Mamdani launches first housing insurance program in New York: what you need to know

Housing insurance costs have become one of the expenses putting the most pressure on owners of rent-regulated buildings in New York.

To try to slow that increase, Mayor Zohran Kwame Mamdani announced the launch of a city-backed insurance program, an initiative that seeks to reduce premiums and free up resources for the maintenance of thousands of affordable housing units.

Why it matters: The municipal administration will allocate $100 million over the next three years with the goal of lowering insurance costs and expanding investment in affordable housing.

Mamdani launches housing insurance program to reduce costs

According to the EFE news agency, the plan promoted by Mamdani aims to become the first program of its kind backed by the city of New York.

The initiative will begin with a process to select the companies and organizations that will manage the program.

The administration argues that the constant increase in insurance costs has forced many affordable housing providers to use resources that were previously dedicated to maintenance, repairs, and services for tenants.

According to the city, every $100 increase in insurance costs requires an additional $1,200 in public capital to finance new affordable housing projects.

Mamdani housing insurance program: What you need to know – PHOTO: Shutterstock

The city wants to expand investment in affordable housing

The program will have a budget of $100 million over the next three years.

With those resources, the administration expects to insure around 20,000 homes during the next year and expand coverage to 100,000 homes by 2030.

Mamdani stated that when the private market fails to respond to the needs of residents, the government must step in to find alternatives.

In the middle of an unprecedented housing crisis and skyrocketing costs, we are creating the first City-backed program to reduce insurance costs for affordable and rent-stabilized housing.

Housing providers will get the support they need to improve housing conditions while…

— Mayor Zohran Kwame Mamdani (@NYCMayor) June 24, 2026

The mayor also noted that the sharp increase in insurance prices is reducing the resources available to preserve affordable housing.

The process to select operators is already open

The city opened a call for applications aimed at insurance brokers, insurers, reinsurers, specialized managers, actuarial consultants, third-party administrators, and other organizations capable of operating a program of this scale.

Proposals may be submitted until August 6, the date when the first stage of the selection process will conclude.

With that information, the administration will evaluate the model that will allow the program to be launched in the coming months.

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More than one million apartments could benefit in NY

New York has approximately one million rent-stabilized apartments, located mainly in private buildings constructed before 1974.

The announcement of the insurance program comes just one day before that agency votes on a possible rent freeze for stabilized housing, one of Mamdani’s main campaign promises to address the city’s high cost of living.

What comes next: The application process to select operators will remain open until August 6. Afterwards, the city will define the model it will use to implement this publicly funded housing insurance program.