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June 14, 2006
Part V
Department of
Housing and Urban
Development
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24 CFR Part 3286
Manufactured Home Installation Program;
Proposed Rule
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Federal Register / Vol. 71, No. 114 / Wednesday, June 14, 2006 / Proposed Rules
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Part 3286
[Docket No. FR–4812–P–02; HUD–2006–
0167]
RIN 2502–AH97
Manufactured Home Installation
Program
Office of the Assistant
Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Proposed rule.
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AGENCY:
SUMMARY: This proposed rule would
establish a federal manufactured home
installation program. HUD is required to
establish such a program in accordance
with the National Manufactured
Housing Construction and Safety
Standards Act of 1974, as amended by
the Manufactured Housing
Improvement Act of 2000. 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 that would be
established through this proposed and
final rulemaking. The new elements
required by statute to be integrated into
an acceptable manufactured home
installation program are: Establishment
of qualified installation standards;
licensing and training of installers; and
inspection of the installation of
manufactured homes.
DATES: Comment Due Date: August 14,
2006.
ADDRESSES: Interested persons are
invited to submit comments regarding
this rule to the Regulations Division,
Office of General Counsel, Department
of Housing and Urban Development,
451 Seventh Street, SW., Room 10276,
Washington, DC 20410–0500. Interested
persons also may submit comments
electronically through the Federal
eRulemaking Portal at
www.regulations.gov. HUD strongly
encourages commenters to submit
comments electronically in order to
make them immediately available to the
public. Commenters should follow the
instructions provided on that site to
submit comments electronically.
Facsimile (FAX) comments are not
acceptable. In all cases, communications
must refer to the docket number and
title. All comments and
communications submitted to HUD will
be available, without change, for public
inspection and copying between 8 a.m.
and 5 p.m. weekdays at the above
address. Due to security measures at the
HUD Headquarters building, an advance
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appointment to review the public
comments must be scheduled by calling
the Regulations Division at (202) 708–
3055 (this is not a toll-free number).
Copies of all comments submitted are
available for inspection and
downloading at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
William W. Matchneer III, Associate
Deputy Assistant Secretary for
Regulatory Affairs, Office of Regulatory
Affairs and Manufactured Housing,
Department of Housing and Urban
Development, 451 Seventh Street, SW.,
Room 9164, Washington, DC 20410–
8000; telephone (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 (800) 877–8389.
SUPPLEMENTARY INFORMATION:
I. Background
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.
The Act was amended on December 27,
2000 (Manufactured Housing
Improvement Act of 2000, Title VI, Pub.
L. 106–659, 114 Stat. 2997) to require
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.
A state that wants to operate its own
installation program is not required to
be a State Administrative Agency (SAA)
under HUD’s manufactured home
program (see 24 CFR part 3282). Under
the Act, however, any state that submits
a new state plan to become an SAA after
December 26, 2005, must include a
complying installation program as part
of its plan. As a result, after December
26, 2005, 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.
The installation standards that will
provide a basis for qualifying an
installation program under section 605
of the Act were the subject of a separate
proposed rule, which was published on
April 26, 2005 (70 FR 21498). In
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addition, an Advance Notice of
Proposed Rulemaking that solicited
public input on the installation program
requirements was published on March
10, 2003 (68 FR 11448). Twenty-six
commenters responded to the March
2003 notice, including a dozen state
agencies, five state and national
industry groups, a manufacturer, four
state and national consumer groups, and
four individuals. The comments and
suggestions received from all of these
commenters, as well as from the
Manufactured Housing Consensus
Committee (MHCC), were taken into
consideration in the development of this
proposed rule. However, not all of the
comments could be accommodated,
because of statutory authority or cost
considerations. For example, the MHCC
and commenters have recommended
that HUD develop a program database to
record and verify installations and to
record how installers and other parties
meet the installation program
requirements. Such a database would be
available for recording training,
including continuing education;
licensing; and installation inspections
and verifications. Due to cost
considerations, the proposed rule
provides for the possibility of such a
tracking system, but also provides for
less expensive alternative methods.
Further, the Department is seeking
comment regarding what information
should be sent to the Department and
what should be retained by retailers and
installers.
A number of the comments focused
on the administration of state
installation programs rather than HUD’s
development and administration of a
federal installation program. These
comments were helpful, and HUD is
examining the degree to which HUD has
authority to use additional suggested
approaches to implement its installation
program. For example, both the MHCC
and a number of commenters suggested
that parties that participate in and
receive the benefits of the installation
program pay at least a portion of the
direct costs associated with the
program. This is an approach used by
many states that currently have
installation programs. Such user charges
would generally not be intended to
cover the purely administrative costs to
HUD of implementing the program, but
might include fees to obtain an
installer’s license or to be qualified as a
trainer. Other administrative costs of the
program in HUD-administered states
would be funded as general program
expenses. HUD is currently reviewing
this approach and will not introduce
any user fees until HUD’s authority on
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such an approach is clear. Nevertheless,
HUD is requesting comments on the
advisability of incorporating such fees
into the installation program for HUDadministered states.
II. General Principles
HUD identified several general
principles to guide it in developing this
proposed rule. As a starting point, HUD
wanted to encourage states to establish
and implement their own installation
programs. For the federal program, HUD
determined that it wanted to
concentrate its limited resources on
assuring a quality end product, rather
than on micromanagement of the
installation process, such as negotiating
specific methods used by each installer,
retailer, and manufacturer.
So that installers would not be
dependent on the actions of HUD in
order to complete any phase of home
installation, HUD wanted to minimize
its role in the actual installation process.
Instead, HUD has sought to maintain
knowledge of the parties involved in the
installation process by assuring the
collection of certain information
regarding the parties’ work. Ultimately,
the goal for HUD’s continued
administration of its installation
program would be to identify trends or
early indicators of potential problems
and then address those areas on a
systemic basis.
HUD has based its program design on
limiting HUD’s day-to-day oversight and
encouraging participation in the
oversight process by local building code
authorities. Such a program design
would be the most economical and
effective approach. In addition, this
design would take advantage of the
expertise of qualified state and local
authorities that are already providing
oversight for the installation of
manufactured homes.
The HUD-administered installation
program outlined in this proposed rule
would be based on qualified installer
self-certification of the proper
installation of the manufactured home,
similar to the certification concept used
for manufacturers to assert compliance
of the home with construction and
safety standards. The installation
certification would include certification
that the work had passed the required
inspection, which would include at
least certain elements specified in the
rule. At the same time, by requiring the
retailer to be responsible for certain
recordkeeping functions, the rule would
recognize that the retailer is an
important component of the installation
process.
The rule also would establish
disclosure requirements to help the
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purchaser or lessee understand the
installation requirements, and would set
out installation-related responsibilities
for home manufacturers.
Finally, the rule would establish
special procedures for adding to or
revising the regulations that would be
included in this new part 3286. These
procedures would involve the MHCC, a
consensus committee established in
section 604(a)(3) of the Act (42 U.S.C.
5403), in the issuance of regulations for
the installation program and would be
in addition to the rulemaking
procedures that would otherwise apply.
III. Manufactured Home Installation
Program Overview
The statutory concept of the
manufactured home installation
program, whether HUD-administered or
state-administered, is to apply
minimum standards to the installation
of new manufactured homes, so that
qualified persons will install the homes
properly. Manufactured homes that are
properly installed can provide safe and
durable quality housing that can also be
highly affordable, since proper
installation can mean fewer repairs and
longer home-lives.
The proposed rule sets out, in discrete
subparts: (1) Manufactured home
installation requirements that are
applicable in all states (subparts A and
H) and to all manufacturers; (2)
requirements that are applicable in only
those states in which HUD is
administering the installation program
(subparts B–G); 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 proposed
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. If a term is defined
in both this proposed rule and other
parts of HUD’s manufactured housing
program regulations, the final rule may
include conforming amendments to
assure consistency of the definitions, as
appropriate.
Manufacturer Responsibilities (All
States). All manufacturers would be
required to provide, with each home, an
installation design and instructions that
have been deemed by a Design Approval
Primary Inspection Agency (DAPIA) as
providing at least the level of protection
that would be provided under the
installation standards that will be
adopted by HUD in 24 CFR part 3285
(see 70 FR 21498, April 26, 2005). If a
home is installed in accordance with
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instructions provided by the
manufacturer and those instructions do
not provide at least the required level of
protection, the manufacturer will be
responsible for the failure of the home
to comply with the installation
standards.
The manufacturer’s installation
instructions also must include
instructions for supporting the
manufactured home temporarily before
the home is first sited for occupancy. In
order to prevent the home from being
brought out of compliance with the
construction and safety standards, the
instructions must be adequate to assure
support for each transportable section of
a manufactured home that is
temporarily or permanently located on a
site used by the manufacturer, by the
retailer or at the home site.
For each home a manufacturer ships,
the manufacturer must concurrently
provide HUD with certain information
that identifies the home and the
destination of the shipment. This
information is similar to what is
required already from manufacturers
under regulations set out in 24 CFR
3282.552 relating to the construction of
homes. HUD anticipates that the
manufacturer’s reporting requirements
for identifying the home and the
destination of the shipment will be
satisfied by a consolidated report.
Manufacturers, with their homes
shipped to retailers and distributors,
would also be required to include
confirmation that this tracking
information has been provided to HUD,
and the information must be updated by
the retailer or distributor. Manufacturers
would also be required to include in
their consumer manuals a
recommendation that if a manufactured
home is reinstalled, the new installation
work should be inspected.
Retailer/Distributor Responsibilities
(All States). The proposed rule defines
‘‘retailer’’ to include manufacturers and
distributors that sell manufactured
homes directly to purchasers. All
retailers and distributors would be
required to support each transportable
section of a manufactured home that is
temporarily or permanently located on a
site used by the retailer or distributor in
accordance with the manufacturer’s
instructions for temporary storage, in
order to prevent the home from being
brought out of compliance with the
construction and safety standards.
The rule would require retailers to
provide certain disclosures to
purchasers or lessees, either as a
separate section of the sales or lease
contract or in a separate document. The
disclosures are intended to provide
important information to consumers
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regarding the installation requirements
that will apply to their manufactured
homes. The proposed rule also reminds
parties that the Act prohibits provisions
in agreements or contracts that would
allow purchasers or lessees to waive any
rights afforded to them by the Act.
For each home that is sold or leased,
retailers and distributors would be
required to maintain a sales or lease
record containing specified information
for 5 years. For each home that is
installed in a state where HUD
administers the installation program,
retailers and distributors would also be
required to update the tracking
information that the manufacturers had
provided to HUD. This information will
enable HUD to determine which homes
are to be installed in accordance with
the HUD-administered installation
program. Additional information
provided by the retailers for homes sited
in states where HUD administers the
installation program will help HUD
ascertain whether the installation
requirements have been met, and will
help HUD identify ways to improve the
program.
The proposed rule also assigns other
responsibilities to the retailer. Before
the manufactured home is sold or
leased, the retailer must verify that the
home is appropriate for the wind,
thermal, and roof loads where the home
is to be sited. If the initial home site is
not yet known, the retailer must provide
additional disclosures to the purchaser
or lessee about the design limits of the
home and about the risk that an
improperly sited home may not pass
required inspections. The retailer must
also provide the installer with a copy of
the approved installation design and
instructions.
Installer Responsibilities (HUDAdministered States). The quality of the
installation work on a manufactured
home will depend primarily on the
installer. Because HUD has not
previously exercised authority over
installers, they are likely to be in need
of education about the new
requirements that would apply to their
work. The amendments to the Act that
mandate an installation program
recognize the importance of quality
installation work to the performance of
a purchaser’s home. HUD hopes that the
network of manufacturers and retailers,
who are already familiar with the
federal role in manufactured housing,
will work to assure an educated and
qualified pool of manufactured home
installers. To be qualified, an installer
will have to demonstrate adequate
training, including experience, in order
to be recognized by HUD as a licensed
installer. The term ‘‘installation license’’
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or ‘‘installer’s license’’ is defined in a
specific way in the proposed rule, to
acknowledge that the term ‘‘license’’ is
often understood to imply other
characteristics than are applicable under
the proposed rule.
An installer would be required to
obtain training from approved trainers,
who would be responsible for teaching
a curriculum that enables installers to
pass a HUD-administered or HUDapproved test. The proposed rule
establishes both initial training
requirements and continuing education
requirements for installers.
In addition, an installer seeking a
license from HUD would be required to
provide evidence of, and maintain,
general liability insurance. The term of
the license would be 3 years, but the
license could be renewed. If an
applicant is denied a license on grounds
other than failure to pass the installation
license test, or if a licensee receives
notice that his or her license might be
revoked or suspended, the applicant or
licensee could request an opportunity to
challenge the adverse action in an
administrative proceeding.
Not all persons who perform
installation work would be required to
be licensed. Only licensed installers,
however, would be permitted to certify
the installation as being in conformance
with the applicable instructions and the
requirements of HUD’s installation
program, and the licensed installer
would be responsible for all of the
installation work. The proposed rule
also lists typical work related to the
siting of a manufactured home for
which an installation license is not
required.
After meeting the licensing
requirements, an installer would be
qualified to install a manufactured
home in a state where HUD administers
the installation program. The installer
would be responsible for installing the
home in accordance with the
manufacturer’s instructions, which must
reflect the requirements established by
HUD. As part of the installation work,
the installer would be required to verify:
(1) The suitability of the site for
placement of the home and (2)
suitability of the proposed foundation or
support and stabilization system. If the
installer believes the home cannot be
installed properly at the site, the
installer must notify the contracting
parties, including the retailer, and must
decline to install the home until the
deficiencies are remedied.
After completion of the installation
work, the installer or retailer would be
required to arrange on a timely basis for
the work to be inspected by an
appropriate third-party inspector. The
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proposed rule does not specify a time
for completion of the inspection; rather,
the rule merely requires that it be
arranged within 5 business days after
completion of the installation work.
HUD recognizes that inspector
availability may be beyond the control
of the installer and retailer, but expects
that the installer and retailer will have
sufficient incentive to complete the
inspection without having to establish a
deadline for completion.
When the installer has received the
verification of compliance from a
qualified inspector, the installer may
certify the installation work. The
installer would then provide the
certification to the retailer and a copy of
the certification to the purchaser.
Finally, the installer is required to
maintain certain records relating to the
installation for 5 years.
Trainers (HUD-Administered States).
The proposed rule establishes
experience and curriculum criteria for
persons who wish to register as
installation trainers under the HUDadministered installation program. HUD
proposes allowing a broad range of
private persons and entities to provide
the required training, which HUD hopes
will assure continued ready access to
trainers by installer-license candidates
throughout the country. Qualified
trainers would be required to maintain
attendance and other records and to
provide certificates of completion of
training, and may be authorized to
administer the tests required for
installers to obtain licenses from HUD.
The curriculum that trainers would be
required to develop includes an
overview of the Act and the regulatory
structure of HUD’s manufactured home
program, as well as general and specific
instruction of installation standards and
requirements.
The requirements for continuing
education to maintain an installer’s
license beyond the initial 3-year term
would be more flexible. Only qualified
trainers would be permitted to train on
subject areas required by HUD for
continuing education, but the balance of
the required hours could be met in a
variety of ways.
Interested individuals and entities
would apply to HUD to be recognized as
qualified trainers for a renewable 5-year
term. The proposed rule also provides a
right for applicants and qualified
trainers to request an opportunity to
challenge, in an administrative
proceeding, any adverse action on their
qualification by HUD.
Inspectors (HUD-Administered
States). HUD proposes to rely on local
building inspectors and professional
engineers and architects as
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independent, third-party inspectors of
all installations of new manufactured
homes in states where HUD administers
the installation program. Generally, the
installer would be responsible for
obtaining and paying for the inspection
services. The proposed rule sets out the
elements that would be included in the
inspection checklist, including required
permits, specific elements of the
minimum installation standards, and
operational checks to be completed. The
inspector would verify that the
installation has been completed in
accordance with the requirements of the
regulations and would provide evidence
of the verification to the installer. The
installer must receive this verification
before the installer could certify the
installation work. The proposed rule
also addresses what would happen if an
installation cannot be verified as
meeting the requirements of the
regulations. As with other categories of
program participants, inspectors would
have a right to request administrative
review of an adverse action by HUD on
their authority to serve as inspectors in
the HUD-administered states.
Enforcement (HUD-Administered
States). The proposed rule reiterates that
failure to comply with the installation
program requirements would be a
prohibited act under section 610(a)(7) of
the Act (42 U.S.C. 5409(A)). As a result,
the violator would be subject to civil
and criminal penalties and actions for
injunctive relief. In addition,
installation defects that are reported in
the first year after installation may be
addressed in a dispute resolution
program that meets the requirements in
section 623 of the Act (42 U.S.C. 5422).
HUD has published a separate proposed
rule to implement the requirements for
a qualifying dispute resolution program
on October 20, 2005, at 70 FR 61178.
Recordkeeping (All States). As
proposed, the rule would require
retailers and distributors to maintain a
sales or lease record containing
specified information for all homes that
they sell or lease. In addition, retailers
and distributors would be required to
report to HUD certain information about
each home that is installed in states
where HUD administers the installation
program, so that HUD can determine
which homes are to be installed in
accordance with the HUD-administered
installation program. This information
may be useful if HUD is to structure fees
according to the siting of the home.
Such a reporting structure might
eventually be simplified by establishing
Internet-based data entry, rather than
using hard-copy reports, and by
consolidating installation and
construction reporting requirements.
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IV. State Installation Programs
Qualifying State Programs. One of
HUD’s guiding principles in developing
the proposed HUD Manufactured Home
Installation Program is to encourage the
development and continued innovation
of state installation programs. The
proposed rule would establish that the
HUD-administered installation program
will operate in a state unless that state
certifies, using a form provided in the
rule, that it has its own qualifying
installation program. A state installation
program would be required to meet
criteria listed in the self-certification
form, but the rule would not specify
how the criteria are to be met. In this
way, states will have more flexibility to
design installation programs or modify
existing ones according to their
individual preferences and
circumstances.
A state’s certification would
encompass those elements expressly
required by the Act to be part of a
qualifying program, i.e., standards that
provide protection to residents that
equals or exceeds the level of protection
provided by HUD’s model standards;
the state’s training and licensing of
installers; and the state’s inspection of
installations. An appropriate state
official would sign the self-certification,
and, at least initially, HUD would
perform only a limited review of such
certifications. If a state provides for its
installation program as part of a state
plan, HUD would also consider the
installation program when it reviews the
state plan. Recertification would be
required every 3 years or whenever
there is a significant revision in either
the state’s installation standards or its
installation program elements.
Generally, a state that wants to
administer its own program will have to
assure HUD that all geographical areas
of the state would be covered by the
applicable installation standards and
the other program requirements. An
exception would be provided for limited
areas of the state that are subject to
federal law that prevents the state from
having jurisdiction over manufactured
home installations in those areas. The
certification form would include an
item asking the state for information
about such situations. The certification
form also asks the state to provide other
information that will help HUD
understand and evaluate its overall
approach to implementation of the Act’s
installation program. Those parts of the
certification form that ask for
information beyond what is required for
the self-certification would be used to
assess the utility of future modifications
of HUD’s installation program.
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The proposed rule would permit a
state that complies in significant part
with the requirements for a stateadministered installation program, and
that is moving toward full compliance,
to be conditionally accepted as a
qualifying program for up to 3 years.
These states would have to require
compliance with the minimum
installation standards and would have
to provide adequate funding and staffing
support to their programs. Similar to the
provision for rejection of state plans (see
24 CFR 3282.304), in the proposed rule
HUD would provide notice to the state
if HUD finds the state’s certification
inadequate, and HUD would also
provide an opportunity to cure the
inadequacy. In the event of a failure to
cure, HUD would notify the state, by
using the procedures in 24 CFR part
3282, subpart D, that the HUD
installation program would apply in
that state, and that the state has a right
to a hearing on the disapproval.
Effect of Other State and Local
Requirements. The Act provides specific
criteria only for the installationstandards component of a qualifying
installation program. In order for a state
installation program to satisfy the
criteria of the Act, the installation
standards imposed by the state must
provide at least the specified level of
protection to residents of manufactured
homes. See section 605(c)(3)(A) of the
Act (42 U.S.C. 5404(c)(3)(A)). The Act
does not establish such minimum
requirements for the other elements that
are required to be in a qualifying state
program: training and licensing of
installers, and inspections.
Further, section 604(d) of the Act (42
U.S.C. 5403(d)) generally reserves to
each state the right to establish
standards for the stabilizing and support
systems and foundation systems of
manufactured homes sited in the state.
Therefore, state and local requirements
that are not inconsistent with the
minimum installation standards
required by the Act and HUD’s
regulations might also be applicable to
particular installations. For example, a
state or local requirement that only
licensed persons may perform work to
connect the home to utilities would not
be affected by this proposed rule.
V. Specific Issues for Comment
In addition to commenting on the
specific provisions included in this
proposed rule, the public is invited to
provide comment on the following
questions and any other related matters:
(1) Limited exemptions from
requirements. The proposed rule
provides that, in limited circumstances,
a state may qualify to administer its own
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installation program even if the
minimum installation standards cannot
be applied and enforced in all areas of
the state. This limited exemption is
intended to apply only where the state
can demonstrate that it lacks legal
authority, as a matter of federal law, to
impose the installation requirements,
and the proposed rule would require
that the minimum installation standards
and other requirements do apply in all
other areas of the state. Similarly, the
proposed rule provides an exception to
application of the installation program
requirements to temporary housing
units provided to victims of
Presidentially declared disasters, when
the manufactured home is installed by
persons holding an emergency
contractor license issued by: (1) The
state in which the home is sited or (2)
by the Federal Emergency Management
Agency. Should the final rule recognize
any other exemptions?
(2) Should the manufacturer be
required to provide notice about the
installation program in the home or in
the consumer’s manual, in addition to
the required disclosure on the sales
contract?
(3) Should the final rule set out
specific language for the installer to use
in certifying that the installation of the
home complies with the requirements of
HUD’s installation program? If so, what
information should be included in the
installer’s certification?
(4) Should the final rule include any
requirements for training relating to
assuring accessibility and visitability for
mobility-challenged persons?
(5) Should the final rule include any
special method for tracking homes that
are released from one retailer to
another? If so, what should be the
method?
(6) The proposed rule includes a
requirement that retailers notify HUD
about new manufactured homes that
will be installed in a state where HUD
administers the installation program.
Should the final rule include a
requirement that, when a manufactured
home is sold, retailers notify either HUD
or the state in which the home is to be
installed (if that state has a qualifying
installation program)?
(7) For purposes of HUD’s
enforcement of requirements related to
installation standards and construction
and safety standards, HUD may
establish a different completion-of-sale
date in HUD-administered states than
would be applicable in non-HUDadministered states. How should the
completion-of-sale date of a
manufactured home be affected by the
new requirements for installation
oversight in: (1) HUD-administered
states? (2) In states with their qualifying
installation programs? (See 24 CFR
3282.252(b) in HUD’s procedural and
enforcement regulations, and § 3286.117
in this proposed rule.)
(8) Section 3286.203(b) of this
proposed rule lists kinds of work or
activities for which an installation
license would not be required. Are there
other areas that should be included in
any such listing in the final rule?
(9) Should holding an installer’s
license or certification that is issued in
a state with a qualifying installation
program be recognized as a basis for
exempting a HUD license applicant
from having to meet the experience
requirements that would otherwise
apply?
(10) Should a professional engineer, a
registered architect, or a Primary
Inspection Agency (PIA) be permitted to
conduct an installation inspection only
if an inspector from the appropriate
local jurisdiction is not available to
perform the inspection? Should any
other persons be permitted to conduct
the installation inspections in HUDadministered states, such as qualified
inspectors from other states with HUDapproved installation programs or
private third parties experienced in
residential building construction?
(11) Disclosures. Section 3286.603(b)
in the proposed rule requires a retailer
disclosure when the initial siting
location of the manufactured home is
not known at the time of sale. Should
the final rule instead require the retailer
to know at the time of sale where the
home is to be sited? If not, should the
final rule include the § 3286.603(b)
disclosure in the list of written
disclosures required in § 3286.7(b) of
the proposed rule? Should the final rule
expressly require that any or all of these
disclosures be signed by the purchaser,
as evidence that the required disclosure
was made?
Number of
respondents
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Information collection
§ 3286.5(d)—Manufacturer’s temporary installation instructions ......................................................................
§ 3286.7(a)—Manufacturer’s notice in the consumer
manual ..........................................................................
§ 3286.7(b)—Retailer
disclosure
before
sale
(§ 3286.503(b), § 3286.603(a)(2)(i)) .............................
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Responses per
respondent
(12) Use of the word ‘‘should’’ instead
of ‘‘must.’’ Occasionally in the proposed
rule, HUD has used the word ‘‘should,’’
rather than the mandatory ‘‘must.’’ This
usage has been deliberate and generally
indicates an area that HUD recognizes as
being important to the successful
installation of a manufactured home,
but in which HUD believes its authority
is limited. Commenters are invited to
point out instances of where the choice
of terminology may be inappropriate.
VI. 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). Any changes made to the rule
subsequent to its submission to OMB
are identified in the docket file, which
is available for public inspection in the
Regulations Division, Office of General
Counsel, Department of Housing and
Urban Development, 451 Seventh Street,
SW., Room 10276, Washington, DC
20410–0500.
Paperwork Reduction Act
The proposed information collection
requirements contained in this rule have
been submitted to the OMB for review
under the Paperwork Reduction Act of
1995 (44 U.S.C. 3501–3520). Under this
Act, an agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection displays a valid
control number.
The public reporting burden for this
collection of information is estimated to
include the time for reviewing the
instructions, searching existing data
sources, gathering and maintaining the
data needed, and completing and
reviewing the collection of information.
The following table provides
information on the estimated public
reporting burden:
Total annual
responses
Hours per
response
78
1
78
222
608
135,000
0.17
22,500
5,151
26
135,000
0.17
22,500
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14JNP4
20
Total hours
1,560
Federal Register / Vol. 71, No. 114 / Wednesday, June 14, 2006 / Proposed Rules
Number of
respondents
Information collection
§ 3286.9(a)—Manufacturer providing information to HUD
prior to shipment ..........................................................
§ 3286.9(c)—Manufacturer providing notice to retailer at
time of shipment ...........................................................
§ 3286.9(d)—Manufacturer’s notice in the installation instructions ......................................................................
§ 3286.13—Retailer providing information to HUD
(§ 3286.605(a)) .............................................................
§ 3286.103(a)—Retailer providing installation instructions to the purchaser ..................................................
§ 3286.103(b)—Retailer providing installation instructions to the installer ......................................................
§ 3286.111(a)—Installer conduct installation certification
of installation (§ 3286.411(a), § 3286.507(b)) ...............
§ 3286.111(b)—Installer providing installation certification to retailer and purchaser (§ 3286.411(a),
§ 3286.507(b)) ..............................................................
§ 3286.113(a)—Retailer providing installation information to HUD (§ 3286.605(a)) .........................................
§ 3286.207(a)—Installation license application ................
§ 3286.207(b)—Proof of experience for license ..............
§ 3286.207(c)—Proof of training for license ....................
§ 3286.207(d)—Proof of insurance for license ................
§ 3286.207(e)—List of states in which the applicant
holds a license .............................................................
§ 3286.211(b)—Installation license renewal ....................
§ 3286.303(b)—Trainers required to keep attendance
records ..........................................................................
§ 3286.303(c)—Trainers required to provide completion
certificates ....................................................................
§ 3286.307(a)—Trainer registration application ...............
§ 3286.307(b)—Trainer proof of experience required .....
§ 3286.307(c)—Other trainer qualification required .........
§ 3286.313—Expiration and renewal of trainer qualification ................................................................................
§ 3286.405(b)—Installer notification of inappropriate site
§ 3286.413—Installer recordkeeping requirements .........
§ 3286.805(a)—State Installation Program Certification
Form .............................................................................
§ 3286.807(a)—State Installation Program Recertification Form ..................................................................
sroberts on PROD1PC70 with PROPOSALS
Totals ........................................................................
In accordance with 5 CFR
1320.8(d)(1), HUD is soliciting
comments from members of the public
and affected agencies concerning the
proposed collection of information to:
(1) Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility;
(2) Evaluate the accuracy of the
agency’s estimate of the burden of the
proposed collection of information;
(3) Enhance the quality, utility, and
clarity of the information to be
collected; and
(4) Minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated collection
techniques or other forms of information
technology, e.g., permitting electronic
submission of responses.
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Responses per
respondent
Total annual
responses
Total hours
222
608
135,000
0.17
22,500
222
608
135,000
0.17
22,500
222
608
135,000
0.17
22,500
340
20
6,750
0.17
1,125
340
20
6,750
0.17
1,125
340
17
5,738
0.17
956
1,021
7
6,750
0.5
3,375
1,021
7
6,750
0.17
1,125
340
1,021
1,021
1,021
1,021
20
1
1
1
1
6,750
1,021
1,021
1,021
1,021
0.25
1
1
0.25
0.25
1,688
1,021
1,021
255
255
1,021
1,021
1
1
1,021
1,021
0.08
1
85
1,021
50
1
50
50
50
50
50
20
1
1
0.02
1,021
50
50
1
50
1,021
1,021
1
0.07
1
50
68
1,021
104
0.17
1
1
0.25
1
0.5
24
5,200
170
50
50
0.25
50
34
24,504
35
1
35
2
70
35
1
35
1
35
........................
2,583
723,073
Interested persons are invited to
submit comments regarding the
information collection requirements in
this proposal. Under the provisions of 5
CFR part 1320, OMB is required to make
a decision concerning this collection of
information between 30 and 60 days
after today’s publication date. Therefore,
any comment on the information
collection requirements is best assured
of having its full effect if OMB receives
the comment within 30 days of today’s
publication. This time frame does not
affect the deadline for comments to the
agency on the proposed rule, however.
Comments must refer to the proposal by
name and docket number (FR–4812–P–
02) and must be sent to:
HUD Desk Officer, Office of
Management and Budget, New
Executive Office Building,
Washington, DC 20503, FAX: (202)
395–6974;
and
PO 00000
Hours per
response
34481
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..........................
157,276
Kathleen O. McDermott, Reports Liaison
Officer, Office of the Assistant
Secretary for Housing—Federal
Housing Commissioner, Department
of Housing and Urban Development,
451 Seventh Street, SW., Room 9116,
Washington, DC 20410–8000.
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 proposed rule does not
impose any federal mandates on any
state, local, or tribal government or the
private sector within the meaning of the
Unfunded Mandates Reform Act of
1995.
Environmental Review
A Finding of No Significant Impact
with respect to the environment has
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Federal Register / Vol. 71, No. 114 / Wednesday, June 14, 2006 / Proposed Rules
been made 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)). 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.
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
NAICS code
through the National Manufactured
Housing Construction and Safety
Standards Act of 1974 (42 U.S.C. 5401–
5426). However, in accordance with the
Act and as set forth in § 3286.15 of this
proposed rule, this Manufactured Home
Installation Program is not preemptive.
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. When the proposed
regulation will impose a significant
economic impact on a substantial
number of small entities, the agency
must evaluate alternatives that would
accomplish the objectives of the rule
without unduly burdening small
entities.
HUD conducted a preliminary
analysis of the cost impact on small
entities for this rule. The completed
preliminary analysis concluded that the
Manufactured Home Installation
Program would have a significant
economic impact on a substantial
number of small entities. Pursuant to
the requirements of the Regulatory
Flexibility Act (5 U.S.C 603), HUD
performed an Initial Regulatory
Flexibility Analysis (IRFA) that
evaluates the potential economic impact
on the small entities the regulations will
Description of primary entity
Number of
regulated entities
affect, including: manufacturers,
retailers, installers, and trainers. The
IRFA also evaluates the differences in
cost depending whether the home is
single-section or multi-section. A
summary of the IRFA follows. As noted
above in the preamble, on December 27,
2000, the National Manufactured
Housing Construction and Safety
Standards Act of 1974 (42 U.S.C 5401–
5426) (the Act) was amended by the
Manufactured Housing Improvement
Act of 2000, which, among other things,
required 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 HUD.
The rule would regulate
establishments primarily engaged in
making manufactured homes (NAICS
321991), the sale or lease of
manufactured homes (NAICS 453930),
the installation of manufactured homes
(NAICS 238990), the training of
installers (NAICS 611519), and states
administering their own installation
programs. The following table
summarizes the number of regulated
entities and the number of small entities
that the proposed rule would affect:
Number of
small entities
SBA size standard
Percentage of
regulated
entities
All states—Subpart A is applicable in all states
321991 ..................................
453930 ..................................
Manufacturers .......................
Retailers ................................
222
5,151
500 emp. ...............................
500 emp. ...............................
198
5,151
89
100
340
1,021
50
100
100
100
0
0
States without installation programs—Subparts B through H are applicable in these states
453930 ..................................
238990 ..................................
611519 ..................................
Retailers ................................
Installers ................................
Trainers .................................
340
1,021
50
500 emp. ...............................
$12 mil. .................................
$6 mil. ...................................
States with installation programs—Subpart I is applicable in these states
States ....................................
sroberts on PROD1PC70 with PROPOSALS
Of the 222 firms included under the
NAICS 321991 definition, 198 are small
manufacturers that fall below the small
business threshold of 500 employees. Of
the remaining firms involved in the
manufactured housing industry
regulated by this proposed rule
35
50,000 pop. ...........................
included under NAICS 453930, NAICS
238990, and NAICS 611519 definitions,
none exceed the small business
thresholds established for the category.
States are not considered small entities
since they exceed the small jurisdiction
threshold population of 50,000.
Therefore, the rule would affect a
substantial number of small entities.
The following table summarizes the
cost impacts associated with the
proposed rule:
Current manufactured home production—Total ....................................................................................................................................
Current manufactured home production—HUD-administered states ...................................................................................................
Number of manufacturers—Total ............................................................................................................................................................
Estimated number of retailers—Total ......................................................................................................................................................
Estimated number of retailers—HUD-administered states .....................................................................................................................
Estimated number of installers—HUD-administered states ...................................................................................................................
Estimated number of trainers—HUD-administered states .....................................................................................................................
Estimated number of HUD-administered states ......................................................................................................................................
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1 $135,000
1 6,750
222
5,151
340
1,021
50
15
Federal Register / Vol. 71, No. 114 / Wednesday, June 14, 2006 / Proposed Rules
34483
sroberts on PROD1PC70 with PROPOSALS
Total increase for a single wide—All states ...........................................................................................................................................
17
Total increase for a double wide—All states ..........................................................................................................................................
17
Total increase for a single wide—HUD-administered states .................................................................................................................
974
Total increase for a double wide—HUD-administered states ................................................................................................................
1,023
Total compliance cost per manufacturer—All states .............................................................................................................................
6,672
Total compliance cost per retailer—All states ........................................................................................................................................
186
Total compliance cost per retailer—HUD-administered states ..............................................................................................................
514
Total compliance cost per installer—HUD-administered states ............................................................................................................
6,371
Total compliance cost per trainer—HUD-administered states ..............................................................................................................
2,045
Total compliance cost per state—HUD-administered states ..................................................................................................................
120
Total estimated economic impact ............................................................................................................................................................ 2 9,006,000
1 Consisting of about 30 percent single-section homes and 70 percent multi-section homes.
2 The paperwork component, associated with the reporting and recordkeeping requirements, described above in the Paperwork Reduction
Act section of the preamble, accounts for $3.31 million of the total estimated economic impact.
The overall cost impact for a singlesection home is determined to be
approximately $974 per home, and the
cost impact for a multi-section home is
determined to be about $1,023 per home
in states where HUD administers the
installation program. The cost impact
for single-section and multi-section
homes is determined to be
approximately $17 per home in states
where HUD does not administer the
installation program. Because stateadministered installation programs
would be funded through state
mechanisms, they are not included in
this analysis. State-administered
installation programs would also have
to encompass those elements expressly
required by the Act to be part of a
qualifying program, i.e., standards that
equal or exceed the level of protection
provided by HUD’s model standards,
training and licensing of installers, and
inspection of installations.
Current manufactured home
production is approximately 135,000
homes with approximately 6,750 homes
in states where HUD will administer the
installation program. Of the total
production, approximately 30 percent
consists of single-section homes and 70
percent consists of multi-section homes.
The combined cost impact for all homes
in all states is approximately $9 million
annually.
Based on a current installation cost of
about $5,000 for a single-wide home, the
$974 increase in states where HUD
would administer the installation
program would represent an increase of
approximately 20 percent from the
current cost of installing a single-section
home. Similarly, the current cost of
installing a multi-section home is about
$8,000. Therefore, the cost impact of
$1,023 per multi-section home in states
where HUD would administer the
installation program would represent an
increase of about 13 percent from the
current cost. These estimated costs and
cost impacts represent a significant
economic effect on an industry-wide,
per-home basis. The increase in total
cost associated with this proposed rule
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would have a significant economic
impact on a substantial number of small
entities.
The Department is unaware of any
federal rules that conflict with the
proposed rule. However, the proposed
rule requires duplicative 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). 24 CFR
3282.553 requires each IPIA to provide
the information in the monthly label
reports to the Department. Proposed
§ 3286.9 requires the manufacturer to
provide similar information to the
Department for the purposes of
installation.
In this rule, the Department combined
the reporting requirements in 24 CFR
3282.552 and 3286.9 by revising form
HUD–302 so that the manufacturer must
complete only one form. The proposed
rule seeks specific comments regarding
this issue.
In drafting the proposed rule, HUD
considered numerous alternatives to
reduce the economic impacts on small
entities. Below are the significant
alternatives that were considered:
Section 3286.5(d) Alternative
Considered—The Department
considered eliminating this
requirement. 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.
Section 3286.7(a) Alternative
Considered—The Department
considered eliminating this
requirement. However, the importance
of consumer protection with regard to
reinstalled homes justifies the costs
associated with this section.
Section 3286.7(b) Alternative
Considered—The Department
considered eliminating this
requirement. However, the importance
of consumer protection during the
PO 00000
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Fmt 4701
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purchase or lease of a manufactured
home justifies the costs associated with
this section.
Section 3286.9(a) Alternative
Considered—The Department
considered requiring manufacturers to
provide the initial tracking information
about homes installed in only those
states in which HUD administers the
installation program. Such a
requirement would reduce the reporting
burden on the manufacturers; however,
in many instances, manufacturers do
not know the destination or address of
the home at the time of shipment.
Therefore, it is not practical to collect
information on homes being installed in
HUD-administered states only. In
addition, this information is very
similar to that information required in
24 CFR 3282.552, and the OMBapproved form HUD–302 has been
revised to collect the information using
a single form.
Section 3286.9(c) Alternative
Considered—The Department
considered requiring manufacturers to
provide notice to the retailers only for
those homes installed in states where
HUD administers the installation
program. Such a requirement would
reduce the reporting burden on the
manufacturer; however, in many
instances, manufacturers do not know
the destination or address of the home
at the time of shipment. Therefore, it is
not practical to provide notices on
homes being installed in HUDadministered states only.
Section 3286.9(d) Alternative
Considered—The Department
considered eliminating this
requirement. However, the importance
of consumer protection with regard to
the installation of manufactured homes
justifies the small costs associated with
this section.
Section 3286.13 Alternative
Considered—The Department
considered requiring the retailer or
distributor to provide HUD with
tracking information for all homes at the
time that a purchaser or lessor enters
into a contract to purchase or lease a
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Federal Register / Vol. 71, No. 114 / Wednesday, June 14, 2006 / Proposed Rules
manufactured home. As proposed, the
rule would significantly reduce the
reporting burden for retailers and
distributors by requiring them to
provide tracking information about
homes that are to be installed only in
HUD-administered states, and by
requiring them to keep all sales records
for 5 years.
Section 3286.103(a) Alternative
Considered—The Department
considered eliminating this
requirement. However, the importance
of consumer protection with regard to
the installation of manufactured homes
justifies the costs associated with this
section.
Section 3286.111(a) Alternative
Considered—The Department
considered using contractors to inspect
and certify that the installation of the
home has been completed correctly.
This alternative model would be similar
to that of a local building department
that monitors the construction of
buildings. However, this alternative
method would have a substantially
larger economic impact on small entities
than the proposed requirement. The
proposed requirements in § 3286.111(a)
models the requirements in 24 CFR
3282.362(c)(2)(i) that requires the home
manufacturer to certify that the home
has been built in conformance with the
Construction and Safety Standards.
Section 3286.113(a) Alternative
Considered—The Department
considered eliminating this
requirement. However, the Department
determined that this requirement is
necessary to keep necessary records
regarding the installation of the home.
This section will encourage retailers to
use competent installers and keep the
retailer part of the installation process.
Without this requirement, the retailer
would be able to sell homes and take
fees for the installation of the homes
without being held accountable by the
regulations for poor workmanship of the
installation.
Section 3286.211 Alternative
Considered—Installers are required to
renew their licenses every 3 years. This
schedule was chosen to reduce the
burden of yearly renewals and to ensure
that installers will receive timely
training on updates to the installation
requirements.
Subpart D Alternatives Considered—
Subpart D establishes the minimum
requirements for a person to provide
installation training. The installation
training is required for manufactured
home installers who want to be licensed
in accordance with the HUDadministered installation program.
This Subpart requires qualified
trainers to:
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—Adequately address the curriculum
and instruction time requirements
—Maintain attendance records
—Provide certificates of completion
—Maintain records for 5 years
—Meet minimum experience
prerequisites
—Certify that their curriculum meets
HUD requirements
—Apply to HUD for qualification
The Department considered requiring
trainers to obtain training from the
Department prior to qualification;
however, this requirement would have
an increased cost to the trainer and the
federal government. In addition, this
requirement may limit the number of
eligible trainers since all trainers would
have to complete training prior to
training installers.
Notwithstanding HUD’s
determination that this rule would have
a significant economic effect on a
substantial number of small entities,
HUD specifically invites comments
regarding any less burdensome
alternatives to this rule that will meet
HUD’s objectives and those of federal
statutes. The complete IRFA is available
for downloading at http://
www.regulations.gov and 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.
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.
Accordingly, for the reasons stated in
the preamble, HUD proposes to add 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.
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3286.13 Tracking of homes sold by retailer
or distributor.
3286.15 Waiver of rights invalid.
3286.17 Consultation with the
Manufactured Housing Consensus
Committee
Subpart B—Certification of Installation in
HUD-Administered States
3286.101 Purpose.
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 HUDAdministered 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 HUDAdministered 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 Site 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.
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3286.605
3286.607
After sale.
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
home program requirements.
3286.813 Inclusion in state plan.
§ 3286.3
Authority: 42 U.S.C. 3535(d), 5404, and
5424.
Subpart A—Generally Applicable
Provisions and Requirements
§ 3286.1
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.
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§ 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
§ 3282.12 of this chapter;
(2) Temporary housing units provided
under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act
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(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 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.
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
§ 3282.111, 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.
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 means drawings,
specifications, sketches and the related
engineering calculations, tests, and data
in support of the configurations,
structures, and systems to be
incorporated in manufactured homes
manufactured in a plant.
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 work done to
stabilize, support, or anchor a
manufactured home or to join sections
of a multi-section manufactured home,
when any such work is governed by the
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34485
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 instructions means a
manufacturer’s DAPIA-approved set of
specifications to assure that a
manufactured home is set up in
accordance with the applicable
installation standards, as are required
under part 3285 of this chapter.
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 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 any person who leases
a manufactured home prior to the first
purchase of the home in good faith for
purposes other than resale.
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 § 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.
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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 § 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
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as qualified to provide training to
installers for purposes of the HUDadministered 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).
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.
Setup means any assembly or
installation of a manufactured home onsite 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.
§ 3286.5
Overview of installation program.
(a) Tracking homes. Each
manufactured home will be tracked
from its initial shipment to at least its
sale to a purchaser.
(b) State installation programs. States
that have qualifying 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) Installer requirements. Installers in
states where HUD administers an
installation program under this part will
be required to meet licensing, training,
and insurance requirements established
in subparts C, D, and E of this part.
Licensed installers in the HUDadministered program will self-certify
their installations of manufactured
homes to be in compliance with the
federal 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.
Additional tracking information on the
shipment and installation of these
homes will be provided to HUD by the
manufacturers and retailers.
(d) Manufacturer and retailer
requirements. (1) Manufacturers and
retailers are responsible for compliance
of the home with the construction and
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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 temporarily,
pending the first siting 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 in part 3280 of this
chapter if the home or its sections is
stored on such supports for more than
30 days.
(e) 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.
§ 3286.7
Consumer information.
(a) Manufacturer’s consumer manual.
In each consumer manual provided by
a manufacturer as required in
§ 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. Before a purchaser or lessee buys
or leases a manufactured home, the
retailer must provide the purchaser or
lessee with a consumer disclosure. This
disclosure may be in a separate
document from the sales or leasing
contract or may be incorporated, in
whole or in part, clearly in a separate
section on consumer installation
information at the top of the sales or
lease contract. The disclosure must
include the following information, as
applicable:
(1) When the home is to be sited 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 state requirements for the
installation of the home;
(2) When the home is to be sited 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 for
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the installation of the home, 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 might also
be required to comply with additional
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 (HUD);
(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.
sroberts on PROD1PC70 with PROPOSALS
§ 3286.9 Manufacturer shipment
responsibilities.
(a) Providing information to HUD.
Except as provided in paragraph (b) of
this section, at or before the time that
each manufactured home is shipped by
a manufacturer, the manufacturer must
provide HUD with information, as
applicable, about:
(1) The serial number and
manufacturer’s certification label
number of the home;
(2) The manufacturer of the home;
(3) The name and address of the
retailer or distributor that has arranged
for the home to be shipped, and the
retailer’s identification number; and
(4) Where different from the retailer’s
or distributor’s address, the location to
which the home is being shipped and
the purchaser’s name.
(b) Method of providing information.
(1) The manufacturer must provide this
information by either:
(i) Entering the data into an Internetbased tracking system established by
HUD; or
(ii) Providing a copy of the
information to HUD by facsimile, email, first-class, or overnight delivery.
(2) If the information is provided to
HUD by facsimile, e-mail, first-class, or
overnight delivery, the manufacturer
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must send the information to HUD no
later than 10 business days after the date
the manufactured home is shipped by
the manufacturer. 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 an
alternative address, fax number, or email address obtained by calling the
Office of Manufactured Housing
Programs. For convenience only, the
URL of the Web site is www.hud.gov/
offices/hsg/sfh/mhs/mhshome.cfm and
the toll-free telephone number to
contact the Office of Manufactured
Housing Programs is (800) 927–2891,
ext. 57.
(c) 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 § 3286.13.
Such notice must include at least all of
the information required in paragraph
(a) of this section. The manufacturer is
also encouraged to provide notice to the
retailer that reminds the retailer of its
other responsibilities under this part.
(d) 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 reviewed
and approved by the manufacturer and
either its DAPIA or the Secretary; or
(2) 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 federal installation
standards in part 3285 of this chapter.
§ 3286.11
Temporary storage of units.
Pursuant to § 3286.5(d), the
manufacturer is required to provide
instructions for the temporary support
of its manufactured homes or sections of
homes. Every manufacturer, distributor,
and retailer is required to support each
transportable section of a manufactured
home that is temporarily or permanently
located on a site used by the
manufacturer, distributor, or retailer in
accordance with the manufacturer’s
instructions.
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§ 3286.13 Tracking of homes sold by
retailer or distributor.
(a) Record retention requirements in
all states. The retailer or distributor
must maintain a copy of a sales or lease
record for each home sold or leased to
a purchaser for 5 years from the date of
sale under § 3286.117(a). The sales or
lease record must contain 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, and the retailer’s
identification number;
(3) The state and address where the
home is to be sited, and, if known, the
name of the local jurisdiction;
(4) The name of the purchaser or
lessee of the home.
(b) Tracking information in HUDadministered states. At the time that a
purchaser or lessor enters into a contract
to purchase or lease a manufactured
home to be sited in a state in which
HUD administers its installation
program, the retailer or distributor of the
home must provide HUD with the
information set forth in paragraph (a) of
this section.
(c) Method of providing information.
(1) When required, the retailer or
distributor must provide the
information in paragraph (a) of this
section by either:
(i) Entering the data into an Internetbased tracking system established by
HUD; or
(ii) Providing a copy of the
information to HUD by facsimile, email, first-class, or overnight delivery.
(2) If the information is provided to
HUD by facsimile, e-mail, first-class, or
overnight delivery, the retailer or
distributor must send the information
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 current URL of the Web site is
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
(800) 927–2891, ext. 57.
(d) Compliance with HUDadministered installation program. A
retailer or distributor that sells or leases
a home to be sited in a state in which
HUD administers an installation
program under this part must also
comply with the applicable
requirements set forth in subparts B
through G of this part. Any person can
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identify the states in which HUD
administers an installation program
under this part by referring to a list on
a website maintained by HUD or by
calling HUD. For convenience only, the
current URL of the Web site is
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 (800) 927–2891, ext. 57.
§ 3286.15
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 statequalifying installation program is void.
§ 3286.17 Consultation with the
Manufactured Housing Consensus
Committee.
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 an
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
Procedures 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 supercede section 605
of the National Manufactured Housing
Construction and Safety Standards Act
(42 U.S.C. 5404).
Subpart B—Certification of Installation
in HUD-Administered States
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§ 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.
§ 3286.103 DAPIA-approved installation
instructions.
(a) Providing instructions to
purchaser. For each manufactured home
sold to a purchaser, the retailer must
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ensure that the purchaser is provided
with a copy of either:
(1) The manufacturer’s DAPIAapproved 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 and that have
been reviewed and 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 federal installation
standards in part 3285 of this chapter.
(b) Providing instructions to installer.
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 sole proprietor, to each
individual who performs set-up or
installation work on the home.
§ 3286.105
licensing.
Requirement for installer
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.
§ 3286.107 Installation in accordance with
standards.
(a) Compliance with installation
standards. (1) A manufactured home
that is subject to the requirements of
this subpart B must be installed in
accordance with, at a minimum, the
installation standards set forth in part
3285 of this chapter. If the
manufacturer’s installation instructions
do not comply with such installation
standards, the manufacturer is
responsible for any aspect of installation
that is completed in accordance with its
instructions and that does not comply
with the installation standards.
(2) For purposes of determining
installer compliance with this paragraph
(a), an installer will be deemed to have
installed a manufactured home as
required if the home is installed in
accordance with installation design and
instructions that are:
(i) Provided by the manufacturer and
are either:
(A) Approved by the DAPIA; or
(B) Determined by the Secretary to
provide protection to residents of
manufactured homes that equals or
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exceeds the protection provided by the
HUD federal installation standards in
part 3285 of this chapter; or
(ii) 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
federal installation standards in part
3285 of this chapter.
(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.
(b) Secretarial approval of
manufacturer’s designs. A manufacturer
that seeks a Secretarial determination
under paragraph (a)(2)(i)(B) 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 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.
(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 inspected as required
under this part and a licensed installer
certifies the installation in accordance
with § 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.
§ 3286.109
generally.
Inspection requirements—
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
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qualifying installation program. 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 § 3286.107(a).
The requirements for installer
certification are set out in subpart E of
this part.
§ 3286.111 Installer certification of
installation.
(a) Certification required. When the
installation work is complete, an
installer must certify that:
(1) 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 federal installation
standards in part 3285 of this chapter;
and
(2) The installation of the home has
been inspected as required by
§ 3286.503 and an inspector has verified
the installation as meeting the
requirements of this part.
(b) Recipients of certification. 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.
sroberts on PROD1PC70 with PROPOSALS
§ 3286.113
retailer.
Information provided by
(a) Installation information required.
In addition to the information required
to be provided by all retailers or
distributors by § 3286.13 and upon
receiving the installer’s original
certification of installation pursuant to
§ 3286.111, the retailer must provide
HUD with:
(1) The name, address, and telephone
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;
(4) The name, address, and telephone
number of the qualified inspector who
performed the inspection of the
installation as required by § 3286.109;
and
(5) The type of support, anchoring, or
foundation system that is being used in
the installation of the home, if known.
(b) Method of providing information.
(1) The retailer or distributor must
provide the information set forth in
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paragraphs (a) and (b) of this section as
soon as practical by either:
(i) Entering the data into an Internetbased tracking system established by
HUD; or
(ii) Providing a copy of the
information to HUD by facsimile, email,
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 email
address obtained by calling the Office of
Manufactured Housing Programs. For
convenience only, the URL of the
website is www.hud.gov/offices/hsg/sfh/
mhs/mhshome.cfm and the toll-free
telephone number to contact the Office
of Manufactured Housing Programs is
(800) 927–2891, ext. 57.
(c) Correcting information. If the
information provided by the retailer
changes after it has been entered into
the tracking system or provided to HUD,
the retailer must correct the information
within 10 business days after the retailer
learns of the change.
§ 3286.115
Date of installation.
For purposes relating to the HUD
dispute resolution program established
in part 3288 of this chapter, the date of
installation will be the date 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.
§ 3286.117
Completion of sale date.
(a) Date of sale defined. For purposes
relating only to determining violations
of the procedural and enforcement
regulations for the construction and
safety standards, the date the sale of a
manufactured home will be considered
complete will be the later of:
(1) The date of the retailer’s
concurrence under § 3286.113; or
(2) The date that the purchaser
receives a copy of the installer’s
completed certification, as set forth in
§ 3286.111.
(b) Compliance with construction and
safety standards. If 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, the sale or
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lease of the home may not be completed
until the home is corrected.
Subpart C—Installer Licensing in HUDAdministered States
§ 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 HUDadministered installation program.
§ 3286.203
Installation license required.
(a) Installation license required. (1)
Any individual or company 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 the
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 covered by the licensed
installer’s or employer’s general liability
insurance and are supervised by a
licensed installer.
(4) The installer must display an
original or copy of a valid installation
license at the site of the installation at
all times until the installer certifies the
installation as required in § 3286.411.
(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 as providing a level of
protection for occupants 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:
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(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 § 3282.8(j);
(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 non-installationrelated 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.
sroberts on PROD1PC70 with PROPOSALS
§ 3286.205
license.
Prerequisites for installation
(a) Required experience. (1) In order
to obtain an installation license to
perform manufactured home
installations under the HUDadministered 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)(5)(v) 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
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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 for
a period of one year from the effective
date of this rule.
(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
§§ 3286.308 or 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) Liability insurance. An applicant
for an installation license must provide
evidence of, and must maintain, general
liability insurance in the amount of at
least $1 million. HUD may require the
licensed installer to provide proof of
insurance at any time. The licensed
installer must notify HUD of any
changes or cancellations in liability
insurance coverage.
§ 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
Housing Programs, HUD, 451 Seventh
Street, SW, Room 9164, Washington, DC
20410–8000, or to a fax number or email
address obtained by calling the Office of
Manufactured Housing Programs. For
convenience only, the current URL of
the website is 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 (800) 927–2891, ext. 57.
(b) Proof of experience. Every
applicant for an initial installation
license must submit verification of the
experience required in § 3286.205(a).
This verification may be in the form of
statements by past or present employers
or a self-certification that the applicant
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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
§ 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 §§ 3286.308 or
3286.309.
(d) Proof of insurance. Every
applicant for an installation license
must submit the name of the applicant’s
general liability insurance carrier and
the number of the policy required in
§ 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
§ 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
§ 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.
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(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.
sroberts on PROD1PC70 with PROPOSALS
§ 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 HUD;
(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
§ 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
§ 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
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denied for any cause other than failure
to pay a renewal fee;
(vi) Failure to maintain the insurance
required by § 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.
§ 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 § 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
§ 3286.301
Purpose.
The purpose of this subpart D 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.
§ 3286.303
trainers.
Responsibilities of qualified
(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
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34491
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 5 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 § 3286.205(c).
§ 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 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 constructionrelated 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
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subpart D will meet the curriculum
requirements established in § 3286.309.
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§ 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 email
address obtained by calling the Office of
Manufactured Housing Programs. For
convenience only, the URL of the
website is www.hud.gov/offices/hsg/sfh/
mhs/mhshome.cfm, and the toll-free
telephone number to contact the Office
of Manufactured Housing Programs is
(800) 927–2891 ext. 57.
(b) Proof of experience. (1) Every
individual applicant for initial
qualification as a trainer must submit
verification of the experience required
in § 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 § 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 certification that training provided
in accordance with this subpart D will
meet the curriculum requirements
established in §§ 3286.308 or 3286.309,
as applicable.
(d) Confirmation or denial of
qualification. (1) When HUD confirms
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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 § 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.
§ 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 HUDadministered 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:
(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) Pre-installation 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;
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(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.
§ 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
§ 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.
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§ 3286.311 Suspension or revocation of
trainer’s qualification.
subpart D for application for initial
qualification as an installation trainer.
(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.
sroberts on PROD1PC70 with PROPOSALS
§ 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 § 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
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Subpart E—Installer Responsibilities
of Installation in HUD-Administered
States
§ 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 HUDadministered installation program.
§ 3286.403
Licensing requirements.
An installer of manufactured homes
must comply with the licensing
requirements set forth in subpart C of
this part.
§ 3286.405
Site suitability.
(a) Site appropriateness. Before
installing a manufactured home, the
installer must:
(1) Verify that the site is accessible;
(2) Verify that 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) Verify, by checking the data plate
required by § 3280.5 of this chapter to
be 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) Verify that the installation site is
protected from surface run-off and can
be graded in accordance with part 3285.
(b) Notification of inappropriate site.
If the installer determines that the 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;
(2) Notify the retailer that contracted
with the purchaser for the sale of the
home; and
(3) 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.
§ 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.
§ 3286.409
Obtaining inspection.
(a) Inspection obligations. Within 5
business days of the completion of
installation work, the installer must
arrange for a third-party inspection in
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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. The
inspection must be performed by an
inspector who meets the qualifications
set forth in § 3286.511.
(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.
(d) Completion of sale. 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:
(1) Following the procedures
established in § 3286.507, a qualified
inspector approves the home as having
been installed in conformance with part
3285 of this chapter; and
(2) The installer certifies the
installation as set forth in § 3286.111.
§ 3286.411
Certifying installation.
(a) Certification required. Upon
completion of the installation work, a
licensed installer must visit the job site
and certify that:
(1) It has installed the manufactured
home 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 federal installation
standards in part 3285 of this chapter;
and
(2) The installation of the home has
been inspected as required by this part.
(b) Recipients of certification. The
installer must provide its original
certification to the retailer, and must
provide a copy of the certification to the
purchaser.
(c) Retailer to update records. Upon
receiving the installer’s original
certification of installation, the retailer
must enter the following additional
information into the retailer’s records on
the home:
(1) The date of installer certification
of completion of the installation;
(2) The date a qualified inspector
approved the installation as being in
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compliance with the requirements of
this part; and
(3) The name, address, and telephone
number of the qualified inspector who
performed the inspection of the
installation.
§ 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.
(b) Retention requirement. The
records listed in paragraph (a) of this
section must be maintained for a period
of 5 years after the installer certifies
completion of installation.
Subpart F—Inspection of Installations
in HUD-Administered States
§ 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 approved by the inspector and
certified by the installer under the HUDadministered installation program.
sroberts on PROD1PC70 with PROPOSALS
§ 3286.503
Inspection required.
(a) Timing of requirements. Within 5
business days of the completion of the
installation of each manufactured home,
the installer must arrange for a thirdparty 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 § 3286.511.
The scope of the inspections that are
required to be performed is addressed in
§ 3286.505.
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(b) Disclosure of requirement. At the
time of sale, the retailer must disclose
to the purchaser, in a manner provided
in § 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.
§ 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 all permits
needed to place the manufactured home
on the site have been obtained, and that
each of the following elements complies
with the 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;
(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.
§ 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 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
§ 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 § 3286.413.
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§ 3286.509
pass.
Reinspection upon failure to
(a) Procedures for failed inspection. If
the inspector cannot verify the
installation of the manufactured home,
the inspector must immediately notify
the installer and explain the reasons
why the installer 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.
§ 3286.511
Inspector qualifications.
(a) Qualifications. Any individual
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 HUDadministered 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; or
(4) A HUD-accepted Production
Inspection Primary Inspection Agency
(IPIA) or a Design Approval Primary
Inspection Agency (DAPIA).
(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 HUDadministered 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
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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 the Administrator of HUD’s
Office of Manufactured Housing
Programs.
Subpart G—Retailer Responsibilities in
HUD-Administered States
§ 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.
sroberts on PROD1PC70 with PROPOSALS
§ 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 § 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 § 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.
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§ 3286.605
After sale.
(a) Tracking installation information.
The retailer is responsible for providing
to HUD the information required
pursuant to §§ 3286.13 and 3286.113.
(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.
§ 3286.607
Recordkeeping.
The retailer is responsible for the
reporting and recordkeeping
requirements under §§ 3286.13,
3286.113, and 3286.411, as applicable.
Subpart H—Oversight and
Enforcement in HUD-Administered
States
§ 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,
and the requirements in subparts B
through G of this part are applicable in
states where the HUD-administered
installation program operates. 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, in
order to oversee the system established
by the regulations in this part, HUD may
take any actions authorized by the Act.
§ 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 §§ 3282.152 through
3282.154 of this chapter shall apply to
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34495
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.
§ 3286.705 Applicability of dispute
resolution program.
(a) Generally. Regardless of any action
taken under § 3286.703, for any defect
in a manufactured home that is reported
during the one-year period beginning on
the date of installation, 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 the HUD or a state
dispute resolution program is void.
Subpart I—State Programs
§ 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
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 HUDadministered installation program.
§ 3286.803
programs.
State qualifying installation
(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.
(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
§ 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;
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(4) Inspection of the initial
installations of new manufactured
homes in the state; 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) 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 HUDadministered 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.
sroberts on PROD1PC70 with PROPOSALS
§ 3286.805 Procedures for identification as
qualified installation program.
(a) Submission of certification. (1) A
state seeking identification as a
qualified installation program must
submit a completed State Installation
Program Certification form to the
Secretary for review and acceptance.
(2) On or after December 27, 2006, a
state must include a qualified
installation program as part of any State
Plan Application submitted for approval
under § 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
approved in accordance with § 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
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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 120 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 60-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.
§ 3286.807
Recertification required.
(a) Recertification. To maintain its
status as a qualified installation
program, a state must submit a new
State Installation Program Certification
form to the Secretary for review and
action as follows:
(1) Every 3 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 § 3286.803(b),
regardless of when the state’s next
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regular recertification of its installation
program would be due.
(b) Due date of recertification. (1) A
state’s recertification must be filed
within 90 days of, as applicable:
(i) The 3-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) Effect of recertification failure. (1)
A state whose certification of its
installation program 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.
§ 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 HUDadministered installation program will
begin to operate in such state at such
time as the Secretary establishes in
issuing the finding.
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§ 3286.811 Effect on other manufactured
housing program requirements.
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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 any other
aspect of HUD’s manufactured housing
program. Regardless of whether a state
has a qualified installation program:
(a) Construction and safety standards.
Any responsibilities, rights, and
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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, any
responsibilities, rights, and remedies
applicable under the HUD dispute
resolution program as implemented in
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part 3288 of this chapter continue to
apply as provided in that part.
§ 3286.813
Inclusion in state plan.
If a state installation program is
included in a state plan approved in
accordance with § 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: May 23, 2006.
Brian D. Montgomery,
Assistant Secretary for Housing-Federal
Housing Commissioner.
BILLING CODE 4210–67–P
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[FR Doc. 06–5389 Filed 6–9–06; 1:27 pm]
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| File Type | application/pdf |
| File Title | Document |
| Subject | Extracted Pages |
| Author | U.S. Government Printing Office |
| File Modified | 2006-06-14 |
| File Created | 2006-06-14 |