Michigan Habitat affiliates are required to have their own builder’s license.
There is much confusion over the topic of licensure for Michigan Habitat affiliates. Michigan law does state under Article 24 of the Occupational Code that all entities involved in residential construction projects valued at $600.00 or more are required to have their own residential builder’s license.
Because Habitat affiliates are incorporated as 501(c)(3) organizations, obtaining a license for the affiliate requires that a real person who is independently licensed as a Residential Builder act as the “qualifying officer” for the organization. This person retains their own license and number while the affiliate gets a separate license and number. The fee for the affiliate license is $195.00. If the licensed builder discontinues the role of qualifying officer for the affiliate, another real person with a license must act in this capacity.
A licensed Residential Builder (including a licensed affiliate) may build a new home from the ground up or may do any kind of maintenance, repair, or rehabilitation work on residential buildings. The licensed builder may contract for the whole job but must subcontract plumbing, electrical, and HVAC (heating, ventilation, and air conditioning) work to licensed plumbing, electrical and mechanical contractors.
An individual builder’s license allows an individual to perform work as a sole proprietor under their personal name or under an assumed name from their County Clerk's Office. The individual license may NOT be used for a corporation, limited liability company or partnership, including a Habitat affiliate. To obtain a separate license, follow this link for the proper form on the Department of Energy, Labor, and Economic Growth (DELEG) website: http://www.dleg.state.mi.us/bcsc/forms/build/lbl020.pdf or for more information visit the Builders website at www.michigan.gov/builders or contact the Builders Unit at (517) 373-8376.
On a related note, there are new requirements for renewing a Michigan Residential Builder’s license. At a minimum, 3 hours of continuing competency training and a certificate of achievement is required before a license can be renewed.
Michigan Department of Licensing and Regulatory Affairs
Selected passages rom the DELEG website:
A Residential Builder may build a new home from the ground up or may do any kind of repairs regulated under Article 24 of the Occupational Code. The builder may contract for the whole job, but will have to subcontract for plumbing, electrical, and mechanical (heating, ventilation, air conditioning) work to licensed plumbing, electrical and mechanical contractors. After the applicant passes both portions of the examination, a license will be issued as an Individual Residential Builder or Individual Maintenance & Alteration Contractor. The individual license will allow an individual to perform work as a sole proprietor, under their personal name or an assumed name from their County Clerk's Office. The individual license may NOT be used for a corporation, limited liability company or partnership. If you are conducting business as a corporation, limited liability company, or partnership, you must also apply for a second license which will be for the company. You may obtain a Corporation, Limited Liability Company, or Partnership Residential Builder and Maintenance & Alteration Contractor License Application on the Builders website at www.michigan.gov/builders, under "Forms & Publications" or contact the Builders Unit at (517) 373-8376.
Related DELEG Q & A:
Q: Is a Residential Builder or Residential Maintenance & Alteration Contractor required to carry insurance or be bonded?
A: The licensing law does not require a builder or contractor to have insurance or a bond. Insurance is usually required as a condition of obtaining a building permit from a city, village, or township. A homeowner may wish to require that the builder or contractor show proof of insurance before they sign a contract with the builder.
Q: I have a Residential Builder or Residential Maintenance & Alteration Contractor license in my own personal name, operating as a sole-proprietor. I'm now forming a corporation, limited liability company or partnership. What do I have to do to have the company licensed?
A.: The corporation, limited liability company or partnership is a new legal "person" and it must obtain its own license as a Residential Builder or Residential Maintenance & Alteration Contractor. When the company applies for a license, it will select a human being to be its "qualifying officer" -- the person who will assume responsibility for the company complying with the building laws and rules. The qualifying officer is required by law to hold an active license as an individual Residential Builder or individual Residential Maintenance & Alteration Contractor. The individual license will begin with 2101 or 2103 and it is separate from the company license. A corporation, limited liability company or partnership must maintain a company license, in addition to the qualifying officer holding an individual license. The qualifying officer may be an officer, director, member, partner, agent or employee of the company; they need not be an owner or shareholder. A Corporation, Limited Liability Company or Partnership Residential Builder or Maintenance & Alteration Contractor License Application may be obtained on the Builders website at www.michigan.gov/builders under "Forms & Publications" or you may call the Builders Unit at 517-373-8376 for an application.
Q: The qualifying officer has left our company. How do we get a new qualifying officer shown on our license?
A: When a qualifying officer leaves a company, he/she shall notify the Department in writing within 10 days of their resignation. The company will have 30 days to select a new qualifying officer after submitting a Qualifying Officer Change application. There is a Qualifying Officer Change Application available on the Builders website at www.michigan.gov/builders under "Forms & Publications". Use this form if the new qualifying officer is currently licensed as a builder or contractor. The qualifying officer must be approved by the Department. The new qualifying officer must have an active individual Residential Builder or Residential Maintenance & Alteration Contractor license, a license beginning with 2101 or 2103, to serve as a qualifying officer for a corporation, limited liability company or partnership.