If you’ve been left with an unfinished house, a growing pile of liens, or a contractor who filed for bankruptcy, it’s easy to feel like you have no options. You may even have a court judgment, but the contractor has no money to pay you with. If you find yourself in such a scenario, you can rest assured that there is a final safety net known as the Florida Homeowners’ Construction Recovery Fund. Florida has significantly increased the amount you can recover, particularly for contracts entered into after July 1, 2024. Here is how to claim what you are owed.
Do You Qualify as a “Homeowner”?
This fund is strictly for “natural persons,” meaning that corporations or LLCs don’t qualify. The Fund is meant to be used on owner-occupied residences such as single-family homes, townhomes, or a building with no more than two units. So, you must live in your residence (or plan to reside there) for at least 6 months out of the year.
The Three Violations That Trigger a Payout
You can only apply for the fund if the contractor has committed one of three specific legal violations as defined in Section 489.129, Florida Statutes:
- Financial Mismanagement (Violation “g”): If contractors took your money but didn’t pay the subcontractors, leading to liens on your home, or you had to pay more than the original contract price to finish the job.
- Abandonment (Violation “j”): If the contractor did no work for 90 consecutive days without a valid reason.
- False Statements (Violation “k”): If contractors lied about having insurance, being bonded, or paying off their suppliers.
What You Need to Do Before You Can Get Your Payment
Because this is a “fund of last resort,” Florida requires you to prove you tried everything else first. So, to receive your payment from the Fund, the most important aspect is that you must first win a civil lawsuit, an arbitration award, or a restitution order against the contractor from the Construction Industry Licensing Board.
You must also prove the contractor is “judgment proof.” This involves a “diligent search” (like checking for real estate, vehicles, and bank accounts) to show they have nothing you can seize to collect on the judgment. If your contractor filed for bankruptcy, you aren’t out of luck. You can still obtain an order from the bankruptcy court to allow your claim to move forward. Lastly, you must make sure to file your claim with the Board within one year of your final judgment or order.
So How Much Can You Recover in 2026?
The amount you can get depends on the type of contractor you hired, and when you signed your contract. The Fund’s payments specifically cover your “actual damages,” or the money required to finish the original contract scope (or to pay off liens).
For example: If your contract was for $100k, and you paid $50k, but then the contractor left, and it cost you $70k to finish the project, your “actual damages” would be $20k (the extra money you had to spend).
For contracts entered into on or after July 1, 2024, you may be eligible for the following:
- Division I Contractors (Including General, Building, Residential Contracts): You may be eligible for up to $100,000.
- Division II Contractors (Including Roofing, HVAC, Plumbing, Pool Contracts): You may be eligible for up to $30,000.
Note that for older contracts executed before July 1, 2024, the limits are generally capped at $50,000 for Division I and $15,000 for Division II.
Stop Waiting for a Contractor Who Won’t Pay You
You can expect a timeline of anywhere between 12 to 18 months, but once the Board approves your claim and the mandatory 35-day appeal window closes, you may request your payment. Note that navigating the Construction Industry Licensing Board requirements are notoriously difficult, as even a single missing document can lead to a denial.
Don’t let the one-year deadline pass you by. Contact our team to see if you qualify for Florida’s Homeowners’ Construction Recovery Fund.
