HB50 – HCSSA: Home Remodelers Receive Protection from Recent Case Law

At the end of June, 2024, Governor Mike DeWine signed HB50, which contains a major update and clarification to the HCSSA.  Previously, the HCSSA only applied to new home construction, whereas the Ohio Consumer Sales Practices Act R.C. 1345.01 (“CSPA”) applied to remodeling and renovation projects.  This distinction was important, as the CSPA is a more punitive consumer protection law that can impose triple damages and legal fees against contractors who were renovating and remodeling existing homes.  Court decisions in late 2022 and early 2023 upheld the notion the HCSSA only applied to new home construction and not remodeling, despite the belief and interpretation of many contractors and trade groups.

However, with the passing of HB50, the Ohio General Assembly has now defined “home construction service” under the HCSSA to mean: “the creation of a new structure and the repair, improvement, remodel, or renovation of an existing structure.”  In other words, renovation and remodeling projects are now governed by the HCSSA (as long as the contracts are worth $25,000 or more), whereas the CSPA (and potential treble damages) will no longer apply to remodeling and renovation projects exceeding that dollar threshold.

That being said, the HCSSA is still homeowner friendly and contractors must be mindful of relief available to homeowners under the statute.  These remedies include an owner rescinding the contract; recovering their economic damages; recovering non-economic damages up to $5,000; and attorney’s fees.

While neither statute is particularly contractor-friendly, the enactment of HB50 is a win for home remodeling and renovation contractors in Ohio. HB50 will take effect on September 20, 2024.

In the meantime, home remodelers should take immediate care to ensure their contracts comply with the HCSSA.  This includes:

• Providing the name, address, and phone number of the parties and contractor’s tax identification number.
• Identifying the location of the project.
• Providing a general description of the construction services, including any appliances or other goods and services to be furnished.
• Stating the anticipated commencement and completion dates for the project.
• Stating the total, estimated cost of construction and installation, delivery, or other costs not included in the estimate.
• Including the statutorily-mandated excess cost provisions;
• Attaching a certificate of insurance to the written agreement evidencing that it maintains at least $250,000 of coverage.

Please do not hesitate to contact our office with any questions about HB50 and its impact on your home construction business.

Our team at the Truax Law Group offers elite legal services, trusted advice, and strategic guidance to the construction industry and small business owners in Northern Ohio and throughout the state. Have questions or concerns around your contracts? Feel free to give us a call or send us an email here >> and a team member will be touch!