North Carolina

Home Inspector Licensure Board:

Encouraging Performance

Mike Hejduk, PE

Executive Director, NCHILB

NC Dept. of Insurance, Office of State Fire Marshal

Home Inspector Licensure Act

Mission Statement

NC General Statute § 143-151.44. Purpose.

This Article safeguards the public health, safety,

and welfare and protects the public from being

harmed by unqualified persons by regulating the

use of the title "Licensed Home Inspector" and by

providing for the licensure and regulation of those

who perform home inspections for compensation .

The Basics (1)

n Board established 1994 – 18 years

n Home Inspection Fee - $ 300 +/-

n 2 per day, 5 days per week, 50 weeks per year

– 500 inspections @ $300 each = $150,000

– 250 inspections @ $300 each = $ 75,000

n Visual examination (2- 4 hrs)

n Written report (1 – 2 hrs)

n Confidential results unless release authorized by

client

The Basics (2)

n License application / qualification / issuance

n Licensee Continuing Education (CE) Req’ts

– 16 hours / license period (Oct. 1 – Sep. 30)

– 4 hrs Board-developed Update / 12 hrs Elective

n CE Sponsor/Instructor/Course qualification

n Complaint Investigations

n Board Meetings

n Disciplinary Action / Hearings

Initial Board Direction (10/2009)

n “Pay to Play” – inspector / broker relationships

n Online renewals / photo IDs

n Unlicensed Inspectors?

– Property Condition Reports

– HUD REO (Real Estate Owned)

n Clear backlog of (45) complaints, 2-4 years old

n Complaint processing time (6 months)

What to do first?

Catch the alligators?

or

Drain the swamp?

Results Based Management

n Strategic Planning – The long view…..

– Processes & Products

n Performance Management Systems

– Organizational Structure

– Process Improvements

– Rewards

– Contracts

– Budgeting

n Outcome Indicators

n Program Evaluation

Logic Model

INPUTS

PROCESSES

OUTPUTS &

EARLY

OUTCOMES

INTERMEDIATE

OUTCOMES

LATE

OUTCOMES

Applicants

Licensees

CE Courses

Complaints

Staff

Revenues

Board

License issuance

License renewals

CE Credit

Investigations

Communications

Budget

Discipline

Online

Online/Photo

Online

Backlog……

LISTSERVE

Awareness

Reduced costs,

man hours.

Accountability

Satisfied

Consumers

Licensees

Other

Professionals

Integrity

2009 2010 2011 2012

2010 2011 2012 2013

2011 2012 2013 2014

2012 2013 2014 2015

2013 2014 2015 2016

Early Victories?

n Capacities

– Organizational Structure

– Process Improvements

• Licensee Database

MS ACCESS®

Organizational Structure

Director

Education Coordinator

Investigator

Admin Assistant

Director

Education Coordinator

License Administrator

Investigator

Process Improvements

n License Renewal – 2 page form to online

n License Application – 5 page form to online

n CE Rosters – handwritten at course to online

n Complaint Processing – Investigation Reports

n Communications – email vs. standard mail

n Board and Committee meetings –

– Even months (6/yr) to Quarterly (4/yr)

Encouragement

n Incentives

– Rewards (Individual & Group )

– Contracts

– Performance Budgeting

Rewards

n Job description / responsibilities

n Performance Evaluations

– Performance & Behavior combination

– Quantity / Quality

n Work plans / expectations

n Working hours / time sheets

n Recognition – Board meetings/newsletters

Contracts

n Information Technology

– web application interface for online renewals / CE

n Contract Inspectors

– Used for site visits and report reviews to reduce

backlog and improve customer response.

– Benchmark for staff

• Charlotte (2)

• Concord (1)

• Cary (1)

Complaints

15

3

14

33 31

34

14

33

47 46 42

53

32

22 25

40

21

9

0

10

20

30

40

50

60

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

NC Home Sales

Budget n Line item / account codes

n Fund balance

n Policy

0

200

400

600

800

1000

1200

1400

1600

01/2

2/0

7

03/2

1/0

7

05/2

1/0

7

07/2

0/0

7

09/2

1/0

7

11/2

1/0

7

01/2

2/0

8

03/2

5/0

8

05/2

1/0

8

07/2

1/0

8

09/2

2/0

8

11/2

1/0

8

01/2

1/0

9

03/2

3/0

9

05/2

6/0

9

07/2

1/0

9

09/2

1/0

9

11/2

3/0

9

01/3

1/1

0

03/3

1/1

0

05/3

0/1

0

07/3

0/1

0

09/3

0/1

0

11/3

0/1

0

01/3

0/1

1

03/3

0/1

1

05/3

1/1

1

07/3

1/1

1

09/3

0/1

1

11/3

0/1

1

01/3

0/1

2

03/3

0/1

2

05/3

1/1

2

07/3

1/1

2

09/3

0/1

2

11/3

0/1

2

Active HI

New HI

ActiveAssoc

New Assoc

Inactive HI

InactiveAssoc

Expired HI

ExpiredAssoc

Exam HI

ExamAssoc

Renew HI

RenewAssoc

Outcome Indicators

Program Evaluation

n NC General Assembly Session 2011 / House Bill 1030

17