Senator Allen Introduces SB 894 to provide state-backed, low-interest loans for homeowners to retrofit homes and better protect themselves from wildfire

SACRAMENTO – One year after the devastating Los Angeles Fires, Senator Ben Allen (D-Pacific Palisades) introduced first-of-its kind legislation to create a state-backed, low-interest loan program that makes wildfire safety upgrades achievable for more households.

“As families across the region continue rebuilding from last year’s horrific tragedy, it is our duty as leaders to find solutions that will not only help them in their recovery, but also prevent these disasters from happening in the first place,” said Senator Allen. “Expanding financing options so that more Californians can affordably retrofit their homes will help save lives, homes, and essential public infrastructure and resources.”

The bill is sponsored by Megafire Action, and the program is modeled on California’s successful GoGreen energy-finance platform, which has already demonstrated how public backing can unlock private capital at scale. Establishing a new but similar financing program for wildfire retrofitting will ensure Californians across the state have the resources to better prevent and protect themselves against future megafires.

Polling conducted by Megafire Action underscores the urgency and appeal of this approach: 83% of California voters support financial incentives for fire-resistant home upgrades and 81% support certifications that could lead to insurance discounts.

“As we reflect on the destruction of last year’s LA fires, we have a responsibility to ensure families are never left so vulnerable again,” said Eric Horne, California Director at Megafire Action, a non-profit sponsor of the bill. “We applaud Senator Allen for his leadership and dedication to protect Californians against future fires and are proud sponsors of this bill, which will provide a clear, trusted path for Californians to protect their homes without breaking the bank. We look forward to working with Senator Allen and coauthors in coming weeks as language for SB 894 is finalized.”

“We will never stabilize California’s insurance market until we address the root problem: too many homes are burning down,” added Senator Allen. “This proposed program will expand access to those proven protections for the families and communities who need them most, protections that many insurers are already rewarding with significant premium discounts.”

The introduction of SB 894 comes as Senator Allen, along with Senator Perez (D-Pasadena), honored victims of both the Palisades and Eaton fires on the Senate Floor. The introduction also comes on the heels of an announcement that the State is pursuing a new fund to help bridge lingering gaps between insurance payouts and rebuilding costs.

The bill will be heard in the Senate Banking and Financial Institutions Committee in the coming weeks.