Changes to Florida Homeowners Construction Recovery Fund: What High School Students Need to Know

– The Florida Homeowners Construction Recovery Fund (Recovery Fund) was created to help Florida homeowners who have been financially harmed by licensed contractors.
– Homeowners seeking payment from the fund must be the owner of an owner-occupied residence, and the property must meet certain criteria.
– The homeowner must have a final judgment, arbitration award, or CILB final order against a licensed contractor directing them to pay restitution based on consumer harm caused by financial mismanagement, abandonment, unapproved contract overages, executing a false affidavit, or making false statements.
– The homeowner must make diligent efforts to collect on the final judgment or arbitration award before filing a claim with the Recovery Fund.
– A homeowner has one year from the conclusion of any civil, criminal, or administrative action to file a claim, and the claim is limited to actual damages.
– Claims were previously limited to $50,000 per claim and only for certain types of contractors, but this is no longer the case. – Payments from the Recovery Fund to homeowners or claimants result in automatic license suspension for contractors.
– The contractor’s license will only be reinstated once the full amount plus interest is repaid to the homeowner or claimant.
– Governor Rick Scott signed House Bill 535, expanding the types of Division II license holders eligible for payments from the Recovery Fund.
– The maximum recovery against Division II contractors is $15,000 per claim, with an aggregate cap of $150,000 per licensee.
– Division II claims may be considered by the CILB beginning January 1, 2017, for contracts entered after July 1, 2016. 1. Starting July 1, 2016, all licensed contractors in Florida must include the Florida Homeowner Construction Recovery Fund Notice in their residential construction contracts.
2. Division II contractors need to update their residential construction agreements to include the required language about the Recovery Fund.
3. All old contract forms should be amended to reflect the new address of the Construction Industry Licensing Board.
4. Failure to include the required warning language in contracts can result in fines for the contractor, with the money being deposited into the Recovery Fund.
5. The Recovery Fund provides homeowners with a way to seek redress and relief from contractor misconduct through a specific process.

https://www.jimersonfirm.com/blog/2016/06/recent-changes-florida-homeowners/