NHPF Industry Report
According to a recent New York Times article, insurers say the growing frequency and severity of hurricanes, wildfires, floods, and big windstorms have made it impossible for them not to raise premiums. In recent years, their property insurance businesses have booked losses instead of profits. This drastically affects affordable housing where rents are capped and subsidized to remain within the reach of those in need. The insurance industry and affordable housers are grappling with ways to adapt, including a potential HUD solution offering extra funds to be distributed to not-for-profit housing providers. Other solutions include help from local, state, and federal officials including new construction codes forcing builders of subsidized housing to use better techniques and stronger materials, thus reducing the total risk insurers would have to take on. Also on the table is a new federal reinsurance fund for property insurers, though some trade groups oppose it. The affordable housing industry is looking to insurers for guarantees that using stronger building techniques will result in lower insurance costs, and they want more information about why premiums have soared. The bottom line? The affordable housing industry and the insurance industry operate in silos and that approach is costing too much—financially and in human lives.
Addressing Urban Challenges
“At the Houston Housing Authority, we've seen how integrated community planning plays a key role in reducing crime and fostering a sense of safety and inclusion. Our work, including projects supported by Choice Neighborhoods grants, aligns with Bureau of Justice Statistics reports showing 15% lower crime rates in mixed-income communities. By offering high-quality, affordable housing in diverse areas, we're not just building homes—we're building thriving, stable communities for everyone.” —DAVID A. NORTHERN, SR., PRESIDENT & CEO, HOUSTON HOUSING AUTHORITY Violent crime rates drop significantly in neighborhoods where mixed-income developments are introduced. For instance, in cities like Chicago and Atlanta, crime rates in neighborhoods with new mixed-income developments fell by over 60% more than they would have without
such initiatives. HUD User / Cleveland Fed REDUCING RACIAL INEQUALITY AND CRIME
Addressing the intersection of race, crime, and affordable housing is crucial for creating equitable communities. Onsite resident services, such as job training and children's programs, have been ranked the highest in terms of effectiveness in reducing racial inequality and crime. These services provide residents with the tools they need to succeed, fostering a sense of community and reducing the likelihood of crime. These services, with the important overlay of programs like Operation Pathways’ Family- Centered Coaching, work alongside residents as they strive towards education, career, and
8 • THE NHP FOUNDATION 2024 SYMPOSIUM: INDUSTRY REPORT
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