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Governor and insurance officials back bill to ease insurance costs for affordable housing; committee carries hearing to March 31
Summary
SB 829 would create a premium‑assistance program, study surplus lines and create an export list to expand insurance options for regulated affordable housing and shelters. State officials and providers testified to steep insurance increases; the committee carried the public hearing to March 31 for additional testimony.
State officials and affordable‑housing providers told the Senate Committee on Housing and Development on March 26 that rising insurance premiums threaten the viability of some regulated affordable housing and shelters, and they expressed support for Senate Bill 829 (dash‑1), which would create a premium assistance program and direct a study of insurance market options.
Sweta Ambati, Governor Kotek's senior housing advisor, told the committee SB 829 would provide "premium relief for insurance rate hikes to regulated affordable housing and to shelter providers," direct a study of longer‑term solutions, and create an export list to allow surplus lines carriers to be considered more quickly when admitted market options are unavailable.
Andrew Stolfi, director of the Department of Consumer and Business Services and state insurance commissioner, described several market drivers behind premium increases, including higher property values, reinsurance costs and years of underwriting losses tied to severe weather. Stolfi said the state's outreach to stakeholders found insurance can consume a growing share of operating budgets for affordable properties and that certain types of properties'including project‑based supportive housing'are being treated as higher risk.
Deputy Insurance Commissioner TK Keane described three elements of the proposal: (1) a premium assistance program (eligibility and application processes to be set by rule in coordination with Oregon Housing and Community Services), (2) a study of market options including admitted versus surplus lines coverage, and (3) an export list to help agents place coverage with surplus lines carriers when admitted market capacity is unavailable.
Providers testified about the scale of the problem. Trell Anderson, executive director of Northwest Housing Alternatives, said the nonprofit has seen a 500 percent increase in premium rates over five years and that insurance costs in one property rose from about 10 percent to roughly 40 percent of operating budgets. Anderson said deductibles at some properties have increased from $25,000 to $100,000 per incident.
Committee members asked clarifying questions about whether rising insurance is unique to affordable housing; officials said many market forces affect all property insurance, but affordable providers are less able to recover costs by raising rents because tenant rents are restricted.
Chair Pham said two people had traveled more than 100 miles to testify; the committee carried over the public hearing to Monday, March 31 to allow additional testimony from those already signed up.
No committee vote was taken on SB 829 during the March 26 session; the hearing will continue on March 31 for those who had already signed up to testify.
