[Federal Register: June 20, 2008 (Volume 73, Number 120)]
[Rules and Regulations]
[Page 35269-35304]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20jn08-13]
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Part III
Department of Housing and Urban Development
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24 CFR Part 3286
Manufactured Home Installation Program; Final Rule
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 3286
[Docket No. FR-4812-F-03]
RIN 2502-AH97
Manufactured Home Installation Program
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Final rule.
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SUMMARY: This final rule establishes a federal manufactured home
installation program, as required by section 605(c)(2)(A) of the
National Manufactured Housing Construction and Safety Standards Act of
1974. States that have their own installation programs that include the
elements required by statute are permitted to administer, under their
state installation programs, the new requirements established through
this final rulemaking. The new elements required by statute to be
integrated into an acceptable state manufactured home installation
program are: The establishment of qualified installation standards; the
licensing and training of installers; and the inspection of the
installation of manufactured homes.
DATES: Effective Date: October 20, 2008.
FOR FURTHER INFORMATION CONTACT: William W. Matchneer III, Associate
Deputy Assistant Secretary for Regulatory Affairs and Manufactured
Housing, Office of Manufactured Housing Programs, Department of Housing
and Urban Development, 451 Seventh Street, SW., Room 9164, Washington,
DC 20410; telephone number 202-708-6401 (this is not a toll-free
number). Persons with hearing or speech impairments may access this
number via TTY by calling the toll-free Federal Information Relay
Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
Requirement for an Installation Program
The National Manufactured Housing Construction and Safety Standards
Act of 1974 (42 U.S.C. 5401-5426) (``the Act'') is intended, in part,
to protect the quality, safety, durability, and affordability of
manufactured homes, and was amended on December 27, 2000 (Manufactured
Housing Improvement Act of 2000, Title VI, Pub. L. 106-659, 114 Stat.
2997). In order to accomplish those objectives, the Act requires HUD
to, among other things, establish and implement a new manufactured home
installation program for states that choose not to operate their own
installation programs. Specifically, section 605 of the Act (42 U.S.C.
5404) calls for the establishment of an installation program that
includes installation standards, the training and licensing of
manufactured home installers, and inspection of the installation of
manufactured homes. The model manufactured home installation standards
(``the installation standards'') themselves can be found in a separate
final rule, which was published on October 19, 2007 (72 FR 59338). Any
state that wishes to operate its own installation program must contain
state installation standards that afford residents of manufactured
homes at least the same protection provided by the federal installation
standards.
Although a state that wants to operate its own installation program
is not required to be a State Administrative Agency (``SAA'')
established pursuant to HUD's Manufactured Home Procedural and
Enforcement Regulations (see 24 CFR part 3282), any state that submits
a new state plan to become an SAA after the implementation of the
Manufactured Home Installation Program must include a complying
installation program as part of its plan. As a result, any state that
becomes an SAA for the first time, or any state that becomes an SAA
again after a lapse in its SAA status, will be required to administer
its own compliant installation program.
Proposed Rule
On June 14, 2006, at 71 FR 34476, HUD published the Manufactured
Home Installation Program proposed rule with a comment due date of
August 14, 2006. There were a total of 35 commenters on the June 14,
2006, proposed rule. Twenty-seven of the commenters were from the
manufactured home industry, including manufacturers, component
suppliers, retailers, installers, trade associations, and community
operators. Five commenters were from SAAs. The remaining commenters
were a consumer group, the Manufactured Housing Consensus Committee
(MHCC), and one member of the insurance industry.
HUD worked closely and participated in several meetings with the
MHCC in order to obtain their input and suggestions. In response to
comments from the public and input from the MHCC, HUD has made a few
significant changes to the proposed rule.
II. General Areas of Interest to Commenters
This section of the preamble discusses general areas of interest to
commenters. One of the general recommendations most often made by the
commenters was to codify the Manufactured Home Installation Program in
the existing 24 CFR part 3282, rather than in the new part Sec. 3286,
in the belief that the installation program would thereby become
``preemptive'' of state and local installation requirements in states
where HUD administers the installation program.
Preemption
Commenters requested that the installation program and installation
standards be made preemptive of state and local requirements in states
where HUD administers the installation program. However, HUD has
concluded that a plain reading of sections 604(d) and 605 of the Act
indicates that Congress did not intend for the installation program or
the installation standards to be preemptive of more stringent state or
local government requirements. This conclusion is strengthened by the
legislative history of the Act. During his section-by-section comments
on the floor of the House when the Act was being debated, then House
Financial Services Committee Chairman Jim Leach stated that ``the bill
would reinforce the proposition that installation standards and
regulations remain under the exclusive authority of each state.'' (See
Dec. 5, 2000, 146 Cong. Rec. H11960-01.) In ``Additional Views'' that
were included in the House Report on the bill, then Ranking Committee
Member John LaFalce noted that ``for the first time, we will be setting
a national minimum installation standard * * *'' (H. Rpt. 106-553, pg.
182). In earlier floor remarks, Rep. LaFalce said, ``[s]tates that wish
to have their own installation standards may continue to do so, as long
as they provide protections comparable to the model standards.'' (Oct.
24, 2000, 146 Cong. Rec. H10685). HUD, therefore, concludes that
Congress has permitted state governments to implement installation
standards that are more stringent than the federal installation
standards, provided that those state standards otherwise offer
protection that equals or exceeds the minimum protection established by
the installation standards.
Codification in Part 3286 of 24 CFR
Commenters, including the MHCC, continued to state that the
Manufactured Home Installation Program should be codified under 24 CFR
part 3282, Manufactured Home Procedural and Enforcement Regulations.
Contrary to the views expressed by these commenters,
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preemption authority can come only from Congress, and no decision that
HUD makes regarding the codification of the Manufactured Home
Installation Program could increase or diminish that authority. As
indicated above, HUD has concluded that Congress did not intend to
extend preemption authority to the installation of manufactured homes.
In any event, HUD has chosen, as a matter of administrative
necessity, to codify the Manufactured Home Installation Program in a
new 24 CFR part 3286 in order to maintain the clear distinctions that
the Act makes between installation and construction. The regulatory
structure that Congress has given HUD for enforcement of the
Manufactured Home Installation Program is entirely different from the
enforcement authority it previously gave HUD for the Federal
Manufactured Home Procedural and Enforcement Regulations. As HUD reads
sections 613 (42 U.S.C. 5412) and 615 (42 U.S.C. 5414) of the Act, the
principal sections requiring notification and correction of defects,
these sections do not apply to the installation of manufactured homes.
As HUD reads the Act, the primary enforcement authority for the
installation of manufactured homes, implemented through sections 610
and 611 (42 U.S.C. 5409 and 5410, respectively), is section 605 (42
U.S.C. 5404) itself, which not only provides more limited authority for
the installation of manufactured homes, but adds new requirements
regarding the licensing and training of installers.
Given these fundamental differences between the installation and
construction and safety programs, publication of the Manufactured Home
Installation Program in a new 24 CFR part 3286 will best allow HUD to
maintain the regulatory separation necessary to administer two such
different programs.
Commenters stated that the purpose of the Manufactured Home
Installation Program should be to establish HUD's default installation
program for those states that do not meet the required elements of the
Act through state law. The rule should not be used to create a
prescriptive base-line standard for each state-based installation
program. In order to avoid confusion on this issue, the final rule sets
out, in discrete subparts: (1) Manufactured home installation
requirements that are applicable in all states (subpart A) and to all
manufacturers; (2) requirements that are applicable in only those
states in which HUD is administering the installation program (subparts
B through H); and (3) requirements for states that wish to apply to
administer their own installation programs in lieu of the HUD program
(subpart I). Further, to make the applicable requirements more readily
identifiable, the final rule separately organizes the requirements that
apply to the retailers, distributors, installers, installation
trainers, and installation inspectors in states where HUD administers
the installation program.
Installation in Accordance With the Installation Standards
The MHCC was particularly concerned that the Manufactured Home
Installation Program proposed rule required compliance with the
installation standards, and not with the installation design and
instructions provided by the manufacturer. HUD agreed with the MHCC
that it would be better for the consumer to require compliance with the
manufacturer's installation design and instructions, since such designs
and instructions may differ from the installation standards by
providing requirements that not only exceed the installation standards,
but are also specific to the installation requirements of the
particular home being installed.
The final rule of the installation program requires that the
manufactured home be installed in accordance with:
(1) An installation design and instructions that have been provided
by the manufacturer and approved by the Secretary directly or through
review by the Design Approval Primary Inspection Agency (DAPIA); or
(2) An installation design and instructions that have been prepared
and certified by a professional engineer or registered architect and
have been approved by the manufacturer and the DAPIA as providing a
level of protection for residents of the home that equals or exceeds
the protection provided by the federal installation standards in part
3285 of this chapter.
III. Particular Areas of Interest to Commenters
This section of the preamble discusses specific, section-by-section
areas of interest to commenters. In response to the comments and the
MHCC's input, HUD has made a few significant changes to the proposed
rule.
Section 3286.2(d)(3) Applicability. Many commenters suggested
expanding the Manufactured Home Installation Program to cover secondary
installations of manufactured homes in addition to initial
installations. It is HUD's position that Congress intended the
installation program to be applicable only to the initial installation
of new manufactured homes, as indicated by references in section 623(g)
of the Act to the date of installation and by the definition of
``purchaser'' as the first purchaser in section 603 of the Act. A very
small percentage of manufactured homes are ever relocated after initial
siting and placement of the homes. The Manufactured Home Procedural and
Enforcement Regulations encourage States to establish procedures for
the inspection of used manufactured homes and for monitoring of the
installation of manufactured homes within each State (Sec. 3282.303),
indicating the intent of Congress to place the supervision of
reinstallments in the hands of the States.
The final rule clarifies that the installation program does not
prevent State and local governments from regulating subsequent
installations of manufactured homes. State standards for initial
installation must meet or exceed HUD's minimum installation standards,
while state standards for secondary installations do not have to adhere
to the minimum HUD standards. HUD concludes that any subsequent
installation of a manufactured home resides with State authority.
Section 3286.103 DAPIA-approved installation instructions. HUD
agrees with the commenters who stated that the retailer must provide
the purchaser with a copy of the DAPIA-approved installation
instruction manual for each home in states where HUD administers the
installation program. However, the retailer should not be required to
provide an installation design and instructions if the retailer has not
agreed to provide any set up in connection with the sale of the home
and the installation requires a design that is different than that
provided by the manufacturer's installation manual for the home. HUD
agrees that the retailer or manufacturer should provide the
installation design and instructions for installations that require
designs that differ from those provided by the manufacturer's
instruction manual when the retailer or manufacturer agrees to provide
any set up in connection with the sale of the home. The proposed rule
placed the entire burden of providing the installation instructions
upon the retailer.
Accordingly, the final rule has been revised to require the
retailer to provide the purchaser with a copy of the DAPIA-approved
installation instructions for each manufactured home, and to require
the retailer or manufacturer to provide to the installer the
installation design and instructions for installations that require
designs that differ from those provided by the manufacturer when the
retailer or manufacturer agrees to
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provide any set up in connection with the sale of the home. Although
either the retailer or the manufacturer now has the responsibility to
provide instructions to the installer, rather than only the retailer,
the overall burden associated with the requirement to provide
instructions has not changed.
The final rule does not require the retailer or manufacturer to
provide installation instructions to the installer if the retailer or
manufacturer has not agreed to provide any set up in connection with
the sale of the home, since the installer performing the installation
may not be known by the retailer or manufacturer.
Section 3286.109 Inspection requirements--generally. HUD agrees
with commenters who stated that the requirements in the proposed rule
may delay the completion of sale. The original wording extended the
completion of sale date to the date that the home was installed. This
may have had an adverse effect on retailers when they do not provide
set up in connection with the sale of the home, since the retailer's
duties would not end until an independent third party completed its
work. HUD has made appropriate revisions to this section, in order to
clarify when a sale is complete.
Section 3286.405 Site suitability. HUD agrees with the many
commenters who stated that it should be the installer's responsibility
to verify site suitability for the installation of a home. Subpart C of
the Model Installation Standards includes many site preparation
requirements that must be performed during the installation of the
manufactured home. Accordingly, the licensed installer is responsible
for determining the suitability of the site with regard to the
requirements in the Model Installation Standards. The requirements are
not the responsibility of the retailer or manufacturer.
Section 3286.803(b) Minimum elements. A majority of commenters
stated that the provision for a state to prove it has adequate funding
in order to be approved to run its own installation program should be
removed and is not a requirement of the Act. HUD, however, believes
that the requirement is appropriate. The final rule should also include
an additional item that would allow HUD to approve state installation
programs, provided the state demonstrates an alternative means for
achieving the end goal of improved manufactured housing.
IV. Section-by-Section Revisions--Changes to Proposed Rule
In response to the public comments and subsequent reevaluation by
HUD, the following is a summary, by subpart, of the section-by-section
revisions being made to the Manufactured Home Installation Program
proposed rule.
Subpart A--Generally Applicable Provisions and Requirements
A new paragraph (b), ``Implementation,'' is added to Sec. 3286.1
to provide for Federal Register publication of an implementation
schedule for the various components of the installation program. HUD
will publish a separate notice setting forth a timetable for
implementation of the elements of the program, for example, the
program's installer training and licensing requirements, to provide an
orderly transition to a fully operational installation program.
Paragraph (d)(2) of Sec. 3286.2 makes clear that states that
administer their own installation program may regulate subsequent
installations of manufactured homes. Further, new paragraph (d)(4) was
added to Sec. 3286.2 recognizing that HUD does not have the authority
to regulate the installation of manufactured homes on Indian
reservations.
In response to comments, certain definitions, including definitions
for manufactured housing installation instructions and installation,
have either been added or modified in Sec. 3286.3 of the final rule in
order to provide clarity.
Section 3286.5 was modified to provide an overview of the HUD-
administered installation program and the state-administered
installation programs. The installer requirements are being moved to
Subpart C, since these requirements are applicable only in states where
HUD administers the installation program. The manufacturer must also
include instructions for protecting the interior of the manufactured
home or sections of homes from damage, pending the first siting of the
home for occupancy. The instructions must be adequate to ensure that
the temporary supports and weatherization used will be sufficient to
prevent the home and its transportable sections from falling out of
conformance with the Manufactured Housing Construction and Safety
Standards (MHCSS) in part 3280 of this chapter, if the home or its
sections is either:
(i) Stored at any location for more than 30 days; or
(ii) In the possession of any entity for more than 30 days.
Paragraph (b) of Sec. 3286.7 was revised to require the retailer
to provide the purchaser or lessee with a consumer disclosure prior to
execution of the sales contract to purchase, or of the lease agreement
to lease, a manufactured home. This disclosure must be in a document
separate from the sales or lease agreement.
Section 3286.9 was revised to ensure that the manufacturer's
reporting requirements in the installation program are consistent with
the reporting requirements in Sec. 3282.552. Form HUD-302 will be used
to collect the information from the manufacturer.
The final rule has been revised to require retailers to update the
tracking and installation information only for homes installed in
states where HUD administers the installation program; therefore, Sec.
3286.13 is being moved to Sec. 3286.113.
Subpart B--Certification of Installation in HUD-Administered States
A new Sec. 3286.102, that details the information that the
manufacturer must provide to retailers or distributors, was added. It
also requires the manufacturer to include a notice in the installation
instructions that the home must comply with installation designs and
instructions that are approved by either the Secretary of HUD or by the
manufacturer's DAPIA.
Section 3286.103(a) was revised to require the retailer to provide
a copy of the manufacturer's DAPIA-approved installation instructions
for each home. The retailer or manufacturer must also provide an
installation design and instructions if: (1) the installation requires
a design that is different from that provided by the manufacturer, and
(2) the retailer or manufacturer agrees to provide any set up in
connection with the sale of the home.
A new paragraph (b) has been added to Sec. 3286.105 that requires
the retailer or manufacturer to ensure that the installer is licensed
if the retailer or manufacturer agrees to provide any set up in
connection with the sale or lease of the home.
Section 3286.107 has been revised to require installers to comply
with the manufacturer's installation design, or with alternative
designs and instructions that were prepared by a professional engineer
or registered architect, as long as the alternative designs and
instructions have been reviewed and approved by the manufacturer and
its DAPIA.
A new paragraph (a)(4) has been added to Sec. 3286.107 that
clearly sets out that any installation defect caused by the installer's
work is the joint responsibility of the installer and of the retailer
or manufacturer that retained the installer. A new Sec. 3286.107(a)(5)
also makes them jointly and severally liable for the correction of any
failures
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to comply with the installation standards.
Section 3286.109 was revised to require the installer to certify,
and the inspector to verify, that the home has been installed in
accordance with the requirements of Sec. 3286.107(a) before the home
can be occupied.
Section 3286.113 was revised to delete references to the sale of
the home and instead require retailers to provide tracking information
and installation information only for homes installed in states where
HUD administers the installation program. The proposed rule required
the tracking information to be provided to HUD for all homes. The
option of the Internet-based tracking system established by HUD was
deleted. Retailer record retention requirements were shortened from 5
to 3 years.
Section 3286.115 of the proposed rule was revised to include the
date that the installer certified that all required inspections were
completed as part of the date of installation.
Section 3286.117 was modified to redefine the completion of sale
date.
Subpart C--Installer Licensing in HUD-Administered States
Section 3286.205(d) was revised to require an applicant for an
installation license to obtain, when available in the state of
installation, a surety bond or insurance that will cover the cost of
repairing all damage to the home and its supports caused by the
installer during the installation. The value of such bond or insurance
must cover the costs of repair of any incidents that render the home
defective, up to and including replacement of the home. The proposed
rule required the installer to maintain general liability insurance in
the amount of at least $1 million. This change will link the
installer's costs more closely to the number of homes installed, rather
than imposing a level cost regardless of the number of homes installed.
Smaller installation operations that have a lesser volume of
installations will benefit from this requirement.
Subpart D--Training of Installers in HUD-Administered States
Section 3286.303(d) was revised to shorten the period during which
trainers and continuing education providers must retain records from 5
to 3 years.
Subpart E--Installer Responsibilities of Installation in HUD-
Administered States
Section 3286.405(b) was revised to require the installer to
identify the reasons why a site is unsuitable for installation when the
installer has found that a site is unsuitable. The installer is also
required to notify HUD of the site's unsuitability, in addition to
notifying the retailer when it has made such a finding.
Two new paragraphs, (c) and (d), were added to Sec. 3286.405.
These paragraphs make clear that if the installer notices and
recognizes any failures to comply with the construction and safety
standards in part 3280 of this chapter prior to beginning any
installation work, during the course of the installation work, or after
the installation work is complete, the installer must notify the
manufacturer and the retailer of each failure to comply. Additionally,
the retailer must provide a copy of the notification received in
paragraphs (b) (site suitability) and (c) (construction and safety
failures) of this section to any subsequent installer.
Section 3286.409(d) was removed.
Section 3286.411(c) was modified and moved to Sec. 3286.113.
Section 3286.413(b) was revised to shorten the period during which
installers must retain records from the 5 years set out in the
Manufactured Home Installation Program proposed rule to 3 years.
Subpart F--Inspection of Installation in HUD-Administered States
A new paragraph (c) was added to Sec. 3286.503 requiring the
installer to provide installation instructions to the inspector.
Section 3286.507(a) was revised to clarify that the installation
verification provided by the inspector must be in writing.
International Code Council-certified inspectors were added to the
list of qualified inspectors in Sec. 3286.511(a).
Subpart G--Retailer Responsibilities in HUD-Administered States
A new paragraph (c) was added to Sec. 3286.603 that requires the
retailer or manufacturer to verify that the installer is licensed when
the retailer or manufacturer agrees to provide any set up in connection
with the sale or lease of the home.
Subpart H--Oversight and Enforcement in HUD-Administered States
The sections in subpart H are the same as in the proposed rule.
They are not revised by this final rule.
Subpart I--State Programs
Sections 3286.801 and 3286.803(a) were revised to clarify that
states that administer their own installation programs may do so either
as part of their approved state plan or under Subpart I of the
Manufactured Home Installation Program rule.
The time frames in Sec. 3286.805(c) were revised to 90 days based
on a comment from the MHCC that the time frames be consistent and that
90 days is a reasonable time frame for both actions.
Section 3286.807 was revised to require states to submit a new
State Installation Program Certification form to the Secretary for
review every 5 years after the state's most recent certification as a
qualified installation program.
V. Findings and Certifications
Regulatory Planning and Review
The Office of Management and Budget (OMB) reviewed this rule under
Executive Order 12866 (entitled ``Regulatory Planning and Review'').
OMB determined that this rule is a ``significant regulatory action'' as
defined in section 3(f) of the order (although not an economically
significant regulatory action, as provided under section 3(f)(1) of the
order). The docket file is available for public inspection between 8
a.m. and 5 p.m. weekdays in the Office of the Rules Docket Clerk,
Office of General Counsel, Department of Housing and Urban Development,
451 Seventh Street, SW., Room 10276, Washington, DC 20410-0500. Due to
security measures at the HUD Headquarters building, please schedule an
appointment to review the docket file by calling the Regulations
Division at 202-708-3055 (this is not a toll-free number). Hearing-or
speech-impaired individuals may access this number through TTY by
calling the toll-free Federal Information Relay Service at 1-800-877-
8339.
Paperwork Reduction
The information collection requirements contained in this final
rule have been approved by OMB under the Paperwork Reduction Act of
1995 (44 U.S.C. 3501-3520) and assigned OMB Control Number 2502-0253.
In accordance with the Paperwork Reduction Act, HUD may not conduct or
sponsor, and a person is not required to respond to, a collection of
information, unless the collection displays a currently valid OMB
control number.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) establishes requirements for federal agencies to assess the
effects of their regulatory actions on state, local, and tribal
governments and the private sector. This rule does not impose any
federal mandates on any state, local, or tribal government or the
private sector
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within the meaning of the Unfunded Mandates Reform Act of 1995.
Environmental Review
A Finding of No Significant Impact with respect to the environment
was made at the proposed rule stage in accordance with HUD regulations
at 24 CFR part 50, which implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) and remains
applicable to this final rule. The Finding of No Significant Impact is
available for public inspection between the hours of 8 a.m. and 5 p.m.
weekdays in the Regulations Division, Office of General Counsel,
Department of Housing and Urban Development, 451 Seventh Street, SW.,
Room 10276, Washington, DC 20410-0500. Due to security measures at the
HUD Headquarters building, please schedule an appointment to review the
docket file by calling the Regulations Division at 202-708-3055 (this
is not a toll-free number). Hearing-or speech-impaired individuals may
access this number through TTY by calling the toll-free Federal
Information Relay Service at 1-800-877-8339.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits, to the
extent practicable and permitted by law, an agency from promulgating a
regulation that has federalism implications and either imposes
substantial direct compliance costs on state and local governments and
is not required by statute, or preempts state law, unless the relevant
requirements of section 6 of the Executive Order are met. This rule
does not have federalism implications and does not impose substantial
direct compliance costs on state and local governments or preempt state
law within the meaning of the Executive Order.
HUD is required by statute to establish an installation program
through the National Manufactured Housing Construction and Safety
Standards Act of 1974 (the Act) (42 U.S.C. 5401-5426). However, in
accordance with the Act and as set forth in this proposed rule, this
Manufactured Home Installation Program is not preemptive. Therefore,
HUD has determined that the Model Installation Standards, if adopted,
have no federalism implications that warrant the preparation of a
Federalism Assessment in accordance with Executive Order 13132.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires
agencies to consider the impact of their rules on small entities.
Agencies must evaluate the impact of a rule on small entities and
describe their efforts to minimize the adverse impacts.
As part of the proposed rule, HUD prepared an Initial Regulatory
Flexibility Analysis (IRFA) that evaluated the potential economic
impact on the small entities the regulations would affect, including:
manufacturers, retailers, installers, and trainers. Pursuant to the
requirements of the Regulatory Flexibility Act (5 U.S.C. 603), HUD
prepared a Final Regulatory Flexibility Analysis (FRFA), which follows
in its entirety.
Manufactured Home Installation Program Final Regulatory Flexibility
Analysis: Reason That the Action Is Being Considered
On December 27, 2000, the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5401-5426) was
amended by the Manufactured Housing Improvement Act of 2000, which,
among other things, requires the Secretary to establish an installation
program for the enforcement of the Model Manufactured Home Installation
Standards in each state that does not have an installation program
established by state law and approved by the Department.
Objective of the Final Rule
The objective of the final rule is to establish the Manufactured
Home Installation Program in each state that does not have an
installation program established by state law and establish the
requirements that must be met by a state to implement and administer
its own installation program. The Manufactured Home Installation
Program includes:
Systems for tracking and certifying manufactured home
installations;
Licensing requirements for individuals and entities to
qualify to install a manufactured home, which include required
experience, training, testing, and proof of liability insurance;
Requirements for individuals or entities for providing the
required training;
Responsibilities of the installer who is accountable for
the installation of the manufactured home;
Inspection requirements that must be performed by a
qualified inspector;
Responsibilities for retailers of manufactured homes in
states that do not have qualifying installation programs;
Enforcement mechanisms to ensure the proper installation
of manufactured homes; and
Requirements that must be met by a state to implement and
administer its own installation program in such a way that the state
would not be covered by the HUD-administered installation program.
Summary of Significant Issues Raised by Public Comment
There were a total of 35 commenters on the June 14, 2006, proposed
rule. Twenty-seven of the commenters were from the manufactured home
industry, including manufacturers, component suppliers, retailers,
installers, trade associations, and community operators. Five
commenters were from State Administrative Agencies (SAAs). The
remaining commenters included one member of the insurance industry, a
consumer group, and the Manufactured Housing Consensus Committee
(MHCC).
None of the comments received addressed the IRFA. However, the
Department did receive two general comments regarding the Regulatory
Flexibility Analysis summary in the preamble of the proposed rule. The
comments were:
``While HUD's proposed rule does include a cost-impact
estimate under the Regulatory Flexibility Act--showing a projected cost
increase of $974 for a single-section home and $1,023 for a double-
section home in HUD-administered states--there is no evidence that HUD
has considered the affordability of the proposed installation program
as a function of the affordable housing mandates.''
``Overall cost impact for installation is a large concern
for the industry. It is stated that a single-wide will increase
approximately $974 and multi-section will increase approximately $1,023
in states where HUD would administer the installation program. In some
parts of the U.S. this can make the purchase of a manufactured home
unaffordable.''
In developing the proposed rule, the Department developed an
installation program that implemented the statutory requirements
outlined in the Act, while balancing protection for the consumer with
the economic impact on small entities. Appendix A of the IRFA indicates
that the five regulatory requirements in the proposed rule with the
largest individual economic impact account for approximately 86 percent
of total estimated cost increase of a manufactured home. The
information in Table 1 summarizes these findings and a discussion
follows for each summary:
[[Page 35275]]
Table 1
------------------------------------------------------------------------
Cost impact Cost impact
Summary of regulatory requirement per single per multi
------------------------------------------------------------------------
Regulation establishing liability $302.52 $302.52
insurance for installers in states
without a qualifying installation
program................................
Regulation requiring the inspection of 300.00 350.00
every manufactured home installation in
states without a qualifying
installation program...................
Regulation establishing initial training 102.86 102.86
for installers in states without a
qualifying installation program........
Regulation establishing continuing 71.09 71.09
education for installers in states
without a qualifying installation
program................................
Regulation establishing recordkeeping 62.02 62.02
requirements for installers in states
without a qualifying installation
program. Requires that all information
must be kept for 5 years...............
------------------------------------------------------------------------
1. Liability Insurance--Section 3286.205(d) of the proposed rule
required an applicant for an installation license to provide evidence
of general liability insurance in the amount of at least $1 million.
The Department received comments suggesting eliminating or reducing the
limits on the provision. Additional commenters suggested including a
surety or insurance bond to protect the consumers from faulty
installation designs or incomplete work.
The Department agrees with the commenters that surety or insurance
bonds would provide better protection to the consumer than the
liability insurance requirement. Therefore, the Department replaced the
liability insurance requirement in the proposed rule with a surety
bond/insurance requirement that is sufficient to cover the cost of
repairing all damage to the home and its supports caused by the
installer during the installation of the home. (See Sec. 3286.205(d)
in the final rule). This change also reduced the burden on small
entities.
2. Inspections--Section 3286.505 of the proposed rule required each
manufactured home installed in states where HUD administers the
installation program to be inspected. Section 605 of the Act (42 U.S.C.
5404) calls for the establishment of an installation program that
includes inspection of the installation of manufactured homes. Many
commenters suggested inspecting less than 100 percent of all
installations. The Department does not have any evidence that suggests
such an inspection program would provide sufficient consumer
protection; therefore, the final rule remains unchanged.
3. Installer Training--Section 3286.205(b)(1) of the proposed rule
required an applicant for an installation license to complete 12 hours
of training in states where HUD administers the installation program.
Section 605 of the Act (42 U.S.C. 5404) calls for the establishment of
an installation program that includes installer training. The
Department did not receive any comments regarding the initial training
of installers; therefore, the final rule remains unchanged.
4. Installer Continuing Education--Section 3286.205(b)(2) of the
proposed rule required the licensed installer in states where HUD
administers the installation program to complete 8 hours of continuing
education during the 3-year license period to qualify for renewal of an
installation license. The Department did not receive any comments
regarding the continuing education requirement for installers;
therefore, the final rule remains unchanged.
5. Installer Records--Section 3286.413 of the proposed rule
required that installers maintain the required records for 5 years
after the installer certifies completion of the home in states where
HUD administers the installation program. Fifteen commenters suggested
reducing the record retention requirement to 3 years. The Department
agreed and changed the record retention requirement to 3 years in the
final rule.
Description and Estimated Number of Small Entities Regulated
The final rule will apply to any business that manufactures, sells
or leases, or installs manufactured homes. The rule also contains
requirements for persons to qualify to provide the training required
for installers. This rule also establishes requirements that must be
met by a state to implement and administer its own installation program
in such a way that the state would not be covered by the HUD-
administered installation program.
The rule has differing requirements for the regulated entities
depending on whether the home is being installed in a state with a
qualified installation program or a state covered by the HUD-
administered program.
The information presented in Table 2 was gathered from data
collected by the Office of Manufactured Housing Programs based on the
available data for 2006. The number of states expected to administer an
installation program is estimated based on close correspondence with
state representatives regarding the state's intentions.
Table 2.--Regulated Entities and Small Entities
----------------------------------------------------------------------------------------------------------------
Number of Small Business Percentage of
North American Industrial Description of regulated Administration Number of regulated
Classification Schedule primary entity entities size standard small entities entities
----------------------------------------------------------------------------------------------------------------
All States--The requirements in Subpart A are applicable in all states
----------------------------------------------------------------------------------------------------------------
321991....................... Manufacturers... 222 500 employees.. 198 89
453930....................... Retailers....... 5151 500 employees.. 5151 100
----------------------------------------------------------------------------------------------------------------
States Without Installation Programs--The requirements in Subparts B through H are applicable in these states
----------------------------------------------------------------------------------------------------------------
453930....................... Retailers....... 340 500 employees.. 340 100
238990....................... Installers...... 1021 $12 million.... 1021 100
611519....................... Trainers........ 50 $6 million..... 50 100
----------------------------------------------------------------------------------------------------------------
[[Page 35276]]
States With Installation Programs--The requirements in Subpart I are applicable in these states
----------------------------------------------------------------------------------------------------------------
States.......... 35 50,000 0 0
population.
----------------------------------------------------------------------------------------------------------------
Description of the projected reporting, recordkeeping, and other
compliance requirements of the final rule, including an estimate of the
classes of small entities that will be subject to the requirement and
the type of professional skills necessary for preparation of the report
or record.
The final rule contains information collection requirements,
installer licensing requirements, installer surety bond/insurance
requirements, installation inspection requirements, installer trainer
registration, and certification of states administering an installation
program. Appendix A provides a detailed cost analysis of each section
of the final rule.
Identification, to the extent practicable, of all relevant federal
rules that may duplicate, overlap, or conflict with the final rule.
The Department is unaware of any conflicting federal rules. The
final rule requires similar information to that required in 24 CFR
3282.552, which requires manufacturers to submit monthly label reports
to their Production Inspection Primary Inspection Agency (IPIA).
Section 3282.553 (24 CFR 3282.553) requires each IPIA to provide the
information in the monthly label reports to the Department. This
information is currently provided on OMB-approved form HUD-302. Section
3286.9 in the final rule requires the manufacturer to provide similar
information to the Department for the purposes of installation.
To eliminate the possible duplication of reporting requirements,
the Department revised form HUD-302 such that the information required
in 24 CFR 3282.552 and 3286.9 may be provided in a single form
completed by the manufacturer. This revised form is part of the
Department's Paperwork Reduction Act submission.
Description of any significant alternatives that accomplish the
stated objectives of applicable statutes that minimize any significant
economic impact of the proposed rule on small entities, including
alternatives considered.
The section Summary of Significant Issues Raised by Public Comment
discusses the five regulatory requirements in the proposed and final
rules that have the greatest economic impact on small entities.
Additional alternatives were also considered during the development of
the final rule as a result of the public comment.
Alternative 1. Section 3286.5(b)(2) requires the manufacturer to
include instructions for supporting the manufactured home temporarily,
pending the first siting of the home for occupancy.
Alternative Considered--The Department considered eliminating this
requirement as the result of public comment; however, the importance of
assuring that the temporary supports will be sufficient to prevent the
home and its transportable sections from being brought out of
conformance with the Construction and Safety Standards in 24 CFR part
3280 prior to sale is a necessary consumer protection considering the
small costs associated with this section. Furthermore, the Department
received additional comments stating the provisions are beneficial and
should remain in the final rule.
Alternative 2. Section 3286.7(b) requires the retailer to provide
the purchaser or lessee with a consumer disclosure prior to the
purchase or lease of a manufactured home.
Alternative Considered--The Department considered eliminating this
requirement as a result of public comment; however, the majority of
public comment was in favor of the disclosure because of the importance
of consumer protection during the purchase or lease of a manufactured
home. This consumer protection justifies the small costs associated
with this section.
Alternative 3. Section 3286.9(d) of the proposed rule required the
manufacturer to include installation instructions in each home
regardless of state.
Alternative Considered--A single commenter suggested requiring the
manufacturer to provide installation instructions only in homes
installed in states where HUD administers the installation program.
Section 605 of the Act (42 U.S.C. 5404) requires the manufacturer to
provide the design and instructions for the installation of each
manufactured home, that have been approved by a design approval
inspection agency; therefore, the requirement is consistent with the
statutory requirement. (See Sec. 3286.9(b) of the final rule.)
Alternative 4. Section 3286.13(a) of the proposed rule required the
retailer or distributor to maintain for 5 years a copy of the sales or
lease record for all homes sold or leased regardless of state.
Alternative Considered--The Department revised the final rule
requiring the retailer or distributor to maintain a copy of the sales
or lease record for homes sold or leased in states where HUD
administers the installation program for 3 years (See section
3286.113(e) of the final rule). This reduces the recordkeeping burden
on retailers and distributors.
Alternative 5. Section 3286.103(a) of the proposed rule required
retailers and distributors to provide the purchaser with a copy of
either:
``(1) The manufacturer's DAPIA-approved installation instructions
for the home; or
(2) If the installation requires a design that is different from
that provided by the manufacturer, an installation design and
instructions that do not take the home out of compliance with the
construction and safety standards in part 3280 of this chapter. * * *''
Many commenters agreed that the retailer should provide the
purchaser with a copy of the DAPIA-approved installation instructions
for every home in states where HUD administers the installation
program. However, many commenters said the retailer should not be
required to provide an installation design and instructions that differ
from the DAPIA-approved installation instruction if the retailer has
not agreed to provide any setup in connection with the sale of the home
and the installation requires a design that is different from that
provided by the manufacturer for the home. HUD agrees that the retailer
or manufacturer should provide the installation design and instructions
only for installations that require designs that differ from those
provided by the manufacturer when the retailer or
[[Page 35277]]
manufacturer agrees to provide any setup in connection with the sale of
the home. The proposed rule placed the entire burden of providing the
installation instructions on the retailer.
Accordingly, the final rule has been revised to require: (1) The
retailer to provide the purchaser with a copy of the DAPIA-approved
installation instructions for each manufactured home, and (2) the
retailer or manufacturer to provide to the installer the installation
design and instructions for installations that require designs that
differ from those provided by the manufacturer, when the retailer or
manufacturer agrees to provide any setup in connection with the sale of
the home (See Sec. 3286.103(b) of the final rule).
Alternative 6. Section 3286.211(a) of the proposed rule set an
expiration date of 3 years for installation licenses issued in states
where HUD administers the installation program.
A single commenter suggested extending the term of the license to 5
years to reduce the burden on installers. Another commenter suggested
reducing the licensing term to one year to ensure installers are
knowledgeable of new installation requirements. The term of the license
remains 3 years in the final rule to balance the burden on installers
and HUD, while ensuring installers are kept up to date on updates to
the Model Installation Standards.
Alternative 7. Record Retention Requirements--The proposed rule
requires that installers, retailers, and trainers maintain the required
records for 5 years in states where HUD administers the installation
program.
Alternative Considered--The Department agreed with the 15
commenters that suggested reducing the record retention requirement to
3 years. The Department agreed and changed the record retention
requirement to 3 years in the final rule, thereby reducing record
retention burden on small entities.
[[Page 35278]]
Appendix A.--24 CFR part 3286: Manufactured Housing Installation Program Cost Impact Analysis Matrix
--------------------------------------------------------------------------------------------------------------------------------------------------------
Cost Cost Annual
Number of impact per impact per cost Total
Section Regulated party parties Number of single- multi- impact per annual Cost impact notes
affected homes section section regulated cost
home home party impact
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sec. 3286.1........... ................... .......... .......... .......... .......... .......... .......... This section sets forth the
purpose of Subpart A. The
requirements in Subpart A apply
to all manufactured homes
regardless of the state of
installation. There is no cost
associated with this section.
Sec. 3286.2........... ................... .......... .......... .......... .......... .......... .......... This section sets forth the
applicability of all subparts.
There is no cost associated with
this section.
Sec. 3286.3........... ................... .......... .......... .......... .......... .......... .......... This section sets forth terms and
definitions in this part. There
is no cost associated with this
section.
Sec. 3286.5........... Manufacturer....... 222 135,000 $0.87 $0.87 $527.03 $117,000 This section provides for an
overview of the installation
program including the HUD
installation program, state
installation programs, and
manufacturer and retailer
requirements. There is no
associated cost with this
section other than in Sec.
3286.5(c)(2). Section
3286.5(c)(2) requires the
manufacturer to include
instructions for supporting the
manufactured home temporarily
and protecting the interior from
damage, pending the first
installation of the home for
occupancy. The instructions must
be adequate to assure that the
temporary supports used will be
sufficient to prevent the home
and its transportable sections
from being brought out of
conformance with the
construction and safety
standards or its sections if
stored on such supports for more
than 30 days. This would include
costs for third-party design
review and approval (4 hours of
DAPIA review and approval
labor). The installation
instructions themselves are
already required under 24 CFR
3280. However, this review cost
is a one-time annualized total
cost averaged on a per-home
basis. The Department estimates
20 hours to review and revise
the instructions at $75 per hour
for 78 manuals. This cost is
averaged for 135,000 homes and
the 78 manuals. (20*75*78)/
135,000=$0.867/home.
Sec. 3286.7(a)........ Manufacturer....... 222 135,000 2.55 2.55 1,551.89 344,520 Requires the manufacturer to put
a notice in the consumer manual
for reinstalled homes. There
will be a cost to the
manufacturer for this notice.
This notice must be provided for
ALL homes. The cost to the
manufacturer would include the
one time cost of developing the
disclosure (one hour at $75 per
hour per manual), the initial
placement in the consumer manual
(one hour at $15 per hour per
manual), and the continued
placement of the disclosure in
the consumer manual (10 minutes
at $15 per hour). This cost is
averaged for 135,000
homes.{(1*75*78)+(1*15*78)+(0.16
67*15*135,000){time} /
135,000=$2.55/home.
Sec. 3286.7(b)........ Retailer........... 5151 135,000 5.36 5.36 140.52 723,825 Requires the retailer to provide
the purchaser or lessee with a
consumer disclosure. The
requirements of this disclosure
are also provided for in this
section. This notice must be
provided for all homes. There
will be a cost to the retailer
associated with this disclosure.
The cost to the retailer would
include the one-time cost of
developing the disclosure (one
hour at $75 per hour) and
providing the disclosure to the
consumer before the sale of each
home (10 minutes at $15 per
hour). This cost is averaged for
135,000 homes.
{(1*75*5151)+(0.1667*15*135,000)
{/135,000=$5.36/home.
[[Page 35279]]
Sec. 3286.9(a)........ Manufacturer....... 222 135,000 2.50 2.50 1,520.27 337,500 This section requires
manufacturers to provide the
initial tracking information
about each home to HUD. This
must be done for all homes
regardless of state. Much of
this information is currently
being provided by manufacturers
via form HUD-302. The form HUD-
302 will be revised to include
the anticipated ship date. There
is a cost associated to the
manufacturer for providing this
information. The cost to the
manufacturer will be the time
required to provide this
additional information to HUD,
estimated at 10 minutes per home
at $15 per hour. This cost is
averaged for 135,000 homes.
(0.1667x15*135,000)/
135,000=$2.50/home.
Sec. 3286.9(b)........ ................... .......... .......... .......... .......... .......... .......... This section requires
manufacturers to provide a copy
of the DAPIA-approved
installation instructions with
the home. The costs related to
the revisions to the
manufacturer's installation
instructions have been accounted
for in the Model Manufactured
Home Installation Standards
rule; therefore, the cost is not
considered here.
Sec. 3286.11.......... Manufacturer, 20,827 135,000 40.00 40.00 259.28 5,400,000 This section deals with the
Retailer, temporary storage of units.
Installer. There is a cost associated with
the provision requiring the
temporary installation
instructions. This cost was
accounted for in Sec.
3286.5(c) above. There is a cost
to the manufacturer, retailer,
or installer associated with the
temporary support of the home
and protecting the interior of
the home from damage. The cost
is estimated at one additional
hour for the support and
protection of the home (one hour
at $40 per hour). The estimate
includes the extra time for
supporting each home (135,000).
(one hour*40*135,000)=$5,400,000
or $40/home.
Sec. 3286.13.......... ................... .......... .......... .......... .......... .......... .......... This section provides that any
provision of a contract or
agreement entered into by a
manufactured home purchaser that
seeks to waive any recourse to
either the HUD installation
program or a state-qualifying
installation program is void.
This section does not have an
associated cost impact.
Sec. 3286.15.......... ................... .......... .......... .......... .......... .......... .......... This section states that the
Secretary will seek input from
the MHCC when revising the
installation program regulations
in this part 3286, by providing
the MHCC an opportunity to
comment on any revision. This
section does not have any
associated cost impact.
Sec. 3286.101......... ................... .......... .......... .......... .......... .......... .......... This section provides for the
purpose of Subpart B to
establish the systems for
tracking and certifying a
manufactured home installation
that is to be completed in
accordance with the HUD-
administered installation
program. There is no cost
associated with this provision.
Sec. 3286.102(a)...... Manufacturer....... 222 6,750 2.50 2.50 76.01 16,875 This section requires
manufacturers to provide notice
to the retailer that the
tracking information is provided
to HUD and that the retailer
must update the information as
required. This must be done for
all homes where HUD administers
the installation program. There
is a cost associated with this
requirement to the manufacturer.
The cost to the manufacturer
will be the time required to
provide a copy of the required
form HUD-302 to the retailer.
This is estimated at 10 minutes
per home at $15 per hour. This
cost is averaged for 6,750
homes. (0.1667x15*6,750)/
6,750=$2.50/home.
[[Page 35280]]
Sec. 3286.102(b)...... Manufacturer....... 222 6,750 3.54 3.54 107.64 23,895 This section requires
manufacturers to include in its
installation instructions for
the home a notice that the home
is required to be installed in
accordance with the two
acceptable methods. This must be
done for all homes where HUD
administers the installation
program. There is a cost
associated with this requirement
to the manufacturer. The cost to
the manufacturer entity would
include the one-time cost of
developing the notice (one hour
at $75 per hour), the initial
placement in the installation
manual (one hour at $15 per
hour), and the continued
placement of the notice in the
installation manual (10 minutes
at $15 per hour). This cost is
averaged for 6,750 homes.
{(1x75x78)+(1x15*78)+(0.1667*15*
6,750){time} /6,750=$3.54 home.
Sec. 3286.103(a)(1)... Retailer........... 340 6,750 $2.50 2.50 49.63 16,875 For each manufactured home sold
to a purchaser in a state in
which HUD administers an
installation program, the
retailer must ensure that the
purchaser is provided with a
copy of the installation
instructions. This will have an
associated cost to the retailer
in HUD states. Since the
installation instructions are
required to be provided by the
manufacturer, with the home, the
cost to the retailer will be the
cost of providing the
instructions to the consumer,
estimated at 10 minutes per home
at $15 per hour. This cost is
averaged for 6,750 homes.
6,750(0.16667*15)=$16,875.
Sec. 3286.103(a)(2)... Manufacturer....... 222 6,750 37.50 37.50 1,140.20 253,125 Requires that the manufacturer/
DAPIA approve installation
designs and instructions if the
installation requires a design
that is different from the
installation instructions
required and accounted for in
the Model Manufactured Home
Installation Standards. There is
a cost associated with this
requirement to the manufacturer.
The cost to the manufacturer
entity would include the cost of
approving the site-specific
designs estimated to occur in
20% of installations. The time
is estimated at 2.5 hours at $75/
hr. This cost is averaged for
6,750 homes.
0.2*6,750*2.5*75=$253,125.
Sec. 3286.103(b)...... Retailer........... 340 6,750 2.13 2.13 42.19 14,345 When the retailer agrees to
provide any set up in connection
with the sale of the home, the
retailer must provide a copy of
the same DAPIA-approved
installation instructions or, as
applicable, installation design
and instructions to each
company; or, in the case of a
sole proprietor, the individual
who performs set up or
installation work on the home.
This will have an associated
cost to the retailer in HUD
states. Since the installation
instructions are required to be
provided by the manufacturer
with the home, the cost to the
retailer will be the cost of
providing the installation
instructions, estimated at 10
minutes per home. Assume the
retailer will provide set up in
connection with the sale of the
home in 85% of all sales as a
conservative estimate. This cost
is averaged for 6,750 homes.
0.85*0.16667*15*6,750=$14,345.
Sec. 3286.105......... ................... .......... .......... .......... .......... .......... .......... This section requires that the
installer that installs a
manufactured home in a state
that does not have a qualifying
installation program be
certified or licensed in
accordance with Subpart C. The
cost associated with this is
evaluated in Subpart C.
[[Page 35281]]
Sec. 3286.107......... ................... .......... .......... .......... .......... .......... .......... These sections set forth
requirements that, at a minimum,
the installation must comply
with the manufacturer's
installation instructions or the
alternative design by a
professional engineer or
registered architect approved by
the manufacturer and DAPIA. The
cost associated with these
requirements was evaluated as
part of the final rule for the
Model Manufactured Home
Installation Standards and Sec.
3286.103; therefore, is not
included here.
Sec. 3286.109......... ................... .......... .......... .......... .......... .......... .......... The installer or the retailer
must arrange for the inspection
of the installation work on any
manufactured home. Before the
sale of the home is considered
complete, the installer must
certify, and the inspector must
verify, the home as having been
installed in conformance with
the requirements of Sec.
3286.109(a). The requirements
for installer certification are
set and accounted for in Sec.
3286.111.
Sec. 3286.111(a)(1)... Installer.......... 1,021 6,750 20.00 20.00 132.22 135,000 When the installation work is
complete, an installer must
certify that: The manufactured
home has been installed in
compliance with the
manufacturer's installation
instructions or with an
installation design and
instructions that have been
certified by a professional
engineer or registered architect
as providing a level of
protection for occupants of the
home that equals or exceeds the
protection provided by the
installation standards in part
3285 of this chapter and the
installation of the home has
been inspected as required by
part 3286 and an inspector has
verified the installation as
meeting the requirements of this
part 3286. There will be costs
associated with the provisions
in this section to the installer
for homes that are sited in
states without a qualifying
installation program. The cost
to the installer would include
the time to complete specific
information required for each
individual certification (30
minutes at $40 per hour). This
cost is averaged for 6,750
homes. (0.5*40*6,750)=$135,000.
Sec. 3286.111(a)(2)... Installer.......... 1,021 6,750 300.00 350.00 2,214.74 2,261,250 This section provides that the
installation of every
manufactured home that is
subject to the HUD-administered
installation program is required
to be inspected for each of the
installation elements to ensure
it complies with the
requirements of part 3285 of
this chapter. This provision
will have an associated cost for
the installations in that they
are subject to the HUD-
administered installation
program. The cost associated
with this provision will be
borne by the installer. Many of
the homes inspected by local
jurisdictions may not incur an
additional cost for the
inspection beyond the existing
permitting and inspection fees
already borne by the installer.
However, in areas without local
jurisdictions, the installer
will have to pay a qualified
third party to inspect the
installation. Estimating that
each inspection for a single-
wide unit and double-wide unit
will take 3 hours and 3.5 hours,
respectively, at a rate of $100
per hour for each installation
in a HUD-administered
installation state provides a
conservative estimate of the
cost.
Sec. 3286.111(b)...... Installer.......... 1,021 6,750 2.50 2.50 16.53 16,875 The installer must provide a
signed copy of its certification
to the retailer that contracted
with the purchaser for the sale
of the home, and to the
purchaser or other person with
whom the installer contracted
for the installation work. There
will be costs associated with
the provisions in this section
to the installer for homes that
are sited in states without a
qualifying installation program.
The cost to the retailer will be
the cost of providing the
information to HUD, estimated at
10 minutes per home at $15 per
hour. This cost is averaged for
6,750 homes.
6,750*(0.16667*15)=$16,875.
[[Page 35282]]
Sec. 3286.113(a)...... Retailer........... 340 6,750 3.75 3.75 74.45 25,312 The retailer or distributor of
the home must provide HUD with
tracking information about the
home within 30 days from the
time that a purchaser or lessee
enters into a contract to
purchase or lease a manufactured
home. This must be done for all
homes in states in which HUD
administers the installation
program. There is a cost
associated with this requirement
to the retailer. The cost to the
retailer will be the time
required to provide this
information to HUD estimated at
15 minutes per home at $15 per
hour. This cost is averaged for
6,750 homes. (0.25x15*6,750)/
6,750=$3.75/home.
Sec. 3286.113(b)...... Retailer........... 340 6,750 3.75 3.75 74.45 25,312 In addition to the information
required to be provided by the
retailer pursuant to Sec.
3286.113(a), within 30 days from
the date of installation, the
retailer must provide HUD with
additional information regarding
the installation. There will be
costs associated with the
provisions in this section to
the retailer for homes that are
sited in states without a
qualifying installation program.
The cost to the retailer would
include the time to complete
specific information required
for each individual concurrence
(15 minutes at $15 per hour).
This cost is averaged for 6,750
homes. (0.25*15*6,750)/
6,750=3.75.
Sec. 3286.113(c)...... Retailer........... .......... .......... .......... .......... .......... .......... This section provides for the
method in which the information
in Sec. Sec. 3286.113(a) and
(b) can be provided. There is no
cost associated with this
provision.
Sec. 3286.113(d)...... Retailer........... 340 675 0.38 0.38 7.44 2,531 This section provides for the
correction of information in
Sec. Sec. 3286.113(a) and
(b). There is a cost associated
with this provision to the
retailers in states where HUD
administers the installation
program. The cost to the
retailer would include the time
to correct the specific
information. It is estimated
that 10% of the information will
have to be corrected taking 15
minutes for each response at $15
per hour. This cost is averaged
for 6,750 homes in HUD states.
0.1*(0.25*15*6,750)=$2,531.25.
The cost per home=$2,531.25/
6,750=$0.38.
Sec. 3286.113(e)...... Retailer........... 340 6,750 41.30 41.30 820.00 278,800 This section requires that
retailers must maintain sales
records for 3 years. There is a
cost associated with this
provision to the retailers in
states where HUD administers the
installation program. The cost
is estimated as the required
time (filing and organization of
files at 4 hours/month at $15
hour) and materials to keep such
storage (file cabinets and
computer disk space $100).
340($100+4*12*$15)=$278,800.
Sec. 3286.115......... ................... .......... .......... .......... .......... .......... .......... This section defines the date of
installation. There is no cost
associated with this provision.
Sec. 3286.117......... ................... .......... .......... .......... .......... .......... .......... This section defines the
completion of sale. There is no
cost associated with this
provision.
Sec. 3286.201......... ................... .......... .......... .......... .......... .......... .......... This section outlines the purpose
of Subpart C, which is to
establish the requirements for a
person to qualify to install a
manufactured home in accordance
with the HUD-administered
installation program. No costs
are associated with this
section.
Sec. 3286.203......... ................... .......... .......... .......... .......... .......... .......... This section provides when a
license is needed and when a
license is not needed. No costs
are associated with this
provision. The cost of the
license is addressed in Sec.
3286.205 and Sec. 3286.207.
[[Page 35283]]
Sec. 3286.205(a)...... ................... .......... .......... .......... .......... .......... .......... This section provides for the
required experience for
installers in states without a
qualifying installation program.
There is no cost associated with
this provision.
Sec. 3286.205(b)(1)... Installer.......... 1,021 6,750 102.86 102.86 680.00 694,280 This section provides for the
required initial training for
installers in states without a
qualifying installation program.
There is a cost associated with
this provision for installers.
The cost associated with this
requirement is estimated as the
cost for the 12-hour training
class (approximately $200) and
the missed wages (12*$40 per
hour) while attending the class.
This cost is averaged for 6,750
homes.
(200+(12*40))*1,021=$694,280.
Sec. 3286.205(b)(2)... Installer.......... 1,021 6,750 71.09 71.09 470.00 479,870 This section provides for the
continuing education for
installers in states without a
qualifying installation program.
There is a cost associated with
this provision for installers.
The cost associated with this
requirement is estimated as the
cost for the 8-hour continuing
education classes (approximately
$150) and the missed wages while
attending the class (8*40 per
hour). These provisions will not
be applicable until 3 years
after the implementation of the
program, i.e., when the initial
licenses begin to expire. This
cost is averaged for 6,750
homes.
(150+(8*40))*1,021=$479,870.
Sec. 3286.205(c)...... Installer.......... 1,021 6,750 9.66 9.66 130.00 132,730 This section provides for the
testing requirement for
installers in states without a
qualifying installation program.
There is a cost associated with
this provision for installers.
The cost associated with this
requirement is estimated as the
cost for the testing fee
(approximately $50) and the
missed wages while attending the
exam (2)*$40 per hour. This cost
is averaged for 6,750 homes.
(50+(2*40))*1,021=$132,730.
Sec. 3286.205(d)...... Installer.......... 1,021 6,750 226.89 226.89 1,500.00 1,531,500 This section provides for the
surety bond and insurance
requirements for installers in
states without a qualifying
installation program. There is a
cost associated with this
provision for installers. The
cost associated with the premium
estimated from insurance company
and surety bond companies will
be approximately $1,500 per
year. This cost is averaged for
6,750 homes.
Sec. 3286.207(a)...... Installer.......... 1,021 6,750 6.05 6.05 40.00 40,840 This section requires the
installer to complete an
application for the license in
states without a qualifying
installation program. There will
be costs associated with this
provision to installers in
states without a qualifying
installation program. The cost
associated with this requirement
is estimated as the cost for the
installer to read the
instructions and complete the
form. The cost is estimated at
one hour at $40 per hour.
Sec. 3286.207(b)...... Installer.......... 1,021 6,750 6.05 6.05 40.00 40,840 This section requires the
installer to provide proof of
experience in states without a
qualifying installation program.
There will be costs associated
with this provision to
installers in states without a
qualifying installation program.
The cost associated with this
requirement is estimated as the
cost for the installer to
provide written verification of
the experience. The cost is
estimated at one hour at $40 per
hour.
Sec. 3286.207(c)...... Installer.......... 1,021 6,750 1.51 1.51 10.00 10,210 This section requires the
installer to provide proof of
training in states without a
qualifying installation program.
There will be costs associated
with this provision to
installers in states without a
qualifying installation program.
The cost associated with this
requirement is estimated as the
cost for the installer to copy
the training certificate of
completion. The cost is
estimated at 0.25 hour at $40
per hour.
[[Page 35284]]
Sec. 3286.207(d)...... Installer.......... 1,021 6,750 1.51 1.51 10.00 10,210 This section requires the
installer to provide proof of
the surety bond or insurance in
states without a qualifying
installation program. There will
be costs associated with this
provision to installers in
states without a qualifying
installation program. The cost
associated with this requirement
is estimated as the cost for the
installer to copy the
appropriate documents and
provide proof of payment. The
cost is estimated at 0.25 hour
at $40 per hour.
Sec. 3286.207(e)...... Installer.......... 1,021 6,750 0.50 0.50 3.33 3,403 This section requires the
installer to provide a list of
states in which they hold or
have held installer licenses.
There will be costs associated
with this provision to
installers in states without a
qualifying installation program.
The cost associated with this
requirement is estimated as the
cost for the installer to
provide the list of states. It
is expected that this will only
apply to approximately half of
the applicants. The cost is
estimated at 5 minutes at $40
per hour.
Sec. 3286.207(f)(1)... ................... .......... .......... .......... .......... .......... .......... This section provides for the
issuance or denial of an
installation license. No cost is
associated with this provision.
Sec. 3286.207(f)(2)... Installer.......... 1,021 6,750 0.09 0.09 0.59 600 This section allows the applicant
who is denied an installation
license an opportunity for a
presentation of views for the
purpose of establishing the
applicant's qualifications to
obtain an installation license.
There will be costs associated
with this provision to
installers in states without a
qualifying installation program.
The cost associated with this
requirement is estimated as the
cost for the installer to
request the presentation of
views. It is estimated that 2%
of the applicants applying for
an installation license will
request such a presentation
(approximately 20 installers).
The cost is estimated at 45
minutes at $40 per hour for 20
applicants. (45/60*$40*20)/
6,750=$0.09 per home.
Sec. 3286.207(g)...... ................... .......... .......... .......... .......... .......... .......... This section does not allow
transfer of licenses to other
entities. No cost is associated
with this provision.
Sec. 3286.209......... Installer.......... 1,021 6,750 0.09 0.09 0.59 600 This section provides for the
oversight of licensed
installers; the processes for
denial, suspension, or
revocation of an installation
license; and the reinstatement
of an installation license in
states without a qualifying
installation program. There are
no costs associated with the
provisions in this section other
than paragraph (d) in this
section. The cost associated
with this requirement is
estimated as the cost for the
installer to apply for a new
license. It is estimated that
less than 1% of the applicants
(10) will have their licenses
denied, suspended, or revoked.
The cost is estimated at 90
minutes at $40 per hour for 10
applicants. (90/60*$40*10)/
6,750=$0.09 per home.
Sec. 3286.211......... Installer.......... 1,021 6,750 6.05 6.05 40.00 40,840 This section provides for
expiration and the process for
renewal of an installation
license in states without a
qualifying installation program.
There are costs associated with
the provisions in paragraph (b)
in this section to installers.
The cost associated with this
requirement is estimated as the
cost for the installer to read
the instructions and complete
the form. The cost is estimated
at one hour at $40 per hour.
[[Page 35285]]
Sec. 3286.301......... ................... .......... .......... .......... .......... .......... .......... This section discusses the
purpose of Subpart D. The
purpose is to establish the
requirements for a person to
qualify to provide the training
required under Subpart C of this
part. This training is required
for manufactured home installers
who want to be licensed in
accordance with the HUD-
administered installation
program. No costs are associated
with this provision.
Sec. 3286.303(a)...... ................... .......... .......... .......... .......... .......... .......... This section requires that
qualified trainers must
adequately address the
curriculum and instruction-time
requirements established in
Subparts C and D of this part.
There is no cost associated with
this provision.
Sec. 3286.303(b)...... Trainer............ 50 6,750 12.30 12.30 1,660.00 83,000 This section requires qualified
trainers to maintain records of
the times, locations, names of
attendees at each session, and
content of all courses offered.
There is a cost associated with
this provision to trainers in
states without a qualifying
installation program. The cost
is estimated as the required
time (filing and organization of
files at 2 hours a week at $15
per hour) and materials to keep
such storage (file cabinets and
computer disk space $100). This
cost will be passed on to
installers through the cost of
the training class, and it is
conceivable that the installer
will pass this cost to the
consumer.
Sec. 3286.303(c)...... Trainer............ 50 6,750 1.51 1.51 204.20 10,210 This section requires qualified
trainers to provide completion
certificates to course
attendees. There is a cost
associated with this provision
to trainers in states without a
qualifying installation program.
The cost is estimated at 10
minutes per certificate at $60
per hour. This cost will be
passed on to installers through
the cost of the training class,
and it is conceivable that the
installer will pass this cost to
the consumer.
Sec. 3286.303(d)...... ................... .......... .......... .......... .......... .......... .......... This section requires qualified
trainers to retain all records
for 3 years. There is a cost
associated with this provision
to trainers in states without a
qualifying installation program.
The cost is estimated in Sec.
3286.303(b) above.
Sec. 3286.303(e)...... ................... .......... .......... .......... .......... .......... .......... This section may allow qualified
trainers to administer exams.
Since this is not a requirement,
there is no cost associated with
this provision.
Sec. 3286.305......... ................... .......... .......... .......... .......... .......... .......... This section provides for the
installation trainer criteria,
including experience and
curriculum. There are no costs
associated with the provisions
in this section other than
paragraph (c) of this section.
Paragraph (c) requires
registration to be considered a
qualified trainer. An individual
or other training entity must
submit to HUD certification that
training provided will meet the
requirements in Sec. Sec.
3286.308 and 3286.309. The cost
associated with this requirement
is considered in Sec.
3286.307(c)(2).
Sec. 3286.307(a)...... Trainer............ 50 6,750 0.44 0.44 60.00 3,000 This section requires the trainer
to submit an application. There
is a cost associated with this
provision. The cost associated
with this requirement is
estimated as the cost for the
trainer to read the instructions
and complete the form. The cost
is estimated at one hour at $60
per hour. This cost will be
passed on to installers through
the cost of the training class,
and it is conceivable that the
installer will pass this cost to
the consumer.
Sec. 3286.307(b)...... Trainer............ 50 6,750 0.44 0.44 60.00 3,000 This section requires the trainer
to submit proof of experience.
There is a cost associated with
this provision. The cost
associated with this requirement
is estimated as the cost for the
installer to provide written
verification of the experience.
The cost is estimated at one
hour at $60 per hour. This cost
will be passed on to installers
through the cost of the training
class, and it is conceivable
that the installer will pass
this cost to the consumer.
[[Page 35286]]
Sec. 3286.307(c)(1)... Trainer............ 50 6,750 0.11 0.11 15.00 750 This section requires the trainer
to submit a list of all states
where the applicant has had a
similar training qualification
revoked, suspended, or denied.
There is a cost associated with
this provision to the trainer.
The cost associated with this
requirement is the cost for the
trainer to provide the list of
states. The cost is estimated at
0.25 hour at $60 per hour. This
cost will be passed on to
installers through the cost of
the training class, and it is
conceivable that the installer
will pass this cost to the
consumer.
Sec. 3286.307(c)(2)... Trainer............ 50 6,750 0.22 0.22 30.00 1,500 This section requires the trainer
to submit a certification that
training provided is in
accordance with Subpart D and
will meet the curriculum
requirements established in Sec.
Sec. 3286.308 or 3286.309, as
applicable. There is a cost
associated with this provision
to the trainer. The cost
associated with this requirement
is estimated as the cost for the
trainer to provide the
certification. The cost is
estimated at 0.50 hour at $60
per hour. This cost will be
passed on to installers through
the cost of the training class,
and it is conceivable that the
installer will pass this cost to
the consumer.
Sec. 3286.307(d)...... Trainer............ 50 6,750 0.01 0.01 0.90 45 This section provides for the
confirmation or denial of
trainer qualification. There
will be costs associated with
this paragraph in states without
a qualifying installation
program. The cost associated
with this requirement is
estimated as the cost for the
trainer to request the
presentation of views. It is
estimated that 2% of the
applicants applying to be
qualified trainers will request
such a presentation. The cost is
estimated at 45 minutes at $60
per hour for 2% of the
applicants. (45/60*$60*0.02)(50)/
6,750=$0.01 per home.
Sec. 3286.307(e)...... ................... .......... .......... .......... .......... .......... .......... This section prohibits the
assignment of trainer
qualification to other entities.
There is no cost associated with
this section.
Sec. 3286.308......... ................... .......... .......... .......... .......... .......... .......... This section provides for the
training curriculum
requirements. There is no cost
associated with the provisions
in this section.
Sec. 3286.309......... ................... .......... .......... .......... .......... .......... .......... This section provides for the
continuing education trainer and
curriculum requirements. There
is no cost associated with the
provisions in this section.
Sec. 3286.311......... Trainer............ 50 6,750 0.01 0.01 0.90 45 This section provides for the
suspension or revocation of the
trainer's qualification. There
are no costs associated with the
provisions in this section other
than paragraphs (b) and (d) of
this section. Paragraphs (b) and
(d) provide for the presentation
of views for the qualified
trainer prior to suspension or
revocation of qualification
status. There will be costs
associated with this provision
to trainers in states without a
qualifying installation program.
The cost associated with this
requirement is estimated as the
cost for the installer to
request the presentation of
views. It is estimated that 2%
of the qualified trainers will
request such a presentation. The
cost is estimated at 45 minutes
at $60 per hour for 2% of the
qualified trainers. (45/
60*$60*0.02)(50)/6,750=$0.01 per
home.
[[Page 35287]]
Sec. 3286.313......... Trainer............ 50 6,750 0.44 0.44 60.00 3,000 This section provides for the
process for renewal of a
trainer's qualification in
states without a qualifying
installation program. There are
costs associated with the
provisions in paragraph (b) in
this section to trainers. The
cost associated with this
requirement is estimated as the
cost for the trainer to read the
instructions and complete the
form for renewal. The cost is
estimated at one hour at $60 per
hour. This cost will be passed
on to installers through the
cost of the class and is a
potential increase to the price
of the home.
Sec. 3286.401......... ................... .......... .......... .......... .......... .......... .......... This section discusses the
purpose of Subpart E. The
purpose of Subpart E is to set
out the responsibilities of the
installer who is accountable for
the installation of a
manufactured home in compliance
with the requirements of the HUD-
administered installation
program. There is no cost
associated with this section.
Sec. 3286.403......... ................... .......... .......... .......... .......... .......... .......... This section provides that an
installer of manufactured homes
must comply with the licensing
requirements set forth in
Subpart C of this part. There is
no cost associated with this
section. The cost of licensing
was done in the analysis of
Subpart C.
Sec. 3286.405(a)...... Installer.......... 1,021 6,750 20.00 20.00 132.22 135,000 This section requires that the
installer verify that the site
is appropriate for the
installation. There will be a
cost associated with this
requirement. The cost associated
with this requirement will
require the installer to conduct
a site investigation. It is
estimated that this
investigation will take 0.5 hour
at $40 per hour. The cost will
be averaged for 6,750 homes.
Sec. 3286.405(b)...... Installer.......... 1,021 6,750 0.20 0.20 1.33 1,360 This section requires that the
installer notify the retailer,
purchaser, and HUD if the site
is not appropriate for the
installation. There will be a
cost associated with this
requirement. The cost associated
with this requirement is
estimated as the cost for the
installer to provide the written
notification to the retailer.
This notification is estimated
to take 0.5 hour at $40 per
hour. It is estimated that this
notification will only be
required in 1% of installations.
The cost will be averaged for
6,750 homes.
Sec. 3286.405(c)...... Installer.......... 1,021 6,750 0.20 0.20 1.33 1,360 This section requires that the
installer notify the
manufacturer and retailer if a
failure to comply with the
construction and safety
standards is noticed during the
installation. There will be a
cost associated with this
requirement. The cost associated
with this requirement is
estimated as the cost for the
installer to provide the written
notification to the manufacturer
and retailer. This notification
is estimated to take 0.5 hour at
$40 per hour. It is estimated
that this notification will only
be required in 1% of
installations. The cost will be
averaged for 6,750 homes.
Sec. 3286.405(d)...... Retailer........... 340 6,750 0.10 0.10 2.00 680 This section requires that the
retailer provide a copy of the
notification in (b) and (c)
above to any subsequent
installers. There will be a cost
associated with this
requirement. The cost associated
with this requirement is
estimated as the cost for the
retailer to provide a copy of
the notification above to any
subsequent installer. This
notification is estimated to
take 15 minutes at $40 per hour.
The cost will be averaged for 1%
of homes installed in states
where HUD administers the
installation program.
Sec. 3286.407......... ................... .......... .......... .......... .......... .......... .......... This section requires that the
installer be responsible for the
work performed by each person
engaged to perform installation
tasks on a manufactured home in
accordance with the HUD-
administered installation
program. There is no cost
associated with the requirement.
Sec. 3286.409......... ................... .......... .......... .......... .......... .......... .......... This section provides information
regarding the inspection
requirements. There is a cost
associated with the requirement.
The cost regarding the
inspection is evaluated in Sec.
3286.111(a)(2).
[[Page 35288]]
Sec. 3286.411(a)...... Installer.......... .......... .......... .......... .......... .......... .......... When the installation work is
complete, an installer must
certify that: The manufactured
home has been installed in
compliance with the
manufacturer's installation
instructions or with an
installation design and
instructions that have been
certified by a professional
engineer or registered architect
as providing a level of
protection for occupants of the
home that equals or exceeds the
protection provided by the
installation standards in part
3285 of this chapter, and the
installation of the home has
been inspected as required by
this part Sec. 3286 and an
inspector has verified the
installation as meeting the
requirements of this part Sec.
3286. There will be costs
associated with the provisions
in this section to the installer
for homes that are sited in
states without a qualifying
installation program. This
provision is the same as Sec.
3286.111(a); therefore, the cost
is not calculated here.
Sec. 3286.411(b)...... Installer.......... .......... .......... .......... .......... .......... .......... The installer must provide a
signed copy of its certification
to the retailer that contracted
with the purchaser for the sale
of the home, and to the
purchaser or other person with
whom the installer contracted
for the installation work. There
will be costs associated with
the provisions in this section
to the installer for homes that
are sited in states without a
qualifying installation program.
This provision is the same as
Sec. 3286.111(b); therefore,
the cost is not calculated here.
Sec. 3286.413......... Installer.......... 1,021 6,750 124.03 124.03 820.00 837,220 This section provides for the
record-keeping requirements for
installers. It outlines all of
the information that must be
kept and mandates that it be
kept for 3 years. This section
will have an associated cost to
the installer in states without
qualifying installation
programs. The cost is estimated
as the required time (filing and
organization of files at 4 hours
a month at $15 per hour) and
materials to keep such storage
(file cabinets and computer disk
space $100). The cost will be
averaged for the 6,750 homes.
Sec. 3286.501......... ................... .......... .......... .......... .......... .......... .......... This section discusses the
purpose of Subpart F. The
purpose of Subpart F is to
provide additional detail about
the inspection that must be
performed by a qualified third-
party inspector before the
installation of a manufactured
home may be approved by the
inspector and certified by the
installer under the HUD-
administered installation
program. There is no cost
associated with this section.
Sec. 3286.503(a)...... Installer.......... 1,021 6,750 20.00 20.00 132.22 135,000 This section requires the
installer to arrange for an
inspection and provides for the
timing of the inspection. There
is a cost associated with this
requirement to the installer. It
is estimated that the installer
will take 0.5 hour at $40 per
hour per installation to arrange
for the inspection of the
installation.
0.5*40*6,750=$135,000.
Sec. 3286.503(b)...... ................... .......... .......... .......... .......... .......... .......... This section provides for the
retailer disclosure requirement.
There are costs associated with
the retailer disclosure
requirements; however, this is
accounted for in Sec.
3286.7(b).
Sec. 3286.503(c)...... Installer.......... 1,021 6,750 20.00 20.00 132.22 135,000 This section requires the
installer to provide a copy of
the installation instructions to
the inspector. There is a cost
associated with this provision
and it is estimated at $20 per
installation.
[[Page 35289]]
Sec. 3286.505......... Installer.......... .......... .......... .......... .......... .......... .......... This section provides that the
installation of every
manufactured home that is
subject to the HUD-administered
installation program is required
to be inspected for each of the
installation elements to ensure
it complies with the
requirements of part 3285 of
this chapter. This provision
will have an associated cost for
the installations that are
subject to the HUD-administered
installation program. The cost
associated with this provision
is accounted for in Sec.
3286.111(a)(2).
Sec. 3286.507(a)...... ................... .......... .......... .......... .......... .......... .......... This section requires that when
an inspector is satisfied that
the manufactured home has been
installed in accordance with the
requirements; the inspector must
provide verification in writing
to the installer. There are
costs associated with these
provisions which have been
included in Sec.
3286.111(a)(2).
Sec. 3286.507(b)...... Installer.......... .......... .......... .......... .......... .......... .......... Once an installation has been
inspected and verified, the
installer is permitted to
certify the installation as
provided in Sec. 3286.111.
There are costs associated with
these provisions; however, they
have been determined in Sec.
3286.111(a).
Sec. 3286.509(a)...... Installer.......... 1,021 6,750 2.25 2.25 14.88 15,187 This section provides for the
reinspection of the installation
upon failure to pass. This
section contains procedures for
failed inspections, request for
review, and cost for
reinspection. This section does
have costs associated with the
provisions. It is estimated that
5% of homes will need to be
reinspected in accordance with
this section. The cost is
estimated at 30 minutes for the
inspector to notify the
installer at $90 per hour.
0.05*(30/
60*90)*6,750=$15,187.50.
Sec. 3286.509(b)...... Installer.......... 1,021 6,750 10.00 10.00 66.11 67,500 This section provides that the
cost of reinspection of the
installation upon failure to
pass must be paid by the
retailer or installer. This
section does have a cost
associated with it and is
estimated at $200 for the
reinspection and verification.
It is estimated that only 5% of
homes will require reinspection.
Sec. 3286.511(a) and ................... .......... .......... .......... .......... .......... .......... This section provides the
(b). inspector qualifications and
inspector independence clause in
states that are subject to the
HUD-administered installation
program. There is no cost
associated with these
provisions.
Sec. 3286.511(c)...... Inspector.......... 4,000 .......... .......... .......... 0.19 750 This section allows the inspector
a presentation of views prior to
suspension or revocation of an
inspector's authority to inspect
manufactured home installations.
There is a cost associated with
this provision. It is estimated
that less than five inspectors a
year will request a presentation
of views. The cost would not
have an impact on the cost of
manufactured homes. The cost to
the inspector is estimated at
1.5 hours at $100 per hour for
five inspectors. (1.5
hours*$100)(5)=$750. This cost
will not affect the cost of the
manufactured home.
Sec. 3286.511(d)...... Inspector.......... 4,000 .......... .......... .......... 0.19 750 This section allows the inspector
whose qualification has been
suspended or revoked to apply
for reauthorization. There will
be costs associated with this
provision to the inspector. The
cost associated with this
requirement is estimated as then
cost for the trainer to apply
for qualifications. It is
estimated that less than five
inspectors will have their
qualifications suspended or
revoked. The cost is estimated
at 90 minutes at $100 per hour
for five inspectors. (90/
60*$100*5)=$750. This cost will
not affect the cost of the
manufactured home.
[[Page 35290]]
Sec. 3286.601......... ................... .......... .......... .......... .......... .......... .......... This section discusses the
purpose of Subpart G. The
purpose of this subpart is to
set out the requirements that
apply to a retailer with respect
to the federal installation
requirements applicable to new
manufactured homes that the
retailer sells or leases and
that will be installed in states
that do not have qualifying
installation programs. These
requirements are in addition to
other requirements that apply to
retailers of manufactured homes
pursuant to other parts of this
chapter. There are no costs
associated with these
provisions.
Sec. 3286.603......... ................... .......... .......... .......... .......... .......... .......... This section provides for
retailer requirements at or
before sale. Specifically, the
retailer disclosure to the
purchaser and temporary support.
There are costs associated with
this section; however, these
costs have been calculated in
Sec. 3286.7(b).
Sec. 3286.605......... ................... .......... .......... .......... .......... .......... .......... This section provides for
retailer requirements after
sale; specifically, the tracking
of the installation, retailer
concurrence on the
certification, and other
tracking and compliance
requirements. There are costs
associated with this section;
however, these costs have been
calculated for Sec. 3286.113
and are not repeated here.
Sec. 3286.607......... ................... .......... .......... .......... .......... .......... .......... Provides that the retailer is
responsible for the reporting
and recordkeeping requirements
under Sec. 3286.113. There are
costs associated with this
section; however, they have been
determined in Sec.
3286.113(e).
Sec. 3286.701......... ................... .......... .......... .......... .......... .......... .......... Provides the purpose of Subpart
H. The purpose of Subpart H is
to set out the mechanisms by
which manufacturers, retailers,
distributors, installers, and
installation inspectors will be
held accountable for assuring
the appropriate installation of
manufactured homes. There are no
costs associated with this
section.
Sec. 3286.703......... All................ 24,927 .......... .......... .......... .......... 450 Provides for penalties and
injunctive relief for failures
to comply, the presentation-of-
views, and the procedures for
investigations. These provisions
have an associated cost with the
presentation-of-views
requirement. It is estimated
that less that 10 requests for
presentation of views will be
requested that have not been
accounted for in the other
specific section. The cost would
not have an impact on the cost
of manufactured homes. The cost
to the inspector is estimated at
45 minutes at $60 per hour for
10 instances. (45/
60*$60)(10)=$450.
Sec. 3286.705......... ................... .......... .......... .......... .......... .......... .......... Provides for the discussion of
the dispute resolution program.
These provisions do not have an
associated cost.
Sec. 3286.801......... ................... .......... .......... .......... .......... .......... .......... Provides the purpose of Subpart
I. The purpose of Subpart I is
to establish the requirements
that must be met by a state to
implement and administer its own
installation program in such a
way that the state would not be
covered by the HUD-administered
installation program. There are
no costs associated with this
section.
Sec. 3286.803......... ................... .......... .......... .......... .......... .......... .......... Provides for the requirements for
a qualified State Installation
Program stating that a qualified
State installation program
supersedes the HUD-administered
installation program, a state
installation program must
include the minimum elements to
be approved, and the provisions
for conditional acceptance.
There are no costs associated
with this section.
[[Page 35291]]
Sec. 3286.805(a)...... State.............. 35 .......... .......... .......... 80.00 2,800 This section requires states
seeking identification as a
qualified installation program
to submit a completed State
Installation Program
Certification Form to the
Secretary for review and
acceptance. There will be a cost
to the state to complete this
certification. The estimated
cost will include the time of
one staff person for 2 hours at
$40 per hour. The cost would not
have an impact on the cost of
manufactured homes.
Sec. 3286.805(b)...... ................... .......... .......... .......... .......... .......... .......... HUD will review the state plan
and contact the state regarding
the application. There is no
cost associated with this
provision.
Sec. 3286.805(c)...... State.............. 35 .......... .......... .......... 2.29 80 Provides for the presentation of
views by the states if rejecting
the certification. It is
estimated that less than 1% of
states applying to administer
their own installation program
will request a presentation of
views. The cost to the state is
estimated at 120 minutes at $40
per hour for 1 state
application. (120/
60*$40)(1)=$80. The cost would
not have an impact on the cost
of manufactured homes.
Sec. 3286.807......... State.............. 35 .......... .......... .......... 40.00 1,400 This section requires that states
submit a new State Installation
Program Certification Form to
the Secretary for review every 3
years to maintain its status as
having a qualified installation
program. There will be a cost to
the state to complete this
certification. The estimated
cost will include the time of
one staff person for one hour at
$40 per hour. The cost would not
have an impact on the cost of
manufactured homes.
Sec. 3286.809......... State.............. 35 .......... .......... .......... 2.29 80 This section states that whenever
the Secretary finds that a state
installation program fails to
comply substantially with any
provision of the installation
program requirements or that the
state program has become
inadequate, the Secretary will
notify the state of withdrawal
of acceptance or conditional
acceptance of the state
installation program. There will
be a cost to the state to
complete this request. The
estimated cost will include the
time of one staff person for 1
hour at $40 per hour for an
estimated 2 states.
(1*40*2)=$80. The cost would not
have an impact on the cost of
manufactured homes.
Sec. 3286.811......... ................... .......... .......... .......... .......... .......... .......... Provides that a state with a
qualifying installation program
will operate in lieu of HUD with
respect to only the installation
program established under
Subparts B through H of this
part Sec. 3286. No state may
permit its installation program,
even if it is a qualified
installation program under this
part, to supersede the
requirements applicable to any
other aspect of HUD's
manufactured housing program.
There are no costs associated
with this section.
Sec. 3286.813......... ................... .......... .......... .......... .......... .......... .......... If a state installation program
is included in a state plan
approved in accordance with Sec.
3282.302 of this chapter, the
state installation program is
subject to all of the
requirements for such a state
plan, including annual review by
HUD. There are no costs
associated with this section.
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 35292]]
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number for Manufactured
Housing is 14.171.
List of Subjects in 24 CFR Part 3286
Administrative practice and procedure, Consumer protection,
Intergovernmental relations, Manufactured homes, Reporting and
recordkeeping requirements.
0
Accordingly, HUD adds a new part 3286 in chapter XX of Title 24 of the
Code of Federal Regulations to read as follows:
PART 3286--MANUFACTURED HOME INSTALLATION PROGRAM
Subpart A--Generally Applicable Provisions and Requirements
Sec.
3286.1 Purpose.
3286.2 Applicability.
3286.3 Definitions.
3286.5 Overview of installation program.
3286.7 Consumer information.
3286.9 Manufacturer shipment responsibilities.
3286.11 Temporary storage of units.
3286.13 Waiver of rights invalid.
3286.15 Consultation with the Manufactured Housing Consensus
Committee (MHCC).
Subpart B--Certification of Installation in HUD-Administered States
3286.101 Purpose.
3286.102 Information provided by manufacturer.
3286.103 DAPIA-approved installation instructions.
3286.105 Requirement for installer licensing.
3286.107 Installation in accordance with standards.
3286.109 Inspection requirements--generally.
3286.111 Installer certification of installation.
3286.113 Information provided by retailer.
3286.115 Date of installation.
3286.117 Completion of sale date.
Subpart C--Installer Licensing in HUD-Administered States
3286.201 Purpose.
3286.203 Installation license required.
3286.205 Prerequisites for installation license.
3286.207 Process for obtaining installation license.
3286.209 Denial, suspension, or revocation of installation license.
3286.211 Expiration and renewal of installation licenses.
Subpart D--Training of Installers in HUD-Administered States
3286.301 Purpose.
3286.303 Responsibilities of qualified trainers.
3286.305 Installation trainer criteria.
3286.307 Process for obtaining trainer's qualification.
3286.308 Training curriculum.
3286.309 Continuing education--trainers and curriculum.
3286.311 Suspension or revocation of trainer's qualification.
3286.313 Expiration and renewal of trainer qualification.
Subpart E--Installer Responsibilities of Installation in HUD-
Administered States
3286.401 Purpose.
3286.403 Licensing requirements.
3286.405 Installation suitability.
3286.407 Supervising work of crew.
3286.409 Obtaining inspection.
3286.411 Certifying installation.
3286.413 Recordkeeping.
Subpart F--Inspection of Installations in HUD-Administered States
3286.501 Purpose.
3286.503 Inspection required.
3286.505 Minimum elements to be inspected.
3286.507 Verifying installation.
3286.509 Reinspection upon failure to pass.
3286.511 Inspector qualifications.
Subpart G--Retailer Responsibilities in HUD-Administered States
3286.601 Purpose.
3286.603 At or before sale.
3286.605 After sale.
3286.607 Recordkeeping.
Subpart H--Oversight and Enforcement in HUD-Administered States
3286.701 Purpose.
3286.703 Failure to comply.
3286.705 Applicability of dispute resolution program.
Subpart I--State Programs
3286.801 Purpose.
3286.803 State qualifying installation programs.
3286.805 Procedures for identification as qualified installation
program.
3286.807 Recertification required.
3286.809 Withdrawal of qualifying installation program status.
3286.811 Effect on other manufactured housing program requirements.
3286.813 Inclusion in state plan.
Authority: 42 U.S.C. 3535(d), 5404, and 5424.
Subpart A--Generally Applicable Provisions and Requirements
Sec. 3286.1 Purpose.
(a) Purpose. The purpose of this part is to establish the
regulations that are applicable to HUD's administration of an
installation program that meets the requirements of sections 602 (42
U.S.C. 5401) and 605 (42 U.S.C. 5404) of the National Manufactured
Housing Construction and Safety Standards Act of 1974. The purpose of
this subpart A is to establish the regulations that are applicable with
respect to all manufactured homes before they are sold to a purchaser.
The requirements in subpart A apply regardless of whether the actual
installation of a manufactured home is regulated by HUD or a state with
a qualifying installation program.
(b) Implementation. This part is effective on October 20, 2008.
Implementation will be undertaken in accordance with the phased-in
schedule provided by notice published in the Federal Register.
Sec. 3286.2 Applicability.
(a) All states. The requirements in subpart A are applicable in all
states.
(b) States without installation programs. The requirements in
subparts B through H of this part are applicable only in those states
where HUD is administering an installation program in accordance with
this part.
(c) States with installation programs. The requirements in subpart
I of this part are applicable to only those states that want to
administer their own installation programs in lieu of the installation
program administered by HUD in accordance with this part.
(d) Exclusion. None of the requirements of this part apply to:
(1) Any structure that a manufacturer certifies as being excluded
from the coverage of the Act in accordance with Sec. 3282.12 of this
chapter; or
(2) Temporary housing units provided under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.)
to victims of Presidentially declared disasters, when the manufactured
home is installed by persons holding an emergency contractor license
issued by the state in which the home is sited or installed by the
Federal Emergency Management Agency; or
(3) Any manufactured home after the initial installation of the
home following the first purchase of the home in good faith for
purposes other than resale. State installation programs may regulate
subsequent installations of manufactured homes.
(4) Any manufactured home installed on Indian reservations.
Sec. 3286.3 Definitions.
The following definitions apply in this part, except as otherwise
noted in the regulations in this part:
Act means the National Manufactured Housing Construction and Safety
Standards Act of 1974, 42 U.S.C. 5401-5425.
Certification of installation means the certification, provided by
an installer under the HUD-administered installation program in
accordance with Sec. 3286.111, that indicates that the manufactured
home has been installed in compliance with the appropriate design and
instructions and has been inspected as required by this part.
[[Page 35293]]
Defect means any defect in the performance, construction,
components, or material of a manufactured home that renders the home or
any part thereof not fit for the ordinary use for which it was
intended.
Design Approval Primary Inspection Agency (DAPIA) means a state
agency or private organization that has been accepted by the Secretary,
in accordance with the requirement of subpart H of part 3282, to
evaluate and either approve or disapprove manufactured home designs and
quality control procedures.
Distributor means any person engaged in the sale and distribution
of manufactured homes for resale.
HUD means the United States Department of Housing and Urban
Development.
HUD-administered installation program means the installation
program to be administered by HUD, in accordance with this part, in
those states that do not have a qualifying installation program.
Installation means completion of work done specified in Sec.
3286.505 to stabilize, support, anchor, and close up a manufactured
home and to join sections of a multi-section manufactured home, when
any such work is governed by the federal installation standards in part
3285 of this chapter or by state installation standards that are
certified as part of a qualifying installation program.
Installation defect means any defect in the performance,
installation, installation components, installation material, or close-
up of a manufactured home that renders the home or any part thereof not
fit for the ordinary use for which it was intended or otherwise takes
the home out of compliance with the Manufactured Home Construction and
Safety Standards in 24 CFR part 3280.
Installation design means drawings, specifications, sketches, and
the related engineering calculations, tests, and data in support of the
installation configurations and systems to be incorporated in the
installation of manufactured homes.
Installation instructions means DAPIA-approved instructions
provided by the home manufacturer that accompany each new manufactured
home and detail the home manufacturer requirements for support and
anchoring systems and other work completed at the installation site to
comply with the Model Manufactured Home Installation Standards in 24
CFR part 3285 and the Manufactured Home Construction and Safety
Standards in 24 CFR part 3280.
Installation standards means the standards established by HUD in 24
CFR part 3285, or any set of state standards that the Secretary has
determined provide protection to the residents of manufactured homes
that equals or exceeds the protection provided by the standards in 24
CFR part 3285.
Installer means the person or entity who is retained to engage in,
or who engages in, the business of directing, supervising, controlling,
or correcting the initial installation of a manufactured home, as
governed by part 3285 of this chapter.
Installer's license or installation license means the evidence that
an installer has met the requirements for installing manufactured homes
under the HUD-administered installation program. The term does not
incorporate a state-issued installation license or certification,
except to the extent provided in this part. The term does not imply
that HUD approves or recommends an installer or warrants the work of an
installer, and should not be used in any way that indicates HUD
approval in violation of 18 U.S.C. 709.
Lessee means the first person who leases a manufactured home from a
retailer after the initial installation.
Manufactured home means a structure, transportable in one or more
sections, which, in the traveling mode, is 8 body feet or more in width
or 40 body feet or more in length, or, when erected on-site, is 320 or
more square feet, and which is built on a permanent chassis and
designed to be used as a dwelling with or without a permanent
foundation when connected to the required utilities, and includes the
plumbing, heating, air-conditioning, and electrical systems contained
therein. The term also includes any structure that meets all the
requirements of this paragraph except the size requirements and with
respect to which the manufacturer voluntarily files a certification
pursuant to Sec. 3282.13 of this chapter and complies with the
installation standards established under part 3285 and the construction
and safety standards in part 3280 of this chapter, but such term does
not include any self-propelled recreational vehicle. Calculations used
to determine the number of square feet in a structure will include the
total of square feet for each transportable section comprising the
completed structure and will be based on the structure's exterior
dimensions measured at the largest horizontal projections when erected
on-site. These dimensions will include all expandable rooms, cabinets,
and other projections containing interior space, but do not include bay
windows. Nothing in this definition should be interpreted to mean that
a manufactured home necessarily meets the requirements of HUD's Minimum
Property Standards (HUD Handbook 4900.1) or that it is automatically
eligible for financing under 12 U.S.C. 1709(b).
Manufactured Housing Consensus Committee, or MHCC, means the
consensus committee established pursuant to section 604(a)(3) of the
Act, 42 U.S.C. 5403(a)(3).
Manufacturer means any person engaged in manufacturing or
assembling manufactured homes, including any person engaged in
importing manufactured homes for resale.
Manufacturer's certification label means the permanent label that
is required by Sec. 3280.11 of this chapter to be affixed to each
transportable section of each manufactured home.
Person includes, unless the context indicates otherwise,
corporations, companies, associations, firms, partnerships, societies,
and joint stock companies, as well as individuals, but does not include
any agency of government or tribal government entity.
Professional engineer or registered architect means an individual
or entity: licensed to practice engineering or architecture in a state;
and subject to all laws and limitations imposed by the state agency
that regulates the applicable profession, and who is engaged in the
professional practice of rendering service or creative work requiring
education, training, and experience in architecture or engineering
sciences and the application of special knowledge of the mathematical,
physical, and engineering sciences in such professional or creative
work as consultation, investigation, evaluation, planning or design,
and supervision of construction for the purpose of securing compliance
with specifications and design for any such work.
Purchaser means the first person purchasing a manufactured home in
good faith for purposes other than resale.
Qualified trainer means a person who has met the requirements
established in subpart D of this part to be recognized as qualified to
provide training to installers for purposes of the HUD-administered
installation program.
Qualifying installation program means an installation program that
a state certifies, in accordance with the requirements set out in
subpart I of this part, as meeting the requirements of 42 U.S.C.
5404(c)(3).
Resident means any person residing in the manufactured home.
[[Page 35294]]
Retailer means any person engaged in the sale, leasing, or
distribution of new manufactured homes primarily to persons who in good
faith purchase or lease a manufactured home for purposes other than
resale, and, for purposes of this part, the term includes any
manufacturer or distributor that sells a manufactured home directly to
a purchaser.
Secretary means the Secretary of Housing and Urban Development.
Set up means any assembly or installation of a manufactured home
on-site that includes aspects of work that are governed by parts 3280
or 3285 of this chapter.
State includes each of the 50 states, the District of Columbia, the
Commonwealth of Puerto Rico, Guam, the Virgin Islands, and American
Samoa.
Sec. 3286.5 Overview of installation program.
(a) HUD-administered installation program. HUD will administer the
installation program, as established and set out in subparts A through
H of this part, in a state unless that state administers its own
qualifying installation program. The states in which HUD administers an
installation program can be identified under this part by referring to
a list on a Web site maintained by HUD or by calling HUD. For
convenience only, the current URL of the Web site is http://
www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm and the current toll-free
telephone number to contact the HUD Office of Manufactured Housing
Programs is 1-800-927-2891, extension 57.
(b) State-administered installation programs. States that have
qualifying installation programs, as established through the procedures
set out in subpart I of this part, will administer their own programs,
except for generally applicable requirements in this subpart A.
(c) Manufacturer and retailer requirements. (1) Manufacturers and
retailers are responsible for compliance of the home with the
construction and safety standards in part 3280 of this chapter, in
accordance with the Act and applicable regulations. Manufacturers and
retailers must also comply with applicable requirements in this part
relating to the installation of the manufactured home.
(2) In the installation instructions required pursuant to part 3285
of this chapter, the manufacturer must include instructions for
supporting the manufactured home or sections of homes temporarily and
protecting the interior of the manufactured home or sections of homes
from damage, pending the first siting of the home for occupancy. The
instructions must be adequate to assure that the temporary supports and
weatherization used will be sufficient to prevent the home and its
transportable sections from being brought out of conformance with the
construction and safety standards in part 3280 of this chapter if the
home or its sections is either:
(i) Stored at any location for more than 30 days; or
(ii) In the possession of any entity for more than 30 days.
(d) HUD oversight. The Secretary may take such actions as are
authorized by the Act to oversee the system established by the
regulations in this part, as the Secretary deems appropriate.
Sec. 3286.7 Consumer information.
(a) Manufacturer's consumer manual. In each consumer manual
provided by a manufacturer as required in Sec. 3282.207 of this
chapter, the manufacturer must include a recommendation that any home
that has been reinstalled after its original installation should be
inspected after it is set up, in order to assure that it has not been
damaged and is properly installed.
(b) Retailer disclosures before sale or lease. Prior to execution
of the sales contract to purchase or agreement to lease a manufactured
home, the retailer must provide the purchaser or lessee with a consumer
disclosure. This disclosure must be in a document separate from the
sales or lease agreement. The disclosure must include the following
information, as applicable:
(1) When the installation of the home is in a state that
administers its own qualifying installation program, the consumer
disclosure must clearly state that the home will be required to comply
with all state requirements for the installation of the home;
(2) When the installation of the home is in a state that does not
administer its own qualifying installation program, the consumer
disclosure must clearly state that the home will be required to comply
with federal requirements, including installation in accordance with
federal installation standards set forth in 24 CFR part 3285 and
certification by a licensed installer of installation work, regardless
of whether the work is performed by the homeowner or anyone else, and
when certification includes inspection by an appropriate person;
(3) For all homes, the home may also be required to comply with
additional state and local requirements for its installation;
(4) For all homes, additional information about the requirements
disclosed under paragraphs (b)(1) through (b)(4) of this section is
available from the retailer and, in the case of the federal
requirements, is available in part 3286 of Title 24 of the Code of
Federal Regulations and from the U.S. Department of Housing and Urban
Development;
(5) For all homes, compliance with any additional federal, state,
and local requirements, including a requirement for inspection of the
installation of the home, may involve additional costs to the purchaser
or lessee; and
(6) For all homes, a recommendation that any home that has been
reinstalled after its original installation should be professionally
inspected after it is set up, in order to assure that it has not been
damaged in transit and is properly installed.
Sec. 3286.9 Manufacturer shipment responsibilities.
(a) Providing information to HUD. At or before the time that each
manufactured home is shipped by a manufacturer, the manufacturer must
provide HUD, through the Production Inspection Primary Inspection
Agency (IPIA), in accordance with Sec. 3282.552 of this chapter, with
information, as applicable, about:
(1) The serial number and manufacturer's certification label number
of the home;
(2) The manufacturer of the home; and
(3) The name and address of the retailer or distributor that has
arranged for the home to be shipped.
(b) Manufacturer's installation instructions. The manufacturer is
required to provide with each manufactured home, installation designs
and instructions for the installation of the manufactured home that
have been approved by a DAPIA. A DAPIA must give approval only if the
installation designs and instructions provide equal or greater
protection than the protection provided under the installation
standards.
Sec. 3286.11 Temporary storage of units.
Pursuant to Sec. 3286.5(c), the manufacturer is required to
provide instructions for the temporary support and protection of the
interior from damage of its manufactured homes or sections of homes.
Every manufacturer, distributor, retailer, or installer that has
possession of a home is required to support each transportable section
of a manufactured home that is temporarily located on a site used by
that manufacturer, distributor, retailer, or
[[Page 35295]]
installer in accordance with the manufacturer's instructions.
Sec. 3286.13 Waiver of rights invalid.
Any provision of a contract or agreement entered into by a
manufactured home purchaser that seeks to waive any recourse to either
the HUD installation program or a state-qualifying installation program
is void.
Sec. 3286.15 Consultation with the Manufactured Housing Consensus
Committee (MHCC).
The Secretary will seek input from the MHCC when revising the
installation program regulations in this part 3286. Before publication
of a proposed rule to revise these regulations, the Secretary will
provide the MHCC with a 120-day opportunity to comment on such
revision. The MHCC may send to the Secretary any of the MHCC's own
recommendations to adopt new installation program regulations or to
modify or repeal any of the regulations in this part. Along with each
recommendation, the MHCC must set forth pertinent data and arguments in
support of the action sought. The Secretary will either: Accept or
modify the recommendation and publish it for public comment in
accordance with section 553 of the Administrative Procedure Act (5
U.S.C. 553), along with an explanation of the reasons for any such
modification; or reject the recommendation entirely, and provide to the
MHCC a written explanation of the reasons for the rejection. This
section does not supersede section 605 of the National Manufactured
Housing Construction and Safety Standards Act.
Subpart B--Certification of Installation in HUD-Administered States
Sec. 3286.101 Purpose.
The purpose of this subpart B is to establish the systems for
tracking and certifying a manufactured home installation that is to be
completed in accordance with the HUD-administered installation program.
Sec. 3286.102 Information provided by manufacturer.
(a) Shipment of home to retailer or distributor. At the time the
manufactured home is shipped to a retailer or distributor, the
manufacturer must provide notice to the retailer or distributor that
tracking information for the home is being provided to HUD, and the
information must be updated by the retailer or distributor in
accordance with the requirements in Sec. 3286.113. Such notice must
include all of the information required in Sec. 3286.9(a). The
manufacturer is also encouraged to provide notice to the retailer that
reminds the retailer of its other responsibilities under this part.
(b) Manufacturer's installation instructions. The manufacturer is
required to include in its installation instructions for the home a
notice that the home is required to be installed in accordance with:
(1) An installation design and instructions that have been provided
by the manufacturer and approved by the Secretary directly or through
review by the DAPIA; or
(2) An installation design and instructions that have been prepared
and certified by a professional engineer or registered architect, that
have been approved by the manufacturer and the DAPIA as providing a
level of protection for residents of the home that equals or exceeds
the protection provided by the federal installation standards in part
3285 of this chapter.
Sec. 3286.103 DAPIA-approved installation instructions.
(a) Providing instructions to purchaser or lessee. (1) For each
manufactured home sold or leased to a purchaser or lessee, the retailer
must provide the purchaser or lessee with a copy of the manufacturer's
DAPIA-approved installation instructions for the home.
(2) If the installation requires a design that is different from
that provided by the manufacturer in paragraph (a)(1) of this section,
the installation design and instructions must be prepared and certified
by a professional engineer or registered architect, that have been
approved by the manufacturer and the DAPIA as providing a level of
protection for residents of the home that equals or exceeds the
protection provided by the federal installation standards in part 3285
of this chapter.
(b) Providing instructions to installer. When the retailer or
manufacturer agrees to provide any set up in connection with the sale
of the home, the retailer or manufacturer must provide a copy of the
approved installation instructions required in paragraph (a)(1) of this
section or, as applicable, installation design and instructions
required in paragraph (a)(2) of this section to each company or, in the
case of sole proprietor, to each individual who performs set up or
installation work on the home.
Sec. 3286.105 Requirement for installer licensing.
(a) Installer Licensing. The installer that installs a manufactured
home in a state that does not have a qualifying installation program
must be certified or licensed in accordance with the requirements in
subpart C of this part.
(b) Use of licensed installer. When the retailer or manufacturer
agrees to provide any set up in connection with the sale or lease of
the home, the retailer or manufacturer must ensure that the installer
is licensed in accordance with these regulations.
Sec. 3286.107 Installation in accordance with standards.
(a) Compliance with installation requirements. (1) For purposes of
determining installer compliance, a manufactured home that is subject
to the requirements of this subpart B must be installed in accordance
with:
(i) An installation design and instructions that have been provided
by the manufacturer and approved by the Secretary directly or through
review by the DAPIA; or
(ii) An installation design and instructions that have been
prepared and certified by a professional engineer or registered
architect, that have been approved by the manufacturer and the DAPIA as
providing a level of protection for residents of the home that equals
or exceeds the protection provided by the federal installation
standards in part 3285 of this chapter.
(2) If the installation instructions do not comply with the
installation standards, the manufacturer is responsible for any aspect
of installation that is completed in accordance with the installation
instructions and that does not comply with the installation standards.
(3) All installation work must be in conformance with accepted
practices to ensure durable, livable, and safe housing, and must
demonstrate acceptable workmanship reflecting, at a minimum, journeyman
quality of work of the various trades.
(4) Except as set out in paragraph (a)(2) of this section, all
installation defects due to the work of the installer are the
responsibility of the installer or retailer or manufacturer that
retained the installer and must be corrected.
(5) If the manufacturer or retailer retains the installer, they are
jointly and severally responsible with the installer for correcting
installation defects.
(6) Installation defects must be corrected within 60 days after the
date of discovery of the installation defect.
(b) Secretarial approval of manufacturer's designs. A manufacturer
that seeks a Secretarial determination under paragraph (a) of this
section that its installation designs and instructions provide
protection to residents of manufactured homes that equals or exceeds
the protection provided by the
[[Page 35296]]
HUD federal installation standards in part 3285 of this chapter must
send the request for such determination and a copy of the applicable
designs and instructions to: Administrator, Office of Manufactured
Housing Programs, HUD, 451 Seventh Street, SW., Room 9164, Washington,
DC 20410-8000, or to a fax number or e-mail address obtained by calling
the Office of Manufactured Housing Programs at the toll-free telephone
number 1-800-927-2891, extension 57.
(c) Compliance with construction and safety standards. The
installer must not take the home out of compliance with the
construction and safety standards applicable under part 3280 of this
chapter.
(d) Homeowner installations. The purchaser of a home sited in a
state in which HUD administers the installation program may perform
installation work on the home that is in accordance with paragraph (a)
of this section, provided that the work is certified in accordance with
Sec. 3286.111.
(e) Compliance with construction and safety standards. This rule
does not alter or affect the requirements of the Act concerning
compliance with the construction and safety standards, and the
implementing regulations in parts 3280 and 3282 of this chapter, which
apply regardless of where the work is completed.
Sec. 3286.109 Inspection requirements--generally.
The installer or the retailer must arrange for the inspection of
the installation work on any manufactured home that is sited in a state
without a qualifying installation program. Before the home can be
occupied, the installer must certify, and the inspector must verify,
the home as having been installed in conformance with the requirements
of Sec. 3286.107(a). The requirements for installer certification are
set out in subpart E of this part.
Sec. 3286.111 Installer certification of installation.
(a) Certification required. When the installation work is complete,
a licensed installer must visit the jobsite and certify that:
(1) The manufactured home has been installed in accordance with:
(i) An installation design and instructions that have been provided
by the manufacturer and approved by the Secretary directly or through
review by the DAPIA; or
(ii) An installation design and instructions that have been
prepared and certified by a professional engineer or registered
architect, that have been approved by the manufacturer and the DAPIA as
providing a level of protection for residents of the home that equals
or exceeds the protection provided by the federal installation
standards in part 3285 of this chapter.
(2) The installation of the home has been inspected as required by
Sec. 3286.503 and an inspector has verified the installation as
meeting the requirements of this part.
(3) All installation defects brought to the installer's attention
have been corrected.
(b) Recipients of certification. The installer must provide a
signed copy of its certification to the retailer that contracted with
the purchaser or lessee for the sale or lease of the home, and to the
purchaser or other person with whom the installer contracted for the
installation work.
Sec. 3286.113 Information provided by retailer.
(a) Tracking information. Within 30 days from the time a purchaser
or lessee enters into a contract to purchase or lease a manufactured
home, the retailer or distributor of the home must provide HUD with the
following information:
(1) The home's serial number and manufacturer's certification label
number;
(2) The name and address of the retailer or distributor that is
selling or leasing the home;
(3) The state and address where the home is to be sited, and, if
known, the name of the local jurisdiction; and
(4) The name of the purchaser or lessee.
(b) Installation information. Within 30 days from the date of
installation, the retailer or distributor of the home must provide HUD
with the following information:
(1) The name, address, telephone number, and license number of the
licensed installer;
(2) The date of installer certification of completion of the
installation;
(3) The date a qualified inspector verified the installation as
being in compliance with the requirements of this part; and
(4) The name, address, and telephone number of the qualified
inspector who performed the inspection of the installation as required
by Sec. 3286.109.
(c) Method of providing information. (1) The retailer or
distributor must provide a copy of the information set forth in
paragraphs (a) and (b) of this section to HUD by providing a copy of
the information to HUD by facsimile, e-mail, or first-class or
overnight delivery.
(2) The information must be sent to: Administrator, Office of
Manufactured Housing Programs, HUD, 451 Seventh Street, SW., Room 9164,
Washington, DC 20410-8000, or to a fax number or e-mail address
obtained by calling the Office of Manufactured Housing Programs. For
convenience only, the URL of the Web site is http://www.hud.gov/
offices/hsg/sfh/mhs/mhshome.cfm and the toll-free telephone number to
contact the Office of Manufactured Housing Programs is 1-800-927-2891,
extension 57.
(d) Correcting information. If the information provided by the
retailer changes after it has been provided to HUD, the retailer must
correct the information within 10 business days after the retailer
learns of the change.
(e) Record retention requirements. The retailer or distributor must
maintain a copy of the records required in paragraphs (a) and (b) of
this section for 3 years from the date of installation, as under Sec.
3286.115.
Sec. 3286.115 Date of installation.
The date of installation will be the date the installer has
certified that all required inspections have been completed, all
utilities are connected, and the manufactured home is ready for
occupancy as established, if applicable, by a certificate of occupancy,
except as follows: If the manufactured home has not been sold to the
first person purchasing the home in good faith for purposes other than
resale by the date the home is ready for occupancy, the date of
installation is the date of the purchase agreement or sales contract
for the manufactured home.
Sec. 3286.117 Completion of sale date.
(a) Date of sale defined. For purposes of determining the
responsibilities of a manufacturer, retailer, or distributor under
subpart I of part 3282 of this chapter, the sale of a manufactured home
will not be considered complete until all the goods and services that
the manufacturer, retailer, or distributor agreed to provide at the
time the contract was entered into have been provided.
(b) Compliance with construction and safety standards. When a
retailer or manufacturer is providing the installation and an installer
installs a home in such a way as to create an imminent safety hazard or
cause the home to not comply with the construction and safety standards
in part 3280 of this chapter, and those issues are discovered during
the installation of the home, the sale or lease of the home is not
complete until the home is corrected.
[[Page 35297]]
Subpart C--Installer Licensing in HUD-Administered States
Sec. 3286.201 Purpose.
The purpose of this subpart C is to establish the requirements for
a person to qualify to install a manufactured home in accordance with
the HUD-administered installation program. Installers will be required
to meet licensing, training, and insurance requirements established in
this part. Licensed installers will self-certify their installations of
manufactured homes to be in compliance with the Model Manufactured Home
Installation Standards in part 3285 of this chapter. In order for such
an installer to self-certify compliance with the installation
standards, the installer will have to assure that acceptable
inspections, as required in subpart F of this part, are performed.
Sec. 3286.203 Installation license required.
(a) Installation license required. (1) Any individual or entity
that engages in the business of directing, supervising, or controlling
initial installations of new manufactured homes in a state without a
qualifying installation program must itself have, or must employ
someone who has, a valid manufactured home installation license issued
in accordance with the requirements of this subpart C. For each
installation covered under these requirements, the licensed installer,
and any company that employs the licensed installer, will be
responsible for the proper and competent performance of all employees
working under the licensed installer's supervision and for assuring
that the installation work complies with this part.
(2) A business that employs a licensed installer to represent the
business and hold the installer's license retains primary
responsibility for performance of the installation work in compliance
with the requirements of this part.
(3) A license is not required for individuals working as direct
employees of a licensed installer or for the company that employs a
licensed installer, provided that those individuals are supervised by a
licensed installer.
(4) The installer must display an original or a copy of a valid
installation license at the site of the installation while performing
work related to the installation of the home.
(5) The installer is responsible for understanding and following,
as applicable, the approved manufacturer installation instructions and
any alternative installation design and instructions that have been
certified by a professional engineer or registered architect, that have
been approved by the manufacturer and DAPIA as providing a level of
protection for residents of the home that equals or exceeds the
protection provided by the federal installation standards in part 3285
of this chapter.
(b) Installation license not required. An installation license is
not required for:
(1) Site preparation that is not subject to the requirements of
part 3285 of this chapter;
(2) Connection of utilities to the manufactured home;
(3) Add-ons subject to the requirements of Sec. 3282.8(j) of this
chapter;
(4) Temporary installations on dealer, distributor, manufacturer,
or other sales or storage lots, when the manufactured home is not
serving as an occupied residence;
(5) Home maintenance, repairs, or corrections, or other
noninstallation-related work performed by the home manufacturer under
warranty or other obligations or service agreements;
(6) Installations performed by authorized representatives of the
Federal Emergency Management Agency in order to provide emergency
housing after a natural disaster; or
(7) Work performed at the home site that is not covered by the
federal installation standards in part 3285 of this chapter or the
requirements of this part.
Sec. 3286.205 Prerequisites for installation license.
(a) Required experience. (1) In order to obtain an installation
license to perform manufactured home installations under the HUD-
administered installation program, an individual must meet at least one
of the following minimum experience requirements:
(i) 1,800 hours of experience installing manufactured homes;
(ii) 3,600 hours of experience in the construction of manufactured
homes;
(iii) 3,600 hours of experience as a building construction
supervisor;
(iv) 1,800 hours as an active manufactured home installation
inspector;
(v) Completion of one year of a college program in a construction-
related field; or
(vi) Any combination of experience or education from paragraphs
(a)(1)(i) through (a)(1)(v) of this section that totals 3,600 hours.
(2) An installer who is certified or licensed to perform
manufactured home installations in a state with a qualifying
installation program may be exempted by the Secretary from complying
with these experience requirements, if the Secretary determines that
the state requirements are substantially equal to the HUD experience
requirements.
(b) Required training--(1) Initial applicant. An applicant for an
installation license must complete 12 hours of training, at least 4
hours of which must consist of training on the federal installation
standards in part 3285 of this chapter and the installation program
regulations in this part. An installer who is licensed to perform
installations in a state with a qualified installation program may
postpone the training requirements of this section until October 20,
2009.
(2) Renewal applicant. In order to qualify for renewal of an
installation license, the licensed installer must complete 8 hours of
continuing education during the 3-year license period, including in any
particular subject area that may be required by HUD to be covered in
order to assure adequate understanding of installation requirements.
(3) The training required under this paragraph (b) must be
conducted by trainers who meet the requirements of subpart D of this
part and must meet the curriculum requirements established in Sec.
3286.308 or Sec. 3286.309, as applicable.
(c) Testing. An applicant for an installation license must have
successfully received a passing grade of 70 percent on a HUD-
administered or HUD-approved examination covering the Manufactured Home
Installation Program and the federal installation standards in part
3285.
(d) Surety bond or insurance. An applicant for an installation
license must provide evidence of and must maintain, when available in
the state of installation, a surety bond or insurance that will cover
the cost of repairing all damage to the home and its supports caused by
the installer during the installation up to and including replacement
of the home. HUD may require the licensed installer to provide proof of
the surety bond or insurance at any time. The licensed installer must
notify HUD of any changes or cancellations with the surety bond or
insurance coverage.
Sec. 3286.207 Process for obtaining installation license.
(a) Where to apply. An applicant for an initial or renewed
installation license must provide the applicant's legal name, address,
and telephone number to HUD. The application, with all required
information, must be sent to: Administrator, Office of Manufactured
[[Page 35298]]
Housing Programs, HUD, 451 Seventh Street, SW., Room 9164, Washington,
DC 20410-8000, or to a fax number or e-mail address obtained by calling
the Office of Manufactured Housing Programs. For convenience only, the
current URL of the Web site is http://www.hud.gov/offices/hsg/sfh/mhs/
mhshome.cfm, and the current toll-free telephone number to contact the
Office of Manufactured Housing Programs is 1-800-927-2891, extension
57.
(b) Proof of experience. Every applicant for an initial
installation license must submit verification of the experience
required in Sec. 3286.205(a). This verification may be in the form of
statements by past or present employers or a self-certification that
the applicant meets those experience requirements, but HUD may contact
the applicant for additional verification at any time. The applicant
must also provide to HUD employment information relevant to the
applicant's experience as an installer, including the dates and type of
such employment. An installer who is certified or licensed to perform
manufactured home installations in a state with a qualifying
installation program may seek an exemption from the experience
requirement by submitting proof of such certification or license.
(c) Proof of training. Every applicant for an initial installation
license, or the renewal of an installation license, must submit
verification of successful completion of the training required in Sec.
3286.205(b). This verification must be in the form of a certificate of
completion from a qualified trainer that the applicant has completed
the requisite number of hours of a qualifying curriculum, as set out in
Sec. 3286.308 or Sec. 3286.309.
(d) Proof of surety bond or insurance. Every applicant for an
installation license must submit the name of the applicant's surety
bond or insurance carrier and the number of the policy required in
Sec. 3286.205(d).
(e) Other application submissions. (1) Every applicant for an
installation license must submit a list of all states in which the
applicant holds a similar installation certification or license, and a
list of all states in which the applicant has had such a certification
or license revoked, suspended, or denied.
(2) When the examination is not administered by HUD, every
applicant for an initial installation license must submit certification
of a passing grade on the examination required by Sec. 3286.205(c).
(f) Issuance or denial of an installation license. (1) When HUD
confirms that an applicant has met the requirements in this subpart C,
HUD will either:
(i) Provide an installation license to the applicant that, as long
as the installation license remains in effect, establishes the
applicant's qualification to install manufactured homes in a state
subject to the HUD-administered installation program; or
(ii) Provide a written explanation of why HUD deems the applicant
to not qualify for an installation license, including on grounds
applicable under Sec. 3286.209 for suspension or revocation of an
installation license and any other specified evidence of inability to
adequately meet the requirements of this part.
(2) An applicant who is denied an installation license under this
subpart C, other than for failure to pass the installation license
test, may request from HUD an opportunity for a presentation of views,
in accordance with subpart D of part 3282 of this chapter, for the
purpose of establishing the applicant's qualifications to obtain an
installation license.
(g) Assignment of license prohibited. An installation license
issued under this part may not be transferred, assigned, or pledged to
another entity or individual.
Sec. 3286.209 Denial, suspension, or revocation of installation
license.
(a) Oversight. The Secretary may make a continuing evaluation of
the manner in which each licensed installer is carrying out his or her
responsibilities under this subpart C.
(b) Denial, suspension, or revocation. After notice and an
opportunity for a presentation of views in accordance with subpart D of
part 3282 of this chapter, the Secretary may deny, suspend, or revoke
an installation license under this part. An installation license may be
denied, suspended, or revoked for, among other things:
(1) Providing false records or information to any party;
(2) Refusing to submit information that the Secretary requires to
be submitted;
(3) Failure to comply with applicable requirements of parts 3285,
3286, or 3288 of this chapter;
(4) Failure to take appropriate actions upon a failed inspection,
as provided in Sec. 3286.509;
(5) Fraudulently obtaining or attempting to obtain an installation
license, or fraudulently or deceptively using an installation license;
(6) Using or attempting to use an expired, suspended, or revoked
installation license;
(7) Violating state or federal laws that relate to the fitness and
qualification or ability of the applicant to install homes; or
(8) Engaging in poor conduct or workmanship as evidenced by one or
more of the following:
(i) Installing one or more homes that fail to meet the requirements
of Sec. 3286.107;
(ii) An unsatisfied judgment in favor of a consumer;
(iii) Repeatedly engaging in fraud, deception, misrepresentation,
or knowing omissions of material facts relating to installation
contracts;
(iv) Having a similar state installation license or certification
denied, suspended, or revoked;
(v) Having the renewal of a similar state installation license or
certification denied for any cause other than failure to pay a renewal
fee; or
(vi) Failure to maintain the surety bond or insurance required by
Sec. 3286.205(d).
(c) Other criteria. In deciding whether to suspend or revoke an
installation license, the Secretary will consider the impact of the
suspension or revocation on other affected parties and will seek to
assure that the sales and siting of manufactured homes are not unduly
disrupted.
(d) Reinstating an installation license. An installer whose
installation license has been denied, suspended, or revoked may submit
a new application in accordance with this subpart C. Installers whose
installation licenses have been suspended may also reinstate their
installation licenses in any manner provided under the terms of their
suspensions.
Sec. 3286. 211 Expiration and renewal of installation licenses.
(a) Expiration. Each installation license issued or renewed under
this subpart C will expire 3 years after the date of its issuance or
renewal.
(b) Renewal. An application for the renewal of an installation
license must include the information required by, and must be submitted
to, HUD in accordance with Sec. 3286.207, and must be submitted at
least 60 days before the date the license expires. Any person applying
for a license renewal after the date the license expires must apply for
a new installation license following the requirements established under
this subpart C for application for an initial installation license.
Subpart D--Training of Installers in HUD-Administered States
Sec. 3286.301 Purpose.
The purpose of this subpart D is to establish the requirements for
a person
[[Page 35299]]
to qualify to provide the training required under subpart C of this
part. This training is required for manufactured home installers who
want to be licensed in accordance with the HUD-administered
installation program.
Sec. 3286.303 Responsibilities of qualified trainers.
(a) Curriculum and hours. In providing training to installers for
the purpose of qualifying installers under the HUD-administered
installation program, qualified trainers must adequately address the
curriculum and instruction-time requirements established in subparts C
and D of this part.
(b) Attendance records. Qualified trainers must maintain records of
the times, locations, names of attendees at each session, and content
of all courses offered. When an attendee misses a significant portion
of any training session, the trainer must assure that the attendee
makes up the missed portion of the instruction.
(c) Certificates of completion of training. Qualified trainers must
provide certificates of completion to course attendees that indicate
the level of compliance with the applicable curriculum and time
requirements under subparts C and D of this part.
(d) Record retention. All records maintained by trainers and
continuing education providers must be retained for 3 years, and must
be made available to HUD upon request.
(e) Testing of installers. Qualified trainers may be authorized to
administer the installation license testing required for initial
licensing of installers, as set forth in Sec. 3286.205(c).
Sec. 3286.305 Installation trainer criteria.
(a) Trainer qualification required. (1) All classes that provide
manufactured home installation education classes used to satisfy the
requirements for the initial issuance and renewal of installation
licenses under subpart C of this part must be taught by trainers who
are registered with HUD as qualified trainers. In order to register
with HUD as a qualified trainer, a person must meet the experience
requirements of this section.
(2) Any entity other than a natural person may also provide initial
training and continuing education, as long as such entity establishes
its qualification as a trainer by providing evidence and assurance that
the entity's individual trainers meet the requirements of this section.
(b) Experience prerequisites. In order to qualify as a trainer, an
individual or other training entity must provide to HUD evidence that
each individual who will be responsible for providing training:
(1) Has a minimum of 3,600 hours of experience in one or more of
the following:
(i) As a supervisor of manufactured home installations;
(ii) As a supervisor in the building construction industry;
(iii) In design work related to the building construction industry;
or
(2) Has completed a 2-year educational program in a construction-
related field.
(c) Certification of curriculum. In order to register as a
qualified trainer, an individual or other training entity must submit
to HUD certification that training provided in accordance with this
subpart D will meet the curriculum requirements established in Sec.
3286.308 or Sec. 3286.309, as applicable.
Sec. 3286.307 Process for obtaining trainer's qualification.
(a) Where to apply. An applicant for qualification as a trainer
must provide the applicant's legal name, address, and telephone number
to HUD. The application, with all required information, must be sent
to: Administrator, Office of Manufactured Housing Programs, HUD, 451
Seventh Street, SW., Room 9164, Washington DC 20410-8000, or to a fax
number or e-mail address obtained by calling the Office of Manufactured
Housing Programs. For convenience only, the URL of the Web site is
http://www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm, and the toll-free
telephone number to contact the Office of Manufactured Housing Programs
is 1-800-927-2891, extension 57.
(b) Proof of experience. (1) Every individual applicant for initial
qualification as a trainer must submit verification of the experience
required in Sec. 3286.305. This verification may be in the form of
statements by past or present employers or a self-certification that
the applicant meets those experience requirements, but HUD may contact
the applicant for additional verification at any time. The applicant
must also provide to HUD employment information relevant to the
applicant's experience as a trainer, including the dates and type of
such employment. A trainer who is licensed, or otherwise certified, to
provide manufactured home installation training in a state with a
qualifying installation program may seek an exemption from the
experience requirement by submitting proof of such license or other
certification. An individual who applies for renewal qualification as a
trainer is not required to submit additional proof of experience.
(2) An entity that seeks to be designated as a qualified trainer
must provide evidence and assurance that the entity's individual
trainers meet the experience requirements in Sec. 3286.305.
(c) Other qualification information. (1) An applicant for initial
or renewal qualification as a trainer must submit to HUD a list of all
states in which the applicant has had a similar training qualification
revoked, suspended, or denied.
(2) An applicant also must submit to HUD a certification that
training provided in accordance with this subpart D will meet the
curriculum requirements established in Sec. 3286.308 or Sec.
3286.309, as applicable.
(d) Confirmation or denial of qualification. (1) When HUD confirms
that an applicant has met the experience and curriculum requirements in
this section, HUD will either:
(i) Provide to the applicant a written confirmation that the
applicant is a qualified trainer under this part, and will add the
applicant's name to a list maintained by HUD of qualified trainers; or
(ii) Provide a written explanation of why HUD deems the applicant
to not qualify as a trainer, including on grounds applicable under
Sec. 3286.311 for suspension or revocation of a qualification and any
other specified evidence of inability to meet the requirements of this
part.
(2) An applicant whose qualification is denied by HUD may request
an opportunity for a presentation of views, in accordance with subpart
D of part 3282 of this chapter, for the purpose of establishing the
applicant's qualifications to be a qualified trainer or the adequacy of
any training curriculum that is challenged by HUD.
(e) Assignment of qualification prohibited. A qualification issued
under this subpart D may not be transferred, assigned, or pledged to
another entity or individual.
Sec. 3286.308 Training curriculum.
(a) Curriculum for initial installer licensing. The training
provided by qualified trainers to installers to meet the initial
requirements of the HUD-administered installation program must include
at least 12 hours of training, at least 4 hours of which must consist
of training on the federal installation standards in part 3285 of this
chapter and the installation program regulations in this part. The
curriculum must include, at a minimum, training in the following areas:
[[Page 35300]]
(1) An overview of the Act and the general regulatory structure of
the HUD manufactured housing program;
(2) An overview of the manufactured home installation standards and
regulations established in parts 3285 and 3286 of this chapter, and
specific instruction including:
(i) Preinstallation considerations;
(ii) Site preparation;
(iii) Foundations;
(iv) Anchorage against wind;
(v) Optional features, including comfort cooling systems;
(vi) Ductwork and plumbing and fuel supply systems;
(vii) Electrical systems; and
(viii) Exterior and interior close-up work;
(3) An overview of the construction and safety standards and
regulations found in parts 3280 and 3282 of this chapter;
(4) Licensing requirements applicable to installers;
(5) Installer responsibilities for correction of improper
installation, including installer obligations under applicable state
and HUD manufactured housing dispute resolution programs;
(6) Inspection requirements and procedures;
(7) Problem-reporting mechanisms;
(8) Operational checks and adjustments; and
(9) Penalties for any person's failure to comply with the
requirements of this part 3286 and parts 3285 and 3288 of this chapter.
(b) Updating curriculum. Qualified trainers must revise and modify
course curriculum as needed to include, at a minimum, any relevant
modifications to the Act or the implementing standards and regulations
in this chapter, as well as to provide any training further mandated by
HUD.
Sec. 3286.309 Continuing education-trainers and curriculum.
(a) HUD-mandated elements. Only qualified trainers are permitted to
provide any training on particular subject areas that are required by
HUD to be an element of the continuing education requirement set out in
Sec. 3286.205(b)(2) for the renewal of an installer's license. In
implementing this requirement, HUD will:
(1) Establish the minimum number of hours and the required
curriculum for such subject areas, according to experience with the
program and changes in program requirements; and
(2) Provide information about the hours and curriculum directly to
qualified trainers and licensed installers, or through general
publication of the information.
(b) Other training. (1) The remainder of the 8 hours required to
meet the continuing education requirement may be met through training
provided either by qualified trainers or by any combination of the
following:
(i) Accredited educational institutions, including community
colleges and universities;
(ii) A provider of continuing education units who is certified by
the International Association for Continuing Education and Training;
(iii) Agencies at any level of government; and
(iv) State or national professional associations.
(2) The curriculum for the remainder of the 8 hours of continuing
education training must relate to any aspect of manufactured home
installation or construction, or to the general fields of building
construction or contracting.
Sec. 3286.311 Suspension or revocation of trainer's qualification.
(a) Oversight. The Secretary may make a continuing evaluation of
the manner in which each qualified trainer is carrying out the
trainer's responsibilities under this subpart D.
(b) Suspension or revocation of qualification. After notice and an
opportunity for a presentation of views in accordance with subpart D of
part 3282 of this chapter, the Secretary may suspend or revoke a
trainer's qualification under this part. A trainer's qualification may
be suspended or revoked for cause, which may include:
(1) Providing false records or information to HUD;
(2) Refusing to submit information required to be submitted by the
Secretary in accordance with the Act;
(3) Certifying, or improperly assisting certification of, a person
as having met the training requirements established in this part when
that person has not completed the required training;
(4) Failing to appropriately supervise installation training that
is used to meet the requirements of this part and that is provided by
other persons; and
(5) Any other failures to comply with the requirements of this
part.
(c) Other criteria. In deciding whether to suspend or revoke a
trainer's qualification, the Secretary will consider the impact of the
suspension or revocation on other affected parties and will seek to
assure that the sales and siting of manufactured homes are not unduly
disrupted.
(d) Reinstating qualification. A trainer whose qualification has
been suspended or revoked may submit a new application to be qualified
in accordance with this subpart D no sooner than 6 months after the
date of suspension or revocation. A trainer whose qualification has
been suspended may also reinstate the qualification in any manner
provided under the terms of the suspension.
Sec. 3286.313 Expiration and renewal of trainer qualification.
(a) Expiration. Each notice of qualification issued or renewed
under this subpart D will expire 5 years after the date of its issuance
or renewal.
(b) Renewal. An application for the renewal of a trainer
qualification must be submitted to HUD in accordance with Sec.
3286.307, and must be submitted at least 60 days before the date the
trainer's term of qualification expires. Any person applying for a
qualification renewal after the date the qualification expires must
apply for a new qualification, following the requirements established
under this subpart D for application for initial qualification as an
installation trainer.
Subpart E--Installer Responsibilities of Installation in HUD-
Administered States
Sec. 3286.401 Purpose.
The purpose of this subpart E is to set out the responsibilities of
the installer who is accountable for the installation of a manufactured
home in compliance with the requirements of the HUD-administered
installation program.
Sec. 3286.403 Licensing requirements.
An installer of manufactured homes must comply with the licensing
requirements set forth in subpart C of this part.
Sec. 3286.405 Installation suitability.
(a) Site appropriateness. Before installing a manufactured home at
any site, the installer must assure that the site is suitable for
installing the home by verifying that:
(1) The site is accessible;
(2) The site is appropriate for the foundation or support and
stabilization system that is to be used to install the home in
accordance with the federal installation standards or alternative
requirements in part 3285 of this chapter;
(3) The data plate required by Sec. 3280.5 of this chapter is
affixed to the home, that the home is designed for the roof load, wind
load, and thermal zones that are applicable to the intended site; and
(4) The installation site is protected from surface run-off and can
be graded in accordance with part 3285.
(b) Installer notification of unsuitable site. If the installer
determines that the
[[Page 35301]]
home cannot be installed properly at the site, the installer must:
(1) Notify the purchaser or other person with whom the installer
contracted for the installation work, identifying the reasons why the
site is unsuitable;
(2) Notify the retailer that contracted with the purchaser for the
sale of the home, identifying the reasons why the site is unsuitable;
(3) Notify HUD, identifying the reasons why the site is unsuitable;
(4) Decline to install the home until the site and the home are
both verified by the installer as suitable for the site under this
section; and
(5) Ensure that all unique characteristics of the site have been
fully addressed.
(c) Installer notification of failures to comply with the
construction and safety standards. If the installer notices and
recognizes failures to comply with the construction and safety
standards in part 3280 of this chapter prior to beginning any
installation work, during the course of the installation work, or after
the installation work is complete, the installer must notify the
manufacturer and retailer of each failure to comply.
(d) Retailer notification. The retailer must provide a copy of the
notification received in paragraphs (b) and (c) of this section to any
subsequent installer.
Sec. 3286.407 Supervising work of crew.
The installer will be responsible for the work performed by each
person engaged to perform installation tasks on a manufactured home, in
accordance with the HUD-administered installation program.
Sec. 3286.409 Obtaining inspection.
(a) Inspection obligations. Ten business days prior to the
completion of installation, the installer must arrange for a third-
party inspection of the work performed, in accordance with subpart F of
this part, unless the installer and retailer who contracted with the
purchaser for the sale of the home agree, in writing, that during the
same time period the retailer will arrange for the inspection. Such
inspection must be performed as soon as practicable by an inspector who
meets the qualifications set forth in Sec. 3286.511. The scope of the
inspections that are required to be performed is addressed in Sec.
3286.505.
(b) Contract rights not affected. Failure to arrange for an
inspection of a home within 5 business days will not affect the
validity or enforceability of any sale or contract for the sale of any
manufactured home.
(c) State or local permits. The licensed installer should obtain
all necessary permits required under state or local laws.
Sec. 3286.411 Certifying installation.
(a) Certification required. When the installation work is complete,
a licensed installer must visit the jobsite and certify that:
(1) The manufactured home has been installed in accordance with:
(i) An installation design and instructions that have been provided
by the manufacturer and approved by the Secretary directly or through
review by the DAPIA; or
(ii) An installation design and instructions that have been
prepared and certified by a professional engineer or registered
architect, that have been approved by the manufacturer and the DAPIA as
providing a level of protection for residents of the home that equals
or exceeds the protection provided by the federal installation
standards in part 3285 of this chapter.
(2) The installation of the home has been inspected as required by
Sec. 3286.503, and an inspector has verified the installation as
meeting the requirements of this part.
(3) All installation defects brought to the installer's attention
have been corrected.
(b) Recipients of certification. The installer must provide a
signed copy of its certification to the retailer that contracted with
the purchaser or lessee for the sale or lease of the home, and to the
purchaser or other person with whom the installer contracted for the
installation work.
Sec. 3286.413 Recordkeeping.
(a) Records to be retained. The installer must retain:
(1) A record of the name and address of the purchaser or other
person with whom the installer contracted for the installation work and
the address of the home installed;
(2) A copy of the contract pursuant to which the installer
performed the installation work;
(3) A copy of any notice from an inspector disapproving the
installation work;
(4) A copy of the qualified inspector's verification of the
installation work;
(5) A copy of the installer's certification of completion of
installation in accordance with the requirements of this part; and
(6) A copy of foundation designs used to install the home, if
different from the designs provided by the manufacturer, including
evidence that the foundation designs and instructions were certified by
a professional engineer or registered architect, including the name,
address, and telephone number of the professional engineer or architect
certifying the designs.
(b) Retention requirement. The records listed in paragraph (a) of
this section must be maintained for a period of 3 years after the
installer certifies completion of installation.
Subpart F--Inspection of Installations in HUD-Administered States
Sec. 3286.501 Purpose.
The purpose of this subpart F is to provide additional detail about
the inspection that must be performed by a qualified third-party
inspector before the installation of a manufactured home may be
verified by the inspector and certified by the installer under the HUD-
administered installation program.
Sec. 3286.503 Inspection required.
(a) Timing of requirements. Ten business days prior to the
completion of the installation of each manufactured home, the installer
must arrange for a third-party inspection of the work performed, unless
the installer and retailer who contracted with the purchaser for the
sale of the home agree, in writing, that during the same time period
the retailer will arrange for the inspection. Such inspection must be
performed as soon as practicable by an inspector that meets the
qualifications set out in Sec. 3286.511. The scope of the inspections
that are required to be performed is addressed in Sec. 3286.505.
(b) Disclosure of requirement. At the time of sale, the retailer
must disclose to the purchaser, in a manner provided in Sec. 3286.7,
that the manufactured home must be installed in accordance with
applicable federal and state law, including requirements for a third-
party inspection of the installation. If the cost of inspection of the
home's installation is not included in the sales price of the home, the
sales contract must include a clear disclosure about whether the
purchaser will be charged separately for the inspection of the home's
installation and the amount of such charge.
(c) Providing instructions to inspectors. Installation instructions
must be made available to the inspector at the installation site by the
installer.
Sec. 3286.505 Minimum elements to be inspected.
The installation of every manufactured home that is subject to the
HUD-administered installation program is required to be inspected for
each of the installation elements included in a checklist. The
checklist must include assurance that each of the following elements
complies with the
[[Page 35302]]
requirements of part 3285 of this chapter:
(a) Site location with respect to home design and construction;
(b) Consideration of site-specific conditions;
(c) Site preparation and grading for drainage;
(d) Foundation construction;
(e) Anchorage;
(f) Installation of optional features;
(g) Completion of ductwork, plumbing, and fuel supply systems;
(h) Electrical systems;
(i) Exterior and interior close-up;
(j) Skirting, if installed; and
(k) Completion of operational checks and adjustments.
Sec. 3286.507 Verifying installation.
(a) Verification by inspector. When an inspector is satisfied that
the manufactured home has been installed in accordance with the
requirements of this part, the inspector must provide verification of
the installation in writing and return the evidence of such
verification to the installer.
(b) Certification by installer. (1) Once an installation has been
inspected and verified, the installer is permitted to certify the
installation as provided in Sec. 3286.111. The installer must provide
a signed copy of the certification to:
(i) The retailer that contracted with the purchaser for the sale of
the home;
(ii) The purchaser; and
(iii) Any other person that contracted to obtain the services of
the installer for the installation work on the home.
(2) The installer must retain records in accordance with Sec.
3286.413.
Sec. 3286.509 Reinspection upon failure to pass.
(a) Procedures for failed inspection. If the inspector cannot
verify the installation of the manufactured home, the inspector must
immediately notify the installer of any failures to comply with the
installation standards and explain the reasons why the inspector cannot
issue verification that the installation complies with the requirements
of this part. After the installation is corrected, it must be
reinspected before verification can be issued.
(b) Cost of reinspection. If there is any cost for the reinspection
of an installation that an inspector has refused to verify, that cost
must be paid by the installer or the retailer and, absent a written
agreement with the purchaser that specifically states otherwise, that
cost cannot be charged to the purchaser of the manufactured home.
Sec. 3286.511 Inspector qualifications.
(a) Qualifications. Any individual or entity who meets at least one
of the following qualifications is permitted to review the work and
verify the installation of a manufactured home that is subject to the
requirements of the HUD-administered installation program:
(1) A manufactured home or residential building inspector employed
by the local authority having jurisdiction over the site of the home,
provided that the jurisdiction has a residential code enforcement
program;
(2) A professional engineer;
(3) A registered architect;
(4) A HUD-accepted Production Inspection Primary Inspection Agency
(IPIA) or a Design Approval Primary Inspection Agency (DAPIA); or
(5) An International Code Council certified inspector.
(b) Independence required. The inspector must be independent of the
manufacturer, the retailer, the installer, and any other person that
has a monetary interest, other than collection of an inspection fee, in
the completion of the sale of the home to the purchaser.
(c) Suspension or revocation of inspection authority. After notice
and an opportunity for a presentation of views in accordance with
subpart D of part 3282 of this chapter, the Secretary may suspend or
revoke an inspector's authority to inspect manufactured home
installations under this part in HUD-administered states. An
inspector's authority may be suspended or revoked for cause. In
deciding whether to suspend or revoke an inspector's authority to
conduct such installation inspections, the Secretary will consider the
impact of the suspension or revocation on other affected parties and
will seek to assure that the sales and siting of manufactured homes are
not unduly disrupted.
(d) Reinstating inspection authority. An inspector whose authority
to inspect manufactured home installations in HUD-administered states
has been suspended or revoked under this section may apply for
reauthorization by contacting: Administrator, Office of Manufactured
Housing Programs, HUD, 451 Seventh Street, SW., Room 9164, Washington,
DC 20410-8000, or to a fax number or e-mail address obtained by calling
the Office of Manufactured Housing Programs at the toll-free telephone
number 1-800-927-2891, extension 57.
Subpart G--Retailer Responsibilities in HUD-Administered States
Sec. 3286.601 Purpose.
The purpose of this subpart G is to set out the requirements that
apply to a retailer with respect to the federal installation
requirements applicable to new manufactured homes that the retailer
sells or leases and that will be installed in states that do not have
qualifying installation programs. These requirements are in addition to
other requirements that apply to retailers of manufactured homes
pursuant to other parts of this chapter.
Sec. 3286.603 At or before sale.
(a) Before contract. (1) The retailer is required to support each
transportable section of a manufactured home that is temporarily or
permanently located on a site used by a retailer in accordance with the
manufacturer's instructions.
(2) Before a purchaser or lessee signs a contract of sale or lease
for a manufactured home, the retailer must:
(i) Provide the purchaser or lessee with a copy of the consumer
disclosure statement required in Sec. 3286.7(b); and
(ii) Verify that the wind, thermal, and roof load zones of the home
being purchased or leased are appropriate for the site where the
purchaser or lessee plans to install the home for occupancy; and
(iii) If the cost of inspection of the home's installation is not
included in the sales price of the home, provide the disclosure
required in Sec. 3286.7(b).
(b) Occupancy site not known. When at the time of purchase the
purchaser does not know the locale for the initial siting of the home
for occupancy, the retailer must advise the purchaser that:
(1) The home was designed and constructed for specific wind,
thermal, and roof load zones; and
(2) If the home is sited in a different zone, the home may not pass
the required installation inspection because the home will have been
installed in a manner that would take it out of compliance with the
construction and safety standards in part 3280 of this chapter.
(c) Verification of installer license.When the retailer or
manufacturer agrees to provide any set up in connection with the sale
or lease of the home, the retailer or manufacturer must verify that the
installer is licensed in accordance with these regulations.
Sec. 3286.605 After sale.
(a) Tracking installation information. The retailer is responsible
for providing to HUD the information required pursuant to Sec.
3286.113.
[[Page 35303]]
(b) Other tracking and compliance requirements. The retailer
continues to be responsible for compliance with the tracking and
compliance requirements set out in subpart F of part 3282 of this
chapter, which are related to HUD construction and safety standards.
Sec. 3286.607 Recordkeeping.
The retailer is responsible for the reporting and recordkeeping
requirements under Sec. 3286.113.
Subpart H--Oversight and Enforcement in HUD-Administered States
Sec. 3286.701 Purpose.
The purpose of this subpart H is to set out the mechanisms by which
manufacturers, retailers, distributors, installers, and installation
inspectors will be held accountable for assuring the appropriate
installation of manufactured homes. The requirements in subpart A of
this part are applicable in all states, the requirements in subparts B
through H are applicable in states where the HUD-administered
installation program operates, and the requirements in subpart I are
applicable in states with qualifying installation programs. It is the
policy of the Secretary, regarding manufactured home installation
program enforcement matters, to cooperate with state or local agencies
having authority to regulate the installation of manufactured homes. In
addition to actions expressly recognized under this subpart H and other
provisions in this part, however, HUD may take any actions authorized
by the Act in order to oversee the system established by the
regulations in this part.
Sec. 3286.703 Failure to comply.
(a) Penalties and injunctive relief. Failure to comply with the
requirements of this part is a prohibited act under section 610(a)(7)
of the Act, 42 U.S.C. 5409(a). Any person who fails to comply with the
requirements of this part is subject to civil and criminal penalties,
and to actions for injunctive relief, in accordance with sections 611
and 612 of the Act, 42 U.S.C. 5410 and 5411.
(b) Presentation of views. When practicable, the Secretary will
provide notice to any person against whom an action for injunctive
relief is contemplated and will afford such person an opportunity to
request a presentation of views. The procedures set forth in Sec. Sec.
3282.152 through 3282.154 of this chapter shall apply to each request
to present views and to each presentation of views authorized in
accordance with this section.
(c) Investigations. The procedures for investigations and
investigational proceedings are set forth in part 3800 of this chapter.
Sec. 3286.705 Applicability of dispute resolution program.
(a) Generally. Regardless of any action taken under Sec. 3286.703,
for any defect in a manufactured home that is reported during the one-
year period beginning on the date of installation, as specified in
Sec. 3286.115, any rights and remedies available under the HUD dispute
resolution program, as implemented in part 3288 of this chapter,
continue to apply as provided in that part.
(b) Waiver of rights invalid. Any provision of a contract or
agreement entered into by a manufactured home purchaser that seeks to
waive any recourse to either HUD or a state dispute resolution program
is void.
Subpart I--State Programs
Sec. 3286.801 Purpose.
The purpose of this subpart I is to establish the requirements that
must be met by a state to implement and administer its own installation
program, either as part of its approved state plan or under this
subpart, in such a way that the state would not be covered by the HUD-
administered installation program. This subpart I also establishes the
procedure for determining whether a state installation program meets
the requirements of the Act for a qualifying installation program that
will operate in lieu of the HUD-administered installation program.
Sec. 3286.803 State qualifying installation programs.
(a) Qualifying installation program supersedes. The HUD-
administered installation program will not be implemented in any state
that is identified as fully or conditionally accepted under the
requirements and procedures of this subpart I or in accordance with
part 3282 of this chapter.
(b) Minimum elements. To be accepted as a fully qualifying
installation program, a state installation program must include the
following elements:
(1) Installation standards that meet or exceed the requirements of
Sec. 3286.107(a) and that apply to every initial installation of a new
manufactured home within the state;
(2) The training of manufactured home installers;
(3) The licensing of, or other method of certifying or approving,
manufactured home installers to perform the initial installations of
new manufactured homes in the state;
(4) A method for inspecting the initial installations of new
manufactured homes in the state that is implemented and used to hold
installers responsible for the work they perform; and
(5) Provision of adequate funding and personnel to administer the
state installation program.
(c) Conditional acceptance. (1) A state installation program that
meets the minimum requirements set forth under paragraphs (b)(1), (4),
and (5) of this section may be conditionally accepted by the Secretary
if the state provides assurances deemed adequate by the Secretary that
the state is moving to meet all of the requirements for full
acceptance. If the Secretary conditionally accepts a state's
installation program, the Secretary will provide to the state an
explanation of what is necessary to obtain full acceptance.
(2) A conditionally accepted state will be permitted to implement
its own installation program in lieu of the HUD-administered program
for a period of not more than 3 years. The Secretary may for good cause
grant an extension of conditional approval upon petition by the state.
(d) Limited exemptions from requirements. A state installation
program may be accepted by the Secretary as a qualifying installation
program if the state can demonstrate that it lacks legal authority, as
a matter of federal law, to impose the minimum requirements set forth
under paragraph (b) of this section in certain geographic areas of the
state, but that the minimum requirements do apply in all other
geographic areas of the state.
Sec. 3286.805 Procedures for identification as qualified installation
program.
(a) Submission of certification. (1) A state seeking identification
as having a qualified installation program must submit a completed
State Installation Program Certification form to the Secretary for
review and acceptance and indicate if the installation program will be
part of its approved state plan in accordance with part 3282 of this
chapter.
(2) A state must include a qualified installation program as part
of any state plan application submitted for approval under Sec.
3282.302 of this chapter, if the state does not have a fully or
conditionally approved state plan in effect at the time of submission
of the state plan application. In all other cases, a qualified
installation program is permitted, but is not required, to be submitted
as a part of a state plan
[[Page 35304]]
approved in accordance with Sec. 3282.305 of this chapter.
(b) HUD review and action. (1) The Secretary will review the State
Installation Program Certification form submitted by a state and may
request that the state submit additional information as necessary.
Unless the Secretary has contacted the state for additional information
or has conditionally accepted or rejected the state installation
program, the state installation program will be considered to have been
accepted by the Secretary as a fully qualifying installation program as
of the earlier of:
(i) Ninety days after the Secretary receives the state's completed
State Installation Program Certification form; or
(ii) The date that the Secretary issues notification to the state
of its full acceptance.
(2) A notice of full or conditional acceptance will include the
effective date of acceptance.
(c) Rejection of state installation program. (1) If the Secretary
intends to reject a state's installation program, the Secretary will
provide to the state an explanation of what is necessary to obtain full
or conditional acceptance. The state will be given 90 days from the
date the Secretary provides such explanation to submit a revised State
Installation Program Certification form.
(2) If the Secretary decides that any revised State Installation
Program Certification form is inadequate, or if the state fails to
submit a revised form within the 90-day period or otherwise indicates
that it does not intend to change its form, the Secretary will notify
the state that its installation program is not accepted.
(3) A state whose State Installation Program Certification form is
rejected has a right to a presentation of views on the rejection using
the procedures set forth under subpart D of part 3282 of this chapter.
The state's request for a presentation of views must be submitted to
the Secretary within 60 days after the Secretary has provided
notification that the state's installation program has been rejected.
Sec. 3286.807 Recertification required.
(a) Recertification. To maintain its status as a qualified
installation program when the installation program is not part of the
approved state plan in accordance with part 3282 of this chapter, a
state must submit a new State Installation Program Certification form
to the Secretary for review and action as follows:
(1) Every 5 years after the state's most recent certification as a
qualified installation program; and
(2) Whenever there is a change to the state's installation program
or a change in the HUD requirements applicable to qualifying
installation programs such that the state's installation program no
longer complies with the minimum requirements set forth in Sec.
3286.803(b), regardless of when the state's next regular
recertification of its installation program would be due.
(b) Due date of recertification. (1) A state's recertification
required in paragraph (a) of this section must be filed within 90 days
of, as applicable:
(i) The 5-year anniversary of the effective date of the Secretary's
acceptance of the state's most recent certification as a qualified
installation program; and
(ii) The effective date of the state or HUD action that makes a
significant change to the state's installation program.
(2) Upon petition by the state, the Secretary may for good cause
grant an extension of the deadline for recertification.
(c) Failure to Recertify. (1) A state whose certification of its
installation program, when the installation program is not part of the
approved state plan in accordance with part 3282 of this chapter, has
been accepted by the Secretary is permitted to administer its
installation program in lieu of the HUD-administered installation
program until the effective date of a notification by the Secretary
that the state's certification of its installation program is no longer
approved.
(2) A state whose recertification of its installation program is
rejected by the Secretary has a right to a presentation of views on the
rejection using the procedures set forth under subpart D of part 3282
of this chapter. The state's request for a presentation of views must
be submitted to the Secretary within 60 days after the Secretary has
provided notification that the state's recertification of its
installation program has been rejected.
Sec. 3286.809 Withdrawal of qualifying installation program status.
(a) Voluntary withdrawal. Any state that intends to withdraw from
its responsibilities to administer a qualifying installation program
should provide the Secretary with a minimum of 90 days notice.
(b) Involuntary withdrawal. Whenever the Secretary finds, after
affording notice and an opportunity for a hearing in accordance with
subpart D of part 3282 of this chapter, that a state installation
program fails to comply substantially with any provision of the
installation program requirements or that the state program has become
inadequate, the Secretary will notify the state of withdrawal of
acceptance or conditional acceptance of the state installation program.
The HUD-administered installation program will begin to operate in such
state at such time as the Secretary establishes in issuing the finding.
Sec. 3286.811 Effect on other manufactured housing program
requirements.
A state with a qualifying installation program will operate in lieu
of HUD with respect to only the installation program established under
subparts B through H of this part. No state may permit its installation
program, even if it is a qualified installation program under this
part, to supersede the requirements applicable to HUD's Manufactured
Housing Construction and Safety Standards and enforcement programs.
Regardless of whether a state has a qualified installation program:
(a) Construction and safety standards. Any responsibilities,
rights, and remedies applicable under the Manufactured Home
Construction and Safety Standards Act in part 3280 of this chapter and
the Manufactured Home Procedural and Enforcement Regulations in part
3282 of this chapter continue to apply as provided in those parts; and
(b) Dispute resolution. For any defect in a manufactured home that
is reported during the one-year period beginning on the date of
installation defined in Sec. 3286.115, any responsibilities, rights,
and remedies applicable under the HUD dispute resolution program as
implemented in part 3288 of this chapter continue to apply as provided
in that part.
Sec. 3286.813 Inclusion in state plan.
If a state installation program is included in a state plan
approved in accordance with Sec. 3282.302 of this chapter, the state
installation program is subject to all of the requirements for such a
state plan, including annual review by HUD.
Dated: June 5, 2008.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E8-13289 Filed 6-19-08; 8:45 am]
BILLING CODE 4210-67-P