HUD is becoming increasingly aware of the burden that increasing insurance costs are placing on providers of affordable housing. Unlike their market-rate counterparts, these providers cannot pass increased costs on to tenants, leading some to reduce insurance coverage and delay repairs. These challenges exacerbate the housing supply shortage and threaten overall affordability.

HUD recently issued a Request for Information (RFI) for comments from housing providers and other stakeholders on how HUD can increase the resilience of residential properties to natural hazards and extreme weather. The move comes as public housing authorities, multifamily property owners, and FHA borrowers face increasingly costly property insurance, reduced coverage availability, and other challenges.

The RFI can be found at www.federalregister.gov/d/2024-30936. Commenters will have until Feb. 28, 2025, to provide their input. Responses may be submitted electronically through the Federal eRulemaking Portal or by mail. This will in turn help HUD come up with policies that promote investment in resilience and address the increasing financial burden due to rising insurance costs.

The RFI seeks feedback on a range of pressing issues, including questions around the financial and resilience benefits associated with property modifications that mitigate these risks. HUD seeks to learn how such risk-mitigating modifications would lead to reduced costs of insurance or averted losses. HUD is also exploring state and local incentives, such as tax abatements or reduced insurance premiums, that could create further incentives for investments in resilience.

Another focus of the RFI is how to overcome the barriers to affordable insurance, as well as the potential benefits of industry standards, data availability, and successful community outreach. Commenters are invited to describe their experiences with resilience measures taken, especially on costs, benefits, and any implementation challenges.