An article recently published in the newspaper reports on concerns that the Louisiana Fortify Homes Program may not be doing enough to directly assist underserved communities. I am writing to address those concerns and to explain what the LFHP was created and funded to accomplish.
Julie Shiyou-Woodard’s organization, Smart Home America, is currently under contract with the Louisiana Department of Insurance to develop and execute outreach efforts for the LFHP. While I welcome partnerships that can help us reach more lower-income families, that is not what the Legislature created the LFHP to accomplish.
The program is aimed at making our state more attractive to insurers by strengthening our housing inventory. In light of the severity of the property insurance crisis in our state, we distributed the available $30 million as quickly as possible on a first-come, first-served basis as required by the regulation governing the program. I made the decision to dedicate the first 1,500 of 3,000 total grants to Citizens policyholders, and I believe that decision is helping mostly lower and middle-income families who are struggling to afford the steepest rate increases in the state.
The program is on track and delivering as expected. Three thousand Louisiana homeowners have now qualified for grants of up to $10,000 to upgrade their roofs to the “fortified” standard, which will lead to thousands of other homeowners upgrading their roofs without a state grant. In Louisiana, insurers on average offer about a 20% rate discount for fortified roofs with Citizens offering 24%.
Smart Home America has developed a strong outreach program, and the LDI is prepared to develop relationships with nonprofits and broaden outreach efforts for the LFHP moving forward. The state has added $15 million to next year’s budget to continue the grant program. I firmly believe that if we build high enough and strong enough, we can live and work with 150 mph hurricanes making landfall on our coast from Grand Isle to Holly Beach.
JIM DONELON
outgoing insurance commissioner