Announcing Immediate Suspension of New Participation Agreements
Beginning on April 29, CFSIC will be unable to enter into any further Participation Agreements with affected homeowner claimants until it receives the proceeds of its April 4th Bond Commission allotment of $20 million.
The Participation Agreement is a promise. I only countersign one when all of a claimant’s application process has concluded successfully, and CFSIC’s individual claim file on that claimant is complete and accurate in all regards. When a homeowner signs a Participation Agreement, and I countersign it, that claimant becomes a “participant” in the CFSIC program, which means the financial commitment has been made to do what our mission says we should do for that claimant.
As I have written before on this website on a number of occasions, CFSIC will not enter into Participation Agreements with homeowners if we do not have funds available to honor those homeowner claims. I have been clear that we would stop the Participation Agreement process at the point at which we did not have the cash to pay any new claims.
As of this weekend, our total current estimate of all existing construction costs to which CFSIC has committed, as well as our existing general and administrative expense costs, equal approximately the total amount of cash that CFSIC now has on hand.
For this reason, we will not be entering into any more Participation Agreements until we are able to receive our next tranche of funding from the CT Department of Housing.
We’ve created the following “questions and answers” that should help affected homeowners understand what this means.
Is CFSIC going out of business?
I’ve signed a construction contract, and I have a signed Participation Agreement. Does this mean that my project now won’t go through?
No. If you have a fully executed Participation Agreement, the cost of your replacement or reimbursement has been accounted for and will be paid.
My contractor will be expecting a progress payment on my project shortly. Does this mean he won’t be paid?
I think I’m in line to get an email from the Superintendent’s office to complete a Participation Agreement. What do I do now
You will get an email in the next 2 to 3 business days advising you that we cannot enter into a Participation Agreement with you until our next round of funding is received. This will have no effect on your claim. It just means that we can’t enter into a Participation Agreement with you, and your contractor cannot begin work until we receive more funding.
ESIS has informed me that my claim has been made active, and that I should get a minimum of two contractor proposals. Should I still do this?
But when I get these, should I still send them to ESIS for approval?
Yes. The only difference, effective today, is that when ESIS writes to you to tell you that the contractor proposals are approved, you cannot sign a contract with your chosen contractor until we alert you that we will have the funds to honor CFSIC’s portion of those construction costs.
I am a Type 2 claimant in the current fiscal year who is already in the payment stream. Does this mean that I won’t get the rest of my reimbursement?
I am a Type 2 claimant who has signed a Participation Agreement and who is not scheduled to go into the payment stream until the next fiscal year. Does this mean that I won’t get my reimbursement?
How long do you expect this suspension to last?
We don’t know. We have reached out to the Department of Housing to determine the best and most efficient way in which the allotment due us can be transferred to CFSIC as soon as possible. We feel certain that we can count on the cooperation of the Department of Housing in order to continue our work.
Who should I call with any questions?
You should reach out to ESIS by email at email@example.com or by phone at (844) 763-1207.
Enabling More Foundation Examinations…
In an effort to facilitate more applications from affected homeowners, CFSIC will be inviting CT-licensed home inspectors, as well as CT-licensed engineers, to become certified by CFSIC to conduct visual foundation examinations on behalf of homeowners.
Currently, licensed home inspectors are not permitted to provide homeowners with an evaluation of a foundation’s condition for purposes of a homeowner’s claim application to CFSIC. Only CT-licensed professional engineers are able to perform that function.
Effective June 12, CFSIC will accept, for the first time, visual examinations performed by a CT-licensed home inspector who has been certified by CFSIC to conduct visual examinations of affected foundations and to severity code those foundations for purposes of filing a potential claim with CFSIC.
Assisted by a grant from the Connecticut Association of Realtors, under the leadership of its President, Dan Keune, CFSIC will conduct two seminars on June 11 and June 25, which are designed to enable home inspectors who have passed a prescribed course curriculum to assist homeowners with the evaluation of their foundations.
Here are the ground rules:
1) There will only be two courses conducted in 2019: the first on June 11, the second on June 25.
2) Registration is “first-come, first-served” in date and time order, and is limited to 27 attendees in each of the sessions. (Once either session is filled, applicants will automatically be moved to the remaining session.) No other sessions will be available until June of 2020 at the earliest.
3) Attendance will be limited to CT-licensed home inspectors with a minimum of three years of work experience (a certification to this effect will be required), as well as CT-licensed professional engineers (engineers will be limited to five attendees per session).
4) The seminar is being conducted as a public service by CFSIC, with grant support from the CT Association of Realtors. There will be no charge for attendance.
5) No more than two persons can attend from any one home inspection or engineering firm per session (again, subject at all times to “first-come, first-served”).
The course curriculum will be a day-long, intensive examination of the crumbling foundations issue, inclusive of an in-depth discussion about the causes of concrete failure. It will be conducted by Jose-Miguel Albaine, M.S., P.E., who is a practicing professional engineer with a wealth of experience in the examination of impaired foundations; and Kevin Miller, NRMCA Level 4 of Tilcon, who is a recognized specialist in concrete science and identifying modalities of concrete failure.
Important Note: It’s important to note that the CT Department of Housing will not permit the cost of a CFSIC-certified home inspector’s visual examination report to be reimbursed under the reimbursement program administered by the Capitol Region Council of Governments (“CRCOG”). As a result, homeowners engaging a certified home inspector to conduct a visual examination will do so entirely at their own expense.
The enrollment for this prog.ram will be limited to the registration form noted above. Enrollment begins today.
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.
As you work through the information and application process, here’s how you can get help:
– Call ESIS (the claim adjuster) at: 844-763-1207
– Email ESIS at: firstname.lastname@example.org
– Email CFSIC at: email@example.com
Michael Maglaras, Principal
Michael Maglaras & Company