Geoff Luxenberg

As a member and founder of the bipartisan Crumbling Foundations Caucus, I wanted to provide you an important update.

The cap on allowable construction costs will rise to $190,000 from $175,000 for stand-alone homes, and to $76,000 from $70,000 for condominium units, effective January 5, 2022.

Connecticut Foundation Solutions Indemnity Company (CFSIC) — the chartered and licensed captive insurer that assists the state with fair and equitable adjustment of homeowner claims resulting from the pyrrhotite-affected home foundations natural disaster — conducted research on the costs of materials and labor, in addition to difficulties with supply chain management, and decided to increase the current caps.

Since calculation of the cap is done by first using the linear and square footage factors, there also will be increases in those figures. Here are the new allowable costs:

• The maximum allowable cost calculation per linear foot of house foundation will rise to $777.
• The maximum square foot allowable costs for basement slab will move to $30.
• The maximum allowable cost per linear foot of garage foundation will go to $710.
• The maximum allowable costs per square foot of garage slab will increase to $13.

CFSIC currently permits special calculations for slab-on-grade construction that will change as well. For linear per foot foundation measurements, the maximum allowable cost factor will be $1,093 — up from $1,012 — with the square foot of slab-on-grade itself maximum allowable cost increasing to $31.

These changes will apply to any new construction proposals initially submitted to ESIS on or after January 5, 2022. The old cap applies to any construction proposals submitted between January 10, 2019, and January 5, 2022.

For additional information on these cap increases and what they mean for you, click here.