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

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