RELATING TO THE STRENGTHEN HAWAII HOMES PROGRAM.

SB3311

THE SENATE

S.B. NO.

3311

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the strengthen hawaii homes program
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
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

���������
(C)
�
Pay
the fee for the assessor;

����
(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

���������
(C)
�
Certify
the mitigation project has achieved the standard approved by the department.

����
(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:

_____________________________

Report Title:

DLNR;
Strengthen Hawaii Homes Program; Fire Mitigation; Grants; Rules; Single-Family
Homes; Long-Term Rental Properties; Residential Property Owners; Insurance; Contractors;
Assessors; Mitigation Projects; Strengthen Hawaii Homes Revolving Fund; Report;
Appropriation

Description:

Establishes
the Strengthen Hawaii Homes Program under the Department of Land and Natural
Resources to award grants for qualified mitigation projects to mitigate against
loss from fire.
�
Provides eligibility
criteria for residential property owners to receive grants and guidelines for
contractors and assessors to perform work on mitigation projects.
�
Establishes the Strengthen Hawaii Homes
Revolving Fund.
�
Requires annual reports
to the Legislature.
�
Appropriates funds.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.