{"id":903659,"date":"2024-12-03T16:10:20","date_gmt":"2024-12-03T23:10:20","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903659"},"modified":"2024-12-03T16:10:28","modified_gmt":"2024-12-03T23:10:28","slug":"ohio-home-construction-law-changes","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/ohio-home-construction-law-changes\/","title":{"rendered":"Changes to Ohio\u2019s Home Construction Law: Benefits and Burdens for Remodelers and Consumers"},"content":{"rendered":"\n

Thomas Hunt and Nathan Studeny | Kohrman Jackson & Krantz<\/a><\/p>\n\n\n\n

Ohio made a significant change to its law governing home construction<\/a> services, introducing an amendment that impacts both contractors and homeowners.\u00a0House Bill 50<\/a>\u00a0(H.B. 50), signed by Governor Mike DeWine in June 2024, added several key terms to the Home Construction Service Suppliers Act (HCSSA) to expand its coverage. These changes, which became effective on September 20, 2024, both eviscerate consumers\u2019 ability to seek treble (triple) damages against contractors performing repairs, improvements, remodeling, or renovations on projects valued at over $25,000 and require contractors performing such services to take additional steps to ensure their contracts are compliant with the HCSSA.<\/p>\n\n\n\n

Key Changes in House Bill 50<\/h4>\n\n\n\n

Previously, the HCSSA applied only to contracts for new construction or ancillary services tied to new builds where the contract exceeded $25,000. The Consumer Sales Protection Act (CSPA), which provided consumers a potential remedy of treble damages, applied to instances where the contracts were for home remodeling, repairs, improvements, or renovations that were not connected to new construction. However, under the amended law, contracts for the repair, renovation, remodeling, or improvement of existing structures\u2014with a value greater than $25,000\u2014will now be covered by the HCSSA.<\/p>\n\n\n\n

Ohio Revised Code 4722.01<\/a>\u00a0now defines \u201chome construction service\u201d as not only the creation of new residential buildings but also the improvement or renovation of existing ones. This clarification was introduced to supersede recent Ohio appellate court decisions holding that the CSPA exclusively applied to home remodeling projects, while the HCSSA applied to new home construction. By explicitly including remodeling and other improvements, the new law is a blow to consumers by removing such contracts from the broader CSPA, which subjected contractors to potential treble damages for certain misconduct.<\/p>\n\n\n\n

While the added clarity benefits contractors by shielding them from treble damages provided for in the CSPA, it also brings new burdens and responsibilities in an industry generally run by small business owners. Now, all contractors performing repairs, improvements, remodeling, or renovations on projects valued at over $25,000 must ensure their contracts meet specific, strict requirements under the HCSSA, including, among other things:<\/p>\n\n\n\n