CT Taxpayers Pay for Crumbling FoundationsNovember 7, 2017
Part of the new state budget is $100 million in taxpayer bonding for crumbling foundations in eastern Connecticut.
Homeowners in eastern Connecticut have reason to celebrate, as Connecticut taxpayers will be picking up the tab to fix their crumbling concrete foundations.
Homeowners face substantial repair costs ranging from “150,000 to $250,000,” according to The CT Mirror. Due to pyrrhotite used in the concrete, it is estimated that some 34,000 private homes may have crumbling foundations.
Homeowners found out their private insurance does not cover the repair expenses, nor do homeowners qualify for emergency federal assistance.
While state leaders fought over Connecticut’s contentious budget standoff, despite pleas, it seemed unlikely that the overstretched state government could step in as leaders tried to fill a multi-billion-dollar budget deficit.
However, within the bipartisan budget compromise, Connecticut’s leaders allow up to $100 million of taxpayer bonding to establish a “not-for-profit captive insurance company” that will, over the next five years, distribute grants for repairs:
The newly minted state budget includes language establishing a not-for-profit captive insurance company, run by a volunteer board of directors, to distribute grants for costly repairs or replacement of deteriorating foundations. It will be funded with $100 million in state bonds over five years.
These grants will repair the affected private residences, along with providing tens of millions in immediate aid:
“The good news is there’s $20 million a year for remediation,” said Lyle Wray, executive director of the Capitol Region Council of Governments. “Obviously, homeowners are impatient and want to get going.”
Connecticut’s bipartisan budget was a sought-after goal and has resulted in higher taxes and an overall increase in state spending. This latest taxpayer rescue of private homeowners foundations is just one example of new spending commitments by the state.
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