The Arizona Residential Contractors' Recovery Fund
Arizona maintains a recovery fund that protects homeowners who hired a licensed residential contractor. This chapter covers who the fund protects, why unlicensed work is excluded, and how the fund is financed.
Who the fund protects
The Residential Contractors' Recovery Fund (A.R.S. §32-1131 et seq.) reimburses an owner of a residential structure who was damaged by a licensed residential contractor's failure to perform or a violation of the licensing law, when the owner cannot otherwise collect. It applies only to owners who contracted with a licensed residential contractor.
Unlicensed work is not covered
Because the fund is tied to licensed contractors, an owner who hired an unlicensed person cannot recover from it - even if the unlicensed person took a deposit and abandoned the job. This is a key reason Arizona urges owners to confirm a contractor's ROC license before hiring.
How the fund is financed
The fund is financed through assessments and fees paid by licensed residential contractors as part of licensure (A.R.S. §32-1132). Because the contractors themselves fund it, the protection extends only to owners who dealt with a licensed residential contractor.