24 CFR Part 3288

§ 3286.809

24 CFR Ch. XX (4–1–16 Edition)

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 HUD-administered 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.
A state with a qualifying installation
program will operate in lieu of HUD
with respect to only the installation
program established under subparts B
through H of this part. No state may
permit its installation program, even if
it is a qualified installation program
under this part, to supersede the requirements applicable to HUD’s Manufactured Housing Construction and
Safety Standards and enforcement programs. Regardless of whether a state
has a qualified installation program:
(a) Construction and safety standards.
Any responsibilities, rights, and remedies applicable under the Manufactured Home Construction and Safety
Standards Act in part 3280 of this chapter and the Manufactured Home Procedural and Enforcement Regulations in
part 3282 of this chapter continue to
apply as provided in those parts; and

(b) Dispute resolution. For any defect
in a manufactured home that is reported during the one-year period beginning on the date of installation defined in § 3286.115, any responsibilities,
rights, and remedies applicable under
the HUD dispute resolution program as
implemented in part 3288 of this chapter continue to apply as provided in
that part.
§ 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.

PART
3288—MANUFACTURED
HOME DISPUTE RESOLUTION PROGRAM
Subpart A—General
Sec.
3288.1
3288.3
3288.5

Purpose and scope.
Definitions.
Retailer notification at sale.

Subpart B—HUD Manufactured Home Dispute Resolution Program in HUD-Administered States
3288.10 Applicability.
3288.15 Eligibility for dispute resolution.
3288.20 Reporting a defect.
3288.25 Initiation of dispute resolution.
3288.30 Screening of dispute resolution request.
3288.33 Notice of dispute resolution.
3288.35 Mediation.
3288.40 Nonbinding arbitration.
3288.45 HUD review and order.

Subpart C—Alternative Process in HUDAdministered States
3288.100 Scope and applicability.
3288.105 Time when Alternative Process is
available.
3288.110 Alternative Process agreements.

Subpart D—State Dispute Resolution
Programs in Non-HUD-Administered States
3288.200 Applicability.
3288.205 Minimum requirements.
3288.210 Acceptance
and
recertification
process.
3288.215 Effect on other manufactured home
program requirements.

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Office of Asst. Sec. for Housing, HUD

§ 3288.3

Subpart E—Dispute Resolution Program
Rulemaking Procedures

provisions applicable to HUD’s implementation of a dispute resolution program as required by the Act. Subpart B
of this part establishes the HUD Manufactured Home Dispute Resolution Program that HUD will administer in any
state that does not establish a program
that complies with the Act and been
accepted by HUD as provided in subpart D of this part. Subpart C of this
part provides an Alternative Process
for manufacturers, retailers, and installers who agree that a homeowner is
not responsible for the alleged defect
to resolve their disputes about responsibility for correction or repair outside
of the HUD Mediation and Arbitration
Process under subpart B. Subpart D of
this part establishes the minimum requirements that must be met by a
state applying to implement its own
dispute resolution program that complies with the Act, and the procedure
for determining whether the requirements for complying have been met.
Subpart E of this part establishes special rulemaking procedures that apply
to the issuance of new regulations that
implement the dispute resolution requirements set forth in section 623 of
the Act (42 U.S.C. 5422).
(2) Warranties not affected. This part
is not a warranty program and the requirements established in this part do
not replace the manufacturer’s or any
other warranty program. Such warranty program may have its own requirements.

3288.300 Applicability.
3288.305 Consultation with the Manufactured Housing Consensus Committee.
AUTHORITY: 42 U.S.C. 3535(d), 5422 and 5424.
SOURCE: 72 FR 27229, May 14, 2007, unless
otherwise noted.

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Subpart A—General
§ 3288.1 Purpose and scope.
(a) Purpose. The Act is intended, in
part, to protect the quality, safety, durability, and affordability of manufactured homes. Section 623(c)(12) of the
Act (42 U.S.C. 5422 (c)(12)) requires the
implementation of ‘‘a dispute resolution program for the timely resolution
of disputes between manufacturers, retailers, and installers of manufactured
homes regarding responsibility, and for
the issuance of appropriate orders, for
the correction or repair of defects in
manufactured homes that are reported
during the 1-year period beginning on
the date of installation.’’ The purpose
of this part is to provide a dispute resolution program for the timely resolution of disputes among manufacturers,
retailers, and installers regarding the
responsibility for correction or repair
of defects reported by the homeowner
or others and reported in the 1-year period after the first installation of the
manufactured home.
(b) Scope—(1) Applicability. In carrying out this purpose, it is presumed
that if a manufactured home contains
an alleged defect that is reported in the
first year after installation and was
not caused by the homeowner, then the
manufacturer, retailer, or installer is
responsible for the alleged defect and
the dispute resolution process recognized in this part is an appropriate
means for resolving disputes about responsibility for correction and repair of
the alleged defect. For purposes of the
dispute resolution process recognized
in this part, only alleged defects reported in the first year after the first
installation are covered by the process.
The state where the home is sited determines whether the HUD Manufactured Home Dispute Resolution Program or a state program applies. Subpart A of this part establishes general

§ 3288.3

Definitions.

The following definitions apply in
this part:
Act means the National Manufactured Housing Construction and Safety
Standards Act of 1974, 42 U.S.C. 5401–
5426.
Appropriate order means an order
issued by HUD or an order that is enforceable under state law.
Date of installation means 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

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§ 3288.5

24 CFR Ch. XX (4–1–16 Edition)

is ready for occupancy, the date of installation is the date of closing under
the purchase agreement or sales contract for the manufactured home.
Day means a calendar day.
Defect means any defect in the performance, construction, components,
or material of a manufactured home
that renders the home or any part of
the home not fit for the ordinary use
for which it was intended, including,
but not limited to, a defect in the construction, safety, or installation of the
home. For purposes of state certification under § 3288.205, HUD will find it
acceptable if the threshold for the
state’s program is functionally equivalent to this definition.
Dispute resolution provider means a
person or entity providing dispute resolution services for HUD.
Homeowner means a person who purchased or leased the manufactured
home in good faith for purposes other
than resale.
HUD means the U.S. Department of
Housing and Urban Development.
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.
Manufactured home has the same
meaning as the term ‘‘manufactured
home’’ as defined in 24 CFR 3280.2.
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).
Party or parties means, individually
or collectively, the manufacturer, retailer, or installer of a manufactured
home in which a defect has been reported in accordance with § 3288.20.
State Administrative Agency means an
agency of a state that has been approved or conditionally approved to
carry out the state plan for enforcement of the standards pursuant to section 623 of the Act, 42 U.S.C. 5422.
Timely reporting means the reporting
of an alleged defect within 1 year after
the date of installation of a manufactured home in accordance with § 3288.20.
Timely resolution means the resolution of disputes among manufacturers,
retailers, and installers within 120 days
of the time a request for dispute reso-

lution is made, except that if the defect
presents an unreasonable risk of injury, death, or significant loss or damage to valuable personal property, the
resolution must be within 60 days of
the time a request for dispute resolution is made.
§ 3288.5

Retailer notification at sale.

Retailer notice at the time of signing. At
the time of signing a contract for sale
or lease for a manufactured home, the
retailer must provide the purchaser
with a retailer notice. This notice may
be in a separate document from the
sales contract or may be incorporated
clearly in a separate section on consumer dispute resolution information
at the top of the sales contract. The
notice must include the following language:
The U.S. Department of Housing and Urban
Development (HUD) Manufactured Home
Dispute Resolution Program is available to
resolve disputes among manufacturers, retailers, or installers concerning defects in
manufactured homes. Many states also have
a consumer assistance or dispute resolution
program. For additional information about
these programs, see sections titled ‘‘Dispute
Resolution Process’’ and ‘‘Additional Information—HUD Manufactured Home Dispute
Resolution Program’’ in the Consumer Manual required to be provided to the purchaser.
These programs are not warranty programs
and do not replace the manufacturer’s, or
any other person’s, warranty program.

Subpart B—HUD Manufactured
Home Dispute Resolution Program in HUD-Administered
States
§ 3288.10

Applicability.

The requirements of the HUD Manufactured Home Dispute Resolution Program established in this subpart B
apply in each state that does not establish a state dispute resolution program
that complies with the Act and has
been accepted by HUD as provided in
subpart D of this part.
§ 3288.15
tion.

Eligibility for dispute resolu-

(a) Initiation of actions. Manufacturers, retailers, and installers of manufactured homes are eligible to initiate

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Office of Asst. Sec. for Housing, HUD

§ 3288.25

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and participate in the HUD Manufactured Home Dispute Resolution Program. Homeowners may initiate action
under, and be observers to, the HUD
Manufactured Home Dispute Resolution Program.
(b) Eligible disputes. Only disputes
concerning alleged defects that have
been reported to the manufacturer, retailer, installer, HUD, or a State Administrative Agency within 1 year
after the date of the first installation
of the manufactured home are eligible
for resolution through the HUD Manufactured Home Dispute Resolution Program. The eligible dispute includes the
defect alleged in a timely report and
any related issues.
§ 3288.20 Reporting a defect.
(a) Making a report. To preserve the
right to request dispute resolution
through HUD, alleged defects must be
reported to the manufacturer, retailer,
installer, HUD, or a State Administrative Agency. An alleged defect may be
reported by a homeowner, manufacturer, retailer, or installer.
(b) Form of report. It is recommended
that alleged defects be reported in
writing, including, but not limited to,
e-mail, written letter, certified mail,
or fax. The existence of an alleged defect may also be reported by telephone.
(c) Content of report. No particular
form or format is required to report an
alleged defect, but any such report
must, at a minimum, include a description of the alleged defect, the name of
homeowner, and the address of the
home.
(d) Record of report—(1) To evidence
timeliness. To establish timely reporting, the report of an alleged defect that
is made to the manufacturer, retailer,
installer, or a State Administrative
Agency of the manufactured home
should be done in a manner that will
create a dated record of the report that
demonstrates that the report was made
within 1 year after the date of installation; for example, by certified mail,
fax, or email. Persons who report an alleged defect by telephone should make
a contemporaneous note of the telephone call, including date, time, the
name of the person who received the
report, the name of the business contacted, and the telephone number

called. If the matter goes to arbitration, the arbitrator and HUD will review whether there is sufficient evidence to believe the report was made
on a timely basis.
(2) Obligation to retain. Each report of
a defect, including logs of telephonic
complaints, received by a manufacturer, retailer, a State Administrative
Agency or installer, must be maintained for 3 years from the date of receipt.
(e) Reports made to a State Administrative Agency. Reports of defects in the
manufactured home that are made in
the first year after its installation can
be sent to the appropriate State Administrative Agency. Contact information about a State Administrative
Agency
is
available
at
http://
www.hud.gov. Contact the appropriate
State Administrative Agency to determine the method for making the report.
(f) Reports made to HUD. Reports of
alleged defects in the manufactured
home that are made in the first year
after its installation can be sent to
HUD. The report to HUD may be made
using any of the following methods:
(1) In writing at: HUD, Office of Regulatory Affairs and Manufactured
Housing, Attn: Dispute Resolution, 451
Seventh Street, SW., Washington, DC
20410–8000;
(2) By telephone at: (202) 708–6423 or
(800) 927–2891;
(3) By fax at: (202) 708–4213; or
(4) By e-mail at [email protected].
(g) Effect of report. The reporting of
an alleged defect does not initiate the
HUD Manufactured Home Dispute Resolution Program, but only establishes
whether the requirement of timely reporting in accordance with § 3288.15(b)
has been met. The HUD Manufactured
Home Dispute Resolution Process is
initiated when a request for dispute
resolution is submitted to HUD in accordance with § 3288.25.
§ 3288.25
tion.

Initiation of dispute resolu-

(a) Preliminary effort. HUD strongly
encourages the homeowner or party reporting an alleged defect to seek to resolve the dispute directly with any
manufacturer, retailer, or installer

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§ 3288.30

24 CFR Ch. XX (4–1–16 Edition)

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that the person reporting the defect believes to be responsible before initiating the HUD dispute resolution process.
(b) Request for dispute resolution. Any
of the parties or the homeowner may
initiate the HUD Manufactured Home
Dispute Resolution Program at any
time after an alleged defect has been
reported, by requesting dispute resolution, as follows:
(1) By mailing, e-mailing, or otherwise delivering a written request for
dispute resolution to the dispute resolution provider at the address or e-mail
address provided either at http://
www.hud.gov, or by contacting HUD’s
Office of Regulatory Affairs and Manufactured Housing at (202) 708–6423 or
(800) 927–2891;
(2) By faxing a request for dispute
resolution to the fax number provided
either at http://www.hud.gov, or by contacting HUD’s Office of Regulatory Affairs and Manufactured Housing at
(202) 708–6423 or (800) 927–2891; or
(3) By telephoning a request for dispute resolution to the number provided
either at http://www.hud.gov, or by contacting HUD’s Office of Regulatory Affairs and Manufactured Housing at
(202) 708–6423 or (800) 927–2891.
(c) Requested information. The dispute
resolution provider will request at
least the following information when a
person seeks to initiate dispute resolution under the HUD Manufactured
Home Dispute Resolution Program:
(1) The name, address, and contact
information of the homeowner;
(2) The name and contact information of the manufacturer, retailer, and
installer of the manufactured home, to
the extent available;
(3) The date the report of the alleged
defect was made;
(4) The name and contact information of the recipient or recipients of
the report of the alleged defect;
(5) The date of installation of the
manufactured home affected by the alleged defect; and
(6) A description of the alleged defect.
§ 3288.30 Screening of dispute resolution request.
(a) Review for sufficiency. When the
request for dispute resolution has been

received by the dispute resolution provider, a screening neutral will review
the sufficiency of the information provided in the request for dispute resolution and determine if the dispute resolution process should proceed. If the
screening neutral determines that a defect is properly alleged and timely reported, notice of the request will be
forwarded, as provided in § 3288.33, to
the manufacturer, retailer, and installer, as appropriate and to the extent the appropriate parties can be
identified based on the information in
the request.
(b) Insufficient information. If a request for dispute resolution is lacking
any information necessary to determine if the dispute resolution process
should proceed, the screening neutral
will contact the requester or the parties about supplementing the initial request. If information necessary to qualify the matter for the HUD Manufactured Home Dispute Resolution Program is not received within a reasonable time established by the screening
neutral, the request for dispute resolution will be considered withdrawn.
(c) Denial of a dispute. Denial by all of
the parties that there is a dispute does
not preclude the dispute resolution
process from going forward to mediation. A screening neutral’s determination that a defect is properly alleged is
prima facie evidence of a dispute. If the
defect has not been corrected or repaired, the matter will be referred to
mediation.
(d) Determination of unreasonable risk.
If the screening neutral determines
there is sufficient documentation of an
alleged defect presenting an unreasonable risk of injury or death, he or she
will send a copy of the request to HUD.
§ 3288.33 Notice of dispute resolution.
(a) Once the screening neutral determines that a defect is properly alleged
and timely reported, notice about the
request will be forwarded to the parties
by overnight delivery, commercial carrier, or fax.
(b) If the parties have not initiated
the Alternative Process in accordance
with § 3288.105 of this part within 7 days
of the screening neutral’s notification,
the screening neutral will refer the
matter to mediation.

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Office of Asst. Sec. for Housing, HUD

§ 3288.40

§ 3288.35 Mediation.
(a) Mediator. The dispute resolution
provider will provide for the selection
of a mediator. The selected mediator
will not be the person who screened the
dispute resolution request. The selected mediator will mediate the dispute and attempt to facilitate a settlement. If a party identifies any other
party that should be included in the
mediation, the mediator will contact
the other party and provide information about the scheduled mediation
meetings.
(b) Time—(1) For reaching settlement.
Except as provided in paragraph (b)(2)
of this section, the parties are allowed
30 days from the commencement of the
mediation to reach a mediated settlement. In every case, the dispute resolution provider will notify the parties
and the homeowner, in writing, of the
date of the commencement of the mediation.
(2) Alleged defects presenting an unreasonable risk of injury, death, or significant loss or damage to valuable personal
property. For mediations involving alleged defects that appear to present an
unreasonable risk of injury, death, or
significant loss or damage to valuable
personal property as determined by the
screening neutral, the parties have a
maximum 10 days from the commencement of the mediation to reach a settlement.
(3) For corrective repairs. Unless a
longer period is agreed to in writing by
the parties to the mediated settlement
and the homeowner, corrective repairs
must be completed no later than 30
days after the date the settlement
agreement is signed by the applicable
parties.
(c) Denial of dispute. During mediation, denial of a dispute by all parties
without acceptance of responsibility
will result in the mediator referring
the matter to arbitration for determination of the defect and responsibility for the defect.
(d) Written settlement agreement. (1)
Upon reaching an agreement, the parties will sign a written settlement
agreement. The dispute resolution provider will forward copies of the agreements with the original signatures of
the parties to the parties, the homeowner, and to HUD.

(2) Sample agreements will be made
available to the parties as drafting
guidance by the dispute resolution provider.
(e) Failure of mediation. If mediation
is not successful, parties or the homeowner may proceed to nonbinding arbitration, as provided in § 3288.40 of this
part.
(f) Confidentiality. Except for the report of an alleged defect, any request
for dispute resolution, and any written
settlement agreement, all other documents and communications provided in
confidence and used in the mediation
will be confidential, in accordance with
the Administrative Dispute Resolution
Act of 1996 (5 U.S.C. 571 et seq.).
§ 3288.40 Nonbinding arbitration.
(a) When initiated. (1) If, following
mediation under § 3288.35, the parties
fail to reach a settlement, any party or
the homeowner may, within 15 days of
the expiration of the deadline applicable under § 3288.35(b), initiate nonbinding arbitration.
(2) In addition, arbitration may be
initiated upon referral by the mediator
pursuant to § 3288.35(c).
(b) Written request—(1) Submission to
HUD. A written request for arbitration
must be submitted to the dispute resolution provider. Information about the
dispute resolution provider and how to
make a request for dispute resolution
will be available at http://www.hud.gov
or by contacting HUD’s Office of Manufactured Housing Programs at (202) 708–
6423 or (800) 927–2891.
(2) Contents of request. The written request for arbitration must include:
(i) The name and address of the party
making the request;
(ii) A brief description of the alleged
defect or a copy of the report of the alleged defect; and
(iii) A copy of the request for dispute
resolution.
(c) Appointment and authority of arbitrator. Upon receipt of the request, the
dispute resolution provider will select
an arbitrator. The arbitrator will have
the authority to:
(1) Set hearing dates and deadlines;
(2) Conduct on-site inspections;
(3) Issue requests for documentation
and information necessary to complete
the record;

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§ 3288.45

24 CFR Ch. XX (4–1–16 Edition)

(4) Dismiss frivolous allegations;
(5) Make proposed findings, including
findings of defect and culpability and a
disposition recommendation to HUD;
and
(6) Recommend apportionment of the
responsibility of paying for or providing any correction or repair of the
home when recommending that culpability be assessed to more than one
party.
(d) Denial of dispute. If the parties
deny a dispute exists and the arbitrator determines there is a defect, the
arbitrator will make a determination
of responsibility for the defect.
(e) Notice to parties. The dispute resolution provider will provide the parties
and the homeowner with a notice setting forth the date, place, and time an
arbitration is to be held.
(f) Proceedings. (1) If all parties do not
request an in-person hearing under
paragraph (f)(2) of this section within 5
days of the dispute resolution provider’s receipt of the request for arbitration, or if the arbitrator rejects the
request for an in-person hearing, the
arbitrator may conduct either a record
review or a telephonic hearing.
(2) If any party wants to request an
in-person hearing, in which the parties
or their representatives may personally appear before the arbitrator, the
arbitrator will consider such a request
if it is made by all of the parties that
are participating in the arbitration.
Such an in-person hearing will be held
at the discretion of the arbitrator,
after considering appropriate factors,
such as cost.
(g) Effect on nonparticipating parties.
If a party chooses not to participate in
the arbitration, the process will continue without further input from that
party. In such a case, the arbitrator
may rely on the record developed
through the arbitration to find a nonparticipating party responsible for correction or repair of a defect.
(h) Completion of arbitration. (1) Unless an extension is granted for good
cause by HUD, the arbitrator, within 21
days of the dispute resolution provider’s receipt of the request for arbitration, the arbitrator will complete
the arbitration process and provide
HUD with all background information
used during the arbitration and with a

written, nonbinding recommendation
as to which party or parties are responsible for the defect, and what corrective actions should be taken.
(2) Unless an extension is granted for
good cause by HUD, the arbitrator,
within 21 days of the dispute resolution
provider’s receipt of the request for arbitration, will provide the parties with
a copy of the nonbinding recommendation that was delivered to HUD, in accordance with § 3288.40(h)(1).
(i) Settlement offers. At any time before HUD issues a final order, the parties may submit to HUD a proposal to
resolve the dispute.
§ 3288.45

HUD review and order.

(a) Appropriate order. HUD will review
the arbitrator’s recommendation provided in accordance with § 3288.40(h),
any settlement offers presented by the
parties in accordance with § 3288.40(i),
and the information gathered during
the arbitration, and will issue an appropriate order in which HUD may accept, modify, or reject the recommendations. HUD will forward a
copy of the order to the arbitrator and
to each of the parties and the homeowner, whether or not a party chose to
participate in the arbitration.
(b) Contents of order. If HUD finds
that a defect exists, the order will include the following:
(1) Assignment of responsibility for
the correction and repair of all defects
and associated costs; and
(2) If the manufacturer, retailer, or
installer is responsible for corrective
action, a date by which the correction
and repair of each defect must be completed, taking into consideration the
seriousness of the defect.
(c) Failure to comply. Failure to comply with an order issued by HUD is a
violation of section 610(a)(5) of the Act
(42 U.S.C. 5409(a)(5)).

Subpart C—Alternative Process in
HUD-Administered States
§ 3288.100

Scope and applicability.

The requirements of this subpart C
may be followed in lieu of the requirements of subpart B of this part to resolve disputes among manufacturers,

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§ 3288.205

retailers, and installers of manufactured homes in any state where subpart B of this part would otherwise
apply. In limited circumstances, this
subpart C permits manufacturers, retailers, and installers of manufactured
homes to use neutrals of their choosing
to resolve disputes concerning alleged
defects in manufactured homes.

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§ 3288.105 Time
when
Alternative
Process is available.
(a) The Alternative Process may be
invoked after an alleged defect has
been reported, pursuant to § 3288.15(b).
However, the Alternative Process may
not be invoked more than 7 days after
notification of a request for dispute
resolution has been received by all of
the parties. The notification must be
delivered by overnight delivery, commercial carrier, or fax by the screening
neutral, in accordance with § 3288.30. If
within 7 days of the receipt of notification, the Alternative Process is not initiated, the screening neutral will refer
the matter to the mediator. Once the
Alternative Process is invoked, neither
the parties nor the homeowner may invoke the Mediation and Arbitration
Process in the HUD Manufactured
Home Dispute Resolution Program for
30 days.
(b) No particular form or format is
required to provide notification for the
Alternative Process, but the party or
parties submitting the notification
must include a statement from the parties participating in the Alternative
Process stating that the homeowner is
not responsible for the alleged defect
and that one or more of the parties will
correct or repair the defect. All required agreements are set forth in
§ 3288.110 of this part. The parties must
also make reasonable efforts to include
the following information in the notification:
(1) Identification of the case; and
(2) Identification of the parties participating in the Alternative Process.
(c) The screening neutral will notify
the parties if the case is referred to the
Alternative Process for resolution.
§ 3288.110 Alternative Process agreements.
(a) Required agreement. To use the Alternative Process, the manufacturer,

retailer, and installer of the manufactured home at issue, as appropriate,
must agree:
(1) That there is a defect in the manufactured home;
(2) That the manufacturer, retailer,
or installer is responsible for the defect;
(3) That the homeowner is not responsible for the defect;
(4) To engage a neutral to evaluate
the dispute and make an assignment of
responsibility for correction and repair; and
(5) To notify the homeowner of, and
allow the homeowner to be present at,
any meetings and to inform the homeowner of the outcome.
(b) Additional element of agreement. In
addition, the parties should agree to
act upon the neutral’s assignment of
responsibility for correction and repair.

Subpart D—State Dispute Resolution Programs in Non-HUD Administered States
§ 3288.200

Applicability.

This subpart D establishes the minimum requirements that must be met
by a state to implement its own dispute resolution program and therefore
not be covered by the HUD Manufactured Home Dispute Resolution Program established in accordance with
subpart B. The subpart also establishes
the procedure for determining whether
the state dispute resolution program
meets the requirements of the Act for
operating in lieu of the HUD Manufactured Home Dispute Resolution Program.
§ 3288.205

Minimum requirements.

(a) List of requirements. The HUD
Manufactured Home Dispute Resolution Program will not be implemented
in any state that complies with the
procedures of this subpart D and that
has a dispute resolution program that
provides for the following minimum requirements:
(1) The timely resolution of disputes
among manufacturers, retailers, or installers regarding responsibility for
correction and repair of defects in
manufactured homes;

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§ 3288.210

24 CFR Ch. XX (4–1–16 Edition)

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(2) The issuance of appropriate orders
for correction and repair of defects in
such homes;
(3) A coverage period for disputes
that includes at least defects that are
reported within 1 year after the date of
first installation; and
(4) Adequate funding and personnel.
(b) Applicability to programs in state
plans. (1) In order to include a dispute
resolution program in a state plan that
on February 8, 2008 is fully or conditionally approved under § 3282.302 of
this chapter, a state must amend its
state plan to provide for the requirements of paragraphs (a)(1) through (3)
of this section.
(2) After February 8, 2008, a state
that submits a state plan for approval
in accordance with § 3282.302 of this
chapter must provide for the requirements of paragraphs (a)(1) through (3)
of this section in its state plan.
§ 3288.210 Acceptance and recertification process.
(a) Submission of certification. A state
seeking HUD acceptance of its state
dispute resolution program under this
subpart must submit to HUD a completed Dispute Resolution Certification
Form, which is available by contacting
HUD by telephone at (202) 708–6423 or
by e-mail at [email protected]. The certification may be submitted as a part of,
or independent of, a state plan under
§ 3282.302 of this chapter. If included as
part of a state plan, the state does not
have to separately certify that it meets
the requirements of § 3288.205(a)(4).
(b) HUD review and action. (1) HUD
will review the Dispute Resolution Certification Form submitted by a state
and may contact the state to request
additional clarification or information
as necessary. Upon completing its review, HUD will provide the state with
notice of acceptance, conditional acceptance, or rejection of its dispute
resolution program.
(2) A notice of acceptance will include the date of acceptance.
(3) If HUD rejects a state’s dispute
resolution program, HUD will provide
an explanation of what is necessary to
obtain full acceptance. A revised Dispute Resolution Certification Form
may be submitted within 30 days of receipt of such notification. If the revised

Dispute Resolution Certification Form
is inadequate or if the state fails to resubmit within the 30-day period or otherwise indicates that it does not intend
to change its Dispute Resolution Certification Form, HUD will notify the
state that its dispute resolution program is not accepted and that it has a
right to a hearing on the rejection
using the procedures set forth under
subpart D of part 3282 of this chapter.
(c) Conditional acceptance. A state
meeting three of the four minimum requirements
set
forth
under
§ 3288.205(a)(1) through (4) will be conditionally accepted by HUD. If HUD conditionally accepts a state’s dispute resolution program, HUD will provide an
explanation of what is necessary to obtain full acceptance. A revised Dispute
Resolution Certification Form may be
submitted within 30 days of receipt of
such notification. Any state conditionally accepted will be permitted to
implement its own dispute resolution
program for a period of not more than
3 years, absent extension of this period
by HUD.
(d) Revocation. If HUD becomes aware
at any time that a state no longer
meets the minimum requirements set
forth under § 3288.205, HUD may revoke
acceptance of the state’s certification
after an opportunity for a hearing,
using the procedures set forth under
subpart D of part 3282.
(e) Recertification of a program not included in state plan. Except as provided
in paragraph (f), to maintain its accepted status, a state whose program is
not included in an approved or conditionally approved state plan must submit a current Dispute Resolution Certification Form to HUD for review and
acceptance as follows:
(1) Every 3 years within 90 days of the
day and month of the most recent date
of HUD’s acceptance of the state’s program or
(2) Whenever there is a significant
change to the program.
(f) Inclusion in state plan. If a state
dispute resolution program is part of a
state plan, it will be reviewed annually
as part of the state plan and separate
recertification of the state’s dispute
resolution program is not required.

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Office of Asst. Sec. for Housing, HUD

§ 3800.20

§ 3288.215 Effect on other manufactured home program requirements.
A state with an accepted dispute resolution program will operate in lieu of
HUD’s Manufactured Home Dispute
Resolution Program established under
subpart B of this part 3288. A state dispute resolution program, even if it is
an accepted dispute resolution program
under this part, does not supersede the
requirements applicable to any other
aspect of HUD’s manufactured home
program. Any responsibilities, rights,
and remedies applicable under the
Manufactured Home Construction and
Safety Standards 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 in all states.

PARTS 3289–3799 [RESERVED]
PART 3800—INVESTIGATIONS IN
CONSUMER REGULATORY PROGRAMS
Sec.
3800.10 Scope of rules.
3800.20 Subpoenas in investigations.
3800.30 Subpoena enforcement in district
court.
3800.40 Investigational proceedings.
3800.50 Rights of witnesses in investigational proceedings.
3800.60 Settlements.
AUTHORITY: 12 U.S.C. 2601 et seq.; 15 U.S.C.
1714; 42 U.S.C. 3535(d) and 5413.

Subpart E—Dispute Resolution
Program Rulemaking Procedures

SOURCE: 61 FR 10441, Mar. 13, 1996, unless
otherwise noted.

§ 3288.300 Applicability.
This subpart establishes special regulatory procedures for issuing or revising dispute resolution program regulations as codified in this part.

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reasons for the rejection. This section
does not supersede section 605 of the
National Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5404).

§ 3288.305 Consultation with the Manufactured Housing Consensus Committee.
HUD will seek input from the MHCC
when revising the HUD Manufactured
Home Dispute Resolution Program regulations in this part 3288. Before publication of a proposed rule to revise
these regulations, HUD will provide the
MHCC with an opportunity to comment on such revision. The MHCC may
send to HUD any of the MHCC’s own
recommendations to adopt new dispute
resolution 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. HUD will
either: accept or modify the recommendation and publish it for public
comment in accordance with section
553 of the Administrative Procedure
Act (5 U.S.C. 553), along with an explanation of the reasons for any such
modification; or reject the recommendation entirely, and provide to
the MHCC a written explanation of the

§ 3800.10 Scope of rules.
This part applies to investigations
and investigational proceedings undertaken by the Secretary, or the Secretary’s designee, pursuant to the following:
(a) The Interstate Land Sales Full
Disclosure Act, 15 U.S.C. 1701 et seq.;
(b) The National Manufactured Housing Construction and Safety Standards
Act of 1974, 42 U.S.C. 5401 et seq.; and
(c) The Real Estate Settlement Procedures Act of 1974, 12 U.S.C. 2601 et seq.
§ 3800.20 Subpoenas in investigations.
(a) The Secretary may issue subpoenas relating to any matter under
investigation. A subpoena may:
(1) Require testimony to be taken by
interrogatories;
(2) Require the attendance and testimony of witnesses at a specific time
and place;
(3) Require access to, examination of,
and the right to copy documents; and
(4) Require the production of documents at a specific time and place.
(b) A subpoenaed person may petition
the Secretary or the Secretary’s designee to modify or withdraw a subpoena by filing the petition within 10
days after service of the subpoena. The
petition may be in letter form, but

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