Legislators Tour Home Affected by Pyrrhotite Issue

WALES (April 7, 2021) - U.S Congressman Richard E. Neal (MA-01) joined State Senator Anne Gobi (D-Spencer) and State Representative Brian Ashe (D-East Longmeadow), on Tuesday in Wales for a tour of two area homes where the foundation is crumbling due to the presence of pyrrhotite in the concrete aggregate. Pyrrhotite is a rare iron-sulfide mineral that expands, deteriorates, and cracks when exposed to water and oxygen until it inevitably fails. It is estimated that as many as 1500 homes or more in Massachusetts may have had their foundations poured with the defective material.

Congressman Neal, Chairman of the House Committee on Ways and Means, had this to say about the site visits Tuesday, "Tens of thousands of homeowners in Connecticut and Massachusetts have crumbling foundations through no fault of their own," said Congressman Neal. "I am thankful to Senator Gobi and Representative Ashe for their leadership on the state level, and I continue to work with my colleagues on the federal level to provide relief to those who have compromised foundations. Last year in the House, we were able to pass two very important provisions in H.R. 2 that would provide relief through Community Development Block Grant funding and a federal casualty loss tax deduction. While that legislation was stalled in the Senate, my colleagues in Connecticut - Congressman Joe Courtney and Congressman John Larson - and I continue to be supportive of a fix and we are working together to ensure it is ready for inclusion in upcoming legislation."

Gobi and Ashe served as co-chairs on the legislative Special Commission assigned to study the issue last session. Gobi had this to say on the visit and legislation filed, "I thank the homeowners who were so willing to share their story with us and to allow us to see the damage to their foundations. We know that State and Federal assistance is needed and having Congressman Neal join us and knowing his work on the issue and continuing support is so necessary and appreciated."

"To have Chairman Neal with us today as we visited the Hamer's and the Milanese's in Wales, speaks volumes as to the depth of the issue with crumbling foundations in western and central Massachusetts," commented Representative Ashe. "Working in unison with Chairman Neal, Senator Gobi, myself and all of the local communities involved is paramount in educating residents and assisting those in need. There is a long road ahead, but we’re making progress as we continue to learn from our neighbors in Connecticut and as more homeowners here come forward".

The visit comes in the wake of Senator Gobi filing omnibus legislation aimed at addressing the issue in Massachusetts this session. The bill filed by the Senator, SD. 1688, An Act Relative to Crumbling Concrete Foundations, targets a number of the primary concerns raised by the Special Commission. These include establishing tax abatements for affected homeowners, requiring the disclosure of foundation repairs for those looking to sell their home, and creating new standards for quarry operators and concrete producers. The pyrrhotite issue has been studied extensively and addressed by the Connecticut legislature, which moved to develop a captive insurance company funded by bonding and a surcharge on homeowners' insurance policies in order to help the thousands of residents that have been affected. In Massachusetts the full scope of this issue is still unknown.

A reimbursement program remains in place for costs associated with visual and core testing of residential home foundations, having been secured by Senator Gobi in the FY19 budget debate and additional funds added last session. That program allows homeowners to be reimbursed at a rate of 100% for visual testing conducted by a licensed professional engineer up to $400, and a rate of 75% for core sample testing up to $5,000.

While the presence of pyrrhotite indicates the potential for concrete deterioration, its existence alone does not necessarily cause it. At this time there is no minimum level of pyrrhotite that is deemed acceptable for use, and homes with small amount of pyrrhotite (less than 0.3%) can still experience crumbling foundations. The cracking starts small and may take more than 10 years to over 30 years to appear. As the concrete deteriorates it often becomes structurally unsound, and the damage is irreversible. The only permanent solution at this time to fully replace the impacted foundation with a new foundation that does not contain pyrrhotite.

For more information on the legislation or pyrrhotite issue, please contact Senator Gobi’s office by email at Anne.Gobi@MASenate.gov.

Audit Reveals Deficiencies in Case Management and Annual Reporting at Division of Administrative Law Appeals

Agency says understaffing forced them to adjust priorities

Boston, MA (April 7, 2021) - In a statement accompanying an audit released today, State Auditor Suzanne M. Bump observed that the Division of Administrative Law Appeals (DALA) lacks the staffing necessary to completely fulfill its responsibilities in a timely manner. Through its General Jurisdiction Unit (GJU) and its Bureau of Special Education Appeals (BSEA), DALA conducts hearings and adjudicates matters for certain state agencies and provides dispute resolution for individualized education program participants and special education services.

DALA's last audit in 2015, revealed deficiencies in the agency's case management and annual reporting. Case management and other issues still persist at the agency. Most problematically, there is a lack of controls related to case hearing documentation, leading to possible delays in processing disputes and backlogs of cases awaiting action. In some cases, BSEA hearing officers did not properly document case postponements or requests for hearing extensions.

The current audit also showed DALA lacked an internal control plan that complied with guidelines issued by the state Comptroller. In response to this finding, DALA pointed to a lack of available time and personnel which forced the agency to prioritize maintaining operations over developing these controls and procedures.

The audit determined DALA submitted annual reports to the legislature that were missing required information, including details for total hearings, case processing time, and information on closed cases. The audit notes that without this information, the Legislature cannot properly evaluate DALA’s case management process.

"Although the Division of Administrative Law Appeals has made progress in some areas since our last audit, it’s clear the agency still has a way to go to improve its timeliness in handling matters that come before it and in meeting its reporting requirements. While DALA bears the responsibility for these shortcomings and should enhance their own internal procedures and staff training, it’s evident the agency would benefit from additional personnel," Bump said. "I commend DALA for taking these matters seriously and urge the agency and its secretariat, the Executive Office for Administration and Finance, to work with the Legislature to secure an adequate budget."

DALA was established in 1974 under the purview of the Executive Office for Administration and Finance (EOAF). The agency operates under the direction of a chief administrative magistrate, who was appointed by the Secretary of EOAF with the approval of the Governor. Its GJU unit conducts adjudication for state agencies including, the Contributory Retirement Appeal Board, the Board of Registration in Medicine, the Department of Public Health, and the Fair Labor Division of the Office of the Attorney General. In fiscal year 2020, DALA received $1,220,257 in state appropriations. As of 2019, it had 30 total employees, including 10 for GJU and 20 for BSEA.

The full audit report is available here.