Condo and PUD Application Assistance

The following information should be used to guide the condo and PUD application process.

1) Defining a Foundation Platform

For purposes of CFSIC’s claim and underwriting guidelines, we define a “foundation platform” as the foundation area on which one or more living units is sited.

2) Cap

CFSIC’s cap of $175,000 per foundation platform will change, but only with respect to condos, effective April 15, 2019 to be $70,000 per eligible condo unit resting on a foundation qualified as an approved and active claim, and where this change applies with respect to either a Type 1 or Type 2 claim. If, however, a condo unit stands alone on its own foundation, with no other units sited on the same platform, the cap applying will be $175,000. (Because PUD dwelling owners each own their foundations, the $175,000 cap applies individually to each individual PUD unit and its respective foundation.)

3) PUDs

First, with specific regard to a PUD, if a homeowner is applying on behalf of a single living unit resting on a single foundation, the applicant should complete either a Type 1 or Type 2 application as the homeowner and owner of the foundation. This can be done at any time. As of March 11, 2019 nothing prevents the owner of a single PUD, who also owns the foundation, from applying, if the unit affected is a single unit existing on a single foundation (in other words, what is otherwise a single-family dwelling).

Secondly, for PUD claimants where two or more living units are sited on the same foundation platform, each individual PUD unit owner will be a separate claimant, and must apply and qualify separately.

We have modified CFSIC’s Underwriting and Claims Management Guidelines to accommodate the needs of multiple PUD homeowner units existing on, what is otherwise clear to any observer, a single foundation platform.

Please note...CFSIC will not permit multiple contractors to work on multiple PUD units sharing the same general foundation platform. For example, if three PUD units are sited on a common foundation platform, all three PUD unit owners must not only agree on a single contractor to perform the work of the foundation replacement, but they must agree to begin with to replace the foundation. CFSIC will not participate in any disputes among homeowners who do or do not want the work done. We strongly urge neighbors to deal with one another in an effective way, as the contractors approved by CRCOG to do this work are all very busy and will move on to other assignments rather than wait for neighbor disputes to be resolved.

As of April 18, 2019, a foundation platform containing more than one PUD living unit must adhere to the following protocol before applying to CFSIC:

1) Each individual foundation lying below each PUD unit need not be inspected by a CT-licensed professional engineer or CFSIC-certified home inspector. CFSIC will accept an engineer’s or home inspector’s written examination report where one severity code applies to the entire foundation platform. (For example, if there are four living units on the same platform, CFSIC will accept one examination report on one portion of that shared foundation as valid and applicable, and where the severity code assigned, once assigned in writing, applies to the entire foundation platform.)

2) Each PUD homeowner must apply separately as a CFSIC Type 1 claimant. No association-signed applications will be required. (If there are four living units on the same platform…that’s four separate applications.)

3) HOWEVER, before applying to CFSIC, the homeowners sharing that platform must obtain a minimum of two contractor bids BEFORE these homeowners can individually apply.

This is a departure from CFSIC’s normal application protocol. We are making this departure from the protocol because of two important issues:

  1. CFSIC believes it’s important that PUD owners do not apply until it is clear that it is possible to lift all applicable units sharing a foundation platform (or otherwise remediate the foundation through other means) without causing structural damage to a PUD unit owned by a homeowner who declines to participate.
  2. The bids from contractors must be clear about how individual units get lifted and/or are otherwise treated if no lifting occurs if, for example, on a four-unit platform, three homeowners say “yes” and one says “no.” (CFSIC cannot become engaged in disputes among homeowners.) If the contractor indicates that it is possible to lift and/or otherwise replace a foundation by not disturbing any structural elements among the homeowners not applying, then individual claims can be made to CFSIC for that platform for those homeowners who want assistance. CFSIC will not accept a claim where a contractor has not represented that a homeowner who has said “no” to participation can remain unaffected by any part of the structural construction process. Said another way…CFSIC will not replace foundations for those who say “yes” if even one common shared platform unit owner says “no” unless the contractor’s proposal specifically says that this can be done without adversely affecting a dissenting homeowner’s foundation structure.

We would encourage PUD owners, and more importantly PUD associations, to seek legal guidance concerning the subject of homeowners who opt out of replacement participation. This may require an individual release by the dissenting homeowner, for example, granting permission for work on surrounding units on the same platform to occur. CFSIC is not in the business of providing legal advice. CFSIC will not assume any responsibility of any kind, directly or indirectly, for disputes arising out of shared or quasi-shared foundation platforms.

Said simply: CFSIC is in the business of replacing eligible foundations affected by the crumbling foundations natural disaster. However, CFSIC is not in the business of replacing foundations for those who don’t want us to.

Lastly, CFSIC will not participate financially in the replacement of any foundation, in whole or in part, lying below a PUD unit owned by a bank or other holder of debt, or by a commercial company investing in distressed properties.

4) Condos

Effective June 10, 2019 CFSIC is streamlining the condo application process by moving to a single application, completed by the association and signed by its president, regardless of the number of units sited on one foundation platform, and where that single application is a one-time application for all affected units within the association.

To reiterate, with regard to condos, the association will be the applicant to CFSIC and will be its claimant for purposes of all dealings with CFSIC. CFSIC will not recognize any individual condominium unit owner as having standing with CFSIC with respect to the condo association application process.

CFSIC’s board has directed that condo associations can now apply to CFSIC one time for all affected condo units in the association, regardless of severity class code.

To be clear, this one-time application process doesn’t mean that all of the work that could be done on all condos in an association can be done at one time...nothing has changed with regard to the issue that work can only commence first on foundations severity coded class 3, followed by class 2, followed by class 1. In other words, if an association has foundations that are severity coded 3, with other foundations severity coded 2...that association should be prepared for there to be potentially a long stretch of time between when the foundations coded 3 will be done and the foundations coded 2 will be done. CFSIC’s guidelines do not permit, under any circumstances, a foundation severity coded 2 to be placed ahead of a severity code 3 any place within our system, unless that class 3 coded foundation remains inactive.

To see more about the condo application process, as well as to view a revised association email template, go to Section #6 below.

5) Examination by an Engineer or CFSIC-certified Home Inspector

It’s important to remember that no application can be made to CFSIC with respect to a condo or a PUD unless a visual examination has been conducted by a CT-licensed professional engineer or CFSIC-certified home inspector, and that, further, that engineer or home inspector has assigned a severity class code to the foundation or foundations in question.

Condo associations or individual PUD owners in possession of an existing engineer’s visual examination without a severity class code assigned can get a severity class code assigned in any of the following ways:

- go back to the original engineer having done the work and ask the engineer to severity code the foundation(s) in questions and to have the engineer provide the applicable class codings by way of an amendment to the original report (at the association’s expense); OR

- request that a severity class coding be done by a CFSIC-certified home inspector (at the association’s expense); OR

- engage a new CT-licensed professional engineer of the association’s choice to assign severity class codings to the applicable foundations (at the association’s expense).

6) Application Process (Condos Only)

Because the CFSIC claim application for a Type 1 or a Type 2 claim has primarily been constructed to accommodate single-family/multi-family dwellings, what follows will provide a condominium association with assistance on how to answer certain questions in the application.

Please note: CFSIC will not participate financially in the replacement of any foundation, in whole or in part, lying below a PUD unit owned by a bank or other holder of debt, or by a commercial company investing in distressed properties.

Question 1, Name of claimant: This will be the name of the condo association.

Question 2, Address of claimant: This will be the association’s mailing address, NOT the address of any affected building. You will answer “yes” regarding the address question.

Question 3, Contact phone number: This must be the president of the association.

Question 4, Contact email: This must be the president of the association.

Question 5(a), Is the affected building a single-family dwelling?: You will click “no” and subsequently you will click 5(c).

Question 6, what is the date on which you purchased the affected residential building?: Put the month and year (to the best of your knowledge) on which one of the affected units you are applying for was built. (This cannot be before 1983.)

Question 7, Are you the owner of the residential building?: You should click “yes.”

Question 10, How long have you (or the owner) occupied this residential building?: To answer this question, go back to Question #6 and calculate the number of years from the date of construction to this year.

Question 11, When was this building built (year)?: Type in the same year that you used for Question #6.

The answers to all other questions in either application will be evident by the nature of the remaining questions. Please note that the questions are slightly different from this point forward depending on whether you are completing a Type 1 or Type 2 application.

On the last page of the application, the condominium association’s president must sign the application electronically and then fill in the remainder at the bottom of the application.

Once this has been done, and all points of evidence have been uploaded, the association president should, under separate cover and not as part of the application, send an email to cfsic@esis.com using the template found here for a condo association.

With regard to assistance in the completion of any condo application, please email ESIS at cfsic@esis.com or phone ESIS at (844) 763-1207.