How One Act of Congress Affects CRE
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This week, Obama signed into law the six-year renewal of the federal terrorism risk insurance program--a big win for the commercial real estate industry. HFF's Jordan Angel (above) broke down for Bisnow just how important the law is. Not renewing The Terrorism Risk Insurance Act (TRIA) could have had huge repercussions on new and existing commercial real estate loans, he explains. Lenders often require terrorism insurance and with the lack of a federal backstop many insurers would have withdrawn coverage creating a major disruption to financing and insurance markets particularly in large cities like S.F.
NAIOP says the program ensures the development industry can continue to provide good jobs and economic growth for America, solidifying the still recovering construction loan market. Last year, the industry contributed $376B to GDP, supported 2.8M jobs and produced $120B in personal earnings. NAIOP was a big backer of the legislation.