Latest News…April 6, 2026

In Memoriam…Don Poulin

(April 6, 2026) If you are a victim of the crumbling foundations crisis…a victim of this terrible natural disaster which has afflicted so many families in the Northeast Corner of Connecticut…then you owe a debt of gratitude to a man you have most likely never met.

His name is Don Poulin.

Don died suddenly on March 24 at home.  He was a member of the Board of Directors of CFSIC. He served in the statutory role as one of two directors who have lived through a crumbling foundation of their own. In other words, Don and his wife Nancy had “walked the walk.”

Don attended almost every board meeting of CFSIC. When, because of business reasons, he couldn’t make a meeting, he always called or texted with a good reason why he could not attend. He read the board materials he was sent. He asked questions. Whenever the conversation at a board meeting veered off course…as someone who had suffered through the emotional and financial cost of a crumbling foundation, he brought us all back to the important topic at hand: the victims. It was all about the victims. He had been a victim, and he knew what it was all about.

The Board of CFSIC has lost a valued and important member. The victims of the crisis have lost a valuable and important friend.

The CFSIC Program Is Founded on Fairness…

(March 30, 2026) Before CFSIC was formed. Before the first $100 million of funding was authorized by the legislature. Before anybody who was serving in an important concrete activist role even knew what a captive insurance company was all about…the thing everyone could agree about was that the crumbling foundations crisis was “unfair.”

It was unfair that the crumbling foundations crisis was happening to homeowners throughout the affected area through no fault of their own.

Many felt that it was unfair that the commercial insurance industry kept turning down crumbling foundation claims.

We can all agree that it was unfair for families to suffer through the potential of structural failure and even bankruptcy because of the crisis, which was then and remains best categorized as a natural disaster.

At CFSIC we’d like to suggest that seven years later there are some more things that should be added to the list of what is “unfair.”

CFSIC believes that it is unfair to expect the taxpayers of Connecticut to pay to replace a crumbling foundation when someone has purchased a home as part of a tax/foreclosure sale and has not even been able to inspect the home. We think it is unfair to hand a bill to the taxpayers for a foundation replacement when that buyer could have walked away from the sale. If you can’t see, walk around the perimeter of, inspect, or evaluate a home before you buy it…why would you expect Connecticut taxpayers to pay for your decision?

We at CFSIC think it is unfair when a real estate agent in the affected area does not advise a potential home buyer of the existence of the crisis and does not send that person to CFSIC’s website so they can educate themselves about the crisis before they buy a home. Real estate agents should be utilizing the “CONCRETE ADVISORY and DISCLOSURE for SELLERS and BUYERS (PDF)” form, which is designed to force awareness about the extent of the crisis in the state of Connecticut.

If you are a lawyer serving the real estate needs of homeowners in Connecticut in the affected area, and you have not cautioned your client about the existence of the crumbling foundations crisis before that family makes a financial commitment, we think it is unfair for the taxpayers of Connecticut to foot the bill for a foundation replacement.

Activism among citizens was what created CFSIC. That activism was built on the concept of “awareness about the crisis.” Nothing was going to get fixed, no funds were going to be allocated by government, unless people were aware of the depth and the extent of the crisis.

CFSIC’s “February 1, 2019” rule was designed to force awareness of this crisis. It is a simple rule, and it applies to everyone. It is designed to force awareness about the existence of the crisis that each and every taxpayer in the state of Connecticut is paying for: if you purchase a home in Connecticut on or after February 1, 2019, you must have in your possession, at the time you close on the purchase, a core analysis report or a valid foundation visual inspection report. If you don’t…you have forfeited your right to be a CFSIC claimant.

No one should be trying to push the burden of paying for a crumbling foundation onto the backs of Connecticut taxpayers just because they purchased a house sight-unseen, or because none of the professionals they worked with…mortgage lenders, lawyers, real estate agents…saw fit to sit them down and tell them that this crisis exists in Connecticut.

What will keep CFSIC’s funds flowing for the victims of this crisis will be our collective belief in fairness. The minute state government believes that CFSIC is operating contrary to the interests of the general taxpaying public…including those taxpayers who do not now have and will never have a crumbling foundation…those funds will cease, and the crisis will win.

Spotlight on Condos…

(March 23, 2026) At CFSIC, we’re proud of our record with condominiums.

To date, CFSIC has put 237 families owning condos back in safe and secure homes, and restored condo equity, as well as the tax base, by a significant number in the affected area.

Make no mistake…condos take a long time to remediate. The long delay with condos has two causes. First, condo association boards of directors take their time (and, yes, they should take their time) in interviewing and selecting the right contractor. It can take up to a year or longer for that interview and selection process to be successfully completed. The very early delay in getting remediations underway at the start of the CFSIC program was caused, and in fact continues to be caused, by associations taking their time to select the appropriate contractor. Then there’s negotiating bank loans. Then there’s holding association meeting after meeting to discuss the tough issue of possible assessments with condo owners. This all takes time.

But the results are incredible.

Last week, the Superintendent, who on a weekly basis conducts surprise visits to foundation remediation underway throughout the affected area, visited the site of a condo remediation just prior to the pouring of the replacement foundation. To say that the lift of a condo platform is a major feat of engineering…is an understatement.

Many more condo associations have stepped up and made their applications to CFSIC. Many more than most people realize are in the affected area. We are encouraging condo association presidents to reach out directly to the Superintendent’s office with any questions they have about what a remediation entails and how best to move the process along.

A big part…a very big part…of CFSIC’s mission to restore the property tax basis in the towns in question are condos. Condos will continue to be a vital part of the fulfillment of our mission.

Accepted or Declined?…

(March 16, 2026) This week, what we’re not speaking about is having your CFSIC claim accepted or denied…it’s about having your homeowners insurance company accept or deny your crumbling foundation claim.

By now, pretty much everyone knows that we can’t pay a claim at CFSIC until you have filed a claim first with your homeowners insurance company and received their written determination. We just can’t do it.

We still get many emails and phone calls from potential claimants and actual claimants about this issue. Many of these emails and phone calls contain pretty much the same phrase: “My insurance company is not going to pay it anyway…why are you making me do this?”

First, we do it for one simple reason. You have paid a premium to a commercial homeowners insurance company. In return, that company has issued an insurance policy to you. That policy is a contract under Connecticut law. You owe it to yourself, and you owe it to your fellow taxpayers who are footing the bill at CFSIC, to file a claim first with that insurer.

Secondly, believe it or not, some insurers have actually paid these claims or made payment in partial satisfaction of the claim. Believe it. It’s true. When a partial claim has been paid, we do a calculation at CFSIC supplementing that claim payment with CFSIC funds if appropriate. But we can do nothing at all until the commercial insurance company acts first. That fact is actually written into the law that created CFSIC to begin with.

CFSIC will never be a primary insurer of anyone’s home in Connecticut. CFSIC will only always be a claim payer of last resort, and only then by way of a claim paid for a verified crumbling foundation.

So, what can cause the longest delay in your CFSIC application process and progress? It’s the “determination letter” you get from your homeowners insurer. It’s going to take a while. It’s going to require, for the most part, an inspection of your home’s foundation by a claim adjuster or engineer hired by your homeowners insurance company.

Know something else about this process…it’s the only part of the process you don’t control. Yet, for many claimants coming to CFSIC, it’s the last part of the process they pay attention to. It should be the first.

We read many comments on social media about how it can take two years or more (and sometimes three years or more) to get a CFSIC claim for a crumbling foundation fully paid. To be clear, when you dig deeper, you many times find out that it’s not CFSIC behind the delay. Generally speaking, it’s the homeowner. What’s a common cause of the delay? A failure to put that commercial insurance company claim for a crumbling foundation front and center.

To our friends in Massachusetts, for whom we hope relief is on the way: pay attention to what we have written. Build this process into your thinking and into your enabling legislation. When you think about it, it just makes sense.

Activating Your Claim…

(March 9, 2026) We begin this week by reminding everyone that your crumbling foundation claim with CFSIC can be categorized in one of three ways: Pending, Inactive, or Active.

A “Pending” claim is, simply put, a claim that the great claims staff at ESIS have not yet opened. They haven’t yet looked at what you submitted with your application They haven’t evaluated your claim yet. They’re going to get to it as soon as they can. Claimants who applied before you get priority.

An “Active” claim is just what the word implies…your designated claim adjuster at ESIS has been working with you for some time, and you have supplied that adjuster with all the supporting documentation needed and have been responsive to their questions. You’re out getting contractor proposals. You’re moving ahead to get your adjuster everything they need to move you quickly into line for the ultimate goal: the Participation Agreement.

So, what is an “Inactive” claim?

It’s pretty simple. You may have filed an application only, without any of your supporting points of evidence. You may have supplied some points of evidence with your app, but not all. You may have supplied all points of evidence, but the adjuster has reached out to you with questions, and you have not responded.

That’s the problem…and it’s a continuing problem. People who file claims with CFSIC and then just simply drop out of sight. They don’t cooperate with reasonable requests for more information. They don’t return phone calls or emails. They don’t respond to letters.

It’s counterintuitive. You have a crumbling foundation, and you took some preliminary steps to get the help you needed…and then you stopped helping CFSIC to help you.  Believe it or not, some claimants actually forget they filed a claim with CFSIC.

The push is now on to make Inactive claims Active. The push is now on to help people catch up with what they need, to get them over the goal line to a PA. However, CFSIC can’t force people to show an interest when there is no further interest in proceeding, and the Superintendent has directed that starting shortly we’ll begin weeding out the folks who have just disappeared. What does that mean? It means that their claims will be closed.

We’ve got claimants in need. And as that need goes on and on, and we push towards our sunset date of June 30, 2030, we must prioritize the people who start the ball rolling and then keep the ball rolling towards the goal of a return of their homes’ equity and safety.

The CHFA Crumbling Foundations Loan Program Is Suspended…

(March 2, 2026) CFSIC learned only last week that the CHFA loan guarantee program, designed to help homeowners get through remediation with moderate-sized, low interest rate loans through participating banks, is no longer operating.

We had no prior knowledge of this, and it was only brought to our attention because concerned homeowners reached out to try to obtain loans and were told that they could no longer do so. They in turn reached out the ESIS claim staff with the news that the last of the three banks who originally participated was no longer doing so, and the Superintendent was then informed.

The Superintendent has confirmed with CHFA that the last bank stopped participating in August 2025. The moment we found out, the Superintendent directed that the link hosted on this site to the CHFA program be taken down.

The Superintendent and his staff are at work trying to find replacement banks. This may take some time…and, to be clear, we may be unsuccessful. But that doesn’t mean we’re not going to try.

For those claimants who had hoped to be able to use one of the designated banks for a low interest loan to complete, for example, Section 2 or 3 costs not otherwise covered by CFSIC, we still encourage you to try your local bank. The Deputy Superintendent and the Superintendent are available to meet with any local bank to answer questions about how CFSIC works and about how CFSIC enables the remediation of foundations for the victims of this crisis.

What has occurred here is unfortunate. Rest assured that the Superintendent and his staff will use all their efforts to try to re-establish this important lifeline for those in need.

Spotlight on CFSIC’s Annual Report…

(February 23, 2026) From time to time, the Superintendent’s office receives requests from the public for help in understanding and interpreting CFSIC’s Annual Report.

First, CFSIC has been issuing an Annual Report through the Superintendent’s office since September 9, 2019.

To view the current Annual Report (October 31, 2025) and all prior reports, go to the “Useful Links” page of this website.

CFSIC makes every effort to be transparent in much of its operations and activities, and the Annual Report, which the Superintendent makes to CFSIC’s volunteer Board of Directors, is an important part of that transparency.

So what exactly does CFSIC’s Annual Report contain?

First, the data range is important, because it’s always relevant to cite as of what date the data in the report is valid. In the case of the 2025 report, the data contained in it was valid as of September 30, as well as October 31, of 2025.

Secondly, there’s always a paragraph about total projected future funding, which we know is of interest to the victims of the crisis and to everyone who supports remediation efforts.

A key part of the Annual Report is CFSIC’s commitment to outlining its current financial status and making certain that everyone understands how the state of CFSIC’s financials and its funding impact its ability to carry out its mission.

In CFSIC’s Annual Report, comments about expenses can be found as well as its general operations. The application process and how well that is going is also commented on.

In the October 31 Annual Report, the announced sunset date is also highlighted, which will be June 30, 2030. Again, CFSIC is all about transparency.

Within the Superintendent’s office, most of the questions we get about the Annual Report are concerning the towns shown and the activity of remediation in those towns. Many of the questions we receive indicate the public’s belief that the crumbling foundations crisis extends to towns well outside the orbit of where the crisis has been most notable.

Here’s the key to understanding one aspect of the data presented in the CFSIC Annual Report…it is easy to mistake the existence of applications from a town as meaning that the town has a crumbling foundations crisis.

We can understand why some people would be confused. If you look at the Annual Report under the city of Hartford, you’ll see five applications. But if you follow the line for Hartford all the way to the end, you will see that $0 has been paid to date and $0 exists in outstanding claim liability. What does this mean? It means, in the case of Hartford, that of those five applications none to date are valid for remediation.  Take a look at New Britain, where there have been four applications…but, again, no paid claims and no outstanding liability.

Why would we continue to keep track of applications we receive if there aren’t going to be any claims paid in those towns?

Because CFSIC’s position is that every application we receive is worth evaluating from top to bottom. We need to honor and respect the efforts of citizens who believe they may have a crumbling foundation and have taken the trouble to apply. Our legislators, Governor Lamont, and everyone in state government expect us to maintain an accurate tally of the activity we’ve had within CFSIC.

But now contrast that with the 416 applications we’ve received from Vernon and where there are total claim payments of $24.8 million and outstanding known claims of almost $7 million in that town alone.

Every application we receive at CFSIC is important. Every attempt by a homeowner to reach us for possible assistance is valued. The Annual Report of the Superintendent to the Board of CFSIC is the best way to get the most complete idea of how CFSIC is doing.

More Condos on the Way…

About a year and a half ago the Superintendent predicted that there would be a “second wave” of foundation remediations needed.

That second wave is now upon us.

What’s notable about the second wave is the number of new condos now in need of remediation. We don’t find this surprising at CFSIC. What was a Severity Class 1 four or five years ago many times can migrate to a Severity Class 2 or 3. Why? A pyrrhotite infection can metastasize. That’s the key to understanding this crisis.

There’s another thing we all need to understand…and that is that condos take time. Early on in CFSIC’s life there was a lot of impatience shown about how quickly we were getting to condos. But the reason condos take more time is clear to anyone who owns a condo.

If you own a condo unit, you don’t own the foundation beneath you (with one notable exception in the affected area). Your association owns the foundation. You as a condo owner cannot quickly do what a homeowner with a stand-alone home can do…which is quickly obtain foundation remediation proposals and make a decision on your own. Condo owners can’t do that.

Condo associations are run by boards of directors. Decisions made by boards take time. Boards have a fiduciary responsibility to act deliberately (read “slowly”) and prudently. They are in fact spending other people’s money when they act. If assessments to individual condo owners are due, condo boards must wrestle that to the ground, and that’s a tough one. Bank loans may need to be negotiated where there might not be much collateral. The condos that CFSIC has remediated all took time. Some thought too much time…but that’s because many people don’t understand what it takes to remediate a condo association. What is takes to lift a foundation platform with eight units that is 200 feet in length and lift those units not separately but together at one time.

The “second wave” is upon us. And over the next two years CFSIC will remediate dozens more condo units in the affected area. Patience will be required. Understanding of the process will be required. But CFSIC will get the job done.

After You Get Your PA…What Comes Next?

Well, the most important thing to do is to read the email that transmits the Participation Agreement to you.

If you follow the directions carefully and return not only your signed PA but all other documentation requested, it generally takes no more than 36 hours for the Superintendent to countersign the PA and allow the remediation process to begin.

Following the directions is really important…it goes quickly if you do.

But what comes after that?

The hard part is all over. The application process is done. All the supporting documentation has been received by your claim adjuster. The Superintendent has countersigned your PA. It’s on to remediation!

Your contractor knows what the process is. The contractor will invoice ESIS for the necessary deposit on your remediation. ESIS will pay the deposit promptly. The deposit will be held by the contractor as the first payment on your remediation…and this is true whether the remediation starts in a month or starts in 18 months.

OK…so now what’s your responsibility as the homeowner and as a victim of the crisis?

From this point, the most important thing you can do is make sure you’ve spoken to your contractor and the two of you have penciled in a date for your remediation to begin. If you’re not serious about remediation, if it suddenly becomes “inconvenient” to start cleaning out your basement and you postpone your project for too long, please note this: you can be removed from the program.    

Homeowners who have fully executed PAs, which means that their claims are funded, are actually standing in front of people who need those funds. If you’re not serious about proceeding, your funds can be reallocated to someone else.

The process of getting your crumbling foundation replaced is a long one…we know, because the Superintendent has personally signed more than 1,500 PAs. But once your funding is committed…get a date for remediation with your contractor. Proceed faithfully and realistically…and look forward to the day when you’re back in a safe and secure home.

Choosing Your Contractor…

(February 2, 2026) Remember, with the CFSIC program, you get to choose your contractor.

The first step is to go to CRCOG’s website.

On this site, you will be able to view a list of contractors that have been carefully vetted by CRCOG as part of their service to the many communities impacted by the crumbling foundations crisis. CFSIC only permits homeowners to choose from contractors shown on the CRCOG website. (Look carefully…you will see a handful of contractors on the site who are not eligible to receive funds from CFSIC.)

Here are some helpful hints to help you choose:

– When you reach out to a contractor by email or phone, do they respond to you in a reasonable timeframe? (Do not expect an instant response all the time…during the day, they’re doing what they’re supposed to be doing: remediating foundations.)

– Check references. Our recommendation is to get a minimum of three. Call those homeowners. Find out what the process was all about. Ask questions. Write down the answers.

– Don’t do everything by phone or email. Insist on an in-person meeting with the contractor. Experienced contractors have seen it all. There is not apt to be anything about your foundation and the layout of your home that they have not already encountered. Experience counts.

– Read the contractor’s proposal carefully before you sign it. The single biggest cause of difficulty between homeowners and contractors is not the quality of workmanship…it’s the fact that the homeowner didn’t read and understand the contract or understand the differences among Sections 1, 2, and 3 of the proposal.  They thought something would get done on CFSIC’s nickel…it didn’t get done, because the contract said it wouldn’t or said it would be the homeowner’s responsibility to pay for…and a dispute arises accordingly.

Think of it this way: 78% of the taxpayers of the state of CT are subsidizing as much as $205,000 of remediation assistance for 22% of the taxpayers. You owe it to the 78% to understand, to ask questions, and to make sure you’re satisfied before you sign on the dotted line.

Approaching $200 Million in Construction…

Contrary to what has been written about remediation efforts…a number of contractors work through the winter months, and much of the work of CFSIC proceeds. It’s true that some contractors cut back their schedules, but that is not universal within the program.

In the coming weeks, CFSIC will hit another milestone. In a relatively short amount of time, CFSIC will have spent $200M in remediating Type 1 and reimbursing Type 2 victims of the crumbling foundations crisis. $200 million is a lot of construction. But what we think is important is that it is less about the numbers and more about the number of people we’ve helped. It’s always important to remember and to reiterate that CFSIC is the only recourse for those families stricken with this crisis.

The Change in the Cap Is Official…

Beginning today, January 20, 2026, the cap on CFSIC’s allowable concrete costs has increased to $205,000 for stand-alone home foundations and $82,000 per condo unit.

This $15,000 increase in contractor Section 1 allowable costs for stand-alone homes and $6,000 in allowable costs for condo units not only gives room to contractors who are hard-pressed to keep their costs competitive with rising expenses in the construction marketplace…but it should also go a long way to helping homeowners with unforeseen Section 1 costs that they must absorb.

This increase is not a “magic bullet.” It doesn’t fix everybody’s problems. There will be contractors who feel it is not enough. There will be homeowners who believe we have treated them unfairly because they live in large homes.

The cap increase is designed to help both homeowners and contractors, and it is equitable given the fact that we must use our funds wisely and spread those funds among as many victims as we can.

Now here’s the real message. And it’s really more than one message. If your claim is currently Inactive…what are you waiting for? Do what you can to make it Active. If you have been putting off applying for assistance…why? CFSIC will stop taking new applications at 5:00 PM on June 30, 2030.

Another Milestone Achieved…

This past weekend the Superintendent countersigned a Participation Agreement providing assistance to the 1,500^th claimant in the CFSIC program.

That’s one thousand five hundred times that claim funding has been made available to a victim of the crumbling foundations crisis. That’s 1,500 homes returned to the tax base at their full and appropriate value…benefiting the 47 towns in the affected area…enabling those towns to provide needed services to all citizens.

1,500 families have been returned to homes that are safe and secure, and where CFSIC was the only option for help.

More on the Change in the Cap…

Last week, CFSIC announced an increase in the cap (see the news release from last week below the Q&A) to take effect on the morning of January 20, 2026. We’ve been fielding questions about this important and meaningful change in the amount of claim funding available for the victims of this crisis, and we thought that the following additional Q&A might be of help in understanding what is to come.

Question: Why do I not qualify for the new cap amount even though my neighbor has? We applied almost on the same day.

Answer: The date of the application is not relevant to the change in the cap. Eligibility for the increased cap is determined by the date of the proposal. 

Question: I submitted my proposals after January 20, 2026. Why don’t I qualify for the new cap?

Answer: Because in order to qualify for the new cap, your written contractor proposals must be BOTH dated and submitted ON OR AFTER January 20, 2026.

Question: What if a CFSIC adjuster receives one of my two minimum proposals dated prior to January 20, 2026 and one of those proposals dated AFTER January 20, 2026?

Answer: If you submitted a proposal both dated as well as submitted before January 20, 2026, that proposal is subject to the old cap. All subsequent proposal submissions for that home will also be held to the old cap, since you obtained and submitted at least one proposal BEFORE the cap changed.

Question: For multi-unit PUDs or duplex claims, if one or more neighbor on a shared foundation platform submitted proposals dated as well as submitted before January 20, 2026, and others on the platform subsequently submit proposals AFTER January 20, how does CFSIC determine which homes are eligible for the increased cap?

Answer: In this case, the neighbor who submitted the proposal before January 20 triggered the old cap as applying for all neighbors sharing that platform.

Question: My contractor validly revised my proposal after January 20, 2026. Does this make me eligible for the new cap?

Answer: If the initial proposal was dated before January 20, 2026, even a valid reason to change the proposal, and not only re-date it but re-submit it on or after January 20, does not qualify you for the new cap. Eligibility is based on the date of the first proposal. 

Question: If I withdraw my existing claim (I applied before January 20) and, after waiting a while, I then reapply for assistance but after January 20, 2026, can I qualify for the new cap?

Answer: No.

A Change in the Cap…

Effective January 20, 2026, the cap on CFSIC allowable remediation expenses will increase from $190,000 to $205,000 for stand-alone homes and from $76,000 to $82,000 for condos.

As most of you are already aware, CFSIC defines and caps the amount of allowable costs it will pay for “contractor Section 1 expenses” enabling the equitable distribution of available funding to as many claimants as we can.

In order to clarify the conditions under which the new caps will apply, we’ve prepared what we hope is a helpful Q&A.

Question: I submitted my two contractor proposals to my ESIS claim adjuster about six weeks ago, and both were approved. I signed one of the approved proposals, and now I’m in line to receive my Participation Agreement. How does this new cap affect me?

Answer: It doesn’t. The cap of $190,000 was in effect at the time your proposals were submitted to your ESIS claim adjuster. The old cap of $190,000 will apply to your remediation.

Question: I was just made “Active” a few weeks ago and am just now soliciting bids from eligible contractors for my project. At this point, I don’t expect to be able to have the minimum of two proposals in front of my adjuster at ESIS until the end of January. Will the new cap apply to my project?

Answer: It will IF your proposals are both FIRST DATED and FIRST SUBMITTED to ESIS on or after January 20, 2026.

Question: I’m an “Inactive” claimant. My homeowner’s insurance company is taking a long time to give me a determination on my crumbling foundation claim. Will I potentially have the benefit of the new cap once I get my Participation Agreement?

Answer: Potentially…if, once you become an Active claimant, the proposals provided to you by contractors are both dated and submitted on or after January 20.

Question: I think what’s happening here is unfair. I went into the PA line in early October with a proposal under the old cap of $190,000. Why can’t my contractor be permitted to just tear up the old contract and start fresh with a new one at the new cap? I think that would be more fair.

Answer: Actually, it wouldn’t. You are in the Participation Agreement line, which puts you theoretically and practically ahead of someone who is not in line with respect to getting their foundation replaced. Compare that with someone who is still trying to obtain the necessary two proposals, and where those proposals won’t even be submitted to the homeowner for review until after January 20. Remember, by being in the Participation Agreement line, you have a distinct advantage over someone who is not in line yet or even close to being in line yet.

Question: I already have one proposal in front of my ESIS adjuster for that person’s review. I don’t expect the second one until the last week in January. How will the cap change affect me?

Answer: The first proposal is subject to the $190,000 cap…and because that proposal came in before January 20 (dated and submitted to ESIS) under the old cap, the second and any subsequent proposal will ALSO be subject to the old cap…even though it came in after January 20.

It’s important to remember something about the affected area: CFSIC remediates the foundations of homes with 1,900 square feet and also remediates homes with 5,000 square feet. The cap applies equally everywhere to Section 1 remediation costs. The only way that CFSIC can make this process a fair one is to apply the cap across the board, regardless of the size of your home.

Lastly, CFSIC has heard for several years now that the cap doesn’t work, it’s not enough, etc., etc. CFSIC’s current average foundation remediation Section 1 costs are $154,236. The cap has always worked if the goal has been to replace a pyrrhotite-infected foundation with one that is not. This new cap takes into account increased contractor costs for both materiel and labor, and will further reduce, for those with larger homes, the impact of additional out-of-pocket expense. It’s fair all around.

Some Questions and Answers…

Recently, we’ve received inquiries by phone and email concerning who is eligible to apply if a person has had full or partial ownership in a home where there has been a foundation remediation paid for by CFSIC. We thought it would be a good time to publish several of the questions we’ve received from the public and provide answers.

Question: My husband and I had the foundation of our home in Ellington replaced by CFSIC in the Spring of 2023. We sold that home and have bought a new home in Ellington with an existing crumbling foundation. Are we eligible to apply again?

Answer: No. Because you and your husband were the co-owners of a home where CFSIC replaced the foundation, you have already had the benefit of a single taxpayer-funded replacement. You can never have another.

Question: But it was me who applied to CFSIC for that remediation. The application was in my name and not my husband’s. If my husband applies for a new remediation in his name, why isn’t he eligible?

Answer: Because he was the co-owner of a home where the foundation was remediated by CFSIC, and as a result both he and you have had your one chance at receiving this taxpayer-funded benefit.

Question: When CFSIC first opened its doors, the foundation of my unit within a planned unit development, as well as that of my neighbors sharing the foundation platform, was remediated by CFSIC. I’m thinking about buying a stand-alone home for sale now in my town. Can I avail myself again of the CFSIC program?

Answer: No.

Question: But I shared that foundation platform with three other unit owners. Isn’t that important?

Answer: It is not relevant. In a planned unit development, the owner of each unit owns the foundation space directly under their unit…the same way a person with a stand-alone home would own their foundation. The fact that your foundation space is on a shared platform with other unit owners is not relevant. Under CFSIC’s guidelines, you’ve had one paid claim and you can never have another.

Question: I live in a condominium complex, and my neighbors and I had our foundation remediated by CFSIC just last year on a shared platform. Like almost all condo situations, we don’t own the foundation, the association does. I’ve just sold my condo unit and have applied to CFSIC for a stand-alone home in a different town in the affected area, where I have a report indicating that the foundation is a Severity Class Code 2. Am I eligible to file an application with CFSIC for that new home?

Answer: Yes. CFSIC’s acceptance of an application and its payment of a claim is always subject to its Underwriting and Claims Management Guidelines at all times…but the fact that you once owned a condo unit, where the foundation shared among you and other unit owners was remediated by CFSIC, does not disqualify you as, in this case, you never owned the foundation beneath your unit…it was owned by your association. Occasionally, there are exceptions where, for the purposes of CFSIC’s guidelines, a condo can actually look more like a planned unit development. However, this is rare.

Question: Okay. I think I get that. So, if CFSIC replaces the foundation in my new home, can I ever apply again and get another one done?

Answer: No. Because CFSIC will have paid for one foundation where you are the direct owner of that foundation, and you will never be able to apply again.

Question: My husband and I owned one of the very first homes remediated by CFSIC. That was in 2020. We are now divorced, and I’m buying a home in South Windsor on my own for the first time. My former husband was the original applicant and completed all the paperwork. Will I have any problems applying to CFSIC for a remediation for my new home now that I’m a single person?

Answer: You will be disqualified. This is not about marital status, and it is not about which one of you originally completed and signed the application…this is all about one simple fact: at one point you were the co-owner of a home where the foundation was remediated by CFSIC, and as such you have received, as that partial owner, the sole, one-time benefit payable under the program.

What is the takeaway here?…CFSIC claimants get “one bite at the apple.” CFSIC’s funds are limited. We must do our best to make certain that all claimants are treated fairly at all times and as many victims as possible have access to claim funding. The intent of the CFSIC program is to make certain that every victim gets one shot at a remediation. We think it is important that the public understand that once a direct owner of an eligible residential building has had the benefit of a CFSIC remediation…that has to be the end of the line.

If You Live in the Epicenter of the Crisis…

Take a look at the Superintendent’s Annual Report (PDF) to the Board of Directors of CFSIC.

Do you live in or near the epicenter of the crumbling foundations crisis? The answer is simple to find. Open up the Superintendent’s Annual Report and go to the embedded table, and take a look at the column labeled “Total Claim Payments to Date.”

Those are the towns. That’s where 94% of the crisis exists. Four years from now, that’s exactly where the crisis will still exist.

Remember a few things about the CFSIC program:

– We permit an application to be filed even if your foundation is judged to be a Severity Class Code 1. (We can’t remediate a Severity Class Code 1 foundation…but if your foundation is evaluated to have migrated to a more significant Severity Class Code, you will get preference because you applied early.)

– Your claim file is held confidential…no one can see it except persons associated with the CFSIC program. Your application isn’t published. It isn’t given to anyone.

– CFSIC will sunset on June 30, 2030 at 5:00 PM. If your application is already in our system by that date, and your foundation has been determined to be a Severity Class Code 2 or 3…we will stay with you until you are remediated (subject to the cash we have on hand). Can Severity Class Code 1 foundations migrate over time to something more severe? Yes, they can and do.

Our message is clear. Look at the Annual Report. Look at the towns where this crisis exists. Apply now.

A New Link for Certified Professionals…

In the month of December, CFSIC will be certifying on a first-time basis or re-certifying home inspectors and professional engineers to assist homeowners in identifying the extent of the crumbling foundations crisis.

To help this effort and to help the public understand the importance of the CFSIC certification program, we’ve established a new certified professionals page on this site.

This page will be housed as the first new link on the “Useful Links” page of this site and is designed to be an easy reference point for information for our certified professionals…and it will also be the place to go for homeowners and all members of the public to learn more about how the certification program contributes to the remediation process at the very earliest stage of that process.

We encourage the public to become familiar with this page. The first step in CFSIC’s foundation remediation process is now and will remain the results of a written foundation visual inspection report conducted by a CFSIC-certified professional.

CFSIC’s Audit Is Now Online…

Read CFSIC’s ’24-25’ audited financial report (PDF). The Board of CFSIC approved this audit unanimously at their recent board meeting.

CFSIC is taking the position that its audited financial should be available to the public to review and understand. It’s important to remember that CFSIC is audited twice each year. Every insurance company must file a statutory audit with the Insurance Department…but CFSIC is different: it must also be audited separately by independent auditors to meet state requirements. That’s two audits per year times seven audits…fourteen times that CFSIC’s financials and its operations have been independently reviewed and tested.

CFSIC is the acknowledged example worldwide of the effective and creative use of a captive insurance company for the benefit of the public…in this case, a public where no other recourse but CFSIC exists. We are now in the ’25-’26 fiscal year, and each day at CFSIC we strive for transparency and excellence.

When You Get Your Participation Agreement…

It’s very important to be in touch with your selected contractor to schedule your proposed foundation remediation start date once your PA is countersigned by the Superintendent.

Remember…there are no surprises with the CFSIC program. Your contractor gets a copy of your countersigned PA…so they are expecting your call.

CFSIC staff will audit all PA recipients, and those who do not have remediation scheduled will eventually be contacted and asked as to why.

It’s also important to remember that if, when you get your PA, you delay scheduling your remediation, the Superintendent’s office will naturally have the impression that you’re no longer serious about proceeding, and, over time, after a lengthy delay you should not be surprised if the Superintendent removes you from the program. Why? Because with your lengthy delay you are effectively blocking a family in need…in need of those funds…who is prepared to move quickly. There are many of those families in need.

Once your PA is countersigned and returned to you, your first call should be to your contractor. Schedule your remediation. If the date has to change, then it may have to change. Scheduling is between you and your contractor…but the Superintendent requires claimants with countersigned PAs to get serious and stay serious about getting their remediations done.

And lastly, there’s something even more important to remember. 78% of the taxpayers in CT do not now and never will live in a town with a crumbling foundations crisis. They are supporting the 22% who do and who will. Those 22% owe the 78% something important: a commitment to getting remediation done. Once your countersigned PA is in your hands, don’t delay. Don’t run the risk of your funds being transferred to someone else in need.

Are You Applying for the First Time?…

This site has been designed to give applicants to the CFSIC program easy-to-obtain information about how the program works and how an application can be completed. Here are some basic things to remember…

The “For Homeowners” section of this site (look above…it’s right there) contains 21 helpful links that will take you to great information and information that is easy to understand. How to you transfer an existing claim? The answer’s right there. How do you see a list of certified home inspectors and engineers to help you? It’s right there. How do you apply? It’s right there.

Need help completing an application? We’ve prepared a 12-minute video to walk you through the process. Go here to view it.

Want to know if you already live or are buying a home in the affected area? Go here and look at the table embedded in the 2025 Annual Report (PDF).

Want to learn more about CFSIC? Look right above where you are reading and click the section “About Us.”

Have a question about the program? Again, look right above where you’re reading and go to “FAQs.” There are 53 questions and answers that should get you most of the information you require.

Lastly, do you still have questions? Are you confused about any part of the process? You can reach the ESIS ProClaim hotline at (844) 763-1207 or you can email the Superintendent’s office at info@crumblingfoundations.org.

You may have as much as $190,000 in benefit if you are eligible and meet all of our criteria. Investing a few minutes of your time is the first step.

CFSIC’s Annual Report…

Read CFSIC’s 2025 Annual Report (PDF).

As in prior years, from the inception of the company, the Superintendent has filed a report with CFSIC’s Board of Directors summarizing the operations of CFSIC and providing a “State of the Union” overview of how CFSIC is doing.

We file these reports on CFSIC’s website as part of our continuing process of offering transparency to the public with regard to all of our meaningful operations.

Re-visiting the Rules of Business Conduct…

CFSIC-certified home inspectors and those professional engineers voluntarily becoming certified…with both then able to provide foundation Severity Class coding analysis and reports that CFSIC uses to determine funding eligibility…are subject to a document containing rules of business conduct. Read this document (PDF).

CFSIC vigorously enforces these rules of business conduct and will remove a certified professional from the program who does not adhere to them.

You should be able to expect professionalism and objectivity from a CFSIC-certified professional. When you hire a certified professional, you are putting the future of your home in that person’s hands. You deserve the best.

We welcome comments from victims of the crisis regarding their experiences with certified professionals. You can always reach us at info@crumblingfoundations.org.

Do You Have the Contractor’s Worksheet?…

If you are an Active claimant who has made it into the Participation Agreement line and are waiting for funding, a key component of the documentation you should have in your possession is the contractor’s worksheet.

This is what it looks like (in an uncompleted version).

You will need it.  It’s one of the three pieces of documentation that you must return to the Superintendent’s office in order for your funding to be released.

Why is this important?

It’s very important, because this is where the numbers come from. This is the Excel worksheet contractor’s use to calculate allowable costs in order to complete their proposals. The total of these calculations represents the total of your entire project (things that CFSIC will pay for as well as things we won’t)…most importantly showing the total of Section 1 allowable costs broken out, subject to the current cap of $190,000 for stand-alone homes.

To be clear, the worksheet is usually a separate document provided to you by your contractor, but in some cases the contractor embeds the worksheet into the proposal…either way, you have to have it in your possession. It’s a necessary part of your documentation.

With a fully completed and fully signed contractor proposal, and your signed and witnessed Participation Agreement, it is the last piece of the puzzle that gets you your funding.

Check your files…if you don’t have it, ask your contractor for it.

The single biggest reason for a delay in funding, once a homeowner’s turn in line comes up, is a missing contractor’s worksheet. Don’t let a single sheet of paper stand between you and a foundation remediation.

Spotlight on Ashford

In this week’s Latest News, we focus on Ashford…a town deeply affected by the crumbling foundations crisis…a town in the middle of the epicenter of the problem that is affecting so many families.

Here are some important facts and figures for those interested in the known extent of the crumbling foundations crisis in this town:

– CFSIC has had 60 registered claimants since its inception on January 10, 2019.

– Of this number, 3 are currently Pending claimants.

– CFSIC has recorded 54 Type 1 claimants where Severity Class codings have been independently verified…36 of these are Severity Class 3.

– CFSIC has paid $5,034,631 in foundation remediation and reimbursement claims to date.

– Currently, CFSIC carries on its books outstanding claim liabilities for known claimants of $2,624,041. (The Pending claims noted above are not yet accounted for in these carried and booked liabilities.)

– CFSIC has completed 27 foundations in Ashford for a total value of $4,228,419. This results in an average replacement value for allowable costs of $156,608, which is approximately $33,000 below CFSIC’s current cap on allowable costs of $190,000 and approximately $18,000 below CFSIC’s original cap of $175,000.

As we gauge the extent of the crisis affecting not only families but also the needed tax revenues in the towns affected, it’s important to remember what we always say: “At CFSIC, we count our victories one family at a time.”

Setting a Date…

Once your Participation Agreement has been countersigned by CFSIC’s Superintendent, the next step is scheduling your remediation.

We at CFSIC understand that people’s circumstances can change…because of a change in circumstances, once you settle on a date for remediation with your contractor, that date may have to change because of issues that either you or the contractor might have to deal with. But here’s what’s really important: get a date scheduled.

Beginning in January 2026, the claim adjustment staff at ESIS will begin auditing outstanding PAs to determine, in conversation with contractors, whether a start date has been scheduled in all cases where the Superintendent has countersigned a PA. If we uncover an example of where a date has not been set, the Superintendent’s office will contact the claimant and ask why. Under certain conditions, the Superintendent reserves the right to cancel a PA and remove funding from a claim if he believes that the claimant is not serious about remediation. If funds are removed from a claim, they get re-assigned to the next claimant in line.

So, here’s what’s important…schedule your remediation. Make an effort to demonstrate that you intend to follow through with the restoration of your home as quickly as it can be done.

Our Training Continues…

CFSIC is committed to the certification of new home inspectors and professional engineers, and the annual re-certification of those professionals who have been with our program now for multiple years.

The next round of certification training will occur on December 4 and 9, with the course work being conducted by Kevin Miller, CFSIC’s concrete specialist.

Not only is this a day-long certification/re-certification course, the day ends with a vigorous examination, which we’ve made even tougher this year and with a greater possibility of a high failure rate. What’s the object? Continually update and refine the certification process using new information, improved data, and tighter controls.

In late November, CFSIC will also modify this website to include a separate section for home inspectors and those professional engineers who have become certified. These modifications will improve communication, set new standards for the delivery of Severity Class code reports, and provide ways for certified professionals to reach out to Kevin Miller and other consultants for assistance when they encounter unusual presentations of foundation deterioration.

CFSIC is committed to the visual inspection process as being the backbone of our efforts at remediation.

View Kevin Miller and Michael Maglaras in conversation.

Bond Allotment Received…

This past week CFSIC received its most recent bond allotment from the State of CT. We are grateful to Governor Lamont, the CT Bond Commission, and the Department of Housing for their continued broad support of CFSIC and the citizens going through the crumbling foundations crisis. With these funds…and the Healthy Homes surcharge funds we received recently…we will be able to continue our mission right through the close of the current fiscal year on June 30, 2026 without interruption. This will be the first time we’ve been able to do so.

With the receipt of these funds and the commitment by state government for another $100 million in bonding, we encourage prospective claimants to apply now. Get in line. Let us know who you are and where you are. We are here to help.

Change to Our Underwriting Guidelines is Official…

Effective 9/23/25, CFSIC’s Underwriting and Claims Management Guidelines have been officially modified to permit the adjustment of Severity Class coded 2 and 3 condominium foundation platforms to occur at the same time. This change will enable greater operational efficiency in the adjustment of condominium claims and also enable the victims of the crisis to move back into their homes with greater speed.

Celebrating the Solution…A New CFSIC Video

Today we launch a new video introduction to the CFSIC program and how CFSIC is the solution to the terrible crumbling foundations crisis which has affected so many families.

(The great video of the Superintendent and Kevin Miller, which was featured on the landing page for many months, has now been moved to the “Useful Links” section of this site.)

In the new video, we feature the process of a full remediation of the foundation of a home in the affected area. It’s important to remember as you view this new video that the CFSIC program is all about people helping people. There is no better example of this than CFSIC, which gets its financial support through a statewide effort…an effort making foundation replacements possible through people helping people.

CFSIC’s Annual Report…

CFSIC’s Annual Report will be published during the last week in October. We are still collecting data that we believe will be an important part of this report. Stay tuned for that.

Some Facts and Figures…

We at CFSIC are encouraging eligible homeowners to apply now.

It’s very important to make a claim with CFSIC if you live in the affected area, are in a neighborhood where remediation is now taking place or has taken place over the last five years, or where the results of a visual inspection reveal any foundation deterioration as a result of a pyrrhotite infection.

CFSIC is the world’s largest repository of data on the crumbling foundations crisis. This week we bring the public up to date with some “facts and figures”:

– Number of claims covered by Participation Agreements: 1,551

– Total amount of construction paid to date: $183,831,709

– Cost of average Type 1 foundation remediation (CFSIC allowable costs): $138,967

– Total carried reserves for known claims not yet paid in whole or in part: $76,049,640

– Total probable value of existing Pending claims (for which no reserves are yet held): $18,564,000

– Number of Severity Class 3 and 2 claimants currently in litigation with their homeowners’ insurance companies (and therefore not currently eligible to become an Active CFSIC claimant): 0

We continue to make progress each day in our battle against the crumbling foundations crisis, which is affecting so many citizens in the Northeast Corner of Connecticut.

Important Changes for Condos…

Today the Superintendent has directed that CFSIC make important changes to the way condo remediations can take place in the future.

CFSIC’s Underwriting and Claims Management Guidelines have, from the inception of the company, required that Severity Class 3 foundations take precedence over Severity Class 2 foundations in terms of access to funding. Again, this rule has been in place since we opened our doors on January 10, 2019.

This rule will continue to be in effect for stand-alone home remediations.

However, the Superintendent has directed that, with specific regard to condos, condo associations will no longer be required to sequence Severity Class 2 foundation platforms, within the same association, after Severity Class 3 foundation platforms. (Remember, it is possible for the visual examination and assessment of a condo association’s foundations to reveal multiple affected foundation platforms each with a different Severity Class code.)

Under the new rule, an entire condo association’s affected platforms may be remediated under one schedule, if that’s the association’s wish… regardless of whether a mixture of Severity Class codes 2 and 3 exists.

What this means is that if a condo association applies to the CFSIC program with a mix of Severity Class 2 and 3 foundations, the association can seek remediation proposals from contractors for all Severity Class 2 and 3 foundations at the same time.

How does this benefit condos?

– If contractors can schedule all the work within a defined timeframe and not have to wait for Class code 2 work to be done under a different timing sequence, then families will have a better idea as to when they will need to seek alternative living arrangements.

– Condo association boards can negotiate a best price from contractors because the whole project can be priced at the same time.

– If the association is seeking construction loan support from a bank, an entire loan can be negotiated once, with terms and conditions locked down for one unified project.

– The association would potentially only require one set of homeowner financial assessments, if any are needed.

This new change will streamline the procurement of proposals, force contractors to sharpen their pencils, and enable what has been up to this point a multiple-year process to be reduced to a more manageable time span.

The important point is that, for the most part, condo associations own the foundation platforms… not the unit owners. It just makes practical sense for a condo remediation to work the way we have described above, if it can, and now that CFSIC has a new commitment of funding from the State of CT, this process will make remediating condos cheaper and faster for the benefit of the victims of this crisis.

Finally, an important point… this change is not a requirement. If for any practical reason a condo association wants to plan for the remediation of foundation Class 3 platforms first, waiting for a future date, including an unidentified future date, to do 2s, we will permit that. The goal here is simple: get all of the remediation done as quickly as possible, if we can, and under one construction schedule in order to return condo unit owners more quickly to safe and secure homes.

Healthy Homes Funds Received… 

CFSIC has received $10,950,117 from the Connecticut Department of Housing, representing 85% of the net proceeds of the Healthy Homes surcharge originally collected by the Connecticut Insurance Department on our behalf. With these funds we will carry on our work and keep the Participation Agreement line going as long as we can within this fiscal year.

As we reflect on this number…we should bear in mind that 78% of the taxpayers purchasing homeowner’s insurance in our state, who contribute with their personal dollars to this fund, do not live in the affected area. These are taxpayers who not only do not have crumbling foundations…they will never have a crumbling foundation. And yet, they support this effort, and they’ve directed the majority of their elected officials to support it as well.

The solution to the crumbling foundations crisis has always been about people helping people. Without broad-based support for the victims of this crisis, who have nowhere else to turn, CFSIC would not be in existence.

Seeking Additional Funding Assistance…

Last week, the Superintendent spoke along with other important leaders such as Congressman Joe Courtney and CRCOG Executive Director Matt Hart at a press conference held on the site of a CFSIC-funded foundation remediation in Manchester.

The homeowner in question was the first recipient of federal funding assistance for a crumbling foundation. It was a very important day and a very important celebration.

Yes, for eligible homeowners, federal financial assistance through the U.S. Department of Housing and Urban Development is available. It’s the first-ever assistance funded by the federal government aimed at helping homeowners with expenses associated with the replacement of a crumbling foundation.

To be clear, the funding is limited to a maximum of $32,000 per eligible household and cannot be to be used to take the place of CFSIC funding. Rather, it’s intended to help with certain expenses that CFSIC won’t cover that are associated with the remediation of a foundation. For example, such expenses as replacing a concrete sidewalk that has to be removed during the remediation process or the repair of a driveway impacted by the foundation remediation that CFSIC is paying for.

You must be a qualified CFSIC claimant in order to be eligible for this funding, and you must not exceed certain income levels in order to be eligible.

Very importantly…if you have already signed a construction proposal (thereby agreeing to proceed with remediation) you are not eligible to apply for this federal funding. So, let’s say this another way: if you think you might qualify for federal assistance, seek your construction proposals, but do not sign any of them. That will be the point at which non-CFSIC expenses can be identified for you, and you will be able to apply to the federal program.

Find out more about the program.

This program is designed to enable homeowners in need of assistance to reach the finish line. The “finish line” is a fully-remediated foundation, and a safe and secure home.

CFSIC encourages everyone to take a close look at this CRCOG-administered federal program, which has already begun providing financial assistance to families in the affected area.

At CFSIC, we count our victories literally one family at a time. And last week at a press conference in Manchester, we celebrated yet another family in the process of remediation, where that process is being assisted by federal funds, and where that process will end within the next few weeks with that family returning to a home they can enjoy.

Working With Your Contractor…

As you go through finding a place to live for a number of weeks, as you prepare for the first step in your foundation remediation by storing your belongings, and as you generally get ready for the big day when work will begin…it’s important to remember a few things about the way the CFSIC process works.

First, let’s recognize something important…the relationship you will have with the contractor you’ve chosen is the most important relationship in the process of remediation.

The way that you work with your contractor and the way that your contractor works with you lies at the very heart of how successful your remediation will be.

As you get ready for the day when remediation begins, remember something important: you chose your contractor.

That’s right. Under CFSIC’s underwriting guidelines, it is the claimant who chooses the contractor…it isn’t us. As you start the process of choosing your contractor, be careful to take all the time you need to make the right choice. Check contractor references. Talk to your neighbors. Utilize social media in a positive way. Interview contractors more than once. Do the contractors you are reaching out to promptly return phone calls? How are they with emails and texts? Do they take the time to answer your questions carefully and with patience?

In other words, use your judgment… because the choice is yours, and it’s no one else’s. And if things go sideways in the middle of any remediation project, remember that the choice was yours. The Capitol Region Council of Governments has done a great job in setting up a program enabling the public in the affected area to have access to a list of contractors that have met CRCOG’s standards. CRCOG works hard at keeping this list up to date. They do it as a public service. But the relationship you will have with your contractor is a two-way street…it will take both your contractor and you to make the remediation work well and for the outcome to be optimal.

So often when we get a complaint from a homeowner in the middle of the foundation remediation process, or more likely towards the end of the process, the complaint arises because of a simple misunderstanding. In the majority of cases, people are not communicating well. Sometimes it’s more complex.

How can you avoid misunderstandings with a contractor? Read the construction contract before you sign it. Understand that contract. Ask questions. Get answers.

Most importantly, once the contract is signed both by you and the contractor…keep a fully-executed copy of it. That sounds pretty basic, doesn’t it? But the number of claimants who do not actually have in their possession a copy of the legally binding contract that they signed in support of their claim is staggering. If you signed something, keep a copy of it, so that you can refer to it when you need to. Most importantly, you can then retrieve it when you get your PA, which is a requirement.

Another important point…as much as you can, stay away from the job site and stay out of the way of the contractor while the remediation is taking place. A construction site is a dangerous place. Heavy equipment is in operation during daylight hours. The contractor carries a significant amount of legal liability for the safety of the site. If the contractor tells you to please stay off the site…why would you do otherwise? You potentially endanger yourself as well as others. We recognize that many homeowners move into an outbuilding or rent a trailer in order to stay close to their property while the remediation is happening…this is not what these comments are about. Sometimes the Superintendent becomes involved during the remediation process because the homeowner is walking frequently onto the jobsite, providing “advice” to the workmen present…and sometimes it even gets worse, resulting in a situation where workmen are reluctant to go onto the jobsite because a homeowner is making their job difficult or impossible.

But here’s the real message: the way this program works…how a contractor is paid, when a contractor is paid, how you choose a contractor, and, most importantly, how the system is designed to get you back into your home as quickly as possible…is all on this site for you to read. It always has been.

Before the work begins, take a look at this website’s Q&A section. Go to the “For Homeowners” section and review what your obligations are, and review what the obligations of the contractor are by going to the “For Contractors” section. In general, taking the time to understand the process can avoid many misunderstandings.

From time to time the Superintendent gets involved in a dispute between a homeowner and a contractor. Bad blood between a homeowner and a contractor during the construction process can be caused by many things but is almost always caused by a simple misunderstanding. Contractors are human beings. There should be no reason why you and a contractor cannot work out your differences quickly and well in the interests of both parties. Complaining to your elected official will accomplish nothing. Asking the contractor while he is on the jobsite to “throw in a few freebies” well after the contract has been signed also accomplishes nothing. When the Superintendent intervenes in a dispute between a homeowner and a contractor, guess what?…more than 90% of the time it is because the homeowner has requested that work be done not covered by the contract or has refrained from staying off the jobsite, causing a safety concern. All this can be avoided and should be avoided. Remember, you choose the contractor, and you have an obligation to let the contractor do their work.

What’s on this site is designed to be of service to you and to help you understand our process. But let’s leave you with an important message for your further consideration: remember, you choose your contractor, we don’t. Do your homework. Choose a contractor who you believe you can work with. (And a note to contractors…the same holds true for you. Choose a claimant you want as a customer.) The goal for everyone at CFSIC is what happens 99% of the time with our remediations…a successful foundation replacement and a family restored to their home as quickly as possible, because the homeowner and the contractor successfully collaborated in a good outcome.

All Bad Foundations Start as a Severity Class 1…

Yes, that’s correct. A CFSIC Severity Class coded 1 foundation is a perfect foundation. Nothing is wrong with it. No visible, measurable, or detectable signs of pyrrhotite-related foundation deterioration exist.

So why do we permit homeowners with a Severity Class 1 foundation to apply to the CFSIC program when Connecticut taxpayers won’t foot the bill to replace a Severity Class 1 coded foundation…regardless of what a core test reveals?

It’s simple…the deterioration of a pyrrhotite-infected foundation in the affected area progresses over time.

A month after the placement of a concrete foundation, for example back in the late 1990’s…or even a year, or even multiple years after that placement…nothing may have been visibly wrong with that foundation. It had not yet developed into a crumbling foundation.

The fact is that CFSIC didn’t come into existence until January 10, 2019. No CFSIC Severity Class rating existed prior to our putting it in place.

But here’s what we know from all the data we’ve collected.

Every bad foundation…made bad through the action of pyrrhotite and moisture…started out as a perfect foundation with no cracks, no efflorescence, no buckling, nothing.

That’s why we have a provision in our underwriting guidelines to file a claim as a Severity Class 1. Are we going to remediate your foundation if you remain a Class 1? Never. But, if you live in one of the top twenty towns in Connecticut, the acknowledged towns at the center of this crisis, why wouldn’t you move yourself into line if current evidence reveals that your Severity Class 1 could graduate to a Class 2 or 3?

If you get in line now as a Severity Class 1, and your foundation deteriorates in a verifiable and measurable way to a Severity Class 2 or 3, you will have preference over someone who has never applied and is suddenly doing so in a panic.

The truth is clear: this problem develops over time and, with the time remaining, we urge potential claimants not to waste that time.

All bad foundations start as Severity Class coded 1 foundations. If you live in a neighborhood where you’ve seen CFSIC at work restoring home equity, what’s stopping you from applying, even though your visual inspection may reveal you to be a Severity Class 1, when you know that all bad foundations start as perfect foundations?

Lastly, an important word about the foundation designation “Severity Class code cannot be determined”…given when a foundation appears to be in perfect condition but where not enough of it can be seen. If you get that designation from a CFSIC-certified professional or licensed professional engineer, rather than a rating of Severity Class 1, it’s because you’ve not helped that professional to apply a severity class code. CFSIC’s certified professionals MUST give you that designation on what otherwise appears to be a perfect foundation if they cannot see in excess of 50% of the measurable wall space of the interior of your basement, because it’s covered up.

What’s your alternative? Uncover 51% of it. A few hundred dollars of expense could mean $190,000 of benefit for you.

Connecticut taxpayers have sent us a clear message…they are not going to pay for a foundation replacement where sufficient visual evidence doesn’t exist.

If you get the designation “Severity Class code cannot be determined” as part of your written visual report, can you still apply to CFSIC?

Of course you can.

However, once a CFSIC claim adjuster is assigned to your file, opens that claim file, and sees that you’ve been given that designation, they’re required to reach out to you to tell you that your claim has come up for review and that, because of that designation, they can do nothing further with your claim. The choice of what you do next will be up to you…but the claim adjuster is going to move on to the next victim if you do nothing.

It costs nothing to apply to CFSIC. You should act now.

Our Next $25M Approved…

We should all be grateful, and we know that we are, to Governor Lamont and the CT Bond Commission for last Friday’s approval of our next $25M in CT bond allotment.

Everyone should be aware that we have not received those funds. We may not receive those funds for a few more months…but the commitment has been made, and that enables our budget planning process to move forward.

We also expect to receive approximately $11M in Healthy Homes funding within the next two months or so.

What’s the message that we want to leave with the public, other than gratitude?

APPLY NOW.

CFSIC is moving into the last five years of its lifespan. Think of where you live; think of the homes around you, and when your home and those of your neighbors were built. Remember the Severity Class code 1 possibility and understand that our last five years will be very busy.

Lastly, remember that your claim file is a confidential document seen only by the persons adjusting and managing your claim.

“Apply now” is the message.

When Will My Claim Be Funded?

Several times over the last five years we’ve commented on this question. The rules haven’t changed, and it’s important to understand how those rules work.

You’ve filed a successful claim with CFSIC. You’ve gotten your minimum of two contractor proposals, and your designated ESIS claim adjuster has reviewed and accepted them both. You then make a decision as to which contractor you’re going to do business with, you sign that proposal, and you send it back to your designated claim adjuster.

At that point, you always get a letter, which comes to you by email from your adjuster, telling you that your claim has now been moved into the Participation Agreement line.

Here’s where some of the confusion occurs:

Your claim has now moved temporarily out of the hands of your designated claim adjuster and into the hands of the Superintendent and his staff. The Superintendent has the sole authority to issue a PA and to countersign that agreement, which immediately frees up your funding.

So, let’s discuss a few myths and address those myths with the truth.

– MYTH: Once you’re in the PA line, the Superintendent can move you and can, for example, place someone else ahead of you for handling. TRUTH: This cannot happen, and the process is independently audited.

– MYTH: When a claim is moved into the PA line, it is date-stamped. TRUTH: Partially correct…it is also time-stamped. There will always be claimants ahead of you; there will always be claimants behind you. In reality, it’s possible for someone to be one minute ahead of you in line or one minute behind you. That’s the way the system works and has always worked.

– MYTH: If you call the Superintendent’s office, anyone who answers the phone will be able to tell you pretty much when you’re going to get your PA. TRUTH: Partially correct…but that’s only true if, on the day you call, CFSIC has funding available in its accounts to actually reach the exact point where your claim is in the line and issue a PA. Depending upon the date on which you entered the PA line, you may potentially be in the next round of funding. If you are in the next round of funding, you will always be told when to call back to get more information about when your PA can be issued. CFSIC is dependent on the funds we receive from the state in order to issue PAs, and those funds have never arrived at the same time each year.

– MYTH: CFSIC places stand-alone homes in front of condos for access to funding. TRUTH: CFSIC has never done this. Not once. And CFSIC never will.

– MYTH: Who you hire as a contractor can make a difference in when you get your funding. TRUTH: Completely false.

– MYTH: The biggest hold-up in getting a PA sent to you and freeing up your funding is the length of the PA line. TRUTH: False…the main reason for the length of time it takes to get into the PA line and therefore eventually receive funding is the length of time claimants take to decide upon a contractor.

The way to find out where you are in line to receive your PA is a simple one…call the Superintendent’s office at 860-487-0000. Any staff member who answers has access to your claim file and can give you as much information as you need to understand your personal situation.

One last reminder: once your PA is countersigned by the Superintendent, the process moves back to your designated claim adjuster. Your claim does not stay in the Superintendent’s office. We at CFSIC believe that claimants must do their part at all times to make the claim process work. You have to be in touch with your contractor and be in charge of the scheduling of your remediation. If the Superintendent believes that you are not making an earnest effort to schedule your remediation with your contractor, he will remove you from the program and free up your funding for the next available victim

We feel it is very important to blow up all the myths we can about this process and make certain that the public understands that the process works, works well, and has since inception.

The Importance of the Deposit…

The way that CFSIC secures a remediation proposal on behalf of a family is by paying a deposit to the contractor to make certain that that proposal is locked down and that the family and the contractor can proceed with the scheduling of the remediation.

Paying a deposit to secure and hold the contractor’s proposal is one of the fundamental cornerstones of the CFSIC program. When the Superintendent countersigns a Participation Agreement, the claims adjustment staff is directed to pay to the contractor a deposit equivalent to 10% of the contract’s total remediation costs…subject to a maximum deposit of $19,000 for stand-alone homes, PUDs, and in those very rare examples where a single condo unit sits solely on a segregated foundation not shared with any other condo unit….and $50,000 for conventional multi-unit condo platforms. The deposit is a part of and not in addition to the total value of allowable costs that CFSIC has agreed to pay for each foundation claim.

It’s a unique part of the CFSIC claim payment process…for the deposit gets paid well in advance of when construction begins, sometimes a year or more. If CFSIC didn’t pay a deposit, the contractor would not be locked down and the contract then subject to potential change or cancellation. Simply said, the deposit is what jump-starts the remediation process. Contractors hold deposits in escrow, and those deposits are secured by bonds issued in favor of CFSIC.

Every project, no matter how small or how large, begins with the payment of a deposit, which is our pledge to that family that the project can proceed, starting with the scheduling of construction.

As we take a close look at how CFSIC works, it’s important to remember that infrastructure with a captive insurance company is everything. There has to be a process. The process has to work. The process cannot have any exceptions.

The way in which CFSIC pays deposits to secure remediation work that will be conducted in the future is an important part of how we roll forward our program, town by town and family by family.

Our New Year Begins…

CFSIC’s fiscal year (the year we use for accounting purposes) began on July 1.

Our June 30, 2025 audit is already underway. With our new year comes the hope of continued funding from the CT Bond Commission. We’ve budgeted $25 million, and, by way of reminder, this is the last tranche of the second $100 million provided to CFSIC by state government.

We also anticipate receiving between $10.6M and $11.0M from the Healthy Homes surcharge fund…for a total funding in fiscal ’26 of just about $36 million.

We will be making an announcement on this page when these funds are received.

Meanwhile, for the first time in CFSIC’s history, we are continuing to issue Participation Agreements without what would normally be a stopping point while we await new funds. Please bear in mind that this is temporary and that, at the Superintendent’s discretion, the PA process could stop at any point if he believes that we are in danger of running out of funds before the next funding tranche arrives.

A new fiscal year means new hope for families dealing with the crumbling foundations crisis…a new foundation to their home and to their lives.

1,100 Foundations Replaced…

Last Friday, we achieved 1,101 foundations fully replaced, and where those claims are closed, and those families are back in safe and secure homes.

This is CFSIC’s busy season, with many projects underway. Right now, we are averaging around $900,000 per week in construction payments. The pace is quickening, and many of these homes will be completed within the next eight weeks.

We’re watching the situation closely. As all of you who read this page know, in the past we have shut down the Participation Agreement line when the Superintendent has determined that no more PAs can be issued until the next round of funding is received.

Both the Healthy Homes surcharge funds and our state bonding come in at unpredictable times. If the Superintendent decides to shut the PA line down, he will provide notice of that. The goal is to stay open as long as we can, helping as many families as we can.

It’s important to remember something as we announce more than 1,100 families served, and that is that there are many more to be served. The PA line will stay open as long as we can make it happen financially. This is a time of celebration for families all over the affected area.

A Major Milestone…

Over the weekend, the Superintendent put his signature on a Participation Agreement that placed a family in Manchester in line for a foundation remediation.

We’ve reached a major milestone: 1,500 families served by the CFSIC program…families whose foundation remediations are each covered by a PA signed by the Superintendent.

The Superintendent makes it a point to personally sign each one of these, giving that family the assurance that the funds will be there to make that foundation replacement happen. He has never delegated that responsibility to anyone else. There’s also another promise involved: within a few days of the Superintendent signing that PA, a deposit for the remediation project is in the hands of the selected contractor. That deposit secures the contract, so that when the homeowner and the contractor can decide upon a date for the remediation to begin, there’s nothing standing in the way of the work being done.

Here’s another important point…for some contractors, timing is everything. Your project may not begin, given the contractor’s scheduling, for another year or more…but at least CFSIC’s commitment has been made to you, and you are that much closer to restoring the equity in your home and your peace of mind.

Answering Some Questions…

The Superintendent’s office on average receives 50 to 75 emails per week on the subject of the CFSIC program…and that’s not counting the emails received and answered by our excellent ESIS claim adjustment staff.

Generally speaking, the emails received in the Superintendent’s office are specific to the CFSIC program as a whole. Every email is answered promptly. We think it’s important to show you just a sampling of the questions we have received over the last seven days. We’ve also copied in the answers that were sent in each case.

– “I’m bidding on a house in the affected area that was built in 2016. My real estate agent told me that 2015 is the cutoff date for when CFSIC can pay a claim. Do I have anything to worry about?”

Yes. First, CFSIC has no cutoff date. It’s never had one. Secondly, if this home is in the affected area, then you should take the steps necessary, primarily through a visual examination, to determine if you have a crumbling foundation. Please remember something…you can NEVER be a CFSIC claimant under any circumstances if you purchase a home after February 1, 2019 and, at the point of purchase, you are not in possession of either a core test report or a visual inspection report.

– “A friend told me that it’s a waste of time to apply to CFSIC because I have a crumbling foundation just involving my detached garage (my home was built in 1979 and therefore doesn’t qualify…my garage was built in 2001). Is my friend right?” 

Your friend is wrong. CFSIC regularly replaces not only eligible additions but also eligible detached garages, if built in 1983 and subsequent.

– “Good morning. I’m a real estate agent and we had an office meeting recently where one of my colleagues said that your ‘February 1, 2019 rule’ only applies if the buyer pays for the core test or the visual inspection. In other words, she maintains that the responsibility to adhere to your 2/1/19 rule rests solely with the buyer. Is this correct?”

No. CFSIC doesn’t care who orders and pays for the core analysis or the visual inspection…as long as it exists at the time of the sale, and it is in the buyer’s possession at the time of the sale. Believe it or not, many home sellers go out and get, at their own expense, a core sample report or a visual inspection report and use it as an inducement to encourage someone to buy their home. The only thing we require is when that buyer eventually applies to CFSIC, they have one of these reports in their possession.

– “I have a core test report that shows no pyrrhotite in the analysis. I was skeptical of that report and just had a visual examination done by a CFSIC-certified home inspector, who determined that I have a Severity Class 1 foundation. I was just wondering whether I qualify to be a CFSIC claimant? If the core specimen report came back negative for pyrrhotite and on top of it the inspection report says I’m a Class 1, doesn’t that disqualify me?”

Neither of these reports disqualifies you from applying. Remember, the reason we force-function having either a visual inspection report or a core analysis is to force awareness of the existence of the problem, so that someone can never come back, at some point in the future, and say that they did not know that the crumbling foundation crisis exists. It’s that simple. The whole purpose of requiring one (not both) of these reports as a qualification to apply to the program is because no one should buy a home in the affected area and claim that no one told them that this crisis exists.

– “I’m buying a home and I think I’ll be closing in the next two weeks. The seller has been extremely helpful and has provided me with a visual inspection report done by a CFSIC-certified home inspector. The report is very complete and includes around ten photographs. It says that the foundation has been ‘CFSIC Severity Class coded’ as a 1. However, this report is more than two years old, and I’m worried that over time things might have gotten worse. Can you please give me some advice?”

First, let’s be clear about the fact that you have in your possession a visual inspection report even though it’s two years old, and the very good news is that you qualify under the 2/1/19 rule to be our claimant should you decide to apply. But you’ve got options. You can, at your own expense, have that report updated to reflect the passage of time before you purchase this home (or ask the seller to do it). Alternatively, you can go ahead and buy the home, register yourself as a CFSIC claimant, and at any point thereafter update your claim file with a new inspection report. The new inspection report’s severity class coding will always prevail. If two years from now you are still a Severity Class 1, that will be great news. However, if two years from now you have migrated to a Severity Class 2, that will prioritize the treatment of your claim by CFSIC.

Avoiding a Self-Diagnosis…

We’re reminding everyone that CFSIC only pays claims based on the written results of a visual examination performed by a CT-licensed professional engineer or a CFSIC-certified home inspector.

The CFSIC staff continues to get emails and phone calls each week from prospective home buyers, real estate agents, and others, where the existence of a crumbling foundation has been self-diagnosed…but not diagnosed professionally.

Giving yourself a medical self-diagnosis…unless you’re a qualified medical professional…is never a good idea, particularly when good professional help is close by.

Diagnosing a crumbling foundation can be harder than you think. So many of the phone calls and emails we receive indicate, “I had a friend tell me that I have a crumbling foundation.” This kind of self-diagnosis is to be avoided…the same way a medical self-diagnosis should be avoided. For example, does your friend know the difference between the map cracking associated with pyrrhotite and the very similar presentation of cracking shown with Alkali-Silica Reaction (“ASR”)? If they don’t, and you don’t, then you might just as well be dealing with quack medicine.

Countless times CFSIC has received photographs that are, within moments, clearly identified by a professional as having no relationship to pyrrhotite. None at all. These are stress fractures or shrinkage cracks; these are cracks associated with the normal course of events in an aging concrete placement.

So let us repeat something that we hope will stop some of this social media catastrophe. Here’s the statement: “all concrete cracks.” It’s a fact of life.

The question before us is whether the presentation of those cracks, the location of those cracks, and…here’s what’s most important…the hairline nature of some of that cracking, indicates a pyrrhotite-infected residential foundation.

For six years CFSIC has trained and certified home inspectors and professional engineers to determine the presence of pyrrhotite in a foundation. Early social media posts were clear: these people don’t know what they’re doing. CFSIC’s program has proved these comments to be absolutely wrong from inception.

On our Home Page you can view a video where our Superintendent, Michael Maglaras, interviews our resident concrete expert, Kevin Miller. That interview tells the story. In the Useful Links section of this website, you will find a list of those certified professionals who can render an opinion, through visual examination, on the status of a potentially bad foundation.

CFSIC’s files contain thousands of photographs of crumbling foundations infected by pyrrhotite. No one has a bigger repository of this data in the world than we do.

Play it safe with your foundation assessment. Go to a CFSIC-certified professional to get the job done.

Another $100 Million…

We are pleased to announce that another $100 million in bond funding has been included in the biennial budget bill that will be presented to Governor Lamont for his signature. We are very grateful for this funding and for this commitment, which will help the CFSIC team realize its goal of defeating the crumbling foundations natural disaster in our state of Connecticut.

With these funds, along with our continued Healthy Homes funding, we will end this crisis. And that’s what’s important.

Now here’s what’s just as important.

Let’s pause for a moment and reinforce something about the importance of being a Severity Class 1 claimant. We know that the tendency is to think that because your foundation has been assigned, through a visual inspection, a Severity Class code of 1, this means that your foundation will never see the negative effects of pyrrhotite. Think again.

Remember something vitally important about registering a claim with CFSIC, about going through the application process, and about getting us the data we need to track your foundation: your claim can migrate. A Severity Class 1 foundation can become a Class 2 or 3 and sometimes without much notice. If you are a Severity Class 1 claimant registered with us, and your claim migrates to a claim we can respond to…guess what? We’ll begin working your claim file not based on the date you inform us your foundation has migrated in severity but based on the date you first applied as a Severity Class 1. And that’s why applying to CFSIC, even if you are a Severity Class 1, is vitally important.

Now why is all of this important and is, as well, connected with our new commitment of $100 million?

Because it will be the last $100 million. The Superintendent has publicly announced that he will not be asking for any more funding from the taxpayers of the state of Connecticut beyond the fiscal year ending June 30, 2030.

If you apply today and are determined to be a Severity Class 1 claimant, you’ve got five years for the potential of that claim to migrate to a higher severity class.

The clock is ticking.

See a report filed in February (PDF) with the Connecticut Crumbling Foundations Caucus and pay close attention to pages 2 and 3…where we show the top twenty towns where this crisis is focused and where it is still a crisis. If you live in one of these top twenty towns, you may find yourself with a crumbling foundation. Think about what the Superintendent has pledged, as noted above, and think about applying today.

Getting Your Contractor Bids…

CFSIC strongly recommends that you wait until your claim is made Active before seeking your minimum of two contractor bids for your foundation remediation.

When you apply to CFSIC, you are now automatically a “Pending” claimant until our great claim adjustment staff can open your claim file and begin to work with you on a one-on-one basis. Your CFSIC claim adjuster has one goal in mind: to make you an “Active” claimant, which is the step prior to you getting into line for your Participation Agreement.

It should be then…when you become an Active claimant…and only then that you go through the contractor bidding process. If you do it too early, before your claim is made Active, it could be that too much time passes once your claim becomes Active, and the bids you got are now old and no longer valid, and you have to start all over again.

We actively encourage all CFSIC claimants to do it by the book: wait until your claim is placed into “Active” status (you’ll get an email from your CFSIC claim adjuster telling you that you’ve been made Active and requesting that you begin the contractor bid process). This will enable you to go out right away and secure as many bids from eligible contractors as you feel you need to have.

The process works…and we’ve proven that. If you follow the process, it will enable you to get into the PA line quickly, which is the last and most important step of all.

Some Facts and Figures…

– Claims covered by Participation Agreements signed by the Superintendent to date: 1,476…we should hit the number 1,500 before the 4^th of July.

– Total activity of the company to date: $254,285,171, with $172,628,544 in total paid claims and $81,656,626 in claims in reserve to be paid in the future.

– Applications received to date: 2,427

– Average remediation cost (allowable CFSIC costs) since inception: $138,761

– CFSIC currently carries only 56 Inactive Severity Class coded 3 claimants…claimants are making real progress in making their claims Active in order to get into line for a PA.

– As we think about CFSIC’s success to date, we should remember that CFSIC is projecting as many as 110 new crumbling foundation claimants in Vernon, 118 in Tolland, and 88 in Manchester by 2030. As to the remainder of the “top twenty towns” we’re projecting that in those 17 towns we’ll see as many as 600 new claimants with verifiable crumbling foundations.

Update on PAs…

The Participation Agreement is the final step and the most important step in the process of foundation remediation.

You won’t get a PA unless CFSIC has the funding to pay for your foundation remediation. You can be an Active, Inactive, or Pending claimant…and if CFSIC does not get its funding in any given year, CFSIC has no obligation to follow through with the payment of your claim UNLESS you have finally gotten a countersigned PA.

PAs are signed by the registered homeowner/claimant in CFSIC’s system, and each one is personally countersigned by the Superintendent.

The very important thing to remember about PAs is that when your ESIS claim professional moves you into line to get a PA you are date and time-stamped. What this means is that, when you get into line, you will have claimants ahead of you and claimants behind you. It’s possible for you to be ahead of another claimant by just a few minutes. The reverse is also possible.

What’s also important to remember is that CFSIC is always working backwards…yes, that’s right. Every time we get a tranche of new funding, either from the Healthy Homes surcharge or from our state bonding allocation, the first thing we do is re-open the line and go backwards precisely to the point where we last stopped issuing PAs.

Let’s make sure everyone understands this.

This morning, Monday, May 19, 2025, we will be preparing Participation Agreements for persons who first entered the line on October 15, 2024. That’s how far back the line goes.

Said another way, if you go into the PA line today, you could be there 12 to 14 months later.

You may ask, “But can’t you just process the PAs faster?” No, we can’t, because to process a PA is one thing and to actually have the money in the bank to pay for it is another. For example, we didn’t get last year’s bond allocation until the first week of December. Here’s what that means: it means the whole line stops until funding is received.

Make no mistake…all of us are grateful for the funding we get from both our sources…but if it’s delayed, the direct result of the delay is that, depending on when you entered the line, you may have to wait in line until that money is received. This is the most important thing to know about the CFSIC program. It’s why we work backwards, and it’s why the speed of the line moves as slowly as it does. The speed at which the line moves is always subject to the amount of available funding we have at any given point in time.

Let’s Start in the Basement…

This week we again feature the work of Kevin Miller and an article of great importance for those persons contemplating a visual inspection of their foundation.

In his groundbreaking article on this subject, Kevin talks about “what’s behind that wall?” View Kevin’s article. (PDF)

No one wants to rip down a section of sheetrock, but here’s the issue: what is behind that sheetrock may be the source of the problem, and we all know that the telltale signs of pyrrhotite infection can exist in unlikely places. It’s also important, as Kevin notes in this great piece, that the incipient signs of pyrrhotite infection are sometimes only detected by looking at the smallest of details. It’s the details that matter in a visual inspection.

Examining the Facts…

As we now get into the full swing of this year’s remediation activity, it’s good to take a moment and reflect on “facts and figures” to date:

• 1,072 home foundations remediated since the inception of the program on January 10, 2019
• For Type 1 claimants, that represents $148,598,306 in total completed foundation remediations paid for by CFSIC; total paid claims to date equal $170,615,016
• The average remediation now costs $138,618 in allowable expense, which is 27% below CFSIC’s cap on Section 1 foundation expenses
• To date, CFSIC has 2,423 registered claimants in the program, including 125 Type 2 claimants
• CFSIC currently carries outstanding claim liabilities (liabilities that we carry on our books for known severity class coded claims) of $83,857,210
• CFSIC currently has 113 Pending claimants (claimants that we have not gotten to yet) for a probable reserve value of $15,600,000
• CFSIC is permitted to carry administrative expense equivalent to 10% of its calendar year revenues received…currently CFSIC’s administrative expenses are approximately 3.9% of calendar year revenues

We are continuing to assess the positive impact CFSIC has had on the Grand Lists of the towns, particularly the top twenty towns, where this crisis exists…more on that to follow.

CFSIC is making great strides in addressing the crumbling foundations crisis. No crisis can be addressed without a strong collaboration, which means a strong public/private partnership making things happen behind the scenes. That means a state government that believes that this is a crisis first and foremost, coupled with private expertise skilled in the management of captive insurance companies.

Concrete Troubleshooting…

Returning again to the important work done by Kevin Miller, CFSIC’s concrete specialist, we direct your attention to Article #5…an informative article on concrete troubleshooting.

Read this important addition to our collective concrete knowledge. (PDF)

What’s the takeaway from Kevin’s comments on this issue? It’s simple: learn to understand the differences between pyrrhotite infection and ASR…learn the difference between a pyrrhotite map-cracking presentation and a concrete pour line…in short, this article gives you some of the basics that will help you understand concrete troubleshooting.

Concrete Mix Design Isn’t Everything…It’s the Only Thing…

So much talk about pyrrhotite…and of course that’s what CFSIC is all about…but we must remember the importance of concrete mix design.

Yes, concrete is “designed”…it is produced through a complicated process of weights, measurements, and ingredients. The goal, as Kevin Miller eloquently writes, is “always make a perfect cubic yard of concrete.” 

Read Kevin’s important article on the subject of concrete mix design (PDF) and understand again how important it is to have the best quality concrete available.

All concrete is not the same. It’s not designed the same, it’s not mixed the same, and, if it were, CFSIC would never have been created. One of the secrets to understanding the crumbling foundations crisis is to understand this important point.

Why Foundations Fail…

We think it’s important to revisit the great work done by Kevin Miller in his series of articles on the root causes of the crumbling foundations crisis.

One of the most important statements that Kevin Miller has written is “…it is not the volume of mineral contained within a core sample but the ability of the concrete to resist or delay the damaging effects of pyrrhotite.”

What is Kevin saying here? When a foundation fails due to the presence of pyrrhotite, we need to remember that no one has been able to quantify the amount of pyrrhotite in the aggregate that will, 75% of the time or more, cause a pyrrhotite-infected concrete foundation to fail.

To learn more about how to accurately determine why this crisis has occurred, it’s important to revisit Kevin’s article on this subject. Read the article (PDF).

In Support of Additional Funding for CFSIC…$100 Million More Is Needed…

“Although my foundation remediation has not been done yet, I have received my countersigned Participation Agreement from the Superintendent, and I am now very close to getting my foundation replaced. My opinion is that we have to keep the CFSIC program going with as much financial support as we can provide. There are so many victims left out there in the affected area, and they have no place else to turn. This is all about having a home that is safe and secure, and CFSIC needs to be there to help.”

Hazel Barber, Affected Homeowner, Tolland

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“The Capitol Region Council of Governments wholeheartedly endorses CFSIC’s request for an additional $100 million of funding to aid the victims of the crumbling foundations crisis. We have made this request our top priority for CRCOG’s Legislative Agenda, as we serve the majority of the communities affected by crumbling foundations. Our team has reviewed the data prepared by CFSIC, and we believe that the additional tranche of $100M in state funding will bring this terrible crisis, affecting housing security in eastern Connecticut, to an end.

We will continue to advocate for this critical funding to fully restore our communities and appreciate the support and leadership of our General Assembly and our Governor.”

Matt Hart

Executive Director, CRCOG

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“I speak as a victim of the crumbling foundations crisis who is now back in a home with a new foundation, thanks to the great people at CFSIC. I know firsthand what it’s like to face an uncertain future. Thanks to CFSIC, my family and I now face a more certain one. We all now need to finish the job and provide CFSIC with more funding so that the families still suffering through this natural disaster, with nowhere else to turn, will also be able to face a brighter future.”

Clinton Bragg, Affected Homeowner, Broad Brook

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“The Town of Ellington is one of the ‘hot spots’ of the crumbling foundations crisis…so far this housing security crisis has affected more than 161 families in my town. Mike Maglaras and his team at CFSIC have done a great job identifying these Ellington victims and getting assistance to them. Mike has informed me that as many as 90 more families will need crumbling foundations assistance in our town alone over the next five years. That’s $13 million in additional funding needed just in Ellington. We all need to get behind CFSIC to advocate for more funding for their efforts to bring housing security to all affected towns and return these homes to the tax rolls.”

Matthew Reed

Town Administrator, Ellington

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“CFSIC has recorded more than 117 crumbling foundations in Coventry alone. We are very much in the epicenter of the crumbling foundations crisis, and the families in our town have suffered as a result. Mike Maglaras has told me that we have a projected 40 to 50 families more who will apply over the next few years…that’s $6 million to $7 million in additional construction work in our town. As CFSIC is trying to raise another $100 million from state government to complete its task, I want to add my voice to those in support of their request. The CFSIC program works, and it has been instrumental in restoring our tax basis, home equity, and home security for the affected families who had nowhere else to go.”

Lisa Thomas

Chairwoman, Coventry Town Council

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“We know now that the crumbling foundations crisis has reached Glastonbury. On behalf of the Milestone Commons Condominium Association, I write in strong support of another $100 million in funding for CFSIC. We cannot leave any victim of the crumbling foundations crisis behind. The time to reaffirm our statewide commitment to housing availability and security for all is now.”

James Birok, President

Milestone Commons Condominium Association, Glastonbury

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“The residential real estate market has benefited tremendously from the work CFSIC has done. CFSIC has returned homes with crumbling foundations to their true value, and it has promoted housing security for all by making more quality housing available in the affected area. But this crisis is not over…CFSIC needs more funding to finish the job and make safe and affordable housing available to everyone in the area hardest hit by the crumbling foundations crisis.”

Corrinne Lomazzo

Berkshire Hathaway HomeServices New England Properties

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“There is no tougher foundation replacement project than a condominium association. Lifting a foundation platform on behalf of multiple families sharing that platform is not only expensive but is a significant feat of engineering. As President of the Ryefield Condominium Association I speak for many families who have suffered through this crisis. These families are my neighbors.

CFSIC has done an amazing job. We must all now also do an amazing job and get behind CFSIC and its request for another $100 million to finish its task. The victims of the crumbling foundations crisis deserve our support. CFSIC deserves our support.”

Diane Morrow, President

Ryefield Condominium Association, Vernon

Expanding the Transfer Process…

As we announced three weeks ago, we are expanding the terms under which a claim transfer from an existing claimant to a new claimant can occur by making sure that the process includes other forms of possible transfer of ownership, rather than strictly through the sale of a home, as most of us understand that term. Some transfers involve a sale but where the value of that sale is the assumption of an existing mortgage, for example. Additionally, there are other ways, all of which are legal and above board, to effect the correct transfer of a residential property.

We have expanded the transfer page on CFSIC’s website to expand the program for these variants and also to make the process a bit more understandable…including adding some steps that when followed should make the claim transfer process easier.

Go here to learn more about transferring a CFSIC claim.

Some Facts and Figures…

From time to time, we like to publish some facts and figures as to where we are. We believe it is important for the public to have real-time data that will help everybody understand the extent of the crisis and how we are combatting it (all figures are valid as of 3/21/25):

– Number of claims covered by Participation Agreements: 1,424

– Total dollar value of completed construction to date: $147,063,971

– Cost of average Type 1 foundation remediation (CFSIC allowable costs):  $137,829

– Total dollar value of all paid claims to date (value includes completed foundations as well as progress payments for uncompleted ones, and Type 2 claims): $156,021,297

– Total carried reserves for known claims not yet paid in whole or in part: $86,325,488

– Total probable value of existing Pending claims (for which no reserves are held): $17,316,000

– Number of Severity Class 3 and 2 claimants currently in litigation with their homeowners’ insurance companies (and therefore not currently eligible to become an Active CFSIC claimant): 0

We continue to make progress each day in our battle against the crumbling foundations crisis, which is affecting so many citizens in the Northeast Corner of Connecticut.

Revisiting Our Mission…

It was seven years ago this month that the original Incorporators of CFSIC chose the firm of Michael Maglaras & Company, a captive management firm with more than 40 years of experience, to lead the effort in the role of Superintendent.

One of the first things that the Superintendent did was to draft a Mission Statement for the review and approval of the Board of Directors of CFSIC.

It’s sometimes easy to lose sight, on a day to day basis, of the importance of keeping in mind the mission of CFSIC, and so it’s an appropriate time to reprint here in Latest News our unchanged Mission Statement, adopted almost seven years ago:

Connecticut Foundation Solutions Indemnity Company, Inc. (“CFSIC”) has been chartered and licensed as a captive insurer to assist the State of Connecticut with the fair and equitable adjustment of homeowner claims resulting from the pyrrhotite-affected home foundations natural disaster.

CFSIC’s mission is to use its available resources to adjust and pay claims for the rebuilding of as many pyrrhotite-affected home foundations as those resources will permit. Using objective and recognized property claim adjustment standards, and acting at all times with fairness and compassion, CFSIC is committed to the equitable treatment of homeowners suffering from this natural disaster.

CFSIC will also become the focal point for the development of educational resources and outreach to the public concerning the issue of crumbling foundations, why these occur, and how they can be prevented. We will be a catalyst encouraging the federal government, the commercial insurance market, and all interested parties to come to the aid of affected homeowners.

CFSIC will conduct itself at all times, through its governance and by its actions, in a manner consistent with its tax-exempt purpose and its mission of service to the public.

Expanding the Transfer Process…

One of CFSIC’s great innovations has been the ability to transfer a CFSIC claim from an existing homeowner to a new homeowner when the affected home is sold.

Most transfers occur just for that reason. Someone has made a claim to CFSIC. They have an affected foundation. That claimant is a Pending, Inactive, or Active claimant, and they want to transfer their claim and its exact status to the buyer of their home.

It’s pretty simple…and the system has worked well.

Specifically, the language you need to be mindful of in our Underwriting and Claims Management Guidelines is:

“With respect to the transfer of a Type 1 claim through the sale of an eligible residential building…”

Effective March 25, 2025, that phrase will be specifically expanded to permit a broader definition of how property these days can be transferred. On the date noted above at 9:00 AM, the following phrase will be substituted in our guidelines (and any other place applicable): 

“With respect to the transfer of a Type 1 claim through the sale, transfer or conveyance of a fee simple interest to an eligible residential building…”

CFSIC is continually innovating and improving. This is yet another example.

Understanding Sections 1, 2, and 3…

The foundation upon which the CFSIC program is built is a clear definition and understanding of what CFSIC will pay for and what it will not.

Regardless of which contractor you eventually decide to use to replace your foundation, all contractors adhere to a handful of basic requirements when addressing with you what CFSIC will pay for and what it will not.

Basically, you should expect to see, in any remediation proposal provided to you by a contractor, the work that will be undertaken broken down into three distinct and easy-to-understand sections.

Your CFSIC-assigned claim adjuster will need to see the complete construction proposal for each of the contractors you decide to obtain proposals from. We need to see the complete proposal even though CFSIC will not pay for Section 2 and Section 3 costs.

What follows is a handy way to understand the differences among these three sections and why it’s important to understand the differences:

Section 1:  Simply put, this is what CFSIC will pay for. What we’ll pay for is always clearly delineated in the construction proposal. What we’ll pay for can be found in the “For Homeowners” section of CFSIC’s website under item #2 “What We’ll Pay For…And How Much We’ll Pay.”

Section 2: This is remediation work that CFSIC will not pay for. Examples of this kind of work are the replacement of basement stairs from the basement to the first floor of your home or replacement of front steps. To learn more about what we won’t pay for in this section, visit the “What We Won’t Pay For” section of CFSIC’s website (item #3 of the “For Homeowners” section). If your project requires any of these items, please understand that they will be your financial responsibility. (Please be aware that some of these excluded items may be required by your town to bring your project into building code conformance.)

Section 3: Frequently, homeowners want other things done while they have a contractor onsite providing a CFSIC-funded foundation replacement. That work may not be connected with CFSIC’s mission to assist homeowners with the replacement of pyrrhotite-infected concrete. It can be the replacement of trees or shrubs, for example, that were removed to get to the foundation to begin with. What we won’t pay for in Section 3 of any construction proposal is also included in the “What We Won’t Pay For” section of CFSIC’s website (the same link as the Section 2 link provided above).

You can always call the ESIS hotline at (844) 763-1207 to learn more about these important differences.

Lastly, it is only to Section 1 costs that CFSIC’s cap of $190,000 per stand-alone home and $76,000 per condo unit apply. So, if a contractor comes back to you with a proposal that requires you to make a contribution towards your foundation replacement in Section 1 of your construction proposal, it’s because the linear and square footage measurements the contractor took on the site resulted in your Section 1 costs exceeding these caps.

The caps noted above are designed to bring equity to this process…within the affected area there are large homes and small homes. The cap applies equally. But let’s be clear…the cap works, or we would not, as of last Friday, have an average within the CFSIC system of the allowable costs for a foundation remediation come in at $156,475.

Why You Should Apply, Now…

If you think you have a crumbling foundation. If you’ve gotten a written visual inspection report providing you with a severity class code of 1, 2, or 3. Quite simply, if you’d like to prepare for an uncertain future, where you might have a crumbling foundation on your horizon. Do yourself a favor.

Apply to CFSIC now.

The Superintendent is actively in discussions with legislators on both sides of the aisle to secure another commitment of $100 million in revenue bond funding beginning on July 1, 2026. Let’s be clear: that funding is not certain. It will take a lot of work to justify another huge investment in CFSIC.

What goes a long way to justifying that investment? Claimants in line to have their foundations remediated.

We understand all the reasons why some folks haven’t applied. We really get it. But an application filed with CFSIC can make all the difference between a safe and secure home and one that’s not so safe and far from secure.

If you have evidence of a crumbling foundation, you should apply. You’ll be recorded as a “Pending” claimant…but that is better than not being a claimant at all. In fact, this coming week we will be remediating foundations for homeowners who were once Pending claimants, who have been in line for a while…so being a Pending claimants does not mean we’ll never get to you. We at CFSIC must build a convincing case for ongoing funding in order to shut this crisis down once and for all. Your applications to CFSIC can make all the difference.

We’re here to help you with questions you may have and, rest assured, we have the answers.

What’s the overarching message? “Apply now.”

Anticipating Your PA…

It’s important to remember that when your Participation Agreement actually arrives by email, it will not come from your designated claim adjuster at ESIS…it will come from the Superintendent’s office, Michael Maglaras & Company.

If the Superintendent’s office has not corresponded with you before, and that’s very likely under normal circumstances, you’ll be on the lookout for the email address “mmaglaras@michaelmaglaras.com.” If you are anticipating receiving a PA, look for that address. If you don’t see it, check your spam folder.

The staff at the Superintendent’s office regularly contacts claimants who have not responded to having received their PA for two months or more…only to find that they got the email and either deleted it because they didn’t recognize it, or didn’t see it at all because it went into spam.

When you are placed in the Participation Agreement line, you move temporarily from the hands of the adjuster who has been helping you at ESIS to the Superintendent’s office, as the Superintendent personally signs every PA. Once your PA is fully executed (meaning, signed by you and a witness, and countersigned by the Superintendent and a witness) your claim file moves back to your original ESIS claim adjuster. Why does this happen?…because your claim funding has been approved, and the next step is “shovels in the ground.”

Be aware of the process and remember that almost 1,100 families have done it exactly this way with great success.

What Are We Asking For?…

Last week, on February 6, the Superintendent had the pleasure of speaking with the Crumbling Foundations Caucus and others about the extent of the crumbling foundations crisis and what CFSIC’s needs will be over the next five years.

The Caucus is a bipartisan legislative group composed of both Senators and Representatives from both sides of the aisle who have volunteered to do what they can to address the needs of the victims of the crumbling foundations natural disaster.

CFSIC’s needs are specific, and we received a helpful and respectful response to our information and to our “ask.”

See the PowerPoint presented by the Superintendent to the Crumbling Foundations Caucus (PDF).

Are You Benefiting from a Town Tax Abatement?…

CFSIC is not a part of the decision-making process of the towns in the affected area and the way property tax abatements are handled for those homeowners who are victims of the crumbling foundations crisis. The property tax abatement process is between you and your town.

However, for those of you receiving a tax abatement who have not applied to CFSIC yet, or for those of you who are Inactive claimants and who have been “taking your time” to do what is necessary to become Active, or for those of you who are Active claimants who have simply postponed indefinitely seeking the necessary remediation proposals that would put you in the Participation Agreement line…be very careful.

CFSIC’s funds are finite. The CFSIC program will not go on forever. In fact, the Superintendent has stated publicly that it is the Board of Directors’ wish that CFSIC have in its sights the end of its mission. There is also no guarantee we will receive any future funding at all.

In short, there will come a day when your time runs out with CFSIC…and we’re guessing that there will come a day when your property tax abatement also comes to an end.

Then there is the issue of fairness. If you are receiving a tax abatement from your town, and you are doing nothing to help yourself as a victim over an extended period of time, you may begin to feel the consequences of that lack of action.

If you have not applied, do so…if you’re an Inactive claimant, make yourself Active…if you’ve been putting things off because a remediation is just not convenient, you could lose.

What’s a Contractor’s Worksheet?…

When you return your Participation Agreement to the Superintendent’s office, signed and witnessed, we require that you also return two other things: a copy of your completely signed construction contract and a copy of the contractor’s worksheet.

What’s a contractor’s worksheet? It’s actually the most important document in the process.

The worksheet is the document each contractor uses to calculate the linear and square footage of your foundation and to determine if he can actually do the job based on CFSIC’s allowable linear and square footage cost allotments.

A contractor can’t actually give you a proposal without first having done the calculations using the worksheet…which enables him to transfer those calculations to the construction contract itself.

Here’s the key: ASK YOUR CONTRACTOR FOR A COPY OF IT. Keep a copy of the contractor’s worksheet with a copy of the contract you actually signed (not a copy you didn’t sign.) A fully executed contract and the worksheet, along with your signed and witnessed PA, is what moves your name out of the PA line and into the funding stream.

Keep a copy of everything connected with your foundation replacement. You’ve committed to a major construction project. When your name is called…be ready.

Be Ready When Your Name Is Called…

You’ve applied to the CFSIC program. You’ve been diligent about completing your application, signing it, and submitting it with your points of evidence.

What seems like a long period of time goes by when you hear nothing.

There’s a reason for that. Our dedicated claims adjustment staff at ESIS has been working with claimants who applied long before you did. As anybody who has gone through the application process can tell you, when a member of the ESIS staff finally opens your claim file for the first time, the last thing you want is for that adjuster not to be able to make you “Active” as soon as possible.

So what’s the biggest cause of our staff being unable to make Pending claimants Active? No Severity Class coding of the foundation.

Unfortunately, many claimants just don’t read our website. They submit a core test report only, thinking that’s what we need to pay a claim.

Let us repeat again…CFSIC will never pay a claim based on the results of a core sample.

If you’ve gone to all the work and trouble of applying to the CFSIC program, and we get to your claim and open it up, and you haven’t had a visual inspection done, it’s as if we never opened your claim at all. We can’t make you Active until you get that visual inspection report filed as part of your claim. We move on to other claimants very quickly as a result.

It’s really simple: get a visual inspection of your foundation done and make that report a part of your CFSIC file. Be ready when your name is called.

One last point: unless the hard work we are undertaking results in another $100 million or more in funding, those claimants lacking a visual inspection report could be left behind.

Go here for a list of CFSIC-certified home inspectors and professional engineers (PDF) who can assist you with a visual examination report.

A Reminder About the Participation Agreement Line…

Each week the Superintendent’s office gets many calls from claimants wanting to know when they will get their Participation Agreements.

Most of these calls go well and go quickly. These claimants understand where they are in line and, when we can, they are given an approximate date on which their PAs will be emailed to them.

Other calls go less well.

A number of claimants feel that because of special circumstances their claim should get funding ahead of other claimants. Some claimants believe that we are withholding funding from them for obscure reasons.

None of this is the case.

Today, as we process PAs, we will be doing so for claimants who, in some cases, went into line in April of 2024. Not only are these claims being processed by the date on which they went into line, but also the time they went into line on that date. It’s that precise. In order to process a PA, it takes up to several hours of fact-checking before the email can be sent transmitting the PA. In roughly 45% of the cases, claimants don’t read the transmittal email we send them, and, as a result, they send back incomplete claim information to our office.

No one gets into the line ahead of anyone else. No call from an elected official moves someone into the line more quickly. If you entered the PA line, for example, in December of 2024, be aware that today we are issuing PAs to people who entered the line in April. It’s the way the system has always worked.

Understanding the way that PAs are issued will help you think about the schedule for the remediation of your foundation. It will also help you understand how everything we do at CFSIC is done objectively and by the rules.

Understanding the Severity Class Code…

This week we’re pleased to launch a new video highlighting the CFSIC Severity Class code system.

View this conversation between our Superintendent, Michael Maglaras, and Kevin Miller.

This informative and interesting video is designed for first-time home buyers as well as existing homeowners interested in knowing more about CFSIC’s Severity Class coding system, how it works, and how it is used to effectively assess the condition of a home’s foundation.

We hope the public finds this video useful in understanding how the CFSIC home inspector and engineer certification course is our first line of defense in understanding the extent of the crisis and the reality of the crumbling foundations natural disaster.

$25 Million Received…

We are grateful to the CT Department of Housing for assisting us in getting our next $25M in revenue bond commitment, which was received just a few days before Christmas.

This is the revenue bond that was approved by the CT Bond Commission in August.

With these funds, we will open the New Year with a huge push to get Participation Agreements into the hands of the victims of this crisis…and in particular those Severity Class coded 2 victims, who have been waiting, in some cases, for upwards of two years.

In 2025 we open a new chapter in the crumbling foundations story. We see light at the end of the tunnel. The technical end of this crisis can now be measured in years rather than decades.

As we begin the New Year, we extend special thanks to the great team at ESIS, who have worked so hard to serve the victims of this crisis and who remain on the front lines every day of the week, making a difference in people’s lives.

CFSIC Certification Course Completed…

On December 12 and again on December 17, Kevin Miller conducted the day-long CFSIC first-time and annual recertification courses for 2024, providing certifications to qualified home inspectors as well as those professional engineers who voluntarily take the course work.

As of today’s date, you should go here to read the names of the persons having taken and passed the course (PDF). Please read all footnotes carefully.

This list appears in the “For Homeowners” section of the website as #16.

PLEASE NOTE: visual inspections conducted by anyone on this list are valid for the submission of claims to CFSIC…however, the cost of these visual inspections is not reimbursable in whole or in part by CRCOG unless conducted by a CT-licensed professional engineer.

Lastly, next week we will launch a new and important video, featured on the home page of this site. This will be an interview conducted by Michael Maglaras, our Superintendent, with Kevin Miller, who has created and who continues to lead the certification courses sponsored by CFSIC.

Our Most Recent Audited Report…

In the continuing spirit of transparency, we are pleased to post CFSIC’s latest audited financial report (PDF) for the period ending June 30, 2024. This is the sixth annual audit we have posted in the “Useful Links” section of this site since the inception of CFSIC’s operations.

This audit complies with our statutory requirements as well as the State of Connecticut Single Audit Act requirement.  The audit reflects CFSIC’s financial condition as of June 30, 2024. The auditors found no material weaknesses, deficiencies, or non-compliance issues related to CFSIC’s financial operations.

Revisiting the “For Homeowners” Section…

The fastest way to learn as much as you can about how to file a claim with CFSIC is to go to the “For Homeowners” section of this site.

In the “For Homeowners” section, you’ll find 21 useful links that can take you immediately to sections of the site where you can learn about the program, see if you are potentially eligible, and make an application to CFSIC.

We’d like to think that this site is the go-to place for information about this crisis and for the kind of information that the victims of the crisis need in order to understand what they are up against.

But starting with the “For Homeowners” section is our recommendation. It’s the best way to become acquainted with the contents of our site and the ways in which CFSIC is making a difference in the lives of the victims of this crisis.

Still Waiting for Our Funding…

We have not received the next allotment of our bond funding from the State of Connecticut, which was approved on August 8.

For those of you who have been informed that your Participation Agreements will not be sent to you until we receive that funding, please be aware that the timing of the funding is out of our control. We are in continual contact with state government on this issue, and we will be certain to update everyone as soon as those funds arrive.

Meanwhile, we are coming close to the end of the Healthy Homes funding. We do not believe, however, that we will have to shut down the PA line before the close of the calendar year.

Need a Map?…

Since the beginning of the crisis, a map has been circulating showing the affected towns where this crisis exists and is apt to exist. The map has been a good effort by CRCOG to keep people informed about the extent of the crisis and has been a great guide, particularly for those considering purchasing a home in the affected area.

We think CFSIC’s Annual Report is also a good guide.

It’s not a map, for sure…but what it is, is a detailed town by town report of every application CFSIC has received, how much in remediation we have paid for, and how much in remediation remains outstanding. Looking at a map is a good thing. Looking at a list of the towns most affected by the crisis, with the actual numbers showing, may even be a better thing.

See CFSIC’s most recent Annual Report (PDF).

See infographics that show the process we have made to date (PDF).

We receive many calls each month from people considering buying a home in the affected area. They’re looking at homes in two or three towns. They’re relocating from another part of Connecticut or another part of the country. We always send them to CFSIC’s Annual Report. There they can examine the extent of the crisis with real numbers in front of them.

Educating Yourself on the Crumbling Foundations Crisis…

We know many of you want to learn as much as you can about the crumbling foundations crisis, and we know that our friends and neighbors in Massachusetts are still trying to learn as much as they can about the causes of crumbling concrete and what can be done to help the many victims there.

It’s for this reason that we redirect everybody’s attention to Kevin Miller’s articles on this subject, all of which can be found here.

What’s the science? What are the telltale warning signs? How can you tell the difference between a pyrrhotite-infected foundation and a foundation suffering from the effects of ASR? What are the benefits of core testing, and what are some of the drawbacks?… it’s all here.

We encourage anyone interested in learning about this crisis to go here first. This is the place where you get to the truth about why concrete crumbles, how it deteriorates, and how you can get information to make yourself an educated consumer of remediation services.

CFSIC has been on the forefront of education and training on this subject. In December, we’ll be publishing a new video interview with Kevin Miller that we know will continue to add greatly to these educational efforts.

What Is the Contractor’s Worksheet?

When you get your Participation Agreement, it’s attached to an email giving you instructions about what you must do and what you must return to us.

Because as close to 50% of our claimants don’t bother to read the email, they don’t return the documentation we require, and their claims are delayed.

It’s really very simple. You must return:

1) your signed and witnessed Participation Agreement;

2) a fully executed copy of the construction contract you have entered into (“fully executed” means signed by you and by the contractor); and

3) a copy of the contractor’s worksheet.

It’s just three things.

What’s the contractor’s worksheet? It’s the document that the contractor completed when the contractor measured the linear and square footage of your foundation in order to bid on its replacement. The contractor’s worksheet utilizes the linear and square footage costs permissible by CFSIC and is a vital part of what our claims adjustment staff uses in order to approve a contractor’s proposal for your further consideration.

If you do not have a copy of the contractor’s worksheet…ask your contractor to send it to you. You cannot obtain a copy by going back to your claim adjuster. You must have this document in your possession, or we cannot approve your claim.

Above all else, it’s really important to read the email we send you, because all of this is spelled out very clearly and has been since Day One. Our goal at CFSIC is to move your claim as quickly as we can through the adjustment process and get your foundation replaced. Help us do that by simply reading what we send you.

Our Sixth Annual Report…

Read the Superintendent’s sixth Annual Report to the CFSIC Board of Directors (PDF). This report is now posted on the Useful Links section of this website. This report is the definitive guide as to the status of the CFSIC program and the towns in Connecticut where this crisis is known to exist.

1,000 Families Served…

We’ve reached the milestone of 1,000 families served.

This is an important milestone for many reasons…not the least of which is because each one of those families is a victory, because each one of those families had nowhere else to turn except CFSIC.

As we pause to celebrate this achievement, it’s important to recognize the great team who has worked one-on-one with families to make this day happen: Nicole Carrozza, Jenny Nguyen, Ryan LaFountain, Andi Ireland, Shannon Fraize, Caitlin Emanuel, and Jeff Tager. The people who, behind the scenes, have worked with families and contractors to get this job done. The great team at ESIS.

We’ll take a moment to celebrate them as we celebrate this victory…but it will just be a moment: as today, Monday, October 14, 2024, we must continue our work…opening applications, working with victims, paying contractors on time, and returning tax revenue to the hard-hit towns affected by the crumbling foundations crisis.

What You Return with Your PA…

When you are finally emailed your Participation Agreement, the email transmitting the agreement will be very clear about what you need to send back to the Superintendent’s office.

Many claimants do not read the email transmittal from beginning to end, and, as a result, with almost 40% of the PAs we get back, the process is delayed…simply because the email hasn’t been read.

In summary, here’s what you need to send back:

– Your signed PA with your signature witnessed (by anyone over the age of 18). Please bear in mind that you do not have to have your PA notarized.

– A fully executed copy of the construction agreement entered into between you and your chosen contractor. (“Fully executed” means signed by you and signed by the contractor.)

– A copy of the two-page contractor’s worksheet, completed by the contractor, showing the way in which the contractor calculated the linear and square footage of your foundation replacement in order to calculate your allowable costs.

That’s it…it’s three things…and almost 40% of the victims who respond don’t get it right.

If you don’t have a fully executed copy of the contract you have entered into with your contractor, or a copy of the contractor’s worksheet…get in touch with your contractor. They will provide it to you. It’s a request they get all the time. You cannot obtain these things by calling your claim adjuster at ESIS. Our audit process requires you to have these documents in your possession at all times and provide them directly to the Superintendent’s office.

After waiting a year or two or more, don’t let your PA get stuck in line. Return to us what we need, and from that point on the process moves quickly and efficiently.

CFSIC Certification Course Announced…

We’re pleased to announce that the 2024 CFSIC home inspector certification course will be conducted on December 12 and 17, 2024.

The course work has been prepared by our concrete scientist Kevin Miller and is designed to first-time certify or recertify CT-licensed home inspectors wishing to participate in the CFSIC program by educating them in the foundation visual inspection process. Annual recertification is mandatory.

We’re also pleased to report that a number of professional engineers (who are not required to take this course by virtue of their being licensed in CT as engineers) do so anyway, because of the cutting-edge science and information available to them.

At the conclusion of the day’s study and coursework, an examination is taken…an exam with a fairly high failure rate.

Within a few days after the final course is completed on December 17, we will publish (in the Useful Links section of this website) the names and contact information of all currently certified home inspectors as well as those engineers who have taken and passed the course.

This certification course is free of charge and is one of the ways that CFSIC is helping the victims of this crisis. CFSIC continues to embrace and utilize the visual inspection process to pay claims for crumbling foundation claimants.

CFSIC’s visual inspection certification course is the only one of its kind in the world.

Upcoming Annual Report…

We are working on CFSIC’s Annual Report…a report that the Superintendent provides once each year to CFSIC’s Board of Directors detailing the work CFSIC has done and the work remaining to be done.

There have been five prior Annual Reports. Each one shows the evolution of the crumbling foundations crisis, and each one shows how CFSIC has been addressing the crisis over the past five years.

For those persons asking the all-important question, “How do I know which towns within the affected area have the most crumbling foundations before I buy a home there?”…this is the report to read.

The history of the crisis is summarized in these reports.

Read the last five Annual Reports.

Healthy Homes Funds Received…

We’re pleased to announce that CFSIC has received just a little over $11 million in Healthy Homes surcharges.

This means that the Participation Agreement line is open and, for many of you, this means that the countdown has begun.

We will move Active claimants from the Participation Agreement line into the signing and countersigning process as quickly as we can. Please be patient. We must re-open the line and begin with the very last claimant we stopped with, who entered the PA line in the late fall of 2023.

To be clear, we do not have our funding from the CT Bond Commission yet. That funding arrives when it arrives. Last year, it didn’t arrive until November.

We will keep the public informed of our funding progress as we move toward the goal of 1,000 families served.

Join Us in Ellington on September 17…

CRCOG and CFSIC are hosting a Crumbling Foundations Regional Update on Tuesday, September 17, from 6:00 to 8:00 PM at the Ellington High School Auditorium.

The Superintendent of CFSIC, Michael Maglaras, will be there and presenting on the subject of the progress we’ve made to date. There will be time for questions.

We encourage those are interested in learning more about CFSIC to attend…and particularly those who have not yet applied to the program.

This will be an informative session presenting not only facts about the crumbling foundations crisis but also projecting the extent of what remains of the crisis. Your attendance is encouraged.

What Does It Take?…

Within a few weeks, we hope to be celebrating 1,000 families returned to safe and secure homes.

Currently the Participation Agreement line is closed as we await our next round of bond funding and of course the important funding we receive from the Healthy Homes surcharge. We are very grateful for these sources of funding, because we will continue to use this funding wisely and efficiently.

But what’s the real secret for the continued legislative and governmental support of this program?…what’s keeping the funds flowing?

– Broad-based Support: Of the 169 towns in Connecticut, we have claimants in 46 of those towns as of our last annual report. But 87% of our claimants live in only ten of these towns. That means that the majority of this crisis exists in less than 6% of the towns in Connecticut. Without the legislative support of elected officials from towns where there is no crumbling foundations crisis, we wouldn’t have a program. In other words, the votes to support our funding from legislators representing towns where this crisis doesn’t exist are just as important as the votes of legislators within the heart of the crumbling foundations crisis. Connecticut is unified and committed to solving this problem on a statewide basis.

– A Supportive Governor: Former Governor Malloy launched this program with enthusiasm; Governor Lamont has continued that robust support. Without support at the top, nothing happens at CFSIC, and nothing could happen.

– Professional Infrastructure: CFSIC is a Connecticut-licensed captive insurance company under the direct supervision of the CT Insurance Department. We are not a “fund”; we are not a branch of state government; we are an independent licensed insurance company managed by outsourced professionals and funded with taxpayer dollars. We believe that this public/private partnership is the best model, as we are held accountable by an independent volunteer board of directors, and our operations are audited twice each year. Infrastructure, raising houses, operating well below our statutory budget allotment, keeping the public informed, and, most importantly, helping the victims of the crisis one home at a time. All the plans in the world to address this crisis do nothing if you can’t take an application; if you have no claims management staff; and, in short, if you have no infrastructure.

– Robust Activism: CFSIC would never have been created without a unified and robust activist effort at the grass roots level. Activism continues to be important as we seek another $160 million of funding starting in 2026 to finish our job and eliminate this crisis in our state. Activism is just as important today as it was in 2016. The only difference now is that we can actually see the end of this crisis in sight, and in 2016 we couldn’t.

So, as we await our next round of funding from state government, and as we push towards 1,000 families served, it’s a good idea to pause and reflect on how we have gotten as far as we have since we opened our doors on January 10, 2019. The secret to understanding CFSIC’s success is that the people of Connecticut are committed to assisting their neighbors, even if the vast majority of those people aren’t living through the crumbling foundations crisis themselves.

Bonding Approved…

On August 8, the CT Bond Commission met and approved our next $25M in bonding. We are very grateful to Governor Lamont and to all members of the Bond Commission for their support of the victims of the crumbling foundations crisis.

To be clear…the PA line is still closed. We will immediately re-open the PA line once funds from state government are transferred to us.

Please bear in mind that we are still awaiting Healthy Homes surcharge funds as of today’s Latest News.

Meanwhile, all of our underwriting and claims management processes continue, and new applications are arriving, including applications from a new and significant condominium complex where documented evidence of the extent of the crisis exists.

As soon as funds are received, we will announce it here and re-open the PA line on the same day.

Preparing to Transfer Your Claim…

The key to getting your CFSIC claim transferred to the new owner of your home is simple: don’t walk away from your claim.

If you are a current CFSIC Type 1 claimant…it doesn’t make any difference if you are Active, Inactive, or Pending…you have the ability to transfer your claim to a buyer of your home. HOWEVER, here’s what too many claimants still do: they walk away from getting the claim transferred the split second the sale is made.

Once papers are passed, you have a maximum of 30 days to take responsibility for the complete passage of your claim from you to the new owner. The new owner can’t do it for you. Your real estate agent can’t do it for you. CFSIC staff won’t even speak with either of them about your claim. We can only speak to and deal with current claimants; and if you have sold your home, you’re still our claimant until the claim transfers to the new owner.

Is the process complicated?

Of course not. However, the number of claimants who have walked away and invalidated the claim transfer is an unfortunate number. Then there is the whole issue of what you have misrepresented to your buyer, who thought they would be assuming your place in line, through the claim transfer process, and couldn’t because of your failure to follow through. The legal implications will be obvious.

Go here to learn the process of transferring your claim and sticking with it until it’s done.

The claim transfer process works, sometimes in as little as one day. Play the game by the rules, and both seller and buyer win.

Saying Good-bye to a Friend…

In Yiddish the word is “mensch.”

That’s what Jeff Tager was…he was a mensch.

We lost Jeff on July 22 after a long illness. Many of you as claimants had interactions with Jeff. He was an “old school” claim adjuster. He knew the CFSIC program inside and out. As the team leader at ESIS ProClaim he directed the operations that made sure your applications got opened, your claims reviewed, and your remediations started.

Today, when you speak with one of the great CFSIC team members at ESIS ProClaim, know that it was Jeff Tager who either directly trained and mentored that professional, or trained and mentored someone who in turn passed on that knowledge and wisdom to a new team member.

Jeff frequently showed up on the construction site. He met with homeowners. He met with contractors. He did it face to face. The contractors who went toe-to-toe with Jeff (because they felt that the imposition of rules and guidelines over the disbursement of taxpayer funds was somehow a violation of their Constitutional rights) learned quickly that they would get nowhere with Jeff. The rules were the rules.

Jeff was with me on January 10, 2019 at 9:00 AM when we opened our doors. Many people thought our innovative electronic application system would crash and burn under the weight of applications. It didn’t. Jeff led a remarkable team, who opened those applications and began the complex process of adjustment and payment. He did it with grace. He did it with dignity. And above all else he did it with compassion. He will be missed.

Upon his departure from the program, Jeff was replaced by a new ESIS ProClaim team leader, Shannon Fraize, who brings the same level of professionalism and compassion to the CFSIC program.

As Superintendent of CFSIC, I’m directing today that our annual CFSIC foundation certification training program be re-named “The Jeff Tager Memorial Foundation Certification Program.” Jeff was interested in education at all levels. It’s the least we can do.

Jeff was an old-fashioned businessman (as am I). If you called him, he picked up the phone, and he expected you to do the same thing, because a telephone call in the middle of a business day was not an interruption for him, as it’s not an interruption for me. It’s the way business gets done…on the fly, off the cuff, you know what I mean. He was never “in meetings” (even when he was in fact “in meetings”). He was not a slave to Outlook. Nothing had to be scripted; nothing had to be planned; he took each business day as it came, with all the fun stuff and all the less-than-fun stuff taken in stride.

Yes, he was a mensch. He will be missed.

– Michael Maglaras, Superintendent, CFSIC

The PA Line Remains Closed…

We have no further updates on when we will receive funds from the State of CT, starting first with the Healthy Homes funds. We will keep everyone updated with what we know, as we know it. When we receive funds, it will be announced on this page.

When You Get Your PA…

When you do get your Participation Agreement, it’s important to remember that, if you return it quickly and you follow the directions in the email transmitting the PA, which are clearly outlined in that email, many times your PA is placed in front of the Superintendent for his countersignature in as little as 48 hours. It’s very important to follow the directions though…40% of CFSIC’s claimants do not bother to read and follow the directions, which are simple and clearly stated, and their claims are delayed.

Here’s exactly what it says at the bottom of the email transmitting the PA to each claimant:

“When you send it back to us, YOU MUST INCLUDE a complete copy of your fully executed construction contract, as well as the worksheet provided by your contractor, where that worksheet calculates the cost of the allowable concrete work.

Attach these documents to the Participation Agreement. you MUST do this even though we are already in possession of the contractor’s proposal and worksheet.

A failure to include the construction contract and worksheet with your Participation Agreement can significantly delay the processing of your claim.”

Getting an executed PA is the easiest part of the process if you follow the directions.

The PA Line Is Still Closed…

As of today, Monday, July 15, the Participation Agreement line is still closed.

No further new PAs will be issued by the Superintendent’s office until further notice. What will cause the PA line to open again is when we receive our next round of funding, which is most likely to be the Healthy Homes surcharge, followed we hope by our bond allotment from the CT Bond Commission.

We urge all claimants who know that they are in line for a PA, because they’ve contacted the Superintendent’s office, to be as patient as possible.

Literally the day on which we receive additional funding we will re-open our doors for new PAs.

Meanwhile, the work of CFSIC goes on…taking new applications; moving Pending claimants into Active Status; fielding email and phone questions from claimants and contractors; and in general administering lots of construction underway from PAs issued in some cases more than a year ago.

The Superintendent maintains a limited amount of surplus funds in the event of an absolute emergency. He has no reason yet to release surplus funds but will do so if, for some unforeseen reason, any part of our funding does not arrive between now and October 1. To be clear, these are reserve funds, and the use of reserve funds can only be limited and for a limited amount of time.

Rest assured that we are working with our colleagues in state government to get these funds moved to us as quickly as good business practice allows.

What We Expect You to Do When You Get Your PA…

Once a Participation Agreement is countersigned by the Superintendent, it is returned by email to the claimant, most usually on the same day the Superintendent countersigns it.

A copy of the countersigned PA is provided to the contractor chosen by the claimant. It is also provided to the claim adjuster who has worked with the claimant throughout the process. At that point, within 72 hours of the chosen contractor invoicing CFSIC for a deposit, that contractor has a deposit for the agreed upon work to be performed in order to secure that claimant’s contract.

At the end of the email transmitting the countersigned PA, the following statement is shown in red exactly as you see it here:

“YOU ARE NOW REQUIRED TO CONTACT YOUR CONTRACTOR AND SETTLE ON A PROBABLE START DATE FOR YOUR CONSTRUCTION. CLAIMANTS WHO DO NOT HAVE A PROBABLE START DATE AGREED TO IN WRITING WITH A CONTRACTOR WILL EVENTUALLY BE REMOVED FROM THE PROGRAM TO MAKE WAY FOR CLAIMANTS IN NEED.”

We police this. We believe that the contractor and the claimant should have an agreement as to a reasonable start date for construction to begin. We think it’s only fair. Claimants work hard to apply. They wait a very long time to have their claims become Active…and then they have to wait again for funding to be available based on their place in the PA line and, of course, for our state funding to arrive.

Unfortunately, sometimes it’s just “inconvenient” to get construction scheduled. When the Superintendent finds out that a claimant is not making plans anytime soon to have remediation work done, the Superintendent personally reaches out to that claimant and asks why there is a delay.

From time to time, there are legitimate reasons. However, the majority of the delays are caused by no legitimate reason except reluctance to “clean out my basement.” The Superintendent provides a timeline to the claimant under which the claimant must work with the contractor to schedule construction. Let’s repeat that…it’s not a timeline to begin construction; it’s a timeline to actually schedule construction. That timeline is then put in writing by the Superintendent.

If the timeline isn’t met, the claimant is removed permanently from eligibility, and the funds are passed on to the next person in line. We have too many people in need who have waited too long for funding to tie up that funding unnecessarily and not for a valid reason.

We encourage all claimants with PAs to have an approximate start date agreed upon with their contractors. The Superintendent’s office has the ability to call those contractors, and one by one, claimant by claimant, ask whether a probable start date has been established.

CFSIC’s funds are limited, and CFSIC’s funding is never secure. If, once you’ve gone to all the work of finally getting your countersigned PA, you decide that it’s more trouble than it’s worth, be prepared to be moved permanently out of line.

Lastly, a word of caution to claimants who have been made Active. If you have been made an Active claimant, you should be interviewing contractors, seeking the requisite minimum of two proposals for construction services, and otherwise following through with getting yourself ready to have the chosen contractor proposal approved and for your claim to move into the PA line.

We don’t welcome unnecessary delays in the process of seeking contractor proposals and moving ahead with the final stages of your claim. Again, there are too many people waiting for limited funds. The same process as above with PAs will apply to those newly-Active claimants who decide, without a valid reason, to “postpone” the process. After an appropriate warning and an appropriate consideration of specific circumstances, if it is determined that you’re making no realistic effort to do what must be done as an Active claimant, you will be moved out of line permanently.

Let’s remember something: the taxpayers of the state of Connecticut pay our claims adjustment staff to work hard to get you ready for your foundation to be remediated. Many of these taxpayers do not live in the area affected by the crumbling foundations crisis…but they’re bearing the burden of the crisis anyway. You owe them your attention to your claim matter by following through with all steps of the process appropriately.

Happy New Year!…

For most people, a greeting of “Happy New Year” only comes on January 1…but not with CFSIC.

Today, July 1, we begin our “new year.” Our year begins on July 1, because that is our fiscal year…July 1 through June 30.

Everything begins on July 1 of every year, including our next round of funding.

We’ve already been made aware by the Connecticut Insurance Department of the first calculation of Healthy Homes funding for our new year, but that calculation must be audited by the Connecticut Department of Housing, and those funds transferred from the CID to the DOH, and then finally to us. It takes a while for the audit process to be completed, but it is worth the wait…as it’s the launch of our new year.

It’s also in our new year that we petition the CT Bond Commission for our next round of funding. Let’s be clear: no round of CT Bond Commission funding is ever automatic. We must justify the need, justify our expenditures, and justify our continued existence. That task is not onerous, as we believe that the data substantiates the continuing case to keep the funding coming.

The CFSIC Board of Directors will meet in the month of July to take stock of important governance issues and to hear reports from management. It is the Board of Directors of CFSIC, all of whom are volunteers, who provide CFSIC’s management with wisdom, guidance, and oversight. As we start our new year, we’ve set some targets, and we’ve set some goals:

– We will the number “1,000” families served in our new year.

– We will convert a minimum of 75 Pending claimants to Active status, which will enable them to move as quickly as they are able to move to get into line for a Participation Agreement.

– We will launch a new collaborative project with CRCOG and the top ten towns affected by the crisis to identify the extent of the remaining crisis in those top ten towns.

– We will finish with the last big series of original condo remediations in the affected area, and we will move the first group of claimants of our most recent Pending condo applications into Active status.

– We will produce and launch a new video aimed specifically at first-time home buyers and real estate agents on the subject of the importance of visual foundation inspections and the assignment of Severity Class codes.

– We will update the annual mandatory curriculum as part of our CFSIC home inspector and engineer re-certification effort to incorporate the latest concrete science on the subject of crumbling foundations.

Lastly, we will begin the process of raising awareness among legislators, state agencies, and others about the need for one final funding commitment of $100 million. For all the data indicates (and it’s hard data) that we can end this crisis by the end of 2030 with one last tranche of funding.

All this is a tall order…but the Superintendent believes all of it can be done. The hard work begins on the first day of our new year, which is not a holiday at CFSIC. It’s just another day at work.

Reminder: The PA Line Is Closed…

As a reminder, the Superintendent directed that the Participation Agreement line be closed effective June 3, 2024. There will be no new PAs issued by CFSIC to claimants from the Superintendent’s office until the next round of funding is received.

It’s important to remember that CFSIC’s funding comes in two pieces: the first is the Healthy Homes surcharge, which in the past has generated between $10M and close to $11M each year. The second piece is our bond commitment from the CT Bond Commission. Effective at some point after July 1, 2024, we hope and expect to receive $25M from that source.

These funding allotments arrive separately. They never arrive on the same date in any given year. Generally speaking, the Healthy Homes funds arrive before the CT Bond Commission allotment. They cannot be paid to us before July 1 of every year. We’ve closed the PA line because what we don’t want to do is run out of existing funding within CFSIC and have to start laying off claims adjustment and support staff. As a result, we carefully gauge when we have to close the line.

We’ll keep the public posted about what we know and when we know it, in keeping with CFSIC’s commitment to transparency and to communication with the victims of this crisis.

One last point…whenever we make an announcement about the PA line closing, we get emails and calls from claimants in a panic. They are in the middle of their foundation remediations and are under the impression that what is happening is that we are cutting off their funding in the middle of their projects. Our system isn’t set up that way. If you have in your possession a signed PA, it means that your project is fully funded. At CFSIC, we never spend money we don’t have.

The Delivery Ticket Program Is a Success…

It’s been almost five months since CFSIC instituted its mandatory concrete delivery ticket program. We’re pleased to report that we have 100% compliance from all contractors participating in our program who provide Type 1 or Type 2 remediation services.

Since February 2, 2024, it is a requirement that a concrete delivery ticket containing all relevant concrete weights and measures, as well as the source of the concrete, be provided to CFSIC for each and every truckload of concrete delivered as part of a residential foundation replacement paid for by CFSIC…without regard to whether it is a Type 1 or a Type 2 claim. If two delivery trucks show up on separate days for any foundation replacement, that’s two separate delivery tickets…if it requires three deliveries, that’s three tickets, etc., etc.

These delivery tickets must be presented to ESIS claim adjusters, or contractors are not paid the last installment for Type 1 work performed. Similarly, in the case of any Type 2 reimbursement for a foundation replacement paid for by a homeowner, where the work commenced on or subsequent to February 2, 2024, CFSIC will not make any final payment to that homeowner.

We’re pleased to report that all contractors have been in compliance since Day One of the delivery ticket program, and we now have a permanent record in CFSIC’s files of where concrete comes from, its weights and measures composition, its water content, and the time elapsing between when a load is received by the driver and when the pour begins at the claimant’s home.

All this data is stored within each claimant’s file and stored in perpetuity.

If at some point in the future a claimant needs to see the delivery ticket evidence to defend their position, the data will be there. Similarly, if a contractor needs it for the same purpose, it will be there. It will be stored in multiple secure locations, including the Cloud, without limitation and without duration. Because it is part of a claimant’s file, it will however remain confidential and inaccessible to the public, in keeping with CFSIC’s long-standing pledge to maintain the confidentiality of the information we gather in support of the victims of this crisis.

But here’s the bottom line…we now have an evidence trail supporting every residential concrete placement CFSIC pays for. No more guesswork. No more “burned up records.” CFSIC has always dealt with the facts, and this last piece of the puzzle is now in place and will be in place as long as the program is paying claims.

Eligible to Be a Claimant?…

It’s time to remind everyone of some fundamental parts of the CFSIC program.

Our published Underwriting and Claims Management Guidelines clearly state how you can be eligible to become a claimant…and, eventually, an Active claimant with a Participation Agreement. These same guidelines also clearly state how you can be ineligible.

However, we note that there still seems to be a great deal of confusion about “eligibility to make a claim to CFSIC” versus “becoming an Active claimant.” They are not now and have never been the same thing.

So, let’s go back to the concept of “eligibility,” and let’s look specifically at the “February 1, 2019 Rule.”

If you purchased your home on or after February 1, 2019, and you want to be eligible to apply (make a claim) to CFSIC right away…or even at some point in the future…you need to have:

– a visual inspection report (not a traditional home inspection report, but a foundation visual inspection report, which is a totally separate thing) performed by a CT-licensed professional engineer or a CFSIC-certified home inspector;

OR

– a core specimen analysis.

One of these two reports had to have been in your possession when you closed on that home. Meaning, literally, the day you closed on that home purchase.

CFSIC doesn’t care if one of those two reports was ordered and purchased by the seller or the by the buyer…if you, as the buyer, don’t have it in your possession when you buy that home, you will never be eligible to apply to CFSIC to begin with.

Let’s repeat that.

It’s not both reports. It’s just one of the two. And it must be in your possession and dated prior to the date on which you closed on the home.

If at some point you apply to CFSIC, and one of our claim adjusters discovers that you had neither of these reports in your possession when you purchased your home (and they will discover it), your application will be rejected.

So, here are a few questions about the 2/1/19 Rule:

– Does the core analysis have to show any meaningful level of pyrrhotite in the sample, or for that matter any level of pyrrhotite at all?… No.

– Does the visual inspection report have to show and document obvious signs of pyrrhotite infection and provide a Severity Class code of 2 or 3?… No.

– Can the visual inspection report, for example, show a Severity Class code of 1?…Yes.

– Can the visual inspection report, for example, indicate a finding that is “inconclusive”?…Yes.

You read all of that right.

The February 1, 2019 Rule is simply designed to force awareness of the existence of the crisis. We think at CFSIC that forcing awareness of the crisis is part of the process by which we eliminate the crisis. Making people aware that a crumbling foundations crisis exists by enforcing this eligibility requirement is what the 2/1/19 Rule is all about.

Allowing you to be eligible to apply, as opposed to actually being accepted as a CFSIC claimant, is a difference many people simply don’t understand.

So, let’s say you’re about ready to buy your home. And let’s say you engage a CFSIC-certified home inspector, prior to closing on the home, with the owner’s permission, to conduct a separate foundation visual inspection. (Again, this has nothing to do with the traditional home inspection, and we cannot emphasize that point enough.) And let’s say that the basement is unfinished. Let’s say that no finishing such as sheetrock covers the majority of the viewable wall space. And let’s say for the sake of this example that the inspector determines that a Severity Class code of 3 applies and provides you with a report accordingly.

Do you now have what you need to be eligible to apply to CFSIC to begin with? You do.

Do you also at this point have what you need to potentially have a claim paid by CFSIC? You do, because you have an inspection report that indicates a Severity Class coded 3 foundation.

Another example. Again, let’s say that the basement is unfinished. Let’s say again that no finishing such as sheetrock covers the majority of the viewable wall space. And let’s say for the sake of this example that the inspector determines that a Severity Class code of 1 applies.

Do you now have what you need to be eligible to apply to CFSIC to begin with? You do, because even though CFSIC will not replace a Severity Class coded 1 foundation, CFSIC permits Severity Class code 1 claimants to apply for possible consideration in the future when their severity code migrates to a Class 2 or 3.

Finally, let’s say that the basement is finished, and the majority of the wall space is covered with sheetrock. The CFSIC home inspector does not see any visible signs of pyrrhotite damage in the area he can see, but because he cannot physically view and photograph a minimum of 51% of the wall space, the inspector tells you that he cannot provide you with a Severity Class code of 1, because the current owner would not remove enough of the covered wall space so that the inspector could do his job correctly. However, he still provides you with a report, and the report indicates that the results are “inconclusive” with respect to severity class coding. You get a visual inspection report indicating an inconclusive finding, and you hang onto it.

Are you eligible to apply to CFSIC to begin with, even though the results are inconclusive? Yes.

Do you also at this point have what you need to potentially have a claim paid by CFSIC? You don’t, because your foundation could not successfully be Severity Class coded.

With regard to this last example, three years from now another inspection is done because map cracking is now evident on the part of the wall space that can be viewed, or you take sheetrock down to determine the true extent of damage throughout the basement because you are concerned at this point, and a further inspection reveals that you unfortunately now have a Severity Class 2 foundation because of the passage of time. Were you eligible to apply to begin with? Yes, because of the original inconclusive report done three years before.

Do you now also at this point have what you need to potentially have a claim paid by CFSIC? You do, because you have an inspection report that indicates a Severity Class coded 2 foundation.

In all three cases noted above, the homeowner did the right thing by observing the 2/1/19 Rule.

Additionally, in the examples of the Severity Class 3 and 2 coded foundations, those claims may potentially be paid by CFSIC. (As a reminder: no CFSIC claim will ever be paid that doesn’t carry a Severity Class code of 3 or 2.)

That’s why there’s a difference, and it’s an important difference, between eligibility to make a claim to CFSIC and having your claim paid.

So much is being written that is wrong about this process, and we need to set the record straight.

The Board of Directors of CFSIC believes in forcing awareness of the existence of this crisis. The “February 1, 2019 Rule” does that. It also enables the victims of this crisis to have hope, even in those circumstances where the original findings are “inconclusive”…because they can eventually apply successfully and have their claims paid if their foundation deteriorates, because they followed the rules.

Why are the rules important? The rules level the playing field for everyone, and it is adherence to all of CFSIC’s rules that gives state government confidence that the program is functioning well and is deserving of continued funding.

The PA Line Is Closed…

The Superintendent has directed that the Participation Agreement line be closed effective this morning.

It will not re-open again until the receipt of the next round of Healthy Homes funding, which we hope will be in our hands at some point in August. When it arrives, it will be noted in Latest News.

What does this mean for those of you awaiting your PA?

If you have been in touch with the Superintendent’s office and have been told that you are in the next round of Healthy Homes funding, you will be receiving your PA in due course once Healthy Homes funds have been received.

Remember a few things about our funding:

– There is never a fixed date for the receipt of funds.

– The timing of the receipt of funds given by the Superintendent’s office is always an estimate.

– Our second round of funding from the CT Bond Commission is always subject to whenever the Commission meets. The Commission frequently takes a break during the summer months.

We ask all claimants to be patient…your claim is not lost; if you are in line for a PA, your funding will eventually come. The exact timing of that funding is always up in the air.

We hope to be able to announce within the next 12 months that we have hit the number “1,000” families served. In order to do that, we must have our funding from both sources within our new fiscal year, which begins on July 1, 2024.

Why Is My PA Delayed In Being Returned to Me?…

Simply put: the single biggest cause of a delay in having the Superintendent countersign a PA is the failure by claimants to follow directions.

Many times each week claimants return only part of the required documentation. They do this despite the email they receive with clear instructions about what we need to get back. Those instructions are not only clearly explained, they are actually shown in bold to emphasize the importance of responding correctly.

Here’s what frequently doesn’t come back to us:

– A complete copy of the PA. Many just send back the signature page. The instructions in our email are clear on this point.

– A copy of the current version of the construction contract. Many people think we don’t need it, as their assigned claim adjuster already has it. It’s an audit requirement that it be returned to us along with your PA. You must send it to us with your complete PA as if we had never gotten it to begin with.

– A copy of the contractor’s worksheet. This is the document detailing the calculations performed by the contractor to arrive at allowable costs. This also must accompany your PA when you send it back to us.

Many claimants simply don’t read the email we send them, or they take it upon themselves just to send us what they feel like sending us. When this happens, you get moved out of line and set aside to make way for claimants who have followed the instructions.

We encourage claimants to ask questions if they don’t understand something or to call the Superintendent’s office for information…but simply not following the instructions doesn’t work and can greatly delay your receipt of funding.

Engineer or Home Inspector?…

The answer is both…provided that the licensed home inspector is also certified by CFSIC to provide a Severity Class code to your foundation.

We have many claimants who believe that the only person who can validly assign a Severity Class code is a licensed engineer. It’s just not true.  See the list of CFSIC-certified professionals (PDF) (both engineers and home inspectors).

So, some ask, “If they’re all equal for CFSIC’s purposes, why can’t I get reimbursement from the State of Connecticut for a home inspector’s report the same way I can for an engineer’s?”

The answer at CFSIC is that we don’t know. It was a decision made by the CT Department of Housing, because they and they alone have the authority. But for CFSIC’s purposes, we draw no distinction between a Severity Class code issued by a licensed professional engineer and one issued by a CFSIC-certified home inspector…and we never will.

If you are considering getting a visual inspection of your foundation, go to the list on this website and make some calls. Remember: you can never become an Active claimant without an assigned Severity Class code… whether a Class 1, 2, or 3. No core test or petrographic analysis alone will ever be sufficient to qualify you to actually receive funds from CFSIC.

Need Help with Understanding the Process?…

We know that some people may have difficulty with the application process. That’s why we always recommend viewing the video that is available on CFSIC’s website before you begin the application process.

This video presents a step-by-step guide to the completion of the application, and because you can stop and start the video at any point, you can toggle between the video and the application itself in order to complete one question at a time.

This video answers almost all of the commonly asked questions, and we’ve received many positive comments about its usefulness.

Also, we want to make mention of an important point about the application: the application has to be signed by a person. It’s an absolute requirement. The actual person signing our application becomes, for CFSIC’s purposes, “our claimant.”

If you co-own your eligible residential property with another person, such as your spouse, for example, both persons do not need to sign…only one. Later on, when you sign your Participation Agreement, the PA has to be signed by the same person who signed the application. And, again, the fact that a home may be jointly owned is not relevant to our process of tracking the name of the person who signs the PA back to the name of the original claimant.

Lastly, CFSIC is in the process of preparing a special video that will be of assistance to homeowners in understanding CFSIC’s visual inspection Severity Class coding process. This instructional video will feature Kevin Miller as well as our Superintendent. We’ll make an announcement this summer when that video is online.

Some Facts and Figures…

Periodically we take the time to inform the public about the status of the CFSIC program, how many people we’ve helped, and how the program is doing in general.

The Superintendent receives reports each Friday morning covering a broad section of information about the status of the program. This information tells us how we’re doing and how we are responding to the crisis, and allows the Superintendent to monitor our progress throughout the affected area.

So, here are some relevant facts and figures as of Friday, April 12:

– Number of Type 1 foundations remediated: 904

– Number of claims covered by Participation Agreements countersigned by the Superintendent: 1,229

– Value of Type 1 (remediation) claim payments to date: $129.5 million

– Value of Type 2 (reimbursement) claim payments to date: $10.0 million

– Reserves held for known Type 1 Severity Class 3 and 2 claimants who have applied to the program and whose files support those Severity Class codings: $72.1 million (reserves are not held for Pending claimants)

– Total claimants registered with CFSIC: 2,287

– Number of Severity Class 3 claimants registered with CFSIC: 1,340

– Average paid Type 1 claim: $155,441

– Average paid claim with PUDs and condos removed: $160,937

From time to time we’ll continue to update the public about where we are as we combat the crumbling foundations crisis and return safe and secure homes to the victims throughout the affected area.

Waiting for Your PA?…

Remember something important about getting a Participation Agreement: your PA will come from the Superintendent’s office. It will not come from your assigned claim adjuster at ESIS.

If you are awaiting a PA by email, and you’ve phoned the Superintendent’s office and have been given an approximate week that you’ll be receiving it…please don’t let months go by without simply asking the question, “Why don’t I have my PA yet?”

Yes, you read that right. Each week the Superintendent’s office reaches out to claimants who have gotten their PAs as much as three months earlier and have never responded. When someone from the Superintendent’s office phones them and asks why they have not signed and returned their PA, sometimes the response is “We’re just not ready to clean out our garage yet.” Yes, you also read that right. After as much as two and a half years of waiting for a PA, to suddenly want the process to slow down doesn’t make a lot of sense…but that’s a fact of life with the crumbling foundations program.

In many other cases, it’s because the PA sent by email went into spam. The homeowner spending 90 seconds in the spam folder usually retrieves it without difficulty.

What’s the moral of the story?

If you’ve been promised a PA within an approximate time span, and weeks or months have gone by where you haven’t received it, get curious as to why. Check your spam folder for an email from Michael Maglaras & Company (the Superintendent’s office)…but don’t just sit there and do nothing about it. Remember also that the Superintendent regularly pulls people out of line for funding when they are non-responsive to phone and email communications asking them why they are no longer interested in following through with their crumbling foundation claim.

There are many people in need, who are ready to clean out their garages; who are ready to make plans for alternative places to live; who are ready to have their homeowner’s equity restored. We are happy to move non-responsive claimants out of line and give their funding to people who are actually ready to receive it.

It’s Official…900 Families Served.

On March 29, we surpassed 900 Type 1 families served by the CFSIC program. With a family in Vernon, we have reached 903 families. This victory is cause for celebration for another reason…this family had a Severity Class coded 2 foundation, and we have been making great strides in getting to Severity Class 2 foundations as quickly as our funding would allow.

It’s always difficult to predict construction schedules, particularly with a program that is so weather-dependent. However, if the weather cooperates, we should see a total of 1,000 families served by this time next year.

Through the First Tier of Pending Claimants…

CFSIC is pleased to announce that, because of the excellent efforts and hard work of our ESIS ProClaim adjustment staff, we have successfully gotten through all of the Tier 1 Pending claimants.

What does this mean?

It means that the original group of Pending claimants, who applied on or after January 13, 2020…who were “pending” because we had no idea if our original June 30, 2022 sunset date was going to remain…have all had their claims opened by a professional adjuster and are being actively worked to make them eligible for the Participation Agreement line.

Anyone who has filed a claim with CFSIC on or after August 17, 2021 is a “Tier 2 Pending” claimant. That’s true if you applied originally on that date or, for example, yesterday. Everyone coming into the program on August 17, 2021 and after that is a Tier 2 Pending claimant.

The great news is that our adjustment staff is now into this group of claimants as well and is making great progress.

Remember something important: the date you apply is important; the date a claim adjuster actually physically opens your file for the first time is very important; the date on which you become an Active claimant puts you in front of the goal post; the date you go into the Participation Agreement line means that we will commit to your remediation as soon as funds are available for you…that’s the most important date of all.

Navigating Our Website…

Each week in the Superintendent’s office we receive many calls from potential claimants, and many of these calls are about basic program questions. Almost all of these questions can be answered by visiting CFSIC’s website at: https://crumblingfoundations.org/

We encourage first-time claimants, real estate agents, and potential home buyers to go to the website first…the majority of the answers you’re seeking are already there.

When you go to CFSIC’s website, the Home page is updated weekly and contains information aimed at keeping the public informed about the progress of the program.

Just above this “Latest News” section, you will see a navigation bar highlighting six sections beyond the Home page. These six sections can take you inside the site and give you many of the answers you need.

A critical component of the site is the “For Homeowners” section. It’s the most important section of the site. When you click the “For Homeowners” link in the navigation bar, you’re taken to the “For Homeowners” page, which contains 21 subsections.

For example, click on #8. What will open up is a page where you can get help completing an application, including a video that will walk you through the process.

Another example…real estate agents have their own subsection. Take a look at subsection #14. We receive many calls from real estate agents each month, many of whom have never been on our site and don’t know this subsection exists.

We encourage prospective claimants and those interested in the CFSIC program to take a close look at the navigation bar on CFSIC’s Home page and spend some time exploring the site. Investing 30 minutes of your time on this site can result in a potential foundation remediation claim that can benefit you by as much as $190,000. What’s the catch? You have to do the work and you have to look at the website. More than 2,000 victims of the crisis have gone up on this website and successfully applied.

The Tax Abatement Problem…

CFSIC will be joint venturing with our colleagues at the Capitol Region Council of Governments (“CRCOG”) and in partnership with municipal officers in the “top ten towns” to undertake a study of how CFSIC has helped to date with the serious tax abatement problem in those towns.

When CFSIC opened its doors on January 10, 2019, we had no knowledge of just how we could help with the tax abatement problem. We have a lot of knowledge now: for each one of the 896 families we’ve helped owns a home that has been returned to the tax rolls at an appropriate value.

CFSIC will not be sharing individual claimant data with either CRCOG or with the towns in question…we never share individual claimant information. But what we have at CFSIC is the largest collection of data on the crumbling foundations crisis in existence. No one has more data than we do, town by town, street by street, and zip code by zip code.  We’re pleased to enter into this partnership with CRCOG and with the municipal officials of the top ten towns where this crisis exists.

All this is by way of gearing up to make a strong case for the continuation of CFSIC’s bond allotment. We have to start now to make that case…for in 2025, under the current schedule, we get our last $25M. Beyond that, all we have is between $10.6M and $11M annually in Healthy Homes funding to continue our work, and even that sunsets in 2030.

We’ve always maintained that it will be data that will help convince our elected officials to continue CFSIC’s lifespan. It’s the data we’ve got at CFSIC, and in collaboration with CRCOG and the towns where this crisis has hit hardest, we will put that data to use.

When Victims Make Victims…

All of us need to treat the victims of the crumbling foundations crisis with compassion, understanding, and assistance. What we don’t need is more victims. You can be a victim of this crisis when you have the visible evidence of a foundation with pyrrhotite infection…but if you have a home with that problem and have made a claim with CFSIC, you can create a second victim when you’re not honest, transparent, and helpful when trying to sell that home before we can get to you with assistance.

The CFSIC claim transfer process was intended to help move buyers into line for assistance, where the playing field is level: the claim transfers in its entirety from a current claimant to a buyer, and that buyer assumes the original claimant’s place in line for assistance at the precise moment of transfer.

CFSIC’s claim transfer process mandates that if you want to transfer your claim, you must stay involved from the beginning to the end of that process. You cannot walk away from it. The claim can’t and won’t transfer to a buyer unless it is you (and not the buyer) who takes responsibility for the completion of the claim transfer agreement and provides it to us with a copy of the warranty deed. The transfer process also requires speed: if you don’t transfer your claim, for our purposes, within 30 days of the date of sale, the claim can never be transferred…in which event, you’ve made a false representation to a buyer, with all the legal implications that falsehood implies. CFSIC transfers many claims each month. When they transfer successfully, one of the reasons is that the claimant shows the buyer in advance of the sale all of the claim documentation in their files, so that the buyer can make an informed decision.

This implies that a claimant actually has a file. The truth is that many of our claimants don’t even have a copy of what they sent us; don’t know if they are Active, or Inactive, or Pending claimants; can’t find a copy of their visual inspection report. In short, these victims of the crisis can create more victims of the crisis. Buyers continually contact CFSIC asking for help in getting information about an existing claim. CFSIC’s position is clear: our confidentiality rules prohibit us from discussing anything to do with an existing claim except with the claimant. We literally turn buyers away with no information. I think we can all agree that when that happens, we’re just creating more victims.

How is this possible? It’s possible when you don’t keep adequate copies of what you sent us to begin with when you are our claimant. It’s possible when you are not informed about the status of your claim. We know it’s hard to imagine, when the reward is as much as $190,000 of benefit, but the number of claimants we have who don’t even know what their status is, is disconcerting. That information is readily available by looking at your email correspondence, or by simply phoning the hotline on our website, which connects you with ESIS ProClaim. Or by simply phoning the Superintendent’s office.

If you are a victim of this crisis and have made a claim with CFSIC, and you’re trying to sell your home before CFSIC can get to you, do your fellow citizens a favor: keep copies of everything you send us. Be straight up; be transparent; and make the claim transfer process happen for the benefit of you and for the benefit of your buyer.

Two Important Dates…And One Very Important Date…

There are three dates within the CFSIC system that you should know and you should keep track of if you are a claimant. Anyone working within the Superintendent’s office can give you these three important dates.

The Application Date:

That’s the date you applied. If you applied electronically, the system records the day on which you first applied, and this is true even if you go back subsequently and continue to upload data. (If you use the mail, your application date is the date on which your application is physically received by ESIS ProClaim.) The date you applied is forever recorded as part of your file. What’s important about this date is simply that you applied. Does that date put you in line for a Participation Agreement and the funding of your claim? It never has, and it never will. It’s just the date you first applied. That date gets you in line for eventual consideration by a claim adjuster, but that’s all it does.

The Date You Become “Active”:

Okay, this is the most commonly misunderstood date of all. You become an “Active” claimant when a member of the ESIS ProClaim adjustment staff physically opens your file for the first time, reviews that file in its entirety, and determines that your claim file is complete. (Until the file is opened for the first time, you remain a “Pending” claimant.) Once the adjuster is satisfied that all of your claim documentation is complete, true, and accurate, then and only then will your adjuster make you an Active claimant.

Your adjuster will then instruct you that you should now go out and get the minimum of two construction proposals from the list of approved contractors, and to get those proposals to your claim adjuster for review and approval.

Here’s where the delay can occur…and when it does, it is almost always for the same reason.

If you delay in getting contractor bids. If you change contractors…for whatever reason…you tie up the process of getting into the PA line. Many claimants confuse the “Active” date with the date you move into the PA line. They are not at all the same. If you move efficiently and quickly, there is no reason you can’t move equally efficiently and quickly into the PA line.

The Final and Most Important Date of All:

Okay, you went out and got your minimum of two bids. Your adjuster has reviewed and approved the allowable costs on both of those bids. You select a contractor, and you sign the contractor proposal. At that point, and only at that point, can you be moved into the PA line.

Your file moves on a specific day and at a specific time into the PA line.

If you are moved into the PA line, for example, today (February 19, 2024) your file is also time-stamped. The Superintendent’s office will not only know the day you went into line for funding, but, for example, that you were moved there at 9:52 AM. That means that there are people on either side of you. If another claimant has already moved into the PA line at 9:50 AM, we cannot get you a PA until we take care of that claimant first…the two minutes makes a difference. It’s the same thing for you…we must get to you before we get to a claimant that arrived in the PA line at 9:57 AM on the same day.

So, there are the three dates. Understanding this sequence and understanding their importance is vital to your understanding of how CFSIC works and how no one (and we mean no one, regardless of their circumstances) ever gets their funding except exactly when they should.

There is, of course, a fourth date, and that’s the date on which the Superintendent’s office emails you your PA, which has been pre-completed for your convenience and signals that your claim is ready to be funded.

On these pages we’ve emphasized again and again the importance of infrastructure. Nobody gets into the PA line artificially ahead of anyone else. No pressure can be brought upon the Superintendent to make exceptions any part of the system above for any reason whatsoever.

It’s one thing to secure state funding for the program…it’s another thing to keep that funding coming to the victims who need our help. The only way the money keeps coming is when we stick to the system that is clearly printed in our Underwriting and Claims Management Guidelines for all to see.

CFSIC Can Only Be Second in Line…

The single biggest reason that claimants who could be made Active remain Inactive is that they have delayed in making a claim for their crumbling foundation first with their commercial homeowner’s insurer.

Simply put, CFSIC cannot and will not make a claimant Active and eventually provide that claimant with a Participation Agreement unless that claimant has first been accepted or declined by their homeowner’s insurer for their crumbling foundation claim.

Many have written to us and asked us to waive this requirement. Their logic goes like this: “Why does CFSIC insist on this when the CT Supreme Court upheld the position that commercial insurers don’t have to honor these claims?”

The reason is simple.

By statute, CFSIC cannot be primary on a claim payment, it can only be secondary, and despite the Supreme Court’s ruling in 2020, homeowner insurers have actually honored some of these claims despite the CT Supreme Court’s ruling (yes, you read that right). In some instances, they have honored the claim in full, and in a handful of instances have made a partial claim payment, with CFSIC making up the remainder of the payment for allowable concrete expenses.

Besides, how can anyone expect the taxpayers of Connecticut to pay a claim if there is any chance that a commercial insurer that was paid a premium to provide coverage might actually honor the claim, so that taxpayer funds would not have to be spent?

Much has been written in these pages and in social media about the importance of obtaining a Severity Class coded visual inspection…about getting it sooner rather than later. We need more emphasis on another issue as well, however…and that is filing your crumbling foundation claim with your homeowner’s insurer sooner rather than later. Get to the point where you can become an Active claimant, and then to the point where you can get your Participation Agreement.

Above all, don’t ask CFSIC to bend the rules. The rules are in place to level the playing field for all the victims of the crisis.

New Delivery Ticket Program is Underway…

As we had announced previously, at 9:00 AM on February 2 the new concrete delivery ticket collection program began at CFSIC. It is applicable from that point…meaning, for any new remediation commencing on that date and subsequent.

For years we’ve heard from everyone about how important it is that “accountability” be mandated. When a new foundation is poured, where does it come from? What are its weights and measures? What is the water content? When was it batched? How long did it take between the time it was loaded onto the truck and the time it was delivered? And, most importantly…who created the concrete product to begin with?

With the residential concrete poured by J.J. Mottes, no records exist. It’s important to tell the truth and to state it plainly: accountability could not be enforced where records did not exist.

Records will exist now.

Since the demise of J.J. Mottes as a business, computerized records of concrete batching exist for all concrete placements, whether commercial or residential. No general contractor will accept a load without a delivery ticket on a commercial job. Why would we settle for less for a residential concrete placement? The delivery ticket is created in both cases.

CFSIC has no control over new construction. We are an insurance company, and, in order for us to exercise control, you have to be our claimant. But what CFSIC can do is to refuse to pay a contractor that does not provide us with the physical evidence of a delivery ticket for each and every concrete placement for each and every foundation we remediate.

These records will be made a permanent part of our claimant files. They will be maintained on the Cloud and in backup forms in perpetuity.

Remember: CFSIC is statutorily exempt from FOIA. These concrete delivery tickets will not be available to the public…and particularly to anyone who would like to get a hold of them for any reason other than the enforcement of good foundation remediation.

If five years, or seven years, or fifteen years from now a residential concrete placement that CFSIC paid for has a failing foundation, showing the usual visible manifestations of pyrrhotite infection, CFSIC will release, if requested as part of the forensic investigation process, any information that will assist in getting to the bottom of why it happened…starting with the delivery ticket.

For those who might say that this accomplishes nothing…remember that no weights, measures, water content information, or timing delays between batching and delivery onsite exist for the Mottes placements. It’s one of the reasons why (although not the only reason) that a former Attorney General felt that he could not proceed legally against the sources of the failed concrete that the taxpayers of CT are now paying for.

For those whose mantra has been the word “accountability”…the day of accountability has come.

Infrastructure Is the Key to Success…

We’ve been asked several times to identify the key to CFSIC’s success to date. Our answer is always the same…it’s “infrastructure.”

It’s all the activity that happens behind the scenes: receiving applications and supporting data, underwriting, claims adjustment, the management of CFSIC’s financial resources, and in general the structure of CFSIC as a captive insurance company.

We’ve made some people unhappy by rigid adherence to objective rules. The Superintendent is asked each week to consider exceptions to our Underwriting and Claims Management Guidelines. Each week he refuses to make those exceptions. What’s important is that the victims of the crumbling foundations crisis be treated with respect and understanding, and just as importantly that they all be treated equally all the time. Nobody gets into the PA line artificially ahead of anyone else. Nobody actually gets their PA ahead of when they should, regardless of how much pressure is placed on the Superintendent and the staff.

Playing by the rules at all times means what it has meant to date, which is five clean independent auditor reports, which in turn means the confidence of state government, which translates into the continuing flow of funds into CFSIC. The day exceptions get made is the day we lose the confidence of state government and results in a day when the funds stop flowing.

We encourage any state with a crumbling foundations problem to remember that the only way state money gets into a crumbling foundations remediation program is when a credible infrastructure is established, and when an assurance can be given to state government that a fair and objective infrastructure is in place to make certain that claimants are prioritized correctly but objectively.

From time to time, the Superintendent is asked by an elected official if “something can be done” for one of their constituents awaiting funding. The Superintendent’s answer is always the same: “Everything that can be done is being done, and according to fair, objective, and strict guidelines.”

Correcting the Record: The CRCOG Gap Funding Program…

A reminder to all: CFSIC does NOT administer the new HUD crumbling foundations gap assistance program.

It is administered by the Capitol Region Council of Governments (“CRCOG”).

CFSIC is here to support CRCOG with access to claimant information, but we do not administer the program in any way. We’ve read on social media how people have had difficulty reaching CFSIC to ask questions about the CRCOG program. We at CFSIC always return phone calls; but if you’re calling CFSIC about the CRCOG program…don’t. Our colleagues at CRCOG are doing a great job with this program. Learn more about this new and helpful program that will result in fewer victims of this crisis.

Announcing: New Delivery Ticket Program…

Effective February 2, 2024, CFSIC will be putting in place an important change to its Underwriting and Claims Management Guidelines.

On and subsequent to that date, CFSIC will require written evidence of the weights and measures, as well as other vital concrete batch data, for all residential concrete used in any foundation remediation paid for by CFSIC.

This will be applicable to both Type 1 and Type 2 claimants for any construction commencing on or after that date. (With respect to Type 2 claimants, this would mean that the actual work done to remediate the foundation would have to commence on or subsequent to that date.)

What does this mean?

It means that concrete batch delivery tickets must be produced and provided to CFSIC, where they will be maintained as part of the claimant’s file from February 2 forward, in perpetuity. (Specifically, with one contractor involved in the CFSIC program, this evidence will take the form of a concrete mix design certification supplemented by test cylinders taken at the site. Test cylinders are not in any way to be confused with core samples.)

Why are we doing this?

Since as early as 2016, the victims of this crisis have been concerned that there was no accountability for the source of the concrete and the materials used in residential foundation concrete placements, and as a result insufficient evidence existed for the source of the crisis by way of clear written documentation.

Beginning on February 2, 2024, that evidence will now be a permanent part of the record.

Aggregate testing is now law in Connecticut, as we all know…but CFSIC will now also require that contractors retain and pass along to CFSIC concrete material weights, measures, water content, space of time between the creation of the concrete batch and its delivery onsite, and other concrete design parameters.

This information will be retained as part of CFSIC’s claim file. It will be maintained in multiple locations, including the Cloud. It will be a part of the claimant’s confidential record. If at some point in the future any residential concrete placement that CFSIC pays for fails, the beginning of the forensic process as to why the failure occurred will be found within CFSIC’s files.

Is CFSIC abandoning its position that it will only pay claims based on a visual examinations?

Absolutely not. CFSIC’s Underwriting and Claims Management Guidelines require and will continue to require that the only basis on which CFSIC will pay a claim is a recorded visual examination documented by photographic and measurement evidence. CFSIC’s Board of Directors continues to believe that no effective insurance company claims management system can pay claims objectively and consistently based on core testing.

However, this new program will provide future generations with a way to track what happened and where concrete came from in the event of any future individual foundation failure.

With this new change to CFSIC’s guidelines, we move closer and closer to realizing our goal…which is eventually to put CFSIC out of business.

Announcing the First Injection of Federal Funds Into the Crumbling Foundations Effort…

CFSIC is delighted to announce that the Capitol Region Council of Governments (“CRCOG”) has been awarded $2 million by the U.S. Department of Housing and Urban Development. These funds have enabled CRCOG to create the Crumbling Foundations Remediation and Restoration Program, which will enable CFSIC-eligible claimants who qualify as low or moderate income claimants under HUD guidelines to potentially receive as much as $32,000 of additional funding towards costs not otherwise covered under CFSIC remediations.

CRCOG will be working in collaboration with the Northeastern Connecticut Council of Governments (“NECCOG”) as well as CFSIC to make sure that these funds get to those claimants who need them.

To learn more about CRCOG’s new program, go here: https://crcog.org/gap-foundation-funding/

This program is being administered by CRCOG and not by CFSIC….the public, including existing or potential CFSIC claimants, should direct requests for information or assistance directly to CRCOG.

This is an important day for all of us who have worked hard to assist the victims of this crisis. CFSIC extends its thanks to Representative Joe Courtney and his great team for making this happen and for their continued advocacy on behalf of the victims of the crumbling foundations natural disaster.

Contractor Alert…

We are advising contractors to consult with their lawyers and to take a close look at their existing construction contracts to determine if they are adequately protected in the event that a CFSIC claimant (homeowner) applying for a Type 1 claim becomes ineligible to participate in the program.

If a claimant is determined to be ineligible for the program, CFSIC cannot pay a contractor. If we’ve already paid a deposit for work to be performed, and ineligibility is determined, we will require a refund of the deposit. If we are in the middle of making progress payments, and ineligibility is determined, we will stop paying.

All contractors should revisit their construction contracts, preferably with the advice of counsel, and consider adding language effective immediately, making it clear that you will look to the homeowner for payment for the work you are doing or have done if CFSIC deems that the homeowner is or becomes ineligible to participate in the CFSIC program.

What are some things that can cause ineligibility?

– The homeowner lies on the original CFSIC application (which is also a felony punishable by criminal prosecution).

– The homeowner does not abide or intend to abide by the terms of the Participation Agreement.

– The homeowner does not abide or intend to abide by the terms of the Residency Addendum.

– The homeowner does not comply with CFSIC’s published Underwriting and Claims Management Guidelines as they appear on this site.

Let’s be clear…do we have a widespread problem? Of course not. Let’s also be clear…people have been trying to take advantage of the CFSIC program from its very inception on January 10, 2019. We have already criminally prosecuted one deliberate attempt to cheat the taxpayers of CT. We have already refused payment to a contractor because of a claimant’s non-compliance with residency, and we will not hesitate to do it again.

We urge contractors to understand that the vast majority of claimants not only do the right thing all the time, but they intend to do it from the get-go. However, taking the time to make sure contractually that the homeowner claimant affirms, in your contract for construction, their intention to remain at all times fully eligible for CFSIC’s assistance, is just good business.

Funding Received…

We’re pleased to report that our $25M funding allotment from the CT Bond Commission was posted to CFSIC’s account on Friday.

We thank Commissioner Mosquera-Bruno of the CT DOH for her advocacy and assistance.

If you’ve been in touch with the Superintendent’s office at any point in the last few months and been given an approximate date for the receipt of your PA…the countdown to that date has begun.

What To Do When You Get Your PA…

The most important thing to remember when you finally get your Participation Agreement is to actually read the transmittal email.

The PA will be attached to an email from the Superintendent’s office (Michael Maglaras & Company). It will NOT come from ESIS.

Read the email transmittal…and we mean every word…because, after waiting as long as you’ve waited, the last thing you want to have happen is to have your funding tied up because you simply didn’t read what we sent you.

Approximately 40% of the victims of this crisis receive their PA and don’t read the transmittal instructions. As a result, they send inadequate information back to the Superintendent’s office. This delays the processing of their PA and delays their funding…sometimes for weeks.

Here’s what the transmittal requires: you must return, with all pages of your signed and witnessed PA, (i) the original signed contract for construction with the contractor you chose, and (ii) the contractor’s worksheet showing the calculations the contractor made for your remediation according to CFSIC’s allowable costs.

That’s three things coming back to us: the signed and witnessed PA, the original signed contract with the contractor, and the contractor’s worksheet. It couldn’t be clearer, yet 40% don’t get it right.

Let’s be clear about the construction contract.

Your ESIS claim adjuster approved the allowable costs contained in a foundation remediation contract that you agreed to. Your contractor signed it. You signed it. This is the document that details what CFSIC will pay for. You should have it in your possession.

Take the time to read the transmittal. If you don’t understand the transmittal, call the Superintendent’s office. Do not call your claim adjuster at ESIS for assistance. Why? Because the reason we request a copy of the contract all over again, as well as the contractor’s worksheet all over again, is because claimants change their contracts after they have originally been signed and don’t tell us. When this happens, the process grinds to a halt.

That’s right…even though your claim adjuster at ESIS has a copy of your original signed contract and the calculation worksheet, we require you to send it to us all over again as if we never had it. This is to assure that we are dispensing funds according to the contract you originally signed.

If you are in doubt that what you have in your files is the correct documentation, call your contractor. They can’t get paid unless the Superintendent countersigns your PA…so they have a deep interest in helping you.

What are the biggest mistakes claimants make with their PA?

– They return just the signature page of the PA….it’s not enough. We need the whole document.

– They return the contract where the signing date is the date they return it to us. (The number of claimants who don’t actually have, in their possession, a valid copy of the original final contract signed by them as well as the contractor is staggering.)

– They don’t return the contractor’s worksheet at all.

The biggest problem of all is simply a failure to read the transmittal sending the PA to begin with. Not only are these requirements clearly spelled out in the transmittal, but they are in red type. You simply can’t miss them. (Unless, of course, you skim over the transmittal to being with.)

Lastly, remember something important: we do not accept personal visits to the Superintendent’s office to hand-deliver PAs at any time. It is a security issue. The transmittal makes it clear in no uncertain terms that PAs may not be hand-delivered. The hand-delivery of a PA permanently removes your claim from the system, and your claim will not be paid.

The rules are clear. The rules are easy to follow. You just have to read what we send you.

Release of CFSIC’s Annual Audited Financial…

CFSIC’s audited financial for the financial period ending June 30, 2023 can be found here (PDF).

The audit was conducted by Crowe LLP, an independent public audit firm retained by CFSIC’s Board of Directors and reporting directly to CFSIC’s independent, volunteer board. The audit noted no deficiencies in claims handling, in the processing of claim disbursements, or in adherence to the provisions of the single state audit provided to OPM.

As a 501(c)(3) tax-exempt organization, CFSIC posts its audited financial for public consideration.

Infographics Are Up…

The infographics detailing the status of the program (with data effective as of October 20, 2023) have been added to this website’s Useful Links page. Please remember that the data changes daily in this program and that these statistics are valid for purposes of this report effective only October 20, 2023.

Don’t Have Your Claim Voided…

If you are a Type 1 claimant, read this message very carefully.

CFSIC has to maintain some hard and fast rules in order to assure the careful use of taxpayer funds.

One of these hard and fast rules is that the construction work on your foundation cannot begin until you have received a countersigned Type 1 Participation Agreement from the Superintendent’s office.

Do not permit a contractor to convince you to start work ahead of schedule and ahead of your PA being countersigned by the Superintendent just because it’s convenient for him. If any work at all begins (and we mean any), and you as a claimant are not in possession of a countersigned PA, the Superintendent will void your claim and remove you permanently from further consideration in the program.

It’s very important that you do not listen to any story told to you by anyone to the contrary.

CFSIC’s hard and fast rules are designed to enforce uniformity of approach to the payment of all claims and to make certain that taxpayer funds are disbursed correctly at all times. The fastest way to get your claim voided is to be convinced to start work in advance of receiving a countersigned PA just because a contractor is “doing work in your neighborhood.”

Do not fall victim to the temptation of starting your foundation remediation before the Superintendent has countersigned your PA. We will find out about it, and we will remove you from the program.

Announcing CFSIC’s Annual Report …

CFSIC’s 2023 Annual Report can be found in the Useful Links section.

As soon as it is available, CFSIC’s fifth annual audited financial will also be posted. The audit must first be approved by CFSIC’s Board of Directors.

Announcing the CFSIC Re-certification Program for 2023…

CFSIC will hold its annual visual inspection re-certification program on two dates: December 12 and December 14, 2023.

The re-certification program is mandatory in order for all currently certified CT-licensed home inspectors to continue their CFSIC certification. It is optional for CT-licensed professional engineers. (We’re pleased to report that because of the high quality of the course work a number of engineers voluntarily elect to be certified.)

On these two dates we will also offer the opportunity for eligible home inspectors to be certified for the first time.

The course work is demanding and includes cutting edge scientific information about the causes, effects, and identification of pyrrhotite-infected concrete failure. It is the only such certification program on this subject available in North America.

Anyone seeking information or wishing to register for one of the two available dates can do so by contacting us at: info@crumblingfoundations.org

Bond Commission Funding Approved…

We are pleased to report that, at the October 6 CT Bond Commission meeting, CFSIC’s fiscal year 2023-2024 bond allocation of $25M was approved.

On behalf of CFSIC’s board and management, we express our thanks to Governor Lamont and the members of the Commission for their continued confidence in our operations.

We want to be very clear about something, however: this money has not yet been received.

If you have over the past few weeks or months been in touch with the Superintendent’s office concerning the scheduling of your Participation Agreement, the estimated number of weeks before you get your agreement provided to you does not start from last Friday.

It doesn’t start from today either. It can only start from the date on which we announce on this website that the funds have actually been received in CFSIC’s accounts.

A Reminder About Type 2 Claims…

We think it’s important to remind the public about an important fact related to Type 2 claims. (To be clear, we’re not talking about Severity Class code 2 claims…we’re talking about foundation remediation reimbursements, which has been part of the program since inception.)

The Board of CFSIC has authorized a total of 125 reimbursement claims to be paid over the lifetime of the program. That’s it. When the 125^th claimant has been reimbursed for a foundation remediated under the guidelines of the CFSIC program, the category of Type 2 claimant will go away and not return.

Today CFSIC has paid for 98 Type 2 reimbursements. CFSIC has in total received 118 Type 2 applications. When we do the math, we can see what the issue is.

We’ve learned of an unfortunate practice among some contractors. We have heard verifiable reports of some contractors who do not have much remediation business encouraging claimants with financial resources to opt out of Type 1 claim status and to re-apply as a Type 2 claimant.

Don’t do it.

What happens if you do that, and we’ve already paid #125? Two things will happen. You will have replaced your foundation and no longer have the option to be a Type 1 claimant…said simply, you are no longer eligible for CFSIC funding. On top of it, you’re pretty unhappy with the contractor who advised you to move out of line for a Type 1 remediation, pay for your foundation replacement yourself, and take your chances with a Type 2 claim.

The only way the CFSIC program works is through integrity and truth.

Awaiting Further Funding…

As we await approval and receipt of CT Bond Commission funding for $25 million, we want everyone to know that we are actively at work each day committing the $11.1M we have gratefully received from Healthy Homes surcharge funds.

Over the last two weeks we have received more than 100 phone calls from claimants in line for their Participation Agreements. Some of these victims of the crisis have been in line since August and September of 2022, and we’ve walked them through how the system works with date and time stamping, and how for a number of them they are only 4 to 8 weeks away from getting their PAs. All of this is good news.

If the Bond Commission meets in September, which we hope it does, and secondly if CFSIC is on the agenda, that will mean probable receipt of $25M by the end of October or early November. That will be later than usual for sure…but what’s really important is to keep momentum going. Receipt of those funds in late October or early November will mean that for some folks remediation will begin in April or May of June of 2024, which gives them time to plan for the personal upheaval involved and for contractors to schedule their work.

In a perfect world, the funds we get keep us open through the remainder of our fiscal year ’24 (June 30, 2024)…so that, in fact, what happens is that we don’t have to stop issuing PAs as we have done in the past.

We are inching towards 800 families served and will be making a major announcement on that soon.

Helpful Hints: When You Get Your PA…

Here are some helpful hints if you are now in line to get a Participation Agreement over the next several weeks:

– First…your PA will not come to you from your claim adjuster at ESIS ProClaim. It will come from “Michael Maglaras & Company,” which is the Superintendent’s office. (There is a point at which your claim gets transferred directly to the Superintendent’s office from your claim adjuster. That point is when you are moved into line for a PA. Once your PA is fully executed, your claim moves back into the control of your claim adjuster at ESIS.)

– Your PA will come to you by email and will be an attachment to an email transmittal. READ THE EMAIL TRANSMITTAL FROM TOP TO BOTTOM. (More than 50% of claimants do not do this. They send back incomplete information, and their funding is delayed.) Follow the instructions carefully. For example, if you don’t know what a “contractor’s worksheet” is (or you don’t have it in your files) call your contractor…not the Superintendent’s office and not your claim adjuster.

– We will have filled in the numbers from your final construction contract in the PA. Check those numbers and read your PA carefully. Then sign the PA and find someone who is 18 years of age or older to witness your signature. (This can be anyone…spouse, child, neighbor, etc.)

– Return everything required back to the Superintendent’s office by email as a scanned attachment; or by fax at 860-487-0005; or by US Mail.

The email transmittal makes it clear that you cannot personally deliver your PA to the Superintendent’s office. Any attempt to personally deliver a PA to the Superintendent’s office will result in the rejection of your claim and your immediate removal from the program. (This is because of security concerns and because of personal threats and intimidation that occasionally arise as a result of this program.)

The PA process is the end of the journey. You have gone from applying, to having your claim being opened for the first time, to becoming an Active claimant, to getting into the PA line, and finally to getting your project funded…don’t let anything get in the way of getting your remediation done…including failing to take ten minutes out of your life to read and follow the instructions.  

Healthy Homes Funds Received…

We’re pleased to report that our Healthy Homes funds arrived over the weekend, and we are now moving quickly to issue Participation Agreements to the next group of claimants in the PA line.

It’s also important to reflect on what this means.

The Healthy Homes allotment, which this year is just over $11 million, represents a $12 per insurance policy surcharge added to everybody’s homeowner’s premium in Connecticut.

What does this mean? It means that this is a state-wide effort of “people helping people”…and these funds represent the aid being given to the hard-hit Northeast Corner from thousands of citizens who do not have crumbling foundations and never will.

Some Helpful Hints…

From time to time, we publish something in this space designed to make the application process easier and more productive for the victims of the crumbling foundations crisis. What follows are some helpful hints:

– Keep a copy of everything: You’d be surprised by the number of claimants who can’t find copies of what they’ve sent us. It’s worth your time to keep a copy of everything contained in your application as well as all supporting documentation. If there are questions about any of the material you sent us, it will make the conversation easier with your claim adjuster if you have a copy of all documentation you submitted as part of your claim.

– What’s a claim adjuster? Although this may seem obvious, the actual term “claim adjuster” confuses many claimants. If you’ve been contacted by someone at ESIS (CFSIC’s outsourced claim manager) then you’ve been assigned a “claim adjuster.” Simply put, your claim is being reviewed, adjusted, and eventually put in line for a Participation Agreement.

– Your place in the PA line: When your claim is moved into the Participation Agreement line, it is done on a specific date. In fact, not only is the date specific, but there is also a time-stamp. If your claim was moved into the PA line, for example, at 10:27 AM on a specific date, and another claimant was moved there at 10:26 AM, we cannot get to your PA until we get to the person ahead of you. This is the way the system has worked since January 10, 2019.

– What’s the biggest surprise? With many of our claimants, the biggest surprise is the amount of time it takes to move into the PA line to await funding. What’s the biggest cause of a delay in getting into the PA line? It’s the amount of time it takes for you to obtain and submit to your claim adjuster the minimum of two contractor bids. Some claimants are made Active and then it takes them six to nine months (and sometimes longer) to get those bids and submit them to their claim adjuster. You cannot get moved into the PA line without an ESIS claim professional approving your contractor bids, and without one of those approved bids (proposals) then being chosen by you, signed both by you and your chosen contractor, and provided to your claim adjuster. The single biggest cause of a delay in being placed in the PA line is not CFSIC’s flow of funds…it is the delay by claimants in getting the job done.

A critical component of CFSIC’s success is the cooperation of claimants. Help us to help you. There is a wealth of information on this website. Invest 30 minutes of your time on this site…the reward can be as much as $190,000, which is a pretty good return on investment.

Tier 1 Progress…

This past week we made it through all original Severity Class 3, Tier 1 Pending claimants. It’s a major milestone. Every one of these Tier 1 Pendings has had their claim file opened and addressed by a claim adjuster. We’re now moving on to more than 100 Severity Class 2, Tier 1 Pendings. We’re making progress in addressing Pending claimants.

Addition to Public Use Building Foundations Report…

At the request of some concerned citizens, CFSIC’s concrete science consultant has undertaken an assessment of the Howell Cheney Technical High School foundation in Manchester. This visual examination was undertaken on June 27. The report can be found here. (PDF)

This report was approved by the Superintendent based on the request of concerned citizens, and because, after the assessment of 100 public use building foundations, some of the budget for the original project had not been spent and was thus available to accommodate this additional assessment. The conclusions are contained in the report. In short, no CFSIC Severity Class code could be assigned. There was no map cracking, efflorescence, or staining associated with pyrrhotite infection. The remaining structure, with the exception of the surface noted in the photograph, was free of any impairment. The professional conclusion was that de-icing materials may be responsible in this case. The foundation is otherwise sound and is not a candidate for replacement. (CFSIC only remediates residential foundations.) The consultant indicated that a petrographic analysis might be beneficial for other reasons.

By way of reminder, CFSIC does not set claim reserves, adjust claims, or pay claims based solely on testing. No data whatsoever is available that can be used by CFSIC predictably that indicates when or even if a foundation will fail, and it is a well-known fact that there are many homes in the affected area that are built alongside homes with severely impaired foundations and which may never show the effects of pyrrhotite damage because of differences in topography and available moisture.

CFSIC is pleased to have contributed to the knowledge base of this building’s foundation.

Learning Point: ASR versus Pyrrhotite…

In the late fall, CFSIC will undertake its annual first-time certification and required re-certification courses for licensed home inspectors certified by CFSIC to provide visual examination reports for use in our claim adjustment process.

It’s important to point out that four CT-licensed professional engineers, who are otherwise not required to take the course in order to provide us with visual examination results, have voluntarily elected to do so because of the quality of the course work provided. The certification courses are provided free of charge as part of our outreach to serve the victims of this crisis. In the concrete fabrication industry worldwide, the CFSIC certification course is recognized as the gold standard for the training of professionals in the visual evaluation of pyrrhotite-infected foundations.

The course work is complex and demanding.

During the course work, a good deal of time is spent learning how to differentiate between Alkali-Silica Reactivity (ASR) and Internal Sulfate Reaction (ISR)…which is, of course, what pyrrhotite infection is all about.

To the untrained eye, ASR can resemble ISR in a foundation, and as a result many foundations with some of the manifestations of impairment can be mistakenly thought to be associated with pyrrhotite.

With ASR, alkali sulfates in the concrete react with siliceous aggregates with the presence of water, forming a gel that can expand and cause concrete to crack. With ISR, aggregates with oxidizable iron sulfides form sulfates when exposed to water and oxygen. Additional ettringite and a consequent breakdown of the Calcium-Silicate Hydrate cause expansion and, of course, the associated map cracking.

Those taking the CFSIC certification course go through an intensive study of the differences between ASR and ISR, and the way that the two processes differ visually and chemically. With almost 2,200 claims containing visual inspection data differentiating these two types of foundation impairment, getting it right is our highest training priority.

CFSIC will continue to depend on its knowledge base and its certification course curriculum in order to adjust and pay foundation claims.

Why You Should Apply…

Many people have asked us “why should I bother to apply if you won’t get to me for two or three years?”

The simple answer is that eventually we will get to you. It is always better to be registered with us than not to be registered with us. By way of reminder, anyone applying today, for example, will be classified as a Pending Tier 2 claimant. We’ve got to get through the Tier 1s first. On top of that, we’ve got to get through the Tier 2s who applied before anyone applying today.

But that should not stop you.

If you believe that you have a crumbling foundation…and, better yet, if that belief is supported by the evidence revealed through a professional visual examination…then you owe it to yourself and your family to take the time to let us know who you are and where you are.

Another Step Forward…

This past week Substitute House Bill 6798 passed the CT House and was accepted by consent by the CT Senate.

We at CFSIC want to thank Reps. Brown (56^th District), Foster (57^th District), Delnicki (14^th District), Luxenberg (12^th District), and Vail (52^nd District). Their support was tireless and enormously helpful.

On the Senate side, we single out Senators Saud Anwar and Jeff Gordon, who stepped up to the plate when we needed them to be strong advocates for this measure as it entered the Senate chamber.

Of course, Rep. Jeff Currey did his usual incredible job in making sure this bill saw the light of day.

The Superintendent also wants to thank a small group of claimant victims who helped us advocate for this bill and who proved themselves at all times to be open-minded and objective, and having no other agenda except the goal of fewer victims. From Day One the Superintendent has sought collaboration with the victims of this crisis, and he is glad to have the ability to speak with claimants who share his goal of a collaborative effort to end this crisis.

The Superintendent personally worked closely with the CT Construction Industries Association to arrive at a good compromise on the language of this bill.

This bill is “Step 1” in assuring that aggregate used in residential concrete placements is suitably tested regardless of its source…that’s right, it’s more than just testing quarries. We thank our elected Reps and Senators from both sides of the aisles for their incredibly collaborative effort. We thank the activist claimants who advised the Superintendent and brought real-life experience to this effort. We thank our lobbyist, who worked tirelessly with both sides to come to a good conclusion.

With this successful House Bill 6798 we get one step closer to putting CFSIC out of business, which is the Superintendent’s goal. The next step will be new underwriting guideline measures we’ll be adopting to ensure the accountability of the paper trail for the concrete product itself. More on that when we announce it in July.

Our Next Round of Funding…

A reminder to all that the Superintendent is currently not issuing new Participation Agreements until our next round of funding is received.

It has been CFSIC’s policy from inception that we would make no commitments to claimants to remediate foundations unless we had available cash to meet every obligation we have made.

We’re hopeful that we will receive Healthy Homes funds by the end of June and that, secondly, we will receive CT Bond Commission funding by the end of July…but those timeframes are never certain and are subject to many variables.

Once we re-open for PAs, it will be a seven-day-a-week effort to get PAs executed and the next round of funding fully committed.

Home Inspection vs. Foundation Inspection…

Your choice to purchase a home without a home inspection is just that: it’s your choice.

But if you purchase a home and haven’t obtained a foundation inspection valid for CFSIC claim purposes before you purchase that home…either because you failed to order one before you purchased or because the existing owner didn’t give you one that they already had in their possession…the only option left for you is to be in possession of a core test before the date of purchase if you want to be eligible to file a claim with CFSIC either now or in the future.

We at CFSIC have been observing a dangerous trend. That trend is the use of the terms “home inspection” and “foundation inspection” as if they are interchangeable.

They’re not.

The use of the term “home inspection” to mean “foundation inspection” is a big problem. Many have started to use those two phrases interchangeably, including on social media. They are not the same thing.

“Waiving a home inspection” is a personal choice. “Waiving a foundation inspection” performed by a CT-licensed professional engineer or a CFSIC-certified home inspector means that you have only one other option open to you if you want to file a claim with CFSIC now or even a decade from now: that option is a core test performed prior to purchase.

All over Connecticut each and every day, licensed home inspectors provide general home inspections as part of the home purchase and sale process. Only a handful of CT-licensed home inspectors are certified by CFSIC.

When we at CFSIC receive calls from victims after we have told them that they are ineligible to be claimants, their response is often the same: “But I’ve got a home inspection.” They’ve read somewhere that a home inspection is what they needed. It’s deeply unfortunate, because the use of the wrong terminology has made them a victim all over again.

If you get a general home inspection that contains a second part to that inspection report, performed by a CFSIC-certified home inspector who has presented a complete evaluation and severity class coding of your foundation, inclusive of valid photographic evidence, then you have what you need.

It’s also important to remember that some of the larger home inspection firms with multiple inspectors employed may only have one or two inspectors within that firm who are CFSIC-certified.

CFSIC’s independent board of directors has asked that we continue to hammer home this important point: a “home inspection” is not the same thing as a “foundation inspection.” Let’s get it right, and let’s stop creating victims all over again.

Update on Our Funding…

As most of our readers know, we have suspended, temporarily, the issuance of Participation Agreements until our next round of funding is received.

As a reminder, our funding comes from two sources. The first is the Healthy Homes surcharge. Traditionally, CFSIC has received those funds in late June or early July. Our second source of funding comes from the CT Bond Commission. We have, thus far, been fortunate in getting our annual funding allotment from the Commission before the end of August each year.

As these two funding installments are received, starting with the Healthy Homes funds, we immediately re-open the Participation Agreement line, with staff working seven days a week to get PAs in front of claimants for their signature.

Also as a reminder…when funds are received, we always go back to the exact date and time in the PA line on which we stopped issuing PAs, and we start with the specific claimant who was the last in line when we stopped.

Our internal audit processes require that we follow this procedure. No one gets moved into line ahead of anyone else; no one’s PA gets issued ahead of when it should. As claimants are moved into line for PAs, those claimants’ names get moved into the PA line with a precise date and even more precise time stamp. The system has always worked this way.

Meanwhile, we are busy with construction, busy with new applicants, and busy with the management of CFSIC’s day to day operations. We are also busy working with legislators and interested parties in tightening legislation to protect the public.

Update on South Windsor…

Last week the Superintendent called a very temporary halt to CFSIC’s activities in South Windsor. This suspension was lifted within 48 hours thanks to the great intervention of Michael Maniscalco, the Town Manager in South Windsor. The issue was a simple one: someone got confused about the difference between what is required by CFSIC in order to make a claim Active and what is required by the Town of South Windsor to validate a request for the waiver of a building permit fee.

The matter was quickly resolved. It’s “all systems go” in the town of South Windsor.

Taking Responsibility…

If you are a current Active, Inactive, or Pending CFSIC claimant, and you are in the process of trying to sell your home, we remind you to take responsibility for the transfer of your claim. You’re the only one who can do it.

Simply put, if you have represented to a buyer of your home that you’re a CFSIC claimant (Active, Inactive, or Pending…it makes no difference), and you don’t personally take charge of completing the claim transfer process within a maximum of 30 days of the date of sale, you put yourself in serious financial and legal jeopardy.

CFSIC cannot and will not speak with a buyer about your claim. We won’t speak or deal with the real estate agent. We’ll deal with you: the claimant. You must see that the Claim Transfer Agreement form is completed. The specimen Claim Transfer Agreement can be found here (PDF).

You have to supervise the process (which in reality is a very simple process). You have to stick around and make sure the claim transfer happens.

If you’ve applied to CFSIC, it’s because you are a victim of this crisis. You owe it to yourself, and you owe it to the buyer of your home, to see the claim transfer through to completion.

The Superintendent’s office gets too many calls from potential buyers indicating that the existing homeowner claimant will not provide them with any information and asking for our help. It’s completely unacceptable.

The crumbling foundations crisis affects all of us who deal with it: sellers, buyers…everyone. One of the ways in which we lick this crisis is cooperation between those who know they have a registered claim and those who are buying a home to assume someone’s place in line.

Too many times claimants have sold and walked away from providing any further help to the buyer who knows the seller is a claimant. That buyer is then forced to apply from scratch as a result.

The Board of CFSIC and the Superintendent say “enough is enough.” Cooperate with the transfer. Take responsibility for it. Step up to the plate and do what’s right.

Reminder…Suspending PAs

We remind everyone that the Superintendent’s office is not issuing any new Participation Agreements until our next round of funding is received, starting with our next tranche of Healthy Homes funding, which we expect most probably by the end of June or first week of July.

Of course, work continues each day on foundation remediations, including condos and PUDs…remediation throughout the affected area is in full swing.

The Superintendent’s office will also be redoubling its efforts to reach out to real estate agents and brokers about how they can assist in guiding the public to CFSIC’s website and to other sources of information about the program and how it works.

Lastly, we’re pleased to report that most remediations are coming in on average well below the $190,000 cap on allowable costs, which means that competition among contractors is making the process not only affordable for claimants but is helping to control costs so that CFSIC can reach the broadest number of claimants.

Understanding Why Condos Are Different…

With one notable exception within the affected area, it is the condominium association itself (representing all condominium owners) that in fact owns the foundation on which condominium units rest.

What that means simply, in the context of CFSIC’s underwriting guidelines, is that we remediate foundations. We accept applications only from folks who own foundations. That’s why we don’t accept applications from individual condominium unit owners.

We continue to get many inquiries from condo unit owners about how they can apply. We answer all of these inquiries by referring those owners back to their associations.

We also want to state what we’ve stated before about the remediation process. It’s not easy with condos. The association’s board has to meet. They’re in charge of reviewing and considering construction proposals. They may meet several times on these proposals over many months. Those meetings involve minuted action by a board of directors. Then there is the issue of financing and going through the process of searching for collective financing assistance that involves multiple-year commitments for any given condo association.

For an individual homeowner, the decision is radically different than it is for a condo association. For an individual homeowner, no board of directors needs to meet.

We applaud and we recognize those condo associations that have gotten their act together and kept momentum going.  Those condo associations now have multiple active lifts happening throughout their property. Those condo associations that spent a lot of time at the beginning of this process challenging the merits of the process, rather than getting the job done, have not moved as quickly to restore equity and safety.

We continue to forge ahead with condo remediations for all those associations who want to work with us, follow the guidelines, and make it happen.

Helpful Hints for Active Claimants…

Once your CFSIC claim moves into “Active” status, it’s important to remind everyone just how important that status is.

When you become an Active claimant, you are one step away from being put in line for a Participation Agreement. That’s one step away from your eventual foundation remediation.

It is always surprising to us at CFSIC that some claimants, once their claim has been made Active, don’t follow through with the remainder of the process in a timely manner or even at all.

What’s the process?

Getting a minimum of two construction proposals from CRCOG-approved contractors in front of your designated ESIS ProClaim claim adjuster.

After taking the time and trouble to apply, after waiting for months as a Pending claimant, it doesn’t make any sense to drop the ball when you become an Active claimant and just stop working on your own behalf.

The Superintendent has removed Active claimants from eligibility because of non-responsiveness…multiple attempts to reach a claimant by email or phone, and even by letter.

Remember…getting into the Participation Agreement line is the goal. You can’t get there when you are an Active claimant without following the rules. We encourage all Active claimants to stay on top of their claim so we can help them.

Helpful Hints for Pending Claimants…

Anyone applying to the CFSIC program today, for example, will be a Tier 2 Pending claimant. Learn more about what Tier 1 and Tier 2 Pending claimants are.

CFSIC’s position from Day One is that we want you to apply. Applying to the CFSIC program enables you to register your concern about your foundation and to provide us with information about the status of that foundation.

Remember, we can’t make your claim Active until one of our claim adjustment staff members has an opportunity to actually open your claim file and begin to work it. Until that happens, when you apply you get a claim number, but you are still a significant ways away from having your claim opened, adjusted, and managed.

Lastly, we know that claimants are very eager to speak with contractors…to find out what the remediation process entails and to generally get up to speed with all parts of the remediation process. But we remind everyone that the only time you should be seeking proposals for foundation remediation services from CRCOG-approved contractors is when your designated claim adjuster makes your claim Active and requests that you seek a minimum of two contractor proposals. Once you claim is Active, the pieces of the remediation puzzle fall quickly into place, including the review of prospective contractor proposals.

The CFSIC system does not require you to have proposals in hand when you apply. Remember that point…it can save you a great deal of time and trouble.

More Milestones to Report…

Working as a team, CFSIC continues to reach important milestones in our effort to assist the victims of the crumbling foundations crisis:

–  So far, the busiest month for project completions was October 2022. In that month alone, 33 families were placed back into safe and secure homes.

– We currently have 517 Pending Type 1 and Type 2 claimants…we’re getting to these folks as fast as we can.

– It seemed like a long time to get to Severity Class 2 claimants…but to date we have helped 33 of these victims for a total in completed construction of $5,110,341…that’s an average of $154,859 in allowable costs per remediation…which is exactly our average to date for the entire program.

– The Superintendent, as of this morning, has countersigned Participation Agreements covering 1,033 claims. We will hit 1,100 claims covered by PAs by the 4^th of July.

– As of Monday morning, our inception to date general and administrative expenses shown as a percentage of our calendar year revenue received is 3.7%…which means that 6.3% of those revenues can be returned to the claim fund for those in need.

– As of this morning, total paid claims to date are $110,522,291.

Another Milestone…

The CFSIC program reached another milestone this past week…we hit the “1,000” mark for claims covered by issued and countersigned Participation Agreements.

The exact number is 1,030 as of this morning.

By way of reminder, once a claim is covered by a Participation Agreement countersigned by the Superintendent, then two important things happen: the first is that the contractor in question receives a deposit, so that remediation can begin as quickly as it can be scheduled; the second thing that happens is that funds are then permanently allocated to the satisfaction of that remediation.

1,030 claims covered by fully-executed Participation Agreements is, we think, a major milestone in CFSIC’s progress. To be clear, in many of these cases remediation work won’t begin until 2024 due to contractor and claimant scheduling issues; but if you are a victim of this crisis, having in your hand a fully-executed PA means that for you and your family this crisis is almost over.

Let’s Start in the Basement…

A reminder to everyone of the great article Kevin Miller did in his seven-part series on the subject of the crumbling foundations crisis.

This article entitled “Let’s Start in the Basement” can be found here.

Not only is this article and its contents useful to claimants and potential claimants, but it’s very useful to real estate agents as well.

Kevin goes into some detail about critical aspects of the forensic process of foundation evaluation. In the section entitled “Finished Basements, What Is Behind that Wall?” he gives a good perspective on the troublesome issue of the visual inspection process and finished walls. He also makes a valid point about starting the whole visual inspection process with an exterior examination…particularly those areas that lend themselves to exposure to the oxidation of sulfidic aggregates.

In general, he addresses the challenges inherent in the visual inspection process and of course supports the use of a CFSIC-certified inspection process.

We recommend the reading of this article by anyone deeply interested in the crumbling foundations crisis.

700 Families and Counting……

This past Friday we reached the magic number 700.

That’s 700 families…700 victims of the crumbling foundations crisis…who have been helped by CFSIC.

Our 700^th claimant lives right in the epicenter of the crisis and began his journey with us in 2019. For all our Pending claimants, the message should be clear: “Stick with the program…it may take a while…but we will get to you.”

Applying to CFSIC: Some Helpful Reminders…

Let us repeat the obvious: we want victims to apply to the CFSIC program. We encourage people to apply for claim assistance and to do it when they are ready.

From time to time, we think it’s important to remind the public of some helpful hints that will make the application process easier and result in a faster turnaround of your application when your turn comes at last.

– It is not necessary to have all your points of evidence in order to apply. CFSIC will register an application that is incomplete. (Remember: you can never be made “Active” without a complete application including all required attachments.)

– Keep a copy of everything you send us. This sounds obvious. But the number of claimants who can’t put their hands on anything they sent to CFSIC is remarkable. Not keeping copies of what you send will slow down your approval process.

– Remember: the fact that you get back a claim number from our electronic claim system does not mean that you are in line for remediation. It only means that, at the point you get a claim number assigned to you by email, you are registered in our system.

– Lastly, you do not need to have a minimum of two construction proposals when you apply. It is a waste of time. What is important is to apply with as complete an application and points of evidence as you can make ready. A construction proposal that you get today won’t even be valid two years from now when we finally get to your claim file.

CFSIC gets scores of emails every month asking the most basic questions from claimants. This website, and particularly the “For Homeowners” section, will get you started with an understanding of the program.

Spotlight on Somers

Let’s consider Somers…the town of Somers is currently in the top ten paid claim towns within our data base. Here are some important facts and figures for those interested in the known extent of the crumbling foundations crisis in this town:

– CFSIC has had 58 registered claimants since its inception on January 10, 2019.

– Of this number, 29 are currently either Tier 1 or Tier 2 Pending claimants.

– CFSIC has recorded 47 Type 1 claimants where severity class codings have been independently verified…31 of these are Severity Class 3.

– CFSIC has paid $2,202,038 in foundation remediation and reimbursement claims to date.

– Currently, CFSIC carries on its books outstanding claim liabilities for known claimants of $1,918,454. (None of the 29 Pendings are yet accounted for in these carried and booked liabilities.)

– CFSIC has completed 13 foundations in Somers for a total value of $2,080,216. This results in an average replacement value for allowable costs of $160,017, which is approximately $29,000 below CFSIC’s current cap of $190,000 and approximately $15,000 below CFSIC’s original cap of $175,000…proving again that CFSIC’s cap not only works but applies in the broadest way to victims in the entire affected area.

Pending Claimant Update…

As of Friday, January 20, we have 539 existing Pending claimants registered in CFSIC’s system.

Our goal is eventually to open and work the claim files for all these 539 claimants. The ESIS ProClaim staff has made great progress in working through Tier 1 Pendings…and as of last Friday, 238 Tier 1 Pending claimants have had their files opened and approved into Active status. This is a major milestone and represents an intensive effort on the part of our great claims adjustment staff.

All this has been done while the staff continue to deal with all other day-to-day activity, including the management of construction underway.

The public owes a debt of thanks to the diligent work done by these outstanding claim adjustment professionals.

Enforcing Contractor Compliance …

We want to be clear…so many of the contractors participating in the CFSIC program not only do good construction work but also keep up with a tremendous amount of paperwork connected with the remediation process.

Effective today, the Superintendent has directed that two measures be put in place to assure contractor compliance with the administrative side of this process.

First, once a Participation Agreement has been countersigned by the Superintendent, and the ESIS staff have notified the applicable contractor to invoice for the initial construction deposit, that contractor will have 30 days to provide that invoice to ESIS for payment. If that’s not done within that time frame, the Superintendent will personally call the claimant in question and request that the claimant obtain another proposal.

Secondly, frequently a construction proposal provided by a contractor selected by a claimant as part of a bid process requires modification because it is inaccurate or because changes to the original scope of work have occurred. Beginning today, contractors will have 30 days from notification by an ESIS staff member that a proposal modification is required to make that modification and get the revisions back to ESIS, or the Superintendent will personally notify the claimant that they must seek another proposal, as that contractor will be ineligible to receive CFSIC funds for that claim.

Why are we insisting on these new administrative measures?

We’re doing it because what will stop our funding from state government in a New York minute will be sloppy administration and lack of discipline in our business operations.

We encourage claimants to ask their contractors the question… “Have you invoiced CFSIC yet for the deposit?” Or, if applicable, “Have you gotten back to ESIS yet with changes to your proposal?”

The CFSIC program only works if contractors hold up their end administratively, without exception. The last thing CFSIC needs is for its annual financial audit to disclose any part of its business operation that isn’t run like clockwork.

View these two new “30-Day Rules” within the “For Contractors” section.

Welcome to Senator Gordon…

It is with pleasure that we announce that Senate Republican Leader Kevin C. Kelly has appointed newly-elected Senator Jeffrey Gordon to the board of CFSIC in the capacity of an ex officio director. We’ll be taking steps to bring him on board shortly. All of us at CFSIC look forward to working closely with Senator Gordon.

Updating the Crumbling Concrete Foundations Caucus…

On January 3, the Superintendent made a presentation updating the bipartisan Crumbling Concrete Foundations Caucus on the public buildings report published on this site on December 22. He took a number of questions from Caucus leadership and presented, in summary form, the key findings and conclusions of the 400-page report.

The Superintendent was accompanied Kevin Miller, who provided the visual inspections undertaken in conjunction with the report.

In 2023, CFSIC will be more fully engaged in a close collaboration with legislators on ways to modify Public Act No. 21-120 to incorporate some suggested changes to the Act that will go a long way towards ending the crumbling foundations crisis in residential construction. Simply put, much can be done to incorporate some of the best features of quality control now in place for commercial building concrete placements into the residential foundations placement process. What’s the goal? Put CFSIC out of business, as quickly as that can be accomplished, by greatly reducing the future likelihood of poor-quality concrete entering the construction pipeline.

Some Facts and Figures…

– The Superintendent has countersigned Participation Agreements for 886 claimants to date; of these signed Participation Agreements, 661 foundations have been completed under the Type 1 category.

– CFSIC carries outstanding reserves for known claimants of $61,598,977, of which $904,194 are being held for known Type 2 claimants.

– Of the Participation Agreements signed, total paid claims to date are $105,030,029.

– Within our current existing base of 546 Pending claimants (inclusive of Tier 1 and Tier 2), 334 have recognized Severity Class coded visual inspections thus far.

– As of December 7, CFSIC has 2,095 applications registered in our system since January 10, 2019; we have 219 Inactive claimants (who could make their claims Active very quickly). We’ll be taking steps in the coming year to remove Inactive claimants from our system who have been Inactive for some cases for almost a year to make way for new Active claimants in need.

Pushing Ahead with Pendings…

As those of you who follow this page closely know, we have two tiers of Pending claimant.

Tier 1 Pendings are those claimants who applied on January 13, 2020 and subsequent but not after August 16, 2021. Our Tier 2 Pending claimants have applied after that latter date. We have 632 Pending claimants registered as of Friday, December 2.

We’re pushing ahead as quickly as we can with opening Pending claim files. Right now, we are still working on Tier 1 Pendings, but have actively worked these files through those Tier 1s who applied up through June 30, 2020.

Why is it taking so long, some have asked?

Remember, each file can contain more than 100 pages of documentation. A claim adjuster must open that file, read through it, see what’s there, and see what’s missing. The adjuster then has to contact the claimant for a variety of reasons. Believe it or not, sometimes emails and phone calls aren’t returned. It takes a while…but we’ve managed to get through more than 200 Pendings in six months and have made many of them Active.

We’re going to continue to press ahead.

We also want to make something clear about Pending claimants…the public should not make the assumption that everyone who applies has a severity class coding in hand and has uploaded a visual inspection report containing that severity class coding. It’s simply not true.

Many Pending claimants apply with incomplete uploads and don’t provide us a number of pieces of evidence at the time they apply. Remember that we don’t know that fact until we open the file for the first time and then have to send them back to the drawing board. On the other hand, we open files that are perfectly submitted, and are literally at that moment eligible to be made Active. We never know what we’re going to find until we get there. So, if anyone out there is trying to do some math to attempt a wild guess as to the number of Severity Class 1 foundations we have and making assumptions about how all Pendings must be severity class coded (otherwise, why would they bother to apply), think again. The math won’t add up unless you understand the realities of how the application process works. A partial application is possible at CFSIC, but not necessarily advisable. The number of incomplete applications we receive is greater than the public might think.

It’s important not to make the assumption that each time a new application comes in, it’s perfect in all respects. It usually isn’t…and to open each file and work it takes time…all while we are also working with currently Active claimants, approving new Participation Agreements, managing the construction disbursement process, and running an insurance company under the supervision of the CT Insurance Department.

Lastly, severity class coding issues aside, a continuing problem is applications that could otherwise be made Active immediately but which don’t have a written declination letter from the claimant’s homeowner’s insurer.  The thing that can tie up a claimant for a long time in our process is the absence of the declination letter. Also, the public should not make the assumption that all claims are denied by commercial homeowner insurers. They are not. In some cases, partial settlements are provided, and, yes, those are provided without the need to resort to litigation.

We urge claimants to take the time to apply with all points of evidence in hand. It not only makes for a smoother process, but it enables you to get the assistance you need as quickly as we can deliver it.

Release of CFSIC’s Annual Audited Financial…

CFSIC’s audited financial for the financial period ending June 30, 2022 can be found here (PDF).

The audit was conducted by Crowe LLP, an independent public audit firm retained by CFSIC’s Board of Directors and reporting directly to CFSIC’s independent, volunteer board. The audit noted no deficiencies in claims handling, in the processing of claim disbursements, or in adherence to the provisions of the single state audit provided to OPM.

As a 501(c)(3) tax-exempt organization, CFSIC posts its audited financial for public consideration.

The Need for Testing…

Before November 10, we’ll be releasing to the public a report conducted of 100 public buildings throughout the affected Northeast Corner. We started with buildings owned by the public for a couple of reasons: first…schools, libraries, municipal buildings, are all, by definition, owned by tax-exempts. (Municipalities are federal tax-exempts.) CFSIC is a federal tax-exempt. It seemed sensible for us to prioritize the use of tax-exempt dollars to assist tax-exempts first and foremost. We thought that the best use of limited available funds was to begin there. The report will reveal that that’s where we stopped, and for several good reasons.

The report will also reveal something important about the nature of testing and pyrrhotite.

Our report will emphasize again the differences between a commercial concrete pour and a residential pour. Simply put…two construction standards prevail, and they shouldn’t. Our report will underscore the need for the enactment of a law requiring the testing of residential concrete before it is poured.

This is not only about testing for pyrrhotite, but also for tensile strength, water content, and other important factors.

To be clear…testing it on the construction site is not what we mean; it has to be tested before it even gets there.

Now to the hard truth about testing for pyrrhotite. There is absolutely no data that we are aware of at CFSIC or that has been brought to our attention from any source that clearly indicates at what level of pyrrhotite in the aggregate (what amount) a failure of the concrete is reasonably certain. There is no data that connects pyrrhotite with a guaranteed failure at better than 50% of the time. There is no data that clearly points to when a foundation will fail, or even if it will fail at all, just because of the existence of pyrrhotite. No one has supplied us with this information, and to the best of our knowledge, no scientifically verifiable data exists that can be used by CFSIC’s actuaries to predict rates of failure and therefore future claim payments in advance of the visual confirmation of a Severity Class 2 or 3.

Imagine if we had this data…imagine if a core test revealed that, at a given amount of pyrrhotite in the aggregate, your foundation would fail within three to five years at a better than 50% chance? What would CFSIC do? We would move Pending claimants with such tests into Active status faster. We don’t, and we can’t, because the evidence simply doesn’t exist yet. When it becomes available, we will embrace it and build it into our claims payment system and the system of statutory reserving on our books.

Your foundation can be tested for the existence of pyrrhotite, and you can have it in your foundation’s concrete…and you can go forever without any of the manifestations of pyrrhotite infection. No peeling, no cracking, no efflorescence…nothing. Or, alternatively, you can test positive for it today and next year be a Severity Class code 3. Those are the facts, and we can verify this.

Right now, it is clear to us that testing for pyrrhotite proves nothing, except the existence of pyrrhotite. We also note the absence of any usable data that can help homeowners proactively avoid pyrrhotite-associated failure. Foundations do not fail, when they do fail, solely because of the existence of pyrrhotite…they fail because of environmental conditions that cause pyrrhotite to react and do its damage. The exact same way that a personal testing of your genome sequence may indicate susceptibility to cancer…but you may be cancer-free for your entire life.

However, does CFSIC advocate a law requiring pre-testing of material prior to a residential pour? Absolutely we do. Why take chances? Why spend more taxpayer dollars needlessly when we can avoid this issue even without statistical information as noted above through careful planning?

Here’s the parallel: you may test positive early on in your life for the “cancer gene,” but you may be able to avoid cancer through all the healthy living habits we know about. You may test positive for the existence of pyrrhotite and may never have a crumbling foundation at all if you take some necessary steps to avoid the conditions that trigger the reactive problem. But why wouldn’t we take advantage of the science we need to through force of law? Testing before the pour is the answer. As long as we recognize that we are years away from the ability to analyze the statistics as to the precise amount of pyrrhotite that will, better than 50% of the time, result in an eventual reaction.

We’ve Re-opened for New Participation Agreements…

CFSIC has received the first new CT Bond Commission allotment of $25 million. We will be re-opening the Participation Agreement line this morning…but beginning with those claimants in that line who have been there since October 2021. By way of reminder, when we get new funding…we must always pick up with exactly where we last stopped.

600 Foundations…

With a claimant in Ellington, CFSIC achieved 600 remediations this past week. It’s an important milestone. To read the complete press release, visit the link below:

https://www.prweb.com/releases/2022/9/prweb18897923.htm

Get in Line…

A reminder to everyone who is a victim of the crumbling foundations crisis, or who think they might be victim…you should apply to CFSIC.

Applying to CFSIC is easy to do online. This website is the place to do it.

There is a significant amount of bad information out there about the CFSIC application process. CFSIC has NEVER required you to have all points of evidence uploaded when you apply.

CFSIC permits an application to be completed without points of evidence or with just a few of those points. The moment you hit the “submit” button, the email address you provided in your application will receive a claim number, enabling you to upload missing documentation at a later time.

Now to be absolutely clear…you can never be made “Active” and never get into the Participation Agreement line with an incomplete application. That’s how our system works. But you can apply with an incomplete application…and isn’t it better to be registered with CFSIC than not to be? CFSIC is the single largest repository of information about this crisis. Our data is the best data out there on where the crisis exists and is apt to exist in the future. All the guessing about where this crisis exists, all the conjecture about why the crisis exists, has its answer in CFSIC’s data. More than 2,100 claims registered. The truth about this crisis, regardless of what state it exists in, has from Day One been inside the data we have collected. The way that data continues to grow and be useful as we combat the crumbling concrete natural disaster is for those who have verified, visually-inspected foundations to apply.

Don’t put it off. Knowledge is power. The more we know…the more we can help.

Announcing: 2023 Home Inspector Training Schedule

CFSIC will conduct two home inspector certification courses to be conducted in person on November 10 and November 17, 2022.

If you are a currently licensed CT home inspector with a minimum of three years of active experience, seeking first-time CFSIC certification, you can enroll on either day. If you are an existing CFSIC-certified home inspector, you must also choose one of the two dates above in order to continue to stay certified within the CFSIC program. (If you do not choose one of these two dates, your certification with CFSIC will be revoked at 5:00 PM, 30 days after November 17, 2022.) Course work will be the same for both new home inspectors and for those seeking re-certification. Each session will be subject to a maximum of 27 attendees.

No walk-ins will be permitted; pre-registration is required.

A location within central Connecticut will be announced shortly.

Further details regarding registration, including links, to be available shortly on this website.

$25M Approved…

At the July 29 Connecticut Bond Commission hearing, Governor Lamont and his fellow Commissioners approved the first $25M of additional revenue bond proceeds for CFSIC.

All of us at CFSIC are grateful to Governor Lamont and his team for this advocacy.

We ask everyone to note the use of the word “approved” which is not the same word as “received.” We expect to actually receive these funds at some point in August, and, when we do, we will place a notice here on Latest News.

In keeping with our position from Day One…the Superintendent will not sign a Participation Agreement for the remediation of a foundation unless the cash is in the bank.

Why the Cap Works…

First, there are a number of people out there who believe that the cap is something different than $190,000. It isn’t. It’s clearly posted on CFSIC’s website. (Let’s be clear…many people are just not familiar with our website.)

The original cap on remediation/reimbursement assistance was $175,000 ($70,000 for condos). We increased it recently for all the right reasons: cost of labor, cost of materials, inflation, etc. A cap makes sense.

CFSIC was under heavy criticism from Day One, particularly on social media, for instituting a cap, but no one came up with a better idea. An idea floated early on was to use a means test. In other words, to disburse claim funds based on a claimant’s ability to afford the difference between what CFSIC would pay and what it wouldn’t. The Superintendent reminded everyone that a means test of any kind requires verification. What’s the best source of verification of your means?

Your federal tax return.

When the Superintendent mentioned that, the means test idea died, and I think we can guess why.

The disbursement of funds by CFSIC is based on two criteria: the linear and square foot measurements of the foundation (including special allowance for slab-on-grade construction) multiplied by the maximum permissible linear/square foot factors permitted under the program. Those factors are published. They are known to every contractor participating.

It’s that first step that’s important.

That calculation, though, is then further limited by the $190,000 cap ($76,000 for condos). That’s how the playing field gets leveled.

The smallest remediation that CFSIC has done is 900 square feet. The largest is 5,800 square feet. (That claimant, by the way, spent a lot of time trying to convince the Superintendent to give him an exception to the cap “because of the size of my house.” The Superintendent rightly refused.)

The cap levels the playing field and treats everyone equally. The linear/square foot factors objectively value the claim…the cap is the reason we are able to spread limited claim funds in a fair and equitable way.

Again, the paper trail of criticism is clear. When CFSIC opened its doors, we were told “no foundations would be fixed if there is a cap.” We’ve proven that to be wrong as we push quickly now towards 600 families helped. One of the reasons we were voted another $100 million last summer is because the cap works, and it treats people fairly.

We believe that the means test would have failed and that few remediations would have been done.

But to be clear, CFSIC’s board is continually looking for ways to improve every part of our process. If you’ve got a legitimate and constructive way to improve anything we do (legitimate and also thoughtful and prudent) you can always suggest how we can do better by writing to: info@crumblingfoundations.org

The Most Common Errors…

The electronic application process on this website has been designed to enable claimants to efficiently apply to the CFSIC program.

We think it’s important to re-emphasize a few key points…particularly since anyone applying on or after August 17, 2021 is a Tier 2 Pending claimant. Make no mistake: CFSIC wants you to apply, and it’s very important that we know who you are and where your impacted foundation is.

If you are thinking about applying, here’s a list of the most common mistakes. Don’t make any of these mistakes, and the process will go much more smoothly for you:

#1: Keep a copy of everything you upload as part of your application…including the application itself. More than 30% of our applicants actually don’t keep a copy of anything they send us. It’s a mistake not to do it. Keep a folder with what you send us so you can refer to it later.

#2: You do not need all points of evidence in order to apply to the program. (If you’ve got all the points of evidence that are specified in the application when you apply, then that’s great, but it is not necessary in order to apply on a first-time basis and at least begin the application process.) The application process permits you, once your preliminary application is filed, to upload anything else after the fact. Anyone applying to the program automatically receives a claim number. Print that email out and hang onto it.

#3: We can’t emphasize enough the importance of filing your crumbling foundation claim with your current homeowner’s insurer BEFORE you file with CFSIC. If there is any chance that your homeowner’s insurer will pay all or part of your remediation, it will not only be better for you, but if you are a Pending claimant it will be faster. CFSIC cannot make your claim Active if you’ve not submitted the claim to your homeowner’s insurer first and have EITHER a claim acceptance letter or a claim denial letter from that insurer, which then, either way, becomes part of your CFSIC claim file. (And, yes, contrary to the rumor mill, a number of claims have been paid in whole or in part by commercial insurers.) CFSIC will never be primary (pay before) a commercial insurer’s acceptance or rejection…it’s the way our system has worked from Day One. You paid a premium to a homeowner’s insurer: you have to ask them first if they will pay your crumbling foundation claim. That’s how insurance works.

#4: For purposes of filing a Pending claim, don’t waste your time getting construction proposals. CFSIC’s claim adjustment staff won’t even look at them. You don’t need them yet. In fact, if you file today as a Pending claimant, you are two-and-a-half to three years away from the beginning of your remediation anyway…and no construction proposal issued today would be valid after that passage of time. The staff at ESIS ProClaim will ask you in writing to obtain the minimum of two contractor proposals when your claim moves to Active. Okay…to be clear: if you want to get proposals while you are a Pending claimant to determine how much might potentially be coming out of your pocket, that’s okay to do; but it has nothing to do with the process of your CFSIC claim until a claim adjuster starts to work your file, and you are officially made an Active claimant.

#5: PAY ATTENTION TO APPENDIX 1 OF THE APPLICATION: There is an appendix (Appendix 1) to the application, which appears before the signature line on the electronic application (and directly after the signature page of the PDF version). Many claimants never bother to read it. There is not a single more important document in the application process for a Type 1 or a Type 2 claim. It is in the appendix where clear rules are specified about the original date of the purchase of your home and why that date is vitally important to your claim.

Observing these points and paying attention to them can go a long way towards making the application process easier and more efficient.

The Importance of Rules…

It is our adherence to the written and published Underwriting and Claims Management Guidelines of CFSIC that make CFSIC a success.

CFSIC’s guidelines are subject to review and approval by the Connecticut Insurance Department. These guidelines are a part of CFSIC’s Plan of Operation. The aim of the guidelines is to be as fair and equitable as we can possibly and humanly make them.

The guidelines exist to spread limited and unpredictable funding (from a scheduling perspective) among as many victims as possible. We would not have been voted another $100 million last year if several times a month we had granted “exceptions” to the rules. What the CFSIC program needs and requires is objective administration and stability. It doesn’t need chaos.

The Superintendent has dealt with more than 75 requests for “an exception to the rules” since the inception of the program and has granted a few of them when they have been reasonable and based on a specific set of unique facts. These have been few and far between. When you run an insurance company with limited funding, it’s sticking to the guidelines, as they are written, that will make the difference between success and failure…between a vote of confidence from state government and the opposite.

CFSIC’s website is publicly presented. It’s available for all to read. Our complete Underwriting and Claims Management Guidelines are on this site. They have been since we opened our doors.

If you are moving from another state and buying a property in Connecticut, particularly in the Northeast Corner, and you have not made yourself aware of this crisis, that is hardly the fault of Connecticut taxpayers.  If the seller of a property has conveniently forgotten to even mention that the crisis exists… that is also not the fault of the taxpayers of Connecticut. If the required mandated “Concrete Advisory and Disclosure for Sellers and Buyers” was not presented at the time of sale (whether you used a realtor or you did not), clearly the Connecticut taxpayers have nothing to do with that failure.

And, lastly, if the Concrete Advisory and Disclosure was completed and available to you, and you paid no attention to it, or its existence didn’t even suggest to you that you should probe further…and you didn’t connect the dots…it’s not the fault of the taxpayers of Connecticut.

In short, CFSIC only succeeds if it sticks to the rules.

The mandated Concrete Advisory and Disclosure for Sellers and Buyers is designed to alert people to the existence of the crisis in our state. If it isn’t used, then it’s not effective, and it doesn’t educate the public as a result.

The more information we have about this crisis, the better off everyone is. The mandated Concrete Advisory and Disclosure is designed to force-function complete transparency and to educate potential home buyers about a crisis that they may otherwise have been unaware of.

It’s also not the fault of the taxpayers in Danbury, or Westport, or Norwich…all cities and towns where this is not a crisis…and, despite that fact, taxpayers in those towns too have still entrusted us with their money. These unaffected towns and their representatives who voted us $100 million demand adherence to the rules, and they have a right to expect it.

The rules are there. They’ve been voted on unanimously by a volunteer board of directors who have no axe to grind in any direction except fairness and consistency. CFSIC has undergone three clean audits at both the statutory and the state levels. We got through those audits with the grade we got because what we do, we do consistently.

The rules are there to protect everyone: the victims of this crisis as well as the taxpayers who have ponied up funds from towns where the crisis will never exist.

An Important Reminder About Type 2 Claims…

Last week we announced that the CFSIC quota on paid Type 2 claims had been increased from 100 to 125. This is an important change in the program.

It’s very important to remind all existing and potential Type 2 claimants that if you decide to be a Type 2 claimant (reimbursement claimant), and the construction (remediation) of your foundation occurred or is occurring on or after January 10, 2019, then you will not be reimbursed if you do not use a CRCOG-vetted contractor (a contractor found on CRCOG’s website). This rule is hard and fast. You cannot do it yourself. You can’t do parts of if yourself. You can’t use your favorite remodeling contractor. You have to use a contractor shown on CRCOG’s website.

Increase on Cap for Type 2 Claims…

At a recent meeting of the volunteer Board of Directors of CFSIC, the Board unanimously approved a recommendation by the Superintendent that the cap on the number of paid Type 2 claims be raised from 100 to 125.

This change will take effect 15 days from today on July 21.

To be clear, CFSIC has paid 88 Type 2 claims (reimbursement claims, not to be confused with Severity Class 2 claims) for a total of $8,794,566 in disbursements to victims since the inception of the program…so we are still under the cap of 100 that was originally set at the inception of the program on January 10, 2019. Of course, in the months leading up to the launch of CFSIC, there was a lot of social media discussion about how 100 paid Type 2 claims would “never be enough”…of course the history is different: 100 paid claims as a maximum has proven to date to be over-adequate.

Having said this, we at CFSIC believe that we must leave room for more folks who may dip into their savings or retirement accounts to do their own foundations (always under our strict guidelines and with an approved contractor) in order to place themselves in line for reimbursement assistance. We think adding another 25 families to this limit may encourage some victims to apply and to take advantage of this program, which is designed, at the end of the day, to help as many victims of the crisis as we can.

Healthy Homes Funding Received…

Today CFSIC received $12.4 million from the Healthy Homes Fund though the auspices of the CT Department of Housing.

We thank Commissioner Mosquera-Bruno for her continued support and advocacy on behalf of the victims of the crumbling foundations crisis.

As a result of these funds being received in our account, CFSIC is re-opening its doors effective today for the process of issuing new Participation Agreements. To be clear, we have to go back to those who have been in the PA line since July of 2021, which is where we left off in that line when we last went into suspension, and start there first. Fair is fair, and CFSIC is committed to fairness.

Once we get through that remaining group of claimants, we will immediately continue the process until those funds are committed to victims.

If CFSIC is fortunate enough to get its $25 million installment from the CT Bond Commission at its July 29 meeting, then we will have the momentum we need to keep the PA line moving well into the month of May of 2023.

Some of the next projects in the PA line are in fact more condos…we’ve done 78 units to date.

We will be moving rapidly now to 600 families assisted.

Pending Claimant Update…

CFSIC continues to move as rapidly as we can with our Tier 1 Pending claimants to bring them into Active status and from there into the Participation Agreement line.

By way of reminder, anyone who applied to CFSIC for the first time on or after January 13, 2020 but before August 17, 2021 is categorized as a Tier 1 Pending claimant. Anyone applying on or after August 17, 2021 is a Tier 2 Pending claimant.

To be absolutely clear, we’re not going to get to Tier 2 Pending claimants for some time to come.

With respect to Tier 1 Pendings, CFSIC staff began to open these claim files for the first time on January 5, 2022. Since then, we have moved 164 of these victims into Active status, and many of them are now in the PA line awaiting the funding of their claims.

All of these claimants are Severity Class coded 3. We’re speaking of thousands of pages of claim documentation supporting the claims of these victims.

In fact, with our next round of funding, we will actually get to a number of these claimants and at least two years ahead of schedule. CFSIC continues to work diligently to bring the victims of this crisis the assistance they need as rapidly as our flow of funds allows.

A Reminder: Participation Agreements…

As a reminder, CFSIC is currently in suspension for the issuance of new Participation Agreements. The Participation Agreement signed by a claimant and, in each case, countersigned by the Superintendent is the only way that CFSIC claim funds get committed to a foundation project.

We’ve had a lot of phone traffic recently, where claimants have not only called but then written to us expressing their disappointment that their projects have not been funded, and claiming that they don’t understand, because “after all, I’m an Active claimant.”

With CFSIC’s guidelines, the funding of your claim is never based on the date you applied. It is never the date on which you became Active. It’s not even the date when you make it into the Participation Agreement line (because you’ve gotten your minimum of two approved contractor bids)…it’s the date on which your PA is countersigned by the Superintendent.

This all bears repeating: we have claimants in line for Participation Agreements right now, but no funds to give them…and we won’t have funds until the next round of funding. Being in the PA line means that your application is dated and time-stamped for funds once they are available. With any luck, we will be getting as much as $36 million this summer in new claim funding.

Until then, every PA in the PA line is on hold. Not only that, but when we do get our funding, we will go backwards into the PA line to July of 2021, which is where we stopped the last time we ran out of funds. We will start with those claimants first.

Of all the processes within CFSIC, the process that is most misunderstood is the Participation Agreement process. Once you get your PA, you complete it, sign it, and return it to the Superintendent’s office, everything can move quickly and efficiently.

We look forward to re-opening our doors for new PAs on the very day the money arrives.

Crossing an Important Threshold…

With 2,002 recorded claimants in our system as of last Friday…we’ve crossed an important threshold of service, with more than 2,000 families accounted for in our system.

At an average of 125 pages per confidential claim file, that’s 250,000 pieces of data on this crisis, its extent, and its cure.

CFSIC wants to acknowledge all of the service providers who have made this possible, starting with our colleagues and friends at ESIS ProClaim and continuing with our collaborators at Crowe LLP, Milliman, Marsh, KE Miller LLC, Rogin Nassau and Paul Frank + Collins, Tami Burke & Associates, and MRW Connected.

These are the people working behind the scenes to make sure that the application system is responsive and that the claims process is as seamless as our funding sources permit. What they do doesn’t make the papers or the evening news. What they do (fortunately) doesn’t show up on Facebook…it doesn’t show up, because what they do, they do quietly and behind the scenes, which is the way business should be conducted. The success speaks for itself.

There are not 35,000 crumbling foundations in the Northeast Corner of CT. There aren’t 30,000 or 20,000. We now know that, and our data absolutely supports it.

The crumbling foundations natural disaster is a human disaster…make no mistake…the lives of families have been turned upside down. The news we should all celebrate is only the good news…there are fewer affected families than we thought.

We’re anticipating $188 million of funding between now and June 30, 2030. As of Friday, CFSIC’s operating expense ratio to annual booked revenues is 3.7%. We’re allowed as much as 10%. That’s 6.3% turned back into the business of replacing foundations.

In Connecticut, we know how to fix this crisis, and we’ve demonstrated that. Connecticut is an international model for putting government resources and private insurance company management expertise at the service of people. The message CFSIC sends to other parts of the world where this crisis exists should be obvious.

Next week, CFSIC’s independent auditors will begin the financial and operational audit of CFSIC’s operations. Those results will be published (as have the last three audits) on this website at some point in October.

It’s 1983 and 1983 Only…

We at CFSIC want to put a rumor to rest now. This rumor has no basis in fact.

The rumor flying about is that there is a “top end” to the date range for “year built” (the year an affected home was constructed) in order to qualify for CFSIC claim consideration, either now or in the future. The rumor suggests that there is a date range for CFSIC claim eligibility for these homes, and that the range is between 1983 and 2015 (or 2016, depending on who is spreading the rumor).

It’s not true, and it never has been.

Here are the facts: it is true that the bottom end of the date range is 1983 (that year is set by statute); however, there is no top end date to the range. CFSIC’s claim eligibility process can literally apply to a house completed yesterday.

Here’s the evidence.

First, see what is in bold below:

“proof that the building or addition in question was originally constructed during calendar year 1983 or subsequent”

The above, in bold, is from CFSIC’s claim application as well as our Underwriting and Claims Management Guidelines, which are published on our website. It is one of the required points of evidence in order to file a claim to begin with. Notice the words “or subsequent.” It doesn’t say 1983 to 2016, for example. This means that there is no top end date to the range for claim eligibility.

There is no artificial top end to the date range established by CFSIC just because some people believe that 2015 or possibly 2016 are the years that Mottes stopped pouring…nothing in CFSIC’s published guidelines indicates a top end to the date range. Any home inspector, any engineer, and most recently any real estate agent…if any of you are using that top end date on a formal or informal basis because you feel the need to artificially connect the end of Mottes pours with CFSIC’s guidelines…and whether you are doing it in writing or just verbalizing it…you are wrong to do so.

Additionally, see what’s in bold below.

“For any residential building purchased on or after February 1, 2019, if the buyer of such residential building is aware that the building or any addition(s) to the building, inclusive of any garage, was constructed in 1983 or subsequent, such buyer will only be eligible to apply to CFSIC as a Type 1 or Type 2 claimant if the buyer or seller of the building has tested for pyrrhotite, or has conducted a visual exam for evidence of pyrrhotite conducted by a Connecticut-licensed professional engineer or CFSIC-certified home inspector, prior to the date of sale.”

This is excerpted from Appendix 1 to the CFSIC claim application itself. (And, yes, it is absolutely published in our guidelines on our website.)

Note again that it is “1983 or subsequent”… no mention of “2015” or “2016” is in that paragraph.

As is true with so many rumors about CFSIC’s underwriting guidelines and operations, we all need to get this straight. We encourage real estate agents in particular to refer people to the Superintendent’s office for clarification of CFSIC’s guidelines.

Transfer Claimants: Real Estate Agent Alert…

Real estate agents can play an important role in helping to move residential real estate in the Northeast Corner by understanding how a claim with CFSIC can be transferred from seller to buyer.

We want to help realtors understand the CFSIC claim transfer process. Realtors can play an important role in this process…and we don’t mean by interpreting the CFSIC claim transfer process (which is not their job)…we mean by being there for their clients to assure that the process works smoothly and the claim can be effectively transferred.

We’ve decided to use a Q&A format for this alert.

Question: Can any claim with CFSIC be transferred?

Answer: Yes…with ONE EXCEPTION. No claim where the foundation remediation process is already underway can be transferred.

Question: Define “underway.”

Answer: Where any part of the remediation process has begun…including the moving of even one piece of equipment onto the claimant’s property in preparation for construction to begin.

Question: What are the steps in the process?

Answer:

Step 1: Simply ask the seller whether they have applied to CFSIC.

Question: What if the seller can’t remember if they applied to CFSIC?

Answer: Unfortunately, that happens a lot (surprising but true). Ask the seller if they have a CFSIC claim number, or if they kept a copy of their original application and any supporting documents. If the seller can’t find this information, they can call the Superintendent’s office at 860-487-0000.

Question: Can I as a realtor just call instead?

Answer: No. If the seller wants to transfer an existing claim, it must be the seller who calls.

Question: Okay…can we just get the buyer to call?

Answer: Same answer as above.

Question: Okay…what is “Step 2”?

Answer: As a realtor, either point the seller to the link below, which fully explains the claim transfer process, or print this information and hand it to the seller:

https://crumblingfoundations.org/for-homeowners/how-to-transfer-a-claim/

Question: But what if they start asking me questions…

Answer: You’d be providing information well outside your license…that’s what the Superintendent’s office is for (see phone number above).

Question: Is there a “Step 3”?

Answer: Yes. The claimant/seller should then contact ESIS ProClaim at (844) 763-1207. They provide their name (claim number not needed) and their address to any member of our adjustment staff. The staff member will then provide the claimant/seller with a Claim Transfer Data Form. The data form must be completed by the seller or the seller’s attorney.

Question: Can I as the agent complete it?…or how about the buyer?

Answer: No and no.

Question: What comes after that?

Answer: The seller or seller’s attorney must directly and personally return the completed Claim Transfer Data Form to their contact at ESIS ProClaim (preferably by email)…and to anticipate your next question, this cannot be done by you and or the buyer.

Question: This process sounds pretty simple at this point. When does it start to get complicated?

Answer: It never gets complicated, as long as the seller stays involved every step of the way. At this point, depending upon whether the seller is an Active, Inactive, or Pending claimant, CFSIC needs to send a Claim Transfer Agreement to that claimant/seller by email. That comes from the Superintendent’s office, NOT from the claims adjustment staff at ESIS ProClaim…and that email communication from the Superintendent’s office will be specific about what happens next. (The Superintendent’s office can help a seller/claimant understand how their claim status affects anything else that needs to be done before the claim transfer can be completed.)

Question: Are we getting to the last step?

Answer: Yes. You are on it right now. The claimant/seller completes the Claim Transfer Agreement (sent to them by the Superintendent’s office) by signing it and having it witnessed (no notary required), and then provides it directly or through counsel to the buyer for their signature (with a witness as well), and the buyer then returns it to the seller. LASTLY, the seller must then return the fully executed Claim Transfer Agreement to the Superintendent’s office (where it came from in the first place) ATTACHING A COPY THE WARRANTY DEED.

Question: What happens if we just can’t get the seller to follow through and do this work?

Answer: Then CFSIC will not transfer the claim.

Question: Okay…once you get back the Claim Transfer Agreement with the Warranty Deed attached, is the buyer of the home now a CFSIC claimant?

Answer: Yes. The buyer occupies the exact same place in our system that the seller once did in each and every respect. That residential home address has now transferred fully to the buyer for purposes of CFSIC.

Question: Is there a time limit to get this all done and what happens if we don’t make it?

Answer: There is a time limit: thirty days from the date of sale. If the entire transfer process (and, yes, the entire process…from beginning to end) isn’t completed by then, it can’t be completed. So, if a seller represents that they have a CFSIC claim and walks away from their absolute obligation to do what they have to do as an existing claimant, within the time limit, to see that the claim is fully transferred to the buyer…then potentially some serious misrepresentations have been made to a buyer, and we know you will understand what that means.

Question: Any final advice for real estate agents?

Answer: Yes. Take a moment and print out this section of our site. Put the printed copy in your briefcase and take it with you wherever you go in the Northeast Corner of Connecticut.

January 5, 2022 Is An Important Date…

We wanted to remind everyone that anyone who applied to CFSIC on or after January 13, 2020 is by definition a “Pending” claimant.

If you’ve made application to CFSIC on or after that date, our electronic claims system has recorded key facts about your application, and that’s important to know.

But for most Pending claimants, there is something much more important for you to know…and that is that none of CFSIC’s claims adjustment staff began to look inside Pending applications in any detail until January 5, 2022.

Said another way, it was only on January 5, 2022 that our great staff at ESIS ProClaim actually began to open Pending claimant files and review them, document by document and page by page. Prior to that time, the staff had not done anything with your Pending claim except register its existence in our system. As you can imagine, we have been very busy taking care of Severity Class 3 and 2 claimants who first applied when we opened our doors on January 10, 2019.

We’re rapidly going to move into the adjustment process with Pending claimants from February through June, reviewing claim files and contacting Pending claimants directly about the status of their claims. Some of the Pending claims filed will be in perfect condition (a complete application, all points of evidence, etc.). Some Pending applications will be incomplete, or may be missing points of evidence.

Either way, our great claims staff will be working though each individual Pending claim file to get to the answer.

We’re going to start with verified Severity Class 3 Pending claimants first. We have more than 300 of those, and it’s going to be a job of work managing that process.

But what’s the goal?

Simply put…it’s to be in touch individually and directly with as many Severity Class 3 Pending claimants as we can, as soon as we can, and in the order, after January 13, 2020, in which their applications were received, so that when our next round of funding arrives (we hope this summer), we can move dozens of Pending claimants into Active status and from there quickly into line for a Participation Agreement.

New PAs Now in Suspension…

Effective this past Friday, CFSIC has suspended the issuance of new Participation Agreements until it receives its next round of funding, which is anticipated to happen this summer.

To be clear…we are still very much moving Active claimants into line to receive PAs in future…we’re just not sending new PAs to claimants while we are in suspension.

We are expecting to receive approximately $10.6 million to $11.0 million from the Healthy Homes surcharge perhaps as early as the end of June and, in addition, another $25 million from the CT Bond Commission as early as July or August of 2022.

When these funds are received, starting with the Healthy Homes surcharge funds, we’ll immediately re-open the Participation Agreement line.

By way of reminder, CFSIC’s Superintendent has directed that the captive will always maintain a minimum operational cash balance, so that we can continue our work while we are between funding allotments. This is particularly important since we are now rapidly opening Pending claim files and moving Tier 1 Pending claimants into the Participation Agreement line as quickly as our process permits.

Our goal is simple: make Pending claimants Active; make Active claimants eligible to receive a PA. We are moving as quickly as we can to make this happen.

Clarifying Severity Class Code 1 Foundations…

The Superintendent has directed that CFSIC publish a guidance on the visual inspection of foundations as it relates specifically to the classification of a foundation as a Severity Class 1. (This guidance does not apply to Severity Class 2s or 3s.)

Beginning immediately, the Superintendent has directed that in order for a Severity Class 1 to be validly applied through a visual inspection undertaken by one of our certified inspection professionals or a CT-licensed professional engineer not otherwise certified by CFSIC, 50% or more of the measurable wall space of the foundation must be visible to the professional assigning the severity class code. Otherwise, no Severity Class 1 code can be applied, and the professional must designate the foundation as “unable to certify.”

It is important to remember that a visual inspection cannot be successfully accomplished for a Severity Class 1 if 50% or more of the interior foundation area is simply not visible.

To be clear: the requirement that any home sold after February 1, 2019 must have, in order to qualify for a potential CFSIC claim, EITHER a visual inspection report or a core sample report prior to the date of sale, is not compromised by this guidance. Nowhere in CFSIC’s guidelines is it required that the visual inspection must be severity coded in order to satisfy this requirement…the only requirement CFSIC has with regard to the February 1, 2019 rule is that one or the other has to have taken place: a visual inspection or a core test. This is an important fact that is not widely understood, particularly by some professionals in the real estate community.

No claimant ever becomes an Active claimant in CFSIC without a severity class code (and it doesn’t make any difference whether you’re a Class 3, 2 or 1)…so we draw everyone’s attention to the difference between what the rule is for homes purchased on or after February 1, 2019 as opposed to CFSIC’s rule about how you qualify to be an Active claimant. The first rule gets you in the door at CFSIC; but unless you have a Severity Class code you will never actually become an Active claimant. We encourage real estate agents in particular to pay close attention to this very important distinction.

Professionals undertaking a visual examination where a Severity Class code of 1 might normally apply will never be required to provide that designation to a foundation if they cannot see 50% or more of what they are trying to classify.

The Cap Is Going Up…

The cap on allowable construction costs will rise to $190,000 from $175,000 for stand-alone homes, and to $76,000 from $70,000 for condo units, effective 9:00 AM on January 5, 2022.

The Superintendent has conducted research on the issue over the past three months, with particular regard to the costs of materials and labor, and the difficulties with supply chain management. With the full support of CFSIC’s board, the Superintendent has made the decision to increase the caps in place.

Because the calculation of the cap can only be done by first using the linear and square footage factors applying, those will change as well. The current $719 maximum allowable cost calculation per linear foot of house foundation will rise from $719 to $777. The square foot maximum allowable costs for basement slab currently at $27 will rise to $30. The maximum allowable cost per linear foot of garage foundation will go from $657 to $710. The maximum allowable costs per square foot of garage slab will rise from $12 to $13.

We remind everyone that CFSIC currently permits special calculations for slab on grade construction. These will change as well. For linear per foot foundation measurements, the maximum allowable cost factor will go from $1,012 to $1,093, with the square foot of slab on grade itself maximum allowable cost moving from $29 to $31. (For garage calculations, see above, as these will be the same.)

These changes will apply to any new construction proposals submitted to ESIS for the first time on or after January 5, 2022. What does this mean?…if you have at any point between January 10, 2019 and January 5, 2022 submitted construction proposals to ESIS, the old cap applies to you.

As an example, if you are currently an Active claimant (and you already know that you need to get into the Participation Agreement line by 5:00 PM on January 5 or be taken out of the system), please understand that you will be unable to wait until January 5 and submit two new proposals at the new cap and at the new factors. As will be clearly understood, it is not going to be possible for staff to review your new proposals and approve them, for you to then have one of them executed, for your contractor to then submit all needed documentation, and for you to then be moved into the Participation Agreement line…all within 24 hours.

But here’s what’s more important… you will already have submitted proposals to ESIS. Therefore, it will not be for the “first time” when you re-submit. We at CFSIC can’t pretend that we already didn’t have proposals on your remediation prior to January 5.

We’ve supplied a few questions and answers to help everyone understand these changes.

Question: Will contractors be able to download a new template to calculate linear/square footage costs?

Answer: The template will be up online on this site on January 5 on or before 9:00 AM. The new template (including the new factors) cannot be used before that date and time, and any such proposals staff receive before that time will be rejected.

Question: I’ve heard that the current cap of $175,000 is not nearly enough. What makes you think that going to $190,000 is that much better?

Answer: We think you’ve heard wrong. Under the current $175,000 cap, our average allowable costs are actually right at $160,236. Contrary to what has been suggested in social media, the cap has always worked. It will continue to work as a way to spread limited funds among as many victims as we can.

Question: Are any other parts of the program changing on January 5?

Answer: No. For example, the relatively new requirement that if a homeowner has progress payments due, then the total of these progress payments must be evenly spaced in sync with contractor progress payments throughout the project, will remain in place.

Question: It doesn’t seem fair that just as you’re starting to open up Pending claimant files, Pending claimants get a bigger benefit than claimants who signed up on Day One. I think what I’ll do is withdraw myself from the Participation Agreement line and start all over again.

Answer: The system permits you to withdraw your claim from the PA line. But here’s what happens if you do: you would then reapply and automatically become a Tier 2 Pending claimant on a foundation for which you had originally provided proposals prior to January 5, 2022, and therefore you would have wasted your time…for while you think you would get the benefit of the increased cap, you would not, because we would apply the old cap to your claim…and on top of it your foundation, which would probably be replaced in 2022 or 2023 if you’d stayed in line, would most likely now get replaced in 2027 or 2028. That choice would be yours but would clearly make no sense.

Protecting the Claim Transfer Process

Effective November 16 at 5:00 PM CFSIC has instituted a tightening of the claim transfer process. Go here to see highlighted changes to CFSIC’s Underwriting and Claims Management Guideline.

Annual Report Infographics

At the recent Annual Meeting of the board of CFSIC, the Superintendent presented the board with some infographics on the status of the program. Click here see this PowerPoint in its entirety. This is a supplement to CFSIC’s Annual Report dated September 29, 2021.

CFSIC’s Audited Financial Is Available

The Board of CFSIC was presented at its recent Annual Meeting with CFSIC’s independently audited financial report. By way of reminder, the independent auditor retained by CFSIC performs two audits: a statutory audit on behalf of the Connecticut Insurance Department and the Board, and an independent state audit provided to state government. CFSIC’s 2021 audit is posted here.

The claims disbursement process was tested independently. The separate cash disbursement process was tested. The audit was independent, vigorous, and complete. No exceptions were noted in the audited financial concerning any aspect of CFSIC’s operations.

By way of reminder, CFSIC’s auditor is the only service provider that does not report directly to the Superintendent and only to the Board of Directors.

Read CFSIC’s Third Annual Report

CFSIC believes in transparency and in data. The only way victims have been helped and can be helped is through an understanding of what we’ve accomplished, and how far we have yet to go. You can read the Superintendent’s 2021 Annual Report to CFSIC’s Board of Directors here.

How We Pay a Claim

This week we are pleased to feature a new white paper written by Kevin Miller on the importance of the visual examination of impaired foundations. This link will take you to this latest installment in this series.

An insurance company has to have a process by which it pays (it adjusts) a claim.

A state insurance commissioner, whether the insurance company in question is a captive or it is not, will not approve an operational plan for that insurance company unless that regulator is satisfied that the factors used to determine how a claim is paid are correct, fair, and based on logic.

This is why CFSIC does not use the results of foundation testing (whether through the extraction of a core sample or by other means) in determining how we actually pay a claim…how we disperse taxpayer funds.

While we believe that the victims of this crisis need to have any information about their foundation that they can get…including the results of foundation testing…the results of foundation testing are not the basis on which CFSIC pays a claim.

There are very good reasons for this.

When CFSIC opened its doors on January 10, 2019, its Board of Directors was under significant public pressure, primarily from some concrete activists, to use the results of foundation testing as the basis on which claims should be paid.

After a lot of consideration, CFSIC’s board rightly rejected that idea. Given CFSIC’s limited financial resources (which are still limited) CFSIC’s Board of Directors chose to create an underwriting and claims payment platform based on the quantifiable severity of impairment…a visual examination by qualified professionals, documented by photographic and measurement evidence, as the basis of prioritizing who would get their claim paid first.

How could we have built a claims management platform off the results of pyrrhotite testing? Let’s ask ourselves a series of questions that will help us get to the answer.

– Does a positive core sample tell you how badly your foundation has deteriorated?

– Do the results of concrete sampling predict when a perfect foundation (with no hint of impairment) might begin to show signs of impairment?

– Does it predict the year or even the decade when that might occur?

– Does it predict with any accuracy, once the impairment begins to show itself, how long it will take before you can no longer close your front door?

– In fact, does it actually predict anything at all with certainty?

The answer is “no.”

Not only that, but we at CFSIC believe that it may be a decade or more before enough data is collected to begin the process of what we call “predictive modeling.” Meanwhile, what do we do with claimants whose foundations are obviously impaired? By that, we mean visibly, quantifiably impaired. Do we tell them that, even though they have the scientifically proven visual outward signs of pyrrhotite, they still need to get a test? What happens months later and what do we tell them when they are facing bankruptcy or possibly even eviction because the structure is unsafe? Do we tell them “…sorry, we can’t help you, even though your basement obviously has a pyrrhotite infection, because our claims management guidelines don’t allow us to pay a claim without a core test”?

CFSIC felt it needed to move quickly, because the victims of this crisis were suffering emotional as well as financial loss.

We felt it was important to prioritize severe, scientifically quantifiable and measurable foundation impairment. We felt that, when a victim can no longer close their front door because of a crumbling foundation, that was far more important than whether or not that foundation had tested positive for pyrrhotite and at what level.

We still believe this to be the case.

We asked those then who wanted us to use a positive pyrrhotite test as the basis of disbursing taxpayer funds just how it would work. If your foundation tested positive for pyrrhotite (in whatever amount) and your foundation was still in perfect condition…did that mean that the taxpayers of CT should tear down that perfect foundation…a foundation that is not failing…and replace it just because that foundation might fail in the future? No one we spoke with inside or outside of state government thought that was a great idea, except for a handful of crumbling foundation activists.

If CFSIC had adopted a positive foundation test as the criterion for using taxpayer funds, how would we have identified who should be first in line? How would we have determined who was placed ahead of whom…especially when some people were unable to close their kitchen cabinet doors anymore?

There is no scientific and no statistical evidence supporting the idea that foundation testing results can predict, with any certainty, when a foundation will fail or even if it will at all. Make no mistake: CFSIC is not anti-testing. Far from it. CFSIC is about the use of hard facts in the disbursement of taxpayer funds.

Once testing data becomes available with statistical validity, CFSIC will not hesitate to use it, and it will not hesitate to build that data quickly and absolutely into our claims management program. Until that time comes, foundation testing is not the basis on which CFSIC pays claims.

CFSIC’s board had a choice: it could adopt a rational visual examination policy to rapidly put people in line who were the victims who were suffering the most…or it could have relied on who got a core test first. Had we done the latter, very few homes would now be remediated in Connecticut.

We believed then, and we believe now, that the visible manifestations of pyrrhotite infection, observed and documented by trained professionals, is the way that a professional insurance company’s claims program needs to operate. We are not going to change that position any time soon.

Ask any one of the 37 victims in Stafford Springs, CT whose foundations we have already replaced in 28 months whether they would have preferred us to use the results of foundation testing versus the results of visual examination in determining how their claims were paid. If you can walk into your basement and, because of your crumbling foundation, you don’t need to turn the lights on because sunlight is pouring in through the cracks…we think the answer is obvious.

CFSIC has never been approached at any time to collaborate with anyone validly collecting the results of testing information. We find that puzzling, as CFSIC is all about collaboration and all about the reasonable sharing of information for the public’s benefit. If we weren’t about sharing data, then our data would not be up on our website. We did experiment briefly with one possible collaboration in this regard…but we stopped when it became clear that it wasn’t going to be a collaboration of equals.

We stand ready to receive and accept valid foundation testing data and to incorporate it into our underwriting system when that data becomes available by way of using it to predictively model exactly when a foundation will fail.

Until then, we’re busy putting lives back together and restoring the tax base in the hard-hit towns of the Northeast Corner of Connecticut.

___________________

If you have any questions about the operation of the program, ESIS is your best source of information on your claim, and their phone number and email are shown below.

Phone: 844-763-1207

Email: cfsic@esis.com

As you work through the information and application process (understanding that we are in suspension for the taking of new applications), here’s how you can get help:

– Call ESIS (the claim adjuster) at: 844-763-1207

– Email ESIS at: cfsic@esis.com

– Email CFSIC at: info@crumblingfoundations.org

To view a video of how to complete an electronic application, go here.

To apply for a Type 1 claim, go here.

To apply for a Type 2 claim, go here.

To learn more about the program, if you are a homeowner, including application help, go here.

To learn more about the program, if you are a contractor, go here.