Colorado

Colorado faces growing threats from wildfires, floods, droughts, hail, and tornadoes, which endanger communities and infrastructure. However, the state counters these threats with focused efforts, such as the Wildfire Resilient Homes Grant Program and the State Hazard Mitigation Plan, to enhance safety and resilience.

Grant Programs

Mitigation grant programs provide homeowners with funds to enhance their homes' resilience against storms and other natural hazards, such as wildfires and floods.

• Wildfire Partners Rebate Program Offers Rebates of up to $500 for property owners who complete defensible space actions, such as vent screening, roof upgrades, and non-combustible zones. Need-based assistance is available through a separate funding program for low-income participants. More Details
• Central Colorado Wildfire Mitigation Program Cost-share funding for mechanical thinning and fuels reduction on private lands in Chaffee and Lake Counties; rolling applications for landowners via online survey. More Details
• Delta County WRWC Vegetation Management Assistance Cost-Share Program Reimburses up to 75% of costs for creating defensible space, tree thinning, and vegetation management on private properties. Contact WRWC for need-based options and applications. More Details
• Douglas County Wildfire Mitigation Cost-Share Program Covers up to 50% of costs for defensible space, fuels disruption, and vegetation reduction on private properties; applications open July 14–August 14 annually. More Details

Mitigation Insurance and Tax Incentives

Property owners, residents, and businesses can receive insurance discounts and tax breaks to build stronger to better withstand damage from natural hazards.

• Wildfire Mitigation Measures Subtraction - Colorado landowners with property located in a wildland-urban interface may receive a tax credit of up to $2,500 for the costs of wildfire mitigation work. More Details
  
• State Income Tax Credit: up to 25% of costs, maximum $625, for wildfire mitigation expenses like defensible space and home hardening on private properties; applicable for the 2025 tax year. More Details
  
• FHLB Topeka Affordable Housing Program (AHP): The Federal Home Loan Bank of Topeka's Affordable Housing Program provides competitive grants to member institutions for affordable housing initiatives, offering extra scoring points for FORTIFIED construction to boost storm resilience in homeownership and rental projects. More Details

"Really appreciated this class. Very rarely have I been in a CE class that actually teaches me something USEFUL for my team to offer to customers. Appreciate it!"

- Insurance Agent

Funding to Help Rebuild or Re-Roof

These federal and mortgage-backed programs may provide financing for disaster recovery, home repairs, energy upgrades, and rehabilitation, supporting homeowners, renters, and small businesses, particularly for those with low incomes or who are affected by disasters.

Small Business Administration Loans - Those affected by a disaster can rebuild stronger by increasing their SBA disaster assistance loan up to 20% of the verified physical damage to make mitigation improvements. There is no cost to apply, and you are under no obligation to accept a loan if approved.

• Generally, borrowers have two years after loan approval to request an increase for higher rebuilding costs, code-required upgrades, or mitigation.
  
• Call (800) 659-2955 and ask about increasing your loan for mitigation purposes, or visit sba.gov/disaster for more information.

Fannie Mae HomeStyle Renovation Loans - A mortgage that provides a simple and flexible way for borrowers to renovate or make home repairs with a conventional first mortgage, rather than a second mortgage, home equity line of credit, or other more costly methods of financing.​

Fannie Mae HomeStyle Energy Loans - A mortgage that helps lenders offer financing for homeowners to increase home energy efficiency and reduce utility costs.

• Both HomeStyle Renovation and HomeStyle Energy mortgages may be combined with a HomeReady® mortgage so that low-income borrowers can take advantage of flexible features and additional savings.

USDA- Single Family Housing Repair Loans & Grants - A loan program providing loans to very-low-income homeowners to repair, improve, or modernize their homes. Grants are also available for very-low-income elderly homeowners to remove health and safety hazards.

HUD 203(k) Loans - A loan program for rehabilitating and repairing single-family properties, allowing homebuyers and homeowners to finance both the purchase or refinancing of a house and the cost of its rehabilitation through a single mortgage, or to finance the rehabilitation of their existing home.

• The 203(k) program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve, or upgrade their homes.

HUD Mortgage Insurance for Disaster Victims - 203 (h) - Loan program for renters or homeowners if their homes are located in an area designated by the President as a disaster area and were destroyed or damaged to such an extent that reconstruction or replacement is necessary. These loans may be used to finance the purchase or reconstruction of a one-family home that will be the homeowner's principal residence.

• The borrower must submit their application to an FHA-approved lending institution within one year of the President's disaster declaration.

Resilience Policy and Legislation

Legislation and regulation are tools used to encourage and incentivize building to higher standards, thereby reducing losses and costs for property owners and residents.

• HB 24-1091 - The bill ensures that homeowners can install, use, and maintain fire-resistant building materials on their property, including in shared communities. However, it allows homeowners' associations to set reasonable guidelines for the design and appearance of these materials when used for fencing.
• CO 2025 HB 1182: Promotes transparency in wildfire risk assessment for insurance, offering mitigation discounts. More Details.