Overview

As expenses continue to rocket into the stratosphere in California, more and more bad HOAs across California have been hiring unlicensed “contractors” to perform maintenance, repairs, and sometimes even major construction work on common area components. What most homeowners do not realize is that when an HOA cuts corners on contractor licensing, it does not just commit a technical violation of California law. It creates a direct and potentially catastrophic financial risk that falls on the homeowners themselves. Licensing laws are not paperwork formalities. They are liability-shifting mechanisms, and when boards ignore these requirements, they shift that liability squarely onto the HOA. [If you’d like to learn about what you, as a homeowner, can do if your HOA wants you to give a contractor they hired access to your individual unit, read my Fact Sheet, “California HOAs: Can a Homeowner Demand Proof of Contractor Licensing and Insurance?”]

Under Business and Professions Code 7048 and 7058, California law requires contractors performing most work valued at $1,000 or more to hold a valid contractor’s license, and that license must match the scope of the work being performed. This is not optional. It is a hard statutory requirement that applies to the types of projects HOAs deal with every day, including roofing, plumbing, electrical work, painting, landscaping, and structural repairs. When an HOA hires someone who lacks the proper license for the job, the legal consequences are not limited to regulatory penalties imposed on the contractor. They extend into employment law, tort liability, and insurance exposure in ways that simply never occur to most HOA boards.

This Fact Sheet explains how California’s contractor licensing laws apply to HOAs, why using an unlicensed or improperly licensed contractor creates immediate and serious liability, and how that risk ultimately falls to the feet of the HOA’s members. It also provides a practical guide to the types of contractor licenses required for the most common HOA projects. Understanding these distinctions is not academic. It is one of the most effective ways homeowners can identify dangerous decision-making by their HOA before it results in catastrophic financial exposure.

Key Points

California’s contractor licensing laws are not abstract rules that only affect contractors. They define who is legally qualified to perform work, who bears responsibility when something goes wrong, and how liability is allocated when an HOA hires outside vendors. When an HOA ignores those requirements, the issue is not technical. It is financial, and the consequences fall directly on the membership.

• California law requires contractors to be properly licensed for most HOA-related work. Business and Professions Code 7048 and 7058 require a valid contractor’s license for most projects valued at $1,000 or more, and that license must match the scope of the work being performed. This applies to routine HOA projects such as roofing repairs, plumbing work, electrical upgrades, painting, landscaping, and structural improvements. An HOA cannot legally hire someone to perform this type of work unless that person holds the appropriate state license for that specific trade or qualifies under a properly licensed general contractor structure.
• Hiring an unlicensed or improperly licensed contractor creates immediate legal exposure for the HOA. When an HOA hires such a contractor for work that requires a license, the legal consequences do not stop with the contractor. By hiring someone who lacks the required license, the HOA exposes itself and every homeowner in the community to risks that would not exist if it had hired a properly licensed contractor. Those risks extend into multiple areas of law and can quickly turn a routine project into a serious financial problem for the entire community.
  • California law will treat unlicensed contractors and their employees as employees of the HOA. When an unlicensed contractor performs work for the HOA, the contractor and the contractor’s employees lose their status as independent contractors and instead fall within the statutory definition of employees under California law. In the HOA context, that means the association is deemed the employer. This classification exposes the HOA to direct liability for the contractor’s actions, including property damage, defective work, and personal injury. It also eliminates the legal separation that HOAs typically rely on when hiring licensed vendors, which means the HOA cannot distance itself from the contractor’s conduct or shift responsibility through standard contractual protections.
  • Worker injuries can lead to direct lawsuits against the HOA. If an unlicensed contractor is injured while performing work for the HOA and no valid workers’ compensation coverage exists, the worker can bypass the workers’ compensation system and sue the HOA directly. In that lawsuit, the HOA loses key protections that the workers’ compensation system normally provides, including limits on damages, the exclusive remedy defense, and the ability to avoid fault-based litigation. Instead, the HOA faces full civil exposure, including pain and suffering damages, and courts will apply presumptions that favor the injured worker, making it significantly harder for the HOA to defend the claim.
  • HOA decisions about contractor licensing directly create financial exposure for every homeowner in the community. Liability arising from the HOA’s decision ultimately falls on the membership. That means you. That exposure can take the form of increased assessments, insurance claims, premium increases, or direct litigation costs. Homeowners often have no idea that they’re financially tied to these decisions until the consequences begin to surface, and by then it’s far too late.
• Many common HOA projects require specific contractor licenses. Many homeowners are surprised to learn how many routine HOA projects require licensed contractors. California’s licensing system is trade-specific, and even seemingly simple work must be performed by properly licensed professionals. The following list of the most common types of licenses you will run into in normal HOA life gives you a practical reference point so that you can quickly identify whether the contractor your HOA hires holds the correct license for the applicable work, or whether your HOA has ignored its legal obligations to protect the HOA and its membership.
  • A—General Engineering. Large-scale infrastructure and fixed works such as grading, drainage systems, and structural site improvements.
  • B—General Building. Multi-trade construction projects involving two or more unrelated trades, including structural repair and reconstruction.
  • C-8—Concrete. Concrete pouring, finishing, forming, and structural flatwork.
  • C-10—Electrical. Electrical wiring, panels, lighting systems, and related equipment.
  • C-11—Elevator. Elevators, escalators, and moving walk systems.
  • C-12—Earthwork and Paving. Grading, trenching, paving, and site preparation work.
  • C-13—Fencing. Installation of metal, wood, and masonry fencing systems.
  • C-16—Fire Protection. Fire sprinkler systems and related safety equipment.
  • C-20—HVAC. Heating, ventilation, and air-conditioning systems.
  • C-27—Landscaping. Exterior planting, irrigation, and landscape design work.
  • C-33—Painting. Surface preparation, painting, coatings, and wallcoverings.
  • C-36—Plumbing. Gas, water, and waste line systems.
  • C-39—Roofing. Installation, repair, and replacement of roofing systems.
  • C-60—Welding. Welding and metal fabrication work.
  • C-7—Low Voltage. Communication systems, fiber optics, and alarm systems.
  • D-6—Concrete Related. Concrete sawing, drilling, and coring.
  • D-28—Doors and Gates. Automated gates and specialized door systems.
  • D-35—Pool Maintenance. Cleaning and minor repair work for pools and spas.
  • D-49—Tree Service. Tree removal, pruning, trimming, and cabling.
  • C-22—Asbestos Abatement. Removal, containment, and disposal of asbestos-containing materials, subject to strict licensing and Cal/OSHA regulatory requirements.
• HOAs must verify contractor licensing before work begins. The HOA controls the hiring decision and bears the responsibility to confirm that its contractors and any subcontractors hold the proper license for the work being performed. While you may not have the ability ensure that your HOA only signs contracts with licensed contractors, you do have every right to demand the identities of all contractors and sub-contractors working for the HOA and to check their licenses on your own. This is something that you can easily do online. If your HOA cannot or will not provide that information, that is a major red flag that you should not ignore.
• A general contractor may perform some work directly, but must hire properly licensed specialty contractors when the project involves separate trades. A general contractor may take on projects that involve two or more unrelated trades, such as a repair project that includes both electrical and plumbing work. In those situations, the general contractor can oversee the entire project and coordinate the work. The general contractor, however, cannot personally perform specialty work unless that work falls within their own license scope. When the project involves a distinct trade such as electrical, plumbing, roofing, or painting, the general contractor must hire a subcontractor who holds the appropriate specialty license for that portion of the work. If the general contractor performs that specialty work without the proper license, the law treats it the same as if the HOA hired an unlicensed contractor directly, and the same liability risks apply. [This is why it’s so important for HOAs to verify not only the general contractor’s license, but also the licenses of any subcontractors performing specialty work before the project begins. For larger projects such as roof replacements, structural repairs, or balcony work, HOAs should also consider hiring a qualified project manager or construction professional to oversee licensing compliance and scope coordination precisely because of the potential massive financial liabilities in play.]
• The lack of a dedicated contractor’s license causes widespread misunderstanding of mold remediation. Most people are surprised to learn that California does not issue a specific license for mold remediation. Instead, the licensing requirement depends on the scope of work. If the project meets the $1,000 threshold, the contractor must still hold an appropriate license, such as a general contractor’s license (i.e., a general building license for multi-trade work) or a relevant specialty license for limited scope work. This creates confusion because homeowners often assume that companies performing mold remediation operate under a specialized licensing framework when, in reality, they actually don’t.
  • There is no California license required to perform mold testing or inspection. Individuals can collect samples and present themselves as inspectors without holding a state-issued credential. That does not mean all inspectors carry equal credibility. Courts, insurance carriers, and reputable contractors often rely on professionals who hold recognized third-party certifications, most commonly from the IICRC (Institute of Inspection Cleaning and Restoration Certification) or the ACAC (American Council for Accredited Certification). While these certifications are not required by law, they function as the industry standard and often determine whether an inspector’s findings will be taken seriously or challenged.
  • When it comes to remediation, the scope of work determines the required license. While California law may not require a license to perform mold testing, remediation work certainly does. For example, if remediation involves opening walls, removing materials, or coordinating multiple trades, the contractor must hold a general (B) license. Work confined to a single trade, such as surface treatment or cleaning, may fall within a specialty classification. Contractors cannot expand beyond that scope without triggering licensing requirements tied to broader construction activity. Many projects start as testing or minor remediation and expand once damage is uncovered. The moment the work crosses into licensed construction activity, the contractor must hold the appropriate license for that expanded scope. If not, the HOA assumes the same liability risks discussed above.
• Asbestos work is tightly regulated. California law imposes strict licensing and regulatory requirements for asbestos-related work. Contractors performing asbestos abatement must hold the appropriate license classification and comply with Cal/OSHA requirements. Unlike mold remediation, asbestos work operates within a defined regulatory framework that clearly identifies who is qualified to perform it and under what conditions.
  • C-22—Asbestos Abatement is the primary license for abatement work. This classification authorizes full asbestos abatement projects, including removal, containment, and disposal of asbestos-containing materials.
  • Some contractors may add an asbestos certification (ASB) to their existing license, but that certification gives them only limited authority. Some contractors may add an asbestos certification (ASB) to their existing license, but that certification provides only limited authority. While it allows a contractor to handle asbestos-containing materials within their own licensed trade, it does not authorize full-scale abatement. Furthermore, under Business and Professions Code 7058.5, any contractor performing asbestos-related work involving 100 square feet or more of surface area must also be registered with the Division of Occupational Safety and Health (DOSH). A C-33 painting contractor with an ASB certification, for example, may remove asbestos-containing paint as part of surface preparation, but they cannot legally perform the work without DOSH registration if the project exceeds the 100-square-foot threshold. If your HOA hires a certified contractor who is not also properly registered with DOSH for a project of that size, it is assuming the same catastrophic liability risks associated with hiring an unlicensed contractor.
  • General contractors must subcontract asbestos work. A general contractor holding only a B license may contract for a project that includes asbestos abatement, but the contractor must subcontract that portion of the work to a properly licensed and qualified contractor.
• If your HOA is using unlicensed contractors, call the HOA attorneys at MBK Chapman. Hiring unlicensed or improperly licensed contractors exposes the entire HOA to serious liability. If you suspect that your HOA is cutting corners on contractor licensing, call MBK Chapman. This firm’s HOA lawyers are widely considered the best trained in the State of California, and we’re experienced at forcing HOAs to follow the law.

California’s contractor licensing laws define who is qualified to perform work and who bears responsibility when things go wrong. When an HOA ignores those requirements, it shifts risk onto the very homeowners it is supposed to protect. Understanding how these rules operate allows homeowners to identify dangerous decisions early and take steps to protect themselves before those decisions turn into massive liabilities.

FAQs

About MBK Chapman Fact Sheets

Homeowners searching for answers online will often come across articles that appear authoritative, but are actually written as search-engine marketing content rather than by an experienced HOA lawyer. These pieces tend to prioritize keyword density over clarity, accuracy, or legal context, which often leaves homeowners more confused than informed.

At MBK Chapman, our Fact Sheets are part of our HOA Law Library and are written by Michael Kushner, an HOA lawyer with decades of hands-on experience representing California homeowners. In fact, Michael Kushner is the HOA lawyer who pioneered the systems and strategies used by some of California’s most successful homeowner-side HOA law firms.

Each Fact Sheet is deliberately concise, statute-based, and designed as a quick-reference guide to help homeowners understand key HOA laws and enforcement rules at a glance.

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