Affordable Housing Risk Reduction Program

Rising premiums, deductibles, and reduced coverage can threaten the financial stability and construction of affordable housing. The program helps providers pursue risk-reduction steps and alternatives to standard commercial insurance.

What the law does ​

• Creates the Affordable Housing Risk Reduction Program within the Department of Housing and Community Development.
• Requires technical assistance for providers preparing to join or joining alternative risk-financing entities, such as captives, risk retention groups, and joint powers authorities.
• Supports risk analysis, risk-mitigation measures, funding identification, and applications to alternative risk-financing entities.
• Allows the department to hire third-party consultants and offer one-on-one assistance, training, and best-practice guides.

Who it affects ​

• Affordable housing providers, including nonprofit housing developers.
• Low-income households living in or seeking affordable housing.

Context ​

Alternative risk financing manages risk outside traditional commercial insurance.