Texas Department of Licensing and Regulation

Industrialized Housing and Buildings
IHB BULLETIN #01-001
What Every Industrialized Builder Should Know Revised June 1, 2003

DEFINITION OF AN INDUSTRIALIZED BUILDER [reference Department rule 70.10(a) (15)]

An industrialized builder is defined as "a person who is engaged in the assembly, connection, and on-site construction and erection of modules or modular components at the building site or who is engaged in the purchase of industrialized housing or buildings or of modules or modular components from a manufacturer for sale or lease to the public; a subcontractor of an industrialized builder is not a builder for purposes of these sections."

REGISTRATION [Reference Department rules 70.20 and 70.78]

1. The builder must notify the department within 10 days of any changes in information regarding the location or ownership of the registrant.

2. Provide the customers with access to the name, mailing address, and telephone number of the department for purposes of directing complaints to the department. The information shall be included on:

(a) a sign prominently displayed in the place of business

(b) any written contract for services

(c) any bill for services

3. The registration is valid for 12 months and must be renewed annually. Each separate sales office, or leasing office, must be registered .

FOUNDATIONS [reference Occupations Code, Chapter 1202, §1202.002, §1202.003, and §1202.203; department rule 70.70(e) and 70.100; Frequently Asked Questions; and the Building Site Inspection Program procedures]

Residential modular construction must be installed on a permanent foundation and installed in accordance to the manufacturer's specifications. If the typical foundation drawing is not suitable for a specific site, a licensed Texas professional engineer or architect shall design and stamp the unique foundation drawings or on-site details. Construction shown on drawings must meet or exceed the codes adopted by the Texas Industrialized Housing and Buildings Code Council.

The Texas Industrialized Building Code Council permits commercial modular construction to be installed on a temporary foundation system subject to the acceptance of the local authority.

INSPECTIONS [reference Occupations Code, Chapter 1202, §1202.203; department rules 70.62 and 70.73 and the Building Site Inspection Program procedures]

Industrialized housing and buildings installed inside the jurisdiction of a municipality fall under the jurisdiction of the local authorities for site inspections. Permits must be pulled in accordance with the requirements set by the municipality.

Site inspections, in accordance with the Building Site Inspection Program, are required of all industrialized housing and buildings installed outside the jurisdiction of a municipality on a permanent foundation. These site inspections shall be performed by a Texas registered IHB third party inspector or a Texas licensed professional engineer or architect.

NOTE: HUD, FHA, or licensed Real Estate Inspectors are not acceptable inspectors for the performance of the site inspection.

Industrialized builders are required to obtain a site inspection report from the inspector that includes the following information:

1. dates of all inspections;

2. the name, Texas registration number or license number, and signature of the inspector who performed the inspections;

3. the name and Texas industrialized builder registration number of the person responsible for the foundation and installation;

4. the name and Texas registration number of the manufacturer of the modules or modular components inspected;

5. the name and address of the owner of the building or buildings inspected;

6. the complete site address of the modules or modular components inspected;

7. the Texas decal or insignia numbers and the manufacturer's identification or serial numbers of the modules or modular components inspected (may be obtained from the building data plate);

8. the building codes the modules or modular components were designed to meet in accordance with the data plate on the building;

9. the occupancy group and the building construction type of the building in accordance with the data plate on the building;

10. a record of all system testing observed; and

11. the date and description of any deviations to the approved plans, unique site completion documentation, or mandatory codes and the corrective action, taken by the industrialized builder. The inspector shall notify the department of any deviations that cannot be corrected or that the builder refuses to correct.

RECORDS AUDIT [Reference Department rule 70.50(b), and enclosed Building Site Inspection Program procedures]

An annual audit of units sold, leased, or installed by the builder shall be conducted by the Department. As an industrialized builder you are required to keep records of all modular units for a minimum of five years.

The Department shall identify each unit in the audit by the manufacturer's name and registration number, manufacturer's serial number, and Texas decal or insignia number. The builder shall provide the following information to the Department for each unit identified in the audit, within the timeframe set by the audit.

1) Evidence of compliance with department rule 70.75. Department rule 70.75 requires the builder to provide certain information to the purchaser (owner) of an industrialized house or building.

2. The address where each unit was installed. If the builder is not responsible for the installation, then the address to where each unit was delivered.

3. The occupancy use of each building containing modules or modular components, i.e., classroom, restaurant, bank, equipment shelter, etc.

4. Identification of the type of foundation system, either permanent or temporary, on which each unit was installed, in accordance with the following (see site inspection procedures).

(A) If the builder is responsible for the installation and site work, then the builder:

(i) shall, for units installed outside the jurisdiction of a municipality, keep a copy of the foundation plans and, for units installed on a permanent foundation, keep a copy of the site inspection report in accordance with department rule 70.73 (relating to Responsibilities of the Registrants – Building Site Inspections). A copy of these documents shall be made available to the department upon request; or

(ii) shall, if installed within the jurisdiction of a municipality, provide the name of the city responsible for the site inspection.

(B) If the builder is not responsible for the installation and site work, then the builder shall provide identification of the installation permit number, assigned by the Department, or builder registration number, assigned by the Department, of the person responsible.

Copies of all documents referenced in this bulletin may be downloaded from our web site at www.license.state.tx.us. While you're checking out the web site, take a few minutes and subscribe to our email subscriber list and become one of the first to be informed of upcoming events and changes to the IHB program.

If you have questions, or require further information, please contact us at (512) 463-7353, or you may email us at industrialized.buildings@license.state.tx.us.

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