NY State Senate Bill 2025-S7939

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 14, 2025	referred to housing, construction and community development

2025-S7939 (ACTIVE) - Details

See Assembly Version of this Bill:: A7828
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Add Art 33 §§1301 - 1308, Priv Hous Fin L

2025-S7939 (ACTIVE) - Summary

Creates an affordable housing insurance relief fund program to provide grants to eligible projects for reasonable and necessary commercial insurance expenses.

2025-S7939 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7939

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the private housing finance law, in relation to creating
an affordable housing insurance relief fund program; and providing for
the repeal of such provisions upon expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

To create the Affordable Housing Insurance Relief Fund Program, which
will provide financial assistance to affordable housing developers
facing dramatic increases in the cost of commercial insurance coverage,
including property, liability, and umbrella policies. The program will
help stabilize operating costs, preserve affordability, and reduce the
risk of displacement.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. The private housing finance law is amended by adding a new
article 33 to the Private Housing Finance Law, establishing the "Afford-

able Housing Insurance Relief Fund Program."

Subsection 1302. Affordable housing insurance relief fund program:
Establishes a program, administered by the Housing Trust Fund Corpo-
ration, to provide payments and grants for reasonable and necessary
mortgage insurance expenses for affordable housing developments.

Subsection 1303. Program criteria. Directs the corporation to create
procedures for competitive applications and awards. Prioritizes projects
facing material increases in insurance costs based on documented
evidence, including premium hikes, coverage reductions, or market vola-
tility. Also allows consideration of challenges securing reinsurance or
operating in noncompetitive insurance markets, as demonstrated by broker
documentation.

Subsection 1304. Funding criteria. Sets maximum award levels at three
thousand dollars per income-restricted unit and two million per project,
with eligibility based on a demonstrated disproportionate increase in
insurance costs relative to coverage loss.

Subsection 1305. Funding. Authorizes the corporation to make all funding
and award decisions, subject to appropriations.

Subsection 1306. Annual report. Requires the corporation to submit an
annual report to the Legislature and Governor detailing applications,
awards, and program implementation data.

Subsection 1307. Stakeholder Advisory Group. Establishes a stakeholder
advisory group to provide guidance on program implementation, equity
considerations, and recommendations to support long-term affordability
and sustainability.

Subsection 1308. Disposition upon expiration. Provides for the continued
administration of contracts and obligations entered into prior to the
program's expiration and directs the disposition of unencumbered funds
in accordance with legislative intent.

 
JUSTIFICATION:

Skyrocketing housing insurance costs are threatening the financial
viability of affordable multifamily rental housing in New York.  Excess
liability costs in particular have been increasing dramatically over the
past five years, doubling or tripling costs for some owners, even while
those owners have seen no excess liability claims.

As of 2025, the average cost to insure an affordable apartment has
skyrocketed to $1,770 per unit - a 103% increase from just four years
ago when premiums averaged $869 per unit. As rates continue to climb, so
does the financial strain on affordable housing developers, making it
increasingly difficult to afford and maintain their properties.  These
increasing costs are being passed onto tenants in the form of rent
increases. Not taking action on skyrocketing insurance rates will put
thousands of tenants in subsidized and affordable housing units at risk
across New York State.

This bill aims to provide financial relief to stabilize the costs to
operate affordable multifamily housing in New York. This support will
help stabilize housing costs, reducing the risk of displacement and
preventing foreclosure for low- and middle-income families.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

The fund shall provide financial assistance in an amount not to exceed
three thousand dollars per income-restricted housing unit, and not to
exceed two million dollars per eligible project annually. A request
shall be made to the governor for an appropriation of fifty million
dollars to establish and administer the fund for the purpose of mitigat-
ing increased insurance costs impacting income-restricted housing devel-
opments.

 
EFFECTIVE DATE:
This act shall take effect on first of January following its enactment
and expire twenty years later. Regulations may be promulgated prior to
the effective date.

2025-S7939 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7939
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 14, 2025
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN ACT to amend the private housing finance law, in relation to creating
   an affordable housing insurance relief fund program; and providing for
   the repeal of such provisions upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The private housing finance law is amended by adding a  new
 article 33 to read as follows:
                              ARTICLE XXXIII
             AFFORDABLE HOUSING INSURANCE RELIEF FUND PROGRAM
 SECTION 1301. DEFINITIONS.
         1302. AFFORDABLE HOUSING INSURANCE RELIEF FUND PROGRAM.
         1303. PROGRAM CRITERIA.
         1304. FUNDING CRITERIA.
         1305. FUNDING.
         1306. ANNUAL REPORT.
         1307. STAKEHOLDER ADVISORY GROUP.
         1308. DISPOSITION UPON EXPIRATION.
   §  1301.  DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "CORPORATION" SHALL MEAN THE HOUSING TRUST FUND CORPORATION  ESTAB-
 LISHED IN SECTION FORTY-FIVE-A OF THIS CHAPTER.
   2.  "PROGRAM"  SHALL MEAN THE AFFORDABLE HOUSING INSURANCE RELIEF FUND
 PROGRAM ESTABLISHED UNDER THIS ARTICLE.
   3. "ELIGIBLE PROJECT" SHALL  MEAN  A  PROPOSED,  ONE  HUNDRED  PERCENT
 AFFORDABLE  OR SUPPORTIVE MULTIFAMILY RENTAL PROPERTY SUBJECT TO A REGU-
 LATORY AGREEMENT WITH ONE OR MORE MUNICIPAL, STATE, OR  FEDERAL  HOUSING
 AGENCIES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11421-05-5
 S. 7939                             2

 
   4.  "ELIGIBLE  APPLICANT"  SHALL INCLUDE FOR-PROFIT AND NOT-FOR-PROFIT
 AFFORDABLE HOUSING DEVELOPERS THAT HAVE A REGULATORY AGREEMENT WITH  ONE
 OR  MORE  MUNICIPAL,  STATE,  OR  FEDERAL HOUSING AGENCIES WHICH WILL BE
 APPLICABLE TO ONE HUNDRED PERCENT OF THE HOUSING UNITS ON  THE  PROPERTY
 UPON COMPLETION OF THE PROPERTY'S DEVELOPMENT.
   5.  "COMMERCIAL  INSURANCE  EXPENSES"  SHALL MEAN PREMIUMS AND RELATED
 COSTS PAID BY ELIGIBLE APPLICANTS FOR INSURANCE  POLICIES  THAT  PROVIDE
 COVERAGE  FOR  COMMERCIAL  PROPERTY  DAMAGE,  GENERAL  LIABILITY, EXCESS
 LIABILITY, OR UMBRELLA LIABILITY RISKS ASSOCIATED WITH THE OPERATION AND
 MAINTENANCE OF AFFORDABLE HOUSING DEVELOPMENTS. SUCH POLICIES  SHALL  BE
 CUSTOMARILY ISSUED UNDER COMMERCIAL HABITATIONAL INSURANCE LINES.
   §  1302.  AFFORDABLE  HOUSING  INSURANCE  RELIEF  FUND PROGRAM. WITHIN
 AMOUNTS APPROPRIATED OR OTHERWISE AVAILABLE THEREFOR, THE HOUSING  TRUST
 FUND  CORPORATION  SHALL  DEVELOP  AND  ADMINISTER AN AFFORDABLE HOUSING
 INSURANCE RELIEF FUND PROGRAM WHICH SHALL PROVIDE AID  IN  THE  FORM  OF
 PAYMENTS  AND  GRANTS  FOR REASONABLE AND NECESSARY COMMERCIAL INSURANCE
 EXPENSES TO ELIGIBLE APPLICANTS FOR THE DEVELOPMENT OF AFFORDABLE  HOUS-
 ING PROPERTIES IN ACCORDANCE WITH THIS ARTICLE.
   § 1303. PROGRAM CRITERIA. 1. THE CORPORATION SHALL DEVELOP PROCEDURES,
 CRITERIA  AND  REQUIREMENTS  FOR  THE PROGRAM RELATED TO THE COMPETITIVE
 APPLICATION FOR AND AWARD OF GRANTS PURSUANT TO THIS ARTICLE WHICH SHALL
 INCLUDE, BUT NOT BE LIMITED TO: ELIGIBILITY, MARKET DEMAND,  FEASIBILITY
 AND FUNDING CRITERIA; THE FUNDING DETERMINATION PROCESS; SUPERVISION AND
 EVALUATION  OF  CONTRACTING APPLICANTS; REPORTING, BUDGETING AND RECORD-
 KEEPING REQUIREMENTS; PROVISIONS FOR  MODIFICATION  AND  TERMINATION  OF
 CONTRACTS; AND SUCH OTHER MATTERS NOT INCONSISTENT WITH THE PURPOSES AND
 PROVISIONS  OF  THIS  ARTICLE AS THE CORPORATION SHALL DEEM NECESSARY OR
 APPROPRIATE.
   2. THE CORPORATION MAY PRIORITIZE AWARDS  TO  ELIGIBLE  PROJECTS  THAT
 DEMONSTRATE  A  MATERIAL  INCREASE  IN  THE COST OF MAINTAINING REQUIRED
 COMMERCIAL INSURANCE COVERAGE. SUCH PRIORITIZATION  SHALL  BE  BASED  ON
 DOCUMENTED  EVIDENCE OF: (A) PREMIUM INCREASES EXCEEDING INDUSTRY BENCH-
 MARKS; (B) LOSS OF CARRIER AVAILABILITY OR REDUCTIONS IN POLICY COVERAGE
 LIMITS; OR (C) OTHER MARKET-BASED INDICATORS OF INSURANCE COST VOLATILI-
 TY. FOR THE PURPOSES OF THIS SECTION, ALL APPLICANTS SHALL  BE  PRESUMED
 TO  HAVE  OBTAINED  COMMERCIAL  INSURANCE  COVERAGE  SUFFICIENT  TO MEET
 FINANCING OR REGULATORY COMPLIANCE OBLIGATIONS,  AND  THE  INABILITY  TO
 OBTAIN  INSURANCE  SHALL  NOT  BE CONSTRUED AS A PREREQUISITE TO PROGRAM
 ELIGIBILITY.
   3. THE CORPORATION MAY PRIORITIZE ELIGIBLE PROJECTS WITH  DEMONSTRATED
 INSURANCE  ACCESS BARRIERS, FINANCIAL VULNERABILITY, OR OTHER INDICATORS
 OF CRITICAL NEED.
   § 1304. FUNDING CRITERIA. 1. THE AMOUNT OF ASSISTANCE  PROVIDED  UNDER
 THIS  PROGRAM  SHALL  NOT  EXCEED THREE THOUSAND DOLLARS PER INCOME-RES-
 TRICTED HOUSING UNIT PER CALENDAR YEAR, AND SHALL NOT EXCEED TWO MILLION
 DOLLARS IN TOTAL ASSISTANCE PER ELIGIBLE PROJECT PER CALENDAR YEAR.  THE
 CORPORATION SHALL ESTABLISH A METHODOLOGY TO DETERMINE APPROPRIATE AWARD
 LEVELS  BASED  ON  FACTORS INCLUDING, BUT NOT LIMITED TO: (A) DOCUMENTED
 INCREASES IN COMMERCIAL INSURANCE PREMIUMS RELATIVE TO A BASELINE  YEAR;
 (B)  THE TOTAL NUMBER OF INCOME-RESTRICTED UNITS IN THE PROJECT; AND (C)
 THE RISK CLASSIFICATION OR LOSS EXPERIENCE OF THE DEVELOPMENT, AS APPLI-
 CABLE.
   2. THE CORPORATION SHALL HAVE THE  AUTHORITY  TO  ADJUST  THE  MAXIMUM
 AWARD  AMOUNTS  SET  FORTH  IN  THIS ARTICLE, INCLUDING THE PER-UNIT AND
 PER-PROJECT CAPS, TO ACCOUNT FOR INFLATION  OR  SIGNIFICANT  CHANGES  IN
 MARKET CONDITIONS. ANY SUCH ADJUSTMENTS SHALL BE MADE IN ACCORDANCE WITH
 S. 7939                             3
 
 A  METHODOLOGY  ESTABLISHED  BY  THE CORPORATION, PUBLISHED IN THE STATE
 REGISTER, AND REPORTED IN THE ANNUAL REPORT REQUIRED UNDER SECTION THIR-
 TEEN HUNDRED SIX OF THIS ARTICLE.
   §  1305.  FUNDING.  SUBJECT  TO  APPROPRIATIONS  FOR THIS PROGRAM, THE
 CORPORATION IN ITS SOLE DISCRETION SHALL AUTHORIZE ALL FUNDING DECISIONS
 AND MAKE ALL AWARD DETERMINATIONS.
   § 1306. ANNUAL REPORT. THE CORPORATION SHALL, ON OR BEFORE JUNE  THIR-
 TIETH  IN  EACH YEAR SUBMIT A REPORT TO THE LEGISLATURE AND THE GOVERNOR
 ON THE IMPLEMENTATION OF THIS ARTICLE. SUCH REPORT  SHALL  INCLUDE,  BUT
 NOT BE LIMITED TO, THE NUMBER OF APPLICATIONS RECEIVED BY THE END OF THE
 PRECEDING  CALENDAR  YEAR, THE TOTAL DOLLAR AMOUNT OF SUCH APPLICATIONS,
 AND THE DISPOSITION OF SUCH APPLICATIONS; AND FOR EACH AWARD MADE  TO  A
 GRANTEE  UNDER  THIS  ARTICLE, A DESCRIPTION OF SUCH AWARD, THE CONTRACT
 AMOUNT AND CUMULATIVE TOTAL, AND SUCH OTHER INFORMATION  AS  THE  CORPO-
 RATION DEEMS PERTINENT.
   § 1307. STAKEHOLDER  ADVISORY  GROUP.  THE  CORPORATION  MAY CONVENE A
 STAKEHOLDER ADVISORY GROUP COMPOSED OF REPRESENTATIVES  FROM  AFFORDABLE
 HOUSING  DEVELOPMENT, INSURANCE MARKETS, NONPROFIT ORGANIZATIONS, TENANT
 ADVOCATES, AND LOCAL GOVERNMENTS. THE ADVISORY  GROUP  SHALL  ASSIST  IN
 REVIEWING  PROGRAM  IMPLEMENTATION, EQUITY CONSIDERATIONS, AND RECOMMEND
 IMPROVEMENTS TO SUPPORT LONG-TERM AFFORDABILITY AND SUSTAINABILITY.
   § 1308. DISPOSITION UPON EXPIRATION. UPON THE EXPIRATION OF THIS ARTI-
 CLE, THE CORPORATION  SHALL  CONTINUE  TO  ADMINISTER  AND  ENFORCE  ALL
 CONTRACTS, AWARDS, AND OBLIGATIONS ENTERED INTO PRIOR TO SUCH EXPIRATION
 IN  ACCORDANCE WITH THEIR TERMS. ANY UNENCUMBERED FUNDS APPROPRIATED FOR
 THE PURPOSES OF THIS ARTICLE THAT REMAIN AT THE TIME OF EXPIRATION SHALL
 BE RETURNED TO THE STATE TREASURY OR REALLOCATED IN A MANNER  CONSISTENT
 WITH  LEGISLATIVE  INTENT, AS DETERMINED BY THE CORPORATION IN CONSULTA-
 TION WITH THE DIVISION OF THE BUDGET. THE  EXPIRATION  OF  THIS  ARTICLE
 SHALL  NOT IMPAIR OR AFFECT THE RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER
 ANY CONTRACT EXECUTED PURSUANT TO THIS ARTICLE PRIOR TO ITS REPEAL.
   § 2. This act shall take effect on the first of January next  succeed-
 ing  the  date on which it shall have become a law  and shall expire and
 be deemed repealed twenty years after such effective  date.    Effective
 immediately,  the addition, amendment and/or repeal of any rule or regu-
 lation necessary for the implementation of this  act  on  its  effective
 date are authorized to be made and completed on or before such effective
 date.

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Senate Bill S7939

Sponsored By

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2025-S7939 (ACTIVE) - Details

2025-S7939 (ACTIVE) - Summary

2025-S7939 (ACTIVE) - Sponsor Memo

2025-S7939 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7939

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Sponsored By

Jamaal T. Bailey

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2025-S7939 (ACTIVE) - Details

2025-S7939 (ACTIVE) - Summary

2025-S7939 (ACTIVE) - Sponsor Memo

2025-S7939 (ACTIVE) - Bill Text download pdf

Comments