Home Improvement Guaranty Fund
The Department of Consumer Protection maintains the Home Improvement Guaranty Fund. This fund was created and is replenished from annual assessments of registered contractors, and can be used to help satisfy an unpaid judgment (or court-confirmed arbitration decision) to a homeowner. A homeowner may be eligible for up to $25,000 from the Fund if they had hired a registered home improvement contractor and the resulting problem meets certain criteria.
More About the Home Improvement Guaranty Fund
One of the most frustrating experiences for any homeowner is suffering through a poorly done home improvement project – or, even worse, one that was paid for, but never completed.
Even more frustrating is going to court, receiving a judgment in your favor, and then discovering the judgment is virtually worthless because the contractor has no assets or can’t be located.
But there is help for consumers through Connecticut’s Home Improvement Guaranty Fund. This is a pool of money administered by the Connecticut Department of Consumer Protection. It was created and is replenished from annual assessments of registered contractors and can be used to help satisfy an unpaid judgment to a homeowner.
You may be eligible for up to $25,000 from the Fund if your home improvement problem meets the following criteria:
- Your contractor must have been registered with the Department of Consumer Protection at the time you signed your contract, or within two years of the date you signed your contract, or at the time of your court judgment.
- The contract must have been for work on residential property (single or multifamily dwellings of six units or less, or condos or cooperatives).
- The total price of the work involved must have been more than $200.
- You must apply to the Guaranty Fund within two years after you receive the court judgment against your contractor.
- For Federal or Superior Court judgments, you must have tried to collect the money owed you by means of a marshal’s “writ of execution,” and were unsuccessful in that attempt.
- For Small Claims judgments, you are not required to attempt to collect by means of a writ of execution. If the contractor does not pay you in accordance with the judgment, you may apply directly to the Guaranty Fund.
You may recover from the Guaranty Fund actual damages, court costs and attorneys’ fees as ordered in your court judgment, up to $25,000. Attorney fees are payable only if your court judgment includes the attorney fees in the awarded amount.
Application processing time varies based on legal notice periods, application completeness, due process considerations, and the volume of applications pending. The majority of qualified applicants receive payment within twenty-four weeks.
The Guaranty Fund does not cover: