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Kelly Lang thought she did everything right.
Las Vegas homeowners knew they should use a licensed contractor for their planned kitchen remodel. She chose an established company, checked online reviews, and made sure licenses and warranties were up to date.
“I work for the (public) power company here in town,” she said. “So I knew everything I had to do.”
But what she expected to be a smooth ride turned into a year-long headache. It started with a delay. Work that was scheduled to begin in October was postponed to December and then again to January. Then there were excuses that seemed questionable. After that, without any warning and without refunding the money I had already paid, the store closed and I stopped answering the phone.
Ms. Lange knew that she could make a claim on the bonds of the now-shuttered company. She and several others in similar positions have done just that. This allowed her to get some of her money back, although not all of it.
Fortunately, Nevada has its own safety net in place for people like her.of housing recovery fund This allows single-family homeowners to recover financial losses if a licensed contractor fails to perform the work properly. Although there are some restrictions, such as homeowners having to live in the home and having to exhaust other means of recovery, this fund is available to people who have been wronged by licensed contractors. provides some compensation.
On January 18, Lange was one of more than 20 people to appear before the Nevada Contractors Board, which administers the Housing Recovery Fund. Homeowners were awarded a total of about $400,000 from the fund, and as of December 2023, the fund had about $6 million.
Since its creation by the Nevada Legislature in 1999, the Housing Recovery Fund has awarded approximately $15 million to 1,648 homeowners. This fund is kept flat by fees charged to all licensed contractors.
Mr. Lange was approved for $10,204. Lange’s contracted company, Next Gen Kitchen and Bath, filed four complaints against the company during the hearing.
The amount awarded at the hearing was approximately $1,300. Up to the maximum amount allowed by state law: $40,000.
One homeowner who received the maximum amount allowed paid more than $120,000. It was transferred to the now-defunct Lifetime Power LLC, but the work was never completed. She told her board that she is seeking legal recourse against the partner companies she believes should be held accountable, but she hopes the board will do everything it can for her. I was grateful for that.
“Many of these homeowners have gone through a long, drawn-out process,” said David Behar, director of research for the Nevada Contractors Board.. “They’re frustrated. They spent a lot of money. They haven’t done any repairs on the house. They were incomplete because they were waiting to make the money whole again. This One of the things that the process allows us to do is that maybe we can finally get some closure.”
In the majority of cases heard last week, the negligent companies never completed any work. In one case, the company cut corners and had to be reworked. Another company installed an incompatible solar power system.
S&E Contracting, which operated as Made in the Shade until its license was revoked by regulators in September, filed 13 complaints against the company at a recent hearing. The contract they abandoned accounted for nearly half of the $400,000 awarded at the hearing.
Of the 13 claims against Made in the Shade, all but one were for projects that exceeded the amount the company was guaranteed. Boyd Martin, a member of the contractor’s board of directors, noted that accepting projects over dollar limits is a red flag that a company is unreliable and may not be able to deliver what it promises. Another company was found to have carried out work outside the scope of its license, for example completing tiling work despite having a general landscaping only license.
The Nevada Contractors Board requires homeowners to receive at least three bids on a project and to ensure that contractors are properly licensed and bonded for the type of work being done. We recommend that you do so. This can be done online for free.
“Don’t take their word for it,” Behar said, adding that the contractor’s website will also list whether the contractor has been disciplined. “We are trying to focus on unauthorized contractors, those targeting more vulnerable populations, those who may not understand the process and are not eligible for recovery funds. Masu.”
Homeowners should also be aware that state law largely limits the amount a contractor can collect as a deposit to the lesser of $1,000 or 10% of the contract price.Lawmakers set these limits Parliamentary Bill No. 39 2023 Congressional Minutes.
Homeowners who have been wronged by unauthorized contractors are not eligible for housing rehabilitation funds, but the contractor’s board has a criminal division that investigates their wrongdoing.
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