The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Banking and Insurance
BILL: SPB 7028
INTRODUCER: For consideration by the Banking and Insurance Committee
SUBJECT: My Safe Florida Home Program
DATE: January 12, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Thomas Knudson Pre-meeting
2.
3.
I. Summary:
SPB 0000 amends s. 215.5586. F.S., relating to the My Safe Florida Home (MSFH) Program to:
Allow a subsequent application for a mitigation inspection or mitigation grant only under
certain circumstances;
Authorize the Department of Financial Services (DFS) to request additional information from
the applicant if the application contains apparent errors or omissions;
Provide that an applicant meeting the requirements for a mitigation inspection may receive
an inspection even if the applicant is not eligible for a mitigation grant or the applicant does
not apply for such grant;
Require the homeowner to agree to provide information received from the homeowner’s
insurer identifying the premium discounts realized by the homeowner due to the mitigation
improvements funded through the program;
Provide that the DFS will not maintain a list of participating contractors, but rather, the
homeowner must use a properly licensed contractor for the project;
Revise the list grant eligible improvements to specify the inclusion of windows and
skylights;
Require the DFS to prioritize applications for the first 60 days it accepts inspection
applications and grant applications following an appropriation based on the following:
First, applications from low-income homeowners who are at least 60 years old;
Second, applications from all other low-income homeowners;
Third, applications from moderate-income homeowners who are at least 60 years old;
Fourth, applications from all other moderate-income homeowners; and
Lastly, all other applications;
Revise provisions regarding the distribution of the MSFH Program brochure which provides
information on the benefits to homeowners of residential hurricane damage mitigation; and
Reorganize and rephrase certain provisions within the statute to provide better clarity.
REVISED: BILL: SPB 7028 Page 2
The bill appropriates, for the 2024-2025 fiscal year, $100 million in nonrecurring funds from the
General Revenue Fund to the Department of Financial Services to provide mitigation grants
under the MSFH Program and $7 million for administrative costs related to implementation.
The bill provides an effective date of July 1, 2024.
II. Present Situation:
My Safe Florida Home Program
Background
Following the 2004 and 2005 hurricane seasons, where 2.8 million Florida homeowners suffered
more than $33 billion in insured property damage,
1
86 percent of the 4.4 million homes in
Florida were built prior to the adoption of stronger building codes in 2002, and the average age
of a home was 26 years, Florida began to experience a decline in the availability of property
insurance and an increase in its cost.
2
In 2006, the Legislature created the My Safe Florida Home
(MSFH) Program
3
within the Department of Financial Services (DFS).
4
The original
appropriation for the program was $250 million for a period not to exceed three years with any
unused appropriated funds reverting to the General Revenue Fund on June 30, 2009.
5
The MSFH Program was created with the intent to provide trained and certified inspectors to
perform mitigation inspections for owners of site-built, single-family, residential properties
(mitigation inspections), and mitigation grants to eligible applicants, subject to the availability of
funds.
6
The Program was to “develop and implement a comprehensive and coordinated approach
for hurricane damage mitigation…”
7
The Program allowed the DFS to undertake a public
outreach and advertising campaign to inform consumers of the availability and benefits of the
mitigation inspections and grants.
8
From its inception to January 30, 2009, the MSFH Program
received approximately 425,193 applications, performed more than 391,000 inspections and
awarded 39,000 grants. From July 2007 through January 2009, MSFH Program expenditures
totaled approximately $151.9 million.
9
Funding for the program ceased on June 30, 2009.
10
The DFS requested Risk Management Solutions (RMS) to conduct an impact analysis of the
MSFH Program. RMS released a report of the impact analysis of the Program on May 14, 2009
1
Department of Financial Services, My Safe Florida Home, 2008 Annual Report (Feb. 2009) (on file with Senate Committee
on Banking and Insurance).
2
Id.
3
Id.
4
The Legislature initially established the program as the Florida Comprehensive Hurricane Damage Mitigation Program
(ch. 2006-12, L.O.F.) however, the name was subsequently changed in 2007 (ch. 2007-126, L.O.F.).
5
Chapter 2006-12 L.O.F.
6
Section 215.5586, F.S.
7
Id.
8
Section 215.5586(3), F.S.
9
Florida Auditor General, Department of Financial Services, My Safe Florida Home Program, Operational Audit Report
No. 2010-074 (Jan. 1010), available at https://flauditor.gov (last visited January 8, 2024).
10
Department of Financial Services, My Safe Florida Home, 2008 Annual Report (Feb. 2009) (on file with Senate Committee
on Banking and Insurance). BILL: SPB 7028 Page 3
(report).
11
In the report, RMS concluded program grants were beneficial to the State of Florida,
individual homeowners, and the insurance industry.
12
RMS indicated the predicted reduction in
loss as a result of the grant projects completed far exceeded the grant money spent.
13
The MSFH
Program was never repealed from law and additional funding was not provided until May 2022.
2022 Renewal and Funding of the MSFH Program
In May 2022, during Special Session 2022-D, and under a property insurance bill (SB 2-D), the
Legislature reestablished the MSFH Program within the DFS to provide financial incentives for
Florida residential property owners to obtain free home inspections which identify mitigation
measures and provide mitigation grants to retrofit such properties, thereby reducing their
vulnerability to hurricane damage and helping decrease the cost of residential property
insurance.
14
To implement the renewed MSFH Program, $150 million in nonrecurring funds from the
General Revenue Fund was appropriated to the DFS. The funds were designated for the
following purposes:
$25 million for hurricane mitigation inspections;
$115 million for hurricane mitigation grants;
Four million dollars for education and consumer awareness;
One million dollars for public outreach to contractors, real estate brokers, and sales
associates; and
Five million dollars for administrative costs.
15
2023 Legislation and Funding of the MSFH Program
During the 2023 Regular Legislative Session, HB 881 was passed making additional changes to
the MSFH program. The bill:
Provided the MSFH Program may select as a mitigation inspector a licensed home inspector
who has completed certain training;
Provided an inspection under the MSFH Program may only be done on a property for which
a homestead exemption has been granted;
Revised eligibility requirements for mitigation inspections to include townhouses to
determine if opening protection mitigation would provide improvements to mitigate
hurricane damage;
Revised eligibility requirements for mitigation grants to include dwellings with an insured
value of $700,000 or less (up from $500,000 or less) and for opening protection for
townhouses when recommended by a hurricane mitigation inspection;
Deleted the requirement a property eligible for a mitigation grant must be located in the
“wind-borne debris region;”
11
Risk Management Solutions, Analyzing the Effects of the My Safe Florida Home Program on Florida Insurance Risk,
(May 14, 2009), available at https://www.ipcc (last visited January 8, 2024).
12
Id.
13
Id.
14
Section 3, ch. 2022-268, L.O.F.
15
Section 4, ch. 2022-268, L.O.F. BILL: SPB 7028 Page 4
Increased the amount, from $5,000 to $10,000, low-income homeowners may receive from a
grant and not have to provide a matching amount;
Added the Citizens Property Insurance Corporation to the list of entities that may receive
Program brochures for redistribution;
Deleted the requirement contracts valued at one million dollars or more entered into by the
Program be reviewed and approved by the Legislative Budget Commission; and
Required the DFS to develop a quality assurance and reinspection program.
Also, during the 2023 Regular Legislative Session, the Legislature appropriated an additional
$100 million for mitigation grants and $2,065,000 for operations and administration costs.
16
During Special Session 2023-C, HB 1-C
17
was passed, which included provisions relating to the
MSFH Program. The bill:
Appropriated $176,170,000 in nonrecurring general revenue for the backlog of 17,617
mitigation grant applications that had been submitted and awaiting funding;
Appropriated $5,285,100 in nonrecurring general revenue for administrative costs related to
the processing of mitigation grants; and
Prohibited the DFS from continuing to accept applications or to create a waiting list in
anticipation of additional funding absent express authority from the Legislature.
Hurricane Mitigation Inspections
The MSFH Program provides licensed inspectors to perform inspections for owners of site-built,
single-family, residential properties, for which a homestead exemption has been granted, to
determine what mitigation measures are needed, what insurance premium discounts may be
available, and what improvements to existing residential properties are needed to reduce the
property’s vulnerability to hurricane damage. A townhouse as defined in s. 481.203, F.S.,18 for
which a homestead exemption has been granted, may qualify to receive a mitigation inspection
to determine if opening protection19 mitigation would provide improvements to mitigate
hurricane damage. The mitigation inspections must include, at a minimum:
A home inspection and report that summarizes the results and identifies recommended
improvements a homeowner may take to mitigate hurricane damage;
A range of cost estimates regarding the recommended mitigation improvements; and
Information regarding estimated premium discounts, correlated to the current mitigation
features and the recommended mitigation improvements identified by the inspection.
20
The DFS is authorized to contract with “wind certification entities” as vendors to provide such
inspections. Each wind certification entity must, at a minimum, meet the following requirements:
Use hurricane mitigation inspectors who are licensed or certified as:
o A building inspector under s. 468.607, F.S.;
o A general, building, or residential contractor under s. 489.111, F.S.;
16
SB 2500 (2023); Specific Appropriations 2368A & 2368B, ch. 2023-239, Laws of Fla.
17
Chapter 2023-349, L.O.F.
18
“Townhouse” generally means “a single-family dwelling unit not exceeding three stories in height which is constructed in
a series or group of attached units with property lines separating such units.” Section 481.203(16), F.S.
19
Opening protection includes windows, exterior doors, and garage doors. See s. 215.5586(2)(e), F.S.
20
Section 215.5586(1)(a), F.S. BILL: SPB 7028 Page 5
o A professional engineer under s. 471.015, F.S.;
o A professional architect under s. 481.213, F.S.; or
o A home inspector under s. 468.8314 and who have completed at least 3 hours of
hurricane mitigation training approved by the Construction Industry Licensing Board,
which training must include hurricane mitigation techniques, compliance with the
uniform mitigation verification form, and completion of a proficiency exam.
Use hurricane mitigation inspectors who have also undergone drug testing and a background
screening.
Provide a quality assurance program that includes a reinspection component.
21
Hurricane Mitigation Grants
The homeowner eligibility requirements for the mitigation grants are:
The homeowner must have been granted a homestead exemption on the home;
The home must be a dwelling with an insured value of $700,000 or less. Low-income
homeowners are exempt from this requirement;
The home must have undergone an acceptable hurricane mitigation inspection;
The building permit for the initial construction of the home must have been made before
January 1, 2008; and
The homeowner must agree to make the home available for inspection upon completion of
the mitigation project.
22
MSFH Program grants must be matched on the basis of one dollar provided by the applicant for
two dollars provided by the state, up to a maximum state contribution of $10,000 toward the
actual cost of the mitigation project.
23
Low-income homeowners may receive up to $10,000 in
grant funds without providing matching dollars.
24
Program Transparency Requirements
The DFS must submit an annual report of MSFH Program activities to the President of the
Senate and the Speaker of the House of Representatives by February 1 of each year. The report
must indicate the number of inspections requested, the number of inspections performed, the
number of grant applications received, the number and value of grants approved, the estimated
average annual amount of insurance premium discounts and the total estimated amount of such
discounts homeowners received from insurers resulting from the mitigation funded through the
Program.
25
MSFH Program Implementation
Following the passage of SB 2-D in 2022, the DFS procured a vendor to administer the program.
A second solicitation was issued for vendors who could conduct the required home inspections
for the program. A third solicitation was issued to enlist contractors who would agree to
participate in the program and be placed on a list for homeowners to choose from to complete
21
Section 215.5586(1)(b), F.S.
22
Section 215.5586(2)(a), F.S.
23
Section 215.5586(2)(b), F.S.
24
Section 215.5586(2)(g), F.S.
25
Section 215.5586(9), F.S. BILL: SPB 7028 Page 6
mitigation work on their home.
26
The DFS compiled a list of approved vendors homeowners
participating in the MSFH Program could choose for mitigation inspections and mitigation
work.
27
On November 18, 2022, a web-based application for homeowners to request mitigation
inspections and mitigation grant funds went live.
28
As of November 28, 2023, the MSFH Program has disbursed $35,784,376, $181,060,000 has
been obligated but has not yet been disbursed, with $174,320,000 remaining unobligated. The
remaining $174,320,000 is sufficient funding to eliminate the existing backlog of grant
applications.
29
MSFH Program Statistics
30
Inspections:
91,627 home inspections have been completed.
9,268 home inspections are either scheduled or are in the process of being scheduled.
Grants:
21,540 grants have been approved.
Over $216.8 million has been obligated to homeowners who are in various stages of
completing work on their homes
17,617 grant applications have been submitted and await funding.
Reimbursements:
3,897 Homeowners have been sent a check for their grant reimbursements.
Average disbursement is $9,183 per homeowner.
Total disbursements: $35,784,376
Insurance Premium Discounts Tracked:
Of the 3,897 homeowners who have completed the process, 1,928 have reported an insurance
premium discount.
Average discount of those reporting is $981.
31
26
Florida Department of Financial Services, Senate Bill 748 Agency Analysis (Mar. 3, 2023) (on file with Senate Banking
and Insurance Committee.)
27
Id.
28
Id.
29
Email from Parker Powell, Deputy Director of Legislative Affairs, Department of Financial Services, RE: MSFH Program
(Nov. 29, 2023).
30
Id.
31
The discount information typically comes in one of two forms:
1. The homeowner provides a declarations page with the cost of their insurance pre-construction and then an updated
declarations page post construction. In this case, the Program will net the two numbers against each other to determine a
savings.
2. The homeowner provides an email or other communication from their insurance agent/company stating exactly what the
discount will be to their premium based on the work done on the home. BILL: SPB 7028 Page 7
III. Effect of Proposed Changes:
Section 1 amends s. 215.5586. F.S., relating to the My Safe Florida Home Program to generally
reorganize and rephrase certain portions of s. 215.5586, F.S., to provide better clarity.
The bill revises the inspection and grant application process and the eligibility criteria for
inspections, as it:
Allows a subsequent application for a mitigation inspection or mitigation grant if:
o The original application was denied or withdrawn because of errors or omissions;
o The original application was denied or withdrawn because the home did not meet the
eligibility criteria at the time of the prior application and the homeowner reasonably
believes that home now is eligible for an inspection or grant; or
o The program's eligibility requirements have changed since the original application date
and the applicant reasonably believes that the home is eligible under the new eligibility
requirements;
Authorizes the DFS to request additional information if the application contains apparent
errors or omissions; the application is to be considered withdrawn if the DFS does not
receive a response to its request within 60 days;
Provides that an applicant meeting the requirements for a mitigation inspection may receive
an inspection of a home even if the applicant is not eligible for a hurricane mitigation grant
or the applicant does not apply for such grant; and
Requires the homeowner to agree to provide information received from the homeowner’s
insurer identifying the premium discounts realized by the homeowner due to the mitigation
improvements funded through the program.
The bill provides that the DFS will not maintain a list of participating contractors, but rather, the
homeowner must use a properly licensed contractor for the mitigation project.
The bill revises the criteria for eligible improvements to:
Include within improvements to “opening protection,” exterior doors, garage doors,
windows, and skylights;
Clarify language authorizing projects for a “secondary water barrier” for a roof to instead
refer to a secondary water “resistance” barrier for a roof.
The bill requires the DFS to prioritize applications for the first 60 days it accepts inspection
applications and grant applications after any legislative appropriation funding inspections and
grants based on the following:
First, applications from low-income homeowners, as defined in s. 420.0004(11), F.S.,
32
who
are at least 60 years old;
32
Section 420.0004(11), F.S., defines “Low-income persons” to mean “one or more natural persons or a family, the total
annual adjusted gross household income of which does not exceed 80 percent of the median annual adjusted gross income for
households within the state, or 80 percent of the median annual adjusted gross income for households within the metropolitan
statistical area (MSA) or, if not within an MSA, within the county in which the person or family resides, whichever is
greater.” Section 420.0004(2), F.S., defines “Adjusted gross income” to mean “all wages, assets, regular cash or noncash
contributions or gifts from persons outside the household, and such other resources and benefits as may be determined to be
income by the United States Department of Housing and Urban Development, adjusted for family size, less deductions
allowable under s. 62 of the Internal Revenue Code.” BILL: SPB 7028 Page 8
Second, applications from all other low-income homeowners, as defined in s. 420.0004(11),
F.S.;
Third, applications from moderate-income homeowners, as defined in s. 420.0004(12),
F.S.,
33
who are at least 60 years old and are not low-income homeowners;
Fourth, applications from all other moderate-income homeowners, as defined in s.
420.0004(12), F.S., who are not low-income homeowners; and
Lastly, all other applications.
The bill requires, rather than encourages, the Citizens Property Insurance Corporation to
distribute to its policyholders the MSFH Program brochure which provides information on the
benefits to homeowners of residential hurricane damage mitigation. The bill removes existing
language that encourages contractors and real estate licensees to distribute the brochure.
Section 2 appropriates to the Department of Financial Services, for the 2024-2025 fiscal year,
$100 million to provide mitigation grants under the MSFH Program and $7 million for
administrative costs related to implementation. The appropriated funds are nonrecurring funds
from the General Revenue Fund.
The effective date of the bill is July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
33
Section 420.0004(12), F.S., defines “Moderate-income persons” to mean “one or more natural persons or a family, the total
annual adjusted gross household income of which is less than 120 percent of the median annual adjusted gross income for
households within the state, or 120 percent of the median annual adjusted gross income for households within the
metropolitan statistical area (MSA) or, if not within an MSA, within the county in which the person or family resides,
whichever is greater.” BILL: SPB 7028 Page 9
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The bill increases the funds available for the MSFH Program, making it possible for more
homes to be granted mitigation grants. Homeowners that complete mitigation projects
funded by the MSFH Program will receive mitigation credits that reduce the cost of their
property insurance.
C. Government Sector Impact:
The bill appropriates to the Department of Financial Services, for the 2024-2025 fiscal
year, $100 million to provide mitigation grants under the MSFH Program and $7 million
for administrative costs related to implementation. The appropriated funds are
nonrecurring funds from the General Revenue Fund.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following section of the Florida Statutes: 215.5586.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.