February 17, 2017 2 COMMENTS

Malloy proposes loan aid program for crumbling foundation homeowners

PHOTO | Bill Morgan Media LLC
PHOTO | Bill Morgan Media LLC
Gov. Dannel P. Malloy..

Gov. Dannel P. Malloy has proposed a state loan assistance program for homeowners struggling to repair and replace crumbling foundations.

The proposal, which has been submitted to the General Assembly, calls for the creation of the Collapsing Foundation Interest Rate Reduction program, which would be administered by the Connecticut Department of Housing (CTDOH). The state agency would provide credit enhancement to homeowners in the form of interest rate subsidies for qualifying loans.

Participating cities and towns, through the Connecticut Health and Educational Facilities Authority (CHEFA), would 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, Malloy said.

Part of the program allows municipalities to waive the fees associated with building permit applications for homeowners facing this problem.

The legislation was prompted by the large number of homes in the region that have suffered damage due to the reaction of a naturally occurring mineral, pyrrhotite, to oxygen and water, which erodes concrete foundations.

The presence of pyrrhotite indicates the potential for concrete deterioration, but its existence alone does not necessarily cause it. Based on complaints received by the state Department of Consumer Protection, it has been determined that homes built after 1983 with aggregate from Becker's Quarry in Willington are at risk. The radius of impact is 20 miles from the quarry.

A complete replacement of the foundation could cost roughly $75,000 to $150,000, depending on the size of the house, Malloy said.

Comments

Type your comment here:

ric bee

02/21/17 AT 09:02 AM
David is correct why is Corrupticut getting involved here? Is Malloy really protecting his friends in the big banks? Let the homeowners go after the responsible parties-ultimately the government inspectors,

David

02/17/17 AT 04:00 PM
Loan....yes. Grant...no! We all have problems....it's not up to the State of CT to solve them all. The concrete Company has some liability....check that first. Then check with the BANKS (mortgages) second. What are THEY willing to do....after all....if the homeowners can't do it financially...it will quickly become the banks problem. Check with the various Town Building Depts....they OK'd the foundations. They have liability.
Free E-Newsletters

Sign up now for our daily and weekly
e-newsletters! Click Here

 
Today's Poll How does your company cope with winter storms?<>
ADVERTISEMENTS
Most Popular on Facebook
Copyright 2017 New England Business Media