NEW YORK \u2013 New York City Mayor Zohran Kwame Mamdani today announced a first-of-its-kind insurance program that will reduce the cost of property and liability insurance for affordable housing and rent-stabilized housing, a key step in tackling New York City\u2019s housing and affordability crisis. An interagency working group comprised of the New York City Economic Development Corporation (NYCEDC), Housing Development Corporation (NYCHDC), and Housing Preservation and Development (HPD) will manage the selection and partnership of the insurance program, which aims to issue new insurance policies for 20,000 homes next year and 100,000 homes by 2030. The program will be self-sustaining over time and will help the City subsidize more affordable housing and support housing and property owners with rising costs by addressing a major cost driver: the price of insurance has more than tripled since 2017.<\/p>\n
As New York City faces an unprecedented housing crisis, the Mamdani administration is using every tool at its disposal to drive down the cost of housing. The skyrocketing cost of insurance has hit affordable and rent-stabilized housing particularly hard, and every $100 increase in insurance costs requires $1,200 more in City capital in new transactions \u2013 meaning the new proposal will also drive down City spending per home in its affordable housing programs. To address these rising costs, broaden the reach of the City\u2019s affordable housing subsidy, and help building operators make repairs, the City will hire independent actuarial experts to design and launch a new insurance program that will begin offering coverage in 2027.<\/p>\n
\u201cWe cannot take on the housing crisis without confronting one of the fastest-growing costs facing New Yorkers: insurance. That\u2019s why we\u2019re creating the first city-backed insurance program — to help New Yorkers stay in their homes, give building owners the support they need to make repairs, and build a city that New Yorkers can actually afford,\u201d said\u202fMayor Mamdani.<\/p>\n
\u201cThe skyrocketing cost of insurance is putting affordable, rent-stabilized housing at risk and risks setting back our efforts to build a more affordable city. This groundbreaking effort will use the City\u2019s purchasing power to lower insurance premiums, helping our own investments in affordable housing go farther and reducing operating costs for owners of rent stabilized housing. This is just one step in how we\u2019re working to bring down housing costs across the board,\u201d said Leila Bozorg, Deputy Mayor for Housing and Planning.<\/p>\n
\u201cTo make New York more affordable, we have to go after the structural costs driving up the price of housing. Insurance is one of those costs, and it has been rising far too fast for affordable and rent-stabilized housing to absorb. This new approach will help preserve homes, stretch scarce public resources, and protect the stability of neighborhoods across the city,\u201d said Julie Su, Deputy Mayor for Economic Justice.<\/p>\n
This announcement, made during an address to the housing policy group the Citizens Housing and Planning Council, begins the multi-step process to launch a City-backed insurance program:<\/p>\n
This week, HDC will issue a Request for Proposals (RFP) for an actuary or risk consultant that will provide expertise to design the program.This summer, NYCEDC will issue a Request for Expression of Interest (RFEI) to solicit proposals for how best to structure and operate this insurance program.By 2027, the City expects to lower cost of insurance policies for the first 20,000 homes.By 2030, new insurance policies are poised to be available to 100,000 homes.<\/p>\n
\u201cSoaring insurance costs are putting affordable and rent-stabilized housing at risk\u2014this is a market failure that has gone uncorrected for too long, and it falls to government to step in. When we can lower the cost of running a building, that savings flows through to tenants,\u201d said HPD Commissioner Dina Levy. \u201cThis effort is exactly the kind of bold, innovative response New Yorkers need to have access to affordable housing.\u201d<\/p>\n
“By investing in a city-backed insurance program, we will be tackling the housing crisis from a new and creative angle,\u201d said NYCEDC Interim President & CEO Jeanny Pak. \u201cAt NYCEDC, we are looking to use every tool in our toolbox to deliver affordable housing and are thrilled to partner with HPD and HDC to carry out this vision and make New York City more affordable.\u201d<\/p>\n
\u201cRising insurance premiums have placed increasing strains on the housing market nationwide,\u201d said HDC President Eric Enderlin. \u201cToday\u2019s announcement represents an important step toward delivering an innovative solution that will help ease the burden of insurance costs and protect the long-term financial stability of the city\u2019s affordable and rent-stabilized housing stock.\u201d<\/p>\n
\u201cAffordable housing can\u2019t stay affordable without reining in rising operating expenses, and no expense has risen as dramatically as the cost of insurance,\u201d said Howard Slatkin, Executive Director, Citizens Housing and Planning Council. \u201cEvery dollar in higher premiums is a dollar that can\u2019t be spent on maintaining affordable homes in sound condition for residents. Going on offense against these rising costs is essential to help put affordable housing on a sound financial footing and maximize the impact of the City\u2019s housing subsidies.\u201d<\/p>\n
\u201cWe need creative solutions to tackle the affordable housing insurance crisis,\u201d said Kim Darga, Vice President and Market Leader, Enterprise Community Partners. \u201cInsurance costs in the portfolio of affordable housing projects financed by Enterprise have more than doubled since 2017, straining operating budgets and challenging the ability of the city to continue producing the amount of housing we need. We applaud the Administration for taking immediate steps to address the crisis and look forward to working alongside our partners in government to ensure the new program is a success.\u201d<\/p>\n
\u201cOver the last few years, insurance rates have risen astronomically and now represent the one of the largest per-unit expenses for the city’s rent stabilized and affordable housing stock. I applaud Mayor Mamdani and his team for their efforts to tackle one of key factors contributing to financial instability and distress in our city\u2019s affordable housing,\u201d said Rafael E. Cestero, CEO of the Community Preservation Corporation. \u201cThe city\u2019s innovative insurance captive will drive down costs, help to preserve affordability, and decrease pressure on operating budgets – all of which will help preserve the physical and financial health of New Yorkers’ homes. I look forward to working with Deputy Mayor Bozorg and the Mamdani Administration as we continue to tackle our city\u2019s housing supply and affordability challenges in new and impactful ways.\u201d<\/p>\n
\u201cSkyrocketing insurance costs are one of the most significant and underappreciated threats to affordable housing in New York City,\u201d said Rachel Fee, Executive Director, New York Housing Conference. \u201cAs detailed in our 2024 report, rising premiums are driving operating cost increases, squeezing budgets and undermining the City’s investment in affordable homes. We commend Mayor Mamdani’s bold action to address this head-on. A city-backed insurance program has the potential to stabilize costs for thousands of affordable and rent-stabilized homes, stretch City subsidy further and keep buildings in good repair. We look forward to working with the administration to make this program a success.\u201d<\/p>\n
\u201cFor years, rising insurance premiums have strained affordable and rent-stabilized housing providers and threatened the viability of homes New Yorkers depend on,\u201d said Carlina Rivera, President and CEO, New York State Association for Affordable Housing (NYSAFAH). \u201cMayor Mamdani’s first-of-its-kind insurance program directly addresses one of our industry’s fastest-growing costs. By leveraging the City’s backing to reduce property and liability premiums, this initiative can lower expenses, unlock capital for repairs and new construction, and help preserve affordability for tens of thousands of households. NYSAFAH applauds this bold, data-driven approach and looks forward to working with the Administration to maximize its impact.\u201d<\/p>\n
\u201cANHD applauds Mayor Mamdani’s administration for advancing a new approach to address the rising cost of insurance, a major barrier to preserving and operating affordable housing. Too often, BIPOC, immigrant, and low-income communities\u2014and the nonprofit, minority- and immigrant-led housing providers who serve them\u2014face discriminatory insurance practices that drive up costs and limit access to coverage. This program represents an important step toward a more equitable system that supports the providers and communities at the heart of New York City\u2019s affordable housing ecosystem,\u201d said Barika Williams, Executive Director, Association for Neighborhood & Housing Development.<\/p>\n
\u201cEvery part of the housing market is facing rising costs: rent, insurance, and utilities are all going up. New York City has long had tools to stabilize rents for tenants, so it\u2019s exciting to see that today it is taking another step by introducing tools to help stabilize insurance costs for properties,\u201d said Paul Williams, Executive Director, Center for Public Enterprise.<\/p>\n
\u201cFor too long, the skyrocketing cost of insurance has quietly eroded the financial stability of buildings that thousands of New Yorkers call home. This is especially true in supportive and affordable housing, where margins are already razor thin and nonprofit providers have seen their premiums nearly triple in recent years. By tackling one of the fastest-growing cost drivers head on, this initiative will not only stabilize existing housing but also stretch scarce public dollars further, allowing for the creation and preservation of more supportive units. We commend the Mamdani administration for advancing an innovative solution that recognizes a simple truth: when we rein in the escalating costs that hinder affordable housing production, we strengthen housing stability for tenants,\u201d said Pascale Leone, Executive Director, Supportive Housing Network of NY.<\/p>\n
\u201cRising insurance costs are a major issue facing affordable housing in NYC, and we are glad Mayor Mamdani is stepping in with a publicly-backed solution. Lowering costs for operating housing will benefit tenants across NYC. Landlords should spend these savings on maintenance to improve living conditions for their tenants,\u201d said Sumathy Kumar, Director, NYS Tenant Bloc.<\/p>\n
\u201cWe appreciate Mayor Mamdani tackling the insurance crisis head-on. Runaway premiums have made it increasingly difficult for responsible owners to protect the buildings New Yorkers call home. We must deliver serious relief that benefits renters and their housing providers and government must take a bigger role. It’s clear that Mayor Mamdani realizes this and we are thankful he is prioritizing this issue,\u201d said Kenny Burgos, CEO, New York Apartment Association.<\/p>\n
\u201cWe appreciate the Mayor\u2019s recognition that rent regulated apartments carry significant and growing costs to operate,\u201d said Basha Gerhards, Executive Vice President of Public Policy, Real Estate Board of New York. \u201cInsurance, property taxes, and utilities are exponentially driving expense growth, placing sustained pressure on owners and operators of regulated housing. We look forward to working collaboratively with the administration on additional tools and policy interventions to ensure the long term sustainability of New York City\u2019s rent regulated housing stock.\u201d<\/p>\n
\u201cThis is a positive step in the right direction of actually reducing the cost of developing affordable housing. We need to see more of this,\u201d said Craig Livingston, Board Chair, New York Real Estate Chamber.<\/p>\n
\u201cInsurance cost growth has become a major issue for affordable and rent stabilized housing in New York City. Part of bringing down costs for tenants requires finding solutions to these rising costs. The Mamdani administration is taking a first by establishing a public option that will add competition to the market, mitigate profiteering, and support efficient risk-sharing. In order to fully address mounting insurance costs, government will need to invest much more deeply in mitigating the increasing risks associated with climate change. Nonetheless this is an exciting step for the City and a core component of addressing housing affordability for City residents,\u201d said Emily Eisner, Acting Executive Director and Chief Economist, Fiscal Policy Institute.<\/p>\n
\u201cWe applaud the Mamdani administration for taking a courageous step to maintain the affordability and safety of New York City\u2019s affordable housing and rent-stabilized apartments. We need new solutions because the market has failed to provide a workable insurance product for this housing stock,\u201d said Caroline Nagy, associate director of housing at Americans for Financial Reform Education Fund. \u201cA mission-driven, city-run property insurance program will provide better rates and more reliable coverage for landlords than private insurance companies who seek higher premiums and avoid payouts to maximize profits.\u201d<\/p>\n
###<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK \u2013 New York City Mayor Zohran Kwame Mamdani today announced a first-of-its-kind insurance program that will…\n","protected":false},"author":2,"featured_media":156627,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[9,24,55,54,56],"class_list":{"0":"post-201614","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york-city","8":"tag-new-york","9":"tag-new-york-city","10":"tag-new-york-city-headlines","11":"tag-new-york-city-news","12":"tag-ny"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/201614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=201614"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/201614\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/156627"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=201614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=201614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=201614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}