OTHER PUBLIC CONTROLS

OTHER PUBLIC CONTROLS

The basic regulation of the housing and construction industries is accomplished by three laws: the State
Housing Law (Health and Safety Code Section 17910, et seq.); local building codes; and the Contractors’ State
License Law (Business and Professions Code Section 7000, et seq.).

State Housing Law

The State Housing Law, administered by the Codes and Standards Division of the Department of Housing and
Community Development, provides minimum construction and occupancy requirements for dwellings.

Construction regulations under this statewide act are handled by local building inspectors, while occupancy and
sanitation regulations are enforced by local health officers. Typical procedure for new construction or building
alterations requires initial application to the local building inspector for a building permit.

The application must be accompanied by plans, specifications, and plot plan. After examination of the
application and accompanying exhibits and revision where necessary, the corrected application is approved and
a building permit is issued. No construction or alterations can be commenced prior to issuance of a building
permit.

Local Building Codes

In 1970, the Legislature amended the State Housing Law to make the Uniform Housing Code, Uniform
Building Code, Uniform Plumbing Code, Uniform Mechanical Code, and National Electric Code applicable in
lieu of local building codes. The law now provides that the Regulations of the Commission of Housing and
Community Development under the State Housing Law shall impose substantially the same requirements as the
most recent edition of these codes. Local government retains only the power to determine local use zoning
requirements, local fire zones, building setback, side and rear yard requirements and property line requirements.
(Health and Safety Code Section 17922(b)). Local variances are permitted only if based on an express finding
that local conditions make them reasonably necessary. Materials and design which comply with the uniform
codes but are determined in fact to be unsafe (for example “pigtailing” copper to aluminum wire) may be
prohibited by the local authorities.

In 1969, by the California Factory Built Housing Law (Health & Safety Code Section 19960 et seq.), the
Legislature provided for regulation of factory built housing by the Department of Housing and Community
Development. The standards must be reasonably consistent with the most recent editions of the uniform codes
mentioned above. Local governments may elect by ordinance to take over the function of in-plant inspections
within their territorial limits in accordance with the standards set by the commission.

Local government supervises on-site installation of factory built housing.

Contractors’ State License Law

Under the Contractors’ State License Law, every person who engages in the business of a contractor in this
state must be licensed by the Contractors’ State License Board. Licensing exemptions exist only for public
entities, public utilities, oil and gas operations, certain construction operations related to agriculture, minor
work not exceeding $500, and an owner’s own work unless the owner intends to offer the property for sale
within one year of completion.

Contractors must meet certain experience and knowledge qualifications and must post a bond or cash deposit to
the State of California for the benefit of persons damaged by the contractor.

A contractor is subject to being disciplined by the Contractors’ State License Board, which may result in the
suspension or revocation of the license. Grounds for discipline include: abandoning a project; diverting funds to
a different project or for a different purpose; departing from plans and specifications; violation of work safety
provisions or of building laws and regulations; and a material breach of contract.

Note: Various FHA, VA or Cal-Vet requirements regulate housing and construction. These programs require,
as a prerequisite to participation, that the house involved meet elaborate Minimum Property Requirements
(MPRs). In some instances, MPRs are more demanding than either the State Housing Law or local building
codes.