All Forum Posts by: Account Closed

You're quite welcome! And it's good to hear that they may pursue action despite the Fund's gray area.  It's interesting though, because if you as an owner of more than three properties file a complaint that the MHIC pursues, and as a result, the contractor "fixes" their way, have you not then helped to protect the "home owners" and yet you're not afforded protection?  Yes, it is disappointing.

Anyway, you may be interested in following this post: https://www.biggerpockets.com/forums/51/topics/260...

By virtue of SUBTITLE 4. HOME IMPROVEMENT GUARANTY FUND Md. BUSINESS REGULATION Code Ann. § 8-405, (f) (2) (ii), "owners" who own more than three residences or dwelling places are denied access to make a claim against the Guaranty Fund.

To me, this seems prejudicial to the "owner" as well as to the contractors who pay into a fund for which they receive no value when working with those disqualified, and does little to encourage those disqualified to use licensed contractors.  That said, this post seeks to solicit feedback from the legal community here at BP regarding the definition of "owner". 

I've been asked by multiple investors if that exclusion pertains to ownership as recorded with the SDAT (and in identical name only) or if ownership carries over to their membership in LLC(s).

Feedback is appreciated, thank you!

I couldn't agree more... it seems to me that it only encourages those who own more than three properties to be indifferent about using licensed contractors.  I feel that's prejudicial and that folks like you are denied protection without just cause.  As well, as a licensed contractor paying into the fund, we don't receive value from our contributions to the fund since our clients are disregarded.

Having contacted the director of the MHIC asking for some light to be shed on this subject, my request was wasn't responded to until I reached out a second time several weeks later. The response ultimately received was:

"Thank you for your inquiry regarding the claims against the Maryland Home Improvement Commission Guaranty Fund. You have asked for some information that may explain the reasoning behind the enactment of Maryland Business Regulation Code Annotated § 8-405. The 3 residence limitation on Guaranty Fund claimants was established by the Legislature, not by the Commission, and that it is not within the authority of the Commission to change this provision of the law. I cannot tell you the arguments presented to the legislature when they adopted this regulation. I can tell you that the Maryland Home Improvement Commission's mission is to regulate home improvement contractors and protect and safeguard the homeowners of Maryland. Therefore, it was the Legislature's intent not to extend the coverage of the Guaranty Fund to those who are engaged in the real estate investment business on a large scale. This was a policy decision made by the Legislature concerning the appropriate scope of the Guaranty Fund."

As for your question about the personal name vs. LLC, to that I cannot answer, but have asked the same question. I don't know if the Code defines what constitutes an "owner". A question best posed to an attorney (to which I will post such in another thread).

@Steve Crounse... particularly if you're paying for the gas (I'm assuming that it's a gas water heater) and the water, you might want to consider going tankless, in tandem with the existing water heater or in lieu of it... they're fantastic in my opinion!  Properly sized, it's virtually endless hot water and if in lieu of a standing tank, you're not paying to keep water heated 24/7... it only heats what's used on demand.

And if you just want a backup to the 75 gallon heater, then you should be able to do that too and use a smaller tankless unit.

Good luck with the project!

@Jared Schroeder, this is a common problem and as @David Dachtera noted, the carpet just exacerbates it.  Keep in mind that the upon removal of the floor covering(s), the damage visible to the sub-flooring is likely to extend underneath the tub.  "Squishy" doesn't fix itself over time so it sounds like some repair work is needed.  In the past, when I've had to replace subflooring under showers/tub for this very same reason, I've used pressure treated or marine grade lumber/plywood.  Additionally, I've extended the finished floor underneath the apron of the shower/tub and adjacent baseboard and then caulked the apron and baseboard to the finished flooring.  It's not waterproof of course, but since water seeks the path of least resistance, keeping it in plain sight (i.e., on the finished floor) increases its chance of being wiped-up or evaporating.  Once it gets into the inaccessible cracks and crevices, the wood acts like a sponge.

That said, flooring that has joints is somewhat counter-productive (unless it's ceramic tile that's grouted).

@Marcia Maynard offers excellent advice... to which I would add (in light of a recent experience) that an "appropriate" shower curtain should mean a non-porous one.  I know that sounds odd, but my girlfriend recently bought a shower curtain liner and the darn thing was porous!  This wasn't a decorative curtain intended to overlay the liner either, it was a liner.  I thought the water on the floor after my showers was "user error" but despite my diligence in making sure the liner was stretched all the way across and tucked around, the water kept appearing... in the middle of the tub length no less.  It was then I looked to the liner and so formed a makeshift bowl with it, filled it with water, and watched the water seep right through.  Go figure!

Anyway, good luck to you!

While you might have to be a member of a local REI group that is a member of the National one, the Pro Xtra Loyalty program offers a 2% rebate on your Home Depot purchases*, an appliance program, and 20% off on paints. As well, in case you're not aware, should you have a larger order of sorts, take the order to the ProDesk and ask for special/discounted pricing. The clerk should submit the request and you may very well save a few bucks just for asking.

*Tip: Rebate program is based upon purchases made with pre-registered credit/debit/gift cards, so if you have others make purchases for you (or give your subs gift cards), considering buying gift cards, register them and earn the rebate.

Welcome to BP @Hylton Irons and props to you for starting early... I believe your greatest asset is time, use it to your advantage!

Welcome to BP @Alayne Galley... my son is currently finishing-up his master's in Millersville and is pursuing a job in law enforcement in Lancaster, so I'm interested in knowing others from the area with whom I might connect him should he end-up planting roots there.

Best of luck to you!

@Senta J., I'm curious, how do you feel about hiring a licensed contractor but being ineligible for protection from the Guaranty Fund on the basis that you own more than three properties?

Senta - if the contractor is properly licensed in the State of Maryland, they will have a state-issued, "Maryland Home Improvement Commission" (MHIC) Contractor number (not just a salesperson or sub-contractor number).  A MHIC is not the same as having a General Contractor's license issued by the various counties or a state issued Home Builder's license (neither of which allows for home improvement work - the former is for commercial work and the latter is for the new home construction), so don't be fooled it they say they are properly licensed but don't have a MHIC number.

If they have a MHIC license in good standing (you can check that here: http://www.dllr.state.md.us/cgi-bin/electroniclice...) and the property is also located in the State of Maryland, then you may have recourse through the MHIC Guaranty Fund. The caveat however, is that if you own more than three properties, the MHIC may find you ineligible to make a claim against the fund (I'll refrain from getting on my soapbox about that silliness for now).

In short, the fund is something every licensee pays into as a means of consumer protection.  If a claim is made, and the commission finds the contractor to be in violation of the home improvement laws, the commission may pursue regulatory or criminal charges. Maryland has very strict laws about compliance, not the least of which are some very explicit contract requirements, and there are some real penalties involved with non-compliance (given the extent of the laws, even the best contractors may likely to be in violation of at least something).

For more information about the Guaranty Fund, see: http://www.dllr.state.md.us/license/mhic/mhiccomp.....

Best of luck to you and should you need more information, feel free to reach out.