Substitute House Bill No. 7179 - Summary

• Establishes a captive insurance company to provide financial assistance to owners of residential buildings with concrete foundations deteriorated due to pyrrhotite, with reimbursement available for repairs completed prior to October 31, 2017

• Imposes a $12 surcharge on homeowners insurance policies for properties with 1-4 units, condominiums, and common interest communities from January 1, 2019 through December 31, 2029, with 85% of collected surcharges deposited into the Crumbling Foundations Assistance Fund

• Creates a supplemental collapsing foundation loan guarantee program administered by the Connecticut Housing Finance Authority to guarantee loans up to $75,000 made by participating banks and credit unions for foundation repairs, with interest rates capped at Federal Home Loan Bank of Boston rates

• Requires sellers of residential property in municipalities affected by crumbling foundations to disclose knowledge of pyrrhotite presence, foundation deterioration, and prior repairs through written residential condition reports

• Establishes a working group to develop quality control standards for quarries and study the contractor workforce for foundation repair work, with findings due by February 1, 2020