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's 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.
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 - 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's 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.
"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.
"The 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's 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're working to bring down housing costs across the board," said Leila Bozorg, Deputy Mayor for Housing and Planning.
"To 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," said Julie Su, Deputy Mayor for Economic Justice.
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:
- 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.
"Soaring insurance costs are putting affordable and rent-stabilized housing at risk-this 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," said HPD Commissioner Dina Levy. "This effort is exactly the kind of bold, innovative response New Yorkers need to have access to affordable housing."
"By investing in a city-backed insurance program, we will be tackling the housing crisis from a new and creative angle," said NYCEDC Interim President & CEO Jeanny Pak. "At 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."
"Rising insurance premiums have placed increasing strains on the housing market nationwide," said HDC President Eric Enderlin. "Today's 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's affordable and rent-stabilized housing stock."
"Affordable housing can't stay affordable without reining in rising operating expenses, and no expense has risen as dramatically as the cost of insurance," said Howard Slatkin, Executive Director, Citizens Housing and Planning Council. "Every dollar in higher premiums is a dollar that can't 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's housing subsidies."
"We need creative solutions to tackle the affordable housing insurance crisis," said Kim Darga, Vice President and Market Leader, Enterprise Community Partners. "Insurance 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."
"Over 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's affordable housing," said Rafael E. Cestero, CEO of the Community Preservation Corporation. "The city's 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's housing supply and affordability challenges in new and impactful ways."
"Skyrocketing insurance costs are one of the most significant and underappreciated threats to affordable housing in New York City," said Rachel Fee, Executive Director, New York Housing Conference. "As 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."
"For years, rising insurance premiums have strained affordable and rent-stabilized housing providers and threatened the viability of homes New Yorkers depend on," said Carlina Rivera, President and CEO, New York State Association for Affordable Housing (NYSAFAH). "Mayor 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."
"ANHD 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-and the nonprofit, minority- and immigrant-led housing providers who serve them-face 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's affordable housing ecosystem," said Barika Williams, Executive Director, Association for Neighborhood & Housing Development.
"Every 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's exciting to see that today it is taking another step by introducing tools to help stabilize insurance costs for properties," said Paul Williams, Executive Director, Center for Public Enterprise.
"For 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," said Pascale Leone, Executive Director, Supportive Housing Network of NY.
"Rising 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," said Sumathy Kumar, Director, NYS Tenant Bloc.
"We 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," said Kenny Burgos, CEO, New York Apartment Association.
"We appreciate the Mayor's recognition that rent regulated apartments carry significant and growing costs to operate," said Basha Gerhards, Executive Vice President of Public Policy, Real Estate Board of New York. "Insurance, 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's rent regulated housing stock."
"This is a positive step in the right direction of actually reducing the cost of developing affordable housing. We need to see more of this," said Craig Livingston, Board Chair, New York Real Estate Chamber.
"Insurance 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," said Emily Eisner, Acting Executive Director and Chief Economist, Fiscal Policy Institute.
"We applaud the Mamdani administration for taking a courageous step to maintain the affordability and safety of New York City's 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," said Caroline Nagy, associate director of housing at Americans for Financial Reform Education Fund. "A 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."
