Section 14.21 - Payments from the Guaranty Fund(1)Award Amounts. The Fund Administrator may award: (a) to any claimant no more than $10,000 or the amount necessary to compensate the claimant for his or her actual loss, whichever is less; and(b) no more than $75,000 per 12 month period in aggregate claims which are the result of a single registrant's actions pursuant to M.G.L. c. 142A, unless the registrant has repaid the fund for the full amount required pursuant to M.G.L. c. 142A, § 8; provided, however, that it is within the discretion of the fund administrator to waive the limit of aggregate claims with cause.(2)Registered Contractor Requirement. Payments from the fund may only be awarded to an "Owner" who entered into a written contract with a registered contractor, or subcontractor, as defined in 201 CMR 14.02.(3)Unregistered Contractors. Payments from the fund may not be awarded in cases where the home improvement contractor, or subcontractor, was unregistered on the date of the contract.(4)Building Permit Requirement. Payments from the fund may not be awarded to an owner who secured his or her own building permit for the contracted work in dispute unless the contractor, or subcontractor failed to inform the homeowner, as required by M.G.L. c. 142A, § 2, that homeowners who secure their own permits will be so excluded from the fund.(5)Actual Loss Payments. Payments from the fund may only be awarded for actual losses as defined by 201 CMR 14.14 and M.G.L. c. 142A and may not be awarded for consequential or punitive damages, personal injury, attorney's fees, court or arbitration costs or interest.(6)Required Process. Payments from the fund may be awarded to an owner only if he or she has brought an action to enforce any provision of M.G.L. c. 142A in court or, in the alternative, through the state approved arbitration program as outlined in 201 CMR 14.00, and has exhausted all such customary and reasonable efforts to collect the judgment or award, and has filed his or her claim within the six month statutory period pursuant to 201 CMR 14.18(4).(7)Application. Payments from the fund may be awarded to an owner only after the fund administrator receives a completed application form provided by OCABR.(8)Additional Application Documents. Accompanying the application form, the homeowner shall submit a copy of any court or arbitration judgment obtained against the registrant including findings of fact and conclusions of law, if any. In addition, a notarized affidavit signed and sworn to by the homeowner shall be submitted, affirming that:(a) he or she has complied with all the requirements of M.G.L. c. 142A;(b) he or she has obtained a court judgment or arbitration finding;(c) all or some specified portion of the court judgment or arbitration finding remains unpaid;(d) all required evidence has been submitted demonstrating that the claimant has exhausted customary and reasonable efforts to collect.(9)Application Review. Upon receipt by OCABR of the application with all required attachments and notarized affidavit, the Fund Administrator shall inspect all documents for their veracity. If the Fund Administrator determines that said documents verify that the owner has exhausted all customary and reasonable efforts to collect the award without success, the fund administrator may order payment out of the Guaranty Fund for the amount of the owner's actual loss.(10)Six Month Application Deadline. Payments from the fund may be awarded only if the Fund Administrator receives an application from the claimant within six months of the date upon which a court judgment or arbitration finding was issued against the registrant.(11)Claims Procedure for Exhausted Fund. If at any time the money deposited in the fund is insufficient to satisfy the approved claim or portion thereof, the Fund Administrator, when sufficient money has been deposited in the fund, shall satisfy the unpaid claims or portions thereof in the order that the claims were originally filed.(12)Court Judgment or Arbitration Award Requirement. A court judgment or arbitration award required by M.G.L. c. 142A, § 5 and 201 CMR 14.00 may be satisfied by presenting to the Fund Administrator the following: (a) documentation from United States Bankruptcy Court confirming that:1. the contractor's debts have been discharged;2. the bankruptcy case has been closed; and3. the homeowner is precluded by the Bankruptcy Court from pursuing a court judgment or arbitration award against the contractor or subcontractor;(b) proof of the existence of a valid cause of action arising out of the improvement of an owner-occupied, one-to-four family residential home by a registered contractor or subcontractor for conduct alleged to be work performed in a poor or unworkmanlike manner which is a common law violation or a violation of any statute or regulation designed for the protection of consumers;(c) evidence that the claim was presented within two years and six months of the date the contract was signed by the parties;(d) proof of actual loss calculated pursuant to M.G.L. c. 142A and 201 CMR 14.14.(13)Court Judgment or Arbitration Award Requirement in Cases of a Deceased Contractor. A court judgment or arbitration award required by M.G.L. c. 142A § 5 and 201 CMR 14.00 may be satisfied by presenting to the Fund Administrator the following: (a) a copy of the deceased contractor's death certificate;(b) proof of the existence of a valid cause of action arising out of the improvement of an owner-occupied, one-to-four family residential home by a registered contractor or subcontractor for conduct alleged to be work performed in a poor or unworkmanlike manner which is a common law violation or a violation of any statute or regulation designed for the protection of consumers;(c) proof of actual loss calculated pursuant to M.G.L. c. 142A and 201 CMR 14.14; or(d) notice of claim form filed in Probate Court within one year of contractor, or subcontractor's death.(14)Administrator's Decision on Homeowner Eligibility. The Fund Administrator shall hold a written hearing to consider the evidence and render a decision on the homeowner's eligibility for reimbursement from the Fund, pursuant to 201 CMR 14.07.Amended by Mass Register Issue 1314, eff. 6/3/2016.