The Mamdani administration opened a formal search last week for an insurance company to operate a new city-backed program for rent-stabilized buildings, issuing a request for information on June 24, according to reporting by The City, republished by Brownstoner.
The Economic Development Corporation published the request alongside the Department of Housing Preservation and Development and the Housing Development Corporation. The EDC will invest $100 million over three years to launch the program, which is designed to cut insurance premiums by at least 20 percent. It is slated to begin in 2027, starting with about 20,000 apartments and eventually expanding to 100,000 apartments by 2030.
The program would cover two pools of housing: the roughly 365,000 affordable apartments financed by HPD and HDC, and the approximately 500,000 rent-stabilized apartments that receive no city subsidy.
Insurance costs for rent-stabilized buildings have nearly doubled over the past five years, outpacing every other major landlord expense including taxes, fuel, labor, and utilities, according to Rent Guidelines Board research cited by The City. In buildings that the city finances directly, yearly premiums tripled from about $600 per apartment in 2018 to about $1,800 in 2025.
Overall landlord costs for rent-stabilized buildings rose 5.3 percent between 2025 and 2026, outpacing the national inflation rate of 2.7 percent over the same period. Insurance was the second-largest driver of that increase, up 10.5 percent year over year, trailing only fuel.
“If the owners are spending less on insurance, they’ll be able to better maintain their properties, and it will cost the city less in subsidy over the long run,” Brinda Ganguly, the executive vice president of EDC’s strategic investments group, told The City. “New York City is such a unique housing market that we haven’t seen anything else like this in another jurisdiction.”
Mamdani first announced the concept in May. He has since cited the insurance program as a way to offset landlord costs at the same time he pursues rent relief for tenants. The RFI opened the day before the Rent Guidelines Board was slated to vote on a possible rent freeze for rent-stabilized tenants across the boroughs. Property owners have argued that limiting rent increases prevents them from funding building upgrades. “I’ve been clear that I do believe that tenants deserve relief, and also that my belief in tackling the cost of living crisis is true for everyone,” Mamdani told The City in a recent interview.
“Skyrocketing insurance costs are draining resources from the affordable housing New Yorkers depend on,” Mamdani said in a statement. “When private markets fail to deliver, government has a responsibility to step in. This city-backed insurance program will lower costs, protect affordable and rent-stabilized homes, and ensure that more money goes to repairs, maintenance, and improvements that tenants can actually see.”
Responses to the request are due in August. After that, EDC will select a group of respondents and share data on the city-subsidized housing portfolio so they can refine their proposals. The administration also expects the program to reduce the amount of taxpayer dollars required per affordable apartment, freeing up funds for other affordable housing efforts.
