Milford Street Captive Insurance Company, a Vermont-domiciled group captive serving New York's affordable housing industry, secures a US$2 million low-interest loan from Empire State Development (ESD) to fund initial capital contributions for new members. Governor Kathy Hochul announces the loan as part of broader state efforts to combat rising liability insurance premiums in New York's affordable housing sector. The loan, approved by ESD's board of directors last year, will be used to cover a portion of the initial capital contribution costs for new members joining the captive. ESD says increasing membership is essential to the long-term success of the vehicle. Milford Street is owned and operated by members of New York's affordable housing industry and was established to combat rising liability insurance premiums in the sector. It operates as a reinsurance vehicle, reinsuring policies purchased by New York affordable rental buildings that operate under regulatory agreements limiting rents and that receive public financing. The captive is regulated by the Insurance Division of the Vermont Department of Financial Regulation. According to a March 2024 report by the New York Housing Conference cited in the announcement, New York City affordable housing liability insurance premiums rose at an annual rate of 21 per cent between 2019 and 2023. The state says these increases discourage new affordable housing development, place pressure on affordable rents and carrying charges, and force operators to defer necessary maintenance, adversely impacting housing quality. The Milford Street loan complements New York State Homes and Community Renewal's (HCR) US$5 million Risk Reduction and Insurance Affordability pilot programme. HCR announced the programme's administrators, the Urban Homesteading Assistance Board and Housing Partnership Network, in February 2026. The programme was created as part of Governor Hochul's FY 2026 Enacted Budget. HCR describes the pilot as the first programme in the United States to help non-profit housing providers reduce costs by using insurance captives. The Urban Homesteading Assistance Board and Housing Partnership Network will work directly with non-profit affordable housing providers across New York to assess the risk profile of their properties and assist them in using insurance captives. John A. Crotty, founding member of Milford Street and a member of Work Force Housing Group, says: "The Governor's support is critical to not only the success of Milford Street Captive Insurance Company, but to the continued health and existence of New York's Affordable Housing Market. Rising insurance premiums are putting intense pressure on the thin margins of affordable housing operators, resulting in fewer projects being underwritten, defraying necessary maintenance and eventually forcing some buildings into bankruptcy." Hope Knight, president, CEO and commissioner of ESD, says: "Bold ideas and innovative thinking are required to overcome the current affordability crisis. The partnership with Milford Street Captive Insurance Company reflects ESD's commitment to working with the broader housing community on solution-oriented strategies that advance Governor Hochul's ambitious housing agenda." RuthAnne Visnauskas, commissioner of HCR, says: "Building on HCR's Risk Reduction and Insurance Affordability pilot programme, this initiative gives affordable housing owners and developers a powerful tool to stabilise expenses, protect their properties, and ultimately create better, more affordable places for tenants to live." According to the announcement, Milford Street has significantly lowered liability insurance premiums for affordable housing development in New York by changing the focus from profit to stability, simplifying overhead and operations, and instituting tailor-made risk management controls.
