Terrorism Risk Insurance Extended for 7 Years
In a win for multifamily developers, Congress approved an NAHB-supported provision that reauthorizes the Terrorism Risk Insurance Act (TRIA) for seven years through Dec. 31, 2027, as part of fiscal 2020 appropriations legislation that was approved at the end of the year.
TRIA reauthorization offers stability for NAHB’s multifamily and commercial real estate members by providing affordable and reliable terrorism risk insurance.
The legislation was initially enacted in 2002 to provide a federal backstop for insurance companies in the event of a major terrorist attack after many insurers started excluding terrorism events from their policies following the Sept. 11, 2001 terror attacks. The measure was extended for two years in 2005 and for another seven years in 2007. In 2015, TRIA was extended through Dec. 31, 2020. The latest action by Congress ensures the program will remain in place through the end of 2027.
Also of interest to multifamily developers, the fiscal 2020 spending bill extended the EB-5 Immigrant Investor program through Sept. 30, 2020.
The EB-5 program can help NAHB members obtain acquisition, development and construction financing by working with foreign investors who are seeking lawful U.S. residency.
Under the EB-5 visa program, foreign-born investors willing to invest $900,000 to $1.8 million in a U.S. enterprise that creates at least 10 full-time job within two years are eligible to receive permanent residency status for themselves, their spouse and all children under the age of 21.
Unfortunately, new regulations from the U.S. Citizenship and Immigration Services (USCIS) significantly raising the program’s longstanding thresholds of investment and widening the gap between rural and urban amounts went into effect in November 2019. Immigrants seeking to utilize the EB-5 program now must invest a minimum of $900,000 (up from $500,000) in areas designed by the USCIS as high unemployment or rural areas. They will need to invest at least $1.8 million (up from $1 million) for economic projects in all other areas.
NAHB submitted comments expressing opposition to the regulations and urging more sensible amendments to the investment thresholds, among other reforms to the program. NAHB is hopeful for a positive resolution as congressional leaders continue working on a legislative agreement.
Latest from NAHBNow
Jun 18, 2025
Podcast: Mid-Year Update on Economic Indicators and Advocacy PrioritiesOn the latest episode of NAHB’s podcast, Housing Developments, COO Paul Lopez welcomes NAHB Chief Economist Dr. Robert Dietz and Chief Advocacy Officer Ken Wingert for a mid-year check in on key economic indicators and NAHB policy priorities driving home building for the rest of 2025.
Jun 18, 2025
Sharp Drop in Multifamily Production Brings Overall Housing Starts DownOverall housing starts decreased 9.8% in May to a seasonally adjusted annual rate of 1.26 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Latest Economic News
Jun 18, 2025
Sharp Drop in Multifamily Production Brings Overall Housing Starts DownA sharp decline in multifamily production pushed overall housing starts down in May, while single-family output was essentially flat due to economic and tariff uncertainty along with elevated interest rates.
Jun 17, 2025
Builder Sentiment at Third Lowest Reading Since 2012In a further sign of declining builder sentiment, the use of price incentives increased sharply in June as the housing market continues to soften.
Jun 16, 2025
Permit Activity Weakens in April 2025Housing permits continued a downhill trend for the fourth month in a row, pointing to a broader residential construction slowdown for 2025. Over the first four months of 2025, the total number of single-family permits issued year-to-date (YTD) nationwide reached 320,259.