My local community has formed a “Long Term Recovery Committee” to assist in the rebuilding and recovery efforts following a natural disaster. The committee, which is a coalition of member agencies from the faith community, nonprofit agencies, government programs, businesses and individual donors, gathers monetary and material donations and provides assistance to families with unmet needs via volunteer work crews and/or contracted skilled labor. Are the rebuilding and recovery efforts organized by this committee subject to the RRP Rule?

Answer: It depends. Renovation activities that are performed for free by committee volunteers are not covered under the Rule because they are not “renovations performed for compensation.” Donations, such as donations of materials or of the time of volunteers, are not compensation. Conversely, renovation activities that are performed by renovators or firms who are compensated for their services are subject to all requirements under the Rule. This applies if the committee is compensating anyone for the work (ex. a paid supervisor), even if the committee has non-profit or not-for-profit status. 

Question Number: 23002-19765

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