BOMA International Advocates for Long-Term Reauthorization of TRIA Act to Combat Terrorism Risk

BOMA International Urges Congress to Act on TRIA

As the 119th Congress enters its second session, BOMA International, representing the interests of commercial real estate, is urging legislators to prioritize the passage of the TRIA Program Authorization Act, known as H.R. 7128. This legislation is crucial for securing long-term reauthorization of the Terrorism Risk Insurance Act (TRIA), which provides essential insurance coverage for commercial property against terrorism-related events.

The importance of this initiative is underscored by recent events that remind us of the persistent threats posed by terrorism. In the past three months, the FBI successfully thwarted three planned attacks targeting various public venues and facilities across the United States. These incidents highlight the ongoing necessity for a robust insurance mechanism like TRIA, as the threat of terrorism continues to loom, posing potential risks to economic stability.

Currently, the TRIA program is slated to expire on December 31, 2027. Although this date may seem far off, the urgency for action cannot be overstated. Commercial insurance policies drafted for 2027 may soon include ominous notices regarding the lapse of terrorism coverage, casting uncertainty over commercial property operations. Such unpredictability could have detrimental effects on various sectors, including hospitals, shopping centers, entertainment venues, and multifamily housing.

BOMA International emphasizes that allowing TRIA to approach expiration would lead to economic turmoil similar to what was experienced during the 2014-2015 lapse. During that period, borrowers faced technical defaults on loans, slowdowns in financing, and disruptions in investment, ultimately affecting billions in commercial mortgage-backed securities (CMBS).

According to Mary Lue Peck, President and COO of BOMA International,