The superintendent of the new entity charged with distributing millions of dollars to Connecticut homeowners with crumbling foundations says he's within weeks of shutting down if state bonding isn't released.
Michael Maglaras told members of several legislative committees on Friday that the captive insurance company has been awaiting more than $19 million for two-and-a-half months. He says the money has been delayed due to long-running, "onerous" and "expensive" negotiations with the state's Department of Housing.
Maglaras hopes to begin distributing grants to some affected homeowners next month.
Maglaras says he recently learned the matter was transferred from the Department of Housing to the State Treasurer's Office, giving him hope the funds will finally be deposited into the account.
He's telling lawmakers, "let's fix it and make it work."
A spokesperson for the state Department of Housing released the following statement:
"It’s important to note that, to date, under Governor Malloy’s leadership, the state provided $5 million, and set-aside another $1 million from the federal government for a testing reimbursement program to help better understand the scope of this problem. With any disbursement of state funding, there are administrative processes which must occur before the funds are released. In this case, we continue to conduct our due diligence and expect that more funds will be released soon. No doubt, CFSIC will be an important tool to assist affected homeowners."