What does the Home Improvement Guaranty Fund do?

The Home Improvement Guaranty Fund is designed primarily to protect consumers, specifically homeowners, who suffer losses as a result of the actions or failures of licensed contractors. When a contractor engages in practices that lead to financial harm for the homeowner—such as failing to complete a project, not meeting contractual obligations, or performing substandard work—the fund serves as a safety net. It compensates the affected homeowners for their losses, thereby helping to maintain trust in the contracting profession and ensuring that homeowners have recourse in the event that they are wronged.

This focus on consumer protection distinguishes the fund from other options which may relate to general support for contractors or project funding. For instance, providing tax incentives or training is geared more towards the development and support of contractors rather than directly addressing homeowner losses. Similarly, funding home improvement projects would imply financial assistance for undertaking such projects rather than serving as a remedial measure for completed but inadequately executed work. Therefore, the primary function of the Home Improvement Guaranty Fund is to provide compensation for homeowners affected by the malpractice of licensed contractors.