Regulatory change increases eligible claim payments from $20,000 to $30,000
To protect consumers, the Home Builders Licensure Board made changes to its regulations involving the Homeowners Recovery Fund. The regulatory change increases the amount a homeowner may be eligible to receive from $20,000 to $30,000 toward satisfaction of a judgment against a licensed homebuilder.
The changes are a result of the Board’s own review and that of the Joint Legislative Sunset Committee led by Rep. Margie Wilcox (Mobile) and Sen. Will Barfoot (Pike Road) to make sure the Board continues its statutory purpose as a consumer protection agency.
“The Home Builders Licensure Board regulates the residential construction industry in Alabama to protect consumers and to promote that only qualified and well-trained people are in the industry,” said Executive Director Chip Carden. “I appreciate the leadership of Representative Wilcox, Senator Barfoot, and the entire Sunset Committee working with the Board during the sunset process to make these changes. The additional $10,000.00 is an obvious benefit to consumers.”
The Homeowners Recovery Fund was established by legislative act in 1992. Licensees pay into the fund annually. Homeowners who have been harmed by a licensee and who file a lawsuit against a licensee may make a claim against the fund and may be eligible for payment from the fund if they receive a judgment against the licensee. The Board is responsible for managing the fund and has authority to set payment amounts through regulatory change. The new regulations become effective March 17, 2025.
For more information regarding the Homeowners Recovery Fund, visit hblb.alabama.gov or contact the Board at 800-304-0853.