Senate housing committee advances bill to help affordable housing providers lower insurance costs

The Senate Standing Committee on Housing on May 20 advanced SB 13 88, a bill authored by Senator Durazo to establish an "Affordable Housing Risk Reduction Program" that would provide technical assistance to affordable housing providers seeking alternative insurance models.

The chair presenting the bill said the measure is not a loan program but would offer technical help so providers can "pursue risk mitigation strategies and alternative risk financing options." The chair cited broad insurance-market pressures in California, saying the state has seen "increases as high as 500%" in insurance premiums and noting that in the senator's district the Little Tokyo Service Center saw premiums rise "by over 300%." Those increases, the chair said, limit providers' ability to build and preserve affordable housing.

Graciela Castillo Crings testified in support on behalf of Enterprise Community Partners and Housing California, and Clifton Wilson spoke for the Burbank Housing Development Corporation. The committee recorded no opposition witnesses during the hearing. After presentations and support testimony, Senator Gonzales moved that the assembly amendments be concurred in; the motion passed on a roll-call vote the chair recorded as 8 to 2.

SB 13 88’s proponents said the program would help smaller or resource-constrained nonprofit housing providers build the expertise needed to evaluate or join pooled insurance models and other alternatives. The bill’s next procedural status is committee approval of the assembly amendments; the committee’s concurrence moves the measure forward in the legislative process.