Gov. Dannel P. Malloy has submitted a legislative proposal to the state General Assembly to create a state program that will assist homeowners suffering from crumbling foundations who would otherwise have difficulty getting a loan to repair their properties.
The legislative proposal calls for the creation of the Collapsing Foundation Interest Rate Reduction program, which would be administered by the Connecticut Department of Housing and provide credit enhancement to homeowners in the form of interest rate subsidies for qualifying loans. Participating municipalities, through the Connecticut Health and Educational Facilities Authority, will be able to borrow funds at lower costs with a state guarantee to help them raise funds for the development and deployment of financial assistance, including through credit enhancements, loan guarantees and procurement of construction equipment.
Malloy has also proposed to allow municipalities to waive the fees associated with building permit applications for homeowners facing this problem.
The Connecticut Department of Consumer Protection has determined that homes built after 1983 with aggregate from Becker’s Quarry in Willington are at risk, with a radius of impact of 20 miles from the quarry. The best available solution known at this time is a complete replacement of the foundation, which could cost roughly $75,000 to $150,000, depending on the size of the house.
“Homeowners in the region are being severely impacted by what appears to be a natural disaster and are understandably seeking any bit of relief they can to mitigate this problem,” Malloy said in a statement. “This is a difficult time for the families whose most valuable assets are at risk. This proposal does not represent the totality of the state’s assistance for affected homeowners, but it’s one piece of our joint efforts with local, federal and private sector partners to provide some amount of respite for this serious situation.”