Connecticut crumbling foundations repair reaches milestone, with thousands still waiting for aid

A state-created insurance company focused on helping Eastern Connecticut homeowners with crumbling foundations recently reached a milestone, surpassing 200 foundations replaced.

Construction costs for foundation repairs totaled about $38.5 million, while another $6.8 million went to property owners who paid for the work themselves and then sought reimbursement, the Connecticut Foundation Solutions Indemnity Company, Inc. announced Monday.

Created by the state legislature in 2017, CFSIC caps funding for each single-family home repair at $175,000. The average cost so far has been $154,300 per home, CFSIC Superintendent Michael Maglaras said.

CFSIC has received 1,639 claims. Those claims will drain available funds, so new claims were not accepted as of June 30, Maglaras said. Over the next 7-9 years, a total of 4,000-6,000 claims are expected, including the 1,639 already in hand, Maglaras said. More claims can only be handled with more funding.

Affecting homeowners in 47 towns, crumbling foundations were caused by concrete containing the mineral pyrrhotite, which expands when exposed to water and oxygen, causing the concrete to swell and crack. Insurance companies have refused to pay homeowners' claims, saying that the failure does not meet their definition of a structural collapse.

Funding for the CFSIC has come from state bonding and a $12 surcharge on homeowners' insurance policies.

This week, the General Assembly is expected to convene for a special session to expand the Supplemental Collapsing Foundation Loan Program to condominium associations. The low interest loan program allows homeowners receiving CFSIC funds to apply for supplemental loans to assist in the repair or replacement of crumbling foundation. The funds can be used to cover costs of repairs that may not be covered by CFSIC funding, such as the replacement of decking, heating, and plumbing, according to a news release.

The supplemental loan program is administered by the Connecticut Housing Finance Authority and participating financial institutions may provide loans up to $75,000 to eligible borrowers. Funding for the program is capped at $20 million.

For more information, visit www.crumblingfoundations.org.

Jesse Leavenworth can be reached at [email protected]

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