Res. No. 364
Resolution calling on the New York State Legislature to pass, and the Governor to sign, A.7828-A/S.7939, in relation to creating an affordable housing insurance relief fund program; and providing for the repeal of such provisions upon expiration thereof.
By Council Member Riley
Whereas, According to the 2023 Housing and Vacancy Survey, New York City (“NYC” or the “City”) is experiencing a severe housing shortage, with a citywide vacancy rate of 1.41 percent for rental housing units, and a vacancy rate of less than 1 percent for rental units that cost less than $2,400 a month; and
Whereas, This housing shortage is due in part to a housing supply that has not kept pace with the increase in employment opportunities; and
Whereas, Rising construction and insurance costs further threaten New York City’s housing supply; and
Whereas, An international survey of construction costs across 99 cities conducted in 2025 by a global professional service company observed that NYC had the highest construction costs; and
Whereas, According to a report published in 2025 by two national not-for-profit organizations, Enterprise and National Equity Fund, operating costs for NYC’s affordable housing stock have increased by almost 40 percent between the years 2017 and 2024; and
Whereas, Operating costs include building maintenance, insurance fees, legal fees, taxes, and other ongoing costs of managing the development; and
Whereas, According to a New York State-based insurance agency, owners of buildings with 5 or more units are required by financial lenders to pay for specialized property insurance called commercial property insurance, also known as commercial habitational insurance; and
Whereas, Rising property and liability insurance costs contribute significantly to increasing operating costs for affordable housing developers, with the average insurance cost per unit rising by over 100 percent between 2017 and 2024 due to climate change and property replacement costs; and
Whereas, According to the NYC Rent Guidelines Board’s 2025 Price Index of Operating Costs Report, insurance cost for affordable developments have increased by 18.7 percent since 2024 and is the fastest growing cost component observed in the report; and
Whereas, Developers are less likely to build properties with rent revenue that fails to cover the costs of construction financing, operations, and maintenance; and
Whereas, Mixed developments that contain market rate and affordable units would give developers more income and wider latitude to adjust to increased operational expenses; and
Whereas, One hundred percent affordable developments may be at risk of falling into disrepair because they have limited financial flexibility to adjust to rapid cost increases; and
Whereas, A.7828-A, sponsored by Assembly Member Emerita Torres and pending in the New York State Assembly, and S.7939, sponsored by State Senator Jamaal Bailey and pending in the New York State Senate, would create the affordable housing insurance relief fund program (the “Program”), housed within and administered by the New York State Housing Trust Fund Corporation (the “Corporation”); and
Whereas, The Program would provide monetary aid to certain eligible applicants, a maximum of $3,000 per housing unit, and the total award amount would be capped at $2 million per affordable housing development; and
Whereas, This bill would give the Corporation discretion to design the program and the application submission and selection process; and
Whereas, This bill would authorize the Corporation to prioritize applicants who demonstrate a material increase in insurance cost or other critical needs; and
Whereas, This bill would restrict project eligibility to include newly proposed 100 percent affordable housing or supportive multifamily rental property, subject to a regulatory agreement with a federal, state, or local housing agency; and
Whereas, For-profit and not-for-profit affordable housing developers with a regulatory agreement with a federal, state, or local housing agency, which applies to 100 percent of the property's housing units, would be eligible; and
Whereas, The State can increase its affordable housing supply by passing legislation that provides financial assistance for property insurance to proposed housing developments in which 100 percent of units would be affordable; now, therefore, be it
Resolved, That the Council of the City of New York calls on the New York State Legislature to pass, and the Governor to sign, A.7828-A/S.7939, in relation to creating an affordable housing insurance relief fund program; and providing for the repeal of such provisions upon expiration thereof.
DJS
LS #20415
11/10/2025