Planning and Development Committee
JOINT FAVORABLE REPORT
Bill No.: HB-6646
Title: AN ACT CONCERNING CRUMBLING CONCRETE FOUNDATIONS.
Vote Date: 3/31/2021
Vote Action: Joint Favorable Substitute
PH Date: 3/22/2021
File No.: 550
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Planning and Development Committee
Rep. Jeff Currey, 11th Dist.
Rep. Tom Delnicki, 14th Dist.
Rep. Jaime S. Foster, 57th Dist.
Sen. Saud Anwar, 3rd Dist.
REASONS FOR BILL:
Thousands of families in small towns throughout northeastern Connecticut have been
devastated by the discovery that their homes have crumbling foundations because the
concrete used contains pyrrhotite, which has compromised the structure. The cost of
repairing the foundation, which some estimate can range from $150,000 - $250,000, may
exceed the equity in or the value of the home, leaving owners with very few options.
In addition to the devastating impact on homeowners, towns have seen sizable drops in their
grand lists because of the lower assessment value of these homes. Some towns are also
worried that because people cant afford the repairs and cant sell the properties, they will end
up abandoning their homes. Abandoned properties that may be in danger of collapse create
serious public safety concerns.
Previous legislation created the Connecticut Foundations Solutions Indemnity Company,
which serves as the captive insurance company to process and pay out claims. This bill
eliminates the termination date, currently set for June 30, 2022 and offers other suggested
changes: (1) permit any owner of a residential building with a foundation made with defective
concrete to obtain a reassessment of such building which shall remain valid until such
foundation is repaired or replaced, (2) eliminate the termination date of the captive insurance
company established pursuant to section 38a-91vv of the General Statutes, (3) require
quarries that produce aggregate for use in concrete to annually prepare a geological source
report, (4) require the Commissioner of Consumer Protection to adopt regulations concerning
standards for the testing of aggregate produced by quarries for use in concrete, (5) authorize
the Connecticut Housing Finance Authority to make loans to the captive insurance company,
and (6) require the captive insurance company to submit a report concerning the damage
caused by the presence of pyrrhotite to the concrete foundations of nonresidential buildings
in the state.
***Proposed substitute language. Expands Section 8 to include the following: (a) establishes
the Healthy Homes Fund as a separate, non-lapsing account within the General Fund which
remits funds to (1) DECD for grant-in-aid to specified communities in Woodbridge and New
Haven, (2) a newly established program to reduce home health and safety hazards, (3) the
captive insurance company to be used for the research and development of the required
report. In subsection (b), it establishes the notification procedure regarding the funds from
DOH to DPH to municipal health departments. In subsection (c), reporting requirements from
DOH to the committee of cognizance are outlined.
RESPONSE FROM ADMINISTRATION/AGENCY:
Michelle Seagull, Commissioner, Department of Consumer Protection. Commissioner Seagull
submitted testimony stating that "while the intent of this proposal is appreciated, DCPs
proposed involvement seems unnecessary, and DCP does not currently have the resources
to implement. If this bill should become law, the Department would need to hire a subject
matter expert such as a geologist to work with the State Geologist to write the regulations."
NATURE AND SOURCES OF SUPPORT:
Michael Maglaras, Superintendent of Connecticut Foundation Solutions Indemnity Company,
Inc. (CFSIC). Mr. Maglaras submitted written testimony in support of HB-6646. As the captive
insurance company authorized to distribute the funds to impacted residents, CFSIC would be
forced to begin winding down operations in September 2021 if legislation is not passed to
extend or eliminate the current sunset date of June 30, 2022. CFSIC urges the committee to
remove the sunset date so that they can continue their work, and to extend the Healthy
Homes surcharge in a way that allows them to rapidly deploy larger financial resources to
address the crisis as quickly as possible.
Representative Geoff Luxenberg, 12th Dist. As a member of the bipartisan Crumbling
Foundations Caucus, Rep Luxenberg submitted written testimony stating that "Given the
economic scope of this crisis, the survival of entire communities is dependent on the viability
of this captive insurance company and the resources that it provides. Passing this legislation
and securing the future of the CFSIC is a vital step in gaining the trust of residents in need."
He also noted there is a need to directly support the homeowners by allowing them to obtain
a reassessment of their building and that efforts must be made to prevent this problem from
happening again by establishing safeguard mechanisms.
Representative Jaime Foster, 57th Dist. Rep. Foster submitted written testimony as the House
Democratic Chair of the Crumbling Foundations Caucus and a representative of the towns of
Ellington and East Windsor. She voiced strong support for eliminating the sunset date, the
quarry study group, extending the reassessment period, the analysis by CFSIC of crumbling
concrete in commercial properties, and the funding of CFSIC.
Page 2 of 4 HB-6646
Betsy Gara, Executive Director, Connecticut Council of Small Towns (COST). Ms. Gara
submitted testimony in support, including the concerns of many small towns that home values
will continue to drop and homeowners will abandon their properties, having a deleterious
impact on municipal tax revenues and public safety. She notes previous legislative efforts to
address this crisis and states that this bill builds on those efforts.
Lisa Thomas, Coventry Councilwoman. Ms. Thomas submitted testimony in support of HB-
6646 as a critical step to support her constituents whose home property values are falling due
to crumbling foundations. As she states, "This financial burden on our small towns already
struggling to survive is unsustainable. Many homeowners are still waiting in the queue for
funds to help them repair their homes. Some homeowners have not yet even determined that
they have crumbling concrete. As such, it is critical that the legislature remove the termination
date of the captive insurance company until all homeowners who need it have accessed it."
Multiple owners of homes with crumbling foundations provided written testimony in support of
HB-6646. Many shared personal stories and advocated for: allowing homeowners to obtain a
reassessment of their home that will remain valid until the foundation is repaired or replaced,
which may exceed the current (5) year time limit; extending the life of the captive insurance
company; and providing funds from the Connecticut Housing Finance Authority to the captive
insurance company to settle claims.
Diane and James Bulick, Willington
Lisa Burns
Dan and Laurel Carmody
Bruce and Tracy Craven, Enfield
Jim and Evelyn Dahl, Manchester
Edward Filteau, Vernon
Ann Kennedy, Stafford Springs
Shawn & Kim Kowalyshyn, Willington
Debbie MacCoy, Vernon
Nancy & Philip Martin, Ashford
Laura Mirante, Coventry
Gretchen Shea, Vernon
Kristin Smith, Ashford
Tom McGrath, Columbia
Support with changes to section 3
Don Shubert, CT Construction Industries Association. CCIA's written testimony supports the
overall intent of the proposed legislation, but is concerned that Section 3 does not accurately
reflect the recommendations of the Report of the Working Group, including allowing out-of-
state producers to supply aggregates for concrete without providing the same protections
recommended for all producers, and placing an unnecessary burden on quarry operators and
unneeded additional costs on the construction industry as a whole without adding value.
Suggested revisions were offered.
Jim Perras, Homebuilders & Remodelers Association of CT. Mr. Perras submitted written
testimony saying that while HBRA-CT understands the importance of making sure CFSIC
continues and is well-capitalized, they concur with the concerns of the CCIA about Section 3,
stating that the Working Group was intentional and deliberative in its recommendations.
Page 3 of 4 HB-6646
NATURE AND SOURCES OF OPPOSITION:
Nandini Natarajan, CEO-Executive Director, CT Housing Finance Authority. CHFA submitted
written testimony questioning Section 5 of the bill, stating that " CHFAs issuance of a
revenue bond to capitalize another entity, in the way this bill contemplates, would be an
unprecedented approach for our organization" and may not be allowable under current law.
Concerns were also stated about whether the bonds would qualify for tax-exempt status,
meaning that their issuance would raise less money that could be used to assist impacted
homeowners. CHFA recommends that the various relevant stakeholders be reconvened to
find a solution.
Reported by: Erica Byrnes Date: 4/20/2021
Page 4 of 4 HB-6646


Statutes affected:
Raised Bill: 29-265d
PD Joint Favorable Substitute: 29-265d, 8-446
File No. 550: 29-265d, 8-446
File No. 776: 29-265d, 8-446, 29-265e
Public Act No. 21-120: 29-265d, 8-446, 29-265e