File photo

Homeowners with crumbling foundations now have a new source of help to replace decking, plumbing and other items not covered by the state’s crumbling foundation insurance company.

Gov. Ned Lamont announced Friday that a new loan program administered by the Connecticut Housing Finance Authority has been launched in partnership with several state lenders.

Thousands of homes in Connecticut and and unknown number in Massachusetts are affected by the problem, which stems from contaminated gravel sold by a now-closed Connecticut quarry. So far, Connecticut has seen $100 million in claims filed with a captive insurance company set up to help homeowners fix their properties, and more claims are likely in the offing.

Created by a new law Lamont signed this summer, the Supplemental Collapsing Foundation Loan Program will provide supplemental assistance to homeowners who have already been approved to receive financial assistance by the Connecticut Foundation Solutions Indemnity Company Inc. (CFSIC), the captive insurance company that was created and is funded by the state. While CFSIC funding can only be used for the costs of replacing the actual concrete foundations, this loan program is intended to cover those repairs that might otherwise not be funded in whole or in part through that assistance, such as the replacement of decking, heating, and plumbing.

“We created this loan program to fill the gap in necessary costs needed by families who are literally watching as the foundations of their homes crumble before their eyes,” Lamont said in a statement. “While the state continues to do what we can to provide assistance to those homeowners who are facing this problem, we are grateful for the partnership of these participating financial institutions, the Connecticut Bankers Association, the Connecticut Housing Finance Authority, and others who helped make this program a reality. We remain committed to working with our federal partners to address the repercussions of this natural disaster so that these homeowners can get some help rebuilding their homes and their lives.”

To apply, interested homeowners who have already been approved to receive financial assistance by CFSIC should contact one of the participating financial institutions that are listed on CHFA’s website. Participating financial institutions may loan up to $75,000 to each eligible borrower. The total amount of loans available under the program is capped at $20 million.

“We’re delighted that the CHFA loan program has officially launched, and our participating banks look forward to helping homeowners impacted by crumbling foundations,” Connecticut Bankers Association President and CEO Tom Mongellow said in a statement. “By having this below-market gap financing vehicle available, homeowners can achieve an affordable solution for the complete repair of their foundation and house. We sincerely appreciate the efforts of all the stakeholders to make this program a reality.”