Crumbling Foundation captive rescued | CTANewsJunkie
The Senate gave final passage Monday to a law that will indefinitely prevent the scheduled extinction of a captive insurance company managing funds to help homeowners whose foundations are collapsing.
Lawmakers voted 33 to 3 in favor of a bill that eliminates the June 30, 2022 expiration date of the Connecticut Foundation Solutions Indemnity Company, which manages funds to help homeowners whose foundations are affected by pyrrhotite, a mineral that destroys concrete in building foundations.
The problem has been particularly acute in northeast Connecticut, where crumbling foundations have financially ruined some homeowners and affected local property tax revenues.
“It has been a tax nightmare for municipalities, especially those with multiple homes: Tolland, Vernon, Manchester, South Windsor to give you a few, because as these homes are identified the value of those homes is. dramatically reduced and the loss of tax revenue has a significant impact, ”Senator Steve Cassano, former Democratic Mayor of Manchester, said on Monday.
The captive insurance company has so far helped 315 homeowners finance foundation replacement. It is funded by a combination of $ 100 million state bond and an additional $ 12 on home insurance policies. The surtax is currently expected to continue until 2029.
A bipartisan group of lawmakers lobbied for passage of the bill which also requires a study of the presence of pyrrhotite in non-residential buildings and a geological report designed to identify pyrrhotite in state quarries in the hope to avoid another catastrophe.
Senator Saud Anwar, former Democratic mayor of South Windsor, praised the efforts of policymakers to address the issue. He said Republicans and Democrats in the legislature have worked with several executive agencies.
“It was a disaster and to fix a disaster we need everyone on the bridge and luckily everyone has been on the bridge and they stayed on the bridge,” Anwar said. “And I hope that with our votes today, we will show that all hands will remain on the bridge until we take care of every house.”
Senator Dan Champagne, Republican mayor of Vernon, said his city had the most affected properties, including several condominiums. Recently, the company funded the replacement of condo foundations in Vernon.
“Now is the time for the state to step in and finish helping homeowners, which in turn helps these cities, as every year more and more homes are added, more value is lost, more taxpayer money is gone, ”said Champagne.
When the House passed the bill last month, CFSIC Superintendent Michael Maglaras said he hoped the Senate would act before the session ended.
Passage of the bill “means that our lives have been extended. It means we can do more work, seek more funding, ”he said. “If he doesn’t budge, I actually have to start shutting down the business around October 1.”