Housing Partnership
Insurance
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Housing Partnership Insurance at a Glance

Company Name

Housing Partnership Insurance, Inc.

Place of Business

40 Main Street, Burlington, VT 05401

Corporate Structure

  • A for-profit subsidiary of HPI Holding Company, a private stock company owned by 20 of the leading nonprofit affordable housing corporations in the United States.
  • An association captive insurance company licensed in Vermont, the leading U.S. domicile for captives.
  • All owners are members of the Housing Partnership Network.

Policy Coverage

  • More than 40,000 affordable apartments valued at more than $3 billion.
  • Property coverage equals the total insurable value, up to $75 million per property.
  • Casualty coverage is $1 million per occurrence per property with a $2 million aggregate limit per property.
  • Housing Partnership Insurance reinsures Lexington Insurance Company, a subsidiary of AIG, for the first $500,000 loss per occurrence above stated deductible.
  • Commercial reinsurers cover claims above these limits.

Business Partners

  • Lexington Insurance is the fronting carrier that issues the policies and provides reinsurance on liability coverage above the Housing Partnership Insurance's loss limits.
  • The JLT Group has arranged property reinsurance above the Housing Partnership Insurance's exposure through a Lloyd's of London insurance syndicate.
  • Merrill Lynch has pledged a letter of credit and provided loan financing for the stock purchases.
  • Claims adjuster Broadspire assesses the claims.

Financials

  • $3.5 million of stock issued by HPI Holding Company to capitalize the captive subsidiary.
  • $3 million in equity invested by the Network's nonprofit partners.
  • $2 million of equity invested by the Network in a new credit facility — Housing Partnership Ventures — to finance stock purchases.
  • $5 million loan provided by Merrill Lynch CDC to capitalize the Housing Partnership Ventures and a $2.5 million letter of credit pledged by Merrill Lynch CDC to augment the captive's reserves.
  • Dividends may be available for distribution to stockholders as early as 2008 if loss performance follows historic trends.

Shareholders and Participants

  • ACTION-Housing, Inc., Pittsburgh, PA
  • Aeon, Minneapolis, MN
  • BRIDGE Housing Corporation, San Francisco, CA
  • The Caleb Foundation, Swampscott, MA
  • Charlotte-Mecklenburg Housing Partnership, Charlotte, NC
  • Community Preservation and Development Corporation, Washington, DC
  • Community Services of Arizona, Chandler, AZ
  • Dallas City Homes, Dallas, TX
  • Greater Miami Neighborhoods, Miami, FL
  • HAP, Inc., Springfield, MA
  • Hispanic Housing Development Corporation, Chicago, IL
  • The Housing Partnership Network, Boston, MA
  • The Housing Partnership, Louisville, KY
  • LINC Housing Corporation, Long Beach, CA
  • Mid-Peninsula Housing Coalition, Redwood City, CA
  • National Community Renaissance, Rancho Cucamonga, CA
  • Rocky Mountain Communities (RMC), Denver, CO
  • Settlement Housing Fund, New York, NY
  • South Shore Housing, Kingston, MA
  • Southwest Minnesota Housing Partnership, Slayton, MN

Management

  • Smith Bell & Thompson (Burlington, VT) serves as captive manager responsible for financial management and compliance with Vermont regulations.
  • IMA Financial Group (Denver, CO) manages the Housing Partnership Insurance's insurance contracts and acts as the program underwriter.
  • Downs Rachlin Martin (Burlington, VT) is legal counsel.
  • The Housing Partnership Network (Boston, MA) acts as general manager and oversees the third-party contractual arrangements.

Board Composition

  • Alan Arthur, President, Aeon (Minneapolis, MN)
  • Thomas A. Bledsoe, President and CEO, The Housing Partnership Network (Boston, MA)
  • Gary Griswold, Director of Captive Operations, Smith Bell & Thompson (Burlington, VT)
  • Carol Lamberg, Executive Director, Settlement Housing Fund (New York, NY)
  • David R. Seabrook, Chief Financial Officer, Community Preservation and Development Corporation (Washington, DC)
  • Lawrence A. Swanson, Executive Director, ACTION-Housing, Inc. (Pittsburgh, PA)
  • Fran Wagstaff, President, Mid-Peninsula Housing Coalition (Foster City, CA)
  • D. Kemp Valentine, Chief Financial Officer, BRIDGE Housing Corporation (San Francisco, CA)
  • Richard J. Whittingham, Chief Financial Officer, National Community Renaissance (Rancho Cucamonga, CA)

Launch Date

April 1, 2004

  
 
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