Maloney on insurance selection criteria and risk pool
Maloney asks about criteria for selecting homes for city-backed insurance. Peck explains they target the middle 60% of affordable housing stock, avoiding both best performers and worst risks, to avoid taking on extra risk.
What was already mentioned, but the city-backed insurance.
On the expense side, this is the biggest shift from the prelim budget to now.
And I'm encouraged by, I've got it actually printed out, the block-by-block plan.
And, you know, housing affordability is a top priority of the council as well.
So I appreciate the effort to address one of the highest costs, which is in insurance.
When we're talking about the criteria for which homes are going to receive insurance, city-backed insurance through the program, what's the selection criteria?
Yeah, thank you.
That's an important question.
We thought about this a lot.
It's sort of, if you look at the pool of affordable homes, whether they're new affordable homes or existing stock, we didn't want to have the best performing, so to speak, and we didn't want to be the insurer of last resort.
We want to sort of take the middle block, so let's call it the middle 60%.
That is where we're, that's the stock that we will be insuring.
And so HPD will be looking at their portfolio and sort of their pipeline for bringing affordable housing, and they'll direct us in terms of what, but that's the criteria.
It's sort of the middle group.