This article was in the Journal Inquirer on 07/09/2019.


Lamont signs crumblingfoundation law 


  • Jul 9, 2019
  • HARTFORD— Gov. Ned Lamont has signed into law a comprehensive crumbling foundation billthat aims to protect unsuspecting buyers from purchasing affected homes. Italso establishes a low-interest loan program for repairs, allows condominiumowners to participate in the captive insurance company, and develops morecost-effective methods for repairs.

Thelaw requires that new information be provided on residential disclosure reportswhen a home is for sale.

 Theseinclude disclosing if the seller has any knowledge of the presence ofpyrrhotite in the foundation, if there is any deterioration due to pyrrhotite,and if there were repairs done to the foundation. 

Realestate agents would also have to provide any information they know about acrumbling foundation. If real estate agents have any knowledge they don’tdisclose, they could face punitive action, including fines, suspension, orrevocation of their license.


Ifa municipality that the Capitol Region Council of Governments determines isaffected or potentially affected by crumbling foundations acquires a homethrough foreclosure, the municipality must provide the same information in aresidential disclosure report.

Abuyer will be able to bring a civil suit against a seller who has knowledge ofpyrrhotite but doesn’t disclose it.

Thelaw creates a low-interest loan program that will provide up to $20 million,with the state guaranteeing $2 million to protect banks from defaults.

Apublic-private partnership funded by banks and backed by the state will provideloans of up to $75,000 for up to 20 years for repairs other than foundationsthat are not covered by the captive, including repairs to lawns, decks, andother property that is damaged or destroyed when replacing a foundation.

Inorder to qualify for the program, an affected homeowner first must have gonethrough the process of receiving a participation agreement or grant from thecaptive.

Additionally,Connecticut Innovations Inc., will administer a program to develop newtechnologies and techniques regarding the prevention, identification, andrepair of affected properties.

Thelaw also clears up language included in past legislation, such as allowingcondominium owners to participate in the captive insurance company and ensuringa $12 annual surcharge on homeowners’ insurance policies is charged only to thefirst person on the policy.

Thestate will also work with the captive to collect data necessary to conductresearch on crumbling foundations, and a working group will be established todevelop a quality control plan for quarries and study the workforce of contractorsfixing foundations.


Thelegislation is the result of a session-long collaboration by the bipartisanCrumbling Foundation Caucus, consisting of dozens of area legislators.