Crumbling Foundations in Eastern Connecticut

Eastern Connecticut is the epicenter of the concrete foundation disaster. The economic, financial, municipal, and human costs are profound.

The presence of the mineral pyrrhotite in locally quarried aggregate contaminated concrete poured primarily between 1983 and early 2013 in thousands of buildings, mostly houses, across the region and into Massachusetts.

The destructive process is irreversible. Repairs prove ineffective. Replacement of the foundation is costly but the only currently effective solution.

Insurers denied homeowner claims. FEMA declined assistance. Lenders were leery of underwriting affected homes. Homeowners formed grassroots organizations to advocate for assistance and share information.

Official assistance efforts developed, slowly at first. The State of Connecticut Insurance Department warned insurers not to cancel insurance based on such a claim. US Representatives Joe Courtney and John Larson, with the support of US Senators Richard Blumenthal and Chris Murphy, obtained income tax relief for homeowners. The Connecticut Department of Housing and the Capitol Region Council of Governments offered towns and homeowners pertinent information.

The effects extend beyond the plight of homeowners. Assessors adjust property assessments to reflect the loss, reducing municipal tax revenues. Buyers find alternatives. Sellers either replace the foundations or wait in place.

The Connecticut Foundation Solutions Indemnity Company, Inc. (CFSIC) was created specifically to address this crisis. As the primary source funding claims for foundation replacement, it is financed by taxpayers and a surcharge on homeowner insurance policies. Its site is frequently updated with timely messages.

This page is an archive of news coverage, state and federal developments, and resources for affected homeowners. Updated occasionally, by me, a working appraiser who has followed the crisis since it emerged. Please feel free to send corrections or suggestions.

Renée

News & Updates

  • Vernon, Ellington and Stafford receive $480K grant to test crumbling foundations

    One of a property owner’s biggest fears could be their home falling to the ground, but three local towns have teamed up to assist their residents Vernon, Ellington and Stafford receive $480K grant to test crumbling foundations | fox61.com

  • Bills to Prevent Deficiency Judgments on Affected Homes

    Journal Inquirer — legislative effort to protect homeowners from deficiency judgments when selling or foreclosing on a pyrrhotite-affected property. https://www.journalinquirer.com/newsletters/bills-would-prevent-deficiency-judgmentson-crumbling-concrete-homes/article_b7a08704-2bba-11e9-81d9-4b74d1ece0e7.html

  • Concrete Hurts Grand Lists” — Towns Lose Revenue

    CFSIC updates program guidelines — homeowners following the application process should review current rules as the fund refines its procedures. Journal Inquirer — municipal fiscal impact of defective concrete on property tax base. Affected towns are watching their grand lists shrink as assessed values fall. https://www.journalinquirer.com/connecticut_and_region/concrete-hurts-grandlists/article_d86c6f0c-231d-11e9-a8a5-771dc8f0caca.html

  • Two Insurers Promise $10.5 Million to Affected Insureds

    The Hartford and Liberty Mutual agree to assist the crumbling foundations captive insurance program — a significant private-sector commitment to the relief effort. https://www.captiveinternational.com/news/the-hartford-and-liberty-mutual-to-assistcrumbling-foundations-captive-2648

  • Tolland School and Fire Department Show Foundation Problems

    WFSB / NBC Connecticut — the crisis extends beyond housing to municipal buildings, with a Tolland school and fire department showing foundation defects.’ https://www.wfsb.com/news/tolland-school-found-to-have-a-crumblingfoundation/article_46df7dfe-fe4c-11e8-8563-3b8ea5d4c757.html

  • IRS Tax Relief for Affected Homeowners

    CT Public Radio: Many will now be able to deduct the cost of repairs from their federal taxes over the next two decades. Tax Relief Extended For Conn. Homeowners With Crumbling Foundations | Connecticut Public

  • HUD Secretary Views the Crisis Firsthand

    CT News Junkie — federal attention reaches the region as HUD Secretary tours affected properties in Eastern Connecticut. https://www.ctnewsjunkie.com/archives/entry/20180604_hud_secretary_gets_look_at_crumbling_foundation

  • CT House Passes Relief Plan

    CT Mirror — state legislature passes a relief plan for affected homeowners, a significant early step toward a state-funded response.

  • CFSIC Selects Superintendent

    Incorporators choose Michael Maglaras & Company as Superintendent Crumbling Foundations Captive Insurance Company Selects Superintendent | southwindsorct

  • Courtney Larson IRS crumbling foundations tax relief 2018

    Updated guidance from the Internal Revenue Service (IRS) that extends the period of time that homeowners have to claim crumbling foundation related repairs on their federal taxes.  COURTNEY, LARSON, NEAL ANNOUNCE EXTENSION OF FEDERAL TAX RELIEF FOR CRUMBLING FOUNDATION REPAIRS | Congressman Joe Courtney