Lawmakers push permanent funding for Louisiana Fortified Homes program; debate over benchmarks, timing and whether to put discounts in statute

Committee members considered several related measures to stabilize and expand Louisiana's Fortified Homes program.

Representative Abare presented House Bill 329 to dedicate a package of insurance- and license-related revenues to the Fortified Homes grant program, including $5 million from surplus-lines, $5 million from property and casualty premium growth, and modest per-license and appointment fees; Representative Abare said the measures are projected to dedicate roughly $30 million for the program without drawing from the general fund.

Representative Henrys companion House Bill 441 would raise or redirect department fee allocations to fund the program.

Senator Plessis offered Senate Bill 222 to set a formal benchmark: insurers should provide a minimum 20% rate discount for homes that meet fortified-roof standards unless a company files an actuarial justification explaining why it cannot meet the benchmark. Plessis said the benchmark is modeled on other states and would give homeowners clearer incentive to fortify roofs so the state can reach the market "tipping point" where insurer reinsurance costs begin to decline.

Insurance Commissioner Tom Temple told the committee he supports putting more fortified roofs on homes but opposed codifying a statutory discount floor. Temple and department staff said the department prefers to set benchmarks and guidance administratively (bulletin or regulation) after a careful actuarial study; he warned a statutory mandate could deter carriers and suggested a bulletin or regulatory implementation would be a better path.

Advocates including the Greater New Orleans Housing Alliance and the Urban League urged immediate, legislative action because, they said, the Fortify program is moving but too slowly: at current rates Louisiana faces decades before reaching a saturation point an auditor estimated is needed to change reinsurance pricing dynamics. "We cannot wait until 2062," said Andronika Morris of the Greater New Orleans Housing Alliance. Supporters argued a statutory benchmark or a statutory funding stream would speed homeowner participation and private-market response.

The committee adopted Representative Abare's funding bill and Representative Henry's companion funding bill was reported favorably. Senator Plessis' benchmark measure generated intense debate and, when the committee took a recorded vote on advancing that bill, members were divided; the sponsor and supporters asked for the matter to remain under active discussion with the department and stakeholders before further floor action.

Lawmakers asked the department and stakeholders to pursue additional modeling and numerical audits to map how grant-driven fortified roof deployment, plus any statutory or administrative benchmark, would affect insurer pricing, reinsurance costs and household premiums.

The committee recorded the favorable reporting of the funding bill and said it would continue technical discussions on benchmarks and implementation approaches.