CFSIC’s First Multi-Unit Platform Now In Line
We’re pleased to report that CFSIC’s first multi-unit foundation platform is now in line for rapid remediation once we are out of suspension.
Participation Agreements will be ready for this multi-unit remediation on the day when CFSIC comes out of suspension. Governor Lamont signed expanded enabling legislation only on July 9, expanding CFSIC’s reach to help multiple-unit platforms. This is a major milestone for CFSIC. The cost of remediation for these units will be well below the cap permitted.
Where We Are
We will post here next Monday a detailed report as to CFSIC’s status, including a further update on condos and PUDs.
By next Monday, September 2, we believe that CFSIC will have reserves most probably close to $120 million.
CFSIC’s board will be meeting shortly to consider further action with regard to:
– those claimants whose applications have been missing data for some time and who have been non-responsive to requests to complete all parts of the application and upload all points of evidence, even though enough evidence has been presented to make them a severity code 3 or 2; and
– those claimants who have been in litigation since CFSIC’s inception in January 2019 or before, and who remain inactive claimants on a voluntary basis.
These claimants and their reserves are included in the count of total reserves CFSIC carries. CFSIC’s board will be making some decisions shortly, as we have identified a number of new claimants who we will not be able to place in line for remediation because of the number of claimants who are voluntarily inactive.
Preview of CFSIC’s Annual Report
Before September 10, CFSIC will be publishing an annual report (not to be confused with CFSIC’s audit). Among other things, this report will include milestones in the development of CFSIC during the period May 1, 2018 through August 31, 2019. This report will also include data collected by CFSIC showing the extent of the crisis to date and detailing CFSIC’s remediation efforts.
As a preview to what CFSIC will be publishing before September 10, click here for a general infographic showing clearly that 76% of CFSIC’s current registered claimants live in the top ten towns most affected by property tax abatements, and that those top ten towns represent 89% of the value of all claims held in reserve by CFSIC.
Click here for a Tolland-specific infographic example (data verified as of 8/16/19) showing how CFSIC has already begun to make a difference in one of the communities in the epicenter of this crisis.
The board of directors of CFSIC was pleased to learn last Friday that Eversource and perhaps other utility providers are reconsidering how they can be of better assistance to homeowners confronting the crumbling foundations crisis.
However, CFSIC’s volunteer board was dismayed to read misinformation recently posted on social media about CFSIC’s position with regard to the disconnection/reconnection of utilities. Such misinformation is at the very heart of the reason why CFSIC cannot obtain a steady flow of funds to accomplish its work and does not enjoy enough public support for what it has accomplished.
The disconnection and reconnection of utilities has been part of CFSIC’s allowable concrete cost calculations from the inception of the program.
CFSIC has paid all along for disconnection/reconnection of utilities…what surprised us was what appeared to be only recent significant charges being levied by certain utilities for these services, which in some cases caused the entire allowable concrete replacement value to exceed CFSIC’s cap.
CFSIC believes that it is in everyone’s interest to make the foundation remediation process as consistently affordable as we can.
The Issue of 1099s
CFSIC will be issuing 1099s to all homeowners, regardless of whether these homeowners are Type 1 or Type 2 claimants. CFSIC cannot assist homeowners with tax issues or advise homeowners what to do with the 1099 that they receive. We advise homeowners to seek advice from competent tax advisers.
CFSIC Is In Suspension
CFSIC went into suspension on August 5. We do not know the exact date on which we will be out of suspension. We believe it will be before the end of the first week in October.
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