Roofers across Louisiana have had a front-row seat to the state's push for fortified roofs. Now there's another $20 million on the way, and it's coming out of a program that helps build apartments.
On Monday, Sept. 21, Gov. Jeff Landry confirmed that $20 million in federal funds set aside for affordable housing will go to fortified roof improvements instead. As the Louisiana Illuminator reported, the money comes from the Piggyback Resilience Initiative Mixed-Income, or PRIME, program, run by the Louisiana Housing Corp. PRIME money has previously helped build more than 4,100 apartments in the state.
Landry made the announcement at the Louisiana Department of Insurance with Insurance Commissioner Tim Temple and state Sen. Kirk Talbot, R-River Ridge, who chairs the Senate Insurance Committee.
A new program: Restore ROOF
The $20 million will go to a new program called Restore Resilient Opportunities for Overhead Fortification, or Restore ROOF. It will be run by the state Office of Community Development, which handles the federal money in question.
Landry said Restore ROOF grants will cover the entire cost of new roofs. The money has to go to homes affected by the 2020-21 hurricanes, according to the Illuminator, and the administration said it would share more about which storms qualify later.
"That's going to be a grant program that if you're in a qualified area, you have to have a home that was damaged inside of one of those hurricane-affected areas, you can apply for that particular grant and get a brand new roof," Landry said, according to Biz New Orleans.
Restore ROOF will be separate from the insurance department's Louisiana Fortify Homes Program, so homeowners won't apply through Fortify Homes. Biz New Orleans reported that eligibility rules, application dates and details on how to apply have not been announced yet. Landry said the program will start immediately, with more information on how to apply available soon through the Office of Community Development.
$100 million for roofs this year
With the new money, the state has committed $100 million to roof improvements so far this year, according to both outlets. The insurance department will keep handing out grants from the $80 million already set aside for Fortify Homes, which gives homeowners up to $10,000 each to build or replace roofs to a higher standard. Earlier this year, lawmakers passed legislation letting Louisiana Citizens Property Insurance Corp. move another $50 million to Fortify Homes, Biz New Orleans reported.
Those grants usually don't cover the whole job. The Illuminator cited a Legislative Auditor's report last year that found Fortify Homes grant recipients paid an average of more than $6,200 out of pocket for their roofs. Recipients also reported a median 22% drop in their homeowner's insurance premiums. Temple said earlier this year that Fortify Homes is expected to reach 13,000 roof upgrades once this year's $80 million is awarded.
"Building stronger homes is a vital part of making homeowners insurance affordable in Louisiana," Temple said, according to Biz New Orleans.
Not everyone is happy about where the money came from. When asked why the affordable housing money was being redirected, Landry said lowering insurance costs with fortified roofs is a top priority.
"There are many other programs under which we can get affordable apartments," Landry said. "When we start employing that money in a fortified roof program, we start to reduce the overall premiums in that area."
Andreanecia Morris, executive director of HousingNOLA, a coalition of affordable housing developers and advocates, disagreed. "A lot of them have huge waiting lists. By no measure is any program that is creating affordable rentals meeting the need," she told the Illuminator.
Why it matters for Contractors
For roofing contractors, Restore ROOF could be a meaningful new source of work. Unlike Fortify Homes, which caps grants at $10,000 and usually leaves homeowners paying part of the bill, Restore ROOF is meant to pay for the whole roof, which could bring in homeowners who couldn't afford their share before. Roofers who already do fortified work should watch the Office of Community Development for program rules, since eligibility, application dates and contractor requirements haven't been announced. With $80 million still flowing through Fortify Homes and about 13,000 roofs expected, fortified roofing should keep crews busy for a while. On the other side, multifamily builders and affordable housing developers lose $20 million from a program that has helped build more than 4,100 apartments, which leaves less money for that kind of work.