Res. No. 387
Resolution calling on the New York State Legislature to pass, and the Governor to sign, A.07828A/S.07939, A.9015 and A.9016A to mitigate the rising cost of property insurance for affordable housing
By Council Members Brewer and Louis
Whereas, New York City has a housing affordability crisis, with 23 percent of households spending 30-to-50 percent of their income on rent and 30 percent of households spending 50 percent or more of their income on rent, according to the NYU Furman Center; and
Whereas, Rapid increases in insurance costs are adding pressure to landlords to increase rents and putting the financial viability of affordable multifamily rental housing at risk; and
Whereas, The New York State Department of Financial Services (DFS) found that the average annual insurance premium for affordable apartments increased by 28 percent annually between 2019 and 2021, with some annual increases as high as 76 percent in one year; and
Whereas, According to the New York State Housing Conference, property owners were paying an average premium of $1,770 per affordable housing unit in 2023-2024, representing a 103 percent increase from the 2019-2020 average premium of $869; and
Whereas, The Community Preservation Corporation reported that insurance costs for rent stabilized units increased by 52 percent from 2020 to 2023; and
Whereas, At the same time insurance rates for affordable housing are increasing substantially, coverage is decreasing with both higher deductibles and lower coverage amounts, according to the New York Housing Conference; and
Whereas, Although in 2024 New York prohibited insurers from denying coverage based on whether a building provides affordable housing, DFS does not require insurers to specifically report on property insurance policies, which makes it difficult to assess compliance; and
Whereas, A.7828A, sponsored by Assembly Member Emérita Torres and pending in the New York State Assembly, and companion bill S.7939, sponsored by Senator Jamaal Bailey and pending in the New York State Senate, would create an affordable housing insurance relief fund program to provide financial assistance to affordable housing developers for commercial insurance expenses and help qualifying projects who have experienced rapid escalation in insurance pricing with an emergency source of funding; and
Whereas, A.9015, sponsored by Assembly Member Emérita Torres and pending in the New York State Assembly, would establish the Insurance and Housing Task Force to study and make recommendations to improve the availability of affordable housing and affordable housing insurance, cochaired by DFS and DHCR and including insurers, reinsurers, nonprofit and municipal housing stakeholders, consumer advocates and trade organizations; and
Whereas, A.9016, sponsored by Assembly Member Emérita Torres and pending in the New York State Assembly, would require DFS and the Department of Homes and Community Renewal (DHCR) to release a yearly report on property insurance premiums, nonrenewals and other denials, excess line placements, exclusions, deductibles and claims for multifamily affordable housing, including statewide and regional data; and
Whereas, A.07828A/S.07939, A.9015 and A.9016A would represent critical steps toward improving insurance market transparency, stabilizing costs, and safeguarding the financial viability of New York’s affordable housing stock; 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.07828A/S.07939, A.9015 and A.9016A to mitigate the rising cost of property insurance for affordable housing.
NM
LS 22044
2/20/26