The Florida Homeowners’ Construction Recovery Fund can reimburse eligible homeowners for certain unpaid losses caused by a licensed contractor. Often called the Florida construction recovery fund, it is a last-resort remedy with strict eligibility, proof, collection, and filing requirements. It does not pay every construction judgment or repair bill.

For qualifying contracts entered into on or after July 1, 2024, the maximum is $100,000 for Division I claims and $30,000 for Division II claims. Older contracts have lower limits. A homeowner must still prove an eligible loss and satisfy all other conditions; the cap is not a guaranteed payment.

Law and agency guidance reviewed October 22, 2026.

Florida construction recovery fund: the essentials

Who: qualifying owners who contracted to build or improve their own Florida residence.
What: specified contractor misconduct, including qualifying financial mismanagement, abandonment, and false statements.
Proof: ordinarily a final judgment, arbitration award, or Construction Industry Licensing Board restitution order identifying the covered violation and actual damages.
Collection: available security and insurance must be pursued, and required collection efforts documented.
Deadline: a Fund claim must be made within one year after the conclusion of the qualifying action or arbitration award. The procedural history matters.
Payment: limited to eligible, unpaid actual damages, subject to offsets, contract-date limits, contractor limits, and available appropriations.

What is the Fund, and how does it work?

The Construction Industry Licensing Board (CILB), within Florida’s Department of Business and Professional Regulation (DBPR), administers the Fund. Its statutory purpose is to compensate qualifying homeowners harmed by specified misconduct in licensed residential construction. It is not a homeowner’s insurance policy, a general warranty program, or emergency financing to finish a project.

A claim usually follows three stages: establish the contractor’s liability and covered damages; pursue the required sources of collection; then submit a supported Fund application. A complaint against a contractor and a Fund application are different proceedings. Filing one does not automatically complete the other.

The principal requirements appear in section 489.141, Florida Statutes. DBPR’s Recovery Fund page provides the current application and supporting forms.

Who can qualify for the Florida construction recovery fund?

Owners of qualifying Florida residences

The claimant must fit the statutory definition of a homeowner. The residence can be a single-family home, an individual condominium or cooperative unit, or a building containing no more than two units. The contracting owner must reside, or intend to reside after the work is completed, in the residence for at least six months each calendar year.

Consequently, an ordinary investment property occupied only by tenants does not qualify merely because an individual owns it. A seasonal home occupied less than six months each year also presents an eligibility problem. An individual condominium owner may qualify for work on the unit; an association’s common-area project is not automatically the homeowner’s qualifying residence.

The definition also addresses a trustee who holds title to an owner-occupied residence in trust when the homeowner is the beneficial owner for life. Review the deed, trust, occupancy, and contract together rather than assuming every trust-owned property is excluded. See section 489.1402.

A qualifying licensed contractor and transaction

The Fund concerns contractors licensed under Part I of Chapter 489. Division I includes general, building, and residential contractors. Division II includes covered trades such as roofing, plumbing, air conditioning, and swimming pools. An electrical-contractor dispute should not be treated as a CILB Fund claim without checking the separate licensing framework.

Verify the individual licensee, the business the licensee qualified, the contract date, and the date of the violation. The statutory definition of a “valid and current” license for the contract-date exclusion includes active, inactive, delinquent, and suspended status. Therefore, a status label alone does not decide eligibility. Hiring someone who never held the required license is a different problem and ordinarily does not qualify for this Fund.

Who is excluded?

Section 489.141 excludes, among others, a claimant who is the licensee’s spouse or the personal representative of the licensee’s deceased spouse; a claimant who was acting as a contractor in the transaction; and a claim involving property owned or controlled by the contractor. It also excludes a claimant with another business relationship with the contractor beyond the contracted construction work.

Both the contract and violation must meet the statutory starting-date requirement of July 1, 1993. Division II work under contracts entered into before July 1, 2016 is excluded. These rules make the original agreement and later change orders important evidence.

What contractor misconduct is covered?

A breach-of-contract label, a poor result, or an unpaid judgment is not enough by itself. The judgment, award, or restitution order must rest on a covered ground under section 489.129(1)(g), (j), or (k), or section 713.35.

Financial mismanagement or misconduct: examples include specified unpaid-lien situations after the homeowner paid the contractor, abandonment when the percentage paid exceeds the percentage completed, and qualifying excess completion costs. Each statutory ground has its own conditions and exceptions.
Abandonment: section 489.129(1)(j) addresses abandoning a project and provides a 90-day presumption in the circumstances described there. A missed appointment or short interruption is not automatically statutory abandonment.
False statements: section 489.129(1)(k) covers specified false statements about bonding, payment for subcontracted work or materials, and insurance.
False payment documents: section 713.35 addresses knowingly false payment-status documents used to induce payment, subject to its statutory elements.

For example, the unpaid-lien ground requires more than receiving a demand from a supplier. It addresses valid recorded liens for supplies or services the contractor ordered, funds the customer paid for them, and failure to remove the liens by payment or bond within 75 days. Our guide to Florida construction liens explains the separate rights and deadlines affecting the property.

Defective work can support other claims without satisfying a Fund ground. The complaint, evidence, and proposed final order should identify the actual covered misconduct and resulting loss. A later Fund application cannot safely substitute for a missing adjudication.

How much can the Florida construction recovery fund pay?

The applicable cap depends principally on the contractor’s division and the contract date, rather than the date the homeowner submits the application.

Contract and contractor category	Maximum per qualifying claim
Division I: contracts after July 1, 2004 through June 30, 2024	$50,000
Division II: contracts July 1, 2016 through June 30, 2024	$15,000
Division I: contracts on or after July 1, 2024	$100,000
Division II: contracts on or after July 1, 2024	$30,000

The increased limits apply to eligible payments beginning January 1, 2025. Older Division I transactions require separate review of the statute’s $25,000 baseline and historical provisions. The statute uses “after July 1, 2004” for the $50,000 category; a contract at that boundary warrants particular attention.

Multiple claimants from the same transaction share the applicable transaction limit. Dividing one project into related contracts does not necessarily multiply the available recovery. Section 489.1402 includes certain series of contracts involving the same or contiguous property within one transaction.

There are also aggregate limits against each licensee. The newer contract category carries limits of $2 million for Division I and $600,000 for Division II; the earlier categories generally use $500,000 and $150,000, respectively. Older transactions have additional historical limits. Prior Fund payments against the contractor can therefore affect a later applicant. See section 489.143.

Which losses count as actual damages?

The Fund pays eligible actual damages, not necessarily the entire judgment. Its rules focus on the loss caused by the covered violation and the cost of completing the original contractual scope. Keep the original price, approved change orders, payments, replacement work, liens, and recoveries in a reconciled ledger. Separate upgrades and new scope from completion of the original bargain.

Under Rule 61G4-21.002, a deposit-only claim where no actual work was performed and no materials were delivered cannot exceed the deposit or down payment. The Fund also cannot pay attorney’s fees, court costs, postjudgment interest, medical damages, or punitive damages. Other lawsuit remedies should not be assumed recoverable from the Fund.

Illustration: assume the approved contract price was $180,000. The owner paid the original contractor $80,000 and reasonably paid a replacement contractor $140,000 to finish the same scope. The resulting $40,000 excess project cost is a starting point for analysis, not an automatic award. A covered violation, supporting judgment or order, eligible costs, offsets, collection efforts, and the applicable cap still must be established.

Our article on Florida construction contract damages discusses the broader remedies potentially available in litigation. Those measures should be analyzed separately from Fund eligibility.

Do settlements and insurance proceeds reduce the claim?

Yes. Amounts recovered from the contractor or another source must be credited as the statute requires. In Bodiford v. Department of Business and Professional Regulation, 352 So. 3d 441 (Fla. 1st DCA 2022), the court upheld denial after a third-party settlement offset the qualifying loss. The homeowners could not preserve Fund recovery by unilaterally assigning settlement proceeds to fees, punitive damages, and other excluded categories.

Bodiford also rejected the argument that an undifferentiated stipulated judgment conclusively established the Fund award. The Board could require supporting evidence and calculate eligible actual damages. Keep settlement documents and a transparent explanation of every credit.

Do I need to sue before applying?

Ordinarily, the homeowner needs a final court judgment, an arbitration award, or a CILB final order directing restitution. A civil lawsuit is therefore not the only possible route. However, a DBPR complaint, an investigation, a disciplinary fine, or a contractor’s promise to pay is not itself a qualifying restitution award.

The operative judgment, award, or order must identify the covered violation and actual damages resulting from it. An arbitration claimant should also obtain the judgment and certified records required by the current application and rules. DBPR states that certain local-board restitution orders against registered contractors may qualify when adopted by the CILB; a local order alone should not be assumed sufficient.

Plan for Fund eligibility while preparing the underlying case. Identify the correct parties, licensed qualifier, covered statutory ground, and damages evidence. Do not assume a judgment only against a trade name or a broad settlement recital resolves those issues.

What collection efforts does the Florida construction recovery fund require?

The Florida construction recovery fund is a last resort. Section 489.141 requires claims against and exhaustion of available bonds, sureties, guarantees, warranties, letters of credit, and insurance. A claimant also must satisfy the applicable execution or diligent-collection requirements.

Depending on the case, the supporting proof may include a writ of execution returned unsatisfied, documented searches for property and accounts, collection efforts against located assets, or evidence of diligent efforts to collect a restitution order. A contractor’s statement that there is no money is not a substitute for the required record.

Rule 61G4-21.002 provides a specific alternative for claims of $15,000 or less involving evidence of certain suspensions for nonpayment or a Board order showing prosecution for failure to pay a civil judgment. DBPR supplies separate short and long asset-search affidavits. The affidavit threshold is not the same as the newer Division II payment cap. Use the form and proof appropriate to the claim.

What if the contractor files bankruptcy or dies?

Section 489.141 contains limited exceptions to the ordinary judgment requirement for death and bankruptcy. Death must make obtaining the required judgment impossible. Bankruptcy relief requires the statutory showing concerning efforts to remove the relevant matter or assets from bankruptcy, due diligence, and action by the bankruptcy court preventing a final judgment. Insolvency or a bankruptcy filing alone does not establish the exception.

In Bessey v. Department of Business & Professional Regulation, 396 So. 3d 847 (Fla. 2d DCA 2024), the bankruptcy court allowed the homeowners to obtain a state-court judgment for Fund eligibility. They did not do so. The appellate court reversed the Fund award and directed dismissal of the claim. Permission to obtain a judgment is not the same as an order preventing one.

Coordinate collection and litigation with the automatic stay and any discharge injunction. Preserve the bankruptcy orders and claim records. A Fund application does not authorize otherwise prohibited collection activity.

When must the Fund claim be filed?

The general Fund deadline is one year after the conclusion of a qualifying civil, criminal, or administrative action, or an arbitration award, based on the contractor’s act. It is not simply one year after discovering bad work or sending a demand letter.

The endpoint can become complicated when litigation, agency proceedings, and bankruptcy overlap. In Stasinos v. State, Department of Business & Professional Regulation, 209 So. 3d 18 (Fla. 4th DCA 2016), a Fund claim filed within a year after the bankruptcy proceeding concluded was timely on that record. The homeowners had participated in bankruptcy to recover the same construction loss.

Do not read that decision as permission to wait indefinitely or assume any later proceeding restarts the deadline. Calendar the earliest plausible date and assess each proceeding. Separate lawsuit, arbitration, lien, bond, insurance, and administrative deadlines can expire before the Fund application becomes ready.

How do I apply to the Florida construction recovery fund?

Start with the current forms on DBPR’s Recovery Fund page. The application checklist calls for a completed, signed claim form and supporting records. Depending on the claim, the file should include:

Eligibility records: ownership, occupancy, original contract, change orders, contractor identity, and licensing history.
Liability records: the complaint or initiating pleading, certified final judgment, arbitration materials and judgment, or CILB restitution order.
Payment evidence: checks, bank records, receipts, progress payments, and a clear accounting.
Completion evidence: replacement contracts, itemized invoices, proof of payment, and required estimates if work remains unfinished.
Project records: photographs, notices, communications, permits, inspections, and evidence of the percentage completed when work stopped.
Lien and security records: notices, recorded liens, releases, bonds, warranties, and applicable insurance documents.
Collection and offset records: execution documents, asset-search affidavits, bankruptcy orders, settlements, distributions, refunds, and other recoveries.

DBPR warns that using an unlicensed contractor to complete work can jeopardize recovery for that work. Preserve records before demolition or replacement, separate the original scope from improvements, and obtain appropriate licensed assistance. Follow the current submission instructions and retain proof of delivery. An incomplete packet can delay consideration or lead to closure after an unanswered document request.

How long does approval and payment take?

There is no guaranteed payment date. Staff must review the application and supporting evidence, resolve deficiencies, and present a complete claim for Board consideration. DBPR describes consideration in the order claims become complete. The statute requires at least 14 days’ notice before the Board’s review.

Approval must be reduced to a final order, and disbursement follows the applicable processing and review periods. Payment also depends on available appropriations and statutory limits. Section 489.143 provides for eligible unpaid claims to carry forward when annual appropriations are exhausted. Do not budget for an immediate check or assume approval guarantees full reimbursement.

What happens after payment, or if the claim is denied?

Payment requires assignment of recovery rights to the extent the Fund pays. The state becomes entitled to pursue that portion of the loss. Later recoveries can create reimbursement obligations, so preserve the payment order and track additional collections.

A Fund payment also triggers statutory consequences for the contractor’s license, including automatic suspension under section 489.143. Those consequences help explain why the licensee may contest eligibility or the amount.

If the claim is denied or reduced, obtain the written order and identify whether the problem concerns eligibility, proof, offsets, collection, timeliness, or a payment limit. Final agency action is subject to review under section 120.68. Review the order’s notice of rights immediately; an informal request to reconsider should not be assumed to extend an appeal deadline.

Practical questions homeowners often ask

Can I apply as soon as the contractor walks off the job?

You can begin documenting the problem and evaluating eligibility immediately. Payment ordinarily requires the qualifying final adjudication and collection record. Protect the property and preserve other deadlines while those steps proceed.

Does a $100,000 judgment guarantee a $100,000 payment?

No. The higher cap applies only to the qualifying Division I contract category. Eligible actual damages, unpaid amounts, offsets, all eligibility conditions, the licensee’s remaining limit, and funding must also support payment.

Can I recover attorney’s fees from the Fund?

No. Section 489.143 expressly excludes attorney’s fees and court costs from Fund payments. A separate fee entitlement against another party does not make those amounts Fund-eligible.

Does the contractor’s required Fund notice guarantee coverage?

No. Section 489.1425 requires a consumer notice in certain residential construction contracts exceeding $2,500. The notice alerts homeowners to a possible remedy; it does not eliminate the Fund’s eligibility conditions. Missing notice does not automatically establish a payable claim.

Can I handle the application without a lawyer?

The forms are available directly from DBPR. Legal assistance can be useful when the underlying order lacks required findings, bankruptcy affects the case, substantial offsets exist, or deadlines overlap. Evaluate those issues before relying on an expected Fund payment.

Planning a Florida homeowner’s recovery

The strongest approach considers Fund requirements at the start of the contractor dispute. Match the licensed contractor and transaction to the statute, obtain findings on a covered violation, prove the eligible loss, document collection, and protect the filing deadline.

We represent owners, contractors, and businesses in real estate and construction litigation and business contracts and commercial litigation, including disputes involving payment, abandonment, construction damages, and collection.

This article provides general information, not legal advice. Eligibility and payment depend on the governing law, contract dates, licensing history, evidence, orders, and procedural record.

Florida Homeowners’ Construction Recovery Fund: A Practical Guide