The slowdown in construction is forcing the State of Florida to suspend a program that helps homeowners recover damages caused by licensed contractors.
The Department of Business and Professional Regulation says there’s no money to pay out claims through the state’s Recovery Fund because of a large drop in building permits being issued. The fund is built up through a half-cent surcharge on building permits.
About $4.3 million was collected in the fiscal year that ended in 2006, compared to less than $2 million collected over this past fiscal year. That means 26 claims totaling $500,000 that already have been approved won’t be paid until the state replenishes the fund.
In addition, more than 450 pending claims won’t be reviewed until the suspension is lifted.