Needed Clarity Given to Home Remodeling Contracts

Since its enactment in 2012, there has been confusion among home remodeling contractors, as well as their attorneys, regarding whether compliance with the Ohio Home Construction Service Suppliers Act (“HCSSA”) is required for residential remodeling projects.

This confusion was further exacerbated due to conflicting decisions by different Ohio courts: some courts have concluded that it only applies to new construction, while others have concluded that the statute applies to any type of home improvement transaction regardless of whether it is new construction or remodeling. See, e.g., Beder v. Cerha Kitchen & Bath Design Studio, LLC, 11th Dist. Geauga No. 2022-G-0008, 2022-Ohio-4463; cf. Mazola Frank, v. Barrett Wise LLC., 2021 WL 1062390 (Ohio Com.Pl.).

However, Governor DeWine recently signed H.B. 50 which, among other things, amends the HCSSA to provide clarification on the statute’s applicability to home remodeling projects.

The current version of the statute defines “home construction service” as the “construction of a residential building.” See R.C. 4722.01(B).  But the statute’s current iteration fails to define exactly what the word “construction” means, hence leading to the widespread confusion and conflicting decisions in courts across the state. The amended version of the statute, set to take effect on September 20, 2024, contains only one change from the current version, but it’s a big one.

The new version defines “home construction service” as the “construction of a residential building, including the creation of a new structure and the repair, improvement, remodel, or renovation of an existing structure.” This amendment provides much-needed clarity, and home remodeling contractors now know that compliance with the HCSSA is required for any home remodeling project that exceeds $25,000.

Additionally, this means that the Ohio Consumer Sales Practices Act (“CSPA”) will be inapplicable to both residential new construction and residential remodeling projects where the HCSSA is otherwise applicable, as the terms of the CSPA explicitly exclude its applicability to transactions covered by the HCSSA.

Our team of construction attorneys at Strauss Troy will continue to provide important updates on the law in this area and are here to assist you. Please contact one of our experienced and dedicated construction attorneys for your legal needs:

James D. Houston: jdhouston@strausstroy.com or 513.629.9407
Brian J. O’Connell: bjoconnell@strausstroy.com or 513.629.9451
Andrew D. White: adwhite@strausstroy.com or 513.629.9466