Menin on city-backed insurance program structure and benefits
Menin asks why EDC administers the contract if HPD manages the program. Peck explains the three-way partnership: HPD has housing stock, HTC handles bond finance, and EDC brings transactional expertise.
Okay, I know other members have a bunch of questions on that, so I'm going to move topics to city-backed insurance.
So I just want to better understand, because we're very interested in the issue of insurance and lowering insurance costs.
This is incredibly important.
As I mentioned in the opening statement, we're creating an insurance accountability office to try to drive down the price of insurance, whether it be for homeowners, renters, small businesses.
So my understanding is that the insurance program that was announced will be run and managed by HPD.
Can you explain what the benefit is in having EDC administer the contract, but you're not managing the program?
Yeah, thank you for that question.
This has been...
A program that we've been working with HPD and HTC for actually a few years now, and so we're really excited that this is now happening and funded.
So the relationship, it's a three-way effort, and we're working very close with HPD and HTC.
HPD as because they have the housing stock and they are building affordable housing.
HTC because they're the bond finance arm for the affordable housing.
And EDC is involved because we have a lot of investment and transactional expertise through our strategic investments group.
And so this is kind of what they do every day.
And so it was a really good synergy.
So we're actually going to be doing the sort of transacting and executing of the insurance program.