HB 359

1	A bill to be entitled
2	An act relating to the My Safe Florida Home Program;
3	amending s. 215.5586, F.S.; authorizing condominium unit
4	owners to apply for program grants to retrofit their
5	properties to make them less vulnerable to hurricane
6	damage; providing funding; providing additional
7	legislative intent; providing an effective date.
8
9	Be It Enacted by the Legislature of the State of Florida:
10
11	Section 1.  Section 215.5586, Florida Statutes, is amended
12	to read:
13	215.5586  My Safe Florida Home Program.--There is
14	established within the Department of Financial Services the My
15	Safe Florida Home Program. The department shall provide fiscal
16	accountability, contract management, and strategic leadership
17	for the program, consistent with this section. This section does
18	not create an entitlement for property owners or obligate the
19	state in any way to fund the inspection or retrofitting of
20	residential property in this state. Implementation of this
21	program is subject to annual legislative appropriations. It is
22	the intent of the Legislature that the My Safe Florida Home
23	Program provide inspections for at least 400,000 site-built,
24	single-family, residential properties and provide grants to at
25	least 35,000 applicants before June 30, 2009. It is the intent
26	of the Legislature that the My Safe Florida Home Program provide
27	grants for as many condominium unit applicants as funding will
28	allow before June 30, 2011. The program shall develop and
29	implement a comprehensive and coordinated approach for hurricane
30	damage mitigation that shall include the following:
31	(1)  HURRICANE MITIGATION INSPECTIONS.--
32	(a)  Free home-retrofit inspections of site-built, single-
33	family, residential property shall be offered throughout the
34	state to determine what mitigation measures are needed, what
35	insurance premium discounts may be available, and what
36	improvements to existing residential properties are needed to
37	reduce the property's vulnerability to hurricane damage. The
38	Department of Financial Services shall contract with wind
39	certification entities to provide free hurricane mitigation
40	inspections. The inspections provided to homeowners, at a
41	minimum, must include:
42	1.  A home inspection and report that summarizes the
43	results and identifies recommended improvements a homeowner may
44	take to mitigate hurricane damage.
45	2.  A range of cost estimates regarding the recommended
46	mitigation improvements.
47	3.  Insurer-specific information regarding premium
48	discounts correlated to the current mitigation features and the
49	recommended mitigation improvements identified by the
50	inspection.
51	4.  A hurricane resistance rating scale specifying the
52	home's current as well as projected wind resistance
53	capabilities. As soon as practical, the rating scale must be the
54	uniform home grading scale adopted by the Financial Services
55	Commission pursuant to s. 215.55865.
56	(b)  To qualify for selection by the department as a wind
57	certification entity to provide hurricane mitigation
58	inspections, the entity shall, at a minimum, meet the following
59	requirements:
60	1.  Use hurricane mitigation inspectors who:
61	a.  Are certified as a building inspector under s. 468.607;
62	b.  Are licensed as a general or residential contractor
63	under s. 489.111;
64	c.  Are licensed as a professional engineer under s.
65	471.015 and who have passed the appropriate equivalency test of
66	the Building Code Training Program as required by s. 553.841;
67	d.  Are licensed as a professional architect under s.
68	481.213; or
69	e.  Have at least 2 years of experience in residential
70	construction or residential building inspection and have
71	received specialized training in hurricane mitigation
72	procedures. Such training may be provided by a class offered
73	online or in person.
74	2.  Use hurricane mitigation inspectors who also:
75	a.  Have undergone drug testing and level 2 background
76	checks pursuant to s. 435.04. The department may conduct
77	criminal record checks of inspectors used by wind certification
78	entities. Inspectors must submit a set of the fingerprints to
79	the department for state and national criminal history checks
80	and must pay the fingerprint processing fee set forth in s.
81	624.501. The fingerprints shall be sent by the department to the
82	Department of Law Enforcement and forwarded to the Federal
83	Bureau of Investigation for processing. The results shall be
84	returned to the department for screening. The fingerprints shall
85	be taken by a law enforcement agency, designated examination
86	center, or other department-approved entity; and
87	b.  Have been certified, in a manner satisfactory to the
88	department, to conduct the inspections.
89	3.  Provide a quality assurance program including a
90	reinspection component.
91	(c)  The department shall implement a quality assurance
92	program that includes a statistically valid number of
93	reinspections.
94	(d)  An application for an inspection must contain a signed
95	or electronically verified statement made under penalty of
96	perjury that the applicant has submitted only a single
97	application for that home.
98	(e)  The owner of a site-built, single-family, residential
99	property may apply for and receive an inspection without also
100	applying for a grant pursuant to subsection (2) and without
101	meeting the requirements of paragraph (2)(a).
102	(2)  MITIGATION GRANTS.--Financial grants shall be used to
103	encourage single-family, site-built, owner-occupied, residential
104	property owners, and condominium unit owners as defined in s.
105	718.103(28), to retrofit their properties to make them less
106	vulnerable to hurricane damage.
107	(a)  To be eligible for a grant for persons who have
108	obtained a completed inspection after May 1, 2007, a residential
109	property or condominium unit as defined in s. 718.103(27) must:
110	1.  Have been granted a homestead exemption under chapter
111	196.
112	2.  Be a dwelling with an insured value of $300,000 or
113	less. Homeowners who are low-income persons, as defined in s.
114	420.0004(10), are exempt from this requirement.
115	3.  Have undergone an acceptable hurricane mitigation
116	inspection.
117	4.  Be located in the "wind-borne debris region" as that
118	term is defined in s. 1609.2, International Building Code
119	(2006).
120	5.  Be a home for which the building permit application for
121	initial construction was made before March 1, 2002.
122
123	An application for a grant must contain a signed or
124	electronically verified statement made under penalty of perjury
125	that the applicant has submitted only a single application and
126	must have attached documents demonstrating the applicant meets
127	the requirements of this paragraph.
128	(b)  All grants must be matched on a dollar-for-dollar
129	basis for a total of $10,000 for the actual cost of the
130	mitigation project with the state's contribution not to exceed
131	$5,000.
132	(c)  The program shall create a process in which
133	contractors agree to participate and homeowners select from a
134	list of participating contractors. All mitigation must be based
135	upon the securing of all required local permits and inspections
136	and must be performed by properly licensed contractors.
137	Mitigation projects are subject to random reinspection of up to
138	at least 5 percent of all projects. Hurricane mitigation
139	inspectors qualifying for the program may also participate as
140	mitigation contractors as long as the inspectors meet the
141	department's qualifications and certification requirements for
142	mitigation contractors.
143	(d)  Matching fund grants shall also be made available to
144	local governments and nonprofit entities for projects that will
145	reduce hurricane damage to single-family, site-built, owner-
146	occupied, residential property and to condominium units meeting
147	the criteria described in paragraph (a). The department shall
148	liberally construe those requirements in favor of availing the
149	state of the opportunity to leverage funding for the My Safe
150	Florida Home Program with other sources of funding.
151	(e)  When recommended by a hurricane mitigation inspection,
152	grants may be used for the following improvements only:
153	1.  Opening protection.
154	2.  Exterior doors, including garage doors.
155	3.  Brace gable ends.
156
157	The department may require that improvements be made to all
158	openings, including exterior doors and garage doors, as a
159	condition of reimbursing a homeowner approved for a grant.
160	(f)  Grants may be used on a previously inspected existing
161	structure or on a rebuild. A rebuild is defined as a site-built,
162	single-family dwelling under construction to replace a home that
163	was destroyed or significantly damaged by a hurricane and deemed
164	unlivable by a regulatory authority. The homeowner must be a
165	low-income homeowner as defined in paragraph (g), must have had
166	a homestead exemption for that home prior to the hurricane, and
167	must be intending to rebuild the home as that homeowner's
168	homestead.
169	(g)  Low-income homeowners, as defined in s. 420.0004(10),
170	who otherwise meet the requirements of paragraphs (a), (c), (e),
171	and (f) are eligible for a grant of up to $5,000 and are not
172	required to provide a matching amount to receive the grant.
173	Additionally, for low-income homeowners, grant funding may be
174	used for repair to existing structures leading to any of the
175	mitigation improvements provided in paragraph (e), limited to 20
176	percent of the grant value. The program may accept a
177	certification directly from a low-income homeowner that the
178	homeowner meets the requirements of s. 420.0004(10) if the
179	homeowner provides such certification in a signed or
180	electronically verified statement made under penalty of perjury.
181	(h)  The department shall establish objective, reasonable
182	criteria for prioritizing grant applications, consistent with
183	the requirements of this section.
184	(i)  The department shall develop a process that ensures
185	the most efficient means to collect and verify grant
186	applications to determine eligibility and may direct hurricane
187	mitigation inspectors to collect and verify grant application
188	information or use the Internet or other electronic means to
189	collect information and determine eligibility.
190	(3)  EDUCATION AND CONSUMER AWARENESS.--The department may
191	undertake a statewide multimedia public outreach and advertising
192	campaign to inform consumers of the availability and benefits of
193	hurricane inspections and of the safety and financial benefits
194	of residential hurricane damage mitigation. The department may
195	seek out and use local, state, federal, and private funds to
196	support the campaign.
197	(4)  ADVISORY COUNCIL.--There is created an advisory
198	council to provide advice and assistance to the department
199	regarding administration of the program. The advisory council
200	shall consist of:
201	(a)  A representative of lending institutions, selected by
202	the Financial Services Commission from a list of at least three
203	persons recommended by the Florida Bankers Association.
204	(b)  A representative of residential property insurers,
205	selected by the Financial Services Commission from a list of at
206	least three persons recommended by the Florida Insurance
207	Council.
208	(c)  A representative of home builders, selected by the
209	Financial Services Commission from a list of at least three
210	persons recommended by the Florida Home Builders Association.
211	(d)  A faculty member of a state university, selected by
212	the Financial Services Commission, who is an expert in
213	hurricane-resistant construction methodologies and materials.
214	(e)  Two members of the House of Representatives, selected
215	by the Speaker of the House of Representatives.
216	(f)  Two members of the Senate, selected by the President
217	of the Senate.
218	(g)  The Chief Executive Officer of the Federal Alliance
219	for Safe Homes, Inc., or his or her designee.
220	(h)  The senior officer of the Florida Hurricane
221	Catastrophe Fund.
222	(i)  The executive director of Citizens Property Insurance
223	Corporation.
224	(j)  The director of the Division of Emergency Management
225	of the Department of Community Affairs.
226
227	Members appointed under paragraphs (a)-(d) shall serve at the
228	pleasure of the Financial Services Commission. Members appointed
229	under paragraphs (e) and (f) shall serve at the pleasure of the
230	appointing officer. All other members shall serve voting ex
231	officio. Members of the advisory council shall serve without
232	compensation but may receive reimbursement as provided in s.
233	112.061 for per diem and travel expenses incurred in the
234	performance of their official duties.
235	(5)  FUNDING.--
236	(a)  The department may seek out and leverage local, state,
237	federal, or private funds to enhance the financial resources of
238	the program.
239	(b)  Funding, not to exceed $10 million annually, shall be
240	provided from the Division of Florida Condominiums, Timeshares,
241	and Mobile Homes Trust Fund for grants for the retrofitting of
242	condominium units meeting the criteria described in paragraph
243	(2)(a).
244	(6)  RULES.--The Department of Financial Services shall
245	adopt rules pursuant to ss. 120.536(1) and 120.54 to govern the
246	program; implement the provisions of this section; including
247	rules governing hurricane mitigation inspections, mitigation
248	contractors, and training of inspectors and contractors; and
249	carry out the duties of the department under this section.
250	(7)  HURRICANE MITIGATION INSPECTOR LIST.--The department
251	shall develop and maintain as a public record a current list of
252	hurricane mitigation inspectors authorized to conduct hurricane
253	mitigation inspections pursuant to this section.
254	(8)  NO-INTEREST LOANS.--The department shall implement a
255	no-interest loan program by October 1, 2008, contingent upon the
256	selection of a qualified vendor and execution of a contract
257	acceptable to the department and the vendor. The department
258	shall enter into partnerships with the private sector to provide
259	loans to owners of site-built, single-family, residential
260	property to pay for mitigation measures listed in subsection
261	(2). A loan eligible for interest payments pursuant to this
262	subsection may be for a term of up to 3 years and cover up to
263	$5,000 in mitigation measures. The department shall pay the
264	creditor the market rate of interest using funds appropriated
265	for the My Safe Florida Home Program. In no case shall the
266	department pay more than the interest rate set by s. 687.03. To
267	be eligible for a loan, a loan applicant must first obtain a
268	home inspection and report that specifies what improvements are
269	needed to reduce the property's vulnerability to windstorm
270	damage pursuant to this section and meet loan underwriting
271	requirements set by the lender. The department shall set aside
272	$10 million from funds appropriated for the My Safe Florida Home
273	Program to implement this subsection. The department may adopt
274	rules pursuant to ss. 120.536(1) and 120.54 to implement this
275	subsection which may include eligibility criteria.
276	(9)  PUBLIC OUTREACH FOR CONTRACTORS AND REAL ESTATE
277	BROKERS AND SALES ASSOCIATES.--The program shall develop
278	brochures for distribution to general contractors, roofing
279	contractors, and real estate brokers and sales associates
280	licensed under part I of chapter 475 explaining the benefits to
281	homeowners of residential hurricane damage mitigation. The
282	program shall encourage contractors to distribute the brochures
283	to homeowners at the first meeting with a homeowner who is
284	considering contracting for home or roof repairs or contracting
285	for the construction of a new home. The program shall encourage
286	real estate brokers and sales associates licensed under part I
287	of chapter 475 to distribute the brochures to clients prior to
288	the purchase of a home. The brochures may be made available
289	electronically.
290	(10)  CONTRACT MANAGEMENT.--The department may contract
291	with third parties for grants management, inspection services,
292	contractor services for low-income homeowners, information
293	technology, educational outreach, and auditing services. Such
294	contracts shall be considered direct costs of the program and
295	shall not be subject to administrative cost limits, but
296	contracts valued at $500,000 or more shall be subject to review
297	and approval by the Legislative Budget Commission. The
298	department shall contract with providers that have a
299	demonstrated record of successful business operations in areas
300	directly related to the services to be provided and shall ensure
301	the highest accountability for use of state funds, consistent
302	with this section.
303	(11)  INTENT.--It is the intent of the Legislature that
304	grants made to residential property and condominium unit owners
305	under this section shall be considered disaster-relief
306	assistance within the meaning of s. 139 of the Internal Revenue
307	Code of 1986, as amended.
308	(12)  REPORTS.--The department shall make an annual report
309	on the activities of the program that shall account for the use
310	of state funds and indicate the number of inspections requested,
311	the number of inspections performed, the number of grant
312	applications received, and the number and value of grants
313	approved. The report shall be delivered to the President of the
314	Senate and the Speaker of the House of Representatives by
315	February 1 of each year.
316	Section 2.  This act shall take effect July 1, 2009.

CODING: Words stricken are deletions; words underlined are additions.