General Assembly Proposed Bill No. 6005
January Session, 2017 LCO No. 602
*00602*
Referred to Committee on PLANNING AND DEVELOPMENT
Introduced by:
REP. BARAM, 15th Dist.
General Assembly
Proposed Bill No. 6005
January Session, 2017
LCO No. 602
*00602*
Referred to Committee on PLANNING AND DEVELOPMENT
Introduced by:
REP. BARAM, 15th Dist.
AN ACT AUTHORIZING BONDS OF THE STATE TO ESTABLISH A FUND TO ASSIST HOMEOWNERS WITH CRUMBLING FOUNDATIONS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
That the general statutes be amended to require that before a certificate of occupancy is issued for a new residential home, each individual or entity that supplied and delivered the concrete for the foundation for the home shall provide written evidence to the municipal building inspector that the concrete has been tested by a licensed laboratory and that the results show no evidence of the mineral pyrrhotite in the concrete, and that the State Bond Commission be empowered to authorize the issuance of bonds of the state in accordance with section 3-20 of the general statutes, in principal amounts not exceeding in the aggregate thirty-five million dollars, the proceeds of which shall be used by the Department of Consumer Protection for the purpose of establishing a fund to be distributed to homeowners with crumbling foundations caused by concrete tainted with pyrrhotite mineral compounds, which distribution to an applicant shall not exceed the lesser of the actual cost of repair or the sum of seventy-five thousand dollars, and which amount shall not exceed fifty thousand dollars in grants and twenty-five thousand dollars in loans, at an interest rate not to exceed the then prime rate charged by the Federal Reserve Bank of the United States and a repayment term of fifteen years. The Department of Consumer Protection shall establish the criteria for proving contaminated concrete caused the crumbling foundation and the rules for distribution of the grants and loans. The state shall be subrogated to the rights of the homeowner applicant to pursue legal action to recover the value of such grants and loans from any parties found negligent in the supply of contaminated concrete and insurers that are liable under homeowners insurance coverage for such damages to the premises and insurers providing liability insurance to any party found liable or negligent. Any monies recovered by the state for any awards and loan repayments shall be deposited into the fund to replenish it, except that ten per cent of recovered monies shall be turned over to the state to help cover costs for administration of the fund.
Statement of Purpose:
To assist homeowners with crumbling foundations.