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Minnesota resource for homeowners when contractor goes out of business
Minnesota Contractor Recovery Fund
It’s been in the news this week that a Fargo remodeling contractor abruptly closed. Some of the company’s clients with unfinished projects (for which substantial payment had been advanced) have been featured in news stories. The Moorhead Building Codes Division is reaching out to Moorhead homeowners with whom this contractor had open building permits to confirm the status of their projects and to ensure they know about the Minnesota Contractor Recovery Fund. The Building Codes staff will also offer advice to these property owners on steps necessary to complete their projects.
The Recovery Fund is an important consumer resource to compensate owners or lessees of Minnesota residential property who have suffered a direct and out-of-pocket loss due to the misconduct of a Minnesota-licensed residential contractor. This Recovery Fund is supported through fees paid by Minnesota-licensed building contractors each year. There are, of course, procedures to follow and payment is not guaranteed, but the Recovery Fund could clearly be a valuable resource to property owners who have suffered substantial losses by the failure of their contractor.