Amendment ID: S2834-1.1-R1

Redraft Further Amendment 1.1

Meaningfully Addressing Crumbling Concrete

Ms. Rausch, Ms. Kennedy, Messrs. Eldridge and Oliveira and Ms. Moran move that the amendment be amended by striking out the amendment language in its entirety and inserting in place thereof the following:-

The proposed new text shall be amended by inserting in section 2, in line 411, the following item:-

7004-0077For state financial assistance to residents of the commonwealth whose residential real property has been negatively impacted by the presence of pyrite or pyrrhotite in concrete foundations; provided, that 100 per cent of the funds authorized by this item shall, upon allocation, be transferred to the crumbling concrete assistance fund established in section 2QQQQQQ of chapter 29 of the General Laws......................................................$50,000,000;

and by inserting the following new sections:-

SECTION _. Section 16G ½ of chapter 6A of the General Laws is hereby amended by inserting at the end thereof the following new paragraph:-

(d) There shall also be within the executive office a crumbling concrete relief agency to provide assistance to owners of residential real property with concrete foundations that have deteriorated due to the presence of pyrite or pyrrhotite. The agency shall be overseen by an executive director who reports to the undersecretary. The executive director shall have the authority to hire staff sufficient to meet the requirements and obligations of the agency. The agency shall, without limitation: (a) provide information to the public regarding structurally sound concrete and the dangers of pyrite and pyrrhotite; (b) publish a list of quarries licensed pursuant to section 79 of chapter 6C and a searchable electronic database of all quarries applying for such licensure, including aggregate and other testing results; and (c) administer the crumbling concrete assistance fund established in section 2QQQQQQ of chapter 29, including establishing eligibility requirements and implementing a process for impacted homeowners to secure foundation repair and replacement funding from the fund. A decision on a request from an impacted homeowner for such financial assistance shall be provided in writing to the homeowner and shall include the information relied upon and the basis for such decision, including the relevant eligibility and underwriting criteria. An impacted homeowner may request a review of any decision by the agency relating to such homeowner not later than 30 days after the decision. A final determination on such a request for review shall be provided in writing to the homeowner not later than 30 days after receipt of the homeowner’s request, unless the homeowner agrees to an extension.

SECTION _. Section 79 of chapter 6C of the General Laws, as inserted by section 1 of chapter 56 of the acts of 2023, is hereby amended by inserting the following paragraph:-

(k) A person owning or operating a quarry without a license as required by this section shall be: (i) liable in perpetuity for property damage resulting from or related to the use or sale of such aggregate product; and (ii) subject to a civil penalty in an amount to be determined by the commissioner, not to exceed $500,000 in each instance. Amounts collected under this paragraph shall be deposited into the crumbling concrete assistance fund established in section 2QQQQQQ of chapter 29.

SECTION _. Section 97 of chapter 13 of the General Laws is hereby amended by inserting at the end thereof the following words:- Said board shall require all licensed home inspectors who perform an inspection on a residential home for the purpose of a sale or lease of the home to provide the potential buyer or lessee information regarding the possible presence of pyrite or pyrrhotite in the concrete foundation, prepared by the crumbling concrete relief agency established by section 16G ½ of chapter 6A.

SECTION _. Chapter 29 of the General Laws is hereby amended by inserting after section 2QQQQQ the following section:-

Section 2QQQQQQ. (a) There shall be a crumbling concrete assistance fund. The fund shall be expended to provide financial assistance to owners of residential real properties for the repair or replacement of concrete foundations of such properties that have deteriorated due to the presence of pyrite or pyrrhotite and to minimize any negative economic impacts on municipalities in which such properties are located. The crumbling concrete relief agency established by section 16G ½ of chapter 6A shall administer the fund and shall make expenditures from the fund, without further appropriation. The agency shall seek to maximize available federal reimbursements for money spent from the fund.

The fund shall consist of: (i) revenue from appropriations or other money authorized by the general court and specifically designated to be credited to the fund; (ii) interest earned on such revenues; (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; (iv) federal funds paid to the commonwealth under paragraph (b) of this section; and (v) monies paid to the commonwealth under paragraph (k) of section 79 of chapter 6C. 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.

(b) The crumbling concrete relief agency 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 fund established by this section.

(c) Amounts issued from the fund to impacted homeowners for the repair or replacement of concrete foundations that have deteriorated due to the presence of pyrrhotite shall be exempt from taxation under chapter 62.

(d) Annually not later than June 1, the crumbling concrete relief agency shall publish on its website and submit to the senate and house committees on ways and means, the joint committee on environment and natural resources and the clerks of the house and senate a report on the activities of the fund from the previous calendar year.

(e) The crumbling concrete relief agency shall promulgate regulations or issue other guidance for the expenditure of the funds under this section.

SECTION _. Chapter 59 of the General Laws is hereby amended by inserting after section 59A the following section:-

Section 59B. (a) Notwithstanding any general or special law to the contrary, an owner of real property in the commonwealth may apply for a residential property tax abatement due to the presence of pyrite or pyrrhotite minerals in the foundation. The presence of pyrite or pyrrhotite shall be established by: (i) not less than 2 core samples from the foundation proving the presence of pyrite or pyrrhotite; or (ii) a certified visual inspection conducted by a professional civil engineer. The owner shall also provide a certified estimate of the cost to repair or replace the foundation. Upon receipt of such documentation, a municipal board of assessors or equivalent entity shall determine a value per square foot of the foundation and percentage of functional obsolescence. If an abatement is sought on multiple properties within a municipality the board of assessors may determine a general value per square foot of foundation and percentage of functional obsolescence to be used for all properties within said municipality. The board of assessors shall use the value and percentage to calculate the reduction in assessment for each affected property. Such reductions shall be effective until the foundation is repaired or replaced.

SECTION _. Chapter 143 of the General Laws is hereby amended by adding the following section:-

Section 110. Notwithstanding any general or special law to the contrary, fees for building permits for work associated with crumbling concrete foundations replacement shall be waived. In order to qualify for the waiver of fees, the applicant shall provide written documentation showing that pyrite or pyrrhotite minerals are present in the foundation to be replaced. Nothing in this section shall waive any of the permit application requirements, including, but not limited to, holding public hearings, associated with a permit application. A determination to waive fees is not a guarantee of the issuance of a permit.