TUMWATER, Wash. — The Washington State Department of Labor & Industries (L&I) says it has issued the first reimbursements from the state’s new Homeowner Recovery Fund, paying out more than $115,000 to five approved applicants.
The state program provides financial recovery for property owners who suffered losses from registered contractors, offering up to $25,000 per applicant.
The Homeowner Recovery Fund opened on July 1 under state legislation enacted in 2023 to expand protections for consumers. The program is sustained by fines and penalties collected under the state Contractor Registration Act.
L&I says Dan Morrill, a cybersecurity expert living in Tacoma, sought siding for his 100-year-old home in February. Morrill gathered three bids before selecting a registered contractor for approximately $75,000 and providing a $32,000 down payment. They say no work was performed over the following months, as the contractor scammed Morrill and dozens of other property owners. After applying to the fund in August, Morrill was approved to receive $25,000.
In Spokane, L&I says homeowner Marina Ivankov paid nearly $70,000 upfront for an outdoor pool and spa before the registered contractor disappeared. Ivankov applied to the program and was approved for a $25,000 reimbursement.
To qualify for reimbursement, they say applicants must meet specific state requirements. Property owners must reside in the home where the work occurred, hire a contractor registered with L&I, and file a civil complaint in superior court that results in a final judgment against the contractor. The reimbursement application must be submitted within 90 days of the court order.
After distributing funds to a homeowner, L&I seeks to recover the judgment amount plus interest directly from the contractor to replenish the program.
State officials advise homeowners to take preventive steps when hiring home improvement services. Homeowners should never pay for a project in full before completion and should obtain multiple bids. Registration, bonding, insurance, and historical records for contractors can be verified here, and suspected contractor fraud can be reported to L&I here.