Senate Bill S6309

                                 
BILL NUMBER: S6309

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the executive law, in relation to establishing discrimi-
nation where insurers exclude, limit, restrict or reduce coverage of a
publicly-assisted housing accommodation due to lawful source of income

 
PURPOSE:

This legislation would establish that the cancellation, refusal to issue
or renew, increase in premium or restriction of coverage based on the
acceptance of rental subsidies is an unlawful discriminatory practice.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends section 296 of the executive law by adding a new
subdivision 2-b.

Section two establishes the effective date.

              

 
JUSTIFICATION:

Protections against source of income discrimination have been enacted by
both the state and federal government to ensure prospective tenants are
not turned away simply because they use a housing voucher. However, no
such laws exist to prohibit insurance companies from denying coverage on
buildings that provide apartments to voucher holders.

A July 2023 article in the Gothamist detailed how insurance companies
include questions on their applications about the number of units in a
building that receive federal Section 8 or other rental subsidies.
Insurance companies claim this information is used to help calculate the
risk of insuring a building. However, they have used this information to
often deny coverage entirely, or to impose exorbitant premiums._ Source
of income discrimination is illegal, but insurance companies have been
able to skirt these laws, harming tenants and building owners looking to
provide affordable housing.

This legislation would establish that the denial or restriction of
insurance coverage based on the acceptance of rental subsidies, a valid
form of payment, is an unlawful discriminatory practice.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
Immediately.