SB3311

SECTION 1. This Act shall be known as may be cited as the "Strengthen Hawaii Homes Act".

SECTION 2. The legislature finds that state homeowners are struggling to secure and maintain affordable property insurance due to more frequent catastrophes and tighter underwriting by insurers. The legislature further finds that other states have improved insurance affordability and availability in the face of similar challenges by pairing targeted mitigation assistance with insurance-incentive frameworks tied to recognized resilience standards. Oklahoma's Strengthen Oklahoma Homes Act and the Strengthen Alabama Homes program in Alabama have been linked to premium relief and improved market stability, while greatly increasing the resiliency of residential properties. Western states, including California and Colorado, have also enacted similar programs that reduce wildfire risk and support insurance coverage availability. The legislature further finds that the National Council of Insurance Legislators adopted the Strengthen Homes Program Model Act as a replicable policy model, reflecting a growing consensus that verified, standards-based mitigation can support more stable property insurance markets.

The legislature also finds that effective mitigation assistance in the State must occur at scale. Many of the State's older, single-wall plantation homes are concentrated in neighborhoods where wildfire and wind-driven hazards can spread rapidly from structure to structure. Risk reduction and other insurance benefits sought by individual homeowners may be limited or delayed until a substantial share of nearby homes are also hardened and the expected loss in the surrounding neighborhood declines. The legislature finds, however, that fiscal uncertainty and the scale of need in the State requires a robust, partnership-based approach, including private, nonprofit, federal, state, and county support, to reach older housing stock and income-qualified households that are least able to self-fund upgrades.

Accordingly, the purpose of this Act is to stabilize and, where feasible, reduce property insurance costs and to improve insurance availability in the State by establishing a strengthen Hawaii homes program that:

(1) Prioritizes and incentivizes verified, standards-based mitigation for older and income-qualified homes to reduce risk and insured losses; and

(2) Leverages diversified public-private funding and delivery partnerships, including private, nonprofit, federal, state, and county resources, to maximize participation and implementation statewide.

SECTION 3. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

STRENGTHEN HAWAII HOMES PROGRAM

§ -1 Definitions. As used in this chapter:

"Contractor" has the same meaning as defined in section 444-1.

"Department" means the department of land and natural resources.

"Mitigation project" means the construction or retrofitting of insurable property to mitigate potential future damage due to fire.

"Program" means the strengthen Hawaii homes program.

§ -2 Strengthen Hawaii homes program; established. (a) There is established the strengthen Hawaii homes program within the department of land and natural resources for administrative purposes to provide grants to construct or retrofit insurable property to resist loss due to fire.

(b) Under the program, the department shall:

(1) Apply for financial grants and other types of funding for mitigation projects;

(2) Establish standards for mitigation projects, including designs sufficient to substantially mitigate future damage due to fire; and

(3) Generate a list of certified assessors to provide to applicants for grants and other types of funding.

(c) Under the program, the department may make grants available for mitigation projects to residential property owners and nonprofit entities; provided that any nonprofit entity that accepts a grant from the department shall administer the grant subject to the same regulations as the department and shall provide financial documentation to the department in a timely manner when requested.

(d) All mitigation projects shall have all required local permits and pass all applicable assessments required under the applicable county building code and the Insurance Institute for Business and Home Safety Fortified Homes Program, or a similar organization as determined by the department in collaboration with state insurers.

(e) The department may adopt rules pursuant to chapter 91, necessary for the purposes of this chapter. Any entity providing grants or other types of funding to the program may adopt rules and guidelines under which the grants or other types of funding may be used; provided that the rules and guidelines do not violate state or federal law.

(f) Nothing in this chapter shall be construed to create an entitlement for property owners or an obligation by the State to fund the assessment, construction, or retrofitting of any insurable property in the State.

§ -3 Grants for residential property owners; eligibility. (a) Residential property owners may apply for a grant under the program; provided that the grant shall only be used for mitigation projects. Eligibility requirements for awarding grants shall be established by the department and shall include but not be limited to the following:

(1) The residential property owner shall:

(A) Claim primary residence in a county where grants may be approved;

(B) Provide proof of a valid, current insurance policy for the insurable property; and

(2) The property to be mitigated shall be:

(A) An owner-occupied, single-family, primary residence that is not a condominium or mobile home; or

(B) A long-term rental property that is the primary residence of the tenant with a lease of one year or longer; and

(3) An assessor, who is certified by the organization identified pursuant to section -2(d) and selected from a list provided by the department shall:

(A) Prequalify the insurable property as capable of mitigation;

(B) Identify all improvements required to achieve the standard approved by the department; and

(b) Grant applications shall be filed electronically with the department in the form and manner prescribed by the department, along with any applicable transaction fees.

(c) Documents, materials, and other information submitted to the department by residential property owners or insurance companies in support of a grant application shall be confidential and privileged information, shall not be subject to open records requests, subpoena, or discovery, or admissible in evidence in any private civil action.

(d) Any mitigation project involving retrofitting shall be completed within six months of the date that the residential property owner receives notice of the approval of the grant for the mitigation project. Failure to complete the project on time may result in the forfeiture of the grant. Extensions may be given by the department under circumstances the department deems appropriate.

(e) Grants shall only be paid to the residential property owner by the department or an agency it designates upon submission of the certification of standard pursuant to subsection (a)(3)(c) to the department.

(f) Applications for grants shall be accepted on a first-come, first-served basis within each income tier established by the department, in consultation with the insurance commissioner and the office of the state fire marshal, with priority given to:

(1) Lower-income applicants;

(2) Applicants who live in locations that have a higher susceptibility to catastrophic fires, based on historical data; and

(3) Applicants meeting any other criteria the department deems appropriate.

(g) The department may conduct a random inspection of records, financial documentation, and insurable property or mitigation projects awarded a grant under the program for the purposes of detecting fraud.

§ -4 Contractor; eligibility. (a) A residential property owner awarded a grant under this chapter shall hire a contractor who meets the eligibility criteria contained in subsection (d).

(b) The department shall not endorse or otherwise provide preferential treatment to any contractor.

(c) A residential property owner shall be responsible for any amount owed to a contractor that exceeds the amount of a grant awarded under this chapter.

(d) A contractor eligible to work on a mitigation project under the program shall, at a minimum:

(1) Maintain accurate contact information and a current copy of all applicable certificates, licenses, and proof of insurance coverages with the department;

(2) Be free from all disciplinary action by the contractors license board;

(3) Be registered with the department of commerce and consumer affairs to do business in the State;

(4) Have an active general liability policy with $500,000 in liability coverage;

(5) Have workers' compensation and employer's liability insurance in accordance with and to the extent required by law;

(6) Agree to follow all procedures and rules for the program as established by the department;

(7) Report any potential conflict of interest to the department before any work commences;

(8) Not have an additional financial interest in any mitigation project awarded a grant under the program for which the contractor performs work besides the payment received by a residential property owner from the department; and

(9) Not make assessments for any mitigation project awarded a grant under the program.

§ -5 Assessor; eligibility. An assessor eligible to assess a mitigation project under the program shall, at a minimum:

(1) Maintain accurate contact information and a current copy of all applicable certificates, licenses, and proof of insurance coverages with the department;

(2) Be in good standing with and certified by the organization identified pursuant to section -2(d);

(3) Be registered with the department of commerce and consumer affairs to do business in the State;

(4) Agree to follow all procedures and rules for the program as established by the department;

(5) Report any potential conflict of interest to the department before any assessment commences;

(6) Not have a financial interest in any mitigation project awarded a grant under the program for which the assessor performs an assessment;

(7) Not be a contractor or a supplier of materials, products, or systems installed for any mitigation project awarded a grant under the program for which the assessor performs an assessment; and

(8) Not be the sales agent for any mitigation project awarded a grant under the program.

§ -6 Strengthen Hawaii homes revolving fund. (a) There is established in the state treasury the strengthen Hawaii homes revolving fund, into which shall be deposited:

(1) Federal grants and other types of federal funding;

(2) Donations and other types of funding from private, nonprofit, state, and county entities; and

(3) Appropriations made by the legislature to the fund.

(b) Moneys in the strengthen Hawaii homes revolving fund shall be used only for the purposes of this chapter.

§ -7 Reports. The department shall submit a report to the legislature no later than twenty days prior to the convening of each regular session. The report shall include but not be limited to:

(1) A list of all grant recipients, mitigation projects, contractors, and assessors related to the program;

(2) All revenues, expenditures, encumbrances, and ending balances of the strengthen Hawaii homes revolving fund; and

(3) Any findings and recommendations, including any proposed legislation;

provided that all confidential, personal, and proprietary information shall be redacted prior to submission."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of the strengthen Hawaii homes program and the strengthen Hawaii homes revolving fund.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2026.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3311
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII