State attorney-general restitution · Open

Minnesota Contractor Recovery Fund

The Minnesota Legislature created this fund in 1994 to compensate homeowners, residential lessees and homeowners' associations for out-of-pocket losses caused by a licensed residential building contractor or remodeler — fraudulent, deceptive or dishonest practices, converted funds, or work that was never performed. Payment is capped at $100,000 per applicant and $550,000 in total for all approved claims against the same licensed contractor, and covers direct losses only, not attorney's fees, interest or court costs. The department pays only where the applicant already holds a final, docketed court judgment against the contractor, and the completed application has to be submitted within two years of the date that judgment was entered; files are reviewed twice a year, with cut-offs on January 1 and July 1. Someone whose contractor held an active licence when the contract was signed and the work was done may be eligible, and applying to the department is free.