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      • 2022 Speaker Topics
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        • HBAI OPPOSES MANDATES FOR ELECTRIC CAR CHARGERS & THE STRETCH ENERGY CODE
        •   Home Builders Survive Union Ambush
        • HBAI OPPOSES SB2896 – CAR CHARGERS & STRETCH ENERGY CODE
        • 2021 State Energy Code Price Tag – $10,000 Per Home
      • 2020 Speaker Topics
        • ComEd Deadline to Grandfather Existing Subdivisions/Developments
        • Vote No on the Progressive Tax
        • End of Session Report
        • Session Update 5/20/2020
        • Home Builders Oppose Car Charger Mandate
        • WCC Repeals Work Comp for COVID-19
        • COVID-19 Added to Work Comp Claims
        • Pandemic Housing Issues
        • Home Construction Deemed Essential!
        • Sticker Shock!!!
      • 2019 Speaker Topics
        • Senate Holds Hearing on Subcontractor Failure-to-Pay Bill
        •  2019 Illinois General Assembly Highlights  —  Part II
        • 2019 Illinois General Assembly Highlights — Part I
        • Oppose HB2838 — General Contractors held liable for Subs’ Employee Wages
        • March Madness in Springfield
        • Legislative Committee Begins Its Work
      • 2018 Speaker Topics
        • End of Session Wrap UP
        • General Assembly Approaching Adjournment
        • HBAI to Oppose County Recorders Legislation
        • Lobby Day Harvest Housing Victories
        • HBAI Lobby Day a BIG Success!
        • More Labor Bills – More Anti-Business Legislation – More Regulation
        • Home Builders Prepare to Defend the Public Construction Bond Act
        • HBAI Spring Session Report
        • HELOCS Deductible for Capital Improvements, IRS Says
        • Home Building & Remodeling Once Again Under Attack in Springfield
        • Board Meeting, Installation Banquet & Veto Session
        • Election Night Projections 2018
        • Vote Now for a Home Builder Hero
        • Veto Session in Springfield
        • Four Favors
        • HBAI Takes on the Tasks at Hand
        • HomePAC – IBS – Associate Member Appreciation Month
        • Last Chance for the Century Ride Pledge Drive
        • HBAI Mid-Year Report
        • End of Session Wrap UP
        • Board Meeting, Installation Banquet & Veto Session
      • 2017 Speaker Topics
    • Voter Voice
  • Calendar of Events

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  • Home
  • HBAI
    • By-Laws
    • Executive Officers
    • 2023 HBAI Board of Directors
    • HBAI Staff
    • Member Benefits
    • Reasons to Join
    • Join HBAI
    • Blog
    • Contact
  • Members
    • Local HBA’s
    • Locate Local HBA’s by County
    • Map of HBA’s
    • Member Benefits
    • Educational Opportunities
    • HBAI Talk
      • 2019 Talk
        • Healthcare Survey for Members
      • Talk 2018
        • Things Learned at the Builders Show
        • Board of Directors Meeting @ IBS 2018 Pictures
        • HBAI Reception at IBS
      • Talk 2017
        • Advocacy Leadership Award
        • HBAI on a Mission
        • Housing Hall of Fame Inductees 2017
        • Builder Member Rebates
  • Government Affairs
    • State Laws You Should Know
      • Introduction to State Laws You Should Know
      • Illinois Recreational Cannabis Law Effective January 1, 2020
      • Employee Business Expense Reimbursements 2019
      • Farmland Preservation
      • Home Repair & Remodeling Act
      • Illinois Building Code Freeze
      • Illinois Energy Conservation Code
      • Implied Warranty Law
      • Interest Paid on Certificates of Error
      • Model Home Act
      • Illinois Building Code Freeze
      • Passive Radon Systems
      • Proportionate Property Improvement Valuations – “Pro-Rata Valuations”
      • Public Construction Bonds
      • Septic System Turf Battle
      • Vacant Lot Act
    • HomePAC
    • HBAI Speaker
      • 2022 Speaker Topics
        • January Update
      • 2021 Speaker Topics
        • HBAI OPPOSES MANDATES FOR ELECTRIC CAR CHARGERS & THE STRETCH ENERGY CODE
        •   Home Builders Survive Union Ambush
        • HBAI OPPOSES SB2896 – CAR CHARGERS & STRETCH ENERGY CODE
        • 2021 State Energy Code Price Tag – $10,000 Per Home
      • 2020 Speaker Topics
        • ComEd Deadline to Grandfather Existing Subdivisions/Developments
        • Vote No on the Progressive Tax
        • End of Session Report
        • Session Update 5/20/2020
        • Home Builders Oppose Car Charger Mandate
        • WCC Repeals Work Comp for COVID-19
        • COVID-19 Added to Work Comp Claims
        • Pandemic Housing Issues
        • Home Construction Deemed Essential!
        • Sticker Shock!!!
      • 2019 Speaker Topics
        • Senate Holds Hearing on Subcontractor Failure-to-Pay Bill
        •  2019 Illinois General Assembly Highlights  —  Part II
        • 2019 Illinois General Assembly Highlights — Part I
        • Oppose HB2838 — General Contractors held liable for Subs’ Employee Wages
        • March Madness in Springfield
        • Legislative Committee Begins Its Work
      • 2018 Speaker Topics
        • End of Session Wrap UP
        • General Assembly Approaching Adjournment
        • HBAI to Oppose County Recorders Legislation
        • Lobby Day Harvest Housing Victories
        • HBAI Lobby Day a BIG Success!
        • More Labor Bills – More Anti-Business Legislation – More Regulation
        • Home Builders Prepare to Defend the Public Construction Bond Act
        • HBAI Spring Session Report
        • HELOCS Deductible for Capital Improvements, IRS Says
        • Home Building & Remodeling Once Again Under Attack in Springfield
        • Board Meeting, Installation Banquet & Veto Session
        • Election Night Projections 2018
        • Vote Now for a Home Builder Hero
        • Veto Session in Springfield
        • Four Favors
        • HBAI Takes on the Tasks at Hand
        • HomePAC – IBS – Associate Member Appreciation Month
        • Last Chance for the Century Ride Pledge Drive
        • HBAI Mid-Year Report
        • End of Session Wrap UP
        • Board Meeting, Installation Banquet & Veto Session
      • 2017 Speaker Topics
    • Voter Voice
  • Calendar of Events

State Laws You Should Know

Home Repair & Remodeling Act

Bill Ward, Executive Vice President, HBAI

For years, HBAI has successfully lobbied that registration and licensure of builders and remodelers would do little in the fight against consumer fraud. Only legitimate contractors would pay licensure fees and take examinations, while flyby niters would continue to operate under the radar of state government regulation.

In 1999, Illinois Attorney General Jim Ryan reported that for five years running, home remodeling and repair fraud was the number one complaint registered at the Consumer Fraud Division of the A.G.’s office. HBAI was put on notice by Ryan that we either address this matter or it would be addressed for us.

But HBAI was deeply divided on how we should invite new regulation upon our own industry. Everyone felt that stiff penalties upon the perpetrators were essential but that licensure did not necessarily deliver the desired result. One thing was certain; we wanted to keep new home construction out of this problem that was primarily being caused by fraudulent and unqualified remodelers and repair persons.

The answer came over a matter of a few months with the Attorney General holding our feet to the fire and our HBAI Legislative Affairs Committee working together and trading ideas. Our goals eventually became mutual with those of the A.G.’s office:

  • Improve communications and information between remodelers and consumers;

  • Promote fair and honest business practices;

  • Increase consumer confidence;

  • Reduce disputes;

  • Punish harshly, contractors who desire to do harm to consumers; and,

  • Minimize government regulation on those remodelers who work in a fair and honest manner.

With these goals in mind, HBAI and the Attorney General created legislation that is now known as the Home Repair & Remodeling Act. Without registration, licensure, or the assessment of fees, the requirement of good business practices was bundled with stiff penalties to create a law to protect home owners from unscrupulous remodelers and repair persons.

HB1177 passed the Illinois General Assembly in May of 1999, was signed by Governor George Ryan that summer, and became effective on January 1, 2000 – (Chapter 815 ILCS 513) of the Illinois Compiled Statutes.

For any work over $1000, a contractor must provide the following written materials:

  • A Written Contract stating the total cost, parts & materials listed, and any charges for estimates

  • The Contract must be signed by the Contractor and the Home Owner(s)

  • The Contract must contain the business name, business address or home address of contractor

  • Customers must receive and sign from the Contractor a copy of “Home Repair: Know Your Consumer Rights” pamphlet

  • For work under $1000, the pamphlet must still be issued to the Customer.

A contractor must also carry the following insurance:

  • Public Liability & Property Damage Insurance in the amount of $100,000 per person and $300,000 per occurrence of bodily injury

  • $50,000 per occurrence for property damage

  • $10,000 per occurrence for improper repair or remodeling unless your net worth is $1 million or more.

Violations of this Act constitute a violation of the Consumer Fraud and Deceptive Business Practices Act and may be filed by the Attorney General or a State’s Attorney. Private parties may also bring action under the Illinois Consumer Fraud & Deceptive Business Practices Act.

Up until 2010, failure to comply with any of the provisions of this Act could mean that the remodeling or repair work completed could be granted to the customer with forfeiture of payment to the contractor. Even failure to provide the Consumer Rights Manual could cause this fate upon the remodeler. Over time, we witnessed home owners taking advantage of this extreme penalty; judges were allowing home owners to receive even room additions for free because the contractor failed to provide the Consumer Rights Manual.

With assistance from the Illinois Bar Association, new language was added by the General Assembly in 2010 which now allows judges to penalize contractors for actual damages; meaning they have the ability to prescribe a penalty that fits the crime (815 ILCS 513/30).

Illinois still stands as one of 13 states without licensure of home builders or remodelers. From time to time, we ask our local associations to send us written resolutions providing their position on the merits of licensure in our industry. Many of our members favor licensure, but the majority of local associations remain opposed. Until we see a strong change in this position, HBAI will continue to serve its membership by opposing contractor licensure while supporting reasonable consumer protection measures.

For more information regarding the Home Repair & Remodeling Act, feel free to contact me at (800) 255-6047, or, write me at billward@hbai.org.

To obtain a  the “Home Repair – Know Your  Consumer Rights” form click on

https://www.illinoisattorneygeneral.gov/consumers/homerep0505c.pdf

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About us

The HBAI is the watchdog for builders, contractors, developers and all those involved in home building across Illinois. We work hard to keep legislation and regulatory action favorable to the industry--and especially to how it affects our members' bottom lines. We keep you informed, connected, and aligned with the best the state has to offer - including ongoing certification and affinity programs, our annual Lobby Day, and opportunities to serve on our board or in other capacities. Let us know when and how you are ready to get involved.

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