Title 806 | Chapter 002 | Regulation 200REG
PROPOSED
This document is not yet current.
PUBLIC PROTECTION CABINET
Department of Insurance
Division of Property and Casualty Insurance
(New Administrative Regulation)
806 KAR 2:200.Operations, eligibility, and grant procedures for the Strengthen Kentucky Homes Program.
Section 1.
Definitions.(1)
"Applicant" means a real property owner seeking, or who has been approved for, a financial grant pursuant to KRS 304.2-450.(2)
"Commissioner" is defined by KRS 304.1-050(1).(3)
"Contractor" means a person certified to act as a contractor by IBHS and who is approved to work with the SKH program pursuant to 806 KAR 2:210.(4)
"Department" means the Kentucky Department of Insurance as defined in KRS 304.1-050(2).(5)
"Evaluator" means a person certified to act as an evaluator by IBHS and who is approved to work with the SKH program pursuant to 806 KAR 2:210.(6)
"IBHS" means the Insurance Institute for Business and Home Safety.(7)
"IBHS FORTIFIED Designation Certificate" means a certificate issued by IBHS upon successful completion of a FORTIFIED project.(8)
"Region" means a distinct geographic area designated for the purpose of fund allocation and grant award priority, and divided by area development districts established pursuant to KRS 147A.050.(9)
"Resident" means a person who resides in Kentucky for at least 181 days per calendar year.(10)
"SKH" means the Strengthen Kentucky Homes Program as established by KRS 304.2-450.Section 2.
Operations.(1)
SKH shall operate within the Property and Casualty Division of the Department.(2)
In accordance with KRS 304.2-450, the commissioner shall allocate monies held by the Strengthen Kentucky Homes Program Fund to the fifteen (15) different regions of the state in equal amounts.(3)
If a region fails to exhaust all funds allocated to that region due to an insufficient number of applicants, the commissioner may proportionally reallocate that region's funds to regions which have exhausted all previously allocated funds.(4)
The commissioner may establish special mitigation zones for the allocation of additional funds in any geographic area within the Commonwealth of Kentucky if:(a)
The Governor declares a state of emergency; or(b)
Additional funding is needed to mitigate areas which exhibit higher vulnerability to extreme weather events.Section 3.
Eligibility.(1)
To be eligible for an SKH grant:(a)
The applicant shall be:1.
The homeowner of the property to be mitigated; and2.
A resident of Kentucky;(b)
The property to be mitigated shall be:1.
Deemed eligible for mitigation as determined by an evaluator based on the requirements included in the PSI-1 form; and2.
An insurable, owner-occupied primary residence located in Kentucky and either:a.
A single-family home; orb.
A multifamily home.(2)
If the property to be mitigated is a multifamily residence, it shall:(a)
Be one singular structure; and(b)
Contain or be comprised of four (4) housing units or less.(3)
Applications submitted for properties with multiple owners must complete the AOC-1 form with signatures from all owners of the property.(4)
A single-family or multifamily structure is only eligible to receive one (1) SKH grant.(5)
The property to be mitigated may be a modular home but shall not be a condominium or mobile home.Section 4.
Application Process.(1)
The applicant shall submit a completed application via the SKH online portal at https://skh.doi.ky.gov.(2)
The applicant shall select an evaluator from the Department's SKH list of evaluators as prompted by the SKH website upon successful completion of an application and shall be responsible for paying the evaluator's charge for services.(3)
The evaluator shall:(a)
Examine the home to determine whether it is eligible for mitigation;(b)
Identify all improvements required to achieve IBHS Roof eligibility; and(c)
Report findings to the Department by submitting PSI-1 form to the SKH website.Section 5.
Approval of Grants and Process.(1)
The Department shall:(a)
Review all applications for completeness and determine if the applicant is eligible to receive grant funds;(b)
Verify the accuracy of the information on the application; and(c)
Approve applicants in the order received within a region who:1.
Meet all eligibility requirements set out in Section 3 of this administrative regulation;2.
Successfully submit a complete and verified application; and3.
Have a PSI-1 Form on file with the Department which finds the residence eligible for mitigation.(2)
Grants shall be awarded in the order that applications are approved within a region subject to availability of funds.(3)
The Department shall send notice to the applicant informing him or her of an approval or disapproval of the application.(4)
If approved, an applicant shall select at least one contractor from the Department's SKH list of contractors on the SKH website to request a bid for the mitigation work.(5)
Selected contractors shall utilize the BDS-1 form to electronically submit bid proposals via the SKH online portal at: https://skh.doi.ky.gov.(6)
Applicants who elect to proceed shall select a contractor of his or her choice from bids received and enter into an agreement with the contractor to perform the mitigation work. Contractors who begin mitigation work prior to Department approval to begin mitigation work shall not receive grant fund compensation.(7)
Grant projects shall be completed within ninety (90) days of the date of the grant approval notification. Upon written request, the Department may provide an extension based upon the following:(a)
Unknown additional required mitigation work;(b)
Acts of God; or(c)
Extenuating circumstances beyond the applicant or contractor's control.(8)
Failure of a contractor to complete a grant project within ninety (90) days without an extension may result in forfeiture of the grant.Section 6.
Grant Award Process.(1)
Once the grant application is approved, the contractor selected by the applicant may begin the mitigation work.(2)
Once the mitigation work is completed, the contractor shall submit completed CCF-1 and INV-1 forms via the SKH online portal at: https://skh.doi.ky.gov.(3)
The evaluator previously selected by the applicant shall conduct all required evaluations confirming that the work was completed according to the most current IBHS FORTIFIED Standard and shall submit an HR-1 form to the online portal at: https://skh.doi.ky.gov.(4)
After all required forms are completed and submitted, the Department shall pay the contractor's bid up to the limit of the grant.(5)
The applicant shall be responsible for any remaining cost to the contractor.Section 7.
Release of Funds.(1)
Once the grant application is approved, the contractor selected by the applicant may begin the mitigation work.(2)
Once the mitigation work is completed, the contractor shall submit completed CCF-1 and INV-1 forms via the SKH online portal at: https://skh.doi.ky.gov.(3)
The evaluator previously selected by the applicant shall conduct all required evaluations confirming that the work was completed according to the most current IBHS FORTIFIED Standard and shall submit an HR-1 form to the online portal at: https://skh.doi.ky.gov.(4)
After all required forms are completed and submitted, the Department shall pay the contractor's bid up to the limit of the grant.(5)
The applicant shall be responsible for any remaining cost to the contractor.(6)
Grant funds shall be paid on behalf of an approved applicant after:(a)
A FORTIFIED Designation Certificate is issued for the property by IBHS and received by the Department; and(b)
The contractor completes and submits the INV-1 Form via the SKH online portal at: https://skh.doi.ky.gov.(7)
Checks shall be mailed to the address of the contractor's choice.Section 8.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"Contractor Bid Sheet", BDS-1 (7/2025);(b)
"Pre-Site Inspection Questions", PSI-1 (7/2025);(c)
"Completion Confirmation Form", CCF-1 (7/2025);(d)
"Additional Owners Consent Form", AOC-1 (7/2025);(e)
"Home Review Form", HR-1 (7/2025);(f)
"Standard Invoice", INV-1 (7/2025);(g)
"Foundation Requirements for FORTIFIED Home Eligibility", FH 2022-06 (4/2023);(h)
"Eligibility and Compliance of Accessory Roof Structures", FH 2023-03 (4/2023);(i)
"FORTIFIED Requirements for Cement and Clay Hip and Ridge Tile Installed Over Asphalt Shingle Roof Cover", FH 2023-05 (4/2023);(j)
"FORTIFIED Home Requirements for Homes with Excessive Gaps Between Wood Decking Boards" FH 2023-07 (4/2023);(k)
"FORTIFIED Guidance on Leaf Guards and Gutters", FH 2023-09 (5/2023);(l)
"2025 Fortified Home Standard" FH Std.-2025 (11/2024); and(m)
"Online SKH Application", https://skh.doi.ky.gov (7/2025).(2)
This material may be inspected, copied or obtained, subject to applicable copyright law, at the Department of Insurance, Mayo-Underwood Building, 500 Mero Street, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available on the department's website at: https://insurance.ky.gov/ppc/CHAPTER.aspx.HISTORY: COMPILER'S NOTE: 2025 RS HB 6, enacted by the General Assembly on March 27, 2025, altered the information to be provided at the time an administrative regulation is filed. Aside from formatting changes necessary to upload the regulation into the LRC's publication application, this regulation has been published as submitted by the agency.
SHARON P. CLARK, Commissioner
RAY A. PERRY, Secretary
APPROVED BY AGENCY: July 9, 2025
FILED WITH LRC: July 9, 2025 at 2:35 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held at 9:00 a.m.on September 22, 2025, at 500 Mero Street, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. If held, this hearing will be open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on September 30, 2025. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person below.
CONTACT PERSON: Shaun T. Orme, Executive Advisor, 500 Mero Street, Frankfort, Kentucky 40601, phone +1 (502) 782-1698, fax +1 (502) 564-1453, email shaun.orme@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Shaun T. Orme
(1) Provide a brief summary of:
(a) What this administrative regulation does:
806 KAR 2:200 provides the eligibility requirements, application process, and grant award procedures for the Strengthen Kentucky Home Program.
(b) The necessity of this administrative regulation:
KRS 304.2-450 mandates the Department promulgate regulations for administering the Strengthen Kentucky Homes Program.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 304.2-450 provides that the Department shall establish the eligibility criteria, requirements, and procedures for obtaining a financial grant.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
806 KAR 2:200 provides Strengthen Kentucky Homes Operating procedures, eligibility requirements, application process, and grant award procedures. This will create a consistent and efficient process for determining grant fund allocation and eligibility for a grant award.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
N/A
(b) The necessity of the amendment to this administrative regulation:
N/A
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
806 KAR 2:200 will affect an unknown number of homeowners and persons eligible to become contractors and evaluators. The number of affected individuals may depend on current and future funding levels for the Strengthen Kentucky Homes Program.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
Homeowners seeking a financial grant to mitigate their home will be required to submit an application, select an evaluator and contractor, and make their property available for inspection and mitigation. Evaluators will be required to inspect the home to determine if eligible for a mitigation grant and to certify that repairs are complete. Contractors will be required to provide a bid on a mitigation project, and if selected, perform the mitigation work on the property. Once complete, contractors will submit an invoice to the Department for payment.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
The cost to comply with the regulation is de minimis.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Homeowners may receive grant funds to mitigate their homes to better withstand extreme wind and hail events. Evaluators and contractors will be paid to perform their respective tasks as part of this program.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
This regulation alone does not cost any amount, but rather sets requirements for the eligibility and process for applicants to apply for grants from the five million already appropriated to the Strengthen Kentucky Home Program.
(b) On a continuing basis:
This regulation alone will not cost any amount, but rather sets requirements for the eligibility and process for applicants to apply for grants from the five million already appropriated to the Strengthen Kentucky Home Program.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
HB 256 appropriated an initial five million ($5,000,000.00) dollars from the Insurance Regulatory Trust Fund to the Strengthen Kentucky Home Program. Funding in the future will come from interest earned on investments, additional appropriations, and/or grants.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There will not be an increase in fees related to this administrative regulation. If the program is successful, additional funding in the future may be appropriate.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation does not establish any fees.
(9) TIERING: Is tiering applied?
Tiering is not applied as the provisions of this administrative regulation apply to all entities equally.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 304.2-450
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
KRS 304.2-450
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
Department of Insurance
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
< $5,000,000.00
For subsequent years:
Unknown
2. Revenues:
For the first year:
$0.00
For subsequent years:
Unknown
3. Cost Savings:
For the first year:
$0.00
For subsequent years:
Unknown
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
This regulation will not affect any local entities.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
N/A
For subsequent years:
N/A
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
This regulation will not affect any regulated entities.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
N/A
For subsequent years:
N/A
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
The Department of Insurance is tasked with promulgating regulations related to the administration and operation of the Strengthen Kentucky Homes Program pursuant to KRS 304.2-450. Accordingly, the General Assembly has appropriated five million ($5,000,000.00) dollars for this program.
(b) Methodology and resources used to reach this conclusion:
N/A
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(13):
This regulation will not have a major economic impact as defined by KRS 13A.010(13).
(b) The methodology and resources used to reach this conclusion:
N/A
PUBLIC PROTECTION CABINET
Department of Insurance
Division of Property and Casualty Insurance
(New Administrative Regulation)
806 KAR 2:200.Operations, eligibility, and grant procedures for the Strengthen Kentucky Homes Program.
Section 1.
Definitions.(1)
"Applicant" means a real property owner seeking, or who has been approved for, a financial grant pursuant to KRS 304.2-450.(2)
"Commissioner" is defined by KRS 304.1-050(1).(3)
"Contractor" means a person certified to act as a contractor by IBHS and who is approved to work with the SKH program pursuant to 806 KAR 2:210.(4)
"Department" means the Kentucky Department of Insurance as defined in KRS 304.1-050(2).(5)
"Evaluator" means a person certified to act as an evaluator by IBHS and who is approved to work with the SKH program pursuant to 806 KAR 2:210.(6)
"IBHS" means the Insurance Institute for Business and Home Safety.(7)
"IBHS FORTIFIED Designation Certificate" means a certificate issued by IBHS upon successful completion of a FORTIFIED project.(8)
"Region" means a distinct geographic area designated for the purpose of fund allocation and grant award priority, and divided by area development districts established pursuant to KRS 147A.050.(9)
"Resident" means a person who resides in Kentucky for at least 181 days per calendar year.(10)
"SKH" means the Strengthen Kentucky Homes Program as established by KRS 304.2-450.Section 2.
Operations.(1)
SKH shall operate within the Property and Casualty Division of the Department.(2)
In accordance with KRS 304.2-450, the commissioner shall allocate monies held by the Strengthen Kentucky Homes Program Fund to the fifteen (15) different regions of the state in equal amounts.(3)
If a region fails to exhaust all funds allocated to that region due to an insufficient number of applicants, the commissioner may proportionally reallocate that region's funds to regions which have exhausted all previously allocated funds.(4)
The commissioner may establish special mitigation zones for the allocation of additional funds in any geographic area within the Commonwealth of Kentucky if:(a)
The Governor declares a state of emergency; or(b)
Additional funding is needed to mitigate areas which exhibit higher vulnerability to extreme weather events.Section 3.
Eligibility.(1)
To be eligible for an SKH grant:(a)
The applicant shall be:1.
The homeowner of the property to be mitigated; and2.
A resident of Kentucky;(b)
The property to be mitigated shall be:1.
Deemed eligible for mitigation as determined by an evaluator based on the requirements included in the PSI-1 form; and2.
An insurable, owner-occupied primary residence located in Kentucky and either:a.
A single-family home; orb.
A multifamily home.(2)
If the property to be mitigated is a multifamily residence, it shall:(a)
Be one singular structure; and(b)
Contain or be comprised of four (4) housing units or less.(3)
Applications submitted for properties with multiple owners must complete the AOC-1 form with signatures from all owners of the property.(4)
A single-family or multifamily structure is only eligible to receive one (1) SKH grant.(5)
The property to be mitigated may be a modular home but shall not be a condominium or mobile home.Section 4.
Application Process.(1)
The applicant shall submit a completed application via the SKH online portal at https://skh.doi.ky.gov.(2)
The applicant shall select an evaluator from the Department's SKH list of evaluators as prompted by the SKH website upon successful completion of an application and shall be responsible for paying the evaluator's charge for services.(3)
The evaluator shall:(a)
Examine the home to determine whether it is eligible for mitigation;(b)
Identify all improvements required to achieve IBHS Roof eligibility; and(c)
Report findings to the Department by submitting PSI-1 form to the SKH website.Section 5.
Approval of Grants and Process.(1)
The Department shall:(a)
Review all applications for completeness and determine if the applicant is eligible to receive grant funds;(b)
Verify the accuracy of the information on the application; and(c)
Approve applicants in the order received within a region who:1.
Meet all eligibility requirements set out in Section 3 of this administrative regulation;2.
Successfully submit a complete and verified application; and3.
Have a PSI-1 Form on file with the Department which finds the residence eligible for mitigation.(2)
Grants shall be awarded in the order that applications are approved within a region subject to availability of funds.(3)
The Department shall send notice to the applicant informing him or her of an approval or disapproval of the application.(4)
If approved, an applicant shall select at least one contractor from the Department's SKH list of contractors on the SKH website to request a bid for the mitigation work.(5)
Selected contractors shall utilize the BDS-1 form to electronically submit bid proposals via the SKH online portal at: https://skh.doi.ky.gov.(6)
Applicants who elect to proceed shall select a contractor of his or her choice from bids received and enter into an agreement with the contractor to perform the mitigation work. Contractors who begin mitigation work prior to Department approval to begin mitigation work shall not receive grant fund compensation.(7)
Grant projects shall be completed within ninety (90) days of the date of the grant approval notification. Upon written request, the Department may provide an extension based upon the following:(a)
Unknown additional required mitigation work;(b)
Acts of God; or(c)
Extenuating circumstances beyond the applicant or contractor's control.(8)
Failure of a contractor to complete a grant project within ninety (90) days without an extension may result in forfeiture of the grant.Section 6.
Grant Award Process.(1)
Once the grant application is approved, the contractor selected by the applicant may begin the mitigation work.(2)
Once the mitigation work is completed, the contractor shall submit completed CCF-1 and INV-1 forms via the SKH online portal at: https://skh.doi.ky.gov.(3)
The evaluator previously selected by the applicant shall conduct all required evaluations confirming that the work was completed according to the most current IBHS FORTIFIED Standard and shall submit an HR-1 form to the online portal at: https://skh.doi.ky.gov.(4)
After all required forms are completed and submitted, the Department shall pay the contractor's bid up to the limit of the grant.(5)
The applicant shall be responsible for any remaining cost to the contractor.Section 7.
Release of Funds.(1)
Once the grant application is approved, the contractor selected by the applicant may begin the mitigation work.(2)
Once the mitigation work is completed, the contractor shall submit completed CCF-1 and INV-1 forms via the SKH online portal at: https://skh.doi.ky.gov.(3)
The evaluator previously selected by the applicant shall conduct all required evaluations confirming that the work was completed according to the most current IBHS FORTIFIED Standard and shall submit an HR-1 form to the online portal at: https://skh.doi.ky.gov.(4)
After all required forms are completed and submitted, the Department shall pay the contractor's bid up to the limit of the grant.(5)
The applicant shall be responsible for any remaining cost to the contractor.(6)
Grant funds shall be paid on behalf of an approved applicant after:(a)
A FORTIFIED Designation Certificate is issued for the property by IBHS and received by the Department; and(b)
The contractor completes and submits the INV-1 Form via the SKH online portal at: https://skh.doi.ky.gov.(7)
Checks shall be mailed to the address of the contractor's choice.Section 8.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"Contractor Bid Sheet", BDS-1 (7/2025);(b)
"Pre-Site Inspection Questions", PSI-1 (7/2025);(c)
"Completion Confirmation Form", CCF-1 (7/2025);(d)
"Additional Owners Consent Form", AOC-1 (7/2025);(e)
"Home Review Form", HR-1 (7/2025);(f)
"Standard Invoice", INV-1 (7/2025);(g)
"Foundation Requirements for FORTIFIED Home Eligibility", FH 2022-06 (4/2023);(h)
"Eligibility and Compliance of Accessory Roof Structures", FH 2023-03 (4/2023);(i)
"FORTIFIED Requirements for Cement and Clay Hip and Ridge Tile Installed Over Asphalt Shingle Roof Cover", FH 2023-05 (4/2023);(j)
"FORTIFIED Home Requirements for Homes with Excessive Gaps Between Wood Decking Boards" FH 2023-07 (4/2023);(k)
"FORTIFIED Guidance on Leaf Guards and Gutters", FH 2023-09 (5/2023);(l)
"2025 Fortified Home Standard" FH Std.-2025 (11/2024); and(m)
"Online SKH Application", https://skh.doi.ky.gov (7/2025).(2)
This material may be inspected, copied or obtained, subject to applicable copyright law, at the Department of Insurance, Mayo-Underwood Building, 500 Mero Street, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available on the department's website at: https://insurance.ky.gov/ppc/CHAPTER.aspx.HISTORY: COMPILER'S NOTE: 2025 RS HB 6, enacted by the General Assembly on March 27, 2025, altered the information to be provided at the time an administrative regulation is filed. Aside from formatting changes necessary to upload the regulation into the LRC's publication application, this regulation has been published as submitted by the agency.
SHARON P. CLARK, Commissioner
RAY A. PERRY, Secretary
APPROVED BY AGENCY: July 9, 2025
FILED WITH LRC: July 9, 2025 at 2:35 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held at 9:00 a.m.on September 22, 2025, at 500 Mero Street, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. If held, this hearing will be open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on September 30, 2025. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person below.
CONTACT PERSON: Shaun T. Orme, Executive Advisor, 500 Mero Street, Frankfort, Kentucky 40601, phone +1 (502) 782-1698, fax +1 (502) 564-1453, email shaun.orme@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Shaun T. Orme
(1) Provide a brief summary of:
(a) What this administrative regulation does:
806 KAR 2:200 provides the eligibility requirements, application process, and grant award procedures for the Strengthen Kentucky Home Program.
(b) The necessity of this administrative regulation:
KRS 304.2-450 mandates the Department promulgate regulations for administering the Strengthen Kentucky Homes Program.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 304.2-450 provides that the Department shall establish the eligibility criteria, requirements, and procedures for obtaining a financial grant.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
806 KAR 2:200 provides Strengthen Kentucky Homes Operating procedures, eligibility requirements, application process, and grant award procedures. This will create a consistent and efficient process for determining grant fund allocation and eligibility for a grant award.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
N/A
(b) The necessity of the amendment to this administrative regulation:
N/A
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
806 KAR 2:200 will affect an unknown number of homeowners and persons eligible to become contractors and evaluators. The number of affected individuals may depend on current and future funding levels for the Strengthen Kentucky Homes Program.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
Homeowners seeking a financial grant to mitigate their home will be required to submit an application, select an evaluator and contractor, and make their property available for inspection and mitigation. Evaluators will be required to inspect the home to determine if eligible for a mitigation grant and to certify that repairs are complete. Contractors will be required to provide a bid on a mitigation project, and if selected, perform the mitigation work on the property. Once complete, contractors will submit an invoice to the Department for payment.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
The cost to comply with the regulation is de minimis.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Homeowners may receive grant funds to mitigate their homes to better withstand extreme wind and hail events. Evaluators and contractors will be paid to perform their respective tasks as part of this program.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
This regulation alone does not cost any amount, but rather sets requirements for the eligibility and process for applicants to apply for grants from the five million already appropriated to the Strengthen Kentucky Home Program.
(b) On a continuing basis:
This regulation alone will not cost any amount, but rather sets requirements for the eligibility and process for applicants to apply for grants from the five million already appropriated to the Strengthen Kentucky Home Program.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
HB 256 appropriated an initial five million ($5,000,000.00) dollars from the Insurance Regulatory Trust Fund to the Strengthen Kentucky Home Program. Funding in the future will come from interest earned on investments, additional appropriations, and/or grants.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There will not be an increase in fees related to this administrative regulation. If the program is successful, additional funding in the future may be appropriate.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation does not establish any fees.
(9) TIERING: Is tiering applied?
Tiering is not applied as the provisions of this administrative regulation apply to all entities equally.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 304.2-450
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
KRS 304.2-450
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
Department of Insurance
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
< $5,000,000.00
For subsequent years:
Unknown
2. Revenues:
For the first year:
$0.00
For subsequent years:
Unknown
3. Cost Savings:
For the first year:
$0.00
For subsequent years:
Unknown
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
This regulation will not affect any local entities.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
N/A
For subsequent years:
N/A
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
This regulation will not affect any regulated entities.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
N/A
For subsequent years:
N/A
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
The Department of Insurance is tasked with promulgating regulations related to the administration and operation of the Strengthen Kentucky Homes Program pursuant to KRS 304.2-450. Accordingly, the General Assembly has appropriated five million ($5,000,000.00) dollars for this program.
(b) Methodology and resources used to reach this conclusion:
N/A
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(13):
This regulation will not have a major economic impact as defined by KRS 13A.010(13).
(b) The methodology and resources used to reach this conclusion:
N/A