Bonding awarded to launch crumbling foundations entity
HARTFORD, Conn. (AP) — A Connecticut panel has awarded funding to launch a new not-for-profit insurance company that will manage state dollars that will help homeowners with crumbling foundations.
The State Bond Commission approved $350,000 Friday in start-up money for the Connecticut Foundations Solutions Indemnity Company. The entity, scheduled to sunset in 2022, will manage $20 million-a-year in state funds.
An estimated 30,000 or more homes in eastern and central Connecticut could have foundations failing because of the presence of an iron sulfide that reacts naturally with oxygen and water, causing concrete to crack and crumble over the decades.
As of Friday, the Department of Consumer Protection had received 682 homeowner complaints.
Friday’s funding will cover the initial capital and professional services of a superintendent to begin operating the new indemnity company.