News & Insights

Alabama Legislature Expands Scope Of Home Builders Licensure Board Act To Clarify Scope Of Licensure Requirement For Home Improvements And Now Governs All Residential Roofing Companies

The Alabama legislature recently amended provisions of the Home Builders Licensure Board Act (the “HBLB Act”) to expand the scope of home building projects and companies required to comply with the HBLB Act.  The HBLB Act was originally enacted to protect individual homeowners when engaging a Construction company to either build a new home or during a remodel. The HBLB Act required General Contractors to obtain a license from the Home Builders Licensure Board (the “Board”) prior to entering into contracts with perspective clients.

The first significant change is to what type of projects are covered by the HBLB Act. The prior version was vague in regard to what remodels fell under its purview. The legislature amended the definitions to now include the term “Improvements.” An Improvement is defined as “[a]ny site –built addition or enhancement attached to or detached from a residence or structure for use and enjoyment of a homeowner.” This definition is broad enough to cover essentially any type of remodel or home improvement project on or around a residential home project. Although the legislature expanded the scope of projects covered by the HBLB Act, it kept a minimum contract amount of $10,000.00 in place. This amount includes the cost of materials, labor, supervision, overhead, and profit.

The second change will impact residential roofing contractors. For the first time, the legislature has specifically mandated that all residential roofing projects are subject to the licensure requirements and oversight of the Board. Further, unlike home improvement or new build projects, the threshold for licensure is for any project in excess of $2,500.00. This lower threshold essentially requires almost all residential roofers to obtain a license prior to advertising and beginning work in Alabama.

Violations of the HBLB Act carry up to a $5,000.00 penalty for each violation. Exceptions to the general rule still remain and you may need to contact an attorney to discuss how the rules impact both existing and new projects.