New York State Homes and Community Renewal Takes Action to Addres...

New York State Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas today announced that Urban Homesteading Assistance Board and Housing Partnership Network were selected to administer its Risk Reduction and Insurance Affordability pilot program, the first program in the nation to help non-profit housing providers reduce costs by joining insurance captives. The two groups will work directly with non-profit affordable housing providers across the state to assess the risk profile of their properties and assist them in joining insurance captives, a form of self-insurance that generally has lower premiums and more transparency into premium levels.

Insurance costs have risen in recent years and New York has been working to address the increase. As part of the FY 2025 Enacted Budget, Governor Kathy Hochul and the State Legislature included a law that prohibits insurers from discriminating against affordable housing. The $5 million Risk Reduction and Insurance Affordability pilot program was created as part of the FY 2026 Enacted Budget in order to assist non-profit affordable housing owners in joining insurance captives, giving them new tools to maintain affordability and keep costs down for tenants.

"Insurance premiums for affordable housing developments have skyrocketed since the pandemic, undermining the financial health of buildings and often forcing landlords to defer maintenance," said Commissioner Visnauskas. "This innovative program has the potential to not only lower insurance costs, but also improve building conditions for tenants and maintain housing affordability. We are excited to work with Urban Homesteading Assistance Board and Housing Partnership Network, two organizations with long histories in affordable housing, to get the program off the ground. Thank you to Governor Hochul for her steadfast support and prioritizing affordability for all New Yorkers."

This program complements HCR's mission to improve housing affordability, including programs such as the Low-Income Housing Tax Credit program, Pro-Housing Communities program, Housing Acceleration Fund, and incentives from the State of New York Mortgage Agency.

Margy Brown, Urban Homesteading Assistance Board Executive Director, said, "Rising insurance costs are one of the most urgent threats facing affordable housing today. UHAB is proud to partner with HCR on the Risk Reduction and Insurance Affordability Pilot, which will help owners stabilize costs, reduce risk, and protect long-term affordability for residents across New York State."

Robin Hughes, President & CEO, Housing Partnership Network, said, "HPN brings more than 20 years of success operating the only property and liability captive built for nonprofit owners. We know how to design solutions that reduce risk, improve resilience, and save nonprofits money they can reinvest in their mission. We're grateful to New York State for the opportunity to advance this work through the Risk Reduction Insurance Affordability pilot."

Governor Hochul's Housing Agenda

Governor Hochul is dedicated to addressing New York's housing crisis and making the State more affordable and more livable for all New Yorkers. Since FY23, the Governor has worked to increase housing supply through nearly $4 billion in targeted investments, a comprehensive Housing Plan, and implemented new protections for renters and homeowners. Under Governor Hochul's leadership, HCR has created new programs that jumpstart development of affordable and mixed-income homes - for both renters and homebuyers. These include the Pro-Housing Community Program, which allows certified localities exclusive access to up to $750 million in discretionary State funding. Currently, more than 400 communities have received Pro-Housing certification.

The FY27 Executive Budget completes the Governor's current five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations plus the electrification of an additional 50,000 homes. More than 77,000 affordable homes have been created or preserved to date. The Executive Budget also invests $250 million to accelerate affordable housing construction to speed up the building of thousands more affordable homes.