Amendment #16 to H4707

Crumbling Concrete Assistance Fund

Mr. Ashe of Longmeadow moves to amend the bill by adding the following 3 sections:

SECTION XX.  Chapter 175 of the General Laws is hereby amended by adding the following section:-

Section 231.  (a)(1) For the public purposes of remediation and rebuilding of home foundations affected by pyrite or pyrrhotite within Massachusetts, the commissioner shall make an assessment and determination for the public purpose of forming or providing for: (i) a Massachusetts licensed insurance company; or (ii) an interstate security arrangement with the state of Connecticut pursuant to subdivision (10) of subsection (a) of section 38a-91rr of the Connecticut General Statutes for the purposes of establishing a protected cell as defined in section 28a-91aa of the Connecticut General Statutes.

(2) There shall be established and set up on the books of the commonwealth a separate fund known as the Crumbling Concrete Assistance Fund. The fund shall be expended to provide financial assistance to owners of residential real property for the repair or replacement of concrete foundations of such property that have deteriorated due to the presence of pyrite or pyrrhotite and to minimize any negative economic impacts on municipalities in which such property is located. The commissioner shall administer the fund and shall make expenditures from the fund, without further appropriation. The commissioner shall seek to maximize available federal reimbursements for money spent from the fund.

(b) The fund shall be credited with: (i) appropriations or other money authorized or transferred by the general court and specifically designated to be credited to the fund; (ii) interest earned on the assets of the fund; (iii) funds from public and private sources including, but not limited to, gifts, grants, donations and settlements received by the commonwealth that are specifically designated to be credited to the fund; and (iv) federal funds paid to the commonwealth under subsection (c) of this section. Any bond proceeds deposited into the fund shall be kept separate from any and all other funds deposited into the fund. Any balance in the fund at the close of a fiscal year shall be available for expenditure in subsequent fiscal years and shall not be transferred to any other fund or revert to the General Fund.

(c) The commissioner may apply for, receive and deposit any federal funds including, but not limited to, funds made available by the United States Department of Housing and Urban Development Section 108 Loan Guarantee Program, into the Crumbling Concrete Assistance Fund in paragraph (2) of subsection (a) of this section.

(d) Amounts issued from the fund to impacted owners of residential real property for the repair or replacement of concrete foundations that have deteriorated due to the presence of pyrite or pyrrhotite shall be exempt from taxation under chapter 62.

(e) The commissioner shall reimburse the owner of a residential real property who presents evidence that said owner has paid for and replaced their concrete foundation that deteriorated due to the presence of pyrite or pyrrhotite prior to the establishment of the Crumbling Concrete Assistance Fund in paragraph (2) of subsection (a) of this section, and that said evidence meets the relevant eligibility and underwriting criteria. The reimbursement shall be equal to the funding the owner would have received had they applied for financial assistance through the Crumbling Concrete Assistance Fund.

(f) Annually, not later than June 1, the commissioner shall file a report with the clerks of the senate and house of representatives, the house and senate committees on ways and means and the joint committee on environment, natural resources and agriculture on the activities of the fund from the previous calendar year.

SECTION XY. The comptroller shall transfer $100,000,000 from the General Fund to the Crumbling Concrete Assistance Fund established in paragraph (2) of subsection (a) of section 231 of chapter 175 of the General laws within 30 days of the effective date of this act.

SECTION XZ. On or before September 30, 2024, the commissioner of insurance shall make an assessment and determination pursuant to section 231 of chapter 175 of the General Laws for the formation of or provision for: (i) a Massachusetts licensed insurance company; or (ii) an interstate security arrangement with the state of Connecticut pursuant to subdivision (10) of subsection (a) of section 38a-91rr of the Connecticut General Statutes for the remediation and rebuilding of home foundations affected by pyrite or pyrrhotite. The commissioner of insurance shall file a report of the assessment and determination with the clerk of the house of representatives and the clerk of the senate, along with any recommendations for legislation for its implementation not later than September 30, 2024.

Additional co-sponsor(s) added to Amendment #16 to H4707

Crumbling Concrete Assistance Fund