Homeowner Improvement Permit ($10,000) Bond - City of Scranton, PA in Pennsylvania

Brief Summary

If you own and live in a one- or two-unit home in Scranton and plan to do the work yourself, the $10,000 Homeowner Improvement Permit bond is what stands in for the contractor license you do not need. You pay a premium, not $10,000, and the bond is issued in your name as the permit holder so the City of Scranton can release your permit.

The City of Scranton lets an owner-occupant pull a building permit and do home improvement work without a contractor license, and the $10,000 Homeowner Improvement Permit bond is posted with the City for that permit. It is issued in the homeowner's name with the City of Scranton as obligee. The exception covers only one- or two-unit homes the applicant owns exclusively and lives in, and it never covers electrical, plumbing or mechanical work.

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How to Apply for a Homeowner Improvement Permit ($10,000) Bond:

• Confirm you qualify: you own the one- or two-unit property exclusively and live there as your residence.
• Confirm the job is not electrical, plumbing or mechanical work, which the homeowner exception does not cover.
• Ask the Bureau of Code Enforcement for its current bond form and filing instructions.
• Provide your name exactly as it will appear on the permit application, plus the property address.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the signed $10,000 bond naming the City of Scranton as obligee.
• File the bond with your building permit application and keep a copy for your records.

Detailed Information About the Pennsylvania Homeowner Improvement Permit ($10,000) Bond:

Who this bond is for

Scranton rewrote Chapter 203 of its code, Contractors, Permits and Inspections, through Ordinance No. 38-2022, effective January 1, 2023. Under section 203-2A only a licensed master, specialty, home improvement or non-master contractor may perform work governed by the Uniform Construction Code. Section 203-2E(1) carves out one exception. A natural person doing home improvement on a one- or two-unit residential property that they own exclusively and occupy as their residence may obtain the building permit and do the work without being a licensed contractor, as long as they meet every other requirement of the City Code and the UCC.

The City's own permit form puts it plainly. Permits are issued to licensed contractors or homeowner occupants only, and the homeowner must live at the property to receive the permit. The $10,000 Homeowner Improvement Permit bond is the surety bond that goes with that homeowner route.

What the exception does not cover

This is where most owners get tripped up. Section 203-2E(1) does not apply to commercial buildings, and it does not apply to any electrical, plumbing or mechanical work. A rental you do not live in, a property held in a company name, or a building with more than two units falls outside it. Those jobs still need a licensed contractor on the permit.

What the bond guarantees

The bond runs to the City of Scranton. It stands behind the homeowner's promise to carry out the permitted work in line with the permit, the City Code and the UCC. If the City has a valid claim, the surety pays it up to $10,000 and then looks to the homeowner for repayment. It is not insurance for the homeowner.

Permit timing

Under section 203-8 a permit becomes void if work is suspended or abandoned for six months after it starts. Resuming abandoned work takes a new permit. Plan the project so the bond and permit stay in step.

Before you buy

Permit applications are handled by the Bureau of Code Enforcement in the Department of Economic and Community Development. Confirm the current bond form, the exact name to show as principal and the filing steps with the Bureau before the bond is issued.

How the premium is set

The surety looks at the bond amount, the applicant's personal credit and the nature of the project. You pay the premium, not a deposit of the $10,000 bond amount.

Eligibility and Requirements for a Pennsylvania Homeowner Improvement Permit ($10,000) Bond:

• Bond amount of $10,000 payable to the City of Scranton.
• Principal is the owner-occupant pulling the permit, not a contractor.
• Property must be a one- or two-unit residence owned exclusively and occupied by the applicant, per Scranton Code 203-2E(1).
• Work must still meet the City Code and the Pennsylvania Uniform Construction Code.
• Permit becomes void if work stops for six months after it begins, per Scranton Code 203-8.

Pennsylvania Homeowner Improvement Permit ($10,000) Bond FAQs:

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