The Homeowners' Recovery Fund (hereinafter “Fund”) is available to aggrieved homeowners who have sustained a loss due to the actions of a licensed residential home builder. Pursuant to Ala. Admin. Code r. 465-X-7-.01, a homeowner cannot make a claim against the Fund based on the actions of a licensee holding a residential roofers license. The maximum payment from the Fund to a homeowner based on a single transaction is $20,000. Sixty thousand dollars can be paid based on the actions of a single licensee.
Payment can only be made from the Fund after a valid judgment, excluding a consent judgment, is obtained from a court of competent jurisdiction. Payment can only be made based on actual economic damages. No payment can be made based on pain and suffering, mental anguish, loss of consortium, interest, attorney’s fees, or court cost.
To make a claim against the Fund:
- Within 10-days of filing a civil complaint (lawsuit) send the Board a letter by certified mail stating that you’re making a claim against the Fund. Include a copy of the civil complaint. Do not name the Board as a party.
- Submit consumer complaint within six years of the date of substantial completion of construction or within six years of the date the original homeowner took possession of the residence. Click here for consumer complaint procedure.
IMPORTANT: Filing a consumer complaint with the Board alone is not enough to be eligible for a recovery fund payment. A homeowner must file a civil action (lawsuit) against the licensed residential home builder. If you have not done so, the Board encourages homeowners to contact a private practice attorney to answer questions and advise you regarding a civil action and the recovery fund process.
For additional information about the Fund, see frequently asked questions.