Accessing the Florida Homeowners Construction Recovery Fund Through an Award of Restitution from the CILB

The Florida Homeowners Construction Recovery Fund is a powerful tool for homeowners who have been wronged by a licensed contractor. The “Recovery Fund”, as it is commonly called, is established under section 489.140, Florida Statutes. It is intended solely to compensate aggrieved claimants who contracted for construction or improvement of their residence within the state and who satisfy a set of criteria. These criteria include obtaining a final judgment in a court of competent jurisdiction, receiving an award of restitution from the Construction Industry Licensing Board (or “CILB”), and receiving an award in arbitration against a licensee on certain grounds.

This post will provide information on accessing the Recovery Fund through an award of restitution from the CILB. For information regarding accessing the Recovery Fund by obtaining a final judgment in a court of competent jurisdiction, see our previous blog: “What Is Florida’s Construction Recovery Fund and How Can It Help Homeowners?“.

Filing a Consumer Complaint with the CILB

An award of restitution from the CILB which allows a homeowner to access the Recovery Fund results from a disciplinary case. This disciplinary case does not have to originate based on a consumer complaint from a homeowner. However, it benefits a homeowner who wishes to access the Recovery Fund to file a complaint against the licensed contractor. Because all legally sufficient claims are forwarded to the Department of Business and Professional Regulation’s investigators, a homeowner’s submission of a complaint with sufficient facts and allegations ensures that this complaint leading to a potential Recovery Fund claim will be investigated.

To receive access to the Recovery Fund, a disciplinary case must involve a licensee being specifically charged with a violation of section 489.129(1)(g), (j), or (k), Florida Statutes. These are charges that a licensed contractor engaged in financial mismanagement or misconduct, abandoned a construction project, or made a false statement with respect to a project. It is wise for a homeowner who submits a complaint to specifically track the language of the applicable statute that they plan to utilize to access the Recovery Fund. A homeowner should also include all the potential violations that the contractor engaged in to give themselves the greatest odds of the disciplinary case against the license proceeding.

How to Receive an Award of Restitution from the CILB

After their complaint is submitted, a homeowner’s next opportunity to increase their chance of access to the Recovery Fund is typically through participation in the hearing on their case. In a hearing before the CILB, the homeowner can tell the board members the problems resulting from the contractor’s actions. The homeowner can also explain their need to receive an award of restitution that will allow them access to the Recovery Fund. The board members may then question the homeowner as to the circumstances around the situation and the homeowner’s role. These factors may play into whether the CILB awards restitution. For example, a homeowner may admit that the false statements made with respect to a project actually resulted from information given by the homeowner or another party. The CILB might then decide that an award of restitution would be inequitable and decide not to award restitution. 

The CILB awards restitution along with the other disciplinary terms, such as an administrative fine, pertaining to the disciplinary action. These terms are all contained in a final order which the contactor has the right to appeal.

Filing a Recovery Fund Claim After a Restitution Award

Once the time to appeal and any appellate proceedings have passed and the final order awarding a homeowner restitution is definitive, the homeowner may then file a claim with the CILB for access to the Recovery Fund. In this claim, the homeowner must show that the order of restitution was based upon an eligible violation of the licensing law. The homeowner’s Recovery Fund claim will be presented to the CILB at a hearing during a public meeting. The homeowner can, and should, attend this meeting and offer testimony to the CILB in support of their claim. At the end of the hearing, the CILB will issue a final order either granting or denying the Recovery Fund claim.

Utilizing an award of restitution is typically an easier, more predictable way to access the Recovery Fund than obtaining a final judgment in a court of competent jurisdiction or an award in arbitration. However, obtaining an award of restitution is highly-dependent on the proper submission of documents and framing of issues on the part of the homeowner. Failing to submit the right materials can result in closure of the disciplinary complaint filed by the homeowner before the award of restitution required to submit the Recovery Fund claim takes place.

Contact Us

Jimerson Birr’s attorneys are experienced with Recovery Fund claims and the CILB’s disciplinary process that results in an award of restitution. As a homeowner, they can work with you to craft a persuasive narrative for the CILB and provide supporting documents that will increase your opportunity to receive an award of restitution. Contact Jimerson Birr’s attorneys today to help with your Recovery Fund claim!