Cahill, Seawright, Barron, Jackson, Fernandez, Reyes, Perry
MLTSPNSR
Galef
Directs the department of financial services, in coordination with the division of housing and community renewal, to conduct a study examining the increasing costs of insurance premiums and the lack of availability of insurance coverage for affordable housing developments.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5574
SPONSOR: Cymbrowitz TITLE OF BILL:
An act in relation to directing the department of financial services and
the division of housing and community renewal to conduct a study examin-
ing the increasing costs of insurance premiums and the lack of avail-
ability of insurance coverage for affordable housing
PURPOSE:
To identify the potential impact, over the next ten years, of insurance
premium increases and unavailability of insurance coverage for afforda-
ble housing development and preservation.
SUMMARY OF PROVISIONS:
Section 1 directs DFS and HCR to conduct a study to examine the increase
in insurance premiums and the lack of availability of insurance coverage
for affordable housing developments in NYS.
Section 2 directs DFS and HCR to jointly prepare a report containing
findings and recommendations for potential legislative and regulatory
actions to address the costs and unavailability of insurance. The report
shall be submitted to the Governor, Temporary President of the Senate,
Speaker of the Assembly, and Minority Leaders of the Senate and Assembly
within 8 months of the effective date.
Section 3 is the enacting clause.
JUSTIFICATION:
Increased insurance premiums and lack of availability of coverage for
affordable housing can stifle the development of new affordable housing
in New York State, creating a financial barrier for both affordability
of units as well construction. NYS must assess the impacts of the diffi-
culties that the affordable housing development industry faces so that
New York can address the affordable housing crisis in NYS.
LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS:
To Be Determined
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
5574
2021-2022 Regular Sessions
IN ASSEMBLY
February 19, 2021
___________
Introduced by M. of A. CYMBROWITZ, CAHILL -- read once and referred to
the Committee on Insurance
AN ACT in relation to directing the department of financial services and
the division of housing and community renewal to conduct a study exam-
ining the increasing costs of insurance premiums and the lack of
availability of insurance coverage for affordable housing
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The department of financial services, in coordination with
2 the division of housing and community renewal, shall conduct a study to
3 examine the increases in insurance premiums and the lack of availability
4 of insurance coverage for affordable housing developments in New York
5 state. The department and the division shall:
6 (a) analyze the factors that increase insurance costs for such housing
7 developments and analyze the factors that may limit insurers from offer-
8 ing coverage for affordable housing projects; and
9 (b) identify the potential impact, over the next ten years, of insur-
10 ance premium increases and unavailability of insurance coverage for
11 affordable housing development and preservation, including, but not
12 limited to, the projected total reduction in affordable housing units by
13 region, the inability to develop affordable housing in certain areas and
14 any other topic or issue that is determined to be relevant to the
15 completion of the study by the department and the division.
16 § 2. The department of financial services and the division of housing
17 and community renewal shall jointly prepare a report which shall be
18 submitted to the governor, the temporary president of the senate, the
19 speaker of the assembly, the minority leader of the senate and the
20 minority leader of the assembly, within eight months after the effective
21 date of this act, containing findings and recommendations for potential
22 legislative and regulatory actions to address the costs and unavailabil-
23 ity of insurance.
24 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09784-01-1
