Terrorism Risk Insurance Extended for 7 Years

Advocacy
Published

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Awards

Oct 03, 2025

NAHB Awards Deadline Extended to Oct. 20

Interested applicants for NAHB’s prestigious award programs now have additional time to submit top projects and individuals for consideration. Don't miss your chance - apply by Monday, Oct. 20.

Sponsored Content

Oct 03, 2025

Fast Money, Fewer Headaches

Every week lost to underwriting is a week you’re not building, selling, or scaling. Delays push projects out of prime seasons, tighten cash flow, and leave crews idle. And when banks already move at their own pace, builders who aren’t prepared can get stuck at the back of the line.

View all

Latest Economic News

Economics

Oct 03, 2025

Supply-Side Cost Pressures Drove Housing as Inflation Leader in 2024

Though the rate of inflation peaked in June 2022, consumer prices continued to increase throughout 2023 and 2024 as inflation drove further price growth, according to 2024 CPI review from the Bureau of Labor Statistics.

Economics

Oct 02, 2025

Square Foot Prices Moderate in 2024

Median square foot prices for new single-family detached (SFD) homes started in 2024 grew modestly, according to NAHB’s analysis of the latest Survey of Construction (SOC) data. For custom, or contractor-built, homes, the median price was $166 per square foot of floor space, up slightly from $162 in 2023.

Economics

Oct 02, 2025

17% of NAHB Builders Built Age-Restricted Housing in 2024

Only 17% of NAHB builder members build age-restricted housing for people age 55 or older, according to 2024 Member Census. This is up two percentage points from the previous year. However, this share has remained within a narrow band (15%-17%) since the question was added to the member census in 2009.