TUKWILA — Homeowners in Tacoma and Spokane are among the first to receive payments from a new state fund designed to help people recover money lost to unscrupulous contractors.
The Washington State Department of Labor & Industries formally launched the Homeowner Recovery Fund on July 1. Created by legislation passed in 2023, the program is financed by fines and penalties collected under the Contractor Registration Act. It allows eligible homeowners to seek reimbursement of up to $25,000 for harm caused by registered contractors.
So far, the agency has approved five applications and distributed more than $115,000, according to L&I.
“This landmark new program provides an extra layer of protection for people who hire contractors to work on their home,” said Melissa McBride, head of L&I’s Contractor Registration Program. “It’s a step in the right direction for people to recover some of their losses when they are taken advantage of.”
In one case, Dan Morrill of Tacoma hired a registered contractor earlier this year for siding work on his 100-year-old home. The cybersecurity expert obtained three quotes and selected a bid of about $75,000. He paid a $32,000 down payment, but months passed with no work completed. The contractor had scammed Morrill and dozens of other homeowners.
Morrill applied to the fund in August and will receive $25,000.
“This is a great way to go after bad contractors,” he said. “At least we can get something back.”
In Spokane, Marina Ivankov and her family paid roughly $70,000 upfront for an outdoor pool and spa. The registered contractor then disappeared. Ivankov, who was born in Ukraine and grew up in Spokane, applied and will also receive $25,000.
“This was a godsend, we’re getting something at least,” she said. “We were taught to work hard and do the best for people – we were thinking people were honest.”
Ivankov described the payments as potentially significant for families facing financial strain. “I think for a lot of families it can mean everything,” she said.
To qualify, homeowners must own and live in the residence where the work was performed, hire a contractor registered with L&I, and obtain a final judgment against the contractor through a superior court complaint. Applications must be filed within 90 days of the court order.
Even after paying a homeowner, L&I pursues the contractor for the judgment amount plus interest, with recovered funds used to replenish the program.
Complete details, a fact sheet and application guidance are available on the Homeowner Recovery Fund page of L&I’s website. Questions can be directed to HRF@Lni.wa.gov or 360-902-5699.
L&I also advises homeowners to avoid paying in full before work is finished, to solicit multiple bids, and to verify a contractor’s registration, bond, insurance and history through the agency’s ProtectMyHome resource. Suspected fraud can be reported online or by calling 1-888-811-5974.
Author: Lynnwood Times Staff
