Homeowner grant programs

(a) In general State agencies receiving a loan from a revolving loan fund established under section 4 of this Act shall establish a homeowner grant program for the installation of FORTIFIED Roofs, or improvements made to meet the FORTIFIED Home or Wildfire Prepared Home designation, and may only use such loan funds to make grants under such program. (b) Eligibility Under the program established pursuant to subsection (a), State agencies shall determine eligibility for grants under the program provided it follows the following criteria: (1) Primary Residence and Homestead Exemption The dwelling shall be the homeowner's primary residence and shall be subject to a State or local homestead exemption, owner-occupancy tax classification, or equivalent designation under State law. Where no such State mechanism exists, the homeowner shall provide alternative documentation of owner-occupancy as prescribed by the Administrator. (2) Proof of wind coverage For homeowners seeking Fortified Home designation, the homeowner shall provide proof of an in-force residential property insurance policy including wind peril coverage, valid through the projected date of project completion. A State agency may establish eligibility criteria for homeowners who are not insured at the time of application if the homeowner demonstrates that the proposed mitigation project is reasonably intended to improve the insurability or affordability of coverage for the dwelling following project completion. (3) Proof of flood coverage in special flood hazard areas If the dwelling is located within a Special Flood Hazard Area as designated by the Federal Emergency Management Agency, the homeowner shall also provide proof of an in-force flood insurance policy, issued under the National Flood Insurance Program or a qualifying private policy under 42 U.S.C. 4012a(b), valid through the projected date of project completion. (4) Proof of Fire Coverage in Wildfire Hazard Areas For applications seeking a Wildfire Prepared Home designation, if the dwelling is located within a designated Wildfire Hazard Area under applicable State or Federal mapping, the homeowner shall provide proof of an in-force residential property insurance policy including fire peril coverage, valid through the projected date of project completion. A State agency may establish eligibility criteria for homeowners who are not insured at the time of application if the homeowner demonstrates that the proposed mitigation project is reasonably intended to improve the insurability or affordability of coverage for the dwelling following project completion. (5) Dwelling condition The dwelling shall be in a condition permitting completion of the proposed mitigation work to the applicable designation standard, as determined by a certified evaluator. A dwelling damaged by a covered weather event may remain eligible if the evaluator determines it is otherwise suitable for the proposed work. (6) No duplicate funding The homeowner shall certify and disclose any prior Federal, State, or local grant or subsidy received for the same scope of work. Grant funds under this Act shall not duplicate prior funding for the same improvements. The Administrator shall establish rules governing the permissible use of grant funds to supplement insurance claim proceeds. (7) Ineligible dwellings New construction homes, condominiums, and mobile homes are not eligible to participate in the program. (8) Eligibility criteria A State agency may establish eligibility criteria for homeowners who are not insured at the time of application if the homeowner demonstrates that the proposed mitigation project is reasonably intended to improve the insurability or affordability of coverage for the dwelling following project completion. (9) Prioritization States may give priority to lower-income applicants, applicants who live in locations that, based on historical data, have a higher susceptibility to catastrophic weather events, and applicants meeting any other criteria the State agency determines is appropriate to meet the purpose of the program. (c) Grant amounts The amount of a grant under a program established pursuant to subsection (a) may cover the specific construction upgrades, including labor and materials, for a Fortified Roof, Fortified Home, or Wildfire Prepared Home project up to a State agency set-cap, which may not be more than $10,000. (d) Procurement and certification All work done using a grant made by a loan under this section shall be performed by a qualified contractor and verified by a qualified evaluator under the applicable Fortified Roof, Fortified Home, or Wildfire Prepared Home program. (e) Forgiveness of certain amounts As a condition for establishing a revolving loan fund under section 4, the State agency shall forgive the repayment or cost-share obligation, if any, of any grant made pursuant to this section for a Fortified Roof, Fortified Home, or Wildfire Prepared Home project for an individual homeowner that has an income below 120 percent of the area median income.