Governor Kathy Hochul announced on May 11 a $2 million loan to Milford Street, an insurance collective created and operated by members of New York’s affordable housing industry. The investment from Empire State Development is intended to help combat rising liability insurance premiums for affordable housing providers by supporting a self-insurance model known as a captive.
The initiative comes as liability insurance premiums for New York City affordable housing increased at an annual rate of 21 percent between 2019 and 2023, according to a March 2024 report by the New York Housing Conference. Rising costs have made it harder for developers to build new affordable units and have pressured existing operators, sometimes forcing them to delay maintenance or face financial difficulties.
“New York is the best state to raise a family, and through my Let Them Build initiative, we’re building more homes faster so that new and current families can have long-lasting opportunities here — but we can’t stop there,” Governor Hochul said. “This investment in Milford Street will continue to advance our housing agenda, leading to more affordable units built for tenants. We need to build in New York, and we’re going to support the partnerships that will tackle these insurance costs.”
Empire State Development President CEO and Commissioner Hope Knight said, “Bold ideas and innovative thinking are required to overcome the current affordability crisis. The partnership with Milford Street Captive Insurance Company reflects ESD’s commitment to working with the broader housing community on solution-oriented strategies that advance Governor Hochul’s ambitious housing agenda.” RuthAnne Visnauskas, Commissioner of New York State Homes and Community Renewal (HCR), said the investment demonstrates focus on reducing costs: “Building on HCR’s Risk Reduction and Insurance Affordability pilot program, this initiative gives affordable housing owners and developers a powerful tool…to stabilize expenses, protect their properties, and ultimately create better, more affordable places for tenants to live.”
Milford Street is owned by its participants—affordable rental buildings in New York with regulatory agreements limiting rents—and reinsures policies purchased by these buildings. By focusing on stability rather than profit while simplifying operations and introducing tailored risk management controls, Milford has significantly lowered liability premiums for its members.
The $2 million low-interest loan was approved last year by Empire State Development’s Board of Directors. It will be used primarily as initial capital contribution membership costs in order to increase participation in the captive program—a step considered essential for its long-term sustainability.
Looking ahead, Governor Hochul’s broader agenda includes her five-year Housing Plan aiming at creating or preserving 100,000 affordable homes statewide—over 81,000 have been created or preserved so far—as well as reforms designed under her Let Them Build proposal intended to speed up development processes across New York.
