New York City has taken the next steps toward realizing its vision of a city-backed insurance program for affordable housing providers.
The city has selected Pinnacle Actuarial Resources to provide actuarial analysis and technical support.
Also, the city has issued a Request for Expression of Interest (RFEI) to the private sector seeking proposals to design, structure and operate an insurance program capable of reducing premiums by at least 20% for a meaningful share of the city’s affordable and rent-stabilized housing stock.
Mayor Zohran Kwame Mamdani announced his intention to create the insurance program in April as part of a broad affordable housing agenda. He has promised the city will invest $100 million in the program which aims to insure 20,000 homes next year and 100,000 homes by 2030.
According to the city, the cost of insurance has hit affordable and rent-stabilized housing particularly hard. The city believes the new proposal will also drive down city spending per home in its affordable housing programs because every $100 increase in insurance costs requires $1,200 more in city capital in new transactions.
NYC Mayor Eyes Insurance Program for Affordable Housing
New York City affordable housing liability insurance premiums increased at an annual rate of 21% between 2019 and 2023, according to a March 2024 report by the New York Housing Conference (NYHC). The NYHC report said rising costs discourage the development of new affordable housing, place pressure on affordable rents and carrying charges, and force current operators to defer necessary maintenance, adversely impacting housing quality
“We cannot take on the housing crisis without confronting one of the fastest-growing costs facing New Yorkers: insurance. That’s why we’re 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,” said Mayor Mamdani in April.
Mamdani said rising insurance costs are draining resources from the affordable housing sector and lowering them will help ensure that more money goes to repairs, maintenance and improvements for tenants. “When private markets fail to deliver, government has a responsibility to step in,” he sad.
Illinois-base Pinnacle is a well-known full-service firm providing actuarial, enterprise risk management and general management services in the property/casualty insurance field.
Through the RFEI, the city hopes to attract submissions from a range of industry participants, including insurance brokers, captive managers, insurance carriers and reinsurers, third-party administrators, actuarial and risk advisory firms and other entities capable of operating at this scale. Joint ventures and proposals that leverage existing vehicles or facilities are also encouraged.
The RFEI was developed in partnership with the Department of Housing Preservation and Development (HPD) and the New York City Housing Development Corporation (HDC). Responses will undergo a phased evaluation process coordinated by the New York City Economic Development Corporation (NYCEDC), HPD and HDC.
Submissions are due August 6, 2026, at 4 p.m. ET. NYCEDC will host an informational session, available both in person and virtually, on July 8, 2026, at 2 p.m. ET. Additional information about the RFEI, including proposal requirements and RSVP instructions for the informational session are available through NYCEDC.
New York Hopes Captives Can Lower Affordable Housing Insurance Costs
New York State is also looking at insurance as part of its effort to encourage affordable housing. The state is providing financial assistance to a captive insurer and taking other steps to advance this form of self-insurance as part of an effort to lower insurance costs for operators of affordable housing.
The state has made a $2 million loan to Milford Street Association, an organization with an insurance captive that is owned and operated by members of the state’s affordable housing industry.
Milford Street plans to use the $2 million to cover a portion of the initial capital contribution cost for membership, thereby hoping to increase membership in the captive. Increasing membership should enable the captive to be more affordable to its members.
The state has also advanced $5 million for a pilot program to help non-profit housing providers reduce costs by using insurance captives. The Urban Homesteading Assistance Board and Housing Partnership Network have been tasked with working with non-profit affordable housing providers across the state to assess the risk profile of their properties and assist them in using insurance captives.
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