SBE News



Capitol Connections 12/23/2020

Waiver Limit And HOA Rules

“Who you going to call?” If you’re a contractor, it won’t be the Ghostbusters. Assisting contractors for these many years I can go ‘faster than a speeding locomotive’ to get a final answer from the top! Did I just mix memes?…

Q:  In a recent column, I addressed a question relating to whether contracts between a Contractor and the HOA are considered “Home Improvement Contracts”.  Limited by space in print, I received a couple of follow up questions regarding my answer, so I turned to the CSLB to verify and explain a more complete interpretation. I posed the question: does the CSLB consider contracts between a HOA and a contractor a “Home Improvement Contract”? 

Shauna Krause, writer of Capitol Connection

A:  According to the Registrar of Contractors, David Fogt, “I discussed with Enforcement staff and researched the Business and Professions Code and the consensus is the BPC does not provide an exemption for contracts with HOA’s.  The HOA is acting on behalf of one or more homeowners/tenants therefore PBC requires compliance with home improvement contract requirements as follows:

“Home improvement contract” means in agreement, whether oral or written, or contained in one or more documents, between a contractor and an owner or between a contractor and a tenant, regardless of the number of residences or dwelling units contained in the building in which the tenant resides, if the work is to be performed in, to, or upon the residence or dwelling unit of the tenant, for the performance of home improvement as defined in Section 7151.

You may want to provide your contractor with the following BPC sections:

BPC 7151, 715.2, 7152 and 7159. 

Q:  I have been the President/CEO for a California Corporate Contractor’s license since its inception.  We have one Qualifier who has a “B” (General Building), and another who has the “C-39” (Roofing).  The General Qualifier came on the license on 12-15-15 and the Roofing on 12-20-16.  I understood I can get the licenses without an exam for the “B” and “C-39” as long as I have been on the license for five years.  Is that the case?  Can you please clarify?

A: Thank you for contacting Capitol Services Inc.  You are correct that once you’ve been an Officer on a license, or even a Supervisory Employee for at least five years, you can apply to replace the Qualifier and request to Waive the exams.  The classifications would have to have been on the license for five years.  So, it sounds like you’d be eligible to Waive the General classification after 12-15 of this year since that would be five years.  Since the “C-39” came on the license on 12-20-16, a waiver wouldn’t be an option until after 12-20-2021.

Keep in mind that a license is only eligible for a waiver request once every five years, so you might just want to wait until after 12-20-21 and do them both at the same time.

Source: https://cutredtape.com/archives/2020/11/05/waiver-limit-and-hoa-rules/


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