New York: Mayor Zohran Kwame Mamdani and New York City Economic Development Corporation (NYCEDC) Interim President & CEO Jeanny Pak announced the next step toward launching a first-of-its-kind City-backed housing insurance program, with NYCEDC releasing a Request for Expressions of Interest (RFEI) to help design the initiative.
Developed in partnership with the Department of Housing Preservation and Development (HPD) and the New York City Housing Development Corporation (HDC), the RFEI seeks 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.
As insurance costs continue to soar, affordable housing providers are being forced to divert resources away from maintenance, repairs and tenant services. Every $100 increase in insurance costs requires $1,200 in additional City capital for new affordable housing transactions. By lowering those costs, the City can stretch public dollars further, finance more affordable homes and improve housing quality for tenants.
The City-backed insurance program is a key commitment in Block by Block, the Mamdani administration’s comprehensive housing plan. The administration is investing $100 million over the next three years to launch the program as part of a broader effort to preserve affordability, improve housing conditions and reduce the cost of operating housing across New York City.
“Skyrocketing insurance costs are draining resources from the affordable housing New Yorkers depend on,” said Mayor Mamdani. “When private markets fail to deliver, government has a responsibility to step in. This City-backed insurance program will lower costs, protect affordable and rent-stabilized homes and ensure that more money goes to repairs, maintenance and improvements that tenants can actually see. Today’s RFEI is a critical step toward building a program that makes our housing system more affordable and stable for the people who call it home.”
“Affordable and rent-stabilized housing is a lifeline for many New Yorkers – but rapidly increasing insurance costs are threatening this vital part of our housing stock. This City-backed insurance program will help lower the cost of operating housing, ensuring that our investment in affordable housing goes further to serve New Yorkers,” said Leila Bozorg, Deputy Mayor for Housing and Planning.
“Through this RFEI, we’re calling on a broad range of industry partners to help shape and deliver this first-of-its-kind program—one that can reduce housing costs at scale for New Yorkers, particularly those in affordable and rent-stabilized homes,” said NYCEDC Interim President & CEO Jeanny Pak.
