Homeowners Recovery Fund
Is there any kind of funding for homeowners?
The Homeowners’ Recovery Fund is available for homeowners who have hired a licensed builder to build a residence or perform work on an existing residence for which a license is required. If the homeowners get a judgment against the licensed builder, but are unable to collect on the judgment, the homeowners can collect up to $20,000.00 toward the amount of the judgment comprising actual economic damages from the Homeowner’s Recovery Fund.
How do you access the fund?
The homeowner must notify the Board by certified mail within 10 days of filing a civil complaint against the licensed builder and provide the Board with a copy of the complaint filed in court. Upon receipt of notification from the homeowner, the Board will provide the homeowner with a copy of the Homeowner’s Recovery Fund Regulations. The Homeowner’s Recovery Fund Regulations set forth the procedure for making a claim against the Homeowner’s Recovery Fund.
If the builder is not licensed by the Board, can the homeowner collect from the Homeowner’s Recovery Fund?
No. The builder must be licensed by the Board at the time the work was undertaken, and at the time the contract was entered into.
Are the monies that I received from the Homeowner’s Recovery Fund taxable?
The Board cannot determine whether the monies you receive from the Homeowner’s Recovery Fund are taxable; please consult with your attorney to make that determination.