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<p align=center><b><font size="5">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION <br>
Washington, D.C.&nbsp; 20549</font></b></p>



<p align=center><b><font size="5">______________________</font></b></p>



<p align="center"><b><font size="5">FORM 8-K</font></b></p>

<p align=center style='text-align:center'><b><font size="4">CURRENT REPORT <br>
</font>Pursuant to Section 13 or 15(d) of the<br>
Securities Exchange Act of 1934</b></p>



<p align=center style='text-align:center'><b>______________________</b></p>





<p align=center style='text-align:center'>Date of Report (date of earliest event reported):&nbsp; <b>March
6, 2006</b></p>



<p align=center style='text-align:center'><b><font size="5">Home Solutions of America, Inc.<br>
</font></b>(Exact Name of Registrant as Specified in its Charter)</p>



<p align=center style='text-align:center'><b>______________________________________________________________________________</b></p>



<p><b>&nbsp;</b></p>

<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber1">
  <tr>
    <td width="276" align="center"><b>Delaware</b></td>
    <td width="411">

<p align="center"><b>0-22388</b></p>

    </td>
    <td width="298" align="center"><b>99-0273889</b></td>
  </tr>
  <tr>
    <td width="276" align="center">(State of Incorporation) </td>
    <td width="411">

<p align="center">(Commission File Number)</p>



    </td>
    <td width="298" align="center">(IRS Employer Identification No.)</td>
  </tr>
</table>



<p align="center"><b>1500 Dragon Street, Suite B, Dallas, Texas
75207 <br>
(</b>Address of Principal Executive Offices<b>) </b>(Zip Code)</p>



<p>Registrant's Telephone
Number, Including Area Code:<b> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (214) 623-8446</b></p>



<p align=center style='text-align:center'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u><b><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
</u></b>Former name or former address, if changed since last
report</p>



<p>Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):</p>



<p>[&nbsp;&nbsp; ] Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
[&nbsp;&nbsp; ] Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
[&nbsp;&nbsp; ] Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))<br>
[&nbsp;&nbsp; ] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</p>



<p>
__________________________________________________________________________________________</p>



<p>&nbsp;</p>



<hr color="#000080"><br clear=all
style='page-break-before:always'>






<p style='text-align:justify'><b>Item
1.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entry into a Material Definitive Agreement.&nbsp; </b></p>

<p style='text-align:justify'><b>&nbsp;</b></p>

<p style='text-align:justify'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>On March 6, 2006, Home
Solutions of America, Inc., a Delaware corporation (&quot;Home Solutions&quot; or the
&quot;Company&quot;) obtained a revolving line of credit (the &quot;Line of Credit&quot;) from Texas
Capital Bank, National Association (the &quot;Bank&quot;), in the amount of up to $10,000,000
through September 1, 2007.&nbsp; The Line of Credit was established under a Loan
Agreement entered into between Home Solutions and the Bank dated March 6, 2006
(the &quot;Loan Agreement&quot;).&nbsp; The proceeds of the Line of Credit will be used
primarily for working capital purposes.</p>



<p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject
to the provisions of the Loan Agreement, Home Solutions can borrow, repay and
reborrow principal under the Line of Credit from time to time during its term.&nbsp;
The principal amount outstanding under the Line of Credit may not exceed the
lesser of &nbsp;(a) $10,000,000, or (b) an amount equal to two times the Company's free
cash flow for the immediately preceding two calendar quarters (the &quot;Credit
Limit&quot;). &nbsp;For purposes of the Loan Agreement, the Company's &quot;free cash flow&quot; is
defined for each period of determination as (a) net income plus the sum of
interest, depreciation and amortization, less (b) distributions or dividends,
less (c)&nbsp;accounts receivable of Home Solutions and its subsidiaries unpaid
180 days or more after invoice date, plus (d) reserves specifically established
against the receivables described in (c) to the extent such reserves are
deducted in determining net income for the period in question.&nbsp; </p>



<p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
annual interest rate on the Line of Credit is equal to the higher of (a) the
Bank's prime rate of interest less one quarter of one percent (0.25%), or (b)
the sum of the federal funds rate, as determined pursuant to the Loan Agreement,
plus one-quarter of one percent (0.25%).&nbsp;
The initial interest rate on the Line of Credit on March 6, 2006 was equal to 7.25%.&nbsp; Interest payments on the outstanding principal
balance of the Line of Credit are due monthly beginning on April&nbsp;1, 2006.&nbsp;
The Line of Credit expires, and all outstanding principal must be repaid to the
Bank, on September 1, 2007.</p>



<p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
connection with the Line of Credit, Home Solutions paid the Bank a commitment
fee in the amount of $100,000. &nbsp;Home Solutions is also obligated to pay an
unused facility fee on the daily average unused amount of the Line of Credit
equal to one-half of one percent (0.5%) per annum, calculated and payable
quarterly in arrears.</p>



<p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Line of Credit is secured by substantially all of the assets of Home Solutions
and its subsidiaries and the capital stock of such subsidiaries pursuant to a Pledge
and Security Agreement (the &quot;Security Agreement&quot;).&nbsp; The Line of Credit is
guaranteed by the subsidiaries of Home Solutions pursuant to a Guaranty
Agreement (the &quot;Guaranty Agreement&quot;).</p>



<p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Under
the Loan Agreement, the Bank has agreed to issue letters of credit meeting the
requirements of the Bank set forth in the Loan Agreement for the benefit of Home
Solutions in an amount not to exceed $2,000,000 in the aggregate, and subject
to the amount of cash advanced under the Line of Credit plus amounts
outstanding under the letters of credit not being in excess of the Credit
Limit.&nbsp; Pursuant to the terms of the Loan Agreement, for each letter of credit
issued by the Bank, Home Solutions agrees to pay a letter of credit fee equal
to one and one-half percent (1.5%) of the face amount of the letter of credit,
but not less than $5,000, plus other fees charged under the Bank's then-current
policies.</p>



<p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Loan Agreement contains covenants, including financial covenants, with which
Home Solutions must comply.&nbsp; The financial covenants include a current assets
to current liabilities ratio and a debt service coverage ratio.&nbsp; With certain
exceptions, Home Solutions is prohibited under the Loan Agreement from
incurring any debt or permitting any liens to be placed on its assets or the
assets of its subsidiaries.&nbsp; Home Solutions agrees not to take certain actions,
including becoming a party to a merger or consolidation, acquiring assets, and
subject to certain exceptions, issuing securities.&nbsp; </p>



<p style='text-align:justify'>&nbsp;</p>



<p style='text-align:center'>2</p>



<hr color="#000080">
<p><br clear=all
style='page-break-before:always'>


</p>



<p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If
a default occurs under the Loan Agreement for Home Solutions' failure to pay
any amount when due, Home Solutions' breach of the Loan Agreement or another
event of default, the Bank may declare the Line of Credit to be due and payable
immediately.&nbsp; In such event, the Bank may exercise any rights or remedies it
may have, including foreclosure of Home Solutions' assets or the capital stock
of Home Solutions' subsidiaries, under the Security Agreement or enforcement of
its rights under the Guaranty Agreement.&nbsp; Any such event may materially impair Home
Solutions' ability to conduct its business.</p>



<p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
addition, Dale Mars, an officer and stockholder of the Company, agreed to
subordinate certain indebtedness owed to him by Home Solutions under an
outstanding promissory note in the principal amount of $1,578,000 to the Bank,
pursuant to a subordination agreement entered into by him in favor of the Bank.
</p>

<p style='text-align:justify'><b>&nbsp;</b></p>



<p style='text-autospace:ideograph-numeric ideograph-other'><b>Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial
Statements and Exhibits.</b></p>

<p style='text-autospace:ideograph-numeric ideograph-other'><b>&nbsp;</b></p>

<p style='text-autospace:ideograph-numeric ideograph-other'><b>(D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.</b></p>



<table class=MsoTableGrid border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse' width="100%">
 <tr>
  <td width=156 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Exhibit 10.1</p>
  </td>
  <td width=801 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Loan Agreement between Home Solutions of America,
  Inc. and Texas Capital Bank, National Association, dated March 6, 2006.</p>
  </td>
 </tr>
 <tr>
  <td width=156 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Exhibit 10.2</p>
  </td>
  <td width=801 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-align:justify;text-autospace:ideograph-numeric ideograph-other'>Revolving Credit Promissory Note issued by Home
  Solutions of America, Inc., to the order of Texas Capital Bank, National
  Association in the principal amount of $10,000,000.00 dated March 6, 2006.</p>
  </td>
 </tr>
 <tr>
  <td width=156 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Exhibit 10.3</p>
  </td>
  <td width=801 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Pledge and Security Agreement among Cornerstone
  Building and Remodeling, Inc., Fiber-Seal Systems, L.P., Home Solutions
  Restoration of Louisiana, Inc., P.W. Stephens, Inc., Southern Exposure
  Unlimited of Florida, Inc., S.E. Tops of Florida, Inc., Southern Exposure
  Holdings, Inc. and FSS Holding Corp. for the benefit of Texas Capital Bank,
  National Association, dated March 6, 2006.</p>
  </td>
 </tr>
 <tr>
  <td width=156 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Exhibit 10.4</p>
  </td>
  <td width=801 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Guaranty Agreement among Cornerstone Building and
  Remodeling, Inc., Fiber-Seal Systems, L.P., Home Solutions Restoration of
  Louisiana, Inc., P.W. Stephens, Inc., Southern Exposure Unlimited of Florida,
  Inc., S.E. Tops of Florida, Inc., Southern Exposure Holdings, Inc. and FSS
  Holding Corp. for the benefit of Texas Capital Bank, National Association,
  dated March 6, 2006.</p>
  </td>
 </tr>
</table>







<p style='text-autospace:ideograph-numeric ideograph-other'><b>Safe Harbor for Forward-Looking Statements</b> </p>



<p style='text-align:justify;text-autospace:ideograph-numeric ideograph-other'>Information set forth or incorporated by reference in
this document contains financial estimates and other &quot;forward-looking&quot;
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are typically preceded by words such as &quot;believes,&quot; &quot;
expects,&quot; &quot;anticipates,&quot; &quot;intends,&quot; &quot;will,&quot; &quot;may,&quot; &quot;should,&quot; or similar
expressions. These forward-looking statements are subject to risks and
uncertainties that may cause actual future experience and results to differ
materially from those discussed in these forward-looking statements. </p>



<p style='text-align:justify;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>



<p style='text-align:center;text-autospace:ideograph-numeric ideograph-other'>3</p>



<hr color="#000080"><br clear=all
style='page-break-before:always'>


<p align=center style='text-align:center'><b>SIGNATURES</b></p>



<p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home
Solutions of America, Inc.</p>







<p style='margin-left:3.0in;text-indent:-3.0in; margin-top:0; margin-bottom:0'>Date:&nbsp; March 10, 2006&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:&nbsp;
<i><u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Rick J. O'Brien&nbsp;&nbsp; </u></i><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>

<p style='margin-left:3.0in;text-indent:-3.0in; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Name:&nbsp; Rick J. O'Brien</p>

<p style='margin-left:3.5in;text-indent:-3.5in; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Title:&nbsp; Chief Operating Officer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>



















<p style='margin-left:3.5in;text-indent:-3.5in; margin-top:0; margin-bottom:0'>&nbsp;</p>



















<p style='margin-left:3.5in;text-indent:-3.5in; margin-top:0; margin-bottom:0'>&nbsp;</p>



















<p style='margin-left:3.5in;text-indent:-3.5in; margin-top:0; margin-bottom:0'>&nbsp;</p>



















<p style='margin-left:3.5in;text-indent:-3.5in; margin-top:0; margin-bottom:0'>&nbsp;</p>



















<p style='margin-left:3.5in;text-indent:-3.5in; margin-top:0; margin-bottom:0'>&nbsp;</p>



















<p style='margin-left:3.5in;text-indent:-3.5in; margin-top:0; margin-bottom:0' align="center">
4</p>



















<hr color="#000080"><br clear=all
style='page-break-before:always'>




<p align=center style='text-align:center'><b><u>Exhibit Index</u></b></p>



<p style='margin-left:.5in;text-align:justify;text-indent:-.5in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>

<table class=MsoTableGrid border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse' width="100%">
 <tr>
  <td width=165 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Exhibit 10.1</p>
  </td>
  <td width=792 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Loan Agreement between Home Solutions of America,
  Inc. and Texas Capital Bank, National Association, dated March 6, 2006.</p>
  </td>
 </tr>
 <tr>
  <td width=165 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Exhibit 10.2</p>
  </td>
  <td width=792 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-align:justify;text-autospace:ideograph-numeric ideograph-other'>Revolving Credit Promissory Note issued by Home
  Solutions of America, Inc., to the order of Texas Capital Bank, National
  Association in the principal amount of $10,000,000.00 dated March 6, 2006.</p>
  </td>
 </tr>
 <tr>
  <td width=165 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Exhibit 10.3</p>
  </td>
  <td width=792 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Pledge and Security Agreement among Cornerstone
  Building and Remodeling, Inc., Fiber-Seal Systems, L.P., Home Solutions
  Restoration of Louisiana, Inc., P.W. Stephens, Inc., Southern Exposure
  Unlimited of Florida, Inc., S.E. Tops of Florida, Inc., Southern Exposure
  Holdings, Inc. and FSS Holding Corp. for the benefit of Texas Capital Bank,
  National Association, dated March 6, 2006.</p>
  </td>
 </tr>
 <tr>
  <td width=165 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Exhibit 10.4</p>
  </td>
  <td width=792 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='text-autospace:ideograph-numeric ideograph-other'>Guaranty Agreement among Cornerstone Building and
  Remodeling, Inc., Fiber-Seal Systems, L.P., Home Solutions Restoration of
  Louisiana, Inc., P.W. Stephens, Inc., Southern Exposure Unlimited of Florida,
  Inc., S.E. Tops of Florida, Inc., Southern Exposure Holdings, Inc. and FSS
  Holding Corp. for the benefit of Texas Capital Bank, National Association,
  dated March 6, 2006.</p>
  </td>
 </tr>
</table>









<p>&nbsp;</p>











</body>

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{"company-data": {"conformed-name": "HOME SOLUTIONS OF AMERICA INC", "cik": "0000855424", "assigned-sic": "8741", "irs-number": "990273889", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-31711", "film-number": "06679359"}, "business-address": {"street1": "5565 RED BIRD CENTER DRIVE, SUITE 150", "street2": "-", "city": "DALLAS", "state": "TX", "zip": "75237", "phone": "2146238446"}, "mail-address": {"street1": "5565 RED BIRD CENTER DRIVE, SUITE 150", "street2": "-", "city": "DALLAS", "state": "TX", "zip": "75237"}, "former-company": [{"former-conformed-name": "NEXTGEN COMMUNICATIONS CORP", "date-changed": "20010814"}, {"former-conformed-name": "U S INDUSTRIAL SERVICES INC", "date-changed": "19980629"}, {"former-conformed-name": "EIF HOLDINGS INC", "date-changed": "19930621"}]}
Prepared by E-Services - www.edgar2.com
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
______________________
Date of Report (date of earliest event reported):
March
6, 2006
Home Solutions of America, Inc.
(Exact Name of Registrant as Specified in its Charter)
______________________________________________________________________________
Delaware
0-22388
99-0273889
(State of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
1500 Dragon Street, Suite B, Dallas, Texas
75207
(
Address of Principal Executive Offices
)
(Zip Code)
Registrant's Telephone
Number, Including Area Code:
(214) 623-8446
Former name or former address, if changed since last
report
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
[   ] Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[   ] Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[   ] Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
[   ] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
__________________________________________________________________________________________
Item
1.01.       Entry into a Material Definitive Agreement.
On March 6, 2006, Home
Solutions of America, Inc., a Delaware corporation ("Home Solutions" or the
"Company") obtained a revolving line of credit (the "Line of Credit") from Texas
Capital Bank, National Association (the "Bank"), in the amount of up to $10,000,000
through September 1, 2007.  The Line of Credit was established under a Loan
Agreement entered into between Home Solutions and the Bank dated March 6, 2006
(the "Loan Agreement").  The proceeds of the Line of Credit will be used
primarily for working capital purposes.
Subject
to the provisions of the Loan Agreement, Home Solutions can borrow, repay and
reborrow principal under the Line of Credit from time to time during its term. 
The principal amount outstanding under the Line of Credit may not exceed the
lesser of  (a) $10,000,000, or (b) an amount equal to two times the Company's free
cash flow for the immediately preceding two calendar quarters (the "Credit
Limit").  For purposes of the Loan Agreement, the Company's "free cash flow" is
defined for each period of determination as (a) net income plus the sum of
interest, depreciation and amortization, less (b) distributions or dividends,
less (c) accounts receivable of Home Solutions and its subsidiaries unpaid
180 days or more after invoice date, plus (d) reserves specifically established
against the receivables described in (c) to the extent such reserves are
deducted in determining net income for the period in question.
The
annual interest rate on the Line of Credit is equal to the higher of (a) the
Bank's prime rate of interest less one quarter of one percent (0.25%), or (b)
the sum of the federal funds rate, as determined pursuant to the Loan Agreement,
plus one-quarter of one percent (0.25%). 
The initial interest rate on the Line of Credit on March 6, 2006 was equal to 7.25%.  Interest payments on the outstanding principal
balance of the Line of Credit are due monthly beginning on April 1, 2006. 
The Line of Credit expires, and all outstanding principal must be repaid to the
Bank, on September 1, 2007.
In
connection with the Line of Credit, Home Solutions paid the Bank a commitment
fee in the amount of $100,000.  Home Solutions is also obligated to pay an
unused facility fee on the daily average unused amount of the Line of Credit
equal to one-half of one percent (0.5%) per annum, calculated and payable
quarterly in arrears.
The
Line of Credit is secured by substantially all of the assets of Home Solutions
and its subsidiaries and the capital stock of such subsidiaries pursuant to a Pledge
and Security Agreement (the "Security Agreement").  The Line of Credit is
guaranteed by the subsidiaries of Home Solutions pursuant to a Guaranty
Agreement (the "Guaranty Agreement").
Under
the Loan Agreement, the Bank has agreed to issue letters of credit meeting the
requirements of the Bank set forth in the Loan Agreement for the benefit of Home
Solutions in an amount not to exceed $2,000,000 in the aggregate, and subject
to the amount of cash advanced under the Line of Credit plus amounts
outstanding under the letters of credit not being in excess of the Credit
Limit.  Pursuant to the terms of the Loan Agreement, for each letter of credit
issued by the Bank, Home Solutions agrees to pay a letter of credit fee equal
to one and one-half percent (1.5%) of the face amount of the letter of credit,
but not less than $5,000, plus other fees charged under the Bank's then-current
policies.
The
Loan Agreement contains covenants, including financial covenants, with which
Home Solutions must comply.  The financial covenants include a current assets
to current liabilities ratio and a debt service coverage ratio.  With certain
exceptions, Home Solutions is prohibited under the Loan Agreement from
incurring any debt or permitting any liens to be placed on its assets or the
assets of its subsidiaries.  Home Solutions agrees not to take certain actions,
including becoming a party to a merger or consolidation, acquiring assets, and
subject to certain exceptions, issuing securities.
2
If
a default occurs under the Loan Agreement for Home Solutions' failure to pay
any amount when due, Home Solutions' breach of the Loan Agreement or another
event of default, the Bank may declare the Line of Credit to be due and payable
immediately.  In such event, the Bank may exercise any rights or remedies it
may have, including foreclosure of Home Solutions' assets or the capital stock
of Home Solutions' subsidiaries, under the Security Agreement or enforcement of
its rights under the Guaranty Agreement.  Any such event may materially impair Home
Solutions' ability to conduct its business.
In
addition, Dale Mars, an officer and stockholder of the Company, agreed to
subordinate certain indebtedness owed to him by Home Solutions under an
outstanding promissory note in the principal amount of $1,578,000 to the Bank,
pursuant to a subordination agreement entered into by him in favor of the Bank.
Item 9.01    Financial
Statements and Exhibits.
(D)       Exhibits.
Exhibit 10.1
Loan Agreement between Home Solutions of America,
  Inc. and Texas Capital Bank, National Association, dated March 6, 2006.
Exhibit 10.2
Revolving Credit Promissory Note issued by Home
  Solutions of America, Inc., to the order of Texas Capital Bank, National
  Association in the principal amount of $10,000,000.00 dated March 6, 2006.
Exhibit 10.3
Pledge and Security Agreement among Cornerstone
  Building and Remodeling, Inc., Fiber-Seal Systems, L.P., Home Solutions
  Restoration of Louisiana, Inc., P.W. Stephens, Inc., Southern Exposure
  Unlimited of Florida, Inc., S.E. Tops of Florida, Inc., Southern Exposure
  Holdings, Inc. and FSS Holding Corp. for the benefit of Texas Capital Bank,
  National Association, dated March 6, 2006.
Exhibit 10.4
Guaranty Agreement among Cornerstone Building and
  Remodeling, Inc., Fiber-Seal Systems, L.P., Home Solutions Restoration of
  Louisiana, Inc., P.W. Stephens, Inc., Southern Exposure Unlimited of Florida,
  Inc., S.E. Tops of Florida, Inc., Southern Exposure Holdings, Inc. and FSS
  Holding Corp. for the benefit of Texas Capital Bank, National Association,
  dated March 6, 2006.
Safe Harbor for Forward-Looking Statements
Information set forth or incorporated by reference in
this document contains financial estimates and other "forward-looking"
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are typically preceded by words such as "believes," "
expects," "anticipates," "intends," "will," "may," "should," or similar
expressions. These forward-looking statements are subject to risks and
uncertainties that may cause actual future experience and results to differ
materially from those discussed in these forward-looking statements.
3
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Home
Solutions of America, Inc.
Date:  March 10, 2006                                                   By:
/s/ Rick J. O'Brien
Name:  Rick J. O'Brien
Title:  Chief Operating Officer
4
Exhibit Index
Exhibit 10.1
Loan Agreement between Home Solutions of America,
  Inc. and Texas Capital Bank, National Association, dated March 6, 2006.
Exhibit 10.2
Revolving Credit Promissory Note issued by Home
  Solutions of America, Inc., to the order of Texas Capital Bank, National
  Association in the principal amount of $10,000,000.00 dated March 6, 2006.
Exhibit 10.3
Pledge and Security Agreement among Cornerstone
  Building and Remodeling, Inc., Fiber-Seal Systems, L.P., Home Solutions
  Restoration of Louisiana, Inc., P.W. Stephens, Inc., Southern Exposure
  Unlimited of Florida, Inc., S.E. Tops of Florida, Inc., Southern Exposure
  Holdings, Inc. and FSS Holding Corp. for the benefit of Texas Capital Bank,
  National Association, dated March 6, 2006.
Exhibit 10.4
Guaranty Agreement among Cornerstone Building and
  Remodeling, Inc., Fiber-Seal Systems, L.P., Home Solutions Restoration of
  Louisiana, Inc., P.W. Stephens, Inc., Southern Exposure Unlimited of Florida,
  Inc., S.E. Tops of Florida, Inc., Southern Exposure Holdings, Inc. and FSS
  Holding Corp. for the benefit of Texas Capital Bank, National Association,
  dated March 6, 2006.