Under the program of indemnification or reimbursement to be undertaken by CFSIC, claims will be presented to CFSIC by claimants who qualify for consideration by virtue of their ownership of affected residential buildings (unless they are defined as “Legacy Claimants”), but at all times subject to whether claims are Type 1 or Type 2 claims (as defined further in these guidelines), and other criteria which may from time to time be established by CFSIC’s Board of Directors.Ī “claimant” will be defined as the owner of a single-family or multi-family residential dwelling, including but not limited to a residential unit in a condominium or a unit used for residential purposes in a common interest community such as a planned unit development.Ī commercial holder of debt or a company that purchases distressed residential properties as a business cannot qualify as a claimant, except with respect to condominium units, but in no event if (i) the condominium unit in question is a single condo unit on a single foundation platform, or (ii) the majority of the existing units on any single foundation platform are so owned (in which event the entire foundation platform in question is ineligible), or (iii) such unit was purchased by a commercial holder of debt, or a company that purchases distressed residential properties as a business, on or after December 1, 2019.
None of these funds will be categorized as premium, and CFSIC will not be issuing any insurance policy or agreement linked specifically to a premium, where that premium is consideration in a contract. In addition, beginning in April 2020, CFSIC can expect to receive an additional estimated $10.6 million each year, funded through a $12 per year homeowners policy assessment on each policy delivered within the state of Connecticut. The funds to pay active claims will be provided through an annual allotment to CFSIC from the Crumbling Foundations Assistance Fund (“the Fund”), which in turn is receiving $20 million per year in bonded funds from the State of Connecticut through June 30, 2022, with another $100 million allocated to CFSIC from Jthrough Jin annual installments of $25 million.
No premium in the classic sense of the meaning of that word will change hands between CFSIC and the residential building owner. Residential building owners will become “Participants” under the program. Indemnification or Reimbursement ProvidedĬFSIC will require claimants whose claims are validly in line for adjustment to sign a Participation Agreement in advance of the claim adjustment process commencing. Foundation repairs differ in costs based on multiple factors, but current estimates range between $150,000 and $250,000 per affected residential building, inclusive of allowable concrete costs. The most effective remediation is to replace the existing foundation with a new one that does not contain pyrrhotite. As a foundation continues to deteriorate, it often becomes unsound. Homes and structures in approximately 41 towns may be affected by what appears to be a slow moving natural disaster.
While the presence of pyrrhotite indicates the potential for concrete deterioration, its existence alone does not necessarily cause it. The mineral, pyrrhotite, causes the slow deterioration of concrete foundations when exposed to oxygen and water. Perhaps as many as 30,000 homes in the north, east, and central parts of Connecticut may be affected. Pyrrhotite oxidizes in the presence of water and oxygen, leading to the formation of expansive mineral products, and causing concrete to deteriorate prematurely. Pyrrhotite is a naturally existing mineral in stone aggregate, which is used to produce concrete. Investigators concluded that the deterioration of the concrete foundations was caused by the presence of pyrrhotite in the concrete mixture used to pour the foundations. Residents in the northeast section of Connecticut and elsewhere have reported significant structural problems with certain residential concrete foundations. (Modified with effect from January 5, 2022) Background
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