Residential Licensing and Homebuilder’s Recovery Fund

The Home Builders Licensure Board was created to regulate the home building and residential construction industry. Ala. Code § 34-14A-2 (2). It applies to those engaging in residential and private dwelling construction business as a contractor. Ala. Code § 34-14A-2 (4). The Alabama Code requires all residential home builders to obtain license annually from the Home Builders Licensure Board. Ala. Code § 34 14A 5. However, any person engaged in residential home building on or before January 1, 1992, “shall be duly licensed by the board, without examination, after paying the required annual fee and submitting to the board, within a period of twelve months after the board is established, one of the following:

(1) An affidavit showing that the residential home builder has constructed a minimum of one dwelling as defined herein within the year prior to January 1, 1992, or five dwellings within the previous five years.
(2) Satisfies the board of his or her building qualifications and experience.
(3) Is currently licensed as a residential home builder by a jurisdiction in this state which requires an examination for licensure.
(4) Is a currently licensed residential remodeler by a jurisdiction in this state, who by his or her personal affidavit can establish that his or her business did a gross remodeling dollar volume in the previous calendar year of two hundred fifty thousand dollars ($250,000) or more.

Ala. Code § 34 14A 5.