Resources for Homeowners
Federal Tax Relief
I have worked for several years to secure federal tax relief from the IRS for homeowners with crumbling foundations.
If you are a homeowner affected by crumbling foundations, and who has made repairs to your home foundation, you may be eligible for a casualty loss deduction from the IRS. The IRS has published two “Revenue Procedures” on taking a crumbling foundations casualty loss deduction.
If you have made a repair to your home’s foundation and are eligible for the casualty loss deduction, you may also be eligible to “carry back” or “carry forward” that loss. Specifically, you may be eligible for federal tax relief for up to twenty years, depending on when your repair was made and the amount spent on your repairs. To this end, with my urging, the IRS has issued a clarification on taking a “Net Operating Loss”, spreading your casualty loss over many years – a win for average homeowners.
The first Revenue Procedure published by the IRS is available at: https://www.irs.gov/pub/irs-drop/rp-17-60.pdf.
The second Revenue Procedure is available at: https://www.irs.gov/pub/irs-drop/rp-18-14.pdf
To read the “Net Operating Loss” clarification from the IRS, click here: https://courtney.house.gov/sites/courtney.house.gov/files/IRS%20Letter.pdf
To view the IRS webinar on the casualty loss deduction and net operating losses due to crumbling foundations, click here:
I would highly recommend that you consult with a tax preparer to determine if you are eligible for the deduction or the net operating loss.
U.S. Department Of Agriculture
In recent weeks I have also received notification that the U.S. Department of Agriculture (USDA) is willing to extend a low-interest loan program to help USDA mortgage holders an opportunity to obtain resources for home repairs. I am expecting written notification shortly and will post that to this page once it becomes available.
Captive Insurance Company
As a result of funding promised by the State, state legislators, municipal officials, and private sector leaders have established the Connecticut Foundations Solutions Indemnity Company, or a "captive" insurance company. My staff and I continue to be in close communication with Michael Maglaras, the Superintendent of the Captive Insurance Company, and am glad that this company is now operational, allowing homeowners to apply for funding for foundation repairs, given proof of pyrrhotite in their foundations, among other criteria. The State has allocated $20 million in bonding for the next five years to the Captive, with another $9 million to be raised through a $12 annual surcharge on homeowners' insurance policies.
To visit the Connecticut Foundations Solutions Indemnity Company’s website and apply for relief through their portal, click here: https://crumblingfoundations.org/.
For more information on legislation on the State level for crumbling foundations, please visit the Connecticut Department of Housing's crumbling foundations page at https://www.ct.gov/doh/cwp/view.asp?a=4513&Q=599270&PM=1.
The Capitol Region Council of Governments (CRCOG) and the State of Connecticut continue operate a foundation testing reimbursement program, allowing eligible homeowners to receive a 100% reimbursement, up to $400, from a licensed engineer for visual testing. To receive this funding, the home must have been built after 1983 and must have been built within a 20-mile radius of the location of J.J. Mottes Concrete Company in Stafford Springs. In addition, homeowners are eligible for a 50% testing reimbursement, up to $2,000, for core sample testing.
For more information, visit https://foundationtesting.org/.
CRCOG has a list of qualified engineers, available at: http://crcog.org/concrete-vendors/.
State Department Of Consumer Protection
To submit a complaint to the State Department of Consumer Protection, please visit https://portal.ct.gov/dcp/Trade-Practices-Division/Deteriorating-Concrete-Foundations. For additional information or questions, contact the Connecticut Department of Consumer Protection at 1-800-842-2649 or email email@example.com. The Department of Consumer Protection has also issued a warning to homeowners to be wary of scams to repair or replace faulty concrete. I urge consumers to take precautions before making any payments or signing contracts. Click here to read the Connecticut Department of Consumer Protection's brochure for homeowners
Reassessment: The State of Connecticut passed Public Act No. 16-45 in May of 2016, which allows Connecticut residents with crumbling foundations to request a reassessment of their home's value from a licensed engineer. Call your town assessor for assistance with this process. Click here to read the law.
Some municipalities in the affected region have decided to waive local building and permitting fees associated with construction and repairs to homes with crumbling foundations. Call your town officials for further information on your town’s policies.
More on Resources for Homeowners
Today, the Connecticut Foundation Solutions Indemnity Company, Inc. (CFSIC), also known as “the captive insurance company,” released the following announcement following the Internal Revenue Service’s decision to designation CFSIC as a non-profit 501(c)3 organization. The full press release from the captive insurance company and CSFIC Superintendent Michael Maglaras is included below.
NORWICH, CT – Congressman Joe Courtney announced the approval of $480,000 in federal Community Development Block Grant funds to support testing of crumbling foundations in Ellington, Stafford, and Vernon. The funding was requested by the three towns in a joint application last year as part of Connecticut’s Small Cities Program run by the state Department of Housing, which distributes the state’s portion of federal CDBG funds it receives annually.