– The Recovery Fund was created to provide relief for Florida homeowners who have been harmed by licensed Division I contractors.
– Claimants are eligible to seek recovery from the fund if they have exhausted the limits of any available bonds or insurance and have received a final judgment in a court of competent jurisdiction or an award in arbitration.
– The judgment, award, or restitution must be based upon a violation of specific statutes and committed by a licensee, and must specify the actual damages suffered as a consequence of the violation. 1. The claimant must have obtained a writ of execution and shown that the judgment debtor or licensee has no property to satisfy the judgment, or that the proceeds from the sale of their property were insufficient to satisfy the judgment.
2. If the claimant is unable to comply with the first requirement for a valid reason, they must have made all reasonable efforts to find the debtor’s property or assets and taken necessary actions to apply them to the judgment, but the amount realized was still insufficient.
3. The claimant must have made a diligent attempt to collect the restitution awarded by the board.
4. The claim for recovery must be made within 1 year after the conclusion of any civil, criminal, or administrative action or award in arbitration based on the act.
5. Any amounts recovered from the judgment debtor or from any other source must have been applied to the damages awarded by the court or the amount of restitution ordered by the board.
6. The claimant must not be someone who is precluded by the act from making a claim for recovery. 1. A claimant cannot make a claim for recovery from the recovery fund if they are the spouse of a judgment debtor or licensee, or have a business relationship with the licensee.
2. Any agreement or contract for repair, restoration, improvement, or construction to residential real property must contain a written statement explaining the consumer’s rights under the recovery fund, unless the value of all labor and materials does not exceed $2,500.
3. The written statement must include information about the Florida Homeowners’ Construction Recovery Fund and how to file a claim, along with the contact information for the Florida Construction Industry Licensing Board.
4. On the first violation of failure to include this language, the board may fine the contractor up to $500, and the moneys must be deposited into the recovery fund. On a second or subsequent violation, the board shall fine the contractor $1,000 per violation, and the moneys must be deposited into the recovery fund. – A claimant can apply to the board for payment from the recovery fund if they meet certain conditions.
– The payment amount is either the judgment, award, or restitution order, or $50,000, whichever is less, or the unsatisfied portion of the judgment, award, or restitution order, but only for actual damages suffered by the claimant.
– Payment from the fund cannot be used for post-judgment interest, attorney’s fees, court costs, medical damages, or punitive damages.
– Once a claimant receives payment from the fund, they must assign their right, title, and interest in the judgment, award, or restitution order to the board.
– The board will then be entitled to any amount recovered on the judgment, award, or restitution order, for the purpose of reimbursing the recovery fund. 1. The maximum annual payment for claims against any single licensee is $100,000, with a total aggregate cap of $250,000.
2. Claims in excess of the annual cap can be eligible for payment in the following fiscal years, after all claims for the current year have been paid.
3. For contracts entered into after July 1, 2004, payments from the recovery fund are subject to a total aggregate cap of $500,000.
4. Claim payments are made in the order they are filed, up to the aggregate limits for each transaction and licensee.
5. Any licensee with a settlement paid from the recovery fund will have their license automatically suspended until the amount is repaid, plus interest.
6. Discharge of bankruptcy does not relieve a person from the penalties and disabilities outlined in this section.
7. Anyone who knowingly presents a false or fraudulent claim for payment under this act is guilty of a third-degree felony and subject to fines and penalties outlined in the section.
https://www.jimersonfirm.com/blog/2014/09/florida-homeowners-construction-recovery-fund/
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