{"id":14940,"date":"2024-09-15T11:00:17","date_gmt":"2024-09-15T06:00:17","guid":{"rendered":"https:\/\/www.insurance-advocate.com\/?p=14940"},"modified":"2024-10-28T18:12:56","modified_gmt":"2024-10-28T13:12:56","slug":"new-york-affordable-housing-market-about-to-be-captivated-by-new-enterprise","status":"publish","type":"post","link":"https:\/\/www.insurance-advocate.com\/2024\/09\/15\/new-york-affordable-housing-market-about-to-be-captivated-by-new-enterprise\/","title":{"rendered":"New York Affordable Housing Market About to be \u201cCaptivated\u201d by New Enterprise"},"content":{"rendered":"<p class=\"p1\">A Vermont-based captive insurer has targeted New York\u2019s \u00a0affordable rental housing market at a time of that sector\u2019s stress in availability and pricing..<\/p>\n<p class=\"p1\">The Milford Street Association Captive Insurance Co. will serve New York affordable rental buildings that have a regulatory agreement limiting rents and receive public financing, exclusively.<\/p>\n<p class=\"p1\">Affordable housing professionals see rising insurance costs discouraging new affordable housing and increasing deferred maintenance.<\/p>\n<p class=\"p1\">Affordable housing developments with regulatory agreements have higher levels of maintenance and better risk mitigation programs than the market and traditional rent regulated buildings, resulting in more modest claims.<\/p>\n<p class=\"p1\">According to Milford, moving from profit to stability, simplifying overhead and operations and instituting tailor-made risk management controls will result in lower \u00a0liability insurance premiums.<\/p>\n<blockquote>\n<p class=\"p1\"><i>The captive aims to provide both primary (up to $1 million) and excess (up to $5 million above that) coverage. Milford Street says its premiums will be \u201csignificantly lower than what is available in the current market.\u201d<\/i><\/p>\n<\/blockquote>\n<p class=\"p1\">Insureds will also have to pay will be a one-time per unit returnable capital contribution and a small per unit association fee for startup and administrative costs.<\/p>\n<p class=\"p1\">Elliot Kroll, advisor to the first-in-the-nation captive in the sector, stated: \u201cThe purpose of an association captive is to provide the most cost-effective insurance solution for those who understand their risks and employ the best risk management practices,\u201d said Kroll.<\/p>\n<p class=\"p1\">Kroll and his partner Huhnsik Chung \u00a0represented Milford in the formatting and realization of the captive.\u00a0 Founding members of the Milford Street Association include Peter Davis, J Cubed Residential; Susan Camerata, Wavecrest Management; John Crotty, J Cubed Residential; Ruben Diaz, former City Councilor and state Assembly member; Nicole Ferreira, nonprofit mortgage lender CPC Mortgage; and John Murphy, private equity investment Murphy &amp; Partners.<\/p>\n<p class=\"p1\">\u00a0John Crotty of the Work Force Housing Group and a founding member of Milford Street told Insurance Advocate that the creation of Milford was a necessity for the survival of the business segment.<\/p>\n<p class=\"p1\">\u00a0While domiciled in Vermont and regulated by that state, the program has been reviewed by the New York State Department of Financial Services (DFS).<\/p>\n<p class=\"p1\">The announcement of the new captive insurer followed New York DFS regulators\u2019 guidance to insurers regarding affordable housing properties. Under the guidance, commercial insurers are prohibited from inquiring about or making coverage decisions based on a property\u2019s status as an affordable housing development or a tenant\u2019s source of income. The guidance is in a circular letter that implements a new law signed by Governor Kathy Hochul. \u00a0\u00a0In November 2022, DFS and the state housing agency, Homes and Community Renewal (HCR), published a report concerning property\/casualty insurance for buildings with affordable or subsidized housing units. Developers reported significant premium increases or difficulty obtaining policies for affordable housing projects.<\/p>\n<p class=\"p1\">\u00a0Milford appears to have an answer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Vermont-based captive insurer has targeted New York\u2019s \u00a0affordable rental housing market at a time of that sector\u2019s stress in availability and pricing.. The Milford Street Association Captive Insurance Co. will serve New York affordable rental buildings that have a regulatory agreement limiting rents and receive public financing, exclusively. Affordable housing professionals see rising insurance [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[479,491],"tags":[113],"class_list":["post-14940","post","type-post","status-publish","format-standard","hentry","category-479","category-september-2024","tag-in-the-news","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/posts\/14940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/comments?post=14940"}],"version-history":[{"count":1,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/posts\/14940\/revisions"}],"predecessor-version":[{"id":14942,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/posts\/14940\/revisions\/14942"}],"wp:attachment":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/media?parent=14940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/categories?post=14940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/tags?post=14940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}