New York City has taken the next steps toward realizing its vision of a city-backed insurance program for affordable housing providers.
The city has selected Pinnacle Actuarial Resources to provide actuarial analysis and technical support.
Also, the city has issued a Request for Expression of Interest (RFEI) to the private sector seeking proposals to design, structure and operate an insurance program capab
le of reducing premiums by at least 20% for a meaningful share of the city’s affordable and rent-stabilized housing stock.
Mayor Zohran Kwame Mamdani announced his intention to create the insurance program in April as part of a broad affordable housing agenda. He has promised th
e city will invest $100 million in the program with a goal of insuring 20,000 homes next year and 100,000 homes by 2030.
In addition to lowering insurance costs for providers of affordable and rent-stabilized housing, the cit
y believes the proposed entity will also drive down its spending in its affordable housing programs because every $100 increase in insurance costs requires $1,200 more in city capital in new transactions.
New York City affordable housing liability insurance premiums increased at an annual rat
e of 21% between 2019 and 2023, according to a March 2024 report by the New York Housing Conference (NYHC). The NYHC report said rising c
osts discourage the development of new affordable housing, place pressure on affordable rents and carrying charges, and force current operators to defer necessary maintenance, adversely impacting housing quality
“We cannot take on the housing crisis without confronting one of the fastest-growing costs facing New Yorkers: insurance. That’s why we’re creating the first city-backed in
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surance program — to help New Yorkers stay in their homes, give building owners the suppo
rt they need to make repairs, and build a city that New Yorkers can actually afford,” said Mayor Mamdani in April.
Mamdani said rising insurance costs are draining resources from the affordable housing sector and lowering them will help ensure that more money goes to repairs,
maintenance and improvements for tenants. “When private markets fail to deliver, government has a responsibility to step in,” he sad.
Illinois-based Pinnacle is a well-known full-service firm providing actuarial, enterprise risk management and general management services in the property/casualty insurance field.
Through the RFEI, the city hopes to attract submissions from a range of industry participants, inclu
ding insurance brokers, captive managers, insurance carriers and reinsurers, third-party administrators, actuarial and risk advisory firms and other entities capable of opera
ting at this scale. The city also welcomes joint ventures and proposals that leverage existing vehicles or facilities.
The RFEI was developed in partnership with the Department of Housing Preservation and Development (HPD) and the New York City Housing Development Corp
oration (HDC). Responses will undergo a phased evaluation process coordinated by the New York City Economic Development Corporation (NYCEDC), HPD and HDC.
Submissions are due August 6, 2026, at 4 p.m. ET. NYCEDC will host an informational session, available both in person and virtually, on July 8, 2026, at 2 p.m. ET. Additional information about the RFEI, including proposal requirements and RSVP instructions for the informational session are available through NYCEDC.
