Bill
A 11059
The bill creates a temporary state-backed insurance pool and legal immunity for qualified low-income housing providers to curb liability and stabilize affordable housing insurance.
Proposed by Assemblymember Dilan; co-sponsored by Erik Dilan. Referred to the Housing Committee on April 24, 2026.
Purpose of the bill
- To shield low-income housing providers that receive government funding from unlimited liability by creating a defined liability limit.
- To establish a temporary, state-backed insurance stabilization program (a joint underwriting association) to provide affordable commercial general liability (CGL) insurance to covered providers.
- To assess, monitor, and report on the availability and affordability of such insurance, with a sunset/trigger for review.
Key provisions and changes
1) New Article 33 – Low-Income Housing Liability Standards
- Definitions
- Covered low-income housing provider: Entities that can qualify under three tracks:
- A nonprofit owning at least 45% of the property, meeting criteria of an appropriate nonprofit (per Private Housing Finance Law).
- A “housing company” as defined in the Public Housing Law.
- An entity providing low-rent housing funded by federal/state/municipal sources to qualify as a project under the Public Housing Law.
- Non-medical damages: Damages excluding medical expense damages; includes compensatory and non-economic damages caused by willful, wanton, or grossly negligent conduct.
- Qualified civil liability action: A civil action against a covered provider, with several exclusions.
- Limitation of liability
- Notwithstanding other law, no qualified civil liability action may be brought in any New York court against a covered low-income housing provider.
- Implication
- This creates a general immunity from a broad category of civil liability actions for qualified providers, subject to the defined conditions and the existence of the new insurance mechanism (discussed below).
2) New Article 34 – Temporary Insurance Stabilization Program
- Legislative findings and purpose
- Affordability and availability of liability insurance for low-income housing providers are critical to maintaining affordable housing.
- Providers face rising insurance costs and unlimited liability, potentially jeopardizing the affordable housing stock.
- A temporary program is necessary to stabilize insurance availability while protecting public investments in affordable housing.
- Joint underwriting association (JUA)
- Establishes the New York Housing Insurance Stabilization Association (the Association), consisting of all insurers authorized to write commercial general liability insurance in New York.
- Governance: 13-member board (10 elected by members via cumulative voting, weighted by net direct premiums written; 3 appointed by the Superintendent, representing broad public interest).
- Functions: The Association can issue CGL policies to eligible applicants, accept cessions and reinsurance, and cede reinsurance to the private market.
- Plan of operation
- A plan approved by the Superintendent to ensure affordable, fair, and non-discriminatory access to CGL insurance for covered providers.
- Plan elements include: per-occurrence and aggregate limits, premium installment plans, prohibition of other lines of insurance, reinsurance arrangements, and eligibility standards.
- Coverage: CGL insurance for covered providers for a five-year term from the article’s effective date.
- Eligibility and issuance: Providers that diligently seek insurance in the normal market can apply; if insurable and with no unpaid premium, the Association issues a one-year policy after premium payment.
- Appeals: Applicants or insured parties may appeal adverse association decisions to the Superintendent within 30 days.
- Rating and subsidies
- Rates, rules, and statistics follow Article 23 of the Insurance Law, with a process to determine actuarial rates.
- If rates are not affordable, the Superintendent can determine an appropriate subsidy to reduce the rate.
- Assessments and deficits
- Members participate in writings, expenses, profits, and losses pro rata to net direct premiums written.
- Deficit mechanism: Members are not obligated to reimburse more than 1% of surplus to policyholders for annual deficits; any excess deficit is allocated among remaining members.
- Supervisory adjustment: If aggregate deficits exceed 1% of member surpluses, deficits are allocated proportionally.
- Incentives: An incentive plan to encourage voluntary writings of CGL policies for the covered providers.
- Loss limits and state support
- Annual aggregate losses paid by the Association are capped at $50 million.
- If losses exceed $50 million, the excess is paid by the New York State Division of Housing and Community Renewal under prescribed procedures.
- Reporting and examinations
- Annual statements due March 1; DFS may require additional information.
- DFS may conduct examinations with costs borne by the Association.
- Study and determination (sunset review)
- Within 3 years of the act’s effective date, DFS and the Commissioner must study availability/affordability of liability insurance for low-income housing providers, assess impact if the Association were disbanded, and report to the Governor on whether the Association should continue.
Effective date and expiration
- The act takes effect 180 days after becoming law.
- Section 2 provisions (the insurance stabilization framework) expire and are repealed once the JUA completes servicing all policies and obligations, with the Superintendent notifying the Legislature upon completion to maintain an accurate legal text history.
Who is affected
Procedural and timeline notes
Overall impact
Compiled from official sources — confirm details with the bill’s official record.
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