Home Inspector Legislation
The Home Builders Association is promoting legislation in the 2017 session that would further regulate the home inspector profession. Specifically, the HBAA is proposing the creation of a Home Inspectors Board of Licensure that would exist under the Alabama Building Commission to provide direct oversight to the industry.
For too long, the good elements of the industry have been marred by the negative reputation of the few bad actors engaged in home inspections. Builders and consumers are left befuddled by inspections that are not based in code yet are reported as fact or, more insidiously, reported as a significant defect even though such finding is nothing more than an aesthetic observation. The existence of a board of licensing will provide consumers with much needed protection by providing professionalism and ethics in the industry. The board will be authorized to establish standards of practice for the industry and a disciplinary process for those in violation of the law. The new board will be made up of home inspectors, builders and consumers. By allowing the board to operate under the auspices of the Alabama Building Commission, this act should not increase costs to licensees, consumers, or the agency.
Real Estate Appraisals Members of the home building industry in Alabama are still reeling from the effects of the economic downturn. Although some sectors of the economy have begun to rebound, home construction is stalled by lagging appraisals. In many instances, appraisers are failing to provide actual value due to a lack of understanding of the acceptable methods of appraising true value, but also by a refusal to conduct a cost approach appraisal on new construction. Although many lenders are not asking to see a cost approach appraisal, their reliance on market data artificially deflates actual value by not accounting for increases in material and regulatory costs. The HBAA is proactively conducting training for appraisers, but the absence of mandatory cost approach appraisals leaves many appraisers with insufficient data to establish accurate values. The HBAA is preparing an administrative amendment to require that, in addition to any other method used by that appraiser, a cost approach appraisal be conducted on all new construction. Should the amendment not be considered, legislation will be put forward to accomplish the same. Alabama builders deserve to be able to provide a product that is fairly valued.
Multifamily/Investment Property Issues Although there is no specific legislation pending for this year's session to address the landlord/tenant statutes, it would not be unexpected to see bills seeking small, incremental changes to the law. Further, with government revenues down, legislation that has been floated in the past to tax multifamily could surface again.
Fire Sprinklers The various sides that have battled over fire sprinklers in the past appear to have coalesced behind a measure that would permit plumbers to install fire sprinklers in single family homes if the home owner chose to have a system installed. This is not the first time that all parties seemed to come together only to fracture later during the session. If the measure is successful, the cost of installing a sprinkler system could be reduced to a level that consumers might actually consider installing one. Regardless, the HBAA position is supportive of voluntary installations but remains firmly against any mandate to require the installation of fire sprinklers in any one and two family dwelling.
As with every session, the HBAA will be postured to advance its legislative agenda while prepared to fight off legislation that could hamper housing's recovery in Alabama. It is expected that over 2,000 pieces of legislation will be filed during this session. With that many bills floating around, the HBAA will have to remain vigilant to protect the industry and move housing forward. | 
