What is the maximum administrative penalty for contractors who violate the policies of the Residential Recovery Fund?

The maximum administrative penalty for contractors who violate the policies of the Residential Recovery Fund is indeed not more than $200. This amount is established to ensure that penalties are within reasonable limits, allowing for enforcement while also being manageable for contractors. Setting a lower maximum penalty encourages compliance with the fund's policies without imposing excessively harsh financial burdens.

The other amounts suggested in the choices are not aligned with the established regulations. Each reflects a larger penalty, which would not adhere to the specific guidelines set forth under the Residential Recovery Fund's policies. Therefore, the correct understanding of the penalties and their limits is crucial for contractors to navigate their obligations and the potential consequences of violations effectively.