NY Governor boosts state captive market
New York Governor Kathy Hochul has signed new legislation as part of the FY26 Enacted Budget that will make owning and renting a home more affordable, as well as boosting the State’s captive insurance market.
As part of the FY 2026 Enacted Budget, Governor Hochul announced more than $1.5 billion in new state funding for housing statewide, including investing $100 million for pro-housing communities to fund critical infrastructure projects to support housing development, $100 million to promote mixed income housing development, $50 million for the first year of the Housing Access Voucher Program to address households that are homelessness or at risk of imminent homelessness, and $50 million for building more affordable starter homes, among other housing initiatives.
The Governor will also help affordable housing access captive insurance to lower costs. Insurance costs for affordable housing have skyrocketed, with many owners reporting paying higher premiums for less coverage and renters bearing an increasing share of costs. In recent years, private insurance captives, which are similar to self-insurance and allow for tailored risk management, have been created specifically for affordable housing owners.
However, these insurance captives often have eligibility standards for participation, which nonprofits may struggle to meet. Governor Hochul will provide assistance to nonprofit affordable housing owners to undertake repairs and other steps needed to be eligible for such captives.
“New Yorkers deserve a fair chance at achieving the American dream, whether it is buying their first home or renting their first apartment, and this bold plan does just that,” Governor Hochul said. “As part of my FY 2026 Enacted Budget, I secured over $500 million in capital for housing to uplift local economies and level the playing field so families can have more access to safe and affordable homes.”
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