New York City Mayor Zohran Mamdani isn't just focusing on improving affordability for tenants — but now has shifted to focus on landlords. The Democratic socialist on Thursday is expected to announce a plan that reduces insurance premiums for rent-stabilized and affordable housing operators, according to a report from Realtor.
Already, Leila Bozorg, deputy Mayor for housing, signaled yesterday that a city-supported plan could reduce insurance costs for these landlords between 20 percent and 30 percent, the real estate marketplace said. Also, the program, which would use the city's balance sheet, provides access to cheaper capital, with less profit expectations than commercial insurers.
The goal under Mamdani's anticipated proposal is to reach 100,000 homes by 2030.
The news comes as Mamdani has paved the way for a rent freeze on all stabilized apartments in the city after naming six new members to the Rent Guidelines Board, which represents more than the majority needed. But of course, the rent freeze has caused some angst among the CRE community, especially among smaller landlords who feel the crunch more when absorbing higher costs.
On insurance alone, a recent study by non-profit SPONY found that premiums on some NYC buildings more than doubled in 2025 from the previous year. Plus, liability claims can range anywhere from $5 million and $10 million now for a slip and fall, versus just $1 million about five years ago, Danielle Lombardo, vice chair at insurance giant at Howden, told GlobeSt. in March.
But perhaps reducing insurance costs will lessen the burden for property owners who may struggle in an environment where rents stay frozen.
Some more good news for landlords: Both Mamdani and New York Governor Kathy Hochul appeared to have agreed on a wealth tax that would place an annual surcharge on second homes, worth at least $5 million, not listed as a primary residence or not rented to a primary resident in the city. This move, pending state legislature approval, could end fears of Mamdani's previous warning of a 9.5 percent property tax hike if the city didn't start taxing its richest residents.
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