<html>

<head>


<title>UNITED STATES</title>



</head>

<body lang=EN-US>



<p align=center style='text-align:center'><b><font size="2">&nbsp;</font></b></p>

<p align=center style='text-align:center'><b><font size="2">&nbsp;</font></b></p>









<p align=center style='text-align:center'><b><font size="4">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION <br>
Washington</font></b><font size="4"><b>,
 D.C.</b></font><b><font size="4">&nbsp; 20549</font></b></p>



<p align=center style='text-align:center'><b><font size="2">______________________</font></b></p>



<p align="center"><b><font size="4">FORM 8-K</font></b></p>

<p align=center style='text-align:center'><b>CURRENT REPORT <br>
<font size="2">Pursuant to Section 13 or 15(d) of the<br>
Securities Exchange Act of 1934</font></b></p>



<p align=center style='text-align:center'><b><font size="2">______________________</font></b></p>





<p align=center style='text-align:center'><font size="2">Date of Report (date of earliest event reported):&nbsp;
</font> <b><font size="2">July
31, 2006</font></b></p>



<p align=center style='text-align:center'><b><font size="5">Home Solutions of America, Inc.<br>
</font></b><font size="2">(Exact Name of Registrant as Specified in its Charter)</font></p>



<p align=center style='text-align:center'><b><font size="2">______________________________________________________________________________</font></b></p>



<table border="0" width="100%" id="table1">
	<tr>
		<td align="left" nowrap><b><font size="2">Delaware</font></b><font size="2">&nbsp;
		</font></td>
		<td align="center" nowrap> <b><font size="2">0-22388</font></b></td>
		<td align="center" nowrap width="399"> <b><font size="2">99-0273889</font></b></td>
	</tr>
	<tr>
		<td align="left" nowrap><font size="2">(State of Incorporation)</font></td>
		<td align="center" nowrap><font size="2">(Commission File Number) </font>
		</td>
		<td align="center" nowrap width="399"><font size="2">(IRS Employer
		Identification No.)</font></td>
	</tr>
</table>



<p align="center"><b><font size="2">1500 Dragon Street, Suite B, Dallas, Texas 75207
<br>
<i>(</i></font></b><font size="2">Address of Principal Executive Offices</font><b><i><font size="2">)</font></i></b></p>
<table border="0" width="100%" id="table2">
	<tr>
		<td width="548"><font size="2">Registrant's Telephone
Number, Including Area Code:</font><b><font size="2"> &nbsp;&nbsp;&nbsp;</font></b></td>
		<td><b> <font size="2">(214) 623-8446</font></b></td>
	</tr>
</table>



<p align=center style='text-align:center'><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font> </u><b><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font> </u></b></p>

<p align=center style='text-align:center'><font size="2">Former name of address, if changed since last report</font></p>



<p><font size="2">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:</font></p>



<p style="margin-top: 0; margin-bottom: 0.001pt"><font size="2">[&nbsp;&nbsp; ] Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>

<p style="margin-top: 0; margin-bottom: 0.001pt"><font size="2">[&nbsp;&nbsp; ] Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>

<p style="margin-top: 0; margin-bottom: 0.001pt"><font size="2">[&nbsp;&nbsp; ] Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</font></p>

<p style="margin-top: 0; margin-bottom: 0.001pt"><font size="2">[&nbsp;&nbsp; ] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>



<p>&nbsp;</p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>





<font size="2">





<br clear=all
style='page-break-before:always'>














</font>














<p style='text-align:justify'><b><font size="2">Item 1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entry
into a Material Definitive Agreement.&nbsp; </font> </b></p>



<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On July 31, 2006,
Home Solutions of America, Inc., a Delaware corporation (&quot;Home Solutions&quot;), agreed
to acquire all of the capital stock of Fireline Restoration, Inc., a Florida
corporation engaged in the business of providing restoration and remediation
services to commercial and residential properties (&quot;Fireline&quot;), pursuant to the
terms of a stock purchase agreement (the &quot;Purchase Agreement&quot;) among Home
Solutions, Fireline and Brian Marshall, the owner of Fireline (&quot;Mr. Marshall&quot;).&nbsp;
The acquisition was completed on July 31, 2006.</font></p>



<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fireline
acquisition and the Purchase Agreement, the Note and the Employment Agreement
have an effective date of July 1, 2006, pursuant to the agreement of the
parties.&nbsp; The Purchase Agreement contains various representations, warranties,
covenants and agreements, and indemnity obligations of the parties.&nbsp; </font> </p>



<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The purchase
price paid to Mr. Marshall for the Fireline stock consisted of (i) $11,450,000
in cash, (ii) a $21,650,000 unsecured promissory note issued by Home Solutions (the
&quot;Note&quot;), and (iii) 4,000,000 shares (the &quot;Shares&quot;) of Home Solutions' common
stock.&nbsp; Mr. Marshall will continue to serve as the President of Fireline
pursuant to the terms of an Employment Agreement entered into among Mr.
Marshall, Fireline and Home Solutions (the &quot;Employment Agreement&quot;).&nbsp; Home
Solutions also paid Mr. Marshall $50,000 in consideration of Mr. Marshall's
agreement not to compete with Home Solutions and its subsidiaries, subject to certain
exceptions contained in the Purchase Agreement and the Employment Agreement.&nbsp;
</font> </p>



<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Payments of accrued
interest on the outstanding balance of the Note are due on the first day of the
month commencing on September 1, 2006.&nbsp; Interest on the outstanding balance of
the Note accrues and compounds monthly at the prime rate of interest (as quoted
in <i>The Wall Street Journal</i> from time to time) until November 17, 2006.&nbsp;
The Note is payable on November 17, 2006; however, if the Note is not paid in
full by that date, the interest rate increases to 12% and the maturity date of
the Note automatically extends to January 31, 2007.&nbsp; If certain designated outstanding
accounts receivable due to Fireline are collected in whole or in part while the
Note is outstanding, Home Solutions must make a payment on the Note equal to the
amount collected within five business days after receipt of the collected
amount.&nbsp; An event of default occurs under the Note if Home Solutions fails to
cause Mr. Marshall to be removed from a personal guaranty of certain indebtedness
owed by Fireline to its lender under a loan agreement on or before November 17,
2006, or if Home Solutions fails to pay any amount when due under the Note and
such failure continues for ten days thereafter, unless payment is automatically
abated under the terms of the Note due to the pending resolution of a dispute
among the parties.&nbsp; </font> </p>



<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Under the
Purchase Agreement, Mr. Marshall agrees to pay monthly interest to Home
Solutions on the uncollected balance of certain Fireline receivables (net of
bad debt reserve) if such receivables are not collected on or before January
31, 2007, at a rate equal to the prime rate of interest (as quoted in <i>The
Wall Street Journal</i> from time to time) if the Note is outstanding, or at a
rate equal to 12% if the Note is paid in full.&nbsp; Mr. Marshall further agrees to
pay any outstanding balance of such receivables (net of bad debt reserve) to
Home Solutions on or before June 30, 2007.</font></p>



<div>

<table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
 <tr>
  <td valign=top align=left style='padding-top:0pt;padding-right:0pt;
  padding-bottom:0pt;padding-left:0pt'>
  <p><font size="2">2</font></p>
  </td>
 </tr>
</table>

</div>

<font size="2">

<br clear=ALL>



</font>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<font size="2">



<br clear=all
style='page-break-before:always'>










</font>










<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the
terms of the Employment Agreement, Mr. Marshall is employed by Fireline as its
President for an initial three year term, which may be extended by Mr. Marshall
for two additional one year terms.&nbsp; Mr. Marshall's annual salary is $300,000
for fiscal years 2006 and 2007, subject to increase for future years.&nbsp; Pursuant
to the terms of the Employment Agreement, the Fireline employees (including Mr.
Marshall) are entitled to an annual aggregate bonus equal to 5% of Fireline's earnings before interest, taxes,
depreciation and amortization in a given year, which amount shall be allocated
among Mr. Marshall and the Fireline employees as determined by Mr. Marshall.&nbsp;
The Employment Agreement further provides that Mr. Marshall is entitled to
receive reimbursement of business expenses, employee benefits, a vehicle
allowance of up to $1,500 per month plus operation and maintenance costs and expenses,
and a rental allowance of up to $13,200 per month.&nbsp; The Employment Agreement
may be terminated by Mr. Marshall for good reason or by Fireline without cause,
in which case Mr. Marshall is entitled to receive his salary and benefits
through the remainder of the employment term.&nbsp; The Employment Agreement may be
terminated by Mr. Marshall without good reason or by Fireline with cause, in
which case Mr. Marshall is entitled to receive his salary through the date of
termination.&nbsp; Mr. Marshall agrees not to compete with Home Solutions or its
subsidiaries for a period of two years following the date of his termination of
employment unless he is terminated by Fireline without cause or he terminates his
employment for good reason, in which case, the noncompetition covenants
automatically terminate.</font></p>



<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the
Purchase Agreement, Home Solutions has agreed to file a registration statement with
the Securities and Exchange Commission (the &quot;SEC&quot;) registering the Shares for resale
under the Securities Act of 1933, as amended, within ten (10) business days
after the closing.&nbsp; If the Shares are not registered within 150 days following
the date the registration statement is filed with the SEC, Home Solutions must
pay Mr. Marshall monthly interest on the value of the unregistered Shares,
based on the thirty-day trailing average of the closing price of the Home
Solutions' common stock at the prime rate of interest (as quoted in <i>The Wall
Street Journal</i> from time to time).</font></p>



<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Purchase
Agreement contemplates that within 30 days after the closing date, Home
Solutions will appoint Mr. Marshall, or another representative of Fireline
acceptable to Home Solutions' board of directors, as a member of Home Solutions'
board of directors, and that Home Solutions will cause Mr. Marshall (or his
representative) to be nominated to serve on its board for one additional term;
provided, that Home Solutions has no obligation to appoint Mr. Marshall (or his
representative) to its board or nominate such person to serve for an additional
board term, if such appointment or nomination would cause Home Solutions to
violate applicable SEC or Nasdaq requirements, if Mr. Marshall is no longer
employed by Fireline or owns less than 50% of the Shares, or if Mr. Marshall
(or the Fireline representative) commits an act of fraud, theft, embezzlement,
or crime of moral turpitude. </font> </p>



<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In connection
with the acquisition of Fireline, Home Solutions obtained the consent of its
lender, Texas Capital Bank (&quot;TCB&quot;), which consent was required pursuant to the
terms of the loan agreement between Home Solutions and TCB pursuant to which
Home Solutions obtained a $10,000,000 line of credit from TCB in March 2006
(the &quot;TCB Line of Credit&quot;).&nbsp; In connection with obtaining TCB's consent, Home
Solutions agreed to pay TCB a $15,000 fee and agreed to cause Mr. Marshall to
execute a subordination agreement, pursuant to which the Note shall be subordinated
to Home Solutions' obligations to TCB, on or before October&nbsp;15, 2006.&nbsp;
</font> </p>

<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The obligations
of Fireline will continue in full force and effect after the acquisition.&nbsp;
Certain of these obligations include indebtedness owed by Fireline to its lender
under a loan agreement that is personally guaranteed by Mr. Marshall, a personal
property lease for an aircraft owned indirectly by Mr. Marshall,&nbsp; the
lease of Fireline's office headquarters indirectly owned by Mr. Marshall, and
various vehicle, equipment, personal property and real property leases.&nbsp; Mr.
Marshall agreed to continue to guarantee the indebtedness owed by Fireline to
its lender until November 17, 2006, and Home Solutions agreed to cause Mr.
Marshall to be removed from his personal guaranty of such indebtedness by that
date, unless the loan obligations have terminated.</font></p>



<p style='text-align:justify;page-break-after:avoid'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant
to the Purchase Agreement, Home Solutions has agreed to grant stock options
under Home Solutions' stock plans to certain key employees of Fireline (other
than Mr. Marshall), upon such terms and conditions as are determined by Home
Solutions, but not to exceed options exercisable for an aggregate of 300,000
shares of Home Solutions' common stock.</font></p>



<p style='text-align:justify;page-break-after:avoid'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Purchase Agreement, the Note and the Employment Agreement are attached to this
Form 8-K as exhibits 2.01, 10.01 and 10.02, respectively.</font></p>

<p style='text-align:justify'><b><font size="2">Item 2.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Completion
of Acquisition or Disposition of Assets.&nbsp;&nbsp;&nbsp; </font> </b></p>



<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On July 31, 2006,
Home Solutions completed the acquisition of the capital stock of Fireline as
contemplated by the Purchase Agreement. Please see the disclosures regarding
the Purchase Agreement and the transactions contemplated thereby described in
Item 1.01 above, which is hereby incorporated into this Item 2.01 by reference.</font></p>



<p style='text-align:justify'><b><font size="2">Item 2.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant.</font></b></p>
<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On July 31, 2006,
Home Solutions issued a promissory note in the principal amount of $21,650,000
to the former owner of Fireline, in connection with the acquisition of the
capital stock of Fireline. &nbsp;Please see the disclosures regarding the Purchase
Agreement and the transactions contemplated thereby described in Item 1.01
above, which is hereby incorporated into this Item 2.03 by reference.</font></p>



<div>

<table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
 <tr>
  <td valign=top align=left style='padding-top:0pt;padding-right:0pt;
  padding-bottom:0pt;padding-left:0pt'>
  <p><font size="2">3</font></p>
  </td>
 </tr>
</table>

</div>

<font size="2">

<br clear=ALL>



</font>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<font size="2">



<br clear=all
style='page-break-before:always'>










</font>



<p style='text-align:justify;page-break-after:avoid'><b><font size="2">Item 3.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unregistered
Sales of Equity Securities.&nbsp; </font> </b></p>



<p style='text-align:justify;page-break-after:avoid'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
July 31, 2006, Home Solutions issued 4,000,000 Shares of Home Solutions' common
stock to Mr. Marshall in connection with the acquisition of the capital stock
of Fireline.&nbsp; The common stock was issued in a private transaction in reliance
upon the exemption from registration contained in Section 4(2) of the
Securities Act of 1933, as amended. &nbsp;Please see the disclosures regarding the
Purchase Agreement and the transactions contemplated thereby in Item 1.01
above, which is hereby incorporated into this Item 3.02 by reference.</font></p>





<p><b><font size="2">Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and
Exhibits.</font></b></p>



<p><b><font size="2">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements of business acquired.</font></b></p>

<p style='text-align:justify'><font size="2">The financial statements required
by this Item, if any, will be filed by an amendment to this initial report on
Form 8-K as soon as practicable, but in no event later than 71 days after this
initial report on Form 8-K is required to be filed.</font></p>

<p><b><font size="2">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proforma financial information.</font></b></p>



<p style='text-align:justify'><font size="2">Pro forma information &nbsp;required
by this Item, if any, will be filed by an amendment to this initial report on
Form 8-K as soon as practicable, but in no event later than 71 days after this
initial report on Form 8-K is required to be filed.</font></p>



<p style='margin-left:0pt;text-indent:0pt'><b><font size="2">(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><font size="2"><b>Shell company transactions</b>.&nbsp; Not Applicable.</font></p>

<p style='margin-left:0pt;text-indent:0pt'><b><font size="2">(D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.</font></b></p>

<table border="0" width="100%" id="table3" cellspacing="3" cellpadding="3">
	<tr>
		<td><font size="2">2.01</font></td>
		<td width="1187">

<p style='margin-left:36.0pt;text-align:justify;text-indent:
-36.0pt'><font size="2">Stock Purchase Agreement among Fireline Restoration,
Inc., Brian Marshall, and Home Solutions of America, Inc. dated July 31, 2006.&nbsp;
</font>
</p>



		</td>
	</tr>
	<tr>
		<td><font size="2">10.01</font></td>
		<td width="1187">



<p style='margin-left:36.0pt;text-align:justify;text-indent:
-36.0pt;page-break-after:avoid'><font size="2">Promissory Note issued by Home
Solutions of America, Inc. to Brian Marshall in the principal amount of
$21,650,000, dated as of July 1, 2006 (the effective date).</font></p>



		</td>
	</tr>
	<tr>
		<td><font size="2">10.02</font></td>
		<td width="1187">



<p style='margin-left:36.0pt;text-align:justify;text-indent:
-36.0pt;page-break-after:avoid'><font size="2">Employment Agreement among Home
Solutions of America, Inc., Fireline Restoration, Inc. and Brian Marshall dated
as of July 1, 2006 (the effective date).</font></p>



		</td>
	</tr>
</table>
&nbsp;<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font size="2">4<br>
&nbsp;</font></p>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<font size="2">



<br clear=all
style='page-break-before:always'>










</font>










<p align=center style='text-align:center'><b><font size="2">SIGNATURES</font></b></p>



<p style='text-align:justify'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&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.</font></p>



<table border="0" width="100%" id="table5">
	<tr>
		<td colspan="2" align="center"><font size="2">Home
Solutions of America, Inc.</font></td>
	</tr>
	<tr>
		<td colspan="2" align="center">&nbsp;</td>
	</tr>
	<tr>
		<td colspan="2" align="center">&nbsp;</td>
	</tr>
	<tr>
		<td width="43%" nowrap>







<p style='margin-left:216.0pt;text-indent:-216.0pt'><font size="2">Date:&nbsp; August
4, 2006&nbsp;</font></p>

		</td>
		<td width="56%" nowrap><font size="2">By:&nbsp;
<i><u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Rick J. O'Brien&nbsp;&nbsp; </u></i></font><u>
		<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
		</font> </u></td>
	</tr>
	<tr>
		<td width="43%" nowrap>

<p style='margin-left:216.0pt;text-indent:-216.0pt'>&nbsp;</p>

		</td>
		<td width="56%" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
		Name:&nbsp; Rick J. O'Brien</font></td>
	</tr>
	<tr>
		<td width="43%" nowrap>

<p style='margin-left:252.0pt;text-indent:-252.0pt'>&nbsp;</p>







		</td>
		<td width="56%" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
		Title:&nbsp; President and Chief Operating Officer</font></td>
	</tr>
</table>







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











<div>

<table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
 <tr>
  <td valign=top align=left style='padding-top:0pt;padding-right:0pt;
  padding-bottom:0pt;padding-left:0pt'>
  <p><font size="2">5</font></p>
  </td>
 </tr>
</table>

</div>

<font size="2">

<br clear=ALL>



</font>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>



<font size="2">



<br clear=all
style='page-break-before:always'>












</font>












<p align=center style='text-align:center'><b><u><font size="2">Exhibit Index</font></u></b></p>



<table border="0" width="100%" id="table4" cellspacing="3" cellpadding="3">
	<tr>
		<td><font size="2">2.01</font></td>
		<td width="1187">

<p style='margin-left:36.0pt;text-align:justify;text-indent:
-36.0pt'><font size="2">Stock Purchase Agreement among Fireline Restoration,
Inc., Brian Marshall, and Home Solutions of America, Inc. dated July 31, 2006.&nbsp;
</font>
</p>



		</td>
	</tr>
	<tr>
		<td><font size="2">10.01</font></td>
		<td width="1187">



<p style='margin-left:36.0pt;text-align:justify;text-indent:
-36.0pt;page-break-after:avoid'><font size="2">Promissory Note issued by Home
Solutions of America, Inc. to Brian Marshall in the principal amount of
$21,650,000, dated as of July 1, 2006 (the effective date).</font></p>



		</td>
	</tr>
	<tr>
		<td><font size="2">10.02</font></td>
		<td width="1187">



<p style='margin-left:36.0pt;text-align:justify;text-indent:
-36.0pt;page-break-after:avoid'><font size="2">Employment Agreement among Home
Solutions of America, Inc., Fireline Restoration, Inc. and Brian Marshall dated
as of July 1, 2006 (the effective date).</font></p>



		</td>
	</tr>
</table>













<div>

<p style="text-align: justify; text-indent: -36.0pt; page-break-after: avoid; margin-left: 36.0pt">&nbsp;</p>
<p style="text-align: justify; text-indent: -36.0pt; page-break-after: avoid; margin-left: 36.0pt">&nbsp;</p>
<p style="text-align: justify; text-indent: -36.0pt; page-break-after: avoid; margin-left: 36.0pt">&nbsp;</p>
<p style="text-align: justify; text-indent: -36.0pt; page-break-after: avoid; margin-left: 36.0pt">&nbsp;</p>
<p style="text-align: justify; text-indent: -36.0pt; page-break-after: avoid; margin-left: 36.0pt">&nbsp;</p>
<p style="text-align: justify; text-indent: -36.0pt; page-break-after: avoid; margin-left: 36.0pt">&nbsp;</p>
<p style="text-align: justify; text-indent: -36.0pt; page-break-after: avoid; margin-left: 36.0pt">&nbsp;</p>
<p style="text-align: justify; text-indent: -36.0pt; page-break-after: avoid; margin-left: 36.0pt">&nbsp;</p>
<p style="text-align: justify; text-indent: -36.0pt; page-break-after: avoid; margin-left: 36.0pt">&nbsp;</p>
<p style="text-align: justify; text-indent: -36.0pt; page-break-after: avoid; margin-left: 36.0pt">&nbsp;</p>
<p style="text-align: justify; text-indent: -36.0pt; page-break-after: avoid; margin-left: 36.0pt">&nbsp;</p>

<table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
 <tr>
  <td valign=top align=left style='padding-top:0pt;padding-right:0pt;
  padding-bottom:0pt;padding-left:0pt'>
  <p><font size="2">6</font></p>
  </td>
 </tr>
</table>

</div>

<font size="2">

<br clear=ALL>



</font>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>







</body>

</html>
[{"type": "8-K", "sequence": "1", "filename": "hsoa8k1.htm", "secsgml_size_bytes": 27573}]
{"company-data": {"conformed-name": "HOME SOLUTIONS OF AMERICA INC", "cik": "0000855424", "assigned-sic": "8741", "irs-number": "990273889", "state-of-incorporation": "DE", "fiscal-year-end": "0406"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-31711", "film-number": "061006354"}, "business-address": {"street1": "1500 DRAGON STREET - SUITE B", "street2": "-", "city": "DALLAS", "state": "TX", "zip": "75207", "phone": "214-623-8446"}, "mail-address": {"street1": "1500 DRAGON STREET - SUITE B", "street2": "-", "city": "DALLAS", "state": "TX", "zip": "75207"}, "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"}]}
UNITED STATES
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):
July
31, 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
)
Registrant's Telephone
Number, Including Area Code:
(214) 623-8446
Former name of 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:
[   ] 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 July 31, 2006,
Home Solutions of America, Inc., a Delaware corporation ("Home Solutions"), agreed
to acquire all of the capital stock of Fireline Restoration, Inc., a Florida
corporation engaged in the business of providing restoration and remediation
services to commercial and residential properties ("Fireline"), pursuant to the
terms of a stock purchase agreement (the "Purchase Agreement") among Home
Solutions, Fireline and Brian Marshall, the owner of Fireline ("Mr. Marshall"). 
The acquisition was completed on July 31, 2006.
The Fireline
acquisition and the Purchase Agreement, the Note and the Employment Agreement
have an effective date of July 1, 2006, pursuant to the agreement of the
parties.  The Purchase Agreement contains various representations, warranties,
covenants and agreements, and indemnity obligations of the parties.
The purchase
price paid to Mr. Marshall for the Fireline stock consisted of (i) $11,450,000
in cash, (ii) a $21,650,000 unsecured promissory note issued by Home Solutions (the
"Note"), and (iii) 4,000,000 shares (the "Shares") of Home Solutions' common
stock.  Mr. Marshall will continue to serve as the President of Fireline
pursuant to the terms of an Employment Agreement entered into among Mr.
Marshall, Fireline and Home Solutions (the "Employment Agreement").  Home
Solutions also paid Mr. Marshall $50,000 in consideration of Mr. Marshall's
agreement not to compete with Home Solutions and its subsidiaries, subject to certain
exceptions contained in the Purchase Agreement and the Employment Agreement.
Payments of accrued
interest on the outstanding balance of the Note are due on the first day of the
month commencing on September 1, 2006.  Interest on the outstanding balance of
the Note accrues and compounds monthly at the prime rate of interest (as quoted
in
The Wall Street Journal
from time to time) until November 17, 2006. 
The Note is payable on November 17, 2006; however, if the Note is not paid in
full by that date, the interest rate increases to 12% and the maturity date of
the Note automatically extends to January 31, 2007.  If certain designated outstanding
accounts receivable due to Fireline are collected in whole or in part while the
Note is outstanding, Home Solutions must make a payment on the Note equal to the
amount collected within five business days after receipt of the collected
amount.  An event of default occurs under the Note if Home Solutions fails to
cause Mr. Marshall to be removed from a personal guaranty of certain indebtedness
owed by Fireline to its lender under a loan agreement on or before November 17,
2006, or if Home Solutions fails to pay any amount when due under the Note and
such failure continues for ten days thereafter, unless payment is automatically
abated under the terms of the Note due to the pending resolution of a dispute
among the parties.
Under the
Purchase Agreement, Mr. Marshall agrees to pay monthly interest to Home
Solutions on the uncollected balance of certain Fireline receivables (net of
bad debt reserve) if such receivables are not collected on or before January
31, 2007, at a rate equal to the prime rate of interest (as quoted in
The
Wall Street Journal
from time to time) if the Note is outstanding, or at a
rate equal to 12% if the Note is paid in full.  Mr. Marshall further agrees to
pay any outstanding balance of such receivables (net of bad debt reserve) to
Home Solutions on or before June 30, 2007.
2
Pursuant to the
terms of the Employment Agreement, Mr. Marshall is employed by Fireline as its
President for an initial three year term, which may be extended by Mr. Marshall
for two additional one year terms.  Mr. Marshall's annual salary is $300,000
for fiscal years 2006 and 2007, subject to increase for future years.  Pursuant
to the terms of the Employment Agreement, the Fireline employees (including Mr.
Marshall) are entitled to an annual aggregate bonus equal to 5% of Fireline's earnings before interest, taxes,
depreciation and amortization in a given year, which amount shall be allocated
among Mr. Marshall and the Fireline employees as determined by Mr. Marshall. 
The Employment Agreement further provides that Mr. Marshall is entitled to
receive reimbursement of business expenses, employee benefits, a vehicle
allowance of up to $1,500 per month plus operation and maintenance costs and expenses,
and a rental allowance of up to $13,200 per month.  The Employment Agreement
may be terminated by Mr. Marshall for good reason or by Fireline without cause,
in which case Mr. Marshall is entitled to receive his salary and benefits
through the remainder of the employment term.  The Employment Agreement may be
terminated by Mr. Marshall without good reason or by Fireline with cause, in
which case Mr. Marshall is entitled to receive his salary through the date of
termination.  Mr. Marshall agrees not to compete with Home Solutions or its
subsidiaries for a period of two years following the date of his termination of
employment unless he is terminated by Fireline without cause or he terminates his
employment for good reason, in which case, the noncompetition covenants
automatically terminate.
Pursuant to the
Purchase Agreement, Home Solutions has agreed to file a registration statement with
the Securities and Exchange Commission (the "SEC") registering the Shares for resale
under the Securities Act of 1933, as amended, within ten (10) business days
after the closing.  If the Shares are not registered within 150 days following
the date the registration statement is filed with the SEC, Home Solutions must
pay Mr. Marshall monthly interest on the value of the unregistered Shares,
based on the thirty-day trailing average of the closing price of the Home
Solutions' common stock at the prime rate of interest (as quoted in
The Wall
Street Journal
from time to time).
The Purchase
Agreement contemplates that within 30 days after the closing date, Home
Solutions will appoint Mr. Marshall, or another representative of Fireline
acceptable to Home Solutions' board of directors, as a member of Home Solutions'
board of directors, and that Home Solutions will cause Mr. Marshall (or his
representative) to be nominated to serve on its board for one additional term;
provided, that Home Solutions has no obligation to appoint Mr. Marshall (or his
representative) to its board or nominate such person to serve for an additional
board term, if such appointment or nomination would cause Home Solutions to
violate applicable SEC or Nasdaq requirements, if Mr. Marshall is no longer
employed by Fireline or owns less than 50% of the Shares, or if Mr. Marshall
(or the Fireline representative) commits an act of fraud, theft, embezzlement,
or crime of moral turpitude.
In connection
with the acquisition of Fireline, Home Solutions obtained the consent of its
lender, Texas Capital Bank ("TCB"), which consent was required pursuant to the
terms of the loan agreement between Home Solutions and TCB pursuant to which
Home Solutions obtained a $10,000,000 line of credit from TCB in March 2006
(the "TCB Line of Credit").  In connection with obtaining TCB's consent, Home
Solutions agreed to pay TCB a $15,000 fee and agreed to cause Mr. Marshall to
execute a subordination agreement, pursuant to which the Note shall be subordinated
to Home Solutions' obligations to TCB, on or before October 15, 2006.
The obligations
of Fireline will continue in full force and effect after the acquisition. 
Certain of these obligations include indebtedness owed by Fireline to its lender
under a loan agreement that is personally guaranteed by Mr. Marshall, a personal
property lease for an aircraft owned indirectly by Mr. Marshall,  the
lease of Fireline's office headquarters indirectly owned by Mr. Marshall, and
various vehicle, equipment, personal property and real property leases.  Mr.
Marshall agreed to continue to guarantee the indebtedness owed by Fireline to
its lender until November 17, 2006, and Home Solutions agreed to cause Mr.
Marshall to be removed from his personal guaranty of such indebtedness by that
date, unless the loan obligations have terminated.
Pursuant
to the Purchase Agreement, Home Solutions has agreed to grant stock options
under Home Solutions' stock plans to certain key employees of Fireline (other
than Mr. Marshall), upon such terms and conditions as are determined by Home
Solutions, but not to exceed options exercisable for an aggregate of 300,000
shares of Home Solutions' common stock.
The
Purchase Agreement, the Note and the Employment Agreement are attached to this
Form 8-K as exhibits 2.01, 10.01 and 10.02, respectively.
Item 2.01               Completion
of Acquisition or Disposition of Assets.
On July 31, 2006,
Home Solutions completed the acquisition of the capital stock of Fireline as
contemplated by the Purchase Agreement. Please see the disclosures regarding
the Purchase Agreement and the transactions contemplated thereby described in
Item 1.01 above, which is hereby incorporated into this Item 2.01 by reference.
Item 2.03               Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant.
On July 31, 2006,
Home Solutions issued a promissory note in the principal amount of $21,650,000
to the former owner of Fireline, in connection with the acquisition of the
capital stock of Fireline.  Please see the disclosures regarding the Purchase
Agreement and the transactions contemplated thereby described in Item 1.01
above, which is hereby incorporated into this Item 2.03 by reference.
3
Item 3.02               Unregistered
Sales of Equity Securities.
On
July 31, 2006, Home Solutions issued 4,000,000 Shares of Home Solutions' common
stock to Mr. Marshall in connection with the acquisition of the capital stock
of Fireline.  The common stock was issued in a private transaction in reliance
upon the exemption from registration contained in Section 4(2) of the
Securities Act of 1933, as amended.  Please see the disclosures regarding the
Purchase Agreement and the transactions contemplated thereby in Item 1.01
above, which is hereby incorporated into this Item 3.02 by reference.
Item 9.01               Financial Statements and
Exhibits.
(A)          Financial Statements of business acquired.
The financial statements required
by this Item, if any, will be filed by an amendment to this initial report on
Form 8-K as soon as practicable, but in no event later than 71 days after this
initial report on Form 8-K is required to be filed.
(B)          Proforma financial information.
Pro forma information  required
by this Item, if any, will be filed by an amendment to this initial report on
Form 8-K as soon as practicable, but in no event later than 71 days after this
initial report on Form 8-K is required to be filed.
(C)
Shell company transactions
.  Not Applicable.
(D)          Exhibits.
2.01
Stock Purchase Agreement among Fireline Restoration,
Inc., Brian Marshall, and Home Solutions of America, Inc. dated July 31, 2006.
10.01
Promissory Note issued by Home
Solutions of America, Inc. to Brian Marshall in the principal amount of
$21,650,000, dated as of July 1, 2006 (the effective date).
10.02
Employment Agreement among Home
Solutions of America, Inc., Fireline Restoration, Inc. and Brian Marshall dated
as of July 1, 2006 (the effective date).
4
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:  August
4, 2006
By:
/s/ Rick J. O'Brien
Name:  Rick J. O'Brien
Title:  President and Chief Operating Officer
5
Exhibit Index
2.01
Stock Purchase Agreement among Fireline Restoration,
Inc., Brian Marshall, and Home Solutions of America, Inc. dated July 31, 2006.
10.01
Promissory Note issued by Home
Solutions of America, Inc. to Brian Marshall in the principal amount of
$21,650,000, dated as of July 1, 2006 (the effective date).
10.02
Employment Agreement among Home
Solutions of America, Inc., Fireline Restoration, Inc. and Brian Marshall dated
as of July 1, 2006 (the effective date).
6