Section 8 Housing - NYC

[dahonored1]

Anyone have any experience writing section 8 housing buildings? I feel like standard carriers won't write those type of risks. I currently have a building written through AMTRUST and the owner is applying to be a section 8 housing. Would that affect anything?

 

[adjusterjack]

Anyone have any experience writing section 8 housing buildings? I feel like standard carriers won't write those type of risks. I currently have a building written through AMTRUST and the owner is applying to be a section 8 housing. Would that affect anything?

"Redlining" is alive and well in the insurance business.

An adverse underwriting decision based solely on Section 8 occupancies smacks of illegal discrimination since Section 8 recipients are typically lower income ethnic minorities.

https://en.wikipedia.org/wiki/Redlining

 

[mr_furly]

Anyone have any experience writing section 8 housing buildings? I feel like standard carriers won't write those type of risks. I currently have a building written through AMTRUST and the owner is applying to be a section 8 housing. Would that affect anything?

I just had a nonprofit habitational risk denied by Amtrust in IL.
25% of the buildings were section 8.

They stated they were not in the market for "housing development / property management".

Start looking for markets now, because its a pain in the ass to place.

I actually logged on here to see if there was a thread on this.

 

[jemelton]

"Redlining" is alive and well in the insurance business.

An adverse underwriting decision based solely on Section 8 occupancies smacks of illegal discrimination since Section 8 recipients are typically lower income ethnic minorities.

https://en.wikipedia.org/wiki/Redlining

Wrong. The owner of the building can be discriminated against because the company has the right to doso.

 

[adjusterjack]

Wrong. The owner of the building can be discriminated against because the company has the right to do so.

For legitimate underwriting reasons.

But not for racism thinly disguised as legitimate underwriting reasons.

Did you even read the article on redlining?

 

[djs]

I'm sure the section 8 authority would be happy to know that it is perceived as a racist benefit. Truly, its not, from what I see, it is one of the most multi-cultural benefits that exists.

Not sure if it would be redlining or not, but I do understand your point. Denying it just because it is section 8 probably doesn't work, but there are probably legit ways to prevent writing these risks.

Denying one building is never redlining from what I understand. Denying one neighborhood could be. Of course, a lot of section 8 housing tends to be in the same area.

Dan

 

[adjusterjack]

I'm sure the section 8 authority would be happy to know that it is perceived as a racist benefit.

So, Dan, you're one of those people that attribute things to people that people didn't actually say. Way to go, Dan.

 

[djs]

So, Dan, you're one of those people that attribute things to people that people didn't actually say. Way to go, Dan.

Somedays.... but not today. I just read your comment differently then you meant it apparently. Fair enough, I appreciate you setting me straight.

My apologies for misunderstanding your comment.

Dan