Had the bill passed both the House and the Senate , you would have felt a variety of detrimental effects including :
• An 18-month mandatory escrow for deposits which cumulatively add up to $ 10,000 or more in an area declared a state of emergency due to a hurricane ; these escrow requirements would have even applied to new homes or projects in those areas not impacted by the storm , even if the state of emergency is lifted prior to the 18-month limit ;
• Mandatory escrow of any deposit $ 10,000 or more for any builder in business for less than 5 years ( not limited to post-hurricane work );
• Mandatory performance bond for all contracts ( not limited to post-hurricane ) valued at $ 100,000 or more
FHBA believes that if this bill was truly trying to stop construction fraud , it would target bad actors rather than imposing penalties that adversely affect contractors who are playing by the rules . FHBA has pledged to continue working with legislators to identify commonsense legislation that effectively targets contractor fraud .
2024 FHBA Legislative Summary I 19