THERE'S A GROWING PROBLEM IN CONNECTICUT AND WESTERN
MASSACHUSETTS. HOMEOWNERS HAVE BEEN HIT WITH AN
UNFORESEEABLE EXPENSE AFTER LEARNING A THE FOUNDATIONS OF
THEIR HOMES ARE CRUMBLING. THE FAULTY FOUNDATIONS ARE DUE
TO TAINTED CONCRETE SOLD FROM A QUARRY IN CONNECTICUT WHICH HAS
NOW GONE OUT OF BUSINESS. THE REPAIRS ARE IN THE HUNDREDS
OF THOUSANDS OF DOLLARS. AND IT'S A NIGHTMARE FOR
HOMEOWNERS. SHE SAT DOWN WITH A STATE
SENATOR TO LEARN MORE ABOUT THE PROBLEM.
>> SOME CONSTITUENTS FROM OUR COMMUNITY IN WESTERN MASS HAVE
REACHED OUT TO US BECAUSE APPARENTLY A QUARRY IN
CONNECTICUT WAS PRODUCING A SUBSTANCE CALLED PYRITE, A VERY
RARE SUBSTANCE THAT WHEN MIXED WITH MOISTURE CREATES A CRACKING
AND DEGRADATION OF CONCRETE IN BASEMENT FOUNDATIONS.
WHAT WE'VE SEEN HAPPEN IS THERE HAVE BEEN SOME HOMES, IN
PARTICULAR CUSTOM MADE CONSTRUCTION HOMES THAT WERE
MADE USUALLY BETWEEN 1980 AND 2000 THAT USED THIS CONCRETE
FROM THIS VERY SPECIFIC QUARRY, HAVE HAD THIS CRACKING DEVELOP
IN THEIR FOUNDATIONS. AND IT'S A POTENTIALLY
DEVASTATING ISSUE, BECAUSE YOU NEED TO REPLACE THE FOUNDATION
IN ORDER TO MAKE SURE THE CONCRETE IS SAFE.
SO THAT MEANS PUTTING THE HOUSE UP ON STILTS, EX-KA RIGHTING OUT
THE CONCRETE, REPOURING A NEW FOUND DAYS AND PUTTING THE HOUSE
BACK DOWN. SO IT'S AN ITEM THAT IS A
SUBSTANTIAL CONCERN, AND THE QUARRY ITSELF IS LOCATED IN
CONNECTICUT. THE BUSINESS THAT RAN THAT
QUARRY IS NOW GONE AND CLOSED, OF COURSE.
BUT WE SAW THIS DEVELOPING IN CONNECTICUT OVER THE LAST
SEVERAL YEARS. HUNDREDS, EVEN THOUSANDS OF
PEOPLE IN CONNECTICUT HAVE BEEN IMPACTED.
UNFORTUNATELY IT DOES LOOK LIKE COMMUNITIES ALONG THE
CONNECTICUT BORDER HER IN WESTERN MASSACHUSETTS HAVE HAD
SOME IMPACT AS WELL. SO WE'RE STILL TRYING TO DETERMINE THE
SCOPE. >> YOU'RE TALKING HUNDREDS OF
THOUSANDS OF DOLLARS I'M SURE TO JACK UP A HOUSE.
>> 250 TO $300,000 IS A CONSERVATIVE ESTIMATE OF WHAT IT
COULD COST. >> THAT WOULD BREAK PEOPLE.
>> IT'S AWFUL. ALMOST NO ONE HAS THAT KIND OF
MONEY LYING AROUND, AND TO ADD INSULT TO INJURY HERE, TO ADD
EVEN MORE CONCERN, IF YOU TRY TO GO TO A BANK TO TAKE A LOAN OUT
ON THE VALUE OF THE HOME, YOU'RE ALL OF A SUDDEN IN A HOME THAT
HAS AN UNSTABLE FOUNDATION, SO IT VERY HARD TO GET A BANK LOAN.
THIS IS A NATURAL DISASTER, I FEEL.
THIS IS AN ISSUE THAT WAS OF NO FAULT TO THE HOMEOWNER.
THERE IS NO WAY YOU COULD HAVE TESTED FOR THIS ADDITIVE, NO ONE
EVEN KNEW THAT THIS ADDITIVE DID THIS.
AND HOMEOWNERS INSURANCE COMPANIES ARE TELLING US THAT
THEY WILL ONLY COVER FULL COLLAPSE OF A HOUSE.
THEY DON'T COVER PARTIAL COLLAPSE.
MEANING WHAT THEY'RE SAYING IS IF THE HOUSE COMPLETELY
COLLAPSES, IF YOU WAIT FOR THE HOUSE TO FALL ON ITSELF, THEY'LL
COVER THAT. BUT IF YOU PREVENT THAT FROM
HAPPENING BY FIXING THE CRACKS IN THE FOUNDATION NOW, THAT'S
NOT CONSIDERED SOMETHING THAT THEY COVER.
SO PEOPLE ARE ALARMED, PEOPLE ARE WORRIED ABOUT THIS.
WE'VE HAD REACH OUT FROM REALTORS WHO ARE CONCERNED ABOUT
THE IMPACT ON HOUSE PRICES. THE OTHER ELEMENT THAT NEEDS TO
BE CONSIDERED IS THESE ARE OFTEN VERY HIGH VALUE HOMES.
THEY'RE HOMES THAT PAY A LOT IN PROPERTY TAXES.
MOST OF THESE HOMES ARE LOCATED IN FAIRLY SMALL COMMUNITIES WITH
FAIRLY PROPERTY TAX DEPENDENT REVENUE FORMS FOR THEIR CITIES
AND TOWNS. I'VE HEARD FROM A LOT OF
SELECTMEN, A LOT TOWN CLERKS, TOWN AASSESSORS WHO ARE WORRIED
THAT ONCE THE WORD GETS OUT ABOUT THIS PROBLEM, WHEN HOMES
GET REASSESSED FOR PROPERTY TAXES, THOSE PROPERTY TAX
RECEIPTS ARE GOING TO PLUMMET. WHAT DOES THAT MEAN?
THAT MEANS LESS MONEY FOR TEACHERS, LESS MONEY FOR
FIREFIGHTERS, LESS MONEY FOR POLICE AND FOR ROAD AND PARK
CONSTRUCTION. SO THIS IS A VERY BIG ISSUE AND
WE REALLY NEED TO GET THE WORD OUT TO THE PUBLIC ABOUT WHAT A
TOUGH SPOT WE'RE IN. >> IS IT CLEAR IF IT'S JUST ONE
QUARRY THAT YOU'RE TALKING ABOUT
IS THERE POTENTIAL THAT THERE WERE OTHERS USING THE SAME
MATERIAL? >> THE ANSWER IS WE DON'T KNOW.
SO WE DON'T KNOW EVERYTHING, SO WE WANT TO BE CAREFUL ABOUT HOW
FAR AHEAD YOU GET ON THIS. WE DO KNOW THAT THERE IS ONE
QUARRY OWNED AND OPERATED BY A COMPANY CALLED J. J.MODUS BASED
IN CONNECTICUT, THAT'S WHERE THE HOMES AFFECTED IN CONNECTICUT
WERE IMPACTED, AND THAT'S WHERE WE'VE BEEN ABLE TO TRACE BACK
THE HOMES IN MASSACHUSETTS THAT HAVE BEEN IMPACTED. SO FOLKS
WHO ARE CONCERNED ABOUT IN SHOULD GO BACK TO THEIR RECORDS
FROM HOME CONSTRUCTION AND LOOK UP WHO FLIED CONCRETE, THEY
SHOULD MAYBE GO BACK AND TALK TO THEIR GENERAL CONTRACTORS ABOUT
WHO WAS INVOLVED IN SUPPLYING THE CONCRETE FOR THEIR HOMES.
OF COURSE THIS IS NOT SOMETHING MOST PEOPLE PAY A LOT OF
ATTENTION TO OR KEEP CAREFUL RECORDS ON.
BUT IT'S A VERY CONCERNING SITUATION.
PEOPLE WHOSE HOMES MIGHT FIT THIS PROFILE SHOULD GET THE
TEST. YOU HAVE TO DO A CONCRETE CORE
TEST. IT'S NOT AN EASY TEST.
THE OTHER THING ABOUT THIS IS IT'S NOT VIS TOIBL THE NAKED
EYE. A LOT OF --
IT'S NOT VISIBLE TO THE NAKED EYE.
IF YOU HAVE SHEETROCK, WALLPAPER, PAINT OVER THE
CONCRETE, YOU MIGHT NOT SEE THE DEGRADATION OF THE FOUNDATION.
SO IF YOU HAVE A HOME THAT FITS THIS ROUGH DESCRIPTION, IF YOUR
HOME WAS CONSTRUCTED BETWEEN 1980 AND 2000 OR SO AND USED
THIS CONCRETE FROM THIS QUARRY, OR MIGHT HAVE, I WOULD REALLY
RECOMMEND THAT PEOPLE GET THE TEST DONE.
BECAUSE THE OTHER THING WE'VE SEEN IS A LOT OF PEOPLE ARE
AFRAID TO KNOW. THEY DON'T WANT TO KNOW.
AND YOU CAN APPRECIATE HOW THEY FEEL THAT WAY, BECAUSE AGAIN YOU
MIGHT NOT EVEN REALIZE THAT YOU'RE IN A HOME WITH THIS KIND
OF PROBLEM. THEN ONCE YOU DO DISCOVER IT,
IT'S DEVASTATING BECAUSE YOU'RE TALKING ABOUT HUNDREDS OF
THOUSANDS OF DOLLARS. BANKS WILL RUNAWAY FROM IT.
THIS IS ANOTHER EXAMPLE, YOU KNOW, WHEN PEOPLE TALK ABOUT A
SYSTEM BEING RIGGED, WHEN PEOPLE TALK ABOUT A SYSTEM BEING
STACKED AGAINST ORDINARY PEOPLE AGAINST ORDINARY FAMILIES,
HERE'S A GREAT EXAMPLE, RIGHT. SOMEONE LIVES IN A HOUSE, THEY
DO EVERYTHING THEY'RE SUPPOSED TO, THEY GET HOMEOWNERS
INSURANCE, THEY PAY THEIR PROPERTY TAXES, THEY MAINTAIN
THEIR PROPERTY, THEY ARE RESPONSIBLE CITIZENS DOING
EVERYTHING THEY'RE SUPPOSED TO DO.
ALL OF A SUDDEN THEY FIND OUT BECAUSE OF NOTHING THEY DID,
THEY HAVE THIS RANDOM CHEMICAL THAT GOT ADDED INTO THEIR
CONCRETE 25 YEARS AGO, AND ALL OF A SUDDEN THERE'S NO ONE THERE
TO HELP THEM. THE INSURANCE COMPANIES ARE
RUNNING THE OTHER WAY. DIVISION OF INSURANCE CAN'T DO
ANYTHING BECAUSE OF THE RIDERS THAT THEY SAY WERE PLACED ON THE
INSURANCE CONTRACTS. THE CONTRACTORS ARE RUNNING THE
OTHER DIRECTION. THE CONCRETE COMPANY IS OUT OF
BUSINESS. EVERYONE IS GOING LIKE THIS.
AND I THINK THAT'S VERY SAD. AND I THINK THAT THAT'S A KIND
OF BROADER COMMENTARY FRANKLY ON WHERE WE'RE AT IN THIS ECONOMY.