HF4223

Purpose

This bill would modify and fund the Strengthen Minnesota Homes program. Its goal is to help homeowners retrofit insurable homes to meet program standards, improve energy efficiency or resilience, and link these upgrades to insurance benefits. The plan also prioritizes lower‑income households in determining who gets grants.

Main provisions and what the bill seeks to accomplish

• Grants for retrofit: A grant under this section must be used to retrofit an insurable property. The funds cannot be used for maintenance or general repairs, but they can be used if repairs or reconstruction are needed due to wind or hail damage.
• Timely completion: A project funded by a grant must be completed within three to six months of grant approval; failing to complete within the time frame can result in forfeiture of the grant.
• Certification to insurers: The commissioner must certify to the homeowner’s insurer that the property meets applicable program standards as a condition of receiving a grant.
• Premium discounts: Homeowners whose property meets program standards—whether they already met those standards before applying or never received a grant—may qualify for a premium discount rate reduction, or both (discount and grant). The program must confirm that the insurer provides these premium discounts pursuant to existing law.
• Eligibility preferences: Administrative procedures will be created to implement the program, including criteria for eligibility. There is a preference for households with income at or below 115% of the area median income (AMI) as determined by HUD.
• Funding and administration: The bill provides a one‑time appropriation of $35,000,000 in fiscal year 2026 from the general fund to the Strengthen Minnesota Homes account to issue grants and administer the program.

Significant changes to existing law

• Section 65A.299 subdivision 5 (amended): Expands how grant funds can be used (retrofit of insurable property) and adds certification to insurers that properties meet program standards; clarifies that properties with existing standards can still qualify for discounts.
• Section 65A.299 subdivision 6 (amended): Establishes administrative procedures and the eligibility criteria, including income‑based preferences (115% of AMI) for grant recipients.
• Funding change: Adds a one‑time appropriation of $35,000,000 in FY 2026 to support grants and program administration under the Strengthen Minnesota Homes program.

Funding and administration

• Onetime appropriation: $35,000,000 from the general fund in FY 2026.
• Purpose of funds: Issue grants and administer the Strengthen Minnesota Homes program.
• Administration: Requires administrative procedures and eligibility criteria to implement the program, with alignment to related sections (e.g., insurer premium discounts under 65A.298).

Timeline and accountability

• Project completion window: 3 to 6 months after grant approval.
• Conditions of grant: Potential forfeiture if the project is not completed in time.
• Certification requirement: The commissioner must certify to insurers that properties meet program standards.

Stakeholder impact

• Homeowners with insurable properties seeking retrofit grants and potential insurance premium discounts.
• Homeowners whose properties already meet program standards may still access premium discounts.
• Lower‑income households (≤115% AMI) are prioritized for grants.

Relevant Terms - Strengthen Minnesota Homes program - grant - retrofit - insurable property - program standards - wind or hail - premium discount rate reduction - homeowners insurance - insurer - Minnesota Statutes 65A.299 - 65A.298 - area median income (AMI) - HUD (United States Department of Housing and Urban Development) - income-based eligibility - general fund - one-time appropriation - administrative procedures - eligibility criteria - commissioner - forfeit/forfeiture - credit/discount for premiums