Menin on insurance funding methodology and post-2029 continuity

And what methodology is being utilized to determine the appropriate funding level for the program?

So 100 million has been allocated.

It's going to be rolled out and scaled up, starting in 20 million and then 40 and 40 in the subsequent years.

And so we think that that is going to provide

about 20,000 units in the first year and over 100, about 100,000 by 2030.

We are also hoping, again, the city is going to be like an investor and we're hoping it might attract other investors and so we can scale that up as time goes on.

So it's going to be an insurance provider, but that doesn't

I mean, it's like a closed investment.

We're hoping other investments come in so we can scale it up.

Okay, and two last questions, and I'm going to pass it over to Chair Lee.

So for the program, how is it determined that the program will be able to provide assistance for 20,000 homes by 2027 and 100,000 by 2030?

So I can get back to the actual calculation, but the idea is that insurance costs have ballooned like 20 to 30% over the last few years, and

we analyzed it, and it's largely due to overhead and profit, and also

you know, EDC in the city has the lowest cost of capital.

So all those things combined allow us to offer lower premiums.

So we estimated that it can do 20,000 units and then 100,000.

What that will also do is provide savings, so to speak, for the HPD subsidy for five to seven times because it's going to be less costly to bring this affordable housing

to build affordable housing, you'll need less city subsidy for those HPD sites.

Okay, and then lastly, the program is only funded through fiscal 2029.

So what happens to homes that are covered under the insurance program after that time?

So this is just, this is like an investment.

So it'll continue on.

And again, we're hoping that through this investment, we'll attract other residents.

It'll scale.

But it's not like it's going to be depleted.

It's serving there as like a captive, you know?

So it's there.

The principle is not being used.

Okay.

And in fact, you know, we're hoping there's going to be some return.

Okay, thank you.

I'll pass it over to Chair Lee.

Great.

Thank you, Speaker.