Sen. Blumenthal and Murphy Introduce Legislation To Bring Federal Funds For Homeowners With Failing Foundations

April 26--Democratic senators Richard Blumenthal and Chris Murphy introduced two bills Wednesday that would give Connecticut homeowners access to federal funding to repair failing foundations.

One bill, sponsored by Blumenthal, would provide $100 million to homeowners through Federal Emergency Management Agency grants. The second bill, sponsored by Murphy, would make an additional $100 million available to the captive insurance fund started by the state through the Department of Housing and Urban Development.

"Each of us is taking the lead on one bill, but we'll continue to work together as we have through this process," Blumenthal said. "We have visited homes and businesses throughout the areas that have been affected so disastrously by pyrrhotite used in construction materials in Connecticut and these bills are a critical first step in addressing a living nightmare for so many homeowners in Connecticut."

If passed, the pieces of federal legislation would join a $100 million fund created by the state to help with the cost of repairing and replacing foundations. The state fund allocated up to $20 million a year over five years.

Since the issue was detected in north central Connecticut, Gov. Dannel P. Malloy has estimated that as many as 34,000 homes in 36 towns might have failing foundations.

According to a state report, a mineral known as pyrrhotite -- used in the concrete aggregate for the foundations that are now crumbling -- is partly to blame.

Insurance companies have denied homeowners' claims, saying the problem does not qualify for coverage under their definition of collapse. Homeowners have been left to bear the burden of a repair, which can cost as much as $200,000.

"I've visited several of these homes that are literally falling down around homeowners and my heart breaks every time," Murphy said. "These two bills are trying to bring some federal resources in ... the legislation I am leading would support the state fund that would act as an insurance entity for homeowners dealing with remediation."

Malloy has sought FEMA assistance for homeowners twice. Each time, the agency said the failing foundations did not meet the criteria for a natural disaster.

This legislation, Blumenthal said, would require FEMA to step in.

"The governor was right to make those requests and we're going to compel [FEMA] to do the right thing," he said.

Murphy said that Ben Carson, federal secretary of housing and urban development, has been briefed and committed to sitting with the Connecticut delegation for discussions.

"We want to supplement the state funds and make sure there is enough to help homeowners remediate as much as possible," Murphy said. "We thought it was important to put two different pieces of legislation into the hopper to help."

Murphy said that getting the legislation passed won't be easy.

"I want to make clear that this is going to be an uphill fight to get these bills passed into law," he said. "Many of our colleagues see this as a local issues that the state should address."

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