Skip to Main Content

The site navigation utilizes arrow, enter, escape, and space bar key commands. Left and right arrows move across top level links and expand / close menus in sub levels. Up and Down arrows will open main level menus and toggle through sub tier links. Enter and space open menus and escape closes them as well. Tab will move on to the next part of the site rather than go through menu items.


Collapsing Foundation Loan-Frequently Asked Questions


  • What is the Supplemental Collapsing Foundation Loan Program?

    The loan program was established by the state legislature in 2019 to help the owners of certain residential buildings repair or replace concrete foundations that have deteriorated due to the presence of the mineral pyrrhotite.  The loan program serves as a supplement to the financial assistance that is available from a separate State funded program administered by the Connecticut Foundations Solutions Indemnity Company Inc. (“CFSIC”).  Proceeds from the loans can be used to finance certain “eligible repair expenses” (discussed below) that might not be funded in whole or part by CFSIC.  Loans are to be issued to eligible borrowers by financial institutions in the state who have signed up with CHFA to participate in the program.  

  • Who is eligible to apply for the loan program?

    Any homeowner of a residential building in the state who has been approved for financial assistance by CFSIC, as evidenced by the receipt of a fully executed participation agreement from CFSIC. 

    More information about the CFSIC and its work may be found at:  (Toll-free 1-844-763-1207 )  

  • How much in loan proceeds may I receive from the program?

    Participating financial institutions may loan up to $75,000 to each eligible borrower.    

  • What types of repair expenses are eligible?

    Approved borrowers may only use loan proceeds to pay for certain “eligible repair expenses”.  Those expenses are limited to repairs that are necessary to (i) complete the repair or replacement of the foundation, or (ii) restore the functionality and appearance of the property to the extent that the functionality and appearance were compromised by the deterioration of the foundation or the demolition or construction process.  As long as the repair expense qualifies under this definition, a homeowner may, for example, use loan proceeds to pay for the repair or replacement of wall framing, drywall, paint and other wall finishes, porches or decks, gutters, landscaping, outbuildings or sheds and swimming pools.  Homeowners may not use loan proceeds to pay for any costs associated with significant upgrades to the property that do not otherwise constitute “eligible repair expenses”.

  • What are some of the loan terms?

    Each loan will be secured by a mortgage on the property being repaired.  The loan will carry a fixed rate of interest that is determined by reference to an external index published by the Federal Home Loan Bank of Boston.  You can ask the participating lender for more information about this index and available rates.  The loan must be repaid by the borrower over a term not to exceed 20 years, as determined by the lender.  All loan applications are subject to approval based on the lender’s underwriting policies and standards.

  • How do I apply?

    If you are interested in applying for a loan, you should contact one of the participating financial institutions.  

  • How long does the Supplemental Loan Program run?

    The total amount of loans available under the Supplemental Program is capped at $20 million.  Participation by lenders is voluntary and lenders may limit loan approvals based on program availability and other factors.


Back to Program Details




© 2024 Connecticut Housing Finance Authority. All Rights Reserved