SB294 Alabama 2020 Session

Under existing law, state and local home building and home improving requirements do not apply to certain individuals, including the owner of a property who is acting as his or her own contractor and providing all material supervision himself or herself when building or improving a single-family or two-family residency on the property, so long as the home is not built to be offered for sale

This bill would further provide for the exemptions from the state and local building requirements of individuals building or improving upon their own home when not offered for sale

This bill would also mandate compliance with certain requirements by a person who builds or improves his or her home under the owner-builder exemption before the person may enter into a contract for the sale of the home to a potential purchaser

Relating to home building; to provide further exemptions for a person who builds or improves his or her own home; to provide certain requirements for the sale of a home built or improved pursuant to the exemption.

Section 1

(a) An owner of property, when acting as his or her own contractor and providing all material supervision himself or herself, when building or altering, repairing, or making improvements to a one-family or two-family residence on the owner's property for the occupancy or use of the owner and not to be offered for sale, as provided under Section 34-14A-6, Code of Alabama 1975, is exempt from all of the following: (1) Any building permit requirement, including an owner/builder permit requirement. (2) Any otherwise applicable state or local building codes. (3) Any requirement under Chapter 8, Chapter 14A, Chapter 31, Chapter 36, or Chapter 37 of Title 34, Code of Alabama 1975. (4) Any rule adopted by the State Licensing Board for General Contractors, the Home Builders Licensure Board, the Board of Heating, Air Conditioning, and Refrigeration Contractors, the Board of Electrical Contractors, and the Plumbers and Gas Fitters Examining Board. (4) Any state or local inspection requirements. (5) Any state or local inspection fee requirements. (6) Any workers' compensation insurance requirements. (7) Any state or local permit requirements. (8) Any certificate of occupancy requirements. (9) Any rule of the Division of Construction Management of the Department of Finance. (b)(1) The exemptions under subsection (a) do not apply if, during the process of building, the owner elects not to own or occupy the home when the home is completed. (2) A home is deemed to be built to be offered for sale if the home is sold or offered for sale within one year of completion of any construction performed under this section. (c) Any subcontractor hired by an owner of property operating under this section is required to obtain all required licenses and permits for any work done by the subcontractor. (d) Prior to signing a contract for the sale of a home built, altered, repaired, or improved pursuant to any exemption under this section, the owner of the home shall do all of the following: (1) Ensure the home complies with all local building codes and requirements. (2) Ensure the home has been inspected in accordance with the Standards of Practice adopted by the Division of Construction Management of the Department of Finance pursuant to Chapter 355-18-1 of the Alabama Administrative Code. (3) Obtain a certificate of occupancy by the appropriate building official. (4) Provide a notice in writing to the potential purchaser that the home was built, altered, repaired, or improved pursuant to this section.

Section 2

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.