NY bans discrimination related to affordable housing insurance

New York is taking steps to eliminate what officials say are discriminatory practices by insurance providers when it comes to affordable housing coverage.

Insurers are now prohibited from inquiring about, or making coverage decisions based on, a property’s status as an affordable housing development. They also cannot ask about, or make coverage decisions based on, the level or source of a tenant’s income.

“We are putting insurance on notice: New York will not tolerate bias against our affordable housing providers,” Gov. Kathy Hochul said in a news release. “Insurance discrimination drives up costs for property owners and renters and puts countless affordable homes at risk.”

Under legislation passed as part of the annual budget, insurance companies cannot ask about; cancel, refuse to issue or renew a policy; increase a policy premium; or exclude, limit, restrict or reduce coverage based on:

? The presence of units that are affordable to residents at a specific income level pursuant to a government agreement;

The receipt of governmental rental assistance by the owner or tenants of a residential rental building, or the shareholders of a cooperative housing corporation;

The level or source of income of residents;

Whether the building is owned by a limited equity cooperative, a public housing authority or a cooperative housing corporation subject to certain provisions of the private housing finance law.

New York Homes and Community Renewal reported that affordable housing developers have experienced significant premium increases or had difficulty obtaining policies for affordable housing developments.

“Tenants all over New York face barriers to housing based on their source of income, including Section 8 voucher status,” Community Homes and Renewal commissioner RuthAnne Visnauskas said. “Stigma against Section 8 voucher recipients and tenants that live in affordable housing is discriminatory, whether it’s done by an insurance provider to set insurance rates or by a housing provider to exclude residents from housing accommodations.

“This is another step toward ensuring our investments in affordable housing are not diminished by excessive insurance costs, allowing us to continue to provide housing opportunities for New Yorkers.”

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