The following acts are prohibited:
1. Deviation from or disregard of the plans or specifications or any terms and conditions agreed to under a home improvement contract in any material respect without the written consent of the owner;
2. Making any substantial misrepresentation in the solicitation or procurement of a home improvement contract, or making any false promise of character likely to influence, persuade or induce;
3. Any fraud in the execution of, or in the material alteration of, any contract, mortgage, promissory note or other document incident to a home improvement transaction;
4. Acting as an agent for any owner or any finance or mortgage company to arrange for or to obtain an extension of credit which is used to pay for an owner's obligations under a home improvement contract, unless the instrument evidencing such owner's indebtedness complies with subdivision b of 16 CFR § 433.2 and the licensee complies with section 771-a of the general business law;
5. Directly or indirectly publishing any advertisement relating to home improvements which contains an assertion, representation or statement of fact which is false, deceptive, or misleading, provided that any advertisement which is subject to and complies with the then existing rules, regulations or guides of the federal trade commission shall not be deemed false, deceptive or misleading; or by any means advertising or purporting to offer the general public any home improvement work with the intent not to accept contracts for the particular work or at the price which is advertised or offered to the public;
6. Wilful or deliberate disregard and violation of the building, sanitary, fire and health laws of this city;
7. Failure to notify the commissioner of any change or control in ownership, management or business name or location;
8. Conducting a home improvement business in any name other than the one in which the contractor is licensed;
9. Wilful failure to comply with any order, demand, rule, regulation or requirement made by the commissioner pursuant to provisions of this subchapter; 10. As part of or in connection with the inducement to make a home improvement contract, no person shall promise or offer to pay credit, or allow to a buyer any compensation or reward for the procurement of a home improvement contract with others;
11. Failing to perform work under a home improvement contract in a skillful and competent manner;
12. Procuring a certificate of completion from an owner prior to the actual completion of performance by the contractor under a home improvement contract;
13. Including any provision or clause in a home improvement contract whereby the owner waives or is barred from asserting any rights, claims, defenses or remedies available to an owner under this subchapter or any rules promulgated pursuant thereto;
14. Failing to comply with subdivision four of section seventy-one-a of the lien law;
15. [Reserved.]
16. a. As a part of or in connection with the inducement to enter any home improvement contract, no person shall promise or offer to pay, credit, or allow to any owner, compensation or reward for the procurement or placing of home improvements business with others.
b. No contractor shall offer, deliver, pay, credit or allow to the owner any gift, bonus award or merchandise, trading stamps, or cash loan as an inducement to enter a home improvement contract.
c. A contractor may give tangible items to prospective customers for advertising or sales promotion purposes where the gift is not conditioned upon obtaining a contract for home improvement work; provided no such item shall exceed a cost value of two dollars and fifty cents and no owner and/or other person shall receive more than one such item in connection with any one transaction.
17. Notwithstanding any other provisions of this section, no person licensed under this subchapter shall, in connection with any home repair or home improvement, act as an agent for, or advertise, promote or arrange for the services of a lender or its affiliate to secure a home loan or a home improvement loan for or on behalf of an owner.
18. No contractor shall receive payment from the proceeds of a home improvement loan except by an instrument payable solely to the borrower or at the election of the borrower, through a third party escrow agent in accordance with terms established in a written agreement signed by the borrower, the lender and the contractor prior to disbursement.
(Am. L.L. 2020/031, 2/11/2020, eff. 8/9/2020)
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2002/036.