NEW YORK, NY— A city-backed insurance program aims to lower operating costs for affordable and rent-stabilized housing, targeting coverage for 100,000 homes by 2030.
Mayor Zohran Mamdani said insurance premiums for housing have more than tripled since 2017, straining budgets for affordable developments and rent-regulated buildings.
The new program aims to reduce those costs by leveraging the city’s scale to secure lower rates.
“Every dollar in higher premiums is a dollar that can’t be spent on maintaining affordable homes,” Howard Slatkin, of the Citizens Housing and Planning Council, said.
An interagency group including the New York City Economic Development Corporation, Housing Development Corporation and Department of Housing Preservation and Development will oversee the effort.
The City plans to hire actuarial experts to design the program, with coverage expected to begin in 2027 for about 20,000 homes.
Ann Korchak, board president of the Small Property Owners of New York, questioned whether the program would benefit smaller landlords and called for broader policy changes.
“This program raises many questions and warrants a more comprehensive explanation from City Hall,” Korchak said. “The Mayor could have a more effective and immediate impact on the financial stability and quality of affordable housing by reducing property taxes and eliminating costly city mandates that burden small private property owners.”
The rollout will begin with a request for proposals for a risk consultant, followed by a broader solicitation this summer to structure and operate the program. Officials said the program is expected to become self-sustaining over time.
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