BILL NUMBER: S5264
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the insurance law, in relation to requiring insurance
companies to provide detailed rationale for rate changes of certain
state or municipal backed buildings
 
PURPOSE:
To require insurers of state and municipally owned buildings and devel-
opments to submit reasons for a carrying charge rate increase in writing
to the Department of Housing Preservation and Development, to the
Department of Housing and Community Renewal and to stakeholders within a
certain timeframe prior to enacting any rate changes.
 
SUMMARY OF PROVISIONS:
Section one of this bill amends the insurance law by adding a new
section § 2354.
 
JUSTIFICATION:
In late February 2024, the Department of Housing and Community Renewal
was forced to approve an 8.1 percent carrying charge increase for Co-op
City shareholders.
This rate increase was decided without:
(1) insight regarding the formula used by the insurance company to
calculate the rate increase;
(2) consideration of a percentage increase stakeholders could afford to
pay;
(3) notification within a reasonable period to stakeholders.
The 8.1 percent rate increase will have an adverse impact on the post-
pandemic economic progress made in the Bronx by placing a housing-cost
burden on 50,000 residents, most of whom are either middle-income work-
ers or belong to the largest Naturally Occurring Retirement Community
(NORC) in the nation.
 
LEGISLATIVE HISTORY:
2023-24: S8772 - Referred to Insurance
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become law.