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New York City Unveils Plan for City‑Backed Insurance to Cut Costs for Regulated Housing

Premium spikes have strained affordable housing budgets, prompting a city test of a publicly backed, privately operated option.

Overview

  • The Mamdani administration unveiled Thursday a city‑backed, privately run property and liability insurance option for owners of rent‑stabilized and subsidized buildings.
  • Officials say the program will not serve as an insurer of last resort, and landlords must apply under eligibility rules that have yet to be set.
  • The Economic Development Corporation, Housing Development Corporation, and Housing Preservation and Development will hire actuaries and seek private operators, with the design subject to City Council approval and budget talks.
  • Targets call for coverage of 20,000 homes by 2027 and a scale‑up to 100,000 by 2030.
  • City leaders project 20% to 30% premium cuts for participating landlords and $500 million to $700 million in city capital savings over five years, citing insurance costs that have roughly tripled since 2018.