State Reimburses Homeowners Scammed by Contractors

Washington's Homeowner Recovery Fund has received five applicants since its July 1 launch, with two scammed homeowners receiving the maximum payment.

Updated on Nov. 6, 2026 in Home Renovation

Gouache-painted editorial illustration of a half-installed wooden door frame against bare studs in an unfinished room, quiet and abandoned. — Washington's Homeowner Recovery Fund has reimbursed two homeowners the $25,000 maximum after contractors took their money and abandoned the work. AI Illustration. Upload story photo >

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Washington Labor and Industries launched a Homeowner Recovery Fund on July 1 to reimburse homeowners who were defrauded by contractors. Two homeowners have already received the program's maximum payment of $25,000.

Why it matters

The fund gives scammed homeowners a route to recover losses when contractors take payment and leave work unfinished. The legislature formed the program in 2023 to provide relief to these homeowners.

Five people have applied to the Homeowner Recovery Fund so far, and each of the two homeowners described received the $25,000 maximum. One victim, Dan Morrill of Tacoma, paid a $32,000 downpayment before the contractor disappeared, while a Spokane consumer paid $70,000 for hot tub and porch work that was never completed.

The players

Washington Labor and Industries

The Washington state agency that administers workplace safety, licensing and consumer protection programs, including the Homeowner Recovery Fund.

Dan Morrill

A Tacoma homeowner who paid a $32,000 downpayment to a contractor who then disappeared, and who received the fund's maximum payment.

The details

Both homeowners reported the fraud to law enforcement and to Labor and Industries, which made them eligible for reimbursement. Business cycles and taxes fund the program, which the legislature established in 2023.

- 2023: The Washington Legislature formed the Homeowner Restitution Program.
- July 1: The Homeowner Recovery Fund formally launched.

Legal Context

The Homeowner Recovery Fund is the operational follow-through on the Homeowner Restitution Program the Washington Legislature created in 2023. The fund now puts that statutory promise into practice for homeowners defrauded by contractors.

Homeowners who pay a contractor for renovation work and are later defrauded may be able to seek up to $25,000 from the state fund if they report the fraud to law enforcement and Labor and Industries. The reimbursement cap means larger losses may not be fully covered.

The takeaway

Before paying a contractor, check licensing and keep records of every payment, since reporting fraud to law enforcement and Labor and Industries is a requirement for state reimbursement.