Joint powers agreements: nonprofit housing developers

The law gives nonprofit housing developers a new way to share and manage insurance-related risks with public agencies while protecting participating agencies from the arrangement’s debts and liabilities.

What the law does ​

• Authorizes nonprofit housing developers and public agencies to form joint powers agreements to exercise shared powers.
• Allows those agreements to pool risks, provide insurance, and place participating entities under a prorated master insurance policy.
• Requires risk-pooling agreements to prevent public agencies from becoming responsible for the joint powers agency’s debts or liabilities and to indemnify them against those obligations.
• Limits revenue from insurance provided through these agreements to operating expenses and member support aimed at reducing liability risks and strengthening members’ technical, managerial, and financial capacity.

Who it affects ​

• Nonprofit housing developers.
• Public agencies that choose to participate in joint powers agreements with nonprofit housing developers.