Real Estate Roundtable Welcomes Bipartisan Senate Action to Extend Terrorism Risk Insurance Act

Legislation is Vital to Commercial Real Estate Financing for Jobs, Construction, Economic Activity

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Jul 17, 2014, 01:57 ET

WASHINGTON, July 17, 2014 /PRNewswire-USNewswire/ -- Roundtable President and CEO Jeffrey D. DeBoer today welcomed the U.S. Senate's approval of legislation to reauthorize the expiring Terrorism Risk Insurance Act (TRIA) for seven years:

"We commend the U.S. Senate for its overwhelming vote of 93-4 today in favor of the 'Terrorism Risk Insurance Program Reauthorization Act of 2014' (S. 2244).

The Real Estate Roundtable President and CEO Jeffrey D. DeBoer (PRNewsFoto/Real Estate Roundtable) (PRNewsFoto/The Real Estate Roundtable)

"Without Congressional action, TRIA will expire at year-end, causing a cascade of negative effects for businesses and institutions of all kinds that need terrorism insurance to protect against potentially catastrophic losses.

"This includes the commercial real estate sector, where owners will either go into technical default on existing loans (if they lack terrorism coverage), or be unable to obtain financing for new projects, as lenders require terrorism insurance on the loan collateral. This will surely lead to significant delays in all types of real estate transactions — such as purchases, sales, refinancing and construction — as well as significant job losses across the country.

"Time is of the essence in enacting a long-term extension of this critical program — which is key to protecting U.S. economic security. We look forward to working with the U.S. House to promptly move this to the President's desk."

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SOURCE Real Estate Roundtable