owners
will most likely face significant cost increases and
economic development will slow triggering severe
economic instability.

The House bill scales down the federal program
by distinguishing between conventional attacks
and those caused by nuclear, chemical, biological
and radiological (NCBR) means and sets different
pro