Governor Hochul Announces $2 Million Loan to Combat Rising Insurance Costs for Affordable Housing

Empire State Development Closes on $2 Million Loan to Milford Street Captive Insurance to Support Affordable Housing Providers With Escalating Insurance Premiums

Governor Kathy Hochul today announced a $2 million loan to Milford Street, an insurance collective created, owned and operated by members of New York’s affordable housing industry to combat rising liability insurance premiums. A captive is a form of self-insurance that can lower premiums, and Empire State Development’s (ESD) investment will help ensure the sustainability of this innovative approach to tackling New York’s affordable housing insurance costs.

“New York is the best state to raise a family, and through my Let Them Build initiative, we’re building more homes faster so that new and current families can have long-lasting opportunities here — but we can’t stop there,” Governor Hochul said. “This investment in Milford Street will continue to advance our housing agenda, leading to more affordable units built for tenants. We need to build in New York, and we’re going to support the partnerships that will tackle these insurance costs.”

New York City affordable housing liability insurance premiums increased at an annual rate of 21 percent between 2019 and 2023, per a March 2024 report by the New York Housing Conference. These rising costs 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.

Governor Hochul is committed to addressing high insurance costs, and the investment in Milford Street Captive Insurance complements other efforts to tackle increasing housing insurance premiums. In February, New York State Homes and Community Renewal (HCR) announced the administrators for its $5 million Risk Reduction and Insurance Affordability pilot program, the first program in the nation to help non-profit housing providers reduce costs by using insurance captives. The program was created as part of the Governor’s FY 2026 Enacted Budget in order to assist non-profit affordable housing providers, giving them new tools to maintain affordability and keep costs down for tenants. Urban Homesteading Assistance Board and Housing Partnership Network will work directly with non-profit affordable housing providers across the state to assess the risk profile of their properties and assist them in using insurance captives.

EDITOR's NOTE:

Isn't this an election year for Kathy Hochul?