[Title 24 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 2003 Edition]
[From the U.S. Government Printing Office]



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                    24


          Part 1700 to End

                         Revised as of April 1, 2003

Housing and Urban Development





          Containing a codification of documents of general 
          applicability and future effect
          As of April 1, 2003
          With Ancillaries
          Published by
          Office of the Federal Register
          National Archives and Records
          Administration

 A Special Edition of the Federal Register



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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2003



  For sale by the Superintendent of Documents, U.S. Government Printing 
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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 24:
    Subtitle B--Regulations Relating to Housing and Urban 
      Development (Continued)
          Chapter X--Office of Assistant Secretary for 
          Housing--Federal Housing Commissioner, Department of 
          Housing and Urban Development (Interstate Land Sales 
          Registration Program)                                      5
          Chapter XII--Office of Inspector General, Department 
          of Housing and Urban Development                          87
          Chapter XX--Office of Assistant Secretary for 
          Housing--Federal Housing Commissioner, Department of 
          Housing and Urban Development                            105
          Chapter XXV--Neighborhood Reinvestment Corporation       311
  Finding Aids:
      Material Approved for Incorporation by Reference........     323
      Table of CFR Titles and Chapters........................     333
      Alphabetical List of Agencies Appearing in the CFR......     351
      List of CFR Sections Affected...........................     361



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                     ----------------------------

                     Cite this Code:  CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus,  24 CFR 1710.1 
                       refers to title 24, part 
                       1710, section 1.

                     ----------------------------

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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, April 1, 2003), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
exercised by the user in determining the actual effective date. In 
instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

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Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 2001, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, 1973-1985, or 1986-2000, published in 11 separate 
volumes. For the period beginning January 1, 2001, a ``List of CFR 
Sections Affected'' is published at the end of each CFR volume.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
requirement to publish regulations in the Federal Register by referring 
to materials already published elsewhere. For an incorporation to be 
valid, the Director of the Federal Register must approve it. The legal 
effect of incorporation by reference is that the material is treated as 
if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    Properly approved incorporations by reference in this volume are 
listed in the Finding Aids at the end of this volume.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed in 
the Finding Aids of this volume as an approved incorporation by 
reference, please contact the agency that issued the regulation 
containing that incorporation. If, after contacting the agency, you find 
the material is not available, please notify the Director of the Federal 
Register, National Archives and Records Administration, Washington DC 
20408, or call (202) 741-6010.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I). A list of CFR titles, chapters, 
and parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

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REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-741-6000 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408 or e-mail 
[email protected].

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                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

April 1, 2003.



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                               THIS TITLE

    Title 24--Housing and Urban Development is composed of five volumes. 
The first four volumes containing parts 0-199, parts 200-499, parts 500-
699, parts 700-1699, represent the regulations of the Department of 
Housing and Urban Development. The fifth volume, containing part 1700 to 
end continues with regulations of the Department of Housing and Urban 
Development and also includes regulations of the Neighborhood 
Reinvestment Corporation. The contents of these volumes represent all 
current regulations codified under this title of the CFR as of April 1, 
2003.

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

[[Page 1]]



                 TITLE 24--HOUSING AND URBAN DEVELOPMENT




                 (This book contains parts 1700 to End)

  --------------------------------------------------------------------
                                                                    Part

   SUBTITLE B--Regulations Relating to Housing and Urban Development 
                                (Continued)

chapter x--Office of Assistant Secretary for Housing--
  Federal Housing Commissioner, Department of Housing and 
  Urban Development (Interstate Land Sales Registration 
  Program)..................................................        1710

chapter xii-- Office of Inspector General, Department of 
  Housing and Urban Development.............................        2002

chapter xx--Office of Assistant Secretary for Housing--
  Federal Housing Commissioner, Department of Housing and 
  Urban Development.........................................        3280

chapter xxv--Neighborhood Reinvestment Corporation..........        4100

Cross References: See Farmers Home Administration, Department of 
  Agriculture, 7 CFR chapter XVIII.

  Office of Thrift Supervision, Department of the Treasury, 12 CFR 
chapter V.

  Department of Veterans Affairs regulations on assistance to certain 
disabled veterans in acquiring specially adapted housing and guaranty of 
loans on homes: See Pensions, Bonuses, and Veterans' Relief, 38 CFR part 
36.

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   Subtitle B--Regulations Relating to Housing and Urban Development 
                               (Continued)

  --------------------------------------------------------------------


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 CHAPTER X--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING 
 COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (INTERSTATE 
                    LAND SALES REGISTRATION PROGRAM)




  --------------------------------------------------------------------
Part                                                                Page
1710            Land registration...........................           7
1715            Purchasers' revocation rights, sales 
                    practices and standards.................          64
1720            Formal procedures and rules of practice.....          68

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PART 1710--LAND REGISTRATION--Table of Contents




                     Subpart A--General Requirements

Sec.
1710.1  Definitions.
1710.3  General applicability.
1710.4  Exemptions--general.
1710.5  Statutory exemptions from the provisions of this chapter.
1710.6  One hundred lot exemption.
1710.7  Twelve lot exemption.
1710.8  Scattered site subdivisions.
1710.9  Twenty acre lots.
1710.10  Single-family residence exemption.
1710.11  Manufactured home exemption.
1710.12  Intrastate exemption.
1710.13  Metropolitan Statistical Area (MSA) exemption.
1710.14  Regulatory exemptions.
1710.15  Regulatory exemption--multiple site subdivision--determination 
          required.
1710.16  Regulatory exemption--determination required.
1710.17  Advisory opinion.
1710.18  No action letter.
1710.20  Requirements for registering a subdivision--Statement of 
          Record--filing and form.
1710.21  Effective dates.
1710.22  Statement of record--initial or consolidated.
1710.23  Amendment--filing and form.
1710.29  Use of property report--misstatements, omissions or 
          representation of HUD approval prohibited.
1710.35  Payment of fees.
1710.45  Suspensions.

                    Subpart B--Reporting Requirements

1710.100  Statement of Record--format.
1710.102  General instructions for completing the Statement of Record.
1710.103  Developer obligated improvements.
1710.105  Cover page.
1710.106  Table of contents.
1710.107  Risks of buying land.
1710.108  General information.
1710.109  Title to the property and land use.
1710.110  Roads.
1710.111  Utilities.
1710.112  Financial information.
1710.113  Local services.
1710.114  Recreational facilities.
1710.115  Subdivision characteristics and climate.
1710.116  Additional information.
1710.117  Cost sheet, signature of Senior Executive Officer.
1710.118  Receipt, agent certification and cancellation page.
1710.200  Instructions for Statement of Record, Additional Information 
          and Documentation.
1710.208  General information.
1710.209  Title and land use.
1710.210  Roads.
1710.211  Utilities.
1710.212  Financial information.
1710.214  Recreational facilities.
1710.215  Subdivision characteristics and climate.
1710.216  Additional information.
1710.219  Affirmation.
1710.310  Annual report of activity.

     Subpart C--Certification of Substantially Equivalent State Law

1710.500  General.
1710.503  Notice of certification.
1710.504  Cooperation among certified states and between certified 
          states and the Secretary.
1710.505  Withdrawal of State certification.
1710.506  State/Federal filing requirements.
1710.507  Effect of suspension or withdrawal of certification granted 
          under Sec. 1710.501(a): Full disclosure requirement.
1710.508  Effect of suspension of certification granted under 
          Sec. 1710.501(b): Sufficient protection requirement.
1710.552  Previously accepted state filings.
1710.556  Previously accepted state filings--amendments and 
          consolidations.
1710.558  Previously accepted state filings--notice of revocation rights 
          on property report cover page.
1710.559  Previously accepted state filings--notice of revocation rights 
          in contracts and agreements.

    Authority: 15 U.S.C. 1718; 42 U.S.C. 3535(d).



                     Subpart A--General Requirements

    Authority: Sec. 1419, Interstate Land Sales Full Disclosure Act, 82 
Stat. 590, 598; 15 U.S.C. 1718; sec. 7(d), Dept. of Housing and Urban 
Development Act, 42 U.S.C. 3535(d).



Sec. 1710.1  Definitions.

    (a) Statutory terms. All terms are used in accordance with their 
statutory meaning in 15 U.S.C. 1702 or with part 5 of this title, unless 
otherwise defined in paragraph (b) of this section or elsewhere in this 
part.
    (b) Other terms. As used in this part:
    Act means the Interstate Land Sales Full Disclosure Act, 15 U.S.C. 
1701.
    Advisory opinion means the formal written opinion of the Secretary 
as to jurisdiction in a particular case or the applicability of an 
exemption under Secs. 1710.5 through 1710.15, based on facts submitted 
to the Secretary.
    Available for use means that in addition to being constructed, the 
subject facility is fully operative and supplied

[[Page 8]]

with any materials and staff necessary for its intended purpose.
    Beneficial property restrictions means restrictions that are 
enforceable by the lot owners and are designed to control the use of the 
lot and to preserve or enhance the environment and the aesthetic and 
economic value of the subdivision.
    Date of filing means the date a Statement of Record, amendment, or 
consolidation, accompanied by the applicable fee, is received by the 
Secretary.
    Good faith estimate means an estimate based on documentary evidence. 
In the case of cost estimates, the documentation may be obtained from 
the suppliers of the services. In the case of estimates of completion 
dates, the documentation may be actual contracts let, engineering 
schedules, or other evidence of commitments to complete the amenities.
    Lot means any portion, piece, division, unit, or undivided interest 
in land located in any State or foreign country, if the interest 
includes the right to the exclusive use of a specific portion of the 
land.
    OILSR means the Interstate Land Sales Registration program.
    Owner means the person or entity who holds the fee title to the land 
and has the power to convey that title to others.
    Parent corporation means that entity which ultimately controls the 
subsidiary, even though the control may arise through any series or 
chain of other subsidiaries or entities.
    Principal means any person or entity holding at least a 10 percent 
financial or ownership interest in the developer or owner, directly or 
through any series or chain of subsidiaries or other entities.
    Rules means all rules adopted pursuant to the Act, including the 
general requirements published in this part.
    Sale means any obligation or arrangement for consideration to 
purchase or lease a lot directly or indirectly. The terms ``sale'' or 
``seller'' include in their meanings the terms ``lease'' and ``lessor''.
    Senior Executive Officer means the individual of highest rank 
responsible for the day-to-day operations of the developer and who has 
the authority to bind or commit the developing entity to contractual 
obligations.
    Site means a group of contiguous lots, whether such lots are 
actually divided or proposed to be divided. Lots are considered to be 
contiguous even though contiguity may be interrupted by a road, park, 
small body of water, recreational facility, or any similar object.
    Start of construction means breaking ground for building a facility, 
followed by diligent action to complete the facility.

[61 FR 13597, Mar. 27, 1996]



Sec. 1710.3  General applicability.

    Except in the case of an exempt transaction, a developer may not 
sell or lease lots in a subdivision, making use of any means or 
instruments of transportation or communication in interstate commerce, 
or of the mails, unless a Statement of Record is in effect in accordance 
with the provisions of this part. In non-exempt transactions, the 
developer must give each purchaser a printed Property Report, meeting 
the requirements of this part, in advance of the purchaser's signing of 
any contract or agreement for sale or lease.

(Approved by the Office of Management and Budget under control number 
2502-0243)

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984]



Sec. 1710.4  Exemptions--general.

    (a) The exemptions available under Secs. 1710.5 through 1710.16 are 
not applicable when the method of sale, lease or other disposition of 
land or an interest in land is adopted for the purpose of evasion of the 
Act.
    (b) With the exception of the sales or leases which are exempt under 
Sec. 1710.5, the anti-fraud provisions of the Act (15 U.S.C. 1703(a)(2)) 
apply to exempt transactions. The anti-fraud provisions make it unlawful 
for a developer or agent to employ any device, scheme, or artifice to:
    (1) Defraud;
    (2) To obtain money or property by means of any untrue statement of 
a material fact, or

[[Page 9]]

    (3) To omit to state a material fact necessary in order to make the 
statements made not misleading, with respect to any information 
pertinent to the lot or subdivision; or
    (4) To engage in any transaction, practice, or course of business 
which operates or would operate as a fraud or deceit upon a purchaser.
    (c) The anti-fraud provisions of the Act require that certain 
representations be included in the contract in transactions which are 
not exempt under Sec. 1710.5. Specifically, the Act requires that if a 
developer or agent represents that roads, sewers, water, gas or electric 
service or recreational amenities will be provided or completed by the 
developer, the contract must stipulate that the services or amenities 
will be provided or completed. See Sec. 1715.15(f).
    (d) Eligibility for exemptions available under Secs. 1710.5 through 
1710.14 is self-determining. With the exception of the exemptions 
available under Secs. 1710.15 and 1710.16, a developer is not required 
to file notice with or obtain the approval of the Secretary in order to 
take advantage of an exemption. If a developer elects to take advantage 
of an exemption, the developer is responsible for maintaining records to 
demonstrate that the requirements of the exemption have been met.
    (e) A developer may present evidence, or otherwise discuss, in an 
informal hearing before the OILSR Administrator or designee, the 
Department's position on the jurisdiction or non-exempt status of a 
particular subdivision.

[45 FR 40479, June 13, 1980, as amended at 54 FR 40866, Oct. 4, 1989]



Sec. 1710.5  Statutory exemptions from the provisions of this chapter.

    A listing of the statutory exemptions is contained in 15 U.S.C. 
1703. In accordance with 15 U.S.C. 1703(a)(2), if the sale involves a 
condominium or multi-unit construction, a presale clause conditioning 
the sale of a unit on a certain percentage of sales of other units is 
permissible if it is legally binding on the parties and is for a period 
not to exceed 180 days. However, the 180-day provision cannot extend the 
2-year period for performance. The permissible 180 days is calculated 
from the date the first purchaser signs a sales contract in the project 
or, if a phased project, from the date the first purchaser signs the 
first sales contract in each phase.

[61 FR 13597, Mar. 27, 1996]



Sec. 1710.6  One hundred lot exemption.

    The sale of lots in a subdivision is exempt from the registration 
requirements of the Act if, since April 28, 1969, the subdivision has 
contained fewer than 100 lots, exclusive of lots which are exempt from 
jurisdiction under Sec. 1710.5. In the sale of lots in the subdivision 
that are not exempt under Sec. 1710.5, the developer must comply with 
the Act's anti-fraud provisions, set forth in Sec. 1710.4 (b) and (c).

[49 FR 31368, Aug. 6, 1984]



Sec. 1710.7  Twelve lot exemption.

    (a) The sale of lots is exempt from the registration requirements of 
the Act if, beginning with the first sale after June 20, 1980, no more 
than twelve lots in the subdivision are sold in the subsequent twelve-
month period. Thereafter, the sale of the first twelve lots is exempt 
from the registration requirements if no more than twelve lots were sold 
in each previous twelve month period which began with the anniversary 
date of the first sale after June 20, 1980.
    (b) A developer may apply to the Secretary to establish a different 
twelve month period for use in determining eligibility for the exemption 
and the Secretary may allow the change if it is for good cause and 
consistent with the purpose of this section.
    (c) In determining eligibility for this exemption, all lots sold or 
leased in the subdivision after June 20, 1980, are counted, whether or 
not the transactions are otherwise exempt. Sales or leases made prior to 
June 21, 1980, are not considered in determining eligibility for the 
exemption.
    (d) The sale must also comply with the anti-fraud provisions of 
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984]



Sec. 1710.8  Scattered site subdivisions.

    (a) The sale of lots in a subdivision consisting of noncontiguous 
parts is

[[Page 10]]

exempt from the registration requirements of the Act if--
    (1) Each noncontiguous part of the subdivision contains twenty or 
fewer lots; and
    (2) Each purchaser or purchaser's spouse makes a personal, on-the-
lot inspection of the lot purchased prior to signing a contract.
    (b) For purposes of this exemption, interruptions such as roads, 
parks, small bodies of water or recreational facilities do not serve to 
break the contiguity of parts of a subdivision.
    (c) The sale must also comply with the anti-fraud provisions of 
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984]



Sec. 1710.9  Twenty acre lots.

    (a) The sale of lots in a subdivision is exempt from the 
registration requirements of the Act if, since April 28, 1969, each lot 
in the subdivision has contained at least twenty acres. In determining 
eligibility for the exemption, easements for ingress and egress or 
public utilities are considered part of the total acreage of the lot if 
the purchaser retains ownership of the property affected by the 
easement.
    (b) The sale must also comply with the anti-fraud provisions of 
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984]



Sec. 1710.10  Single-family residence exemption.

    (a) General. The sale of a lot which meets the requirements 
specified under paragraphs (b) and (c) of this section is exempt from 
the registration requirements of the Act.
    (b) Subdivision requirements. (1) The subdivision must meet all 
local codes and standards.
    (2) In the promotion of the subdivision there must be no offers, by 
direct mail or telephone solicitation, of gifts, trips, dinners or use 
of similar promotional techniques to induce prospective purchasers to 
visit the subdivision or to purchase a lot.
    (c) Lot requirements. (1) The lot must be located within a 
municipality or county where a unit of local government or the State 
specifies minimum standards in the following areas for the development 
of subdivision lots taking place within its boundaries:
    (i) Lot dimensions.
    (ii) Plat approval and recordation.
    (iii) Roads and access.
    (iv) Drainage.
    (v) Flooding.
    (vi) Water supply.
    (vii) Sewage disposal.
    (2) Each lot sold under the exemption must be either zoned for 
single-family residences or, in the absence of a zoning ordinance, 
limited exclusively by enforceable covenants or restrictions to single-
family residences. Manufactured homes, townhouses, and residences for 
one-to-four family use are considered single-family residences for 
purposes of this exemption provision.
    (3) The lot must be situated on a paved street or highway which has 
been built to standards established by the State or the unit of local 
government in which the subdivision is located. If the roads are to be 
public roads they must be acceptable to the unit of local government 
that will be responsible for maintenance. If the street or highway is 
not complete, the developer must post a bond or other surety acceptable 
to the municipality or county in the full amount of the cost of 
completing the street or highway to assure completion to local 
standards. For purposes of this exemption, paved means concrete or 
pavement with a bituminous surface that is impervious to water, protects 
the base and is durable under the traffic load and maintenance 
contemplated.
    (4) The unit of local government or a homeowners association must 
have accepted or be obligated to accept the responsibility for 
maintaining the street or highway upon which the lot is situated. In any 
case in which a homeowners association has accepted or is obligated to 
accept maintenance responsibility, the developer must, prior to signing 
of a contract or agreement to purchase, provide the purchaser with a 
good faith written estimate of the cost of carrying out the 
responsibility over the first ten years of ownership.
    (5) At the time of closing, potable water, sanitary sewage disposal, 
and electricity must be extended to the lot

[[Page 11]]

or the unit of local government must be obligated to install the 
facilities within 180 days following closing. For subdivisions which 
will not have a central water or sewage disposal system, there must be 
assurances that an adequate potable water supply is available year-round 
and that the lot is approved for the installation of a septic tank.
    (6) The contract of sale must require delivery within 180 days after 
the signing of the sales contract of a warranty deed, which at the time 
of delivery is free from monetary liens and encumbrances. If a warranty 
deed is not commonly used in the jurisdiction where the lot is located, 
a deed or grant which warrants that the seller has not conveyed the lot 
to another person may be delivered in lieu of a warranty deed. The deed 
or grant used must warrant that the lot is free from encumbrances made 
by the seller or any other person claiming by, through, or under the 
seller.
    (7) At the time of closing, a title insurance binder or title 
opinion reflecting the condition of title must be in existence and 
issued or presented to the purchaser showing that, subject only to 
exceptions which are approved in writing by the purchaser at the time of 
closing, marketable title to the lot is vested in the seller.
    (8) The purchaser or purchaser's spouse must make a personal, on-
the-lot inspection of the lot purchased prior to signing a contract or 
agreement to purchase.
    (d) The sale must also comply with the anti-fraud provisions of 
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984; 50 
FR 9269, Mar. 7, 1985]



Sec. 1710.11  Manufactured home exemption.

    (a) The sale of a lot is exempt from the registration requirements 
of the Act when the following eligibility requirements are met:
    (1) The lot is sold as a homesite by one party and a manufactured 
home is sold by another party and the contracts of sale--
    (i) Obligate the sellers to perform, contingent upon the other 
seller carrying out its obligations so that a completed manufactured 
home will be erected on a completed homesite within two years after the 
date the purchaser signed the contract to purchase the lot;
    (ii) Provide that all funds received by the sellers are to be 
deposited in escrow accounts independent of the sellers until the 
transactions are completed;
    (iii) Provide that funds received by the sellers will be released to 
the buyer upon demand if the lot on which the manufactured home has been 
erected is not conveyed within two years; and
    (iv) Contain no provisions which restrict the purchaser's remedy of 
bringing suit for specific performance.
    (2) The homesite is developed in conformance with all local codes 
and standards, if any, for manufactured home subdivisions.
    (3) At the time of closing--
    (i) Potable water and sanitary sewage disposal are available to the 
homesite and electricity has been extended to the lot line;
    (ii) The homesite is accessible by roads;
    (iii) The purchaser receives marketable title to the lot; and
    (iv) Other common facilities represented in any manner by the 
developer or agent to be provided are completed or there are letters of 
credit, cash escrows or surety bonds in the form acceptable to the local 
government in an amount equal to 100 percent of the estimated cost of 
completion. Corporate bonds are not acceptable for purposes of the 
exemption.
    (4) For purposes of this section, a manufactured home is a unit 
receiving a label in conformance with HUD regulations implementing the 
National Manufactured Housing Construction and Safety Standards Act of 
1974 (42 U.S.C. 5401).
    (b) The sale must also comply with the anti-fraud provisions of 
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984; 49 
FR 33644, Aug. 24, 1984; 50 FR 9269, Mar. 7, 1985]



Sec. 1710.12  Intrastate exemption.

    (a) Eligibility requirements. The sale of a lot is exempt from the 
registration requirements of the Act if the following requirements are 
met:

[[Page 12]]

    (1) The sale of lots in the subdivision after December 20, 1979, is 
restricted solely to residents of the State in which the subdivision is 
located unless the sale is exempt under Sec. 1710.5, Sec. 1710.11 or 
Sec. 1710.13.
    (2) The purchaser or purchaser's spouse makes a personal on-the-lot 
inspection of the lot to be purchased before signing a contract.
    (3) Each contract--
    (i) Specifies the developer's and purchaser's responsibilities for 
providing and maintaining roads, water and sewer facilities and any 
existing or promised amenities;
    (ii) Contains a good faith estimate of the year in which the roads, 
water and sewer facilities and promised amenities will be completed; and
    (iii) Contains a non-waivable provision giving the purchaser the 
opportunity to revoke the contract until at least midnight of the 
seventh calendar day following the date the purchaser signed the 
contract. If the purchaser is entitled to a longer revocation period by 
operation of State law, that period becomes the Federal revocation 
period and the contract must reflect the requirements of the longer 
period.
    (4) The lot being sold is free and clear of all liens, encumbrances 
and adverse claims except the following:
    (i) Mortgages or deeds of trust which contain release provisions for 
the individual lot purchased if--
    (A) The contract of sale obligates the developer to deliver, within 
180 days, a warranty deed (or its equivalent under local law), which at 
the time of delivery is free from any monetary liens or encumbrances; 
and
    (B) The purchaser's payments are deposited in an escrow account 
independent of the developer until a deed is delivered.
    (ii) Liens which are subordinate to the leasehold interest and do 
not affect the lessee's right to use or enjoy the lot.
    (iii) Property reservations which are for the purpose of bringing 
public services to the land being developed, such as easements for water 
and sewer lines.
    (iv) Taxes or assessments which constitute liens before they are due 
and payable if imposed by a State or other public body having authority 
to assess and tax property or by a property owners' association.
    (v) Beneficial property restrictions that are mutually enforceable 
by the lot owners in the subdivision. Restrictions, whether separately 
recorded or incorporated into individual deeds, must be applied 
uniformly to every lot or group of lots. To be considered beneficial and 
enforceable, any restriction or covenant that imposes an assessment on 
lot owners must apply to the developer on the same basis as other lot 
owners. Developers who maintain control of a subdivision through a 
Property Owners' Association, Architectural Control Committee, 
restrictive covenant or otherwise, shall transfer such control to the 
lot owners no later than when the developer ceases to own a majority of 
total lots in, or planned for, the subdivision. Relinquishment of 
developer control shall require affirmative action, usually in the form 
of an election based upon one vote per lot.
    (vi) Reservations contained in United States land patents and 
similar Federal grants or reservations.
    (5) Prior to the sale the developer discloses in a written statement 
to the purchaser all qualifying liens, reservations, taxes, assessments 
and restrictions applicable to the lot purchased. The developer must 
obtain a written receipt from the purchaser acknowledging that the 
statement required by this subparagraph was delivered to the purchaser.
    (6) Prior to the sale the developer provides in a written statement 
good faith estimates of the cost to the purchaser of providing electric, 
water, sewer, gas and telephone service to the lot. The estimates for 
unsold lots must be updated every two years or more frequently if the 
developer has reason to believe that significant cost increases have 
occurred. The dates on which the estimates were made must be included in 
the statement. The developer must obtain a written receipt from the 
purchaser acknowledging that the statement required by this subparagraph 
was delivered to the purchaser.
    (b) Intrastate Exemption Statement. To satisfy the requirements of 
paragraphs (a)(5) and (a)(6) of this section, an

[[Page 13]]

Intrastate Exemption Statement containing the information prescribed in 
each such paragraph shall be given to each purchaser. A State-approved 
disclosure document may be used to satisfy this requirement if all the 
information required by paragraphs (a)(5) and (a)(6) of this section is 
included in this disclosure. In such a case, the developer must obtain a 
written receipt from the purchaser and comply with all other 
requirements of the exemption. To be acceptable for purposes of the 
exemption, the statement(s) given to purchasers must contain neither 
advertising nor promotion on behalf of the developer or subdivision nor 
references to the U.S. Department of Housing and Urban Development. A 
sample Intrastate Exemption Statement is included in the exemption 
guidelines.
    (c) The sale must also comply with the anti-fraud provisions of 
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, 31369, Aug. 6, 
1984]



Sec. 1710.13  Metropolitan Statistical Area (MSA) exemption.

    (a) Eligibility requirements. The sale of a lot which meets the 
following requirements is exempt from registration requirements of the 
Act:
    (1) The lot is in a subdivision which contains fewer than 300 lots 
and has contained fewer than 300 lots since April 28, 1969.
    (2) The lot is located within a Metropolitan Statistical Area (MSA) 
as defined by the Office of Management and Budget and characterized in 
paragraph (b) of this section.
    (3) The principal residence of the purchaser is within the same MSA 
as the subdivision.
    (4) The purchaser or purchaser's spouse makes a personal on-the-lot 
inspection of the lot to be purchased prior to signing a contract or 
agreement.
    (5) Each contract--
    (i) Specifies the developer's and purchaser's responsibilities for 
providing and maintaining roads, water and sewer facilities and any 
existing or promised amenities;
    (ii) Contains a good faith estimate of the year in which the roads, 
water and sewer facilities and promised amenities will be completed;
    (iii) Contains a nonwaivable provision giving the purchaser the 
opportunity to revoke the contract until at least midnight of the 
seventh calendar day following the date the purchaser signed the 
contract, or, if the purchaser is entitled to a longer revocation period 
by operation of State law, that period becomes the Federal revocation 
period and the contract must reflect the requirements of the longer 
period.
    (6) The lot being sold must be free and clear of liens such as 
mortgages, deeds of trust, tax liens, mechanics' liens, or judgments. 
For purposes of this exemption, the term liens does not include the 
following:
    (i) Mortgages or deeds of trust which contain release provisions for 
the individual lot purchased if--
    (A) The contract of sale obligates the developer to deliver, within 
180 days, a warranty deed (or its equivalent under local law), which at 
the time of delivery is free from any monetary liens or encumbrances; 
and
    (B) The purchaser's payments are deposited in an escrow account 
independent of the developer until a deed is delivered.
    (ii) Liens which are subordinate to the leasehold interest and do 
not affect the lessee's right to use or enjoy the lot.
    (iii) Property reservations which are for the purpose of bringing 
public services to the land being developed, such as easements for water 
and sewer lines.
    (iv) Taxes or assessments which constitute liens before they are due 
and payable if imposed by a State or other public body having authority 
to assess and tax property or by a property owners' association.
    (v) Beneficial property restrictions that are mutually enforceable 
by the lot owners in the subdivision. Restrictions, whether separately 
recorded or incorporated into individual deeds, must be applied 
uniformly to every lot or group of lots. To be considered beneficial and 
enforceable, any restriction or covenant that imposes an assessment on 
lot owners must apply to the developer on the same basis as other lot 
owners. Developers who maintain

[[Page 14]]

control of a subdivision through a Property Owners' Association, 
Architectural Control Committee, restrictive covenants, or otherwise, 
shall transfer such control to the lot owners no later than when the 
developer ceases to own a majority of total lots in, or planned for, the 
subdivision. Relinquishment of developer control shall require 
affirmative action, usually in the form of an election based upon one 
vote per lot.
    (vi) Reservations contained in United States land patents and 
similar Federal grants or reservations.
    (7) Before the sale the developer gives a written MSA Exemption 
Statement to the purchaser and obtains a written receipt acknowledging 
that the statement was received. A sample MSA Exemption Statement is 
included in the exemption guidelines. A State-approved disclosure 
document may be used to satisfy this requirement if all of the 
information required by this section is included. The statement(s) given 
to purchasers must contain neither advertising nor promotion on behalf 
of the developer or the subdivision nor references to the U.S. 
Department of Housing and Urban Development. In descriptive and concise 
terms, the statement that the developer must give the purchaser shall 
disclose the following:
    (i) All liens, reservations, taxes, assessments, beneficial property 
restrictions which are enforceable by other lot owners in the 
subdivision, and adverse claims which are applicable to the lot to be 
purchased.
    (ii) Good faith estimates of the cost to the purchaser of providing 
electric, water, sewer, gas and telephone service to the lot. The 
estimates for unsold lots must be updated every two years, or more 
frequently if the developer has reason to believe that significant cost 
increases have occurred. The dates on which the estimates were made must 
be included in the statement.
    (8) The developer executes and gives to the purchaser a written 
instrument designating a person within the State of residence of the 
purchaser as the developer's agent for service of process. The developer 
must also acknowledge in writing that it submits to the legal 
jurisdiction of the State in which the purchaser or lessee resides.
    (9) The developer executes a written affirmation for each sale made 
under this exemption. By January 31 of each year, the developer submits 
to the Secretary a copy of the executed affirmation for each sale made 
during the preceding calendar year or a master affirmation in which are 
listed all purchasers' names and addresses and the identity of the lots 
purchased. Individual affirmations must be available for the Secretary's 
review at all times during the year.
    The affirmation must be in the following form:

Developer's Name________________________________________________________
Developer's Address_____________________________________________________
Purchaser's Name(s)_____________________________________________________
Purchaser's Address(es) (including county)______________________________
Name of Subdivision_____________________________________________________
Legal Description of Lot(s) Purchased___________________________________

    I hereby affirm that all of the requirements of the MSA exemption as 
set forth in 15 U.S.C. 1702(b)(8) and 24 CFR 1710.13 have been met in 
the sale or lease of the lot(s) described above.
    I also affirm that I submit to the jurisdiction of the Interstate 
Land Sales Full Disclosure Act with regard to the sale or lease cited 
above.

(Date) _________________________________________________________________
(Signature of Developer or Authorized Agent)____________________________
________________________________________________________________________
(Title) ________________________________________________________________

    (b) Metropolitan Statistical Area. Metropolitan Statistical Areas 
are defined by the Office of Management and Budget generally on the 
basis of population statistics reported in a census. To determine 
whether a subdivision is located within an MSA and the boundaries of an 
MSA, contact the Office of Information and Regulatory Affairs, Office of 
Management and Budget, 726 Jackson Place, NW., Washington, DC 20503.
    (c) The sale must also comply with the anti-fraud provisions of 
Sec. 1710.4 (b) and (c).

[45 FR 40479, June 13, 1980, as amended at 49 FR 31369, Aug. 6, 1984]



Sec. 1710.14  Regulatory exemptions.

    (a) Eligibility requirements. The following transactions are exempt 
from the registration requirements of the

[[Page 15]]

Act unless the Secretary has terminated the exemption in accordance with 
paragraph (b) of this section.
    (1) The sale of lots, each of which will be sold for less than $100, 
including closing costs, if the purchaser will not be required to 
purchase more than one lot.
    (2) The lease of lots for a term not to exceed five years if the 
terms of the lease do not obligate the lessee to renew.
    (3) The sale of lots to a person who is engaged in a bona fide land 
sales business.
    (4) The sale of a lot to a person who owns the contiguous lot which 
has a residential, commercial or industrial building on it.
    (5) The sale of real estate to a government or government agency.
    (6) The sale of a lot to a person who has leased and resided 
primarily on the lot for at least the year preceeding the sale.
    (b) Termination. If the Secretary has reasonable grounds to believe 
that exemption from the registration requirements in a particular case 
is not in the public interest, the Secretary may, after issuing a notice 
and giving the respondent an opportunity to request a hearing within 
fifteen days of receipt of the notice, terminate eligiblity for 
exemption. The basis for issuing a notice may be the conduct of the 
developer or agent, such as unlawful conduct or insolvency, or adverse 
information about the lots or real estate that should be disclosed to 
the purchasers. Proceedings will be governed by Sec. 1720.238.
    (c) The sale must also comply with the anti-fraud provisions of 
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31370, Aug. 6, 1984]



Sec. 1710.15  Regulatory exemption--multiple site subdivision--determination required.

    (a) General. (1) The sale of lots contained in multiple sites of 
fewer than 100 lots each, offered pursuant to a single common 
promotional plan, is exempt from the registration requirements.
    (2) For purposes of this exemption, the sale of lots in an 
individual site that exceeds 99 lots is not exempt from registration. 
Likewise, the sale of lots in a site containing fewer than 100 lots, 
where the developer either owns contiguous land or holds an option or 
other evidence of intent to acquire contiguous land which, when taken 
cumulatively, would or could result in one site of 100 or more lots, is 
not exempt from registration. Furthermore, the sale of lots that are 
within a subdivision established by a separate developer is not exempt 
from registration by this provision.
    (b) Eligibility requirements. The sale of each lot must meet the 
following requirements to be eligible for this exemption.
    (1) The lot is sold ``as is'' with all advertised improvements and 
amenities completed and in the condition advertised.
    (2) The lot is in conformance with all local codes and standards.
    (3) The lot is accessible, both legally and physically. For lots 
which are advertised or otherwise represented as ``residential'', either 
primary or secondary, with any inference that a permanent or temporary 
dwelling unit of any description (excluding collapsible tents) can be 
built or installed, physical access must be available by automobile, 
pick-up truck or equivalent ``on-road'' vehicle.
    (4) At the time of closing, a title insurance binder or title 
opinion reflecting the condition of title must be issued to the 
purchaser showing that, subject only to exceptions approved in writing 
by the purchaser at the time of closing, marketable title is vested in 
the seller.
    (5) Each contract or agreement and any promissory notes--
    (i) Contain the following non-waivable provision in bold face type 
(which must be distinguished from the type used for the rest of the 
document) on the face or signature page above all signatures:

    You have the option to cancel your contract or agreement of sale by 
notice to the seller until midnight of the seventh day following the 
date of signing of the contract or agreement.
    If you did not receive a Lot Information Statement prepared pursuant 
to the rules and regulations of the Interstate Land Sales Registration 
Division, U.S. Department of

[[Page 16]]

Housing and Urban Development, in advance of your signing the contract 
or agreement, the contract or agreement of sale may be cancelled at your 
option for two years from the date of signing.


If the purchaser is entitled to a longer revocation period by operation 
of state or local law, that period becomes the Federal revocation period 
and the contract must reflect the requirement of the longer period 
rather than the seven days. The revocation provisions may not be limited 
or qualified in the contract or other document by requiring a specific 
type of notice or by requiring that notice be given at a specified 
place.
    (ii) Obligate the developer to deliver, within 180 days, a warranty 
deed (or its equivalent under local law) for the lot which at the time 
of delivery is free from any monetary liens or encumbrances.
    (6) The purchaser or purchaser's spouse makes a personal on-the-lot 
inspection of the lot to be purchased before signing a contract.
    (7) The purchaser's payments are deposited in an escrow account 
independent of the developer until a deed is delivered.
    (8) Prior to the purchaser signing a contract or agreement of sale, 
the developer discloses in a written Lot Information Statement all 
liens, reservations, taxes, assessments, easements and restrictions 
applicable to the lot purchased (see paragraph (b)(11) of this section).
    (9) Prior to the purchaser signing a contract or agreement of sale, 
the developer discloses in a written Lot Information Statement the name, 
address and telephone number of the local governmental agency or 
agencies from which information on permits or other requirements for 
water, sewer and electrical installations can be obtained. This 
Statement will also contain the name, address and telephone number of 
the suppliers which would or could provide the foregoing services.
    (10) The lot sale must comply with the anti-fraud provisions of 24 
CFR 1710.4 (b) and (c) and the sales practices and standards in 24 CFR 
1715.10 through 1715.28.
    (11) A written Lot Information Statement must be delivered to, and 
acknowledged by, each purchaser prior to his or her signing a contract 
or agreement of sale, and must contain the information shown in the 
format below. The Statement must be typed or printed in at least 10 
point font. A copy of the acknowledgement will be maintained by the 
developer for three years and will be made available to OILSR upon 
request. If the Statement is not delivered as required, the contract or 
agreement of sale may be revoked and a full refund paid, at the option 
of the purchaser, within two years of the signing date and the contract 
or agreement of sale will clearly provide this right.

                              Sample Format

    (Use of the following headings and first paragraph are mandatory.)

                        Lot Information Statement

            Important: Read Carefully Before Signing Anything

    The developer has obtained a regulatory exemption from registration 
under the Interstate Land Sales Full Disclosure Act. One requirement of 
that exemption is that you must receive this Statement prior to the time 
you sign an agreement (contract) to purchase a lot.

                             Right to Cancel

    (Under this heading the developer is to state the specific 
rescission rights provided for in the contract pursuant to 
1710.15(b)(5)(i)).

                           Risk of Buying Land

    (Under this heading the developer is to list the following 
information:)
    There are certain risks in purchasing real estate that you should be 
aware of. The following are some of those risks:
    The future value of land is uncertain and dependent upon many 
factors. Do not expect all land to automatically increase in value.
    Any value which your lot may have will be affected if roads, 
utilities and/or amenities cannot be completed or maintained.
    Any development will likely have some impact on the surrounding 
environment. Development which adversely affects the environment may 
cause governmental agencies to impose restriction on the use of the 
land.
    In the purchase of real estate, many technical requirements must be 
met to assure that you receive proper title and that you will be able to 
use the land for its intended purpose. Since this purchase involves a

[[Page 17]]

major expenditure of money, it is recommended that you seek professional 
advice before you obligate yourself.
    If adequate provisions have not been made for maintenance of the 
roads or if the land is not served by publicly maintained roads, you may 
have to maintain the roads at your expense.
    If the land is not served by a central sewage system and/or water 
system, you should contact the local authorities to determine whether a 
permit will be given for an on-site sewage disposal system and/or well 
and whether there is an adequate supply of water. You should also become 
familiar with the requirements for, and the cost of, obtaining 
electrical service to the lot.

                          Developer Information

    (Under this heading the developer is to list the following 
information:)

Developer's Name:_______________________________________________________
Address:________________________________________________________________
Telephone Number:_______________________________________________________

                             Lot Information

    (Under this heading the developer is to list the following 
information:)

Lot Location:___________________________________________________________
    (Enter a statement disclosing all liens, reservations, taxes, 
assessments, easements and restrictions applicable to the lot. A copy of 
the restrictions may be attached in lieu of recitation.)

              Suppliers of Utilities and Issuers of Permits

    (Under this heading the developer is to list the name, address and 
phone number of the appropriate governmental agency or agencies, if any, 
that will provide information on permits or other requirements for 
water, sewer and electrical installations. The information will also 
contain the name, address and telephone number of the suppliers of such 
utilities which can provide information to the purchaser on costs and 
availability of such services. A chart similar to the one below may be 
used to supply this information.
    Listed below are contact points for determining permit requirements, 
if any, and to obtain information on approximate costs and availability 
for the listed services:

------------------------------------------------------------------------
                                            Name, Address and Telephone
                                                     Number of
                                         -------------------------------
                                           Governmental
                                              agency         Supplier
------------------------------------------------------------------------
Water...................................
Sewer...................................
Electricity.............................
------------------------------------------------------------------------

    If misrepresentations are made in the sale of this lot to you, you 
may have rights under the Interstate Land Sales Full Disclosure Act. If 
you have evidence of any scheme, artifice or device used to defraud you, 
you may wish to contact: Interstate Land Sales Registration Division, 
HUD Building, Room 6278, 451 Seventh Street, SW., Washington, DC 20410.
    (The Receipt is to be in the following form:)

              Sample Receipt For Lot Information Statement

Purchaser (print or type):______________________________________________
Date:___________________________________________________________________
Signature of purchaser:_________________________________________________
Street Address:_________________________________________________________
City:___________________________________________________________________
State:__________________________________________________________________
Zip:____________________________________________________________________
Name of salesperson (print or type):____________________________________
Signature of salesperson:_______________________________________________

    (c) Request for Multiple Site Subdivision Exemption. (1) The 
developer must file a request for the Multiple Site Subdivision 
Exemption in the following format. The request must be accompanied by a 
filing fee of $500 (prepared in accordance with Sec. 1710.35 (a)) and a 
sample Lot Information Statement.

             Request for Multiple Site Subdivision Exemption

    Developer:
Name:___________________________________________________________________
Address:________________________________________________________________
Telephone No.:__________________________________________________________
    Agent:
Name:___________________________________________________________________
Address:________________________________________________________________
Telephone No.:__________________________________________________________
    (Insert a general description of the developer's method of 
operation.)
    I affirm that I am, or will be the developer of the property and/or 
method of operation described above.
    I affirm that the lots in said property will be sold in compliance 
with all of the requirements of 24 CFR 1710.15.
    I further affirm that the statements contained in all documents 
submitted with this request for an Exemption Order are true and 
complete.
Date:___________________________________________________________________
Signature:______________________________________________________________
Title:__________________________________________________________________
    Warning: 18 U.S.C. 1001 provides, among other things, that whoever 
knowingly and willingly makes or uses a document or writing containing 
any false, fictitious, or fraudulent statement or entry, in any matter 
within the jurisdiction of any department or agency of the United 
States, shall be fined not more than $10,000 or imprisoned for not more 
than 5 years or both.


[[Page 18]]


    (2) This exemption will become effective upon issuance of an 
Exemption Order by the Secretary.
    (d) Annual Report. (1) By January 31 of each year the developer will 
send a report to the Secretary listing each site and its location 
available for a sale pursuant to the exemption during the preceding year 
and indicate the number of lot sales made in each site. The report will 
describe any changes in the information provided in the Request for the 
Multiple Site Subdivision Exemption or contain a statement that there 
are no changes.
    (2) The Annual Report must be accompanied by a filing fee of $100.
    (3) The Annual Report must be signed and dated by the developer, 
attesting to its completeness and accuracy.
    (4) Failure to submit the Annual Report within ten days after the 
receipt of notice from the Secretary will automatically terminate 
eligibility for the exemption as of the Report due date.
    (e) Termination. If, subsequent to the issuance of an Exemption 
Order, the Secretary has reasonable grounds to believe that exemption 
from the registration requirements in the particular case is not in the 
public interest, the Secretary may, after issuing a notice and giving 
the respondent an opportunity to request a hearing within fifteen days 
of receipt of the notice, terminate the exemption order. The basis for 
issuing a notice may be apparent omissions or misrepresentations in the 
documents submitted to the Secretary, the conduct of the developer or 
agent, such as unlawful conduct or insolvency, or adverse information 
about the real estate that should be disclosed to purchasers. 
Proceedings will be governed by 24 CFR 1720.238.

[54 FR 40866, Oct. 4, 1989]



Sec. 1710.16  Regulatory exemption--determination required.

    (a) General. The Secretary may exempt from the registration 
requirements of the Act any subdivision or lots in a subdivision by 
issuing an order in writing if it is determined that registration is not 
necessary in the public interest and for the protection of purchasers on 
the basis of the small amount or limited character of the offering and 
the requirements contained in paragraph (b) of this section.
    (b) Eligibility requirements. An exemption order may be issued at 
the discretion of the Secretary on the basis of the small amount or 
limited character of the offering if the following requirements are met:
    (1) The subdivision or sales substantially meet the requirements of 
one of the exemptions available under this chapter.
    (2) Each contract--
    (i) Specifies the developer's and purchaser's responsibilities for 
providing and maintaining roads, water and sewer facilities and any 
existing or promised amenities;
    (ii) Contains a good faith estimate of the year in which the roads, 
water and sewer facilities and promised amenities will be completed;
    (iii) Contains a non-waivable provision giving the purchaser the 
opportunity to revoke the contract until at least midnight of the 
seventh calendar day following the date the purchaser signed the 
contract. If the purchaser is entitled to a longer revocation period by 
operation of State law, that period becomes the Federal revocation 
period and the contract must reflect the requirements of the longer 
period.
    (iv) Contains a provision that obligates the developer to deliver to 
the purchaser within 180 days of the date the purchaser signed the sales 
contract, a warranty deed, or its equivalent under local law, which at 
the time of delivery is free from any monetary liens or encumbrances.
    (3) The purchaser or purchaser's spouse makes a personal on-the-lot 
inspection of the lot to be purchased before signing a contract.
    (4) The developer files a request for an exemption order and 
supporting documentation in accordance with paragraphs (c) and (d) of 
this section and submits a filing fee of $500.00 in accordance with 
Sec. 1710.35(a) of this part. This fee is not refundable.
    (c) Request. The request for an Exemption Order must be in the 
following format:

                       Request for Exemption Order

Subdivision_____________________________________________________________
Location (including county)_____________________________________________
Developer_______________________________________________________________

[[Page 19]]

Address_________________________________________________________________
Authorized Agent or President of Developer______________________________
________________________________________________________________________
Address_________________________________________________________________
Number of Lots Subject to Exemption Request_____________________________
Description of Lots (list lot and block number or other identifying 
designation)____________________________________________________________
________________________________________________________________________
    I affirm that I am the developer or owner of the property described 
above or will be the developer or owner at the time the lots are offered 
for sale to the public, or that I am the agent authorized by the 
developer or owner to complete this statement.
    I further affirm that the statements contained in all documents 
submitted with the request for an exemption order are true and complete.

________________________________________________________________________
(Date)
________________________________________________________________________
(Signature of Developer, Owner or Authorized Agent)
________________________________________________________________________
(Title)

    Warning: Section 1418 of the Housing and Urban Development Act of 
1968 (83 Stat. 598, 15 U.S.C. 1717 as amended) provides: ``any person 
who willfully violates any of the provisions of this title or the rules 
and regulations prescribed pursuant thereto * * *, shall upon conviction 
be fined not more than $10,000.00 or imprisoned not more than five 
years, or both.''

    (d) Supporting documentation. A request for an exemption order must 
be accompanied by the following documentation:
    (1) A plat of the entire subdivision with the lots subject to the 
exemption request delineated thereon.
    (2) A copy of the contract to be used.
    (3) A clear and specific statement detailing how the proposed sales 
of lots subject to the exemption request substantially complies with one 
of the available exemption provisions.
    (4) A description of the method by which the lots have been and will 
be promoted and to which population centers the promotion has been and 
will be directed.
    (e) The sale must also comply with the anti-fraud provisions of 
Sec. 1710.4 (b) and (c) of this part.
    (f) Termination. If, subsequent to the issuance of an exemption 
order, the Secretary has reasonable grounds to believe that exemption 
from the registration requirements in the particular case is not in the 
public interest, the Secretary may, after issuing a notice and giving 
the respondent an opportunity to request a hearing within fifteen days 
of receipt of the notice, terminate the exemption order. The basis for 
issuing a notice may be apparent omissions or misrepresentations in the 
documents submitted to the Secretary, the conduct of the developer or 
agent, such as unlawful conduct or insolvency, or adverse information 
about the real estate that should be disclosed to purchasers. 
Proceedings will be governed by Sec. 1720.238.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31370, 31373, Aug. 6, 
1984]



Sec. 1710.17  Advisory opinion.

    (a) General. A developer may request an opinion from the Secretary 
as to whether an offering qualifies for an exemption or is subject to 
the jurisdiction of the Act.
    (b) Requirements. All requests for Advisory Opinions must be 
accompanied by the following:
    (1) A $500.00 filing fee submitted in accordance with 
Sec. 1710.35(a). This fee is not refundable.
    (2) A comprehensive description of the conditions and operations of 
the offering. There is no prescribed format for submitting this 
information, but the developer should at least cite the applicable 
statutory or regulatory basis for the exemption or lack of jurisdiction 
and thoroughly explain how the offering either satisfies the 
requirements for exemption or falls outside the purview of the Act.
    (3) An affirmation as shown below:

                         Developer's Affirmation

Name of Subdivision_____________________________________________________
Location (Including County and State)___________________________________
Name of Developer_______________________________________________________
Address of Developer____________________________________________________
Name of Agent___________________________________________________________
Address of Agent________________________________________________________
Number of Lots in Subdivision___________________________________________
Number of Acres in Subdivision__________________________________________

    I affirm that I am the developer or owner of the property described 
above or will be the developer or owner at the time the lots are offered 
for sale to the public, or that I am the agent authorized by the 
developer or owner to complete this statement.
    I further affirm that the statements contained in all documents 
submitted with the request for an Advisory Opinion are true and 
complete.


[[Page 20]]


________________________________________________________________________
(Date)
________________________________________________________________________
(Signature)
________________________________________________________________________
(Title)

    Warning: Section 1418 of the Housing and Urban Development Act of 
1968 (83 Stat. 598, 15 U.S.C. 1717 as amended) provides: ``Any person 
who willfully violates any of the provisions of this title or the rules 
and regulations prescribed pursuant thereto * * *, shall upon conviction 
be fined not more than $10,000.00 or imprisoned not more than five 
years, or both.''

[45 FR 40479, June 13, 1980, as amended at 49 FR 31370, 31373, Aug. 6, 
1984]



Sec. 1710.18  No action letter.

    (a) If the sale of lots is subject to the registration requirements 
of the Act but the circumstances of the sale are such that no 
affirmative action to enforce the registration requirements is needed to 
protect the public interest or prospective purchasers, the Secretary may 
issue a No Action Letter.
    (b) To obtain a No Action Letter a developer must submit a request 
which includes a thorough description of the proposed transaction, the 
property involved, and the circumstances surrounding the sale.
    (c) The issuance of a No Action Letter will not affect any right 
which a purchaser has under the Act, and it will not limit future action 
by the Secretary if there is evidence to show that affirmative action is 
necessary to protect the public interest or prospective purchasers. In 
no event will a No Action Letter be issued after the sale has occurred.

[45 FR 40479, June 13, 1980]



Sec. 1710.20  Requirements for registering a subdivision--Statement of Record--filing and form.

    (a) Filing. In order to register a subdivision and receive an 
effective date, the developer or owner of the subdivision must file a 
Statement of Record with the Secretary. The official address to be used 
is:

Office of Interstate Land Sales Registration, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Washington, DC 20410.


When the Statement of Record is filed, a fee in the amount set out in 
Sec. 1710.35(b) must be paid in accordance with Sec. 1710.35(a).
    (b) Form. The Statement of Record shall be in the format specified 
in Sec. 1710.100 and shall be completed in accordance with the 
instructions in Secs. 1710.102, 1710.105 through 1710.118, 1710.200, 
1710.208 through 1710.216 and 1710.219. It shall be supported by the 
documents required by Secs. 1710.208 through 1710.216 and 1710.219. It 
shall include any other information or documents which the Secretary may 
require as being necessary or appropriate for the protection of 
purchasers.
    (c) State filings. A Statement of Record submitted under the 
provisions of 24 CFR part 1710, subpart C--Certification of 
Substantially Equivalent State Law, shall consist of the materials 
designated by the Certification Agreement between the Secretary and the 
certified State in which the subdivision is located.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979, as amended at 50 FR 10942, Mar. 19, 1985; 
63 FR 54332, Oct. 8, 1998]



Sec. 1710.21  Effective dates.

    (a) General. The effective date of an initial, consolidated or 
amended Statement of Record is the 30th day after the filing of the 
latest amendatory material unless the Secretary notifies the developer 
in writing prior to such 30th day that:
    (1) The effective date has been suspended in accordance with 
Sec. 1710.45(a), or
    (2) An earlier effective date has been determined.
    (b) Suspension of effective date by developer. (1) A developer, or 
owner, may request that the effective date of its Statement of Record be 
suspended, provided there are no administrative proceedings pending 
against either of them at the time the request is submitted. The request 
must include any consolidations or amendments which have been made to 
the initial Statement of Record. Forms for this purpose will be 
furnished by the Secretary upon request.

[[Page 21]]

    (2) Upon acceptance by the Secretary, the effectiveness of the 
Statement of Record shall be suspended as of the date the request was 
executed by the developer or owner.
    (3) The suspension shall continue until the developer, or owner, 
submits all amendments necessary to bring the registration into full 
compliance with the Regulations which are in effect on the date of the 
amendments and the Secretary allows those amendments to become 
effective.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979, as amended at 49 FR 31370, Aug. 6, 1984]



Sec. 1710.22  Statement of record--initial or consolidated.

    (a) Initial Statement of Record. (1) Except in the case of exempt 
transactions, an initial Statement of Record shall be filed, and an 
effective date issued, prior to selling or leasing any lot in a 
subdivision.
    (2) If a developer buys from another developer 100 or more lots from 
an existing registration, the new developer, or owner, may have to 
submit a new initial Statement of Record and receive an effective date 
covering the acquired lots prior to selling or leasing any of those 
lots.
    (3) Changes in principals due to a sale of stock in a corporation or 
changes in partners or joint venturers which are accomplished in 
accordance with the partnership or joint venture agreement but which do 
not cause a change in the title to the land in the subdivision may be 
submitted as an amendment.
    (4) Any initial Statement of Record must be accompanied by a fee, as 
specified in Sec. 1710.35(b), based upon the number of lots sought to be 
registered.
    (b) Consolidated Statement of Record. (1) If the developer intends 
to sell or lease additional lots as part of the same common promotional 
plan with lots already registered, a consolidated Statement of Record 
may be submitted for the additional lots. A fee, as specified in 
Sec. 1710.35(b) and based on the number of additional lots, must 
accompany the submission. The additional lots may not be sold or leased 
until a new effective date is issued.
    (2) If the additional lots are simply the result of a replatting of 
lots previously registered and enumerated in the Property Report and do 
not include any additional land, the change may be made by an amendment. 
However, the amendment must be accompanied by a fee, as specified in 
Sec. 1710.35(b), based on the number of additional lots.
    (c) Consolidated Statement of Record--Form. A consolidated Statement 
of Record shall contain:
    (1) Those pages of the Property Report portion and Additional 
Information and Documention portion which contain changes which have 
occurred since the last effective submission, and
    (2) A recapitulation or listing of each of the section headings, and 
subheadings if necessary, of the Additional Information and 
Documentation portion. Each item of the listing shall contain a 
statement as to whether or not any change is made in the section; 
whether any new or additional information is being submitted and, if 
documentation is incorporated by cross reference, the previous 
submission in which that documentation may be found, and
    (3) Documentation to support the additional lots (e.g., plat maps, 
topographic maps and general plan to reflect new lots, title 
information, permits for additional facilities, financial assurances of 
completion of additional facilities, financial statements) or updated or 
expanded documents in support of previous submissions, and
    (4) The affirmation required by Sec. 1710.219.

Pages having no changes and documents in previous submissions which 
apply equally to the additional lots may be incorporated by reference. 
However, the developer may, at its option, submit the entire format for 
an initial filing, including copies of previously submitted documents, 
to expedite the examination process.
    (d) Consolidated Statement of Record amends prior Statement of 
Record. A Consolidated Statement of Record shall contain all applicable 
information for all registered lots in the subdivision except those 
deleted pursuant to other provisions in these regulations. The resulting 
Property Report shall be used for all sales in the subdivision, except

[[Page 22]]

for those transactions which are exempt from the provisions of the Act 
or which have been granted an exempt status by the Secretary, unless the 
Secretary has specifically authorized the use of multiple Property 
Reports.
    (e) Initial Statement of Record--when prior approval to submit is 
required. In those subdivisions where there is a disparity between the 
lots already registered and those sought to be registered because of 
location, terrain, proposed use of the lots or the amenities to be 
furnished or available, the developer may present a resume of the 
differences and request the Secretary's permission to file a separate 
initial Statement of Record for the additional lots. Upon consideration 
of the facts submitted, the Secretary may allow such a procedure.
    (f) Lots which have been deleted from registration. Should the 
developer, for any reason, delete by amendment any registered lots from 
an effective Statement of Record, those lots must be reregistered by a 
consolidation and a new effective date issued, before they can be sold 
or leased. An appropriate fee must accompany the submission.
    (g) Lots sold to individual purchasers. It is not necessary to 
delete from the registration those lots which have been sold to 
individual purchasers for their own use.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979, as amended at 45 FR 40488, June 13, 1980]



Sec. 1710.23  Amendment--filing and form.

    (a) Filing. If any change occurs in any representation of material 
fact required to be stated in an effective Statement of Record, an 
amendment shall be filed. The amendment shall be filed within 15 days of 
the date on which the developer knows, or should have known, that there 
has been a change in material fact.
    (b) Form. An amendment shall incorporate by reference the prior 
Statement of Record except for any changes in material fact. A change in 
material fact shall be specifically described and supported by the same 
documentation which would be required for an initial submission. Any 
amendment shall be accompanied by:
    (1) A letter from the developer giving a clear and concise 
description of the purpose and significance of the amendment and 
referring to the section and page of the Statement of Record which is 
being amended, and
    (2) All pages of the Statement of Record, which have been amended, 
retyped in the required format to reflect the changes. The OILSR number 
of the Statement of Record shall appear at the top of each page of the 
material submitted.
    (c) Amendments to suspended filings. Developers wishing to 
reactivate a suspended filing shall file the following:
    (1) Any amendments necessary to bring the filing into compliance, 
submitted in accordance with paragraphs (a) and (b) of this section;
    (2) An activity report in the form prescribed by Sec. 1710.310; and
    (3) An amendment fee, if required under Sec. 1710.35(d)(2).

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979, as amended at 49 FR 31373, Aug. 6, 1984]



Sec. 1710.29  Use of property report--misstatements, omissions or representation of HUD approval prohibited.

    Nothing is these regulations shall be construed to authorize or 
approve the use of a property report containing any untrue statement of 
a material fact or omitting to state a material fact required to be 
stated therein. Nor shall anything in these regulations be construed to 
authorize or permit any representation that the Property Report is 
prepared or approved by the Secretary, OILSR or the Department of 
Housing and Urban Development.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979]



Sec. 1710.35  Payment of fees.

    (a) Method of payment. (1) Each fee must be paid by:
    (i) Certified check, cashier's check, or postal money order made 
payable to the Treasurer of the United States, with the registration 
number, when known, and the name, of the subdivision on the face of the 
check, and

[[Page 23]]

mailed to an address specified by the Secretary; or
    (ii) Electronic payment in a manner specified by the Secretary.
    (2) Information regarding the current mailing address or electronic 
payment procedures is available from: HUD, Office of Interstate Land 
Sales/RESPA Division, Room 9156, 451 7th St., SW., Washington, DC 20410.
    (b) Fees for registration. The fee for each initial and consolidated 
registration is set forth in the following schedule:

------------------------------------------------------------------------
                        Number of lots                            Fees
------------------------------------------------------------------------
200 or fewer lots.............................................      $800
201 or more lots..............................................    $1,000
------------------------------------------------------------------------

    (c) Fee for Exemption Order or Advisory Opinion. The filing fee for 
an Exemption Order or an Advisory Opinion (Sec. 1710.16 or Sec. 1710.17) 
is $500. This fee is not refundable.
    (d) Amendment fee. (1) A fee of $800 is charged when an Annual 
Activity Report reflects an annual ending inventory of 101 or more 
unsold registered lots.
    (2) A fee of $800 is charged for an amendment to reactivate a 
Statement of Record subsequent to its suspension, unless the developer 
has 100 or fewer unsold lots included in the Statement of Record.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979, as amended at 49 FR 31373, Aug. 6, 1984; 63 
FR 54332, Oct. 8, 1998]



Sec. 1710.45  Suspensions.

    (a) Suspension notice--prior to effective date. (1) If it appears to 
the Secretary that a Statement of Record or an amendment is on its face 
incomplete or inaccurate in any material respect, the Secretary shall so 
advise the developer, by issuing a suspension notice, within a 
reasonable time after the filing of such materials but prior to the time 
the materials would otherwise be effective.
    (2) A suspension notice issued pursuant to this subsection shall 
suspend the effective date of the Statement of Record or the amendment. 
It shall continue in effect until 30 days, or such earlier date as the 
Secretary may determine, after the necessary amendments are submitted 
which correct all deficiencies cited in the notice.
    (3) Upon receipt of a suspension notice, the developer has 15 days 
in which to request a hearing. If a hearing is requested, it shall be 
held within 20 days of the receipt of the request by the Secretary.
    (b) Suspension orders--subsequent to effective date. (1) A notice of 
proceedings to suspend an effective Statement of Record may be issued to 
a developer if the Secretary has reasonable grounds to believe that an 
effective Statement of Record includes an untrue statement of a material 
fact, or omits a material fact required by the Act or rules and 
regulations, or omits a material fact which is necessary to make the 
statements therein not misleading. The Secretary may, after notice, and 
after opportunity for a hearing requested pursuant to Sec. 1720.220 
within 15 days of receipt of such notice, issue an order suspending the 
Statement of Record. In the event that a suspension order is issued, 
such order shall remain in effect until the developer has amended the 
Statement of Record or otherwise complied with the requirements of the 
order. When the developer has complied with the requirements of the 
order, the Secretary shall so declare and thereupon the suspension order 
shall cease to be effective.
    (2) If the Secretary undertakes an examination of a developer or its 
records to determine whether a suspension order should be issued, and 
the developer fails to cooperate with the Secretary or obstructs, or 
refuses to permit the Secretary to make such examination, the Secretary 
may issue an order suspending the Statement of Record. Such order shall 
remain in effect until the developer has complied with the requirements 
of the order. When the developer has complied with the requirements of 
the order, the Secretary shall so declare and thereupon the suspension 
order shall cease to be effective. In accordance with the procedure 
described in Sec. 1720.235, a hearing may be requested.
    (3) Upon receipt of an amendment to an effective Statement of 
Record, the Secretary may issue an order suspending the Statement of 
Record until

[[Page 24]]

the amendment becomes effective if the Secretary has reasonable grounds 
to believe that such action is necessary or appropriate in the public 
interest or for the protection of purchasers. In accordance with the 
procedure described in Sec. 1720.235, a hearing may be requested.
    (4) Suspension orders issued pursuant to this subsection shall 
operate to suspend the Statement of Record as of the date the order is 
either served on the developer or its registered agent or is delivered 
by certified or registered mail to the address of the developer or its 
authorized agent.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979]



                    Subpart B--Reporting Requirements

    Authority: Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et 
seq., unless otherwise noted.

    Source: 44 FR 21453, Apr. 10, 1979, unless otherwise noted.



Sec. 1710.100  Statement of Record--format.

    (a) The Statement of Record consists of two portions; the Property 
Report portion and the Additional Information and Documentation portion.
    (b) General format. The Statement of Record shall be prepared in 
accordance with the following format:

                             Property Report

                       Heading and Section Number

Cover Sheet.....................................................1710.105
Table of Contents...............................................1710.106
Risks of Buying Land, Warnings..................................1710.107
General Information.............................................1710.108
Title and Land Use..............................................1710.109

    (a) General Instructions
    (b) Method of Sale
    (c) Encumbrances, Mortgages and Liens
    (d) Recording the Contract and Deed
    (e) Payments
    (f) Restrictions
    (g) Plats, Zoning, Surveying, Permits, Environment

Roads...........................................................1710.110
Utilities.......................................................1710.111

    (a) Water
    (b) Sewer
    (c) Electricity
    (d) Telephone
    (e) Fuel or other Energy Source

Financial Information...........................................1710.112
Local Services..................................................1710.113
Recreational Facilities.........................................1710.114
Subdivision Characteristics and Climate.........................1710.115

    (a) General Topography
    (b) Water Coverage
    (c) Drainage and Fill
    (d) Flood Plain
    (e) Flooding and Soil Erosion
    (f) Nuisances
    (g) Hazards
    (h) Climate
    (i) Occupancy

Additional Information..........................................1710.116

    (a) Property Owners' Association
    (b) Taxes
    (c) Violations and Litigation
    (d) Resale or Exchange Program
    (e) Unusual Situations
    1. Leases
    2. Foreign Subdivision
    3. Time Sharing
    4. Membership
    (f) Equal Opportunity in Lot Sales
    (g) Listing of lots

Cost Sheet......................................................1710.117
Receipt, Agent Certification and Cancellation Page..............1710.118

                Additional Information and Documentation

General Information.............................................1710.208
Title and Land Use..............................................1710.209
Roads...........................................................1710.210
Utilities.......................................................1710.211
Financial Information...........................................1710.212
Recreational Facilities.........................................1710.214
Subdivision Characteristics.....................................1710.215
Additional Information..........................................1710.216
Affirmation.....................................................1710.219

(Approved by the Office of Management and Budget under control number 
2502-0243)

[44 FR 21453, Apr. 10, 1979, as amended at 49 FR 31370, Aug. 6, 1984; 49 
FR 33644, Aug. 24, 1984]



Sec. 1710.102  General instructions for completing the Statement of Record.

    (a) Paper and type. The Statement of Record shall be on good 
quality, unglazed white or pastel paper. Letter size paper, 
approximately 8x11 inches in size, will be used for the Property Report 
portion and legal size paper, approximately 8\1/2\x14 inches in size, 
will be used for the Additional Information and Documentation portion. 
Side margins shall be no less than 1 inch and no greater than 1\1/2\ 
inches. Top and bottom margins shall be no less than 1

[[Page 25]]

inch. In the preparation of the charts to be included in the Property 
Report, the developer may vary from the above margin requirements or 
print the charts lengthwise on the required size paper if such measures 
are necessary to make the charts readable. The Statement of Record shall 
be prepared in an easily readable style of elite or pica or similar type 
of uniform font in blue, black or blueblack ink.
    (b) Numbering and dating. Each page of the Statement of Record as 
submitted to OILSR shall be numbered and shall include the date of 
typing or preparation in the lower right hand corner, except in the 
final printed version of the Property Report portion.
    (c) Signing. The Statement of Record shall be signed by the senior 
executive officer of the developer or a designated agent.
    (d) Printing. The Statement of Record and, insofar as practical, all 
papers and documents filed as a part thereof, shall be printed, 
lithographed, photocopied, typewritten or prepared by any similar 
process which, in the opinion of the Secretary, produces copies suitable 
for a permanent record. Irrespective of the process used, all copies of 
any such materials shall be clear and easily readable.
    (e) Headings, subheadings, captions, introductory paragraphs, 
warnings. Property Report subject ``headings'' are those descriptive 
introductory words which appear immediately after section numbers 
1710.106 through 1710.116 (e.g. Sec. 1710.108 has ``General 
Information'' and Sec. 1710.111 has ``Utilities''). Each such heading 
shall be printed in the Property Report in underlined capital letters 
and centered at the top of a new page. Section numbers shall not be 
printed in the Property Report. Property Report subheadings are those 
descriptive introductory words which appear in italics in the 
regulations at the beginning of paragraphs designated by paragraph 
letters (a), (b), (c) etc. An example of a subheading is ``water'' found 
immediately after the paragraph letter (a) in Sec. 1710.111. These 
subheadings will be printed in the Property Report only if they are 
relevant to the subject subdivision. If printed these subheadings shall 
be capitalized and shall begin at the left hand margin of the page. 
Property Report ``captions'' are those descriptive introductory words 
which appear in italics in the Regulations at the beginning of 
subparagraphs designated by numbers (1), (2), (3), etc. An example of 
such captions is ``Sales Contract and Delivery of Deed'' found 
immediately after the subparagraph number ``(1)'' in Sec. 1710.109 (b). 
These captions are to be printed in the Property Report only if they are 
applicable to the subject subdivision. If printed, these captions shall 
be centered on the page from the side margins, and shall have only the 
first letter of each word capitalized. Headings and subheadings will be 
used in the Property Report in accordance with the sample page appearing 
in Sec. 1710.102. Introductory paragraphs will follow headings if they 
are applicable and necessary for a readable entry into the subject 
matters, but note, the introductory paragraphs for ``Title to the 
Property and Land Use'' are to be used in every case as provided in 
Sec. 1710.109(a)(1). Subheadings and captions which do not apply to the 
subdivision should be omitted from the Property Report portion and 
answered ``not applicable'' in the Additional Information and 
Documentation portion, unless specifically required to be included 
elsewhere in these instructions. Warnings shall be printed substantially 
as they appear in the instructions in Secs. 1710.105 through 1710.118. 
They shall be printed in capital letters and enclosed in a box as shown 
on the sample page in Sec. 1710.102. The paragraphs in the Property 
Report portion need not be numbered.

[[Page 26]]

                                     

                               Sample Page

                                  roads

    Here we discuss the roads that lead to the subdivision, those within 
the subdivision and the location of nearby communities.

ACCESS TO THE SUBDIVISION.

    County road 43 leads to the subdivision. It has two lanes 
and the width of the wearing surface is 22 feet. It's paved with a 
macadam surface.

    This road is maintained by Bottineau County with County funds. No 
improvements are planned at this time.

ACCESS WITHIN THE SUBDIVISION.

    The roads within the subdivision will be located on rights of way 
dedicated to the public.

    We are responsible for constructing the interior roads. There will 
be no additional cost to you for this construction.

    WE HAVE NOT SET ASIDE ANY FUNDS IN AN ESCROW OR TRUST ACCOUNT OR 
MADE ANY OTHER FINANCIAL ARRANGEMENTS TO ASSURE COMPLETION OF THE ROADS, 
SO THERE IS NO ASSURANCE WE WILL BE ABLE TO COMPLETE THE ROADS.

    At present, the roads are under construction and do not provide 
access to the lots in Units 2 and 3 during wet weather. The succeeding 
chart describes their present condition and estimated completion dates.

----------------------------------------------------------------------------------------------------------------
                                         Percentage
                    Estimated starting       of            Estimated
       Unit           date (month and   construction    completion date     Present surface      Final surface
                           year)        now complete   (month and year)
----------------------------------------------------------------------------------------------------------------
1.................  February 1979.....           50   December 1979.....  Gravel............  Asphalt.
2.................  August 1979.......            0   June 1980.........  Dirt..............      Do.
3.................  April 1980........            0   October 1980......  None..............      Do.
----------------------------------------------------------------------------------------------------------------

    (f) Language style. All information given in the Property Report 
portion shall be stated in narrative form using plain, concise, everyday 
language which can be readily understood by purchasers who are 
unfamiliar with real estate transactions. Excessively long paragraphs 
should be avoided. Keep them as brief as possible. Use separate 
paragraphs for different points discussed. Disclose all pertinent facts. 
Potential consequences to a purchaser must be made clear even though not 
specifically asked for in the format and the instructions. In the 
Property Report the pronouns ``you'' and ``your'' shall generally be 
used in referring to

[[Page 27]]

the prospective purchaser and the pronouns ``we'', ``us'', and ``our'' 
shall generally be used in referring to the developer. The Secretary 
specifically reserves the right to require modification of the text when 
the narrative does not meet the standards of this section.
    (g) Format of the Additional Information and Documentation portion 
of the Statement of Record. The supporting information and documentation 
required by these regulations shall be identified by affixing a tab on 
the right side of the cover sheet of the required information or 
documentation and by identifying on the tab the section number of the 
Statement of Record instructions to which the information or 
documentation corresponds. This information or documentation shall then 
be placed immediately after the page(s) on which the section number and 
answers for that section appear. If the data in a document is applicable 
to more than one section of instructions, the developer may substitute 
as a document in the second case a statement incorporating the earlier 
document by reference. Deeds, title policies, subdivision plats or maps 
and other documentary information required to be contained in the 
Additional Information and Documentation portion of the Statement of 
Record need not be on the same size paper as the Statement of Record 
but, if larger, shall be folded to a size no larger than 8\1/2\x14 
inches. Supporting documents shall be inserted into the binding in such 
a manner as to permit them to be examined without the necessity of 
removing them from the binding. This may be accomplished by proper 
folding or through the use of envelopes.
    (h) Binding. The Statement of Record shall be bound with the 
Property Report portion on top, including any documents which may be 
required to be attached when delivered to the purchaser, followed by the 
Additional Information and Documentation portion.
    (i) Advertising and promotional material. No advertising, or 
promotional material or statements which are self-serving on behalf of 
the developer or owner may be included in the Statement of Record or 
resulting Property Report.
    (j) Additional information. (1) In addition to the information 
expressly required to be stated in the Statement of Record, there shall 
be added, and the Secretary may require, such further material 
information, documentation and certification as may be necessary in the 
public interest and for the protection of purchasers or necessary in 
order to make the statements not misleading in the light of 
circumstances under which they are made.
    (2) The instructions are not all inclusive. The developer shall 
include any other facts which would have a bearing upon the use by the 
purchaser of any of the facilities, services or amenities; which would 
cause or result in additional expenses to the purchaser; which would 
have an effect upon the use and enjoyment of the lot by the purchaser 
for the purpose for which it is sold or which would adversely affect the 
value of the lot.
    (k) Modification of format or content. The Secretary may require or 
permit modification to the content and format of the Property Report to 
include additional information, to modify or omit required information, 
or to change the sequence or position of information when such changes 
are deemed to be in the public interest or for the protection of 
purchasers.
    (l) Required documentation. Where the documentation required by the 
Statement of Record cannot be obtained, the Secretary may permit the 
best available alternative documentation to be substituted.
    (m) Final version of property report. On the date that a Statement 
of Record becomes effective, the Property Report portion shall become 
the Property Report for the subject subdivision. The version of the 
Property Report delivered to prospective lot purchasers shall be 
verbatim to that found effective by the Secretary and shall have no 
covers, pictures, emblems, logograms or identifying insignia other than 
as required by these regulations. It shall meet the same standards as to 
grade of paper, type size, margins, style and color of print as those 
set herein for the Statement of Record, except where required otherwise 
by these regulations. However, the date of typing or preparation of the 
pages and the OILSR number

[[Page 28]]

shall not appear in the final version. If the final version of the 
Property Report is commercially printed, or photocopied by a process 
which results in a commercial printing quality, and is bound on the left 
side, both sides of the pages may be used for printed material. If it is 
typed or photocopied by a process which does not result in a clear and 
legible product on both sides of the page or is bound at the top, 
printing shall be done on only one side of the page. Three copies of the 
final version of the Property Report, in the exact form in which it is 
delivered to prospective lot purchasers, shall be sent to this Office 
within 20 days of the date on which the Statement of Record, amendment, 
or consolidation is allowed to become effective by the Secretary. If a 
Property Report in a foreign language is used as required by 
Sec. 1715.25(g), three copies of that Property Report together with 
copies of the translated documents shall be furnished the Secretary 
within 20 days of the date on which the advertising is first used. A 
Property Report prepared pursuant to these regulations shall not be 
distributed to potential lot purchasers until after the Statement of 
Record of which it is a part or any amendment to that Statement of 
Record has been made effective by the Secretary.

(Approved by the Office of Management and Budget under control number 
2502-0243)

[44 FR 21453, Apr. 10, 1979, as amended at 45 FR 40488, June 13, 1980; 
49 FR 31370, Aug. 6, 1984; 49 FR 33644, Aug. 24, 1984]



Sec. 1710.103  Developer obligated improvements.

    (a) If the developer represents either orally or in writing that it 
will provide or complete roads or facilities for water, sewer, gas, 
electricity or recreational amenities, it must be contractually 
obligated to do so (see Sec. 1715.15(f)), and the obligation shall be 
clearly stated in the Property Report. While the developer may disclose 
relevant facts about completion, the obligation to complete cannot be 
conditioned, other than as provided for in Sec. 1715.15(f), and an 
estimated completion date (month and year) must be stated in the 
Property Report. However, a developer that has only tentative plans to 
complete may so state in the Property Report, provided that the 
statement clearly identifies conditions to which the completion of the 
facilities are subject and states that there are no guarantees the 
facilities will be completed.
    (b) If a party other than the developer is responsible for providing 
or completing roads or facilities for water, sewer, gas, electricity or 
recreational amenities, that entity shall be clearly identified in the 
Property Report under the categories described in Sec. 1710.110, 
Sec. 1710.111 or Sec. 1710.114, as applicable. A statement shall be 
included in the proper section of the Property Report that the developer 
is not responsible for providing or completing the facility or amenity 
an can give no assurance that it will be completed or available for use.

[49 FR 31370, Aug. 6, 1984]



Sec. 1710.105  Cover page.

    The cover page of the Property Report shall be prepared in 
accordance with the following directions:
    (a) The margins shall be at least 1 inch.
    (b) The next 3 inches shall contain a warning, centered, in \1/2\ 
inch capital letters in red type with \1/4\ inch space between the lines 
which reads as follows:

            READ THIS PROPERTY REPORT BEFORE SIGNING ANYTHING

    (c) The remainder of the page shall contain the following paragraphs 
beginning \1/4\ inch below the last line of the warning:

    This Report is prepared and issued by the developer of this 
subdivision. It is not prepared or issued by the Federal Government.
    Federal law requires that you receive this Report prior to your 
signing a contract or agreement to buy or lease a lot in this 
subdivision. However, NO FEDERAL AGENCY HAS JUDGED THE MERITS OR VALUE, 
IF ANY, OF THIS PROPERTY.
    If you received this Report prior to signing a contract or 
agreement, you may cancel your contract or agreement by giving notice to 
the seller any time before midnight of the seventh day following the 
signing of the contract or agreement.
    If you did not receive this Report before you signed a contract or 
agreement, you

[[Page 29]]

may cancel the contract or agreement any time within two years from the 
date of signing.

Name of Subdivision_____________________________________________________
Name of Developer_______________________________________________________
Date of This Report_____________________________________________________

    (d)(1) If the purchaser is entitled to a longer revocation period by 
operation of State law, that period becomes the Federal revocation 
period and the Cover Page must reflect the requirements of the longer 
period, rather than the seven days.
    (2)(i) If a deed is not delivered within 180 days of the signing of 
the contract or agreement of sale or unless certain provisions are 
included in the contract or agreement, the purchaser is entitled to 
cancel the contract within two years from the date of signing the 
contract or agreement.
    (ii) The deed must be a warranty deed, or where such a deed is not 
commonly used, a similar deed legally acceptable in the jurisdiction 
where the lot is located. The deed must be free and clear of liens and 
encumbrances.
    (iii) The contract provisions are:
    (A) A legally sufficient and recordable lot description; and
    (B) A provision that the seller will give the purchaser written 
notification of purchaser's default or breach of contract and the 
opportunity to have at least 20 days from the receipt of notice to 
correct the default or breach; and
    (C) A provision that, if the purchaser loses rights and interest in 
the lot because of the purchaser's default or breach of contract after 
15% of the purchase price, exclusive of interest, has been paid, the 
seller shall refund to the purchaser any amount which remains from the 
payments made after subtracting 15% of the purchase price, exlusive of 
interest, or the amount of the seller's actual damages, whichever is the 
greater.
    (iv) If a deed is not delivered within 180 days of the signing of 
the contract or if the necessary provisions are not included in the 
contract, the following statement shall be used in place of any other 
recision language:

    Under Federal law you may cancel your contract or agreement of sale 
any time within two years from the date of signing.

    (e) At the time of submission, the developer may indicate its 
intention to comply with the red printing by an illustration or by a 
statement to that effect.
    (f) The ``Date of This Report'' shall be the date on which the 
Secretary allows the Statement of Record to become effective and shall 
not be entered until the submission has become effective.

(Sec. 1419, Interstate Land Sales Full Disclosure Act, 82 Stat. 590, 
598; 15 U.S.C. 1718; sec. 7(d), Dept. of Housing and Urban Development 
Act, 42 U.S.C. 3535(d))

[45 FR 40489, June 13, 1980]



Sec. 1710.106  Table of contents.

    (a) The second page(s) shall consist of a Table of Contents which 
lists the headings in the Property Report, the major subheadings, if 
any, and the page on which they appear. For example, the entry for Title 
and Land Use would appear as follows:

Title and Land Use  Page 
Method of Sale
Encumbrances, Mortgages and Liens
Recording the Contract and Deed
Payments
Restrictions on the Use of Your Lot
Plat Maps, Zoning, Surveying, Permits and Environment

    (b) Use of ``You'' and ``We''. At the end of the Table of Contents 
insert the following remark:

    ``In this Property Report, the words ``you'' and ``your'' refer to 
the buyer. The words ``we'', ``us'' and ``our'' refer to the 
developer.''



Sec. 1710.107  Risks of buying land.

    (a) The next page shall be headed ``Risks of Buying Land'' and shall 
contain the paragraphs listed below. However, paragraph (a)(2) of this 
section may be omitted if all improvements have been completed or if no 
improvements are proposed.
    (1) The future value of any land is uncertain and dependent upon 
many factors. DO NOT expect all land to increase in value.
    (2) Any value which your lot may have will be affected if the roads, 
utilities and all proposed improvements are not completed.
    (3) Resale of your lot may be difficult or impossible, since you may 
face the competition of our own sales program

[[Page 30]]

and local real estate brokers may not be interested in listing your lot.
    (4) Any subdivision will have an impact on the surrounding 
environment. Whether or not the impact is adverse and the degree of 
impact, will depend on the location, size, planning and extent of 
development. Subdivisions which adversely affect the environment may 
cause governmental agencies to impose restrictions on the use of the 
land. Changes in plant and animal life, air and water quality and noise 
levels may affect your use and enjoyment of your lot and your ability to 
sell it.
    (5) In the purchase of real estate, many technical requirements must 
be met to assure that you receive proper title. Since this purchase 
involves a major expenditure of money, it is recommended that you seek 
professional advice before you obligate yourself.
    (b) Warnings. If the instructions or the Secretary require any 
warnings to be included in the Property Report portion, the following 
statement shall be added beneath the ``Risks of Buying Land'' under a 
heading ``Warnings'':

    ``Throughout this Property Report there are specific warnings 
concerning the developer, the subdivision or individual lots. Be sure to 
read all warnings carefully before signing any contract or agreement.''


Both the heading, ``Warnings'', and the statement shall be printed in 
capital letters and enclosed in a box.



Sec. 1710.108  General information.

    Insert and complete the following format:

    ``This Report covers ---- lots located in -------- County, (State). 
See Page ---- for a listing of these lots. It is estimated that this 
subdivision will eventually contain ------ lots.''
``The developer of this subdivision is:
________________________________________________________________________
    (Developer's Name)
________________________________________________________________________
    (Developer's Address)
________________________________________________________________________
    (Developer's telephone number)

    ``Answers to questions and information about this subdivision may be 
obtained by telephoning the developer at the number listed above.''



Sec. 1710.109  Title to the property and land use.

    (a) General instructions. (1) Below the heading ``Title to the 
Property and Land Use'' insert the following introductory paragraphs:

    ``A person with legal title to property generally has the right to 
own, use and enjoy the property. A contract to buy a lot may give you 
possession but doesn't give you legal title. You won't have legal title 
until you receive a valid deed. A restriction or an encumbrance on your 
lot, or on the subdivision, could adversely affect your title.''
    ``Here we will discuss the sales contract you will sign and the deed 
you will receive. We will also provide you with information about any 
land use restrictions and encumbrances, mortgages, or liens affecting 
your lot and some important facts about payments, recording, and title 
insurance.''

    (2) Information to be provided. After the above introductory 
paragraphs provide the information required by the following 
instructions and questions. Follow a general form identical to the 
sample page printed in Sec. 1710.102.
    (b) Method of sale--(1) Sales contract and delivery of deed. (i) 
Will the buyer sign a purchase money or installment contract or similar 
instrument in connection with the purchase of the lot? When will a deed 
be delivered?
    (ii) If an installment contract is used, include the following, or 
substantially the same, language in the disclosure narrative under 
``Method of Sale'':

    ``If you fail to make your payments required by the contract, you 
may lose your lot and all monies paid.''

    (iii) If, at the time of a credit sale, the developer gives the 
buyer a deed to the lot, what type of security must the buyer give the 
seller?
    (iv) If the lots are to be sold on the basis of an installment 
contract, can the developer or the owner of the subdivision or their 
creditors encumber the lots under contract? If so, include the following 
warning in the disclosure narrative under the caption ``Sales contract 
and delivery of deed'':

    ``The (indicate subdivision developer, owner, or their creditors) 
can place a mortgage on or encumber the lots in this subdivision after 
they are under contract. This may cause you to lose your lot and any 
monies paid on it.''


[[Page 31]]


    (2) Type of deed. What type of deed will be used to convey title to 
lots in the subdivision?
    (3) Quitclaim deeds. If a quitclaim deed is to be given to lot 
purchasers insert the below warning, or a warning which is substantially 
the same, in the disclosure narrative below the caption ``Quitclaim 
Deeds''. This particular warning may be deleted at the direction of the 
Secretary if an acceptable attorney's opinion is submitted with the 
Statement of Record which indicates that a quitclaim deed has a meaning 
in the jurisdiction where the subdivision is located which is 
substantially contrary to the effect of this warning. This warning shall 
be phrased substantially as follows:

    ``The Quitclaim deed used to transfer title to lots in this 
subdivision gives you no assurance of ownership of your lot.''

    (4) Oil, gas, and mineral rights. If oil, gas or mineral rights have 
been reserved, insert the following statement or one substantially the 
same in the narrative answer under the caption ``oil, gas, and mineral 
rights'':

    ``The (indicate oil, gas, or mineral rights) to (state which lots) 
in this subdivision will not belong to the purchaser of those lots. The 
exercise of these rights could affect the use, enjoyment and value of 
your lot.''

    (c) Encumbrances, mortgages and liens--(1) In general. State whether 
any of the lots or common facilities which serve the subdivision, other 
than recreation facilities, are subject to a blanket encumbrance, 
mortgage or lien. If yes, identify the type of encumbrance (e.g. deed of 
trust, mortgage, mechanics liens), the holder of the lien, and the lots 
covered by the lien. If any blanket encumbrance, mortgage, or lien is 
not current in accordance with its terms, so indicate.
    (2) Release provisions. (i) Explain the effect of any release 
provisions of any blanket encumbrance, mortgage or lien and include the 
one of the following statements that pertains.
    (A) If the release clauses are not included in a recorded 
instrument, insert the following statement or one substantially the same 
in the disclosure narrative below the caption ``Release Provisions'':

    ``The release provisions for the (indicate all or particular lots) 
have not been recorded. Therefore, they may not be honored by subsequent 
holders of the mortgage. If they are not honored, you may not be able to 
obtain clear title to a lot covered by this mortgage until we have paid 
the mortgage in full, even if you have paid the full purchase price of 
the lot. If we should default on the mortgage prior to obtaining a 
release of your lot, you may lose your lot and all monies paid.''

    (B) If the developer or subdivision owner states that the release 
provisions are recorded and that the lot purchaser may pay the release 
price of the mortgage, the statement shall be supported by documentation 
supplied in Sec. 1710.209. If the purchaser may pay the release fee, 
state the amount of the release fee and inform the purchaser that the 
amount may be in addition to the contract payments unless there is a 
bona fide trust or escrow arrangement in which the purchaser's payments 
are set aside to pay the release price before any payments are made to 
the developer.
    (C)(1) If there are no provisions in the blanket encumbrance for 
release of an individual purchaser's lot from a blanket encumbrance, 
include the following warning or a warning substantially the same, in 
the disclosure narrative under the ``Release Provisions'' caption:

    ``The (state type of encumbrance) on (indicate all or particular 
lots) in this subdivision does not contain any provisions for the 
release of an individual lot when the full purchase price of the lot has 
been paid. Therefore, if your lot is subject to this (state type of 
encumbrance), you may not be able to obtain clear title to your lot 
until we have paid the (state type of encumbrance) in full, even though 
you may have received a deed and paid the full purchase price of the 
lot. If we should default on the (state type of encumbrance) prior to 
obtaining a release, you may lose your lot and all monies paid.''

    (2) If the provisions for release of individual lots from the 
blanket encumbrance may be exercised only by the developer insert the 
following statement, or one substantially the same, in the disclosure 
narrative under the ``Release Provisions'' caption:

    ``The release provisions in the (state the type of encumbrance) on 
(indicate all or particular lots) in this subdivision may be exercised 
only by us. Therefore, if we default on

[[Page 32]]

the (state type of encumbrance) before obtaining a release of your lot, 
you may lose your lot and any money you have paid for it.''

    (d) Recording the contract and deed--(1) Method or purpose of 
recording. (i) State what protection, if any, recording of deeds and 
contracts gives a lot purchaser in your jurisdiction.
    (ii) If the sales contract or deed may be recorded, so state. Also 
state whose responsibility it is to record the contract or deed.
    (iii) If the developer or subdivision owner will not have the sales 
contract officially acknowledged or if the applicable jurisdiction will 
not record sales contracts, state that sales contracts will not be 
recorded and why they will not be recorded.
    (iv) If at, or immediately after, the signing of a contract, the 
contract or a deed transfer to the buyer is not recorded by the 
developer or owner or if title to the lot is not otherwise transferred 
of record to a trust, or if other sufficient notice of transfer or sale 
is not placed of record, then the developer shall include the following, 
or substantially the same, warning in the disclosure narrative under the 
caption ``Method and Purpose of Recording'':

    ``Unless your contract or deed is recorded you may lose your lot 
through the claims of subsequent purchasers or subsequent creditors of 
anyone having an interest in the land''.


The reference to contracts shall be deleted from the above warning if 
the answer to paragraph (d)(1)(i) of this section indicates that 
recording of a contract in the subject jurisdiction does not protect the 
purchaser from claims of later purchasers or creditors of anyone having 
an interest in the land.

    (2) Title insurance. If the developer does not deliver a title 
insurance policy to the buyer, state that the purchaser should obtain an 
attorney's opinion of title or a title insurance policy which will 
describe the rights of ownership which are being acquired in the lot. 
Recommend that an appropriate professional should interpret the opinion 
or policy.
    (e) Payments--(1) Escrow. If purchasers' deposits, down payments, or 
installment payments are to be placed in a third party controlled escrow 
or similar account, describe the arrangement including the name and 
address of the escrow holder or similar person. If there is no such 
arrangement, insert the following statement in the disclosure narrative 
under the caption ``Escrow'':

    ``You may lose your (indicate deposit, down payment and/or 
installment payments) on your lot if we fail to deliver legal title to 
you as called for in the contract, because (they are/it is) not held in 
an escrow account which fully protects you.''


The questions regarding an escrow agreement or similar protection may be 
answered affirmatively only if the money is under the control of an 
independent third party, allowing a purchaser to receive a return of all 
money paid in the event of the developer's failure to convey title or 
the developer's default on any obligation which would otherwise result 
in the purchaser's loss of that money.
    (2) Prepayments. Explain any prepayment penalties or privileges in 
everyday language.
    (3) Default. What are the developer's or subdivision owners' 
remedies against a defaulted purchaser?
    (f) Restrictions on the use of your lot--(1) Restrictive covenants. 
(i) Have any restrictive covenants been recorded against the land in the 
subdivision? If so, do they contain items which require the purchaser to 
secure permissions, approvals or take any other action prior to using or 
disposing of his lot (e.g., architectural control, developer's right of 
first refusal, building deadlines, etc.)? If any of these or similar 
items are included, explain their meaning and effect upon the purchaser.
    (ii) If any restrictive covenants are to be used and if they have 
not been recorded, how will they be imposed? Include a statement to the 
effect that the restrictive covenants have not been recorded; that there 
is no assurance they will be applied uniformly; that they may be changed 
and that they may be difficult to enforce. If no restrictive covenants 
will be imposed, include a statement to the effect that, since there are 
no restrictive covenants on the use of the lots, they may be used

[[Page 33]]

for purposes which could adversely affect the use and enjoyment of 
surrounding lots.
    (iii) If there are restrictive covenants, whether recorded or 
unrecorded, the following statement shall be made: ``A complete copy of 
these restrictions is available upon request.''
    (2) Easements. (i) Are there easements which may have an effect on 
the purchaser's building or lot use plans (e.g., large drainage 
easements along lot lines, high voltage electric transmission lines, 
pipe lines or drainage easements which encroach upon the building area 
of the lot or inhibit its use)?
    (ii) Is the subdivision subject to any type of flood control or 
flowage easements?
    (iii) If the answer to either (2)(i) or (2)(ii) is in the 
affirmative, identify the affected lots and state the effect upon the 
use of the lots.
    (g) Plats, zoning, surveying, permits and environment--(1) Plats. 
(i) Have the subdivision plans and plats of specific units been approved 
by the regulatory authorities? If the approvals have not been obtained, 
include a warning to the effect that regulatory authorities have not 
approved the proposed plats; that they may require significant 
alterations before they will approve them and they may not allow the 
land to be used for the purpose for which it is being sold.
    (ii) Have plats covering the lots in this Report been recorded? If 
so, where are they recorded? If they have not been recorded, is the 
description of the lots given in this Report legally adequate for the 
conveyance of land in the jurisdiction where the subdivision is located? 
If it is not, include a statement to the effect that the description of 
the lots is not legally adequate for the conveyance of the lots and that 
it will not be until the plat is recorded.
    (2) Zoning. For what purpose may the lots be used (e.g., single 
family homes, camping, commercial)? Does this use conform to local 
zoning requirements and the restrictive covenants?
    (3) Surveying. Has each lot been surveyed and is each lot marked for 
identification? If not, and the purchaser is responsible for the 
expense, state the estimated cost.
    (4) Permits. Must the purchaser obtain a building permit before 
beginning construction on his lot? Where is the permit obtained? Are any 
other permits necessary to use the lot for the purpose for which it is 
sold or for construction in connection with its use?
    (5) Environment. Has there been any environmental impact study 
prepared which considers the effect of the subdivision on the 
environment? If a study has been prepared, summarize any adverse 
conclusions and refer the lot buyer to the proper State Clearinghouse 
for complete information. If a study has not been prepared, include a 
statement that ``No determination has been made as to the possible 
adverse effects the subdivision may have upon the environment and 
surrounding area.''

(If the developer does not know whether an environmental impact study 
has been prepared, or the name and location of the Office where any 
study made can be found, inquiry should be made to the State or Area 
Clearinghouse established under the authority of title IV of the 
Intergovernmental Cooperation Act of 1968.)



Sec. 1710.110  Roads.

    (a) Access to the subdivision. (1) Is access to the subdivision 
provided by public or private roads? What type of surface do they have? 
How many lanes? What is the width of the wearing surface?
    (2) Who is responsible for their maintenance? What is the cost to 
the purchaser, if any? Are any improvements contemplated? If so, when 
will they begin and when will they be completed? At whose expense?
    (b) Access within the subdivision. (1) How have legal and physical 
access by conventional automobile been or will they be, provided to the 
lots (e.g., road on recorded easement; right of way dedicated to the 
public; right of way dedicated to use of lot owners)?
    (2) Who is responsible for the road construction? Is there any 
construction cost to the purchaser? Is there any financial assurance of 
completion? If there is no financial assurance of completion, enter a 
warning to the effect that no funds have been set aside in an escrow or 
trust account and there are

[[Page 34]]

no other financial arrangements to assure completion of the roads.
    (3) How many lanes do the interior roads have? What is the estimated 
starting date of construction (month and year); the present percentage 
of construction now complete; the present surface; the estimated 
completion date (month and year) and what is the final surface to be? If 
there are separate units or sections in the subdivision which will have 
different completion dates or different surfaces, the following chart 
shall be used rather than a narrative paragraph.

----------------------------------------------------------------------------------------------------------------
                                        Percentage of          Estimated
     Unit        Estimated starting    construction now     completion date       Present        Final surface
                 date (month/year)         complete           (month/year)        surface
----------------------------------------------------------------------------------------------------------------
 
 
 
----------------------------------------------------------------------------------------------------------------

    (4) Who is responsible for road maintenance? If the roads are to be 
maintained by a public authority, a property owners' association or some 
other entity at some time in the future, who is responsible for their 
maintenance during the interim period? What is the cost to the purchaser 
during the interim period and after acceptance for permanent 
maintenance? Will they be maintained so as to provide access to the lots 
on a year round basis? If not, include a warning which informs the 
purchaser that access may not be available year round. Identify the 
months when access may not be available to lots. If there are no 
arrangements for maintenance, include a warning to the effect that 
purchasers are responsible for maintaining the roads and that, if 
maintenance is not performed, the roads may soon deteriorate and access 
may become difficult or impossible.
    (5) If estimated completion dates given in prior Statements of 
Record have not been met, state that previous dates have not been met 
and give the previous dates. Underline the answer. If the roads are 100 
percent completed, no dates are needed.
    (6) Complete the following chart by listing the county seat 
(identify) and at least two nearby communities.
    Include at least one community of significant size which offers 
general services.

Nearby Communities..................................................... 
Population............................................................. 
Distance Over Paved Roads.............................................. 
Distance Over Unpaved Roads............................................ 
      Total............................................................ 

    (7) If the purchasers will be individually responsible for providing 
access to their lots and for maintaining that access, what is the 
estimated cost of construction and maintenance?



Sec. 1710.111  Utilities.

    (a) Water. (1) How is water to be supplied to the individual lots 
(e.g., central system or individual wells)? Of the following items only 
those which apply to the subdivision need be included.
    (i) Individual system. (A) If water is to be supplied by an 
individual private well, cistern or other individual system, what are 
the total estimated costs of the system, including but not limited to, 
the costs of installation, storage, any treatment facilities and other 
necessary equipment?
    (B) If individual cisterns or similar storage tanks are to be used, 
state where water to fill them can be secured; the cost of the water, 
and its delivery costs for a supply sufficient to serve the monthly 
needs of a family of four living in a house on a year-round basis. 
Include a statement to the effect that water stored for extended periods 
tends to become stale and may acquire an unpleasant taste or odor.
    (C) If individual wells are to be used and if the sales contract 
contains no provisions for refund or exchange in the event a productive 
well cannot be installed, include a statement to the effect that there 
is no assurance a productive well can be installed and, if it cannot, no 
refund of the purchase price of the lot will be made.
    (D) If individual wells or individual cisterns are to be used, 
include a brief statement to the effect that the purity

[[Page 35]]

and chemical content of the water cannot be determined until each 
individual well or source of water is completed and tested.
    (E) If there have been no hydrological surveys in connection with 
the use of individual wells or sources of hauled water for cisterns, 
include a warning to the effect that there is no assurance of a 
sufficient supply of water for the anticipated population.
    (F) Is a permit required to install the individual system to be 
used? If so, from whom and where is the permit secured? State the cost 
of a permit.
    (ii) Central system. (A) If water is to be provided by a central 
system, who is the supplier? What is the supplier's address?
    (B) Will the water mains be extended in front of, or adjacent to, 
each lot? When will construction begin? What is the present percentage 
of completion of the water mains and central supply plant? When will 
service be available to the individual lots? If the central system is 
not complete and there are separate units or sections of the subdivision 
included in the Statement of Record which have different completion 
dates, then the starting date for construction (month and year), the 
percentage of construction now complete and the estimated service 
availability date (month and year) shall be set forth in the following 
chart form rather than in a narrative paragraph.

                                  Water
------------------------------------------------------------------------
                 Estimated        Percentage of      Estimated service
    Unit       starting date    construction now     availability date
             (month and year)       complete          (month and year)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

    (C) What is the present capacity of the central plant (i.e., how 
many connections can be supplied)? If the capacity is not sufficient to 
serve all lots in the Statement of Record and is to be expanded in 
phases, what is the time-table for each phase to be in service and what 
will trigger the beginning of the expansion for each phase? If an entity 
other than the developer or an affiliate or subsidiary of the developer 
will supply the water for the central system; if the operation of that 
entity is supervised by a governmental agency and if that entity states 
it can supply the anticipated population of the development, then 
information as to the capacity of the plant and a hydrological survey is 
not necessary. If the entity does not indicate it can supply enough 
water for the anticipated population or if the capacity of any central 
system is not sufficient to serve all lots in the Statement of Record, 
include a warning which describes the limitations and sets forth the 
number of lots which can now be served.
    (D) Have there been any hydrological surveys to determine that a 
sufficient source of water is available to serve the anticipated 
population of the subdivision? Has the water in the central system been 
tested for purity and chemical content? If so, did the results show that 
the water meets all standards for a public water supply? If there have 
been no hydrological surveys showing a sufficient supply of water or no 
tests for purity and chemical content for the central system, include a 
warning to the effect that there is no assurance of a sufficient supply 
or that the water is drinkable.
    (E) Is there any financial assurance of completion of the central 
system and any future expansion? If not, include a warning to the effect 
that no funds have been set aside in an escrow or trust account nor have 
any other financial arrangements been made to assure completion of the 
water system.
    (F) If the developer or an affiliate or subsidiary of the developer 
operates the central system, have all permits been obtained from the 
proper agencies for the construction, use and operation of the central 
system? If not, include a warning to the effect that the required 
permits, approvals or licenses for construction, operation or use of the 
water system have not been obtained, therefore there is no assurance the 
system can be constructed or used.
    (G) If previous completion dates given in prior Statements of Record 
have not been met, state that previous completion dates have not been 
met and give the previous dates. Underline the answer. If the central 
water system is 100 percent completed, no dates are needed.

[[Page 36]]

    (H) Is the purchaser to pay any construction costs, one-time 
connection fees, availability fees, special assessments or deposits for 
the central system? If so, what are the amounts? If not, state there are 
no charges other than use fees. If the purchaser will be responsible for 
construction costs of the water mains, state the cost to install the 
mains to the most remote lot covered by this report.
    (I) If a purchaser wishes to use a lot prior to the date central 
water is available to it, may the purchaser install an individual 
system? If so, include the information required for individual systems 
in Sec. 1710.111(a)(1)(i). Will the purchaser be required to discontinue 
use of any individual system and connect to the central system when 
service is available to the lot? If the purchaser is not required to 
connect to the central system, must any construction costs, connection 
fees, availability fees, special assessments or deposits in connection 
with the central system still be paid? If an individual system may not 
be installed, so state and indicate water will not be available until 
the central system is extended to the lot.
    (J) If connection to the system is voluntary and not all purchasers 
elect to use the system, will the cost to those who do use the system be 
increased? If so, include a statement to the effect that connection to 
the central system is voluntary and those who use the system may have to 
pay a disproportionate share of the cost of the system and its 
operation.
    (K) If the developer is to construct the system and will later turn 
it over to a property owners' association for operation and maintenance, 
state the estimated date and conditions of the conveyance and if it will 
be conveyed free and clear of any encumbrance. If there is a charge or 
if the association must assume an encumbrance, state the estimated 
amount of either and the terms for retirement of either obligation.
    (L) If the supplier of water is other than a governmental agency or 
an entity which is regulated and supervised by a governmental agency, 
state that neither the operation of the water system nor the rates are 
regulated by a public authority.
    (M) The following warning shall be included unless:
    (1) The central water system is owned and operated by the developer, 
or an affiliate or subsidiary of the developer, or
    (2) The central water system is owned and operated by a governmental 
agency or by an entity which is regulated and supervised by a 
governmental agency.

    ``We do not own or operate the central water system so we cannot 
assure its continued availability for your use.''

    (b) Sewer. (1) What methods of sewage disposal are to be used (e.g., 
central system, comfort stations or individual on-site systems such as 
septic tanks, holding tanks, etc.) in the subdivision? Of the following 
items, only those which apply to the subdivision need be included.
    (i) Individual systems. (A) If individual systems are to be used, 
have the local authorities given general approval to the use of these 
systems in the subdivision or have they given specific approval for each 
lot?

Are permits necessary? From whom and where are they obtained? Must 
testing of the lot be done prior to the issuance of a permit? State the 
cost of a permit and the estimated costs of the system and any necessary 
tests.
    (B) If holding tanks are to be used, state whether pumping and 
hauling service is available and the estimated monthly costs of that 
service for a family of four living in a house on a year-round basis.
    (C) If each and every lot has not been approved for the use of an 
individual on-site system, include a warning to the effect that there is 
no assurance permits can be obtained for the installation and use of 
individual on-site systems. If the sales contract contains no provisions 
for refund or exchange in the event a permit cannot be obtained, include 
a statement to the effect that there is no assurance an individual on-
site system can be installed and, if it cannot, no refund of the 
purchase price of the lot will be made.
    (D) If no permit is required for the installation and use of 
individual on-site systems, explain whether this may have an effect upon 
the purchaser or

[[Page 37]]

the availability of construction or permanent financing.
    (E) If the developer has knowledge that permits for the installation 
of individual on-site systems have been denied; that there have been 
unsatisfactory percolation tests or that systems have not operated 
satisfactory in the subdivision, state the number of these rejections, 
unsatisfactory tests or operations.
    (ii) Comfort stations. (A) If comfort stations are to be used, how 
many lots will be served by each station? When will construction be 
started? When will the station or stations be completed and ready for 
use? Have the necessary permits been obtained for the construction and 
use of comfort stations? If the necessary permits have not been 
obtained, include a warning that the necessary permits, approvals or 
licenses have not been obtained for the construction and use of the 
comfort stations, therefore there is no assurance they can be 
constructed or used. If there are comfort stations located in different 
units and having different completion dates, the following chart shall 
be used to show the estimated construction starting date (month and 
year), the present percentage of completion and the date on which they 
will be used rather than a narrative paragraph.

                            Comfort Stations

Unit____________________________________________________________________
Estimated Starting Date (month-year)____________________________________
Percentage of Construction now complete_________________________________
Estimated Service Availability Date (month and year)____________________

    (B) Who is to construct the comfort stations? Is there any financial 
assurance of their completion? If not, include a warning to the effect 
that no funds have been set aside in an escrow or trust account nor have 
any other financial arrangements been made to assure completion of the 
comfort stations and there is no assurance the facilities will be 
completed.
    (C) Who will be responsible for maintenance of the comfort stations? 
Is there any cost to the purchaser for construction, use or maintenance?
    (iii) Central system. (A) If a central sewage treatment and 
collection system is being installed, who is responsible for 
construction of the system? Will the sewer mains be installed in front 
of, or adjacent to, each lot? When will construction be started (month 
and year)? When will service be available (month and year)? Who will own 
and operate the system? Give the name and address of the entity.
    (B) What is the present percentage of completion and the present 
capacity of the system (i.e., number of connections which can be 
served)? If the present capacity is not sufficient to serve all lots in 
the Statement of Record and it is to be expanded in phases, what is the 
time-table for expansion and what will trigger that expansion? If the 
central system is not complete and there are separate units or sections 
of the subdivision which have different service availability dates, the 
following chart shall be used to show the construction starting date 
(month and year); the percentage of completion and service availability 
date (month and year) in each unit or section rather than a narrative 
paragraph.

                                  Sewer

Unit Estimated Starting Date (month/year)_______________________________
Percentage of Construction now complete_________________________________
Estimated Service Availability Date (month/year)________________________


If sewage treatment facilities are to be supplied by an entity which is 
regulated by a governmental agency and which is not the developer or an 
affiliate or subsidiary of the developer and the entity has stated it 
can serve the anticipated population of the development, then 
information on capacity need not appear.
    (C) If the developer or an affiliate or subsidiary of the developer 
operates the central system, have all necessary permits been obtained 
for the construction, operation and use of the the central system? Do 
these permits limit the number of connections or homes which the system 
may serve? If the permits have not been obtained, enter a warning to the 
effect that the necessary permits, approvals or licenses have not been 
obtained for the central sewage system; therefore there is no assurance 
that the system can be completed, operated or used.
    (D) If the system cannot now serve all lots included in the 
Statement of

[[Page 38]]

Record, either because the supplier of the service has not stated it can 
and will serve all lots or if construction has not reached a stage where 
all lots can be served or permits to serve all lots have not been 
obtained, include a warning which states that all lots cannot now be 
served; the number which can be served and the reason for the lack of 
capacity.
    (E) Will the purchaser pay any construction costs, special 
assessments, one time connection fees or availability fees? What are the 
amounts of these charges? If the purchaser is to pay construction costs 
of the sewer mains, state the cost of installation of the mains to the 
most remote lot in this Report.
    (F) If the purchaser wishes to use the lot prior to the date central 
sewer service is available, may the purchaser install an individual 
system? If so, include the information on individual systems required by 
Sec. 1710.111(b)(1)(i). Will the purchaser be required to discontinue 
use of the individual system and connect to the central system when 
service is available? If the purchaser is not required to connect to the 
central system, must the purchaser still pay any construction costs, 
connection fees, availability fees, or special assessments? If the 
purchaser may not install an individual system, so state and indicate 
service will not be available until the central system reaches the lot.
    (G) If connection to the system is voluntary and not all purchasers 
elect to use the system, will the cost to those who do use the system be 
increased? If so, include a statement to the effect that connection to 
the central system is voluntary and those who use the system may have to 
pay a disproportionate share of the cost of the system and its 
operation.
    (H) Is there any financial assurance of completion of the central 
system and any future expansion? If not, include a warning that no funds 
have been set aside in an escrow or trust account nor have any other 
financial arrangements been made to assure the completion of the central 
system; therefore there is no assurance that it will be completed.
    (I) If previous completion dates given in prior Statements of Record 
have not been met, state that previous dates have not been met and give 
the previous dates. Underline the answer. If the central sewage 
treatment and collection system are 100 percent completed, no dates are 
needed.
    (J) If the developer is to construct the system and will later turn 
it over to a property owners' association for operation and maintenance, 
state the date of the transfer and whether there will be any charge for 
the conveyance and if it will be conveyed free and clear of any 
encumbrance. If there is a charge or if the association must assume an 
encumbrance, state the estimated amount of either and the terms for 
retirement of either obligation.
    (K) If the owner or operator of the central sewer system is other 
than a governmental agency or an entity which is regulated and 
supervised by a governmental agency, state that neither the operation of 
the sewer system nor the rates are regulated by a public authority.
    (L) The following warning shall be included unless:
    (1) The central sewer system is owned and operated by the developer, 
or an affiliate or subsidiary of the developer, or
    (2) The central sewer system is owned and operated by a governmental 
agency or by an entity which is regulated and supervised by a 
governmental agency.

    ``We do not own or operate the central sewer system so we cannot 
assure its continued availability for your use.''

    (c) Electricity. (1) Who will provide electrical services to the 
subdivision?
    (2) Have primary electrical service lines been extended in front of, 
or adjacent to, all of the lots? If not, when (month and year) or under 
what conditions will construction begin and when will service be 
available? If they have not been installed, who is responsible for their 
construction?

If electrical service lines have not been extended in front of, or 
adjacent to, all lots and there are separate units or sections having 
different service availability dates, the following chart shall

[[Page 39]]

be used rather than a narrative paragraph.

                            Electric Service
------------------------------------------------------------------------
                 Estimated        Percentage of      Estimated service
    Unit       starting date      construction       availability date
             (month and year)       complete          (month and year)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

    (3) If construction of the lines or service to the ultimate consumer 
is provided by an entity other than a publicly regulated utility, who 
provides, or will provide, the service? Who will be responsible for 
maintenance? What is the assurance of completion? If service is not 
provided by a publicly regulated utility, what charges or assessments 
will the purchaser pay?
    (4) If the primary service lines have not been extended in front of, 
or adjacent to each lot, will the purchaser be responsible for any 
construction costs? If so, what is the utility company's policy and 
charges for extension of primary lines? Based on that policy, what would 
be the cost to the purchaser for extending primary service to the most 
remote lot in this Report?
    (5) If electrical service will not be provided, what is an alternate 
source (e.g., generators, etc.) and what are the estimated costs?
    (6) If the lines are to be installed by some entity other than a 
publicly regulated utility and if there is no financial assurance of 
completion, include a warning to the effect that no funds have been set 
aside in an escrow or trust account nor have any other financial 
arrangements been made to assure construction of the electric lines.
    (d) Telephone. (1) Is telephone service now, or will it be, 
available? Who will furnish the service?
    (2) Have the service lines been extended in front of, or adjacent 
to, each of the lots? If not, when, and under what conditions, will 
construction be started and when will service be available (month and 
year)?
    (3) If the service lines have not been extended in front of, or 
adjacent to, each lot, will the purchaser be responsible for any 
construction costs? If so, what is the utility company's policy and 
charges for extension of service lines? Based on that policy, what would 
be the cost to the purchaser of extending service lines to the most 
remote lot in this Report?
    (e) Fuel or other energy source. (1) What fuel, or other energy 
source, will be available for heating, cooking, etc. in the subdivision? 
If other than electricity is to be used, describe the availability of 
the fuel or other energy source. Give the name and address of the 
supplier. If the fuel is natural gas, when will the mains be installed 
to the lots? What is the cost to the purchaser for installation fees and 
connection fees? If oil or propane gas will be used, include the cost of 
a storage tank.
    (2) [Reserved]



Sec. 1710.112  Financial information.

    (a) The information required by paragraphs (b) and (c) of this 
section need appear only if the answer to the question is an affirmative 
one.
    (b) Has the developer had a deficit in retained earnings or 
experienced an operating loss during the last fiscal year or, if less 
than a year old, since its formation? If so, include a statement to the 
effect that this may affect the developer's ability to complete promised 
facilities and to discharge financial obligations. This statement may be 
omitted if:
    (1) All facilities, utilities and amenities proposed to be completed 
by the developer in the Property Report and sales contract have been 
completed so that the lots included in the Statement of Record are 
immediately usable for the purpose for which they are sold, or if:
    (2) The developer is contractually obligated to the purchaser to 
complete all facilities, utilities and amenities promised by it in the 
Statement of Record, and:
    (i) The developer has made financial arrangements, such as the 
posting of surety bonds (corporate or individual notes or bonds are not 
acceptable), irrevocable letters of credit, escrow or trust accounts, to 
assure that the facilities, utilities and amenities will be completed by 
the dates set out in the Property Report or contract;
    (ii) The sales contract provides for delivery of a deed within 180 
days of

[[Page 40]]

the signing of the contract which conveys title free of any mortgage or 
lien, or the developer has filed an assurance of title agreement with 
OILSR as outlined in Sec. 1710.212(e); and
    (iii) Any down payments or deposits are held in an escrow or trust 
account.
    (c) If the developer's financial statements have been audited, did 
the accountant qualify the opinion or decline to give an opinion? If so, 
why was the opinion qualified or declined?
    (d) The following statement shall appear:

    A copy of our financial statements for the period ending -----------
----- is available from us upon request.

    (e) The information furnished in Sec. 1710.212(b) may necessitate a 
warning as to costs and/or feasibility of the completion of the 
subdivision.

[44 FR 21453, Apr. 10, 1979, as amended at 49 FR 31370, Aug. 6, 1984]



Sec. 1710.113  Local services.

    (a) Fire protection. Describe the availability of fire protection 
and indicate whether it is available year round.
    (b) Police protection. Describe the availability of police 
protection.
    (c) Schools. State whether elementary, junior high and senior high 
schools are available to residents of the subdivision. Is school bus 
transportation available from within the subdivision?
    (d) Hospital. Give the name and location of the nearest hospital and 
state whether ambulance service is available.
    (e) Physicians and dentists. State the location of the nearest 
physicians' and dentists' offices.
    (f) Shopping facilities. State the location of the nearest shopping 
facilities.
    (g) Mail service. If there is no mail service to the subdivision, 
describe the arrangements the purchasers must make to receive mail 
service.
    (h) Public transportation. Is there public transportation available 
in the subdivision or to nearby towns? If not, give the location of the 
nearest public transportation and the distance from the subdivision.



Sec. 1710.114  Recreational facilities.

    (a) Recreational facilities to be covered. Unless otherwise 
indicated, all information required by paragraphs (b) and (c) of this 
section shall be provided for only those recreational facilities which
    (1) The developer is contractually responsible to provide or 
complete and which are:
    (i) Within, adjacent or contiguous to the subdivision, and
    (ii) Maintained substantially for the use of lot owners; or
    (2) For which a third party is responsible and which are:
    (i) Within, adjacent or contiguous to the subdivision, and
    (ii) Maintained substantially for the use of lot owners.
    (b) Recreational facility chart. Complete the below chart in 
accordance with the instructions which follow it. This chart shall 
immediately follow the Sec. 1710.114 heading. Limit the chart to 
facilities provided essentially for use of lot buyers.

----------------------------------------------------------------------------------------------------------------
                                      Estimated date of
                     Percentage of         start of        Estimated date       Financial        Buyer's annual
     Facility       construction now     construction    available for use     assurance of         cost or
                        complete         (month/year)       (month/year)        completion        assessments
----------------------------------------------------------------------------------------------------------------
 
 
----------------------------------------------------------------------------------------------------------------

    (1) Facility. Identify each recreational facility. Identify closely 
related facilities (e.g., swimming pool and bathhouse) separately only 
if their availability dates differ. If any recreational facility is not 
owned by the developer, insert a warning below the chart phrased 
substantially as follows:

    ``We do not own the (name of facility or facilities) so we can not 
assure its (their) continued availability.''

    (2) Percent complete. State the present percentage of completion of 
construction for each recreational facility.
    (3) Estimated date of start of construction. Insert the estimated 
date of the

[[Page 41]]

start of construction for the facility (month and year).
    (4) Estimated date available for use. If the construction of the 
facility is not complete or if it is not available to lot owners for its 
intended use, indicate the estimated date (month and year) that the 
facility will be available for use. If the ``estimated date available 
for use'' for any facility has been amended to delay it to a later date, 
indicate such delay in a statement immediately below the chart. 
Underline the response.

This statement shall include the name of the facility and the prior 
estimated availability date, and it shall be referenced to the 
appropriate facility listed on the chart by use of an asterisk or other 
appropriate symbol. If a facility is 100 percent completed and in use, 
no date is needed.
    (5) Financial assurance of completion. If the construction of the 
facility is not complete, state whether there is any financial assurance 
of completion. If none, state ``none''. If such exists, state the type 
of assurance (i.e. bond, escrow, or trust). If no documentation for such 
assurance has been provided in Sec. 1710.214 of the Statement of Record, 
then do not indicate such assurance on the chart, but in place of such 
assurance on the chart state ``none''.
    (6) Buyer's annual cost or assessments. State the lot buyer's annual 
cost or assessments for using the facility. These costs should include 
any applicable property owners' association assessment, and the 
developer's maintenance assessment. If the cost information is lengthy, 
you may use an asterisk or other appropriate symbol and include the cost 
information in a paragraph below the chart.
    (c) Information to be provided below the recreational facility chart 
and related warnings.
    (1) Constructing the facilities. If the facilities are not complete, 
indicate who is responsible for the construction of the facilities. 
Indicate whether the purchaser will be required to pay any of the cost 
of construction of these facilities (estimate and disclose such cost, if 
any).
    (2) Maintaining the facilities. Indicate who is responsible for the 
operation and maintenance of these facilities.
    (3) Facilities which will be leased to lot purchasers. If no 
facilities covered here will be leased to a Property Owners' Association 
or other lot owners in the subject subdivision, omit this caption and 
any information requested under it from the Property Report. If such 
leases exist or are anticipated, state which facilities are or will be 
leased and indicate the term of the lease. Also, state whether the lot 
owners will have an opportunity to terminate or ratify the lease after 
control of the Property Owners' Association is turned over to them. 
Indicate whether the owner of a recreational facility leased to the 
Property Owners' Association or other lot owners may encumber it and 
whether the holders of such encumbrances may acquire the leased 
facilities and not honor the lease. Indicate whether the lease payments 
may be increased on an escalating or other basis and what costs or 
expenses, if any, will be borne by the owner. State whether the lease 
can be assigned or sublet. State how the lease can be terminated.
    (4) Transfer of the facilities. If there are presently any liens or 
mortgages on any of these recreational facilities, describe such liens 
or mortgages. If the developer, or owner of the subdivision, their 
principals, or subsidiaries, intend to transfer the title of a listed 
recreational facility in the future, explain at what time, by what type 
of conveyance, and to whom such transfer will be made. Disclose any 
adverse effects on, or cost to, lot purchasers which may be caused by 
such transfer. If any facility is to be transferred to lot owners as a 
Property Owners' Association or otherwise, state whether the facility 
will be transferred free and clear of all liens and encumbrances. If 
not, state the amount of the encumbrance to be assumed and disclose any 
contractual conditions on such transfer which relate to lot purchasers.
    (5) Permits. If the necessary permits have not been obtained for the 
construction and/or use of the facilities, identify the facilities for 
which such permits have not been obtained and include the following 
statement, or one substantially the same, in the narrative under the 
caption ``Permits''.

    ``The (identify the permit or license) has not been obtained and 
therefore there is no

[[Page 42]]

assurance that the lot owners will be able to use the (identify the 
facility)''.

    (6) Who may use the facilities. Indicate who will be permitted to 
use the recreational facilities (e.g., lot owners, their guests, 
employees of developer, general public, etc.). If the general public 
will be permitted to use the facilities include the following statement 
in the narrative under the caption ``Who may use the facilities'':

    ``The (identify the facility) is open to use by the general public 
and their use of the facility may limit use of it by lot owners''.

[44 FR 21453, Apr. 10, 1979, as amended at 45 FR 40489, June 13, 1980; 
50 FR 10942, Mar. 19, 1985]



Sec. 1710.115  Subdivision characteristics and climate.

    (a) General topography. What is the general topography and the major 
physical characteristics of the land in the subdivision? State the 
percentage of the subdivision which is to remain as natural open space 
and as developed parkland. Are there any steep slopes, rock 
outcroppings, unstable or expansive soil conditions, etc., which will 
necessitate the use of special construction techniques to build on, or 
use, any lot in the subdivision? If so, identify the lots affected, and 
describe the techniques recommended. If any lots in the subdivision have 
a slope of 20%, or more, include a warning that ``Some lots in this 
subdivision have a slope of 20%, or more. This may affect the type and 
cost of construction.''
    (b) Water coverage. Are any lots, or portions of any lots, covered 
by water at any time? What lots are affected? When are they covered by 
water? How does this affect their use for the purpose for which they are 
sold? Can the condition be corrected? At what cost to the purchaser?
    (c) Drainage and fill. Identify the lots which require draining or 
fill prior to being used for the purpose for which they are being sold. 
Who will be responsible for any corrective action? If the purchaser is 
responsible, what are the estimated costs?
    (d) Flood plain. Is the subdivision located within a flood plain or 
an area designated by any Federal, State or local agency as being flood 
prone? What lots are affected? Is flood insurance available? Is it 
required in connection with the financing of any improvements to the 
lot? What is the estimated cost of the flood insurance?
    (e) Flooding and soil erosion. (1) Does the developer have a program 
which provides, or will provide, at least minimum controls for soil 
erosion, sedimentation or periodic flooding throughout the subdivision?
    (2) If there is a program, describe it. Include in the decription 
information as to whether the program has been approved by the 
appropriate government officials; when it is to start; when it is to be 
completed (month and year); whether the developer is obligated to comply 
with the program and whether there is any financial assurance of 
completion.
    (3) If there is no program or if the program has not been approved 
by the appropriate officials or if the program does not provide minimum 
protection, include a statement to the effect that the measures being 
taken may not be sufficient to prevent property damage or health and 
safety hazards. (A minimum program will usually provide for:
    (i) Temporary measures such as mulching and seeding of exposed areas 
and silt basins to trap sediments in runoff water, and
    (ii) Permanent measures such as sodding and seeding in areas of 
heavy grading or cut and fill along with the construction of diversion 
channels, ditches, outlet channels, waterway stabilizers and sediment 
control basins.)
    (f) Nuisances. Are there any land uses which may adversely affect 
the subdivision (e.g., unusal or unpleasant noises or odors, pollutants 
or nuisances such as existing or proposed industrial activity, military 
installations, airports, railroads, truck terminals, race tracks, animal 
pens, noxious smoke, chemical fumes, stagnant ponds, marshes, 
slaughterhouses and sewage treatment facilities)? If any nuisances 
exist, describe them. If there are none, state there are no nuisances 
which affect the subdivision.
    (g) Hazards. (1) Are there any unusual safety factors which affect 
the subdivision (e.g., dilapidated buildings, abandoned mines or wells, 
air or vehicular

[[Page 43]]

traffic hazards, danger from fire or explosion or radiation hazards)? Is 
the developer aware of any proposed plans for construction which may 
create a nuisance or safety hazard or adversely affect the subdivision? 
If there are any existing hazards or if there is any proposed 
construction which will create a nuisance or hazard, describe the hazard 
or nuisance. If there are no existing or possible future hazards, state 
that there are none.
    (2) Is the area subject to natural hazards or has it been formally 
identified by any Federal, State or local agency as an area subject to 
the frequent occurrence of natural hazards (e.g., tornadoes, hurricanes, 
earthquakes, mudslides, forest fires, brush fires, avalanches, flash 
flooding, etc.)? If the jurisdiction in which the subdivision is located 
has a rating system for fire hazard, state the rating assigned to the 
land in the subdivision and explain its meaning.
    (h) Climate. What are the average temperature ranges, summer and 
winter, for the area in which the subdivision is located (i.e., high, 
low and mean)? What is the average annual rainfall and snowfall?
    (i) Occupancy. How many homes are occupied on a full- or part-time 
basis as of (date of submission)?



Sec. 1710.116  Additional information.

    (a) Property Owners' Association. (1) Will there be a property 
owners' association for the subdivision? Has it been formed? What is its 
name? Is it operating? If not yet formed, when will it be formed? Who is 
responsible for its formation?
    (2) Does the developer exercise, or have the right to exercise, any 
control over the Association because of voting rights or placement of 
officers or directors? For how long will this control last?
    (3) Is membership in the association voluntary? Will non-member lot 
owners be subject to the payment of dues or assessments? What are the 
association dues? Can they be increased? Are members subject to special 
assessments? For what purpose? If membership in the association is 
voluntary and if the association is responsible for operating or 
maintaining facilities which serve all lot owners, include the following 
statement:

    ``Since membership in the association is voluntary, you may be 
required to pay a disproportionate share of the association costs or it 
may not be able to carry out its responsibilities.''

    (4) What are the functions and responsibilities of the association? 
Will the association hold architectural control over the subdivision?
    (5) Are there any functions or services that the developer now 
provides at no charge for which the association may be required to 
assume responsibility in the future? If so, will an increase in 
assessments or fees be necessay to continue these functions or services?
    (6) Does the current level of assessments, fees, charges or other 
income provide the capability for the association to meet its present, 
or planned, financial obligations including operating costs, maintenance 
and repair costs and reserves for replacement? If not, how will any 
deficit be made up?
    (b) Taxes. (1) When will the purchaser's obligation to pay taxes 
begin? To whom are the taxes paid? What are the annual taxes on an 
unimproved lot after the sale to a purchaser? If the taxes are to paid 
to the developer, include a statement that ``Should we not forward the 
tax funds to the proper authorities, a tax lien may be placed against 
your lot.''
    (2) If the subdivision is encompassed within a special improvement 
district or if a special district is proposed, describe the purpose of 
the district and state the amount of assessments. Describe the 
purchasers obligation to retire the debt.
    (c) Violations and litigations. This information need appear only if 
any of the questions are answered in the affirmative. Unless the 
Secretary gives prior approval for it to be omitted, a brief description 
of the action and its present status or disposition shall be given.
    (1) With respect to activities relating to or in violation of a 
Federal, state or local law concerned with the environment, land sales, 
securities sales, construction or sale of homes or home improvements, 
consumer fraud or similar activity, has the developer, the owner

[[Page 44]]

of the land or any of their principals, officers, directors, parent 
corporation, subsidiaries or an entity in which any of them hold a 10% 
or more financial interest, been:
    (i) Disciplined, debarred or suspended by any governmental agency, 
or is there now pending against them an action which could result in 
their being disciplined, debarred or suspended or,
    (ii) Convicted by any court, or is there now pending against them 
any criminal proceedings in any court? (OILSR suspension notices on 
preeffective Statements of Record and amendments need not be listed.)
    (2) Has the developer, the owner of the land, any principal, any 
person holding a 10% or more financial or ownership interest in either, 
or any officer or director of either, filed a petition in bankruptcy? 
Has an involuntary petition in bankruptcy been filed against it or them 
or have they been an officer or director of a company which became 
insolvent or was involved, as a debtor, in any proceedings under the 
Bankruptcy Act during the last 13 years?
    (3) Is the developer or any of its principals, any parent 
corporation or subsidiary, any officer or director a party to any 
litigation which may have a material adverse impact upon its financial 
condition or its ability to transfer title to a purchaser or to complete 
promised facilities? If so, include a warning which describes the 
possible effects which the action may have upon the subdivision.
    (d) Resale or exchange program. (1) Are there restrictions which 
might hinder lot owners in the resale of their lots (e.g., a prohibition 
against posting signs, limitations on access to the subdivision by 
outside brokers or prospective buyers; the developer's right of first 
refusal; membership requirements)? If so, briefly explain the 
restrictions.
    (2) Does the developer have an active resale program? If the answer 
is ``no'', include the following statement: ``We have no program to 
assist you in the sale of your lot.''
    (3) Does the developer have a lot exchange program? If the answer is 
``yes'', describe the program; state any conditions and indicate if the 
program reserves a sufficient number of lots to accommodate all those 
wishing to participate. If there is no program or if sufficient lots are 
not reserved, include one of the following statements as applicable: 
``We do not have any provision to allow you to exchange one lot for 
another'' or ``We do not have a program which assures that you will be 
able to exchange your lot for another.''
    (e) Unusual situations. This topic need appear only if one or more 
of the following cases apply to the subdivision, then only the 
applicable subject, or subjects, will appear.
    (1) Leases. What is the term of the lease? Is it renewable? Is it 
recordable? Can creditors of the developer, or owner, acquire title to 
the property without any obligation to honor the terms of the lease? Are 
the lease payments a flat sum or are they graduated? Can the lessee 
mortgage or otherwise encumber the leasehold? Will the lessee be 
permitted to remove any improvements which have been installed when the 
lease expires or is terminated?
    (2) Foreign subdivision. (i) Is the owner or developer of the 
subdivision a foreign country corporation? If legal action is necessary 
to enforce the contract, must it be taken in the courts of the country 
where the subdivision is located?
    (ii) Does the country in which the subdivision is located have any 
laws which restrict, in any way, the ownership of land by aliens? If so, 
what are the restrictions?
    (iii) Must an alien obtain a permit or license to own land, build a 
home, live, work or do business in the country where the subdivision is 
located? If so, where is such permit or license secured; for how long is 
it valid and what is its cost?
    (3) Time sharing. (i) How is title to be conveyed? How many shares 
will be sold in each lot? How is use time allocated? How are taxes, 
maintenance and utility expenses divided and billed? How are voting 
rights in any Association apportioned? Are there management fees? If so, 
what are their amounts and how are they apportioned?
    (ii) Is conveyance of any portion of the lot contingent upon the 
sale of the

[[Page 45]]

remaining portions? Is the initial buyer responsible for any greater 
portion of the expense than his normal share until the remaining 
interests are sold? If the purchase of any of the portions is financed, 
will the default of one owner have any effect upon the remaining owners?
    (4) Memberships. (i) Does the purchaser receive any interest in 
title to the land? What is the term of the membership? Is it renewable? 
What disposition is made of the membership in the event of the death of 
the member? Are the lots individually surveyed and the corners marked? 
If not, how does the member identify the area which the member is 
entitled to use? What is the approximate square footage the member is 
entitled to use? Are there different classes of membership? How are the 
different classes identified and what are the differences between them?
    (ii) If the member does not receive any interest in the title to the 
land, include a warning to the effect that ``you receive no interest in 
the title to the land but only the right to use it for a certain period 
of time.''
    (f) Equal opportunity in lot sales. State whether or not the 
developer is in compliance with title VIII of the Civil Rights Act of 
1968 by not directly or indirectly discriminating on the basis of race, 
religion, sex or national origin in any of the following general areas: 
Lot marketing and advertising, rendering of lot services, and in 
requiring terms and conditions on lot sales and leases.

An affirmative answer cannot be given if the developer, directly or 
indirectly, because of race, color, religion, sex or national origin is:
    (1) Refusing to sell or lease lots after the making of a bona fide 
offer or to negotiate for the sale or lease of lots or is otherwise 
making unavailable or denying a lot to any person, or
    (2) Discriminating against any person in the terms, conditions or 
privileges in the sale or leasing of lots or in providing services or 
facilities in connection therewith, or
    (3) Making, printing, publishing or causing to be made, printed or 
published any notice, statement or advertisement with respect to the 
sale or leasing of lots that indicates any preference, limitation or 
discrimination against any person, or
    (4) Representing to any person that any lot is not available for 
inspection, sale or lease when such lot is in fact available, or
    (5) For profit, inducing or attempting to induce any person to sell 
or lease any lot by representations regarding the entry or non-entry 
into the neighborhood of a person or persons of a particular race, 
color, religion, sex or national origin.
    (g) Listing of lots. Provide a listing of lots which shall consist 
of a description of the lots included in the Statement of Record by the 
names or number of the section or unit, if any; the block number, if 
any; and the lot numbers. The lots shall be listed in the most efficient 
and concise manner. If the filing is a consolidation, the listing shall 
include all lots registered to date in the subdivision, except any which 
have been deleted by amendment.

[44 FR 21453, Apr. 10, 1979, as amended at 49 FR 31370, 31371, Aug. 6, 
1984]



Sec. 1710.117  Cost sheet, signature of Senior Executive Officer.

    (a) Cost sheet--Format. (1) The cost sheet shall be prepared in 
accordance with the following format and paragraph (a)(2) of this 
section.

                               Cost Sheet

    In additon to the purchase price of your lot, there are other 
expenditures which must be made.
    Listed below are the major costs. There may be other fees for use of 
the recreational facilities.
    All costs are subject to change.

                               Sales Price
Cash Price of lot...........................................  $.........
                                                                  ......
Finance Charge..............................................  $.........
                                                                  ......
                                                             -----------
      Total.................................................  $.........
                                                                  ......
                                                             ===========
                     Estimated one-time charges@@Q02
1. Water connection fee/installation or private well........  $.........
                                                                  ......
2. Sewer connection fee/installation of private on-site       $.........
 sewer system...............................................      ......
3. Construction costs to extend electric and/or telephone     $.........
 services...................................................      ......
4. Other (Identify).........................................  $.........
                                                                  ......
                                                             -----------
                                                              $.........
                                                                  ......
                                                             ===========
      Total of estimated sales price and one-time charges...  $.........
                                                                  ......
                                                             ===========

[[Page 46]]

 
     Estimated monthly/annual charges, exclusive of utility use fees
1. Taxes--Average unimproved lot after sale to purchaser....  $.........
                                                                  ......
2. Dues and assessments.....................................  $.........
                                                                  ......
 

    The information contained in this Property Report is an accurate 
description of our subdivision and development plans.

________________________________________________________________________
    Signature of Senior Executive Officer

    (2) Cost sheet instructions. (i) All amounts for cost sheet items 
will be entered before the purchaser signs the receipt. However, any 
costs that are identical for all lots may be pre-printed.
    (ii) If a central water or sewer system will be used in all or part 
of the subdivision and a private system in all or other parts, then the 
portion that does not apply to the purchaser's lot shall be crossed out.
    (iii) If individual private systems may be used prior to the 
availability of service from any central system and the purchaser is not 
required to connect to any central system, both figures may be entered 
or only the highest cost figures may be used with a parenthetical 
explanation or footnote. If the purchaser is required to connect to any 
central system and discontinue the use of his private system when 
central service is available, both cost figures shall be given, together 
with an explanation or footnote.
    (iv) If there is a one time, lump sum ``availability fee'' which is 
assessed to the purchaser in connection with a central utility, include 
under ``other'' and identify.
    (v) Dues and assessments need be included only if they are 
involuntary regardless of use.
    (vi) At the discretion of the Secretary, where there is extreme 
diversity in the figures for different areas of the subdivision, 
variations may be permitted as to whether the figures will be printed, 
entered manually, or a range of costs used or any combination of these 
features.
    (vii) The estimated annual taxes shall be based upon the projected 
valuation of the lot after sale to a purchaser.
    (b) Signature of the Senior Executive Officer. The Senior Executive 
Officer or a duly authorized agent shall sign the property report. 
Facsimile signatures may be used for p--urposes of reproduction of the 
property Report.

[44 FR 21453, Apr. 10, 1979, as amended at 49 FR 31371, Aug. 6, 1984]



Sec. 1710.118  Receipt, agent certification and cancellation page.

    (a) Format. The receipt, agent certification and cancellation page 
shall be prepared in accordance with the sample printed herein.

                                     

           Receipt, Agent Certification and Cancellation Page

                            purchaser receipt

                        Important: Read Carefully

Name of subdivision_____________________________________________________

OILSR number____________________________________________________________
Date of report__________________________________________________________

    We must give you a copy of this Property Report and give you an 
opportunity to read it before you sign any contract or agreement. By 
signing this receipt, you acknowledge that you have received a copy of 
our Property Report.

Received by_____________________________________________________________
Date____________________________________________________________________

Street address__________________________________________________________

City____________________________________________________________________
State___________________________________________________________________
Zip_____________________________________________________________________

    If any representations are made to you which are contrary to those 
in this Report, please notify the:

    Office of Interstate Land Sales Registration HUD Building, 451 
Seventh Street, S.W. Washington, D.C. 20410

                           Agent Certification

    I certify that I have made no representations to the person(s) 
receiving this Property Report which are contrary to the information 
contained in this Property Report.

Lot_____________________________________________________________________
Block___________________________________________________________________
Section_________________________________________________________________

Name of salesperson_____________________________________________________

Signature_______________________________________________________________
Date____________________________________________________________________


[[Page 47]]

________________________________________________________________________

                          Purchase Cancellation

    If you are entitled to cancel your purchase contract, and wish to do 
so, you may cancel by personal notice, or in writing. If you cancel in 
person or by telephone, it is recommended that you immediately confirm 
the cancellation by certified mail. You may use the form below.

Name of subdivision_____________________________________________________

Date of contract________________________________________________________

This will confirm that I/we wish to cancel our purchase contract.

Purchaser(s) signature__________________________________________________
Date____________________________________________________________________
    (b) The original and one copy of this page shall be attached to the 
Property Report delivered to prospective purchasers. Carbon paper may be 
inserted between the two so that after the purchaser has signed the 
receipt and the salesman has signed the certification, the copy can be 
detached and retained by the developer for a period of three years from 
the date of execution or the term of the contract, whichever is the 
longer. Upon demand by the Secretary, the developer shall, without 
delay, make the copies of these receipts and certifications available 
for inspection by the Secretary or the developer shall forward to the 
Secretary any of the receipts and certifications, or copies thereof, as 
the Secretary may specify.
    (c) If the transaction takes place through the mails, the cost 
figures shall be entered and the person most active in dealing with the 
prospective purchaser shall sign the certification prior to mailing the 
Property Report to the purchaser. Otherwise, the certification shall be 
executed in the presence of the purchaser.
    (d) The date of Report appearing on the receipt shall be the same as 
that appearing on the cover sheet of the Property Report.
    (e) Notification of cancellation by mail shall be considered given 
at the time post-marked.



Sec. 1710.200  Instructions for Statement of Record, Additional Information and Documentation.

    The Additional Information and Documentation portion of the 
Statement of Record shall contain the statements and documents required 
in Secs. 1710.208 through 1710.219. Each section number and its 
associated heading and each paragraph letter or number and their 
associated subheadings or captions must appear in this portion. 
Following each heading, subheading, or caption printed in this portion, 
the registrant shall insert an appropriate response. If a heading, 
subheading, or caption does not apply to the subdivision, it shall be 
followed by the words ``not applicable''. Immediately after the page(s) 
on which the section number and answers for that section appear, insert 
the information or documents which support that section. In addition to 
the statements and documentation expressly required there shall be added 
any further material, information, documentation and certifications as 
may be necessary in the public interest and for the protection of 
purchasers or to cause the statements made to be not misleading in the 
light of the circumstances under which they are made.



Sec. 1710.208  General information.

    (a) Administrative information. (1) State whether the material 
represents an initial Statement of Record or a consolidated Statement of 
Record. If it is a consolidated Statement of Record, identify the 
original OILSR number assigned to the initial Statement of Record. State 
whether subsequent Statements of Record will be submitted for additional 
lots in the subdivision.
    (2) Has the developer submitted a request for an exemption for the 
subdivision?
    (3) List the states in which registration has been made by the 
developer for the sale of lots in the subdivision.
    (4) If any State listed in paragraph (a)(3) of this section has not 
permitted a registration to become effective or has suspended the 
registration or prohibited sales, name the State involved and give the 
reasons cited by the State for their action.
    (5) State whether the developer has made, or intends to make, a 
filing with the U.S. Securities and Exchange Commission (SEC) which is 
related in any way to the subdivision. If a filing has been made with 
the SEC, give the SEC identification number; identify the prospectus by 
name; date of filing and

[[Page 48]]

state the page number of the prospectus upon which specific reference to 
the subdivision is made. Any disciplinary action taken against the 
developer by the SEC should be disclosed in Secs. 1710.116 and 1710.216.
    (b) Subdivision information. (1) If this is a consolidated Statement 
of Record, state the number of lots being added, the number of lots in 
prior Statements of Record and the new total number of lots. The 
Secretary must be able to reconcile the numbers stated here with the 
title evidence; the plat maps and the disclosure in Sec. 1710.108.
    (2) State the number of acres represented by the lots in this 
Statement of Record. If this is a consolidated Statement of Record, 
state the number of acres being added, the number of acres in prior 
Statements of Record and the new total number of acres. State the total 
acreage owned in the subdivision, the number of acres under option or 
similar arrangement for acquisition of title to the land and the total 
acreage to be offered pursuant to the same common promotional plan.
    (3) State whether any lots have been sold in this subdivision since 
April 28, 1969 and prior to registration with this Office. If they were 
sold pursuant to an exemption, identify the exemption provision and 
state whether an advisory opinion, exemption order or exemption 
determination was obtained with respect to those lots sales. Give the 
OILSR number assigned to the exemption, if any.
    (c) Developer information. (1) State the name, address, Internal 
Revenue Service number and telephone number of the owner of the land. If 
the owner is other than an individual, name the type of legal entity and 
list the interest, and extent thereof, of each principal. Identify the 
officers and directors.
    (2) If the developer is not the owner of the land, state the 
developer's name, address, Internal Revenue Service number and telephone 
number. If the developer is other than an individual, name the type of 
legal entity and list the interest, and the extent thereof, of each 
principal. Identify the officers and directors.
    (3) If you wish to appoint an authorized agent, state the agent's 
name, address and telephone number and scope of responsibility. This 
shall be the party designated by the developer to receive 
correspondence, service of process and notice of any action taken by 
OILSR. In all Statements of Record, including those for foreign 
subdivisions, the authorized agent shall be a resident of the United 
States. A change of the authorized agent will require an appropriate 
amendment.
    (4) State whether the owner of the land, the developer, its parent, 
subsidiaries or any of the principals, officers or directors of any of 
them are directly or indirectly involved in any other subdivision 
containing 100 or more lots. If so, identify the subdivision by name, 
location, and OILSR number, if any.
    (5) State whether the owner or developer is a subsidiary 
corporation. If either the owner or developer is a subsidiary 
corporation or if any of the principals of the owner or developer are 
corporate entities, name the parent and/or corporate entity and state 
the principals of each to the ultimate parent entity.
    (d) Documentation. (1) Submit a copy of the property report, 
subdivision report, offering statement or similar document filed with 
the state or states with which the subdivision has been registered.
    (2) Submit a copy of a general plan of the subdivision. This general 
plan must consist of a map, prepared to scale, and it must identify the 
various proposed sections or blocks within the subdivision, the existing 
or proposed roads or streets, and the location of the existing or 
proposed recreational and/or common facilities. In an initial filing, 
this map must at least show the area included in the Statement of 
Record. In a consolidated Statement of Record, show areas being added, 
as well as the areas previously registered. If a map of the entire 
subdivision is submitted with the initial Statement of Record, and if no 
substantial changes are made when material for a consolidated Statement 
of Record is submitted, the original map may be incorporated by 
reference.
    (3)(i) If the developer is a corporation, submit a copy of the 
articles of incorporation, with all amendments; a copy of the 
certificate of incorporation

[[Page 49]]

or a certificate of a corporation in good standing and, if the 
subdivision is located in a state other than the one in which the 
original certificate of corporation was issued, a certificate of 
registration as a foreign corporation with the state where the 
subdivision is located.
    (ii) If the developer is a partnership, unincorporated association, 
joint stock company, joint venture or other form of organization, submit 
a copy of the articles of partnership or association and all other 
documents relating to its organization.
    (iii) If the developer is not the owner of the land, submit copies 
of the above documents for the owner.

[44 FR 21453, Apr. 10, 1979, as amended at 45 FR 40489, June 13, 1980; 
49 FR 31371, Aug. 6, 1984]



Sec. 1710.209  Title and land use.

    (a) General information. (1) State whether the developer has 
reserved the right to exchange or withdraw lots after a purchaser has 
signed a sales contract (e.g., for prior sales, failure to pass credit 
check). If yes, indicate this authority and make reference to the 
applicable paragraph in the sales contract or other document.
    (2) State whether there is a provision giving purchasers an option 
to exchange lots. If yes, indicate this and make reference to the 
applicable paragraph in the sales contract or other document.
    (3) State whether the developer knows of any instruments not of 
record which, if recorded, would affect title to the subdivision. If 
yes, copies of these instruments shall be submitted, except that copies 
of unrecorded contracts for sales of lots in the subdivision need not be 
submitted.
    (4)(i) Identify the Federal, State and local agencies or similar 
organizations which have the authority to regulate or issue permits, 
approvals or licenses which may have a material effect on the 
developer's plans with respect to the proposed division of the land, and 
any existing or proposed facilities, common areas or improvements to the 
subdivision.
    (ii) Describe or identify the land or facilities affected; the 
permit, approval or license required; and indicate whether the permit, 
approval or license has been obtained by the developer.
    (iii) If no agency regulates the division of the land or issues any 
permits, approvals or licenses with respect to improvements, so state.
    (iv) Answers must specifically cover the areas of environmental 
protection; environmental impact statements; and construction, dredging, 
bulkheading, etc. that affect bodies of water within or around the 
subdivision. Also include licenses or permits required by water 
resources boards, pollution control boards, river basin commissions, 
conservation agencies or similar organizations.
    (5) State whether it is unlawful to sell lots prior to the final 
approval and recording of a plat map in the jurisdiction where the 
subdivision is located.
    (b) Title evidence. (1) Submit title evidence that specifically 
states the status of the legal and equitable title to the land 
comprising the lots covered by the Statement of Record and any common 
areas or facilities disclosed in the Property Report. Title evidence 
need not be submitted for those common areas and facilities which are 
not owned by the developer.
    (2) Acceptable title evidence shall be dated no earlier than 20 
business days preceding the date of the filing of the Statement of 
Record with the Secretary. Previously issued title evidence may be 
updated to the date referred to in the preceding sentence by 
endorsements or attorneys' opinions of title.
    (3) The developer shall amend the title evidence to reflect the 
change in status of title of any previously registered, reacquired lots 
unless their status is at least as marketable as they were when first 
offered for sale by the developer as registered lots.
    (c) Forms of acceptable title evidence. (1) An original or a copy of 
a signed owner's or mortgagee's policy of title insurance, title 
commitment, certificate of title or similar instrument issued by a title 
company authorized by law to issue such instruments in the state in 
which the subdivision is located. Title evidence that limits insurance 
or negligence liability to amounts less than the market value of the 
subject land at the time of its acquisition

[[Page 50]]

by the subdivision owner is not acceptable;
    (2) A legal opinion stating the condition of title, prepared and 
signed by an attorney at law experienced in the examination of titles 
and a member of the Bar in the state in which the property is located. 
The title opinion may be based on a Torrens land registration system 
certificate of title, or similar instrument, provided it meets all 
general title evidence requirements of this section and a copy of the 
registration certificate of title is submitted. Title opinions that 
limit negligence liability to amounts less than the market value of the 
subject land at the time of its acquisition by the subdivision owner are 
not acceptable.
    (d) Title searches. The required evidence of the status of title 
shall be based on a search of all public records which may contain 
documents affecting title to the land or the developer's ability to 
deliver marketable title. The search must cover a period which is 
required or generally considered adequate for insuring marketability of 
title in the jurisdiction in which the subdivision is located. Such 
search shall include an examination of at least the following documents:
    (1) The records of the recorder of deeds or similar authority;
    (2) U.S. Internal Revenue Liens;
    (3) The records of the circuit, probate, or other courts including 
Federal courts and bankruptcy or reorganization proceedings which have 
jurisdiction to affect the title to the land;
    (4) The tax records;
    (5) Financing statements filed pursuant to the Uniform Commercial 
Code or similar law. If it is held that the financing statements do not 
affect the title of the land, include a statement of the legal authority 
for that opinion.

This search may be accomplished through the use of a title insurance 
company title plant, the information in which is based on current 
searches of the appropriate and necessary documents, including as a 
minimum those listed immediately above. For any attorney's title opinion 
based on Torrens certificates of title, the title search need only go 
beyond the original time of registration of the certificate of title for 
those types of encumbrances which were not conclusively settled by the 
proceedings at the time of such registration. In such cases, the 
required statement shall clearly reflect the documents and periods 
searched.
    (e) Items to be included in the title evidence. The acceptable title 
evidence must include the following information, instruments and 
statements and need not be repeated or duplicated elsewhere in the 
Statement of Record.
    (1) A legal description of the land on which the lots, common areas, 
and facilities covered by the title evidence are located. This legal 
description shall be adequate for conveying land in the jurisdiction in 
which the subdivision is located. If this legal description is based on 
a recorded plat, the lot numbers, recording place, book name, book 
number, and page number shall be stated in the description. If this 
legal description is given by metes and bounds, the title evidence shall 
include or be accompanied by a certified statement of the preparer of 
the title evidence, a licensed attorney, or an engineer or surveyor, 
indicating that all subject lots, common areas, and common facilities 
are encompassed within the metes and bounds description in the evidence. 
If at any time after the submission of the legal description required 
above, the description of the subject land is changed or found to be in 
error, a correcting amendment shall be made to the Statement of Record.
    (2) The name of the person(s) or other legal entity(ies) holding fee 
title to the property described.
    (3) The name of any person(s) or other legal entity(ies) holding a 
leasehold estate or other interest of record in the property described.
    (4) A listing of any and all exceptions or objections to the title, 
estate or interest of the person(s) or legal entity(ies) referred to in 
paragraph (e)(2) or (e)(3) of this section, including any encumbrances, 
easements, covenants, conditions, reservations, limitations or 
restrictions of record. (Any reference to exceptions or objections to 
title shall include specific references to the instruments in the public 
records upon which they are based). When an objection or exception to 
title affects less than all of the property covered by this Statement of 
Record, the title evidence

[[Page 51]]

shall specifically note what portion of the property is so affected.
    (5) Copies of all instruments in the public records specifically 
referred to in paragraph (e)(4) of this section. (Abstracts of such 
instruments are acceptable if prepared by an attorney or professional or 
official abstractor qualified and authorized by law to prepare and 
certify such abstracts and if the abstracts contain a material portion 
of the recorded instruments sufficient to determine the nature and 
effect of such instruments.) Also include copies of any release 
provisions, relating to encumbrances on the property described, which 
are not included in the documents otherwise required by this section.
    (6) If an attorney's title opinion has been submitted pursuant to 
this section which has been based on a Torrens land registration 
certificate of title, submit a copy of such certificate.
    (f) Supplemental title information. (1) If there is a holder of an 
ownership interest in the land other than the developer, submit a copy 
of any documentation which evidences the developers' authorization to 
develop and/or sell the land.
    (2) Submit copies of any trust deeds, deeds in trust, escrow 
agreements or other instruments which purport to protect the purchaser 
in the event of default or bankruptcy by the developer on any instrument 
or instruments which create a blanket encumbrance upon the property 
unless they have been previously provided as part of ``title evidence'' 
submitted pursuant to paragraph (e) of this section.
    (3)(i) Submit copies of all forms of contracts or agreements and 
notes to be used in selling or leasing lots. The contracts or 
agreements, including promissory notes, must contain the following 
language in boldface type (which must be distinguished from the type 
used for the rest of the contract) on the face or signature page above 
all signatures:

    You have the option to cancel your contract or agreement of sale by 
notice to the seller until midnight of the seventh day following the 
signing of the contract or agreement.
    If you did not receive a Property Report prepared pursuant to the 
rules and regulations of the Office of Interstate Land Sales 
Registration, U.S. Department of Housing and Urban Development, in 
advance of your signing the contract or agreement, the contract or 
agreement of sale may be cancelled at your option for two years from the 
date of signing.

    (ii) If the purchaser is entitled to a longer revocation period by 
operation of State law or the Act, that period becomes the Federal 
revocation period and the contract or agreement must reflect the 
requirements of the longer period, rather than the seven days. This 
language shall be consistent with that shown on the Cover Page (see 
Sec. 1710.105).
    (iii) The revocation provisions may not be limited or qualified in 
the contract or other document by requiring a specific type of notice or 
by requiring that notice be given at a specified place.
    (iv) If it is represented that the developer will provide or 
complete roads or facilities for waters, sewer, gas, electric service or 
recreational amenities, the contract must contain a provision that the 
developer is obligated to provide or complete such roads, facilities and 
amenities (see Sec. 1715.15(f)).
    (4) Submit copies of deeds and leases by which the developer will 
lease or convey title to the lots to purchasers or lessees.
    (g) Plat maps, environmental studies and restrictions--(1) Plat 
maps. (i) In those jurisdictions where it is unlawful to sell lots prior 
to final approval and recording of the plat, and in those cases where a 
plat has been recorded, submit a copy of the recorded plat. This plat 
should be an exact copy of the recorded document. It should reflect the 
signatures of the approving authorities and bear a stamp or notation by 
the recorder of deeds, or similarly constituted officer, as to the 
recording data.
    (ii) If the plat has not been approved by the local authorities nor 
recorded, and if it is not unlawful to sell lots prior to final approval 
and recording, submit a map which has been prepared to scale and which 
shows the proposed division of the land, the lot dimensions and their 
relation to proposed or existing streets and roads. The map shall 
contain sufficient engineering data to enable a surveyor to locate the 
lots.

[[Page 52]]

    (iii) Whether recorded or unrecorded, the plat or map should show:
    (A) The dimensions of each lot, stated in the standard unit of 
measure acceptable for such purposes in the political subdivision where 
the land is located.
    (B) A clear delineation of each of the lots and any common areas or 
facilities.
    (C) Any encroachments or rights-of-way on, over, or under the land, 
or a notation of these items together with the identity of the lots 
affected.
    (D) The courses, distances and monuments, natural or otherwise, of 
the land's boundaries; contiguous boundaries and identification or 
ownership of adjoining land and names of abutting streets, ways, etc.
    (E) The location of the section or unit encompassing the lots in 
relationship to the larger tract, or tracts, in the subdivision.
    (F) The delineation of any flood plains or flood control easments 
affecting any of the lots.
    (iv) The plat, or map shall be prepared by a licensed surveyor or 
engineer.
    (v) If all lots on each page of the plat are not included in the 
Statement of Record with which the plat or map is submitted, then the 
lots which are to be included in the Statement of Record shall be 
identified on the plat or map; a legend describing the method of 
identification shall be entered on the face of the plat or map and the 
number of lots so identified entered in the lower right hand corner of 
the plat map. The Secretary must be able to reconcile the totals of 
these numbers with the information given in Secs. 1710.108 and 1710.208 
of the Statement of Record and the title evidence.
    (2) Environmental impact study. If the developer is aware of any 
environmental impact study which considers the effect of the subdivision 
on the environment, submit a summary of that study.
    (3) Restrictions or covenants. Submit a copy of any recorded or 
proposed restrictions or covenants for the subdivision if not submitted 
elsewhere in this Statement of Record.

A copy of these restrictions or covenants shall be delivered to a 
prospective purchaser upon request. A supply shall be maintained at 
whatever place or places as will be necessary to allow immediate 
delivery upon request.

[44 FR 21453, Apr. 10, 1979, as amended at 45 FR 40489, June 13, 1980; 
49 FR 31371, Aug. 6, 1984]



Sec. 1710.210  Roads.

    (a) State the estimated cost to the developer of the proposed road 
system.
    (b) If the developer is to complete any roads providing access to 
the subdivision, submit copies of any bonds or escrow agreements which 
have been posted to guarantee completion thereof.
    (c) Submit copies of any bonds or escrow agreements which have been 
posted to assure completion of the roads within the subdivision.
    (d) If the interior roads are to be maintained by a public 
authority, submit a copy of a letter from that authority which states 
that the roads have been, or the conditions upon which they will be, 
accepted for maintenance and when.



Sec. 1710.211  Utilities.

    (a) Water. (1) State the estimated cost to the developer of the 
central water system.
    (2) If water is to be supplied by a central system, furnish a letter 
from the supplier that it will supply the water. If the system is 
operated by a governmental division or by an entity whose operations are 
regulated by a governmental agency but which is not affiliated with or 
under the control of the developer, the letter shall include a statement 
that the supply of water will be sufficient to serve the anticipated 
population of the subdivision or how many homes or connections it can 
and will serve and that the water is tested at regular intervals and has 
been found to meet all standards for a public water supply.
    (3) If the water is to be supplied by individual wells, by an entity 
which is not regulated by a governmental agency, by the developer or by 
an entity which is affiliated with or controlled by the developer, 
submit a copy of any

[[Page 53]]

engineers' reports or hydrological surveys which indicate there is a 
sufficient supply of water to serve the anticipated population of the 
subdivision.
    (4) If the supplier of water is not in one of the categories in 
paragraph (a)(2) of this section, submit a copy of a letter or report 
from a cognizant health officer, or from a private laboratory licensed 
by the state to perform tests and issue reports on water, to the effect 
that the water was found to meet all drinking water standards required 
by the state for a public water system.
    (5) If any bond, escrow agreement or other financial assurance of 
the completion of the central system, including any phases which are to 
be constructed in the future, has been posted by the developer or an 
entity not regulated by a government agency, furnish a copy of the 
document.
    (6) Furnish a copy of any permits which have been obtained by the 
developer or any entity affiliated with or under the control of the 
developer in connection with the construction and operation of the 
central system. If a permit is required to install individual wells, 
submit a letter from the proper authority which states the requirements 
for obtaining the permit and that there is no objection to the use of 
individual wells in the subdivision.
    (7) Furnish a copy of any membership agreement or contract which 
allows or requires lot owners to use the central water system. If this 
document is furnished elsewhere in the Statement of Record, reference to 
it may be made here.
    (b) Sewer. (1) State the estimated cost to the developer of the 
central sewer system.
    (2) If sewage disposal is to be by individual on-site systems, 
furnish a letter from the local health authorities giving general 
approval to the use of these systems in the subdivision or giving 
specific approval for each and every lot.
    (3) If sewage disposal is to be through a central system which is 
owned and operated by a governmental division, or by an entity whose 
operations are regulated by a governmental agency but which is not 
affiliated with, or under the control of, the developer, furnish a 
letter from the entity that it will provide this service and that its 
treatment facilities have the capacity to serve the anticipated 
population of the subdivision or how many homes or connections it can 
and will serve.
    (4) Furnish a copy of any permits obtained by the developer or any 
entity affiliated with or under the control of the developer, for the 
construction and operation of the central sewer system or construction 
and use of any other method of sewage disposal contemplated for the 
subdivision except those to be obtained by individual lot owners at a 
later date.
    (5) If any bond, escrow agreement or other financial assurance of 
the completion of the central system or other system for which the 
developer is responsible, and any future expansion, has been posted, 
furnish a copy of the document.
    (6) Furnish a copy of any membership agreement of contract which 
allows, or requires, the lot owners to use the central system. If this 
document is furnished elsewhere in the Statement of Record, it may be 
incorporated here by reference.
    (c) Electricity. Give an estimate of the total construction cost to 
be expended by the developer and submit any instrument providing 
financial assurance of completion of the facilities which has been 
posted by the developer.
    (d) Telephone. Give an estimate of the total construction cost to be 
expended by the developer and submit a copy of any instrument providing 
financial assurance of the completion of the facilities which has been 
posted by the developer.



Sec. 1710.212  Financial information.

    (a) Financing of improvements. Describe the financing plan that is 
to be used in financing on-site or off-site improvements proposed in the 
Statement of Record.
    (b) Complete the following format:
    (1) Estimated date for full completion of amenities
    (2) Projected date for complete sell out of subdivision
    (3) Cost and expense recap for lots included in this Statement of 
Record:

[[Page 54]]


(If the subdivision or common promotional plan contains, or will 
contain, 1000 or more lots, furnish this information in its entirety. If 
the subdivision or common promotional plan contains, or will contain, 
less than 1,000 lots, only paragraphs (b)(3) (iii) and (iv) need be 
completed.)
    (i) Land acquisition cost or current fair market value of land.
    (ii) Development and improvement costs (include the estimated cost 
of such items as roads, utilities, and amenities which the developer 
will incur).
    (iii) Estimated marketing and advertising costs.
    (iv) Estimated sales commission.
    (v) Interest (include cost in financing the land purchase, 
improvements, or other borrowings).
    (vi) Estimated other expenses (include general costs, administrative 
costs, profit, etc.).
    (vii) Total.
    (4) Total land sales revenue:
    (i) Estimated total land sales income.
    (ii) Estimated other income.
    (iii) Total income.
    (c) Financial statements. (1) Submit a copy of the developer's 
financial statements for the last full fiscal year. These statements 
shall be prepared in accordance with generally accepted accounting 
principles as prescribed by the Financial Accounting Standards Board and 
generally accepted auditing standards as prescribed by the American 
Institute of Certified Public Accountants, and shall be audited by an 
independent licensed public accountant. They shall include a balance 
sheet, a statement of profit and loss, a statement of changes in 
financial condition and a certified opinion by the accountant. The 
statements shall be no more than six months old on the date the 
Statement of Record is submitted.
    (2) If the audited statements are more than six months old at the 
date of submission of the Statement of Record, or if the last full 
fiscal year has ended within the last 90 days and audited Statements are 
not yet available, the developer may submit a copy of the audited 
statements for the previous full fiscal year and supplement them with 
unaudited, interim statements so that the financial information is no 
more than six months old on the date that the Statement of Record is 
submitted. The interim statements may be prepared by company personnel 
but must contain a balance sheet, a statement of profit and loss and a 
statement of changes in financial condition and be prepared in 
accordance with generally accepted accounting principles.
    (d) Annual report. (1) Each year after the initial effective date, 
the developer shall submit a copy of its latest financial statements. 
These statements must meet the standards set out in Sec. 1710.212(c)(1), 
unless the developer has qualified for an exception under 
Sec. 1710.212(e), and must be submitted within 120 days after the close 
of the developer's fiscal year.
    (2) If a developer has submitted its latest statements with a 
consolidated filing since the close of its fiscal year and prior to the 
end of the 120 day period, a second submission of the statements to 
comply with this section is not necessary.
    (3) If the developer no longer has an active sales program on the 
date this report is due, the information set forth in 
Sec. 1710.310(c)(7)(iii) may be furnished in lieu of this report.
    (e) Exceptions. (1) If the developer does not have audited financial 
statements and the criteria in one of the following exceptions are met, 
statements need not be audited and certified but must meet all of the 
other requirements set forth in paragraphs (c)(1) and (2) of this 
section.
    (2) The term ``conveys title free of any mortgage or lien'' in these 
exceptions is not intended to prohibit the taking of an instrument as 
security for the lot purchase price after title is conveyed. For the 
purposes of these exceptions, these definitions shall apply:
    (i) ``Deed'' shall mean a warranty deed, or its equivalent, which 
conveys title free and clear of liens and encumbrances.
    (ii) ``Assurance of Title Agreement'' shall mean a legal arrangement 
whereby the purchaser is guaranteed a deed upon payment of no more than 
the full purchase price of the lot (e.g. subdivision trust). In addition 
to a copy of any

[[Page 55]]

Assurance of Title Agreement, the Secretary may require additional 
documentation such as an attorney's opinion letter to assure that the 
purchaser's title is fully protected.
    (iii) ``Date of contract'' shall mean the date on which the contract 
or agreement is signed by the purchaser.
    (iv) ``Escrow or trust account as to down payments and deposits'' 
shall mean an account, established in accordance with local real estate 
laws or regulations, which assures the return to the purchaser of any 
monies paid in the event title is not delivered to the purchaser in 
accordance with the terms of the contract.
    (3) The exceptions are:
    (i) The aggregate sales price of all lots offered pursuant to a 
common promotional plan equals $500,000.00 or less; or
    (ii) Each of the following conditions of paragraphs (e)(3)(ii)(A) 
and (B) are met, plus the conditions of one of paragraphs (e)(3)(ii)(C), 
(D), or (E):
    (A) Downpayments and deposits are held in an escrow or trust 
account.
    (B) The contract provides for delivery of a deed which conveys title 
free of any mortgage or lien within 180 days of the signing of the 
contract. (In lieu of delivery of a deed, the developer may submit to 
OILSR an Assurance of Title Agreement.)
    (C) The aggregate sales prices of all lots offered pursuant to a 
common promotional plan is at least $500,000 but less than $1,500,000.
    (D) All facilities, utilities and amenities proposed by the 
developer in the Property Report or sales contract have been completed 
so that the lots in the Statement of Record are immediately usable for 
the purpose for which they are sold.
    (E) (1) The developer is contractually obligated to the purchaser to 
complete all facilities, utilities and amenities proposed by the 
developer in the Property Report and sales contract so that all lots 
included in the Statement of Record will be usable for the purpose for 
which they are sold by the dates set out in the Property Report, and;
    (2) The developer has made financial arrangements, such as the 
posting of surety bonds (corporate bonds or individual notes or bonds 
are not acceptable), irrevocable letters of credit or the establishment 
of escrow or trust accounts, which assure completion of all facilities, 
utilities and amenities proposed by the developer in the Property Report 
or contract.
    (f) Newly-formed entity. If the developer is newly formed or has not 
had any significant operating experience, an audited or unaudited 
balance sheet and statements of receipts and disbursements of funds may 
be submitted.
    (g) Use of parent company statements. If the developer is a 
subsidiary company and does not have audited financial statements, the 
Secretary may permit the use of the audited and certified statements of 
the parent company: Provided, That those statements are accompanied by 
an unconditional guaranty that the parent shall perform and fulfill the 
obligations of the subsidiary. If this procedure is adopted, the 
developer shall submit the following:
    (1) The audited and certified financial statements of the parent 
company, together with interim statements if necessary, which comply 
with Sec. 1710.212(c).
    (2) A properly executed guaranty in a form acceptable to the 
Secretary.

The disclosure information required in Sec. 1710.112 shall be 
appropriately amended to reference the parent company and not the 
developer and must include a statement to the effect that the 
developer's parent company (insert name) has entered into an 
unconditional guaranty to perform and fulfill the obligations of the 
developer.
    (h) Opinions. If the accountant qualifies or disclaims his opinion, 
the Secretary may accept the statements and require such additional 
disclosure as the Secretary deems necessary in the public interest or 
for the protection of purchasers.
    (i) Copies for prospective purchasers. Copies of the financial 
statements filed with the Statement of Record shall be made available to 
prospective purchasers upon request. A supply of the latest submitted 
statements shall be maintained at whatever place, or places, as is 
necessary to allow immediate delivery upon request by a prospective 
purchaser. These statements shall contain financial information

[[Page 56]]

only and shall not include any promotional material such as that usually 
set forth in annual reports.
    (j) Change from audited to unaudited statements. (1) Developers who 
file audited statements must continue with audited statements throughout 
the duration of the registration unless, at a later date, the developer 
submits amendments which demonstrate to the satisfaction of the 
Secretary that it then qualifies for an exception from audited 
statements under paragraph (e)(3)(ii) of this section. For purposes of 
paragraph (e)(3)(ii)(C) of this section, the Secretary will consider the 
aggregate sales prices of only the lots yet to be sold, and may consider 
whether any additions to the subdivisions or reacquisitions of lots 
already sold would be likely to cause the dollar limits to be exceeded.
    (i) The aggregate sales prices of the lots yet to be sold in the 
subdivision has been reduced to less than $1,500,000.00, and that it 
will not exceed this amount through further additions to the subdivison, 
or through the reacquisition of lots already sold, and;
    (ii) The sales contract provides for delivery of a deed within 120 
days of the date of the contract which conveys title free and clear of 
any mortgage or lien or the developer files an Assurance of Title 
Agreement with OILSR, and;
    (iii) Any down payments or deposits are held in an escrow or trust 
account, or;
    (iv) The developer then qualifies for exception (e)(3)(iii) or 
(e)(3)(iv) above.
    (2) The Secretary may allow a developer, who has made sales prior to 
registration, to submit unaudited statements under the provisions of 
paragraph (j)(1)(i) of this section. The developer must demonstrate to 
the satisfaction of the Secretary that the acceptance of unaudited 
statements would not be a detriment to the public interest or to the 
protection of purchasers.

[44 FR 21453, Apr. 10, 1979, as amended at 45 FR 40490, June 13, 1980; 
49 FR 31372, Aug. 6, 1984; 50 FR 10942, Mar. 19, 1985]



Sec. 1710.214  Recreational facilities.

    (a) Submit a synopsis of the proposed plans and estimated cost of 
any proposed or partially constructed recreational facility disclosed in 
Sec. 1710.114. This item should include the general dimensions and a 
brief description of the facility but it should not include blueprints 
or similar technical materials.
    (b) Submit a copy of any bond or escrow arrangements to assure 
completion of the recreational facilities disclosed in Sec. 1710.114 
which are not structurally complete.
    (c) Submit a copy of the lease for any leased recreational facility.



Sec. 1710.215  Subdivision characteristics and climate.

    (a) Submit two copies of a current geological survey topographic 
map, or maps, of the largest scale available from the U.S. Geological 
Survey with an outline of the entire subdivision and the area included 
in this Statement of Record clearly indicated. Photo copies made by the 
developer are not acceptable. Do not shade the areas on the maps which 
have been outlined.
    (b) If drainage facilities are proposed but not yet completed, 
submit a synopsis of the developer's proposed plans which includes a 
description of the system of collecting surface waters; a description of 
the steps to be taken to control erosion and sedimentation and the 
estimated cost of the drainage facilities.
    (c) Submit copies of any bonds, escrow or trust accounts or other 
financial assurance of completion of the drainage facilities.
    (d) State whether the jurisdiction in which the subdivision is 
located has a system for rating the land for fire hazards.



Sec. 1710.216  Additional information.

    (a) Property Owners' Association. (1) If the association has been 
formed as a legal entity, submit a copy of the articles of association, 
bylaws or similar documents, and a copy of the charter or certificate of 
incorporation.
    (2) If the developer exercises any control over the association, 
state whether any contracts have been executed between the association 
and the developer or any affiliate or principal of the developer. If 
there have been, briefly summarize the terms of the contracts, their 
purpose, their duration and the

[[Page 57]]

method and rate of payment required by the contract. State whether the 
association may modify or terminate the contracts after the owners 
assume control of the association.
    (3) State whether there is any agreement which would require the 
association to reimburse the developer, its affiliates or successors for 
any attorney's fees or costs arising from an action brought against them 
by the association or individual property owners regardless of the 
outcome of the action.
    (4) If the answer to paragraph (a)(2) or (a)(3) of this section is 
in the affirmative, disclosure may be required in Sec. 1710.116(a) at 
the discretion of the Secretary.
    (5) Submit a copy of any membership agreement or similar document.
    (b) Price range, type of sales and marketing. (1) State the price 
range of lots in the subdivision.
    (2) State the type of sales to be made, i.e., contract for deed, 
cash, deed with security instrument, etc.
    (3) Describe the methods of advertising and marketing to be used for 
the subdivision. The description should include, but need not be limited 
to, information on such matters as to:
    (i) Whether the developer will employ his own sales force or will 
contract with an outside group;
    (ii) Whether wide area telephone solicitation will be employed;
    (iii) Whether presentations will be made away from the immediate 
vicinity of the subdivision and/or if prospective purchasers will be 
furnished transportation from distant cities to the subdivision;
    (iv) Whether mass mailing techniques will be used and gifts offered 
to those who respond.
    (4) Submit a copy of any advertising or promotional material that 
is, or has been, used for the subdivision that:
    (i) Mentions or refers to recreational facilities which are not 
disclosed in Sec. 1710.114, or;
    (ii) Promotes the sale of lots based on the investment potential or 
expected profits, or;
    (iii) Contains information which is in conflict with that disclosed 
in this Statement of Record.

Amendments to reflect changes in advertising or promotional material 
need be filed only when there is a material change related to one of the 
above factors. Depending upon the content of the material submitted, the 
Secretary may require additional warnings in the Property Report 
portion.
    (c) Violations and litigation. (1) Submit a copy of the 
complaint(s), the answer(s) and the decision(s) for any litigation 
listed in Sec. 1710.116(c).
    (2) If it is indicated in Sec. 1710.116(c) that the developer or any 
of the parties involved in the subdivision are, or have been, the 
subject of any bankruptcy proceedings, furnish a copy of the schedules 
of liabilities and assets (or a recap of those schedules); the petition 
number; the date of the filing of the petition; names and addresses of 
the petitioners, trustee and counsel; the name and location of the court 
where the proceedings took place and the status or disposition of the 
petition.

Explain, briefly, the cause of the action.
    (3) Furnish a copy of any orders issued in connection with any 
violations listed in Sec. 1710.116(c).
    (d) Resale or exchange program. (1) If it is stated in 
Sec. 1710.116(d)(3) that there is an exchange program which provides 
sufficient lots to satisfy all requests for exchange, describe the 
method used to determine the number of lots required; state whether 
these lots have been reserved or set aside; whether additional lots will 
be provided if the lots available for exchange are exhausted and the 
source of any additional lots.
    (e) Unusual situations--(1) Foreign subdivisions. If the subdivision 
is located outside the several States, the District of Columbia, the 
Commonwealth of Puerto Rico or the territories or possession of the 
United States, the Statement of Record shall be submitted in the English 
language and all supporting documents, including copies of any laws 
which restrict the ownership of land by aliens, shall be submitted in 
their original language and shall be accompanied by a translation into 
English.



Sec. 1710.219  Affirmation.

    The following affirmation shall be executed by the senior executive 
officer or a duly authorized agent:


[[Page 58]]


    I hereby affirm that I am the Senior Executive Officer of the 
developer of the lots herein described or will be the Senior Executive 
Officer of the developer at the time lots are offered for sale or lease 
to the public, or that I am the agent authorized by the Senior Executive 
Officer of such developer to complete this statement (if agent, submit 
written authorization to act as agent); and,
    That the statements contained in this Statement of Record and any 
supplement hereto, together with any documents submitted herein, are 
full, true, complete, and correct; and,
    That the developer is bound to carry out the promises and 
obligations set forth in this Statement of Record and Property Report or 
I have clearly stated who is or will be responsible; and
    That the fees accompanying this submission are in the amount 
required by the rules and regulations of the Office of Interstate Land 
Sales Registration.

________________________________________________________________________
(Date)
________________________________________________________________________
(Signature)
________________________________________________________________________
(Corporate seal if applicable)
________________________________________________________________________
(Title)

    Warning: Section 1418 of the Housing and Urban Development Act of 
1968 (82 Stat. 598, 15 U.S.C. 1717) provides: ``Any person who willfully 
violates any of the provisions of this title or of the rules and 
regulations or any person who willfully, in a Statement of Record filed 
under, or in a Property Report issued pursuant to this title, makes any 
untrue statement of a material fact *  *  *, shall upon conviction be 
fined not more than $10,000.00 or imprisoned not more than 5 years, or 
both.''

[45 FR 40490, June 13, 1980]



Sec. 1710.310  Annual report of activity.

    (a) As an integral part of the Statement of Record, the developer 
shall file with the Secretary an Annual Report of Activity on any 
initial or consolidated registration not under suspension. For this 
purpose, only one Annual Report of Activity will be expected for 
subdivisions on which developers have filed consolidations. For 
registrations certified by a State as provided for in Sec. 1710.500, a 
developer need file only one Annual Report of Activity for any 
registration for which the OILSR number is the same (alphabetic 
designators indicate that the registration has been treated as a 
consolidation).
    (b) The report shall be submitted within 30 days of the annual 
anniversary of the effective date of the initial Statement of Record.
    (c) The report shall contain the following information:
    (1) Subdivision name and address.
    (2) Developer's name, address and telephone number.
    (3) Agent's name, address and telephone number.
    (4) Interstate Land Sales Registration number.
    (5) The date on which the initial filing first became effective.
    (6) The number of registered lots, parcels or units which are unsold 
as of the date on which the report is due.
    (7) One of the following:
    (i) A statement that the developer is still engaged in land sales 
activity at the subject subdivision and that there have been no changes 
in material fact since the last effective date was issued which would 
require an amendment to the Statement of Record; or
    (ii) A statement that the developer is still engaged in land sales 
activity at the subject subdivision, that material changes have occurred 
since the last effective date, and that corrected pages to the Property 
Report portion or Additional Information and Documentation portion of 
the Statement accompany the report; or
    (iii) A statement that the developer is no longer engaged in land 
sales activity at the subject subdivision, together with the reason the 
developer is no longer selling (e.g., all lots sold to the public or the 
remaining lots sold to another developer, along with the date of sale 
and the new developer's name, address and telephone number). A request 
may be made that the Statement of Record be voluntarily suspended. The 
request should be submitted in duplicate and will become effective upon 
the counter-signature of the Secretary (or an authorized Designee) with 
the duplicate being returned to the developer.
    (8) The report shall be dated and shall be signed by the senior 
executive officer of the developer on a signature line above his typed 
name and title. The senior executive officer's acknowledgement shall be 
attested to or certified by a notary public or similar

[[Page 59]]

public official authorized to attest or certify acknowledgements in the 
jurisdiction in which the report is executed.
    (d) If the report indicates that there are 101 or more registered 
lots, parcels or units remaining for sale, the report shall be 
accompanied by an amendment fee in the amount and form prescribed in 
Sec. 1710.35.
    (e) Failure to submit the report when due shall be grounds for an 
action to suspend the effective Statement of Record.

(Approved by the Office of Management and Budget under control number 
2502-0243)

[49 FR 31373, Aug. 6, 1984]



     Subpart C--Certification of Substantially Equivalent State Law

    Authority: Sec. 1419, Interstate Land Sales Full Disclosure Act, 82 
Stat. 590, 598; 15 U.S.C. 1718; sec. 7(d), Dept. of Housing and Urban 
Development Act, 42 U.S.C. 3535(d).

    Source: 45 FR 40491, June 13, 1980, unless otherwise noted.



Sec. 1710.500  General.

    (a) This subpart establishes procedures and criteria for certifying 
State land sale or lease disclosure programs and State land development 
standards programs. The purpose of State Certification is to lessen the 
administrative burden on the individual developer, arising where there 
are duplicative state and federal registration and disclosure 
requirements, without affecting the level of protection given to the 
individual purchaser or lessee. If the Secretary determines that a state 
has adopted and is effectively administering a program that gives 
purchasers and lessees the same level of protection given to them by the 
Federal Interstate Land Sales Registration Program, then the Secretary 
shall certify that state. Developers who accomplish an effective 
registration with a state in which the land is located after the 
Secretary has certified the state may satisfy the registration 
requirements of the Secretary by filing with the Secretary materials 
designated by agreement with certified states in lieu of the federal 
Statement of Record and Property Report.
    (b) A state that is certified by the Secretary shall be known as the 
situs certified state for all land located within its borders.
    (c) After a developer is effectively registered with the Secretary 
through a certified state, the Secretary has the same authority over 
that developer as the Secretary has over developers who file directly 
with the Secretary. This includes the authority to subpoena information 
and to examine, evaluate and suspend a developer's registration under 
sections 1407(d) and (e) of the Act and Sec. 1710.45(b)(1) and (b)(2) of 
these regulations.
    (d) The prohibitions against the use of the Property Report 
contained in Sec. 1710.29 apply to state disclosure materials and 
substantive development standards. In addition, for purposes of this 
paragraph, references made to the Secretary, OILSR and the Department of 
Housing and Urban Development in Sec. 1710.29 will include a reference 
to the equivalent state officer or agency.
    (e) The Purchaser's Revocation Rights, Sales Practices and Standards 
rules contained in part 1715 of these regulations apply to developers 
who register with the Secretary through certified States. All of the 
rules in part 1715 apply, excepting the disclaimer statement in 
Sec. 1715.50(a) which is modified to read as follows:

    Obtain the Property Report or its equivalent, required by Federal 
and State law and read it before signing anything. No Federal or State 
agency has judged the merits or value, if any, of this property.

    (f) Developers are obliged to pay filing fees as set forth in 
Sec. 1710.35 of these regulations.



Sec. 1710.503  Notice of certification.

    (a) If the Secretary determines that a state qualifies for 
certification under Sec. 1710.501(a) or Sec. 1710.501(b), the Secretary 
shall so notify the state in writing. The state will be effectively 
certified under the section and as of the date specified in the notice.
    (b) If the Secretary determines that a state does not meet the 
standards for certification, the Secretary shall so notify the state in 
writing. The notice will specify particular changes in state law, 
regulations or administration that are needed to obtain certification. 
The

[[Page 60]]

Secretary shall not be bound in advance to certify a state that makes 
the suggested changes if other deficiencies become apparent at a later 
time.
    (c) The Secretary's final determination to accept or reject a 
State's Application for Certification of Land Sales Program shall be 
published in the Federal Register.
    (d) A state's certification will remain in effect until it is 
voluntarily suspended by the state or withdrawn by the Secretary. A 
state can voluntarily suspend its certification by notifying the 
Secretary in writing. The suspension will take effect as of the date and 
time specified in the notice to the Secretary, or upon receipt by the 
Secretary if no date is specified. The Secretary may withdraw 
certification as provided in Sec. 1710.505.



Sec. 1710.504  Cooperation among certified states and between certified states and the Secretary.

    (a) By filing an Application for Certification of State Land Sales 
Program pursuant to Sec. 1710.502, a state agrees that, if it is 
certified by the Secretary, it will:
    (1) Accept for filing and allow to be distributed as the sole 
disclosure document, a disclosure document currently in effect in the 
situs certified state. Only those documents filed with the situs state 
after certification by the Secretary must automatically be accepted by 
other certified states;
    (2) Certify copies of all disclosure documents, amendments and 
consolidations filed with it by developers of land located within its 
borders for and as needed by developers required to submit certified 
copies to the Secretary and all other certified states. The 
certification shall indicate whether the documents are currently in 
effect. The certification should state as follows:

    The (indicate the State Department of Real Estate or other 
appropriate entity) has reviewed the attached materials and finds they 
are true copies of (1) the (indicate Property Report or other similar 
state accepted document or amendment to such document) for (indicate the 
name of the subdivision), made effective by the State of ---------------
- on ---------------- (give date) and still in effect; and (2) the 
supporting documentation upon which such (indicate the document or 
amendment) is based.
________________________________________________________________________
Signature

    (3) Assist and cooperate with the Secretary and other certified 
states by requiring that developers of land within its borders amend 
disclosure documents if any change occurs in any representation of 
material fact required to be stated in the disclosure documents, 
including a change resulting from the developer's compliance with the 
requirements of the law in another certified state. The state shall 
require developers to send certified copies of the amended documents to 
the Secretary and requesting certified states. All amendments to such 
materials, which reflect changes in material facts regarding the 
subdivision, shall be submitted to the situs certified state authorities 
within 15 days of the date on which the developer knows, or should have 
known, of such change. Certified copies of the disclosure documents 
shall be submitted by the developer to the Secretary and the other 
certified states within 15 days after it becomes effective under the 
situs certified state laws.
    (4) Continue to effectively operate its Land Sales Program as that 
Program is described in the Application for Certification and as it was 
certified by the Secretary.
    (5) Assist and cooperate with the Secretary by monitoring the sales 
practices of developers registered with it directly or through another 
certified state, and by reporting to the Secretary any violations of the 
Act, including but not limited to the required contract provisions, 
revocation rights and anti-fraud provisions of 15 U.S.C. 1703, or the 
regulations.
    (b) A state required to accept the disclosure documents of another 
situs certified state pursuant to paragraph (a)(1) of this section, may, 
in its discretion, require the developer to furnish it with copies 
certified pursuant to paragraph (a)(2) of this section.
    (c) No state shall be prevented from establishing substantive or 
disclosure requirements which exceed the federal standard provided that 
such requirements are not in conflict with the Act or these regulations. 
For example, a

[[Page 61]]

certified state may impose additional disclosure requirements on 
developers of land located within its borders but may not impose 
additional disclosure requirements on developers whose disclosure 
documents it is required to accept pursuant to paragraph (a)(1) of this 
section. However, a certified state may impose additional nondisclosure 
requirements on out of state developers even though the developer is 
registered in the certified state in which the land is located.
    (d) After a developer is effectively registered with a certified 
state through a situs certified state, either or both certified states 
may exercise full enforcement authorities and powers over that developer 
according to applicable law and regulations.
    (e) The Secretary shall cooperate with the certified states by 
offering a forum for nonbinding arbitration of disputes between two or 
more certified States arising out of the State Certification Program.



Sec. 1710.505  Withdrawal of State certification.

    (a) The Secretary shall periodically review the laws, regulations 
and administration thereof, of a certified state. If the Secretary finds 
that, taken as a whole, the laws, regulations or administration thereof, 
no longer meet the requirements of subpart C, then the Secretary may 
issue a notice to withdraw the certification of that state.
    (b) The notice of proceedings to withdraw a state's certification 
will be issued to the state by the Secretary pursuant to Sec. 1720.236. 
The Secretary may, after notice and after an opportunity for a hearing, 
pursuant to Sec. 1720.237, issue an order withdrawing certification.

In the event that a withdrawal order is issued, the order shall remain 
in effect until the state has amended its laws, regulations or the 
administration thereof or has otherwise complied with the requirements 
of the order. When the state has complied with the requirements of the 
order, the Secretary shall so declare and the withdrawal order shall 
cease to be effective.
    (c) Withdrawal orders issued pursuant to this subsection will be 
effective as of the date the order is received by the state. The 
withdrawal order shall be published in the Federal Register.
    (d) The rules of chapter IX of 24 CFR part 1720, subpart D will 
generally apply to hearings on withdrawal of a state's certification.



Sec. 1710.506  State/Federal filing requirements.

    (a)(1) If the Secretary has certified a state under Sec. 1710.501, 
the Secretary shall accept for filing disclosure materials or other 
acceptable documents which have been approved by the certified state 
within which the subdivision is located. Only those filings made by the 
developer with the state after the state was certified by the Secretary 
shall be automatically accepted by the Secretary.
    (2) Retroactive application of the effectiveness of state's 
certification to a specified date may be granted on a state-by-state 
basis, where the Secretary determines that retroactive application will 
not result in automatic federal registration of any state filing that 
has not met the requirements of the certified state laws.
    (b) For a developer to be registered with the Secretary, the 
developer shall file with the Secretary a state certified copy of the 
Property Report or its equivalent, and any other documentation as 
stipulated in the Secretary's Notice of Certification to the state.
    (c) The documents and materials filed under paragraph (b) of this 
section will be automatically effective as the Federal Statement of 
Record and Property Report after these materials and the proper filing 
fee have been received by the Secretary.
    (d) The Secretary has authority pursuant to Sec. 1710.45(b)(1) and 
(b)(2) to suspend individual filings which fail to meet the requirements 
of the certified state's law or regulations or the standards in the 
certification agreement whether or not the state agency has initiated a 
similar action.
    (e)(1) State accepted materials filed with the Secretary pursuant to 
this section must be amended to reflect any amendment to such materials 
made effective by the state. All amendments to such materials must be 
submitted to

[[Page 62]]

the Secretary within 15 days after becoming effective under the 
applicable state laws. Amendments are automatically effective upon their 
receipt by the Secretary and the provisions of Sec. 1710.45(b)(1) and 
(2) apply to amendments filed under this section.
    (2) Amendments shall include or be accompanied by:
    (i) A letter from the developer giving a narrative statement fully 
explaining the purpose and significance of the amendment and referring 
to that section and page of the material which is being amended, and;
    (ii) A signed state acceptance certification substantially the same 
as that required by Sec. 1710.504(a)(2).
    (f) If a certified state suspends the registration of a particular 
subdivision for any reason, the subdivision's federal registration with 
the Secretary shall be automatically suspended as a result of the state 
action. No action need be taken by the Secretary to effect the 
suspension.
    (g) A state is certified only with regard to land located within the 
state borders. The Secretary is not required to accept filings which 
have been accepted by a certified state if the land which is the subject 
of the filing is not located within that certified state. For example, 
if State A is certified by the Secretary and State B is not, the 
Secretary is not required to accept filings from State B simply because 
State A accepts filings from State B.



Sec. 1710.507  Effect of suspension or withdrawal of certification granted under Sec. 1710.501(a): Full disclosure requirement.

    (a) If a state certified under Sec. 1710.501(a) suspends its own 
certification or has its certification withdrawn under Sec. 1710.505, 
the Federal disclosure materials accepted and made effective by the 
Secretary, pursuant to Sec. 1710.506, prior to the suspension or 
withdrawal shall remain in effect unless otherwise suspended by the 
Secretary.
    (b) In the event that there is a change in a material fact with 
regard to a subdivision that remains registered under the provisions of 
paragraph (a), the developer shall file a new registration with the 
Secretary meeting the requirements of the then applicable Federal 
registration regulations. Modifications of the Federal format may be 
used as specified by the Secretary.



Sec. 1710.508  Effect of suspension of certification granted under Sec. 1710.501(b): Sufficient protection requirement.

    (a) If a state certified under Sec. 1710.501(b) suspends its own 
certification or has its certification withdrawn under Sec. 1710.505, 
the effectiveness of the Federal disclosure materials accepted and made 
effective by the Secretary, pursuant to Sec. 1710.506, prior to the 
suspension or withdrawal shall terminate ninety (90) days after the 
notice of withdrawal order is published in the Federal Register as 
provided in Sec. 1710.505(c).
    (b) At the end of the ninety day period, or during the ninety day 
period in the event that there is a change in material fact with regard 
to a subdivision that remains registered under the provisions of 
paragraph (a), the developer shall file a new registration with the 
Secretary meeting the requirements of the then applicable Federal 
registration regulations. Modifications of the Federal format may be 
used as specified by the Secretary.



Sec. 1710.552  Previously accepted state filings.

    (a) Materials filed with a state and accepted by the Secretary as a 
Statement of Record prior to January 1, 1981, pursuant to 24 CFR 
1710.52-59 (as published in the Federal Register on April 10, 1979) may 
continue in effect. However, developers must comply with the applicable 
amendments to the Federal Act and the regulations thereunder. In 
particular, see Secs. 1710.558 and 1710.559, which require that the 
Property Report and contracts or agreements contain notice of 
purchaser's revocation rights. In addition see Sec. 1715.15(f), which 
provides that it is unlawful to make any representations with regard to 
the developer's obligation to provide or complete roads, water, sewers, 
gas, electrical facilities or recreational amenities, unless the 
developer is obligated to do so in the contract.

[[Page 63]]

    (b) If any such filing becomes inactive or suspended under the laws 
of the state, the registration with the Secretary shall be ineffective 
from that time.
    (c) Such Statement of Record may be suspended pursuant to 
Sec. 1710.45.
    (d) The Secretary may refuse to accept any particular filing under 
this section when it is determined that acceptance is not in the public 
interest.
    (e) The Secretary may require such changes, additional information, 
documents or certification as the Secretary determines to be reasonably 
necessary or appropriate in the public interest.



Sec. 1710.556  Previously accepted state filings--amendments and consolidations.

    (a) Amendments--(1) General requirements. State accepted materials, 
filed with the Secretary pursuant to Sec. 1710.552 shall be amended to 
reflect any amendment to such materials made effective by the state or 
any change of a material fact regarding the subdivision. All amendments 
to such materials, which reflect changes in material facts regarding the 
subdivision, shall be submitted to the state authorities within 15 days 
of the date on which the developer knows, or should have known, of such 
change and to the Secretary within 15 days after it becomes effective 
under the applicable State laws. However, such amendment shall not be 
effective as a Federal registration until the Secretary has determined 
that the amendment meets all applicable requirements of these 
regulations.
    (2) Amendments shall include or be accompanied by:
    (i) A letter from the developer giving a narrative statement fully 
explaining the purpose and significance of the amendment and referring 
to that section and page of the Statement of Record which is being 
amended, and;
    (ii) All amended pages of the state accepted materials filed with 
the Secretary. These pages shall be retyped with their amendments. Each 
such page shall have its date of preparation in the lower right hand 
corner, and;
    (iii) A signed state acceptance certification, and;
    (iv) The appropriate fees as indicated in Sec. 1710.35.
    (b) Consolidations--(1) When consolidations allowed. If lots are to 
be registered pursuant to Sec. 1710.552 which are in the same common 
promotional plan with other lots already registered with the Secretary, 
then new consolidated state accepted materials including such lots may 
be filed with the Secretary as a Statement of Record following the 
format of the previously accepted filing.
    (2) Consolidated Statements of Record shall include or be 
accompanied by:
    (i) State accepted consolidation materials which are also acceptable 
to the Secretary as a Statement of Record (state property report 
inclusive). These state accepted consolidation materials shall cover all 
lots previously registered in the common promotional plan except those 
deleted pursuant to other provisions in these regulations. These 
materials shall also include information and items required for state 
accepted materials filed as an initial registration Statement of Record, 
except that, supporting documentation in materials previously made 
effective by the Secretary for other lots in the subject common 
promotional plan may be incorporated by reference into the new 
consolidation materials submitted as a Statement of Record. However, 
such documentation may be incorporated by reference only if it is 
applicable to the new consolidated lots as well as to the previously 
registered lots.
    (ii) A signed state acceptance certification.
    (iii) The appropriate fees as indicated in Sec. 1710.35.
    (c) Effective date--State filing. The effective dates of state 
materials filed as amendments and consolidated Statements of Record 
shall be determined in accordance with the provisions of Sec. 1710.21.

[45 FR 40491, June 13, 1980, as amended at 49 FR 31372, Aug. 6, 1984]



Sec. 1710.558  Previously accepted state filings--notice of revocation rights on property report cover page.

    (a)(1) The cover page on Property Reports for filings made with the 
Secretary pursuant to Sec. 1710.552 shall be prepared in accordance with 
Sec. 1710.105

[[Page 64]]

and shall include the following paragraphs:

    ``If you received this Report prior to signing a contract or 
agreement, you may cancel your contract or agreement by giving notice to 
the seller anytime before midnight of the seventh day following the 
signing of the contract or agreement.
    ``If you did not receive this Report before you signed a contract or 
agreement, you may cancel the contract or agreement anytime within two 
years from the date of signing.''

    (2) If the purchaser is entitled to a longer revocation period by 
operation of State law, that period becomes the Federal revocation 
period and the Cover Page must reflect the longer period, rather than 
the seven days.
    (b)(1) If a deed is not delivered within 180 days of the signing of 
the contract or agreement of sale or unless certain provisions are 
included in the contract or agreement, the purchaser is entitled to 
cancel the contract within two years from the date of signing the 
contract or agreement.
    (2) The deed must be a warranty deed, or where such a deed is not 
commonly used, a similar deed legally acceptable in the jurisdiction 
where the lot is located. The deed must be free and clear of liens and 
encumbrances.
    (3) The contract provisions are:
    (i) A legally sufficient and recordable lot description, and;
    (ii) A provision that the seller will give the purchaser written 
notification of purchaser's default or breach of contract and the 
opportunity to remedy the default or breach within 20 days of the 
notice; and
    (iii) A provision that, if the purchaser loses rights and interest 
in the lot because of the purchaser's default or breach of contract 
after 15 percent of the purchase price, exclusive of interest, has been 
paid, the seller shall refund to the purchaser any amount which remains 
from the payments made after subtracting 15 percent of the purchase 
price, exclusive of interest, or the amount of the seller's actual 
damages, whichever is the greater.
    (4) If a deed is not delivered within 180 days of the signing of the 
contract or if the necessary provisions are not included in the 
contract, the following statement shall be used in place of any other 
rescision language:

    ``Under Federal law you may cancel your contract or agreement of 
sale any time within two years from the date of signing.''



Sec. 1710.559  Previously accepted state filings--notice of revocation rights in contracts and agreements.

    (a)(1) All contracts or agreements, including promissory notes used 
in sale of lots for filings made with the Secretary pursuant to 
Sec. 1710.552, must contain the following language in boldface type 
(which must be distinguished from the type used for the rest of the 
contract) on the face or signature page above all signatures:

    You have the option to cancel your contract or agreement of sale by 
notice to the seller until midnight of the seventh day following the 
signing of the contract or agreement.
    If you did not receive a Property Report prepared pursuant to the 
rules and regulations of the Office of Interstate Land Sales 
Registration, U.S. Department of Housing and Urban Development, in 
advance of your signing the contract or agreement, this contract or 
agreement may be revoked at your option for two years from the date of 
signing.

    (2) If the purchaser is entitled to a longer revocation period by 
operation of State law or the Act, that period becomes the Federal 
revocation period and the contract or agreement must reflect the longer 
period, rather than the seven days. The language shall be consistent 
with that shown on the Cover Page (see Sec. 1710.558).
    (b) The above revocation provisions may not be limited or qualified 
in the contract or other document by requiring a specific type of notice 
or by requiring that notice be given at a specified place.



PART 1715--PURCHASERS' REVOCATION RIGHTS, SALES PRACTICES AND STANDARDS--Table of Contents




                Subpart A--Purchasers' Revocation Rights

Sec.
1715.1  General.
1715.2  Revocation regardless of registration.
1715.4  Contract requirements and revocation.
1715.5  Reimbursement.

[[Page 65]]

                Subpart B--Sales Practices and Standards

1715.10  General.
1715.15  Unlawful sales practices--statutory provisions.
1715.20  Unlawful sales practices--regulatory provisions.
1715.25  Misleading sales practices.
1715.27  Fair housing.
1715.30  Persons to whom subpart B is inapplicable.

                   Subpart C--Advertising Disclaimers

1715.50  Advertising disclaimers; subdivisions registered and effective 
          with HUD.

    Authority: 15 U.S.C. 1718; 42 U.S.C. 3535(d).

    Source: 45 FR 40496, June 13, 1980, unless otherwise noted.



                Subpart A--Purchasers' Revocation Rights



Sec. 1715.1  General.

    The purpose of this subpart A is to elaborate on the revocation 
rights in 15 U.S.C. 1703, by enumerating certain conditions under which 
purchasers may exercise revocation rights. Generally, whenever 
revocation rights are available, they apply to promissory notes, as well 
as traditional agreements.

[61 FR 13597, Mar. 27, 1996]



Sec. 1715.2  Revocation regardless of registration.

    All purchasers have the option to revoke a contract or lease with 
regard to a lot not exempt under Secs. 1710.5 through 1710.11 and 
1710.14 until midnight of the seventh day after the day that the 
purchaser signs a contract or lease. If a purchaser is entitled to a 
longer revocation period under State law, that period is deemed the 
Federal revocation period rather than the 7 days, and all contracts and 
agreements (including promissory notes) shall so state.

[61 FR 13597, Mar. 27, 1996]



Sec. 1715.4  Contract requirements and revocation.

    (a) In accordance with 15 U.S.C. 1703(d)(3), the refund to the 
purchaser is calculated by subtracting from the amount described in 15 
U.S.C. 1703(d)(3)(B), the greater of:
    (1) Fifteen percent of the purchase or lease price of the lot 
(excluding interest owed) at the time of the default or breach of 
contract or agreement; or
    (2) The amount of damages incurred by the seller or lessor due to 
the default or breach of contract.
    (b) For the purposes of this section:
    Damages incurred by the seller or lessor means actual damages 
resulting from the default or breach, as determined by the law of the 
jurisdiction governing the contract. However, no damages may be 
specified in the contract or agreement, except a liquidated damages 
clause not exceeding 15 percent of the purchase price of the lot, 
excluding any interest owed.
    Purchase price means the cash sales price of the lot shown on the 
contract.
    (c) The contractual requirements of 15 U.S.C. 1703(d) do not apply 
to the sale of a lot for which, within 180 days after the signing of the 
sales contract, the purchaser receives a warranty deed or, where 
warranty deeds are not commonly used, its equivalent under State law.

[61 FR 13598, Mar. 27, 1996]



Sec. 1715.5  Reimbursement.

    If a purchaser exercises rights under 15 U.S.C. 1703(b), (c) or (d), 
but cannot reconvey the lot in substantially similar condition, the 
developer may subtract from the amount paid by the purchaser, and 
otherwise due to the purchaser under 15 U.S.C. 1703, any diminished 
value in the lot caused by the acts of the purchaser.

[61 FR 13598, Mar. 27, 1996]



                Subpart B--Sales Practices and Standards



Sec. 1715.10  General.

    Sales practices means any conduct or advertising by a developer or 
its agents to induce a person to buy or lease a lot. This subpart 
describes certain unlawful sales practices and provides standards to 
illustrate what other sales practices are considered misleading in light 
of certain circumstances in which they are made and within the context 
of the overall offer and sale or lease.

[[Page 66]]



Sec. 1715.15  Unlawful sales practices--statutory provisions.

    The statutory prohibitions against fraudulent or misleading sales 
practices are set forth at 15 U.S.C. 1703(a). With respect to the 
prohibitions against representing that certain facilities will be 
provided or completed unless there is a contractual obligation to do so 
by the developer:
    (a) The contractual covenant to provide or complete the services or 
amenities may be conditioned only upon grounds that are legally 
sufficient to establish impossibility of performance in the jurisdiction 
where the services or amenities are being provided or completed;
    (b) Contingencies such as acts of God, strikes, or material 
shortages are recognized as permissible to defer completion of services 
or amenities; and
    (c) In creating these contractual obligations developers have the 
option of incorporating by reference the Property Report in effect at 
the time of the sale or lease. If a developer chooses to incorporate the 
Property Report by reference, the effective date of the Property Report 
being incorporated by reference must be specified in the contract of 
sale or lease.

[61 FR 13598, Mar. 27, 1996]



Sec. 1715.20  Unlawful sales practices--regulatory provisions.

    In selling, leasing or offering to sell or lease any lot in a 
subdivision it is an unlawful sales practice for any developer or agent, 
directly or indirectly, to:
    (a) Give the Property Report to a purchaser along with other 
materials when done in such a manner so as to conceal the Property 
Report from the purchaser.
    (b) Give a contract to a purchaser or encourage him to sign anything 
before delivery of the Property Report.
    (c) Refer to the Property Report or Offering Statement as anything 
other than a Property Report or Offering Statement.
    (d) Use any misleading practice, device or representation which 
would deny a purchaser any cancellation or refund rights or privileges 
granted the purchaser by the terms of a contract or any other document 
used by the developer as a sales inducement.
    (e) Refuse to deliver a Property Report to any person who exhibits 
an interest in buying or leasing a lot in the subdivision and requests a 
copy of the Property Report.
    (f) Use a Property Report, note, contract, deed or other document 
prepared in a language other than that in which the sales campaign is 
conducted, unless an accurate translation is attached to the document.
    (g) Deliberately fail to maintain a sufficient supply of restrictive 
covenants and financial statements or to deliver a copy to a purchaser 
upon request as required by Secs. 1710.109(f), 1710.112(d), 1710.209(g) 
and 1710.212(i).
    (h) Use, as a sales inducement, any representation that any lot has 
good investment potential or will increase in value unless it can be 
established, in writing, that:
    (1) Comparable lots or parcels in the subdivision have, in fact, 
been resold by their owners on the open market at a profit, or;
    (2) There is a factual basis for the represented future increase in 
value and the factual basis is certain, and;
    (3) The sales price of the offered lot does not already reflect the 
anticipated increase in value due to any promised facilities or 
amenities. The burden of establishing the relevancy of any comparable 
sales and the certainty of the factual basis of the increase in value 
shall rest upon the developer.
    (i) Represent a lot as a homesite or building lot unless:
    (1) Potable water is available at a reasonable cost;
    (2) The lot is suitable for a septic tank operation or there is 
reasonable assurance that the lot can be served by a central sewage 
system;
    (3) The lot is legally accessible; and
    (4) The lot is free from periodic flooding.



Sec. 1715.25  Misleading sales practices.

    Generally, promotional statements or material will be judged on the 
basis of the affirmative representations contained therein and the 
reasonable inferences to be drawn therefrom, unless the contrary is 
affirmatively stated or appears in promotional material, or

[[Page 67]]

unless adequate safeguards have been provided by the seller to 
reasonably guarantee the occurrence of the thing inferred. For example, 
when a lot is represented as being sold by a warranty deed, the 
inference is that the seller can and will convey fee simple title free 
and clear of all liens, encumbrances, and defects except those which are 
disclosed in writing to the prospective purchaser prior to conveyance. 
The following advertising and promotional practices, while not all 
inclusive, are considered misleading, and are used to evaluate a 
developer's or agent's representations in determining possible 
violations of the Act or regulations. (In this section ``represent'' 
carries its common meaning.)
    (a) Proposed improvements. References to proposed improvements of 
any land unless it is clearly indicated that (1) the improvements are 
only proposed or (2) what the completion date is for the proposed 
improvement.
    (b) Off-premises representations. Representing scenes or proposed 
improvements other than those in the subdivision unless
    (1) It is clearly stated that the scenes or improvements are not 
related to the subdivision offered; or
    (2) In the case of drawings that the scenes or improvements are 
artists' renderings;
    (3) If the areas or improvements shown are available to purchasers, 
what the distance in road miles is to the scenes or improvements 
represented.
    (c) Land use representations. Representing uses to which the offered 
land can be put unless the land can be put to such use without 
unreasonable cost to the purchaser and unless no fact or circumstance 
exists which would prohibit the immediate use of the land for its 
represented use.
    (d) Use of ``road'' and ``street''. Using the words ``road'' or 
``street'' unless the type of road surface is disclosed. (All roads and 
streets shown on subdivision maps are presumed to be of an all-weather 
graded gravel quality or higher and are presumed to be traversable by 
conventional automobile under all normal weather conditions unless 
otherwise shown on the map.)
    (e) Road access and use. Representing the existence of a road 
easement or right-of-way unless the easement or right-of-way is 
dedicated to the public, to property owners or to the appropriate 
property owners association.
    (f) Waterfront property. References to waterfront property, unless 
the property being offered actually fronts on a body of water. 
Representations which refer to ``canal'' or ``canals'' must state the 
specific use to which such canal or canals can be put.
    (g) Maps and distances. (1) The use of maps to show proximity to 
other communities, unless the maps are drawn to scale and scale 
included, or the specific road mileage appears in easily readable print.
    (2) The use of the terms such as ``minutes away'', ``short 
distance'', ``only miles'', or ``near'' or similar terms to indicate 
distance unless the actual distance in road miles is used in conjunction 
with such terms. Road miles will be measured from the approximate 
geographical center of the subdivided lands to the approximate downtown 
or geographical center of the community.
    (h) Lot size. Representation of the size of a lot offered unless the 
lot size represented is exclusive of all easements to which the lot may 
be subject, except for those for providing utilities to the lot.
    (i) ``Free'' lots. Representing lots as ``free'' if the prospective 
purchaser is required to give any consideration whatsoever, offering 
lots for ``closing costs only'' when the closing costs are substantially 
more than customary, or when an additional lot must be purchased at a 
higher price.
    (j) Pre-development prices. References to pre-development sales at a 
lower price because the land has not yet been developed unless there are 
plans for development, and reasonable assurance is available that the 
plans will be completed.
    (k) False reports of lot sales. Repeatedly announcing that lots are 
being sold or to make repetitive announcements of the same lot being 
sold when in fact this is not the case.
    (l) Guaranteed refund. Use of the word ``guarantee'' or phrase 
``guaranteed refund'' or similar language implying a

[[Page 68]]

money-back guarantee unless the refund is unconditional.
    (m) Discount certificates. The use of discount certificates when in 
fact there is no actual price reduction or when a discount certificate 
is regularly used.
    (n) Lot exchanges. Representations regarding property exchange 
privileges unless any applicable conditions are clearly stated.
    (o) Resale program. Making any representation that implies that the 
developer or agent will resell or repurchase the property being offered 
at some future time unless the developer or agent has an ongoing program 
for doing so.
    (p) Symbols for conditions. The use of asterisks or any other 
reference symbol or oral parenthetical expression as a means of 
contradicting or substantially changing any previously made statement or 
as a means of obscuring material facts.
    (q) Proposed public facilities. References to a proposed public 
facility unless money has been budgeted for construction of the facility 
and is available to the public authority having the responsibility of 
construction, or unless disclosure of the existing facts concerning the 
public facility is made.
    (r) Non-profit or institutional name use. The use of names or trade 
styles which imply that the developer is a nonprofit research 
organization, public bureau, group, etc., when such is not the case.



Sec. 1715.27  Fair housing.

    Title VIII of the Civil Rights Act of 1968, 42 U.S.C. 3601, et seq., 
and its implementing regulations and guidelines apply to land sales 
transactions to the extent warranted by the facts of the transaction.

[61 FR 13598, Mar. 27, 1996]



Sec. 1715.30  Persons to whom subpart B is inapplicable.

    Newspaper or periodical publishers, job printers, broadcasters, or 
telecasters, or any of the employees thereof, are not subject to this 
subpart unless the publishers, printers, broadcasters, or telecasters--
    (a) Have actual knowledge of the falsity of the advertisement or
    (b) Have any interest in the subdivision advertised or
    (c) Also serve directly or indirectly as the advertising agent or 
agency for the developer.



                   Subpart C--Advertising Disclaimers



Sec. 1715.50  Advertising disclaimers; subdivisions registered and effective with HUD.

    (a) The following disclaimer statement shall be displayed below the 
text of all printed material and literature used in connection with the 
sale or lease of lots in a subdivision for which an effective Statement 
or Record is on file with the Secretary. If the material or literature 
consists of more than one page, it shall appear at the bottom of the 
front page. The disclaimer statement shall be set in type of at least 
ten point font.

    Obtain the Property Report required by Federal law and read it 
before signing anything. No Federal agency has judged the merits or 
value, if any, of this property.

    (b) If the advertising is of a classified type; is not more than 
five inches long and not more than one column in print wide, the 
disclaimer statement may be set in type of at least six point font.
    (c) This disclaimer statement need not appear on billboards, on 
normal size matchbook folders or business cards which are used in 
advertising nor in advertising of a classified type which is less than 
one column in print wide and is less than five inches long.
    (d) A developer who is required by any state, or states, to display 
an advertising disclaimer in the same location, or one of equal 
prominence, as that of the federal disclaimer, may combine the wording 
of the disclaimers. All of the wording of the federal disclaimer must be 
included in the resulting combined disclaimer.



PART 1720--FORMAL PROCEDURES AND RULES OF PRACTICE--Table of Contents




                     Subpart A--Rules and Rulemaking

Sec.
1720.1  Scope of rules in this subpart.
1720.5  Initiation of rulemaking.
1720.10  Investigations and conferences.

[[Page 69]]

1720.15  Notice.
1720.20  Promulgation of rules and regulations.
1720.25  Effective date of rules and regulations.

                      Subpart B--Filing Assistance

1720.30  Scope of this subpart.
1720.35  Prefiling assistance.
1720.40  Processing of filings.

Subpart C [Reserved]

                   Subpart D--Adjudicatory Proceedings

                           General Provisions

1720.105  Scope of rules in this subpart.
1720.110  Applicability of sections of this subpart.
1720.115  Department representative.
1720.120  Qualification for appearances.
1720.125  Public nature and timing of hearings.
1720.130  Restrictions on appearances as to former officers and 
          employees.
1720.135  Standards of practice.
1720.140  Administrative law judge, powers and duties.
1720.145  Disqualification of administrative law judge.
1720.150  Failure to comply with administrative law judge's directions.
1720.155  Ex parte communications.
1720.160  Form and filing requirements.
1720.165  Time computation.
1720.170  Service.
1720.175  Intervention by interested persons.
1720.180  Settlements.

                                Pleadings

1720.205  Suspension notice under Sec. 1710.45(a) of this chapter.
1720.210  Hearings--suspension notice pursuant to Sec. 1710.45(a) of 
          this chapter.
1720.215  Notice of proceedings pursuant to Sec. 1710.45(b)(1) of this 
          chapter.
1720.220  Hearings--notice of proceedings pursuant to Sec. 1710.45(b)(1) 
          of this chapter.
1720.225  Suspension order under Sec. 1710.45(b)(2) of this chapter.
1720.230  Suspension order under Sec. 1710.45(b)(3) of this chapter.
1720.235  Hearings--suspension orders issued pursuant to 
          Secs. 1710.45(b)(2) and 1710.45(b)(3) of this chapter.
1720.236  Notice of proceedings to withdraw a State's certification 
          pursuant to Sec. 1710.505 of this chapter.
1720.237  Hearings--notice of proceedings pursuant to Sec. 1710.505 of 
          this chapter.
1720.238  Notices of proceedings to terminate exemptions pursuant to 
          Secs. 1710.14, 1710.15 and 1710.16 of this chapter.
1720.239  Hearings--notice of proceedings pursuant to Secs. 1710.14, 
          1710.15 and 1710.16 of this chapter.
1720.240  Time for filing answer.
1720.245  Content of answer.
1720.250  Presumption of hearing request.
1720.255  Amendments and supplemental pleadings.
1720.260  Prehearing conferences.
1720.265  Reporting--prehearing conferences.

                                 Motions

1720.305  Motions--filing requirements.
1720.310  Answers to motions.
1720.315  Motions for more definite statement.
1720.320  Motions for extension of time.
1720.325  Motions for dismissal.
1720.330  Motions to limit or quash.
1720.335  Consolidation.

                         Discovery and Evidence

1720.405  Depositions and discovery.
1720.410  Subpoenas ad testificandum.
1720.415  Subpoenas duces tecum.
1720.420  Rulings on applications for compulsory process; appeals.
1720.425  Presentation and admission of evidence.
1720.430  Production of witnesses' statements.
1720.435  Official notice.

                                Hearings

1720.505  Interlocutory review of administrative law judge's decision.
1720.510  Reporting and transcription.
1720.515  Corrections.
1720.520  Proposed findings, conclusions, and order.
1720.525  Decision of administrative law judge.
1720.530  Decision of administrative law judge--content.
1720.535  Reopening of proceeding; termination of jurisdiction.

                                 Appeals

1720.605  Appeal from decision of administrative law judge.
1720.610  Answering brief.
1720.615  Reply brief.
1720.620  Length and form of briefs.
1720.625  Oral argument.
1720.630  Decision on appeal or review.
1720.635  Appeals officer.

    Authority: 15 U.S.C. 1718; 42 U.S.C. 3535(d).

    Source: 43 FR 29496, July 7, 1978, unless otherwise noted.



                     Subpart A--Rules and Rulemaking



Sec. 1720.1  Scope of rules in this subpart.

    The rules in this subpart apply to and govern procedures for the 
promulgation of rules and regulations under the Act. The rules in this 
subpart do not

[[Page 70]]

apply to interpretative rules, general statements of policy, rules of 
organization procedure or practice or in any situation in which the 
Secretary for good cause finds (and incorporates the findings and brief 
statement of the reasons therefor in the rules issued) that notice and 
public procedure thereon are impracticable, unnecessary or contrary to 
the public interest.



Sec. 1720.5  Initiation of rulemaking.

    (a) The issuance, amendment or repeal of any rule or regulation may 
be proposed upon the initiative of the Secretary or upon the petition of 
any interested person showing reasonable grounds therefor.
    (b) Petitions for rulemaking by interested persons filed under this 
section:
    (1) Shall be identified as a petition for rulemaking under this 
subpart;
    (2) Shall explain the interest of the petitioner in the action 
requested;
    (3) Shall set forth the text or substance of the rule or amemdment 
proposed or specify the rule that the petitioner seeks to have repealed, 
as the case may be;
    (4) Shall contain any information and arguments available to the 
petitioner to support the action sought; and
    (5) Shall be filed with the Rules Docket Clerk, Office of General 
Counsel, Department of Housing and Urban Development, Room 5218, 451 
Seventh Street SW., Washington, DC 20410.
    (c) The Secretary shall respond to a petition submitted under this 
section within 180 days of receipt thereof, except that this time limit 
may be exceeded for good cause found and communicated to the petitioner. 
The Secretary's normal response shall be to grant or deny the petition 
but alternatively, the Secretary may schedule a public hearing or other 
appropriate proceeding prior to the granting or denial of a petition. If 
the Secretary grants the petition, the Secretary shall publish a 
proposed rule in accordance with the petition and a copy of the proposed 
rule shall be furnished to the petitioner. If the Secretary denies the 
petition, the Secretary shall notify the petitioner within 7 days after 
such denial.



Sec. 1720.10  Investigations and conferences.

    (a) In connection with a rulemaking proceeding, the Secretary may 
conduct such investigations, make such studies, and hold such 
conferences as are necessary. Investigations in connection with a 
rulemaking may be conducted in accordance with the general investigatory 
procedures under part 3800 of this chapter.
    (b) At any such conferences, interested persons may appear to 
express views and suggest amendments relative to proposed rules.

[61 FR 10442, Mar. 13, 1996]



Sec. 1720.15  Notice.

    General notice of proposed rulemaking shall be published in the 
Federal Register and, to the extent practicable, otherwise made 
available to interested persons. Such notice shall state the time, 
place, and nature of public hearings, if any; the authority under which 
the rule or regulation is proposed; either the terms or substance of the 
proposed rule or regulation or a description of the subjects and issues 
involved; and the manner in which interested persons shall be afforded 
the opportunity to participate in the rulemaking. If the rulemaking was 
instituted pursuant to petition, a copy of the notice shall be served on 
the petitioner.



Sec. 1720.20  Promulgation of rules and regulations.

    The Secretary, after consideration of all relevant matters of fact, 
law, policy, and discretion, including all relevant matters presented by 
interested persons in the rulemaking proceedings, shall adopt and 
publish in the Federal Register an appropriate rule or regulation 
together with a concise general statement of its basis and purpose and 
any necessary findings; or the Secretary shall give other appropriate 
public notice of disposition of the rulemaking proceeding.



Sec. 1720.25  Effective date of rules and regulations.

    The effective date of any rule or regulation or of an amendment, 
suspension, or repeal of any rule or regulation

[[Page 71]]

shall be specified in a notice published in the Federal Register. Such 
date shall not be less than 30 days after the date of such publication 
unless the Secretary specifies an earlier effective date for good cause 
found and published with the rule or regulation.



                      Subpart B--Filing Assistance



Sec. 1720.30  Scope of this subpart.

    The rules in this subpart apply to and govern procedures under which 
developers may obtain prefiling assistance and be notified of and 
permitted to correct deficiencies in the Statement of Record.



Sec. 1720.35  Prefiling assistance.

    Persons intending to file with the Office of Interstate Land Sales 
Registration may receive advice of a general nature as to the 
preparation of the filing including information as to proper format to 
be used and the scope of the items to be included in the format. 
Inquiries and requests for informal discussions with staff members 
should be directed to the Administrator, Office of Interstate Land Sales 
Registration, Department of Housing and Urban Development, 451 Seventh 
Street SW., Washington, DC 20410.



Sec. 1720.40  Processing of filings.

    (a) Statements of Record and accompanying filing fees will be 
received on behalf of the Secretary by the Administrator, Office of 
Interstate Land Sales Registration, for determination of:
    (1) Completeness of the statement,
    (2) Adequacy of the filing fee and
    (3) Adequacy of disclosure.

Where it appears that all three criteria are satisfied and it is 
otherwise practicable, acceleration of the effectiveness of the 
Statement of Record will normally be granted.
    (b) Filings intended as Statements of Record but which do not comply 
in form with Secs. 1710.105 and 1710.120 of this chapter, whichever is 
applicable, and Statements of Record accompanied by inadequate filing 
fees will not be effective to accomplish any purpose under the Act. At 
the discretion of the Administrator, such filings and any moneys 
accompanying them may be immediately returned to the sender or after 
notification may be held pending the sender's appropriate response.
    (c) Persons filing incomplete or inaccurate Statements of Record 
will be notified of the deficiencies therein by the Suspension Notice 
procedure described in Sec. 1710.45(a) of this chapter.

Subpart C [Reserved]



                   Subpart D--Adjudicatory Proceedings

                           General Provisions



Sec. 1720.105  Scope of rules in this subpart.

    The rules in this subpart are applicable to adjudicative proceedings 
which involve a hearing or opportunity for a hearing under the 
Interstate Land Sales Full Disclosure Act.



Sec. 1720.110  Applicability of sections of this subpart.

    Succeeding sections of this subpart shall apply to all adjudicatory 
hearings conducted by OILSR unless specifically limited in applicability 
by a particular section.



Sec. 1720.115  Department representative.

    In each case heard before an administrative law judge pursuant to 
this part, the Department shall be represented by a Department hearing 
attorney. The General Counsel shall designate one or more attorneys to 
act as Department hearing attorneys.



Sec. 1720.120  Qualification for appearances.

    (a) Members of the bar of a Federal Court or of the highest court of 
any state or of the United States are eligible to practice before the 
Secretary. No register of attorneys will be maintained.
    (b) Any individual or member of a partnership involved in any 
proceeding or investigation may appear on personal behalf or that of the 
partnership upon adequate identification. A corporation or association 
may be represented by a bona fide officer thereof upon a showing of 
adequate authorization.

[[Page 72]]

    (c) A person shall not be represented except as stated in paragraphs 
(a) and (b) of this section unless otherwise permitted.



Sec. 1720.125  Public nature and timing of hearings.

    (a) All hearings in adjudicative proceedings shall be public.
    (b) Hearings shall proceed with all reasonable speed and insofar as 
practicable, shall be held at one place and shall continue without 
recess or suspension until concluded. The administrative law judge shall 
have the authority to order brief intervals of the sort normally 
involved in judicial proceedings and, in unusual and exceptional 
circumstances for good cause stated on the record, shall have the 
authority to order hearings at more than one place and to order recesses 
to permit further gathering of evidence or settlement discussions.



Sec. 1720.130  Restrictions on appearances as to former officers and employees.

    (a) Except as specifically authorized by the Secretary, no former 
officer or employee of the Department of Housing and Urban Development 
shall appear as attorney or counsel or otherwise participate through any 
form of professional consultation or assistance in any proceeding or 
investigation, formal or informal, which was pending in any manner in 
the Office of Interstate Land Sales Registration while such former 
officer or employee served with the Department of Housing and Urban 
Development.
    (b) In cases to which paragraph (a) of this section is applicable, a 
former officer or employee of the Department of Housing and Urban 
Development may request authorization to appear or participate in a 
proceeding or investigation by filing with the Secretary a written 
application disclosing the following relevant information:
    (1) The nature and extent of the former officer's or employee's 
participation in, knowledge of, and connection with the proceeding or 
investigation during service with the Department of Housing and Urban 
Development;
    (2) Whether the files of the proceeding or investigation came to the 
former officer or employee's attention;
    (3) Whether the former officer or employee was employed in the same 
office, division, or administrative unit in which the proceeding or 
investigation is or has been pending;
    (4) Whether the former officer or employee worked directly or in 
close association with the Office of Interstate Land Sales Registration 
personnel assigned to the proceeding or investigation;
    (5) Whether during service with the Department of Housing and Urban 
Development the former officer or employee was engaged in any matter 
concerning the individual, company or industry in the proceeding or 
investigation.
    (c) The requested authorization will not be given in any case:
    (1) Where it appears that the former officer or employee during 
service with the Department of Housing and Urban Development 
participated personally and substantially in the proceeding or 
investigation, or
    (2) Where the application is filed within one (1) year after 
termination of the former officer's or employee's service with the 
Department of Housing and Urban Development and it appears that within a 
period of one (1) year prior to the termination of service the 
proceeding or investigation was within the official responsibility of 
the former officer or employee.

In other cases, authorization will be given where the Secretary is 
satisfied that the appearance or participation will not involve any 
actual conflict of interest or impropriety thereof.
    (d) In any case in which a former officer or employee of the 
Department of Housing and Urban Development is prohibited under this 
section from appearing or participating in a proceeding or 
investigation, any partner or legal or business associate of such former 
officer or employee shall likewise be so prohibited unless:
    (1) Such partner or legal or business associate files with the 
Secretary an affidavit that in connection with the matter the services 
of the disqualified former officer or employee will not be utilized in 
any respect and the matter

[[Page 73]]

will not be discussed with the former officer or employee in any manner, 
and that the disqualified former officer or employee shall not share, 
directly or indirectly, in any fees or retainers received for services 
rendered in connection with such proceeding or investigation;
    (2) The disqualified former officer or employee files an affidavit 
agreeing not to participate in the matter in any manner, and not to 
discuss it with any person involved in the matter; and
    (3) Upon the basis of such affidavits, the Secretary determines that 
the appearance or participation by the partner or associate would not 
involve any actual conflict of interest or impropriety thereof.



Sec. 1720.135  Standards of practice.

    (a) Attorneys shall conform to the standards of professional and 
ethical conduct required by practitioners in the courts of the United 
States and by the bars of which the attorneys are members.
    (b) The privilege of appearing or practicing may be denied, 
temporarily or permanently, to any person who is found after notice and 
opportunity for hearing which at the person's request or in the 
discretion of the Secretary may be private, and for presentation of oral 
argument in the matter:
    (1) Not to possess the requisite qualifications to represent others, 
or
    (2) To be lacking in character or integrity, or
    (3) To have engaged in unethical or improper professional conduct.
    (c) Contemptuous conduct at any hearing shall be grounds for summary 
exclusion from said hearing for the duration of the hearing.



Sec. 1720.140  Administrative law judge, powers and duties.

    (a) Hearings in adjudicative proceedings shall be presided over by a 
duly qualified administrative law judge who shall be designated by the 
Secretary in a notice to the parties in the proceeding.
    (b) Administrative law judges shall have the duty to conduct fair 
and impartial hearings, to take all necessary action to avoid delay in 
the disposition of proceedings and to maintain order. They shall have 
all powers necessary to those ends including all powers granted under 5 
U.S.C. 556(c), and also power including but not limited to the 
following:
    (1) To administer oaths and affirmations.
    (2) To issue subpoenas and orders requiring access.
    (3) To take or to cause depositions to be taken.
    (4) To rule upon offers of proof and receive evidence.
    (5) To regulate the course of the hearings and the conduct of the 
parties and their counsel.
    (6) To hold conferences for simplification and clarification of the 
issues or any other purpose.
    (7) To consider and rule upon as justice may require, all procedural 
and other motions appropriate in an adjudicative proceeding, including 
motions to open defaults.
    (8) To make and file decisions.
    (9) To certify question to a Departmental appeals officer.
    (10) To take any action authorized by the rules in this part or 
other appropriate action.



Sec. 1720.145  Disqualification of administrative law judge.

    (a) When an administrative law judge feels disqualified from 
presiding in a particular proceeding, the administrative law judge shall 
withdraw therefrom by notice on the record and shall notify the 
Secretary of such withdrawal.
    (b) Whenever any party believes that the administrative law judge 
should be disqualified from presiding, or continuing to preside in a 
particular proceeding, such party may file with the administrative law 
judge a motion that the administrative law judge be disqualified and 
removed. Such motion shall be supported by affidavits setting forth the 
alleged grounds for disqualification. If the administrative law judge 
does not agree to disqualification, the hearing shall proceed, and the 
question of fair hearing and due process may be raised on appeal.

[[Page 74]]



Sec. 1720.150  Failure to comply with administrative law judge's directions.

    Any party who refuses or fails to comply with a lawfully issued 
order or direction of an administrative law judge may be considered to 
be in contempt of the Secretary. The circumstances of any such neglect, 
refusal or failure, together with a recommendation for appropriate 
action, shall be promptly certified by the administrative law judge to 
the Secretary who may make such orders in regard thereto as the 
circumstances may warrant.



Sec. 1720.155  Ex parte communications.

    (a) No person shall communicate with an administrative law judge or 
an appeals officer either directly or indirectly concerning any pending 
proceeding unless prior to or simultaneously with such communication its 
contents are disclosed in detail to all persons interested in the 
proceeding; nor shall an adminstrative law judge or appeals officer 
request or consider any such unauthorized ex parte communication. This 
prohibition shall not apply to a simple request for information 
respecting the status of the proceeding, nor to any ex parte 
communication expressly authorized by these rules.
    (b) Any administrative law judge or appeals officer, who receives an 
ex parte communication which the judge knows or has reason to believe is 
unauthorized, shall promptly place the communication, or its substance, 
in the public file and shall inform all persons interested in the 
proceeding of its existence and general contents. Facts or arguments so 
communicated shall not be taken into account in deciding any matter in 
issue unless such facts or arguments shall be brought properly before 
the administrative law judge.
    (c) Opportunity to answer allegations or contentions contained in an 
unauthorized ex parte communication may be afforded any interested 
person upon motion for leave to do so, wherever such leave will operate 
to assure a fair hearing or decision.



Sec. 1720.160  Form and filing requirements.

    (a) Filing. Except as otherwise permitted, an original and three 
copies of all documents shall be filed with the Docket Clerk for 
Administrative Proceedings, Room 10278, Department of Housing and Urban 
Development, Washington, DC 20410, on official work days between the 
hours of 8:45 a.m. and 5:15 p.m.
    (b) Title. Documents shall show clearly the title of the action, the 
docket number, and OILSR file number in connection with which they are 
filed.
    (c) Form. Except as otherwise permitted, all documents shall be 
printed, typewritten, or otherwise processed in clear legible form and 
on good unglazed paper.



Sec. 1720.165  Time computation.

    Computation of any period of time prescribed or allowed by the rules 
and regulations in this part, or by order of the Secretary or of an 
administrative law judge, shall begin with the first business day 
following that on which the act, event, development or default 
initiating such period of time shall have occurred. When the last day of 
the period so computed is a Saturday, Sunday, or national holiday, or 
other day on which the Department of Housing and Urban Development is 
closed, the period shall run until the end of the next following 
business day. Except when any prescribed or allowed period of time is 7 
days or less, each of the Saturdays, Sundays, and national holidays 
shall be included in the computation of the prescribed or allowed 
period.



Sec. 1720.170  Service.

    Notices, orders, processes, determinations and other documents 
required or permitted under these rules may be served as follows:
    (a) Upon the Secretary. By personal delivery at the office, or by 
registered or certified mail addressed to the office of any of the 
following officials in the

[[Page 75]]

Office of Interstate Land Sales Registration: Administrator; Associate 
Administrator; Director, Office of Interstate Land Sales Registration: 
Provided, however, That during the pendency of a proceeding before the 
Secretary all pleadings, motions, notices or other documents shall be 
served in accordance with the terms of Sec. 1720.160.
    (b) Upon any other person. By delivery of a copy of the documents to 
the person to be served wherever the person may be found, or by leaving 
such copy at the person's office or place of business with a person 
apparently in charge thereof, or, if there is no one in charge or if the 
office is closed or if the person has no office, by leaving a copy at 
the person's residence with some person of suitable age and discretion 
then residing therein, or sending a copy by registered or certified 
mail, return receipt requested, addressed to the person at the person's 
last known residence, or at the person's last known principal office or 
place of business. If the address of the residence, principal office, or 
place of business is unknown and cannot with due diligence be 
ascertained, service may be made by mail to any office at which the 
person to be served is known to be employed or by publication in the 
Federal Register.
    (c) Service on corporations, partnerships, associations, other 
entities. Service may be made upon any corporation, partnership, 
business association or other entity by serving any officer, director, 
partner, trustee, agent for service or managing agent thereof. A 
managing agent, within the meaning of this subsection, is an agent 
having the principal managerial responsibility in connection with the 
regular operation of a distinct office or activity of the enterprise.
    (d) Service through attorney. When a person other than the Secretary 
and the Secretary's staff shall have appeared of record in a proceeding, 
generally or specially, by attorney, all subsequent services of notices, 
orders, processes, and other documents in connection with such 
proceeding may be made upon such person by serving the attorney, except 
that subpoenas and other orders by which such person may be brought in 
contempt shall be served upon the person by one of the methods described 
in paragraphs (b) and (c) of this section. In any case, a copy of any 
document served on a client shall be sent to any attorney who has 
entered an appearance for that client. In such situations, it shall be 
sufficient proof of service to show that either the client or the 
attorney has received a copy of the document.
    (e) Proof of service. Proof of service shall not be required unless 
the fact of service is reasonably put in issue by appropriate motion or 
objection on the part of the person allegedly served or other party. In 
such cases, service may be established by written admission signed by or 
on behalf of the person to be served, or may be established prima facie 
by affidavit or certificate of service or mailing, as appropriate. When 
service is by registered or certified mail, it is complete upon delivery 
of the document by the post office.



Sec. 1720.175  Intervention by interested persons.

    (a) The administrative law judge, upon timely petition in writing 
and for good cause shown, and if deemed to be in the public interest, 
may permit any person to participate by intervention in the proceeding. 
The petition shall state:
    (1) The petitioner's relationship to and interest in the matters 
contained in the proceeding;
    (2) The petitioner's position with respect to each specific issue 
upon which the petitioner proposes to intervene, and the facts which the 
petitioner proposes to adduce in support of each such position; and
    (3) An assent to exercise of jurisdiction by the Department with 
respect to the petitioner.
    (b) The administrative law judge shall determine the propriety of 
such intervention and the extent to which such intervener may 
participate, basing such determination upon applicable law, the 
directness and substantiality of the petitioner's interest in the 
proceeding and the effect upon the proceeding of allowing such 
participation.

[[Page 76]]



Sec. 1720.180  Settlements.

    Parties may propose in writing, at any time during the course of a 
proceeding, offers of settlement which shall be submitted to the 
Secretary. If determined to be appropriate, the party making the offer 
may be given an opportunity to make an oral presentation in support of 
such offer. If an offer of settlement is rejected, the party making the 
offer shall be so notified and the offer shall be deemed withdrawn and 
shall not constitute a part of the record in the proceeding. Final 
acceptance by the Secretary of any offer of settlement will terminate 
any proceeding related thereto upon notification to the administrative 
law judge or the appeals officer.

                                Pleadings



Sec. 1720.205  Suspension notice under Sec. 1710.45(a) of this chapter.

    A suspension pursuant to Sec. 1710.45(a) of this chapter shall be 
effected by service of a suspension notice which shall contain:
    (a) An identification of the filing to which the notice applies.
    (b) A specification of the deficiencies of form, disclosure, 
accuracy, documentation or fee tender which constitute the grounds under 
Sec. 1710.45(a) of this chapter, of the suspension, and of the 
additional or corrective procedure, information, documentation, or 
tender which will satisfy the Secretary's requirements.
    (c) A notice of the hearing rights of the developer under 
Sec. 1720.210 and of the procedures for invoking those rights.
    (d) A notice that, unless otherwise ordered, the suspension shall 
remain in effect until 30 days after the developer cures the specified 
deficiencies as required by the notice.



Sec. 1720.210  Hearings--suspension notice pursuant to Sec. 1710.45(a) of this chapter.

    (a) A developer, upon receipt of a suspension notice issued pursuant 
to Sec. 1710.45(a) of this chapter, may obtain a hearing by filing a 
written request in accordance with the instructions regarding such 
request contained in the suspension notice. Such a request must be filed 
within 15 days of receipt of the suspension notice and must be 
accompanied by an answer and 3 copies thereof signed by the respondent 
or the respondent's attorney conforming to the requirements of 
Sec. 1720.245. Filing of a motion for a more definite statement pursuant 
to Sec. 1720.315 shall alter the period of time to request a hearing in 
accordance with Sec. 1720.240.
    (b) When a hearing is requested pursuant to paragraph (a) of this 
section, such hearing shall be held within 20 days of receipt of the 
request. The time and place for hearing shall be fixed with due regard 
for the public interest and the convenience and necessity of the parties 
or their representatives.
    (c) A request for hearing filed pursuant to paragraph (a) of this 
section shall not interrupt or annul the effectiveness of the suspension 
notice, and suspension of the effective date of the Statement or 
amendment shall continue until vacated by order of the Secretary or 
administrative law judge. Except in cases in which the developer shall 
waive or withdraw the request for such hearing, or shall fail to pursue 
the same by appropriate appearance at a hearing duly scheduled, noticed 
and convened, the suspended filing shall be reinstated in the event of 
failure of the Secretary to schedule, give notice of or hold a duly-
requested hearing within the time specified in paragraph (b) of this 
section, or in the event of a finding that the Secretary has failed to 
support at such hearing the propriety of the suspension with respect to 
the material issues of law and fact raised by the answer. Such 
reinstatement shall be effective on the date on which the filing would 
have become effective had no notice of suspension been issued with 
respect to it.
    (d) If there is an outstanding suspension notice under 
Sec. 1710.45(a) with respect to the same matter for which a suspension 
order under Sec. 1710.45(b)(3) is issued, the notice and order shall be 
consolidated for the purposes of hearing. In the event that allegations 
upon which the suspension notice and suspension order are based are 
identical, only one answer need be filed.

[[Page 77]]



Sec. 1720.215  Notice of proceedings pursuant to Sec. 1710.45(b)(1) of this chapter.

    A proceeding pursuant to Sec. 1710.45(b)(1) of this chapter is 
commenced by issuance and service of a notice which shall contain:
    (a) A clear and accurate identification of the filing or filings to 
which the notice relates.
    (b) A clear and concise statement of material facts, sufficient to 
inform the respondent with reasonable definiteness of the statements, 
omissions, conduct, circumstances or practices alleged to constitute the 
grounds for the proposed suspension order under Sec. 1710.45(b)(1) of 
this chapter.
    (c) A notice of hearing rights of the developer under Sec. 1720.220 
and of the procedures for invoking those rights.
    (d) Designation of the administrative law judge appointed to preside 
over pre-hearing procedures and over the hearings.
    (e) A notice that failure to file an answer or motion as provided 
under Sec. 1720.240 will result in an order suspending the Statement of 
Record.



Sec. 1720.220  Hearings--notice of proceedings pursuant to Sec. 1710.45(b)(1) of this chapter.

    (a) A developer, upon receipt of a notice of proceedings issued 
pursuant to Sec. 1710.45(b)(1) of this chapter, may obtain a hearing by 
filing a written request in accordance with the instructions regarding 
such request contained in the notice of proceedings. Such a request must 
be filed within 15 days of receipt of the notice of proceedings and must 
be accompanied by an answer conforming to the requirements of 
Sec. 1720.245. Filing of a motion for a more definite statement pursuant 
to Sec. 1720.315 shall alter the period of time to request a hearing in 
accordance with Sec. 1720.240.
    (b) When a hearing is requested pursuant to paragraph (a) of this 
section, such hearing shall be held within 45 days of receipt of the 
request by the Secretary unless it is determined that it is not in the 
public interest. The time and place for hearing shall be fixed with due 
regard for the public interest and the convenience and necessity of the 
parties or their representatives.
    (c) Failure to answer within the time allowed by Sec. 1720.140 or 
failure of a developer to appear at a hearing duly scheduled shall 
result in an appropriate order under Sec. 1710.45(b)(1) of this chapter 
suspending the statement of record. Such order shall be effective as of 
the date of service or receipt.



Sec. 1720.225  Suspension order under Sec. 1710.45(b)(2) of this chapter.

    A suspension pursuant to Sec. 1710.45(b)(2) of this chapter shall be 
effected by service of a suspension order which shall contain:
    (a) An identification of the filing to which the order applies.
    (b) Bases for issuance of order.
    (c) A notice of the hearing rights of the developer under 
Sec. 1720.235 the procedures for invoking those rights.
    (d) A statement that the order shall remain in effect until the 
developer has complied with the Secretary's requirements.



Sec. 1720.230  Suspension order under Sec. 1710.45(b)(3) of this chapter.

    A suspension pursuant to paragraph (b)(3) of Sec. 1710.45 of this 
chapter shall be effected by service of a suspension order which shall 
contain:
    (a) An identification of the filing to which the order applies.
    (b) An identification of the amendment to the filing which generated 
the order.
    (c) A statement that the issuance of the order is necessary or 
appropriate in the public interest or for the protection of purchasers.
    (d) A statement that the order shall remain in effect until the 
amendment becomes effective.
    (e) A notice of the hearing rights of the developer under 
Sec. 1720.235 and of the procedure for invoking those rights.



Sec. 1720.235  Hearings--suspension orders issued pursuant to Sec. 1710.45(b)(2) and Sec. 1710.45(b)(3) of this chapter.

    (a) A developer, upon receipt of a suspension order issued pursuant 
to Sec. 1710.45(b)(2) or Sec. 1710.45(b)(3) of this chapter, may obtain 
a hearing by filing a written request in accordance with the 
instructions regarding such request

[[Page 78]]

contained in the suspension order. Such request must be filed within 15 
days of receipt of the suspension order and must be accompanied by an 
answer and 3 copies thereof signed by the respondent or respondent's 
attorney conforming to the requirements of Sec. 1720.245. Filing of a 
motion for a more definite statement pursuant to Sec. 1720.315 shall 
alter the period of time to request a hearing in accordance with 
Sec. 1720.240.
    (b) When a hearing is requested pursuant to paragraph (a) of this 
section, such hearing shall be held within 20 days of receipt of the 
request. The time and place for hearing shall be fixed with due regard 
for the public interest and the convenience and necessity of the parties 
or their representatives.
    (c) A request for hearing filed pursuant to paragraph (a) of this 
section shall not interrupt or annul the effectiveness of the suspension 
order.



Sec. 1720.236  Notice of proceedings to withdraw a State's certification pursuant to Sec. 1710.505 of this chapter.

    A proceeding pursuant to Sec. 1710.505 of this chapter is commenced 
by issuance and service of a notice which shall contain:
    (a) An identification of the State certification to which the notice 
applies.
    (b) A clear and concise statement of material facts, sufficient to 
inform the respondent with reasonable definiteness of the basis for the 
Secretary's determination, pursuant to Sec. 1710.505, that the State's 
laws, regulations and the administration thereof, taken as a whole, no 
longer meet the requirements of Sec. 1710. 501.
    (c) A notice of hearing rights of the State under Sec. 1720.237 and 
of the procedures for invoking those rights.
    (d) A notice that failure to file an answer or motion as provided 
under Sec. 1720.240 will result in an order suspending the State's 
certification.

[45 FR 40499, June 13, 1980]



Sec. 1720.237  Hearings--notice of proceedings pursuant to Sec. 1710.505 of this chapter.

    (a) A State, upon receipt of a notice of proceedings issued pursuant 
to Sec. 1710.505 of this chapter, may obtain a hearing by filing a 
written request in accordance with the instructions regarding such 
request contained in the notice of proceedings. Such request must be 
filed within 15 days of receipt of the notice of proceedings and must be 
accompanied by an answer conforming to the requirements of 
Sec. 1720.245. Filing of a motion for a more definite statement pursuant 
to Sec. 1720.315 shall alter the period of time to request a hearing in 
accordance with Sec. 1720.240.
    (b) When a hearing is requested pursuant to paragraph (a) of this 
section, such hearing shall be held within 45 days of receipt of this 
request. The time and place for the hearing shall be fixed with due 
regard for the public interest and the convenience and necessity of the 
parties or their representatives.
    (c) Failure to answer within the time allowed by Sec. 1720.240 or 
failure to appear at a hearing duly scheduled shall result in an 
appropriate order under Sec. 1710.505 of this chapter withdrawing the 
State's certification. Such order shall be effective as of the date of 
service or receipt.

[45 FR 40499, June 13, 1980]



Sec. 1720.238  Notices of proceedings to terminate exemptions pursuant to Secs. 1710.14, 1710.15 and 1710.16 of this chapter.

    A proceeding to terminate a self-determining exemption under 
Sec. 1710.14 or an exemption order under Sec. 1710.15 or Sec. 1710.16 is 
commenced by issuance and service of a notice which shall contain:
    (a) In the case of an exemption under Sec. 1710.14, an 
identification of the developer and subdivision to which this notice 
applies. In the case of an exemption under either Sec. 1710.15 or 
Sec. 1710.16, an identification of the exemption order to which the 
notice applies.
    (b) A clear and concise statement of material facts, sufficient to 
inform the respondent with reasonable definiteness of the basis for the 
Secretary's determination that further exemption from the registration 
and disclosure requirements is not in the public interest or that the 
sales or leases do not meet the requirements for exemption, or both.

[[Page 79]]

    (c) A notice of hearing rights of the respondent under Sec. 1720.239 
and of the procedures for invoking those rights.
    (d) A notice that failure to file an answer or motion as provided 
under Sec. 1720.240 will result, in the case of a notice issued under 
Sec. 1710.14, an order terminating eligibility for the exemption, or, in 
the case of a notice issued under either Sec. 1710.15 or Sec. 1710.16, 
an order terminating the exemption order.

[45 FR 40499, June 13, 1980, as amended at 54 FR 40868, Oct. 4, 1989]



Sec. 1720.239  Hearings--notice of proceedings pursuant to Secs. 1710.14, 1710.15 and 1710.16 of this chapter.

    (a) A developer, upon receipt of a notice of proceedings issued 
under Secs. 1710.14, 1710.15 and 1710.16 of this chapter, may obtain a 
hearing by filing a written request contained in the notice of 
proceedings. The request must be filed within 15 days of receipt of the 
notice of proceedings and must be accompanied by an answer conforming to 
the requirements of Sec. 1720.245. Filing of a motion for a more 
definite statement under Sec. 1720.315 shall alter the period of time to 
request a hearing in accordance with Sec. 1720.240.
    (b) When a hearing is requested pursuant to paragraph (a) of this 
section, such hearing shall be held within 45 days of receipt of this 
request. The time and place for the hearing shall be fixed with due 
regard for the public interest and the convenience and necessity of the 
parties of their representatives.
    (c) Failure to answer within the time allowed by Sec. 1720.240, or 
failure to appear at a duly scheduled hearing shall result in an 
appropriate order under Sec. 1710.14 Sec. 1710,15 or Sec. 1710.16 of 
this chapter terminating the developer's exemption. The order shall be 
effective as of the date of service or receipt.

[45 FR 40500, June 13, 1980, as amended at 54 FR 40868, Oct. 4, 1989]



Sec. 1720.240  Time for filing answer.

    (a) Within 15 days after service of the notice or order, the 
respondent shall mail or submit to the Docket Clerk for Administrative 
Proceedings, Room 10278, Department of Housing and Urban Development, 
Washington, DC 20410, an answer and three copies thereof signed by the 
respondent or attorney. Unless a different time is fixed by the 
Secretary, the filing of a motion for a more definite statement of the 
allegations shall alter the period of time in which to file an answer as 
follows:
    (1) If the motion is denied, the answer shall be filed within 15 
days after service of the denial.
    (2) If the motion is granted in whole or in part, the more definite 
statement of allegations shall be filed after service of the order 
granting the motion and the answer shall be filed within 15 days after 
service of the more definite statement of allegations.
    (b) If a notice or order is amended pursuant to Sec. 1720.255(a), 
the respondent shall have 15 days after service of the amended notice or 
order within which to file an answer.



Sec. 1720.245  Content of answer.

    (a) An answer to a notice or order shall contain:
    (1) Specific admission, denial or explanation of each fact alleged 
in the notice or, if the respondent is without knowledge thereof, a 
statement to that effect; and
    (2) A brief statement of the facts constituting each defense.
    (b) Allegations not answered in this manner shall be deemed 
admitted.



Sec. 1720.250  Presumption of hearing request.

    When an answer to a suspension notice, a notice of proceedings, or a 
suspension order is timely filed but a respondent has failed 
specifically to request a hearing, the answer shall be deemed to 
constitute such a request.



Sec. 1720.255  Amendments and supplemental pleadings.

    (a) Amendments. Prior to the receipt by the Docket Clerk for 
Administrative Proceedings of an answer to a notice or order, that 
notice or order may be amended as a matter of course. After the receipt 
of an answer, the administrative law judge may allow appropriate 
amendments to pleadings by motion whenever determination of a 
controversy on the merits will be facilitated thereby.
    (b) Variances of proof. When issues not raised by the pleadings but 
reasonably

[[Page 80]]

within the scope of the suspension notice or notice of proceedings are 
tried by express or implied consent of the parties, they shall be 
treated in all respects as if they had been raised in the pleadings; and 
such amendments of the pleadings as may be necessary to make them 
conform to the evidence and to raise such issues shall be allowed at any 
time.
    (c) Supplemental pleadings. The administrative law judge may, upon 
reasonable notice and such terms as are just, permit service of a 
supplemental pleading setting forth transactions or events which have 
occurred since the date of the pleading sought to be supplemented and 
which are relevant to any of the issues involved.



Sec. 1720.260  Prehearing conferences.

    (a) Where it will expedite the proceeding, the administrative law 
judge may direct or allow the parties or their representatives to appear 
for a conference to consider:
    (1) Simplification and clarification of the issues;
    (2) Necessity or desirability of amendments to the pleadings;
    (3) Stipulations and admissions of fact and the contents and 
authenticity of documents;
    (4) Expedition in the discovery and presentation of evidence;
    (5) Matters of which official or judicial notice will be taken; and
    (6) Such other matters as may aid in the orderly and expeditious 
disposition of the proceeding, including disclosure of the names of 
witnesses and of documents or other exhibits which will be introduced in 
evidence in the course of the proceeding.

Prior to the conference, the administrative law judge may direct or 
allow the parties or their representatives to file memoranda specifying 
the issues of law and fact to be considered.
    (b) If the circumstances are such that a conference is 
impracticable, the administrative law judge may require the parties to 
correspond for the purpose of accomplishing any of the objectives set 
forth in this section.



Sec. 1720.265  Reporting--prehearing conferences.

    Prehearing conferences shall be stenographically or mechanically 
reported; and the administrative law judge shall prepare and file for 
the record a written summary of the action taken at the conference, 
which shall incorporate any written agreements or stipulations made by 
the parties at the conference or as a result of the conference.

                                 Motions



Sec. 1720.305  Motions--filing requirements.

    During the time a proceeding is before an administrative law judge, 
all motions therein shall be in writing; and, except as otherwise 
provided in this part, a copy of each motion shall be served on the 
other party or parties. Such motions shall be signed, addressed to, 
filed with and ruled upon by the administrative law judge. The 
provisions of this section need not apply to motions made during the 
course of a hearing.



Sec. 1720.310  Answers to motions.

    Within 7 days after service of any written motion, an opposing party 
shall answer or shall be deemed to consent to the granting of the relief 
asked for in the motion. The moving party shall have no right to reply 
except as permitted by the administrative law judge or the appeals 
officer.



Sec. 1720.315  Motion for more definite statement.

    When a respondent is unable to respond to the allegations in a 
suspension notice, a notice of proceedings, or a suspension order, 
because such allegations are vague, unclear or otherwise indefinite, 
motion may be made requesting a more definite statement of the 
allegations before filing an answer. Such motion shall indicate 
specifically in what manner the notice or order is indefinite or 
defective and shall be mailed or submitted to the Docket Clerk for 
Administrative Proceedings, Room 10278, Department of Housing and Urban 
Development, Washington, DC 20410, within five days after service of the 
notice or order.

[[Page 81]]



Sec. 1720.320  Motions for extension of time.

    As a matter of discretion, the administrative law judge or the 
appeals officer may waive the requirements of Sec. 1720.310 as to 
motions for extension of time, and may rule upon such motions ex parte. 
Extensions of time or continuances in any proceeding may be ordered on a 
motion by the administrative law judge or on the motion of either party 
for sufficient cause after the policy of the Secretary under 
Sec. 1720.125 has been considered.



Sec. 1720.325  Motions for dismissal.

    (a) A motion to dismiss may be made at any time until and including 
the fifth day after the close of the case for the reception of evidence.
    (b) When a motion to dismiss, based upon alleged failure to 
establish a prima facie case, is made at the close of the evidence 
offered in support of the notice or order, the administrative law judge 
may defer ruling thereon until the close of the case for the reception 
of evidence.
    (c) When a motion to dismiss is granted so as to terminate entirely 
the proceeding before the administrative law judge, the administrative 
law judge shall file a decision in accordance with the provisions of 
Sec. 1720.525. If such a motion is granted only as to some allegations 
or as to some respondents, the administrative law judge shall enter this 
partial determination on the record and take it into account in the 
decision.



Sec. 1720.330  Motions to limit or quash.

    Any person to whom a subpoena is directed may, prior to the time 
specified therein for compliance, but in no event more than 5 days after 
the date of service of such subpoena, apply to the administrative law 
judge to quash or modify such subpoena, accompanying such application 
with a brief statement of the reasons therefor. The administrative law 
judge shall have the discretion of granting, denying or modifying said 
motion.



Sec. 1720.335  Consolidation.

    When more than one proceeding involves a common question of law or 
fact, the administrative law judge may order a joint hearing of any or 
all of the matters in issue in the proceedings and may make such other 
orders concerning the proceedings as to avoid unnecessary costs or 
delay.

                         Discovery and Evidence



Sec. 1720.405  Depositions and discovery.

    (a) At any time during the course of a proceeding, the 
administrative law judge may discretionally order the taking of a 
deposition and the production of documents by the deponent. Such order 
may be entered upon a showing that the deposition is necessary for the 
purpose of discovery or to preserve relevant evidence. Insofar as 
consistent with considerations of fairness and the requirements of due 
process and the rules of this subpart, a deposition shall not be ordered 
when it appears that it will result in undue burden to any other party 
or in undue delay of the proceeding. Depositions may be taken orally or 
upon written interrogatories and cross-interrogatories.
    (b) Any party desiring to take a deposition shall make application 
in writing to the administrative law judge setting forth the 
justification therefor and the time and place proposed for the taking of 
the deposition. The application shall include also the name and address 
of each proposed deponent and the subject matter concerning which each 
is expected to depose and shall be accompanied by an application for any 
subpoenas desired.
    (c) An order that the administrative law judge may issue for taking 
a deposition shall state the circumstances warranting its being taken, 
and shall designate the time and place and shall show the name and 
address of each person who is expected to appear and the subject matter 
with regard to which each is expected to depose. The time designated 
shall allow not less than 5 days from date of service of the order when 
the deposition is to be taken within the United States, and not less 
than 15 days when the deposition is to be taken elsewhere.
    (d) After an order is served for taking a deposition upon motion 
timely made by any party or by the person to be deposed and for good 
cause shown, the administrative law judge may determine

[[Page 82]]

the propriety of and issue any of the following orders:
    (1) That the deposition shall not be taken.
    (2) That it may be taken only at some designated place other than 
that stated in the order.
    (3) That it may be taken only on written interrogatories.
    (4) That certain matters shall not be inquired into.
    (5) That the examination shall be held with no one present except 
the parties to the action, their counsel and a person qualified in the 
designated place to administer oaths and affirmations.
    (e) The administrative law judge may make any other order which 
justice requires to protect the party or deponent from annoyance, 
embarrassment or oppression, or to prevent the unnecessary disclosure or 
publication of information contrary to the public interest and beyond 
the requirements of justice in the particular proceeding.
    (f) Each deponent shall be duly sworn, and any adverse party shall 
have the right to cross-examine. Objections to questions or documents 
shall be in short form, stating the grounds of objections relied upon. 
The questions and the anwers, together with all objections made, but 
excluding argument or debate, shall be reduced to writing and certified 
by the person before whom the deposition was taken. Thereafter such 
person shall forward the deposition and one copy thereof to the party at 
whose instance the deposition was taken, and shall forward one copy 
thereof to the representative of each party who was present or 
represented at the taking of the deposition.
    (g) A deposition taken to preserve relevant evidence which any party 
intends to offer in evidence may be corrected in the manner provided by 
Sec. 1720.515. Any such deposition shall, in addition to the other 
required procedures, be read to or by the deponent and be subscribed by 
the deponent if the party intending to offer it in evidence so notifies 
the person before whom the deposition was taken. Subject to appropriate 
rulings on such objections to the questions and answers as were noted at 
the time the deposition was taken or as may be valid when it is offered, 
a deposition taken to preserve relevant evidence, or any part thereof, 
may be used or offered in evidence as against any party who was present 
or represented at the taking of the deposition or who had due notice 
thereof if the administrative law judge finds any of the following:
    (1) That the deponent is dead.
    (2) That the deponent is out of the United States or is located at 
such a distance that attendance would be impractical, unless it appears 
that the absence of the deponent was procured by the party offering the 
deposition.
    (3) That the deponent is unable to attend or testify because of age, 
sickness, infirmity or imprisonment.
    (4) That the party offering the deposition has been unable to 
procure the attendance of the deponent by subpoena.
    (5) That such exceptional circumstances exist as to make it 
desirable, in the interest of justice and with due regard to the 
importance of presenting the testimony of witnesses orally in open 
hearing, to allow the deposition to be used.



Sec. 1720.410  Subpoenas ad testificandum.

    Application for issuance of a subpoena requiring a person to appear 
and depose or testify at the taking of a deposition or at an 
adjudicative hearing shall be made to the administrative law judge who 
may issue such subpoena.



Sec. 1720.415  Subpoenas duces tecum.

    (a) Application for issuance of a subpoena requiring a person to 
appear and depose or testify and to produce specific documents, papers, 
books, or other physical exhibits at the taking of a deposition, or at a 
prehearing conference, or at an adjudicative hearing shall be made in 
writing to the administrative law judge who may issue such subpoena and 
shall specify as exactly as possible the general relevancy of the 
material and the reasonableness of the scope of the subpoena.
    (b) Subpoenas duces tecum may be used by any party for purposes of 
discovery or for obtaining documents, papers, books, or other physical 
exhibits

[[Page 83]]

for use in evidence, or for both purposes. When used for discovery 
purposes a subpoena may require a person to produce and permit the 
inspection and copying of nonprivileged documents, papers, books, or 
other physical exhibits which constitute or contain evidence relevant to 
the subject matter involved and which are in the possession, custody or 
control of such person.



Sec. 1720.420  Rulings on applications for compulsory process; appeals.

    (a) Applications for orders requiring the production of witnesses' 
statements pursuant to the provisions of Sec. 1720.430, applications for 
orders requiring the taking of depositions pursuant to Sec. 1720.405 and 
applications for the issuance of subpoenas pursuant to Secs. 1720.410 
and 1720.415 may be made ex parte, and, if so made, such applications 
and the rulings thereon shall remain ex parte unless otherwise ordered 
by the administrative law judge. Such applications shall be ruled upon 
by the administrative law judge assigned to hear the case or, in the 
event that judge is not available, by another administrative law judge 
designated by the Secretary.
    (b) Appeals to an appeals officer from rulings denying applications 
within the scope of paragraph (a) of this section, or from rulings on 
motions to limit or quash process issued pursuant to such applications 
will be entertained by the appeals officer only upon a showing that the 
ruling complained of involves substantial rights and will materially 
affect the final decision, and that a determiniation of its correctness 
before conclusion of the hearing is essential to serve the interests of 
justice. Such appeals shall be made on the record, shall briefly state 
the grounds relied on and shall be filed within 5 days after notice of 
the ruling complained of. Appeals from denials of ex parte applications 
shall have annexed thereto copies of the applications and rulings 
involved. Any answer to such appeal shall not operate to suspend the 
hearing unless otherwise ordered by the administrative law judge or the 
appeals officer.



Sec. 1720.425  Presentation and admission of evidence.

    (a) All witnesses at a hearing for the purpose of taking evidence 
shall testify under oath or affirmation which shall be administered by 
the administrative law judge. Every party shall have the right to 
present such oral or documentary evidence and to conduct such cross-
examinations as may be required for a full and true disclosure of the 
facts. The administrative law judge shall receive relevant and material 
evidence, rule upon offers of proof and exclude all irrelevant, 
immaterial or unduly repetitious evidence.
    (b) Evidence shall not be excluded merely by application of 
technical rules governing its admissibility, competency, weight or 
foundation in the record; but evidence lacking any significant probative 
value, or substantially tending merely to confuse or extend the record, 
shall be excluded. The administrative law judge may allow arguments on 
the admissibility of evidence by analogy to the Federal Rules of 
Evidence currently applicable in the United States District Courts of 
the United States.
    (c) When offered evidence is excluded, the party offering the same 
shall be permitted to state on the record an offer of proof with respect 
thereto and rejected exhibits, adequately marked, shall on request of 
the party offering the same be retained in the record for purposes of 
review. Evidence may be received subject to deferred ruling on 
objections to its admissibility.
    (d) Objections to evidence shall be timely made and shall specify 
the particular ground of objection without argument except as argument 
may be expressly required by the administrative law judge. Formal 
exception to an adverse ruling is unnecessary.



Sec. 1720.430  Production of witnesses' statements.

    After a witness called by the attorney for the Office of Interstate 
Land Sales Registration has given direct testimony in a hearing, any 
other party may request and obtain the production of any statement, or 
part thereof, of such witness pertaining to the witness' direct 
testimony in the possession of the Office of Interstate Land Sales

[[Page 84]]

Registration, subject, however, to the limitations applicable to the 
production of witnesses' statements under the Jencks Act, 18 U.S.C. 
3500.



Sec. 1720.435  Official notice.

    Official notice may be taken of any material fact which might be 
judicially noticed by a District Court of the United States, any matter 
in the public official records of the Office of Interstate Land Sales 
Registration or any matter which is peculiarly within the knowledge of 
the administrative law judge. When any decision of an administrative law 
judge rests, in whole or in part, upon the taking of official notice of 
a material fact not appearing in evidence of record, opportunity to 
disprove such noticed fact shall be granted any party making timely 
request therefor.

                                Hearings



Sec. 1720.505  Interlocutory review of administrative law judge's decision.

    (a) The appeals officer will not review a ruling of an 
administrative law judge prior to the appeals officer's consideration of 
the entire proceeding in the absence of extraordinary circumstances. 
Except as provided in Sec. 1720.140 an administrative law judge shall 
not certify a ruling for interlocutory review to an appeals officer 
unless a party so requests and the administrative law judge is of the 
opinion and finds either on the record or in writing that:
    (1) A subsequent reversal of the ruling would cause unusual delay or 
expense, taking into consideration the probability of such reversal, or
    (2) Substantial rights are at stake and the final decision might be 
materially affected.
    (b) The certification by the administrative law judge shall be in 
writing and shall specify the material relevant to the ruling involved. 
The appeals officer may decline to consider the ruling certified if the 
officer determines that interlocutory review is not warranted or 
appropriate under the circumstances. If the administrative law judge 
does not certify a matter, a party who had requested certification may 
apply to the appeals officer for review. An application for review shall 
be in writing and shall briefly state the grounds relied on and shall be 
filed within 2 days after notice of the ruling complained of. Review 
will not be granted unless the appeals officer concludes that the 
administrative law judge erred in failing to certify the matter. Unless 
otherwise ordered by the administrative law judge, the hearing shall 
continue whether or not such certification or application is made. 
Failure to request certification or to make such application will not 
waive the right to seek review of the ruling of the administrative law 
judge after the close of the hearing.

[43 FR 29496, July 7, 1978, as amended at 50 FR 10942, Mar. 19, 1985]



Sec. 1720.510  Reporting and transcription.

    Hearings shall be stenographically or mechanically reported and 
transcribed under the supervision of the administrative law judge. The 
original transcript shall be a part of the record and the sole official 
transcript. Copies of transcripts shall be available from the reporter 
at rates not to exceed the maximum rates fixed by contract between the 
Secretary and the reporter.



Sec. 1720.515  Corrections.

    Corrections of the official transcript ordered by the administrative 
law judge shall be included in the record. Corrections shall not be 
ordered by the administrative law judge except upon notice and 
opportunity for the hearing of objections. Such corrections shall be 
made by the reporter by furnishing substitute pages, under the usual 
certificate of the reporter, for insertion in the official record.



Sec. 1720.520  Proposed findings, conclusions, and order.

    The administrative law judge may fix a reasonable time, not to 
exceed 30 days after the close of the evidence, during which any party 
may file with the administrative law judge proposed findings of fact, 
conclusions of law and rules or orders together with briefs in support 
thereof. Such proposals shall be in writing, shall be served upon all

[[Page 85]]

parties and shall contain adequate references to the record and to 
authorities relied on. The record shall show the administrative law 
judge's ruling on each proposed finding and conclusion, except when the 
rule or order disposing of the proceeding otherwise informs the parties 
of the action taken thereon.



Sec. 1720.525  Decision of administrative law judge.

    (a) The administrative law judge shall make and file a decision 
within 30 days after the close of the taking of evidence in cases in 
which a hearing is held.
    (b) The decision shall be effective 10 days after service upon the 
parties unless a petition for appeal is filed pursuant to Sec. 1720.605 
which shall serve to stay the effectiveness of the decision while the 
appeal procedure is ongoing.



Sec. 1720.530  Decision of administrative law judge--content.

    The administrative law judge's decision shall include a statement 
of:
    (a) Findings, with specific references to principal supporting items 
of evidence in the record and conclusions, as well as the reasons or 
bases therefor, upon all of the material issues of fact, law or 
discretion presented on the record, and
    (b) An appropriate order.

The administrative law judge's decision shall be based upon a 
consideration of the whole record and supported by reliable, probative 
and substantial evidence.



Sec. 1720.535  Reopening of proceeding; termination of jurisdiction.

    (a) At any time prior to the filing of the decision, the 
administrative law judge may reopen the proceeding for the reception of 
further evidence.
    (b) The jurisdiction of the administrative law judge is terminated 
when the decision becomes effective unless and until the proceeding is 
remanded to the judge by the appeals officer or a court of appropriate 
jurisdiction. The administrative law judge may sua sponte or on motion 
of a party file corrections of clerical errors.

                                 Appeals



Sec. 1720.605  Appeal from decision of administrative law judge.

    (a) Petition for appeal. The administrative law judge's decision may 
be appealed by filing a written petition for appeal with the Docket 
Clerk for Administrative Proceedings within 10 days after service of the 
decision appealed from. Copies of the petition for appeal shall be 
served on all interested parties. The petition shall be limited to 
specifying the findings and conclusions to which exceptions are taken, 
together with a summary of the reasons in support of such exceptions.
    (b) Denial of petition. A petition for appeal of the decision of the 
administrative law judge may be denied by the appeals officer. The 
petition shall be ruled on by the appeals officer within 10 days after 
filing. A denial of the petition shall be final agency action and shall 
render the administrative law judge's decision immediately effective.
    (c) Appeal brief. If the appeals officer grants the petition, the 
appeal shall be perfected by filing within 30 days after service of the 
decision granting the petition a brief conforming to Sec. 1720.620. In 
addition, the appellant shall submit a proposed order for the 
consideration of the appeals officer.



Sec. 1720.610  Answering brief.

    Within 20 days after service of an appeal brief upon a party, such 
party may file an answering brief conforming to the requirements of 
Sec. 1720.620.



Sec. 1720.615  Reply brief.

    A brief in reply to an answering brief, limited to rebuttal of 
matters in the answering brief, may be filed and served by a party 
within 7 days after receipt of the answering brief or the day preceding 
oral argument whichever is earlier. No answer to a reply brief will be 
permitted.



Sec. 1720.620  Length and form of briefs.

    No brief shall exceed 60 pages in length except with the permission 
of the administrative law judge or the appeals officer on the Interstate 
Land Sales Board and shall contain, in the order indicated, the 
following:

[[Page 86]]

    (a) The title of the proceeding, file number, the name of the party 
on whose behalf it is submitted and the name and address of the attorney 
in the matter on the front cover or title page.
    (b) Subject index with page references.
    (c) Table of cases alphabetically arranged, statutes, texts, and 
other authorities and materials cited, with page references.
    (d) A concise statement of the facts of the case, without argument.
    (e) A concise statement of the questions sought to be raised.
    (f) The argument, presenting clearly the points of fact and law 
relied upon in support of the position taken on each question with 
specific page references to the record so far as available, and to legal 
authority or other material relied upon in support of statements 
contained in the argument.



Sec. 1720.625  Oral argument.

    Oral arguments will not be heard in cases on appeal to the appeals 
officer unless the officer otherwise orders, and stenographic or 
mechanical record of such oral argument may be made, in the officer's 
discretion. The purpose of oral argument is to emphasize and clarify the 
written argument appearing in the briefs and to answer questions.



Sec. 1720.630  Decision on appeal or review.

    (a) Upon appeal from or review of an administrative law judge's 
decision, the appeals officer will consider such parts of the record as 
are cited or as may be necessary to resolve the issues and, in addition, 
to the extent necessary or desirable, will exercise all the powers which 
could have been exercised had the appeals officer made the initial 
decision. Unless exceptional circumstances are present, however, all 
appeals and reviews will be determined upon the record made before the 
administrative law judge.
    (b) The appeals officer may affirm, reverse, modify, set aside or 
remand for further proceedings, in whole or in part, the administrative 
law judge's decision. The appellate order shall set forth the reasons 
upon which the decision is based.
    (c) In those cases where the appeals officer believes that further 
information or additional arguments of the parties are needed as to the 
form and content of the rule or order to be issued, the appeals officer 
may withhold final decision pending the receipt of such additional 
information or argument under procedures specified.
    (d) The decision of the appeals officer shall be final 10 days after 
service upon the parties.
    (e) The appeals officer shall render a decision within 30 days after 
the date of receipt of the reply brief or the taking of additional 
information and evidence, whichever is later.



Sec. 1720.635  Appeals officer.

    The Secretary shall hear, consider and determine fully and finally 
all appeals from decisions made pursuant to the rules in this part by 
the administrative law judge; provided, however, that the Secretary may, 
upon lawful delegation, designate a staff member or other person to 
serve as the appeals officer.

[[Page 87]]



  CHAPTER XII--OFFICE OF INSPECTOR GENERAL, DEPARTMENT OF HOUSING AND 
                            URBAN DEVELOPMENT




  --------------------------------------------------------------------

Part                                                                Page
2000            [Reserved]
2002            Availability of information to the public...          89
2003            Implementation of the Privacy Act of 1974...          95
2004            Subpoenas and production in response to 
                    subpoenas or demands of courts or other 
                    authorities.............................          98

[[Page 89]]



PART 2000 [RESERVED]--Table of Contents






PART 2002--AVAILABILITY OF INFORMATION TO THE PUBLIC--Table of Contents




Sec.
2002.1  Scope of the part and applicability of other HUD regulations.
2002.3  OIG's overall policy concerning discloseable records and 
          requests for OIG records.
2002.5  Records produced upon request when reasonably described.
2002.7  OIG processing of requests.
2002.9   Where to review records.
2002.11  Review of records, aggregating requests and waiving or reducing 
          fees.
2002.13  Charges for interest and for unsuccessful searches; utilization 
          of Debt Collection Act.
2002.15  Advance payments.
2002.17  Time limitations.
2002.19  Authority to release records or copies.
2002.21  Authority to deny requests for records and form of denial.
2002.23  Effect of denial of request.
2002.25  Administrative review.

    Authority: 5 U.S.C. 552; Electronic Freedom of Information Act (Pub. 
L. 104-231); Freedom of Information Reform Act of 1986 (Pub. L. 99-579); 
5 U.S.C. App. 3 (Inspector General Act of 1978); 42 U.S.C. 3535(d); 
Delegation of Authority, Jan. 9, 1981 (46 FR 2389).

    Source: 49 FR 11165, Mar. 26, 1984, unless otherwise noted.



Sec. 2002.1  Scope of the part and applicability of other HUD regulations.

    (a) General. This part contains the regulations of the Office of 
Inspector General which implement the Freedom of Information Act (5 
U.S.C. 552). It informs the public how to request records and 
information from the Office of Inspector General and explains the 
procedure to use if a request is denied. Requests for documents made by 
subpoena or other order are governed by procedures contained in part 
2004 of this chapter. In addition to the regulations in this part, the 
following provisions of part 15 of this title covering the production or 
disclosure of material or information apply (except as limited in 
paragraph (b) of this section) to the production or disclosure of 
material in the possession of the Office of Inspector General:
    Sec. 15.2--What definitions apply to this part?
    Sec. 15.3--What exemptions are authorized by 5 U.S.C. 552?;
    Sec. 15.108--What are HUD's policies concerning designating 
confidential commercial or financial information under Exemption 4 of 
the FOIA and responding to requests for business information?
    Sec. 15.110--What fees will HUD charge?
    (b) Limited applicability of section 15.110. For purposes of this 
part, paragraphs (d) through (k) of Sec. 15.110 are not applicable.
    (c) Use of the term ``HUD''. For purposes of this part, and when the 
words ``HUD'' or ``Department'' are used in this part or Secs. 15.2(b), 
15.3, 15.108 and 15.110 of this title, the term means the Office of the 
Inspector General.
    (d) Request for declassification and release of classified material. 
Section 15.107 of this title contains provisions for requesting 
declassification and release of declassified material.

[67 FR 47216, July 17, 2002]



Sec. 2002.3  OIG's overall policy concerning discloseable records and requests for OIG records.

    (a) The Office of Inspector General will fully and responsibly 
disclose its identifiable records and information consistent with 
competing public interests, such as national security, personal privacy, 
grand jury and investigative secrecy, complainant confidentiality, 
agency deliberative process, as are recognized by FOIA and other federal 
statutes.
    (b) A request for Office of Inspector General records may be made in 
person during normal business hours at any office where Office of 
Inspector General employees are permanently stationed. Although oral 
requests may be honored, a requester may be asked to submit the request 
in writing. A written request shall be addressed to: The Office of 
Inspector General, Department of Housing and Urban Development, 451 
Seventh Street, SW, Room 8260, Washington, DC 20410.
    (c) Each request must reasonably describe the desired record 
including the name, subject matter, and number or date, where possible, 
so that the record

[[Page 90]]

may be identified and located. The request should also include the name, 
address and telephone number of the requester, and the format in which 
the requester would like the desired record to be reproduced. In order 
to enable the Office of Inspector General to comply with the time 
limitations set forth in Sec. 2002.17, both the envelope containing a 
written request and the letter itself should clearly indicate that the 
subject is a Freedom of Information Act request.
    (d) The request must be accompanied by the fee or an offer to pay 
the fee as determined in Sec. 15.110.
    (e) Copies of available records will be made as promptly as 
possible. Copying service will be limited to not more than 10 copies of 
any single page. Records that are published or available for sale need 
not be reproduced.
    (f) To the extent that records are readily reproducible, the Office 
of Inspector General will send records in the form requested, including 
electronic format.

[67 FR 47217, July 17, 2002]



Sec. 2002.5  Records produced upon request when reasonably described.

    (a) When a request is made which reasonably describes a record of 
the Office of Inspector General (see Sec. 2002.3) which has been stored 
in the National Archives or other record center of the General Services 
Administration, the record will be requested by the Office of Inspector 
General if it otherwise would be available under this part.
    (b) Every effort will be made to make a record in use by the staff 
of the Office of Inspector General available when requested, and such 
availability will be deferred only to the extent necessary to avoid 
serious interference with the business of the Office of Inspector 
General.



Sec. 2002.7  OIG processing of requests.

    (a) Multitracking. (1) The Office of Inspector General places each 
request in one of two tracks. The Office of Inspector General places 
requests in its simple or complex track based on the amount of work and 
time involved in processing the request. Factors the Office of Inspector 
General will consider in assigning a request in the simple or complex 
track will include whether the request involves the processing of 
voluminous documents and/or whether the request involves responsive 
documents from more than one organizational unit. Within each track, the 
Office of Inspector General processes requests in the order in which 
they are received.
    (2) For requests that have been sent to the wrong office, the Office 
of Inspector General will assign the request within each track using the 
earlier of either:
    (i) The date on which the request was referred to the appropriate 
office; or,
    (ii) The end of the ten (10) working day period in which the request 
should have been referred to the appropriate office.
    (b) Expedited processing. The Office of Inspector General may take 
your request or appeal out of normal order if the Office of Inspector 
General determines that you have a compelling need for the records or in 
other cases as determined by the Office of Inspector General. If the 
Office of Inspector General grants your request for expedited 
processing, the Office of Inspector General will give your request 
priority and will process it as soon as practicable. The Office of 
Inspector General will consider a compelling need to exist if:
    (1) Your failure to obtain the requested records on an expedited 
basis could reasonably be expected to pose an imminent threat to the 
life or physical safety of an individual or a threatened loss of 
substantial due process rights; or,
    (2) You are primarily engaged in disseminating information and there 
is an urgency to inform the public concerning actual or alleged Federal 
Government activity.

[67 FR 47217, July 17, 2002]



Sec. 2002.9  Where to review records.

    (a) You may inspect and copy hardcopy records that section 552(a)(2) 
of FOIA requires the Office of Inspector General make available to the 
public in reading rooms. At the Headquarters and DC Offices, this would 
be at HUD's Library, Room 8141, 451 Seventh St., SW, Washington, DC 
20410, and should be coordinated through Counsel's Office to the 
Inspector General, Room

[[Page 91]]

8260. Local offices may coordinate for local requests.
    (b) For records created on or after November 1, 1996, this 
information is available to you through the Office of Inspector 
General's Internet website at http://www.hud.gov/oig/oigindex.html.

[67 FR 47217, July 17, 2002]



Sec. 2002.11  Review of records, aggregating requests and waiving or reducing fees.

    (a) Review of records. Only requesters who are seeking documents for 
commercial use may be charged for the time HUD spends reviewing records 
to determine whether they are exempt from mandatory disclosure. Charges 
may be assessed only for the initial review (i.e., the review undertaken 
the first time HUD analyzes the applicability of a specific exemption to 
a particular record or portion of a record). HUD will not charge for 
review at the administrative appeal level of an exemption already 
applied. However, records or portions of records withheld in full under 
an exemption which is subsequently determined not to apply may be 
reviewed again to determine the applicability of other exemptions not 
previously considered. The costs for such a subsequent review would be 
properly assessable. Review time will be assessed at the same rates 
established for search time in Sec. 15.110 of this title.
    (b) Aggregating requests. A requester may not file multiple requests 
at the same time, each seeking portions of a document or documents, 
solely in order to avoid payment of fees. When HUD reasonably believes 
that a requester or a group of requesters acting in concert, is 
attempting to break a request down into a series of requests for the 
purpose of evading the assessment of fees, HUD may aggregate any such 
requests and charge accordingly.
    (c) Waiving or reducing fees. HUD will furnish documents without 
charge or at reduced charge if disclosure of the information is in the 
public interest because it is likely to contribute significantly to 
public understanding of the operations or activities of the government 
and is not primarily in the commercial interest of the requester. The 
official authorized to grant access to records may waive or reduce the 
applicable fee where requested. The determination not to waive or reduce 
the fee will be subject to administrative review as provided in 
Sec. 2002.25 after the decision on the request for access has been made. 
Six factors shall be used in determining whether the requirements for a 
fee waiver or reduction are met. These factors are as follows:
    (1) The subject of the request: Whether the subject of the requested 
records concerns ``the operations or activities of the government'';
    (2) The informative value of the information to be disclosed: 
Whether the disclosure is ``likely to contribute'' to an understanding 
of government operations or activities;
    (3) The contribution to an understanding of the subject by the 
general public likely to result from disclosure: Whether disclosure of 
the requested information will contribute to ``public understanding'';
    (4) The significance of the contribution to public understanding: 
Whether the disclosure is likely to contribute ``significantly'' to 
public understanding of government operations or activities;
    (5) The existence and magnitude of a commercial interest: Whether 
the requester has a commercial interest that would be furthered by the 
requested disclosure; and, if so
    (6) The primary interest in disclosure: Whether the magnitude of the 
identified commercial interest of the requester is sufficiently large, 
in comparison with the public interest in disclosure, that disclosure is 
``primarily in the commercial interest of the requester.''

[53 FR 37551, Sept. 27, 1988, as amended at 67 FR 47217, July 17, 2002]



Sec. 2002.13  Charges for interest and for unsuccessful searches; utilization of Debt Collection Act.

    (a) Charging interest. HUD will begin assessing interest charges on 
an unpaid bill starting on the 31st day following the day on which the 
billing was sent. A fee received by HUD, even if not processed, will 
suffice to stay the accrual of interest. Interest will be at the rate 
prescribed in section 3717 of title 31 U.S.C. and will accrue from the 
date of the billing.

[[Page 92]]

    (b) Charge for unsuccessful search. Ordinarily no charge for search 
time will be assessed when the records requested are not found or when 
the records located are withheld as exempt. However, if the requester 
has been notified of the estimated cost of the search time and has been 
advised specifically that the requested records may not exist or may be 
withheld as exempt, fees shall be charged.
    (c) Use of Debt Collection Act of 1982. When a requester has failed 
to pay a fee charged in a timely fashion (i.e., within 30 days of the 
date of the billing), HUD may, under the authority of the Debt 
Collection Act and part 17, subpart C of this title, use consumer 
reporting agencies and collection agencies, where appropriate, to 
recover the indebtedness owed the Department.

[53 FR 37552, Sept. 27, 1988]



Sec. 2002.15  Advance payments.

    (a) HUD may not require a requester to make an advance payment, 
i.e., payment before work is commenced or continued on a request, 
unless:
    (1) HUD estimates or determines that allowable charges that a 
requester may be required to pay are likely to exceed $250. Then, HUD 
will notify the requester of the likely cost and obtain satisfactory 
assurance of full payment where the requester has a history of prompt 
payment of FOIA fees, or require an advance payment of an amount up to 
the full estimated charges in the case of requesters with no history of 
payment; or
    (2) Where a requester has previously failed to pay a fee charged in 
a timely fashion (i.e., within 30 days of the date of the billing), HUD 
may require the requester to pay the full amount owed plus any 
applicable interest as provided by Sec. 2002.13(a) or demonstrate that 
he has, in fact, paid the fees, and to make an advance payment of the 
full amount of the estimated fee before HUD begins to process a new 
request or a pending request from that requester.
    (b) When HUD acts under paragraph (a)(1) or (a)(2) of this section, 
the administrative time limits prescribed in subsection (a)(6) of the 
FOIA (i.e., 20 working days from receipt of initial requests and 20 
working days from receipt of appeals from initial denial, plus 
permissible extensions of these time limits) will begin only after HUD 
has received fee payments described in paragraph (a) of this section.
    (c) Where it is anticipated that either the duplication fee 
individually, the search fee individually, or a combination of the two 
exceeds $25.00 over and above the free search time and duplication 
costs, where applicable, and the requesting party has not indicated in 
advance a willingness to pay so high a fee, the requesting party shall 
be promptly informed of the amount of the anticipated fee or such 
portion thereof as can readily be estimated. The notification shall 
offer the requesting party the opportunity to confer with agency 
representatives for the purpose of reformulating the request so as to 
meet that party's needs at a reduced cost.

[53 FR 37552, Sept. 27, 1988, as amended at 67 FR 47217, July 17, 2002]



Sec. 2002.17  Time limitations.

    (a) Upon receipt of a request for records, the appropriate Assistant 
Inspector General or an appointed designee will determine within twenty 
(20) working days whether to grant the request. The Assistant Inspector 
General or designee will notify the requestor immediately in writing of 
the determination and the right of the person to request a review by the 
Inspector General of an adverse determination.
    (b) The time of receipt for processing a request for records 
purposes is the time it is received by the appropriate office for 
review. If a request is misdirected by the requester, the Office of 
Inspector General or Department official who receives the request will 
promptly refer it to the appropriate office and will advise the 
requester about the delayed time of receipt.
    (c) A determination with respect to a request for review by the 
Inspector General of HUD under Sec. 2002.25 will be made within 20 
working days after receipt and will be communicated immediately to the 
person requesting review.
    (d) If the Office of Inspector General grants the request for 
records, the records will be made available promptly to the requester.

[[Page 93]]

    (e) In unusual circumstances as specified in this paragraph, and 
subject to the concurrence of any Assistant Inspector General or 
appointed designee, the time limits prescribed in either paragraph (a) 
or (c) of this section may be extended. Any extension will be in writing 
to the requester and will include reasons for the extension and the date 
on which the disposition of the request will be sent. No extension will 
be for more than ten working days. As used in this paragraph, unusual 
circumstances means (but only to the extent necessary to the proper 
processing of the particular request) that there is a need:
    (1) To search for and collect the requested records from field 
facilities or other establishments that are separate from the office 
processing the request; or
    (2) To search for, collect, and appropriately examine a voluminous 
amount of separate and distinct records which are demanded in a single 
request; or
    (3) For consultation, which shall be conducted with all practicable 
speed, with another agency having a substantial interest in the 
determination of the request or among two or more offices of the Office 
of Inspector General having a substantial interest in the subject matter 
of the request.

[49 FR 11165, Mar. 26, 1984. Redesignated and amended at 53 FR 37550, 
37552, Sept. 27, 1988; 57 FR 2227; Jan. 21, 1992; 59 FR 14097, Mar. 25, 
1994; 67 FR 47217, July 17, 2002]



Sec. 2002.19  Authority to release records or copies.

    Any Assistant Inspector General or an appointed designee is 
authorized to release any record (or copy) pertaining to activities for 
which he or she has primary responsibility, unless disclosure is clearly 
inappropriate under this part. No authorized person may release records 
for which another officer has primary responsibility without the consent 
of the officer or his or her designee.

[49 FR 11165, Mar. 26, 1984. Redesignated at 53 FR 37550, Sept. 27, 
1988, as amended at 59 FR 14098, Mar. 25, 1994]



Sec. 2002.21  Authority to deny requests for records and form of denial.

    (a) An Assistant Inspector General may deny a request for a record. 
Any denial will:
    (1) Be in writing;
    (2) State simply the reasons for the denial;
    (3) State that review of the denial by the Inspector General of HUD 
may be requested;
    (4) Set forth the steps for obtaining review consistent with 
Sec. 2002.25; and
    (5) Be signed by the Assistant Inspector General responsible for the 
denial.
    (b) The classes of records authorized to be exempted from disclosure 
by the Freedom of Information Act (5 U.S.C. 552) are those which concern 
matters that are:
    (1)(i) Specifically authorized under criteria established by an 
executive order to be kept secret in the interest of national defense or 
foreign policy; and
    (ii) Are in fact properly classified under the cited executive 
order;
    (2) Related solely to the internal personnel rules and practices of 
HUD;
    (3) Specifically exempted from disclosure by statute (other than 
section 552b of title 5), provided that the statute either:
    (i) Requires that the matters be withheld from the public in a 
manner that leaves no discretion on the issue; or
    (ii) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld;
    (4) Trade secrets and commercial or financial information that are 
obtained from a person and are privileged or confidential;
    (5) Inter-agency or intra-agency memoranda or letters that would not 
be available by law to a party other than an agency in litigation with 
HUD;
    (6) Personnel and medical files and similar files the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (7) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information:
    (i) Could reasonably be expected to interfere with enforcement 
proceedings;

[[Page 94]]

    (ii) Would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a state, local, or foreign agency or 
authority, or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information compiled 
by a criminal law enforcement authority in the course of a criminal 
investigation or by an agency conducting a lawful national security 
intelligence investigation, information furnished by a confidential 
source;
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if the disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual;
    (8) Contained in or related to examination, operating, or condition 
reports prepared by, on behalf of, or for the use of an agency 
responsible for the regulation or supervision of financial institutions; 
or
    (9) Geological and geophysical information and data, including maps, 
concerning wells.
    (c) With regard to a request for commercial or financial 
information, predisclosure notification to business submitters is 
required by Executive Order 12600 (3 CFR, 1987 Comp., p. 235) to afford 
the business submitter an opportunity to object to disclosure of the 
requested information.
    (d) Any reasonably segregable portion of a record shall be provided 
to any person requesting the record, after deletion of the portions that 
are exempt under this section.

[57 FR 2228, Jan. 21, 1992, as amended at 59 FR 14098, Mar. 25, 1994]



Sec. 2002.23  Effect of denial of request.

    Denial of a request shall terminate the authority of the Assistant 
Inspector General or his or her designee to release or disclose the 
requested record, which thereafter may not be made available except with 
express authorization of the Inspector General of HUD.

[49 FR 11165, Mar. 26, 1984. Redesignated at 53 FR 37550, Sept. 27, 
1988]



Sec. 2002.25  Administrative review.

    (a) Review is available only from a written denial of a request for 
a record issued under Sec. 2002.21 and only if a written request for 
review is filed within 30 days after issuance of the written denial.
    (b) A review may be initiated by mailing a request for review to the 
Inspector General of HUD, Department of Housing and Urban Development, 
451 Seventh Street, SW., Room 8256, Washington, DC 20410. Each request 
for review must contain the following:
    (1) A copy of the request, if in writing;
    (2) A copy of the written denial issued under Sec. 2002.21; and
    (3) A statement of the circumstances, reasons, or arguments advanced 
in support of disclosure of the original request for the record.

In order to enable the Inspector General of HUD to comply with the time 
limitations set forth in Sec. 2002.17, both the envelope containing the 
request for review and the letter itself should clearly indicate that 
the subject is a Freedom of Information Act request for review.
    (c) Review will be made promptly by the Inspector General of HUD on 
the basis of the written record described in paragraph (b) of this 
section. Before a denial, the Inspector General will obtain the 
concurrence of legal counsel for the Office of Inspector General.
    (d) The time of receipt for processing of a request for review 
purposes is the time it is received by the Inspector General of HUD. If 
a request is misdirected by the requester and is received by one other 
than the Inspector General, the Office of Inspector General or 
Department official who receives the request will forward it promptly to 
the Inspector General and will advise the requester about the delayed 
time of receipt.
    (e) The decision after review will be in writing, will constitute 
final agency

[[Page 95]]

action on the request, and, if the denial of the request for records is 
in full or in part upheld, the Inspector General will notify the person 
making the request of his or her right to seek judicial review under 5 
U.S.C. 552(a)(4).

[49 FR 11165, Mar. 26, 1984. Redesignated and amended at 53 FR 37550, 
37552, Sept. 27, 1988]



PART 2003--IMPLEMENTATION OF THE PRIVACY ACT OF 1974--Table of Contents




Sec.
2003.1  Scope of the part and applicability of other HUD regulations.
2003.2  Definitions.
2003.3  Requests for records.
2003.4  Officials to receive requests and inquiries.
2003.5  Initial denial of access to records.
2003.6  Disclosure of a record to a person other than the individual to 
          whom it pertains.
2003.7  Authority to make law enforcement-related requests for records 
          maintained by other agencies.
2003.8  General exemptions.
2003.9  Specific exemptions.

    Authority: 5 U.S.C. 552a; 5 U.S.C. App. 3 (Inspector General Act of 
1978); 42 U.S.C. 3535(d).

    Source: 57 FR 62142, Dec. 29, 1992, unless otherwise noted.



Sec. 2003.1  Scope of the part and applicability of other HUD regulations.

    (a) General. This part contains the regulations of the Office of 
Inspector General (``OIG'') implementing the Privacy Act of 1974 (5 
U.S.C. 552a). The regulations inform the public that the Inspector 
General has the responsibility for carrying out the requirements of the 
Privacy Act and for issuing internal OIG orders and directives in 
connection with the Privacy Act. These regulations apply to all records 
that are contained in systems of records maintained by the OIG and that 
are retrieved by an individuals's name or personal identifier.
    (b) Applicability of part 16. In addition to these regulations, the 
provisions of 24 CFR part 16 apply to the OIG, except that appendix A to 
part 16 is not applicable. The provisions of this part shall govern in 
the event of any conflict with the provisions of part 16.



Sec. 2003.2  Definitions.

    For purposes of this part:
    Department means the OIG, except that in the context of 
Secs. 16.1(d); 16.11(b) (1), (3), and (4); and 16.12(e), when those 
sections are incorporated by reference, the term means the Department of 
Housing and Urban Development.
    Privacy Act Officer means an Assistant Inspector General.
    Privacy Appeals Officer means the Inspector General.

[59 FR 14098, Mar. 25, 1994]



Sec. 2003.3  Requests for records.

    (a) A request from an individual for an OIG record about that 
individual which is not contained in an OIG system of records will be 
considered to be a Freedom of Information Act (FOIA) request and will be 
processed under 24 CFR part 2002.
    (b) A request from an individual for an OIG record about that 
individual which is contained in an OIG system of records will be 
processed under both the Privacy Act and the FOIA in order to ensure 
maximum access under both statutes. This practice will be undertaken 
regardless of how an individual characterizes the request.
    (1) The procedures for inquiries and requirements for access to 
records under the Privacy Act are more specifically set forth in 24 CFR 
part 16, except that appendix A to part 16 does not apply to the OIG.
    (2) An individual will not be required to state a reason or 
otherwise justify his or her request for access to a record.



Sec. 2003.4  Officials to receive requests and inquiries.

    Officials to receive requests and inquiries for access to, or 
correction of, records in OIG systems of records are the Privacy Act 
Officers described in Sec. 2003.2 of this part. Written requests may be 
addressed to the appropriate Privacy Act Officer at: Office of Inspector 
General, Department of Housing and Urban Development, Washington, DC 
20410.

[57 FR 62142, Dec. 29, 1992, as amended at 59 FR 14098, Mar. 25, 1994]

[[Page 96]]



Sec. 2003.5  Initial denial of access to records.

    (a) Access by an individual to a record about that individual which 
is contained in an OIG system of records will be denied only upon a 
determination by the Privacy Act Officer that:
    (1) The record was compiled in reasonable anticipation of a civil 
action or proceeding; or the record is subject to a Privacy Act 
exemption under Sec. 2003.8 or Sec. 2003.9 of this part; and
    (2) The record is also subject to a FOIA exemption under 
Sec. 2002.21(b) of this chapter.
    (b) If a request is partially denied, any portions of the responsive 
record that can be reasonably segregated will be provided to the 
individual after deletion of those portions determined to be exempt.
    (c) The provisions of 24 CFR 16.6(b) and 16.7, concerning 
notification of an initial denial of access and administrative review of 
the initial denial, apply to the OIG, except that:
    (1) The final determination of the Inspector General, as Privacy 
Appeals Officer for the OIG, will be in writing and will constitute 
final action of the Department on a request for access to a record in an 
OIG system of records; and
    (2) If the denial of the request is in whole or in part upheld, the 
final determination of the Inspector General will include notice of the 
right to judicial review.



Sec. 2003.6  Disclosure of a record to a person other than the individual to whom it pertains.

    (a) The OIG may disclose an individual's record to a person other 
than the individual to whom the record pertains in the following 
instances:
    (1) Upon written request by the individual, including authorization 
under 24 CFR 16.5(e);
    (2) With the prior written consent of the individual;
    (3) To a parent or legal guardian of the individual under 5 U.S.C. 
552a(h); or
    (4) When permitted by the provisions of 5 U.S.C. 552a(b) (1) through 
(12).
    (b) [Reserved]



Sec. 2003.7  Authority to make law enforcement-related requests for records maintained by other agencies.

    (a) The Inspector General is authorized by written delegation from 
the Secretary of HUD and under the Inspector General Act to make written 
requests under 5 U.S.C. 552a(b)(7) for transfer of records maintained by 
other agencies which are necessary to carry out an authorized law 
enforcement activity under the Inspector General Act.
    (b) The Inspector General delegates the authority under paragraph 
(a) of this section to the following OIG officials:
    (1) Deputy Inspector General;
    (2) Assistant Inspector General for Audit;
    (3) Assistant Inspector General for Investigation; and
    (4) Assistant Inspector General for Management and Policy.
    (c) The officials listed in paragraph (b) of this section may not 
redelegate the authority described in paragraph (a) of this section.



Sec. 2003.8  General exemptions.

    (a) The systems of records entitled ``Investigative Files of the 
Office of Inspector General,'' ``Hotline Complaint Files of the Office 
of Inspector General,'' ``Name Indices System of the Office of Inspector 
General,'' and ``AutoInvestigation of the Office of Inspector General'' 
consist, in part, of information compiled by the OIG for the purpose of 
criminal law enforcement investigations. Therefore, to the extent that 
information in these systems falls within the scope of exemption (j)(2) 
of the Privacy Act, 5 U.S.C. 552a(j)(2), these systems of records are 
exempt from the requirements of the following subsections of the Privacy 
Act, for the reasons stated in paragraphs (a)(1) through (6) of this 
section.
    (1) From subsection (c)(3), because release of an accounting of 
disclosures to an individual who is the subject of an investigation 
could reveal the nature and scope of the investigation and could result 
in the altering or destruction of evidence, improper influencing of 
witnesses, and other evasive actions that could impede or compromise the 
investigation.

[[Page 97]]

    (2) From subsection (d)(1), because release of investigative records 
to an individual who is the subject of an investigation could interfere 
with pending or prospective law enforcement proceedings, constitute an 
unwarranted invasion of the personal privacy of third parties, reveal 
the identity of confidential sources, or reveal sensitive investigative 
techniques and procedures.
    (3) From subsection (d)(2), because amendment or correction of 
investigative records could interfere with pending or prospective law 
enforcement proceedings, or could impose an impossible administrative 
and investigative burden by requiring the OIG to continuously retrograde 
its investigations attempting to resolve questions of accuracy, 
relevance, timeliness and completeness.
    (4) From subsection (e)(1), because it is often impossible to 
determine relevance or necessity of information in the early stages of 
an investigation. The value of such information is a question of 
judgment and timing; what appears relevant and necessary when collected 
may ultimately be evaluated and viewed as irrelevant and unnecessary to 
an investigation. In addition, the OIG may obtain information concerning 
the violation of laws other than those within the scope of its 
jurisdiction. In the interest of effective law enforcement, the OIG 
should retain this information because it may aid in establishing 
patterns of unlawful activity and provide leads for other law 
enforcement agencies. Further, in obtaining evidence during an 
investigation, information may be provided to the OIG which relates to 
matters incidental to the main purpose of the investigation but which 
may be pertinent to the investigative jurisdiction of another agency. 
Such information cannot readily be identified.
    (5) From subsection (e)(2), because in a law enforcement 
investigation it is usually counterproductive to collect information to 
the greatest extent practicable directly from the subject thereof. It is 
not always feasible to rely upon the subject of an investigation as a 
source for information which may implicate him or her in illegal 
activities. In addition, collecting information directly from the 
subject could seriously compromise an investigation by prematurely 
revealing its nature and scope, or could provide the subject with an 
opportunity to conceal criminal activities, or intimidate potential 
sources, in order to avoid apprehension.
    (6) From subsection (e)(3), because providing such notice to the 
subject of an investigation, or to other individual sources, could 
seriously compromise the investigation by prematurely revealing its 
nature and scope, or could inhibit cooperation, permit the subject to 
evade apprehension, or cause interference with undercover activities.
    (b) [Reserved]

[57 FR 62142, Dec. 29, 1992, as amended at 65 FR 50904, Aug. 21, 2000]



Sec. 2003.9  Specific exemptions.

    (a) The systems of records entitled ``Investigative Files of the 
Office of Inspector General,'' ``Hotline Complaint Files of the Office 
of Inspector General,'' ``Name Indices System of the Office of Inspector 
General,'' and ``AutoInvestigation of the Office of Inspector General'' 
consist, in part, of investigatory material compiled by the OIG for law 
enforcement purposes. Therefore, to the extent that information in these 
systems falls within the coverage of exemption (k)(2) of the Privacy 
Act, 5 U.S.C. 552a(k)(2), these systems of records are exempt from the 
requirements of the following subsections of the Privacy Act, for the 
reasons stated in paragraphs (a) (1) through (4) of this section.
    (1) From subsection (c)(3), because release of an accounting of 
disclosures to an individual who is the subject of an investigation 
could reveal the nature and scope of the investigation and could result 
in the altering or destruction of evidence, improper influencing of 
witnesses, and other evasive actions that could impede or compromise the 
investigation.
    (2) From subsection (d)(1), because release of investigative records 
to an individual who is the subject of an investigation could interfere 
with pending or prospective law enforcement proceedings, constitute an 
unwarranted invasion of the personal privacy of third parties, reveal 
the identity of

[[Page 98]]

confidential sources, or reveal sensitive investigative techniques and 
procedures.
    (3) From subsection (d)(2), because amendment or correction of 
investigative records could interfere with pending or prospective law 
enforcement proceedings, or could impose an impossible administrative 
and investigative burden by requiring the OIG to continuously retrograde 
its investigations attempting to resolve questions of accuracy, 
relevance, timeliness and completeness.
    (4) From subsection (e)(1), because it is often impossible to 
determine relevance or necessity of information in the early stages of 
an investigation. The value of such information is a question of 
judgment and timing; what appears relevant and necessary when collected 
may ultimately be evaluated and viewed as irrelevant and unnecessary to 
an investigation. In addition, the OIG may obtain information concerning 
the violation of laws other than those within the scope of its 
jurisdiction. In the interest of effective law enforcement, the OIG 
should retain this information because it may aid in establishing 
patterns of unlawful activity and provide leads for other law 
enforcement agencies. Further, in obtaining evidence during an 
investigation, information may be provided to the OIG which relates to 
matters incidental to the main purpose of the investigation but which 
may be pertinent to the investigative jurisdiction of another agency. 
Such information cannot readily be identified.
    (b) The systems of records entitled ``Investigative Files of the 
Office of Inspector General,'' ``Hotline Complaint Files of the Office 
of Inspector General,'' ``Name Indices System of the Office of Inspector 
General,'' and ``Autoinvestigation of the Office of Inspector General'' 
consist in part of investigatory material compiled by the OIG for the 
purpose of determining suitability, eligibility, or qualifications for 
Federal civilian employment or Federal contracts, the release of which 
would reveal the identity of a source who furnished information to the 
Government under an express promise that the identity of the source 
would be held in confidence. Therefore, to the extent that information 
in these systems fall within the coverage of exemption (k)(5) of the 
Privacy Act, 5 U.S.C. 552a(k)(5), these systems of records are exempt 
from the requirements of subsection (d)(1), because release would reveal 
the identity of a source who furnished information to the Government 
under an express promise of confidentiality. Revealing the identity of a 
confidential source could impede future cooperation by sources, and 
could result in harassment or harm to such sources.

[57 FR 62142, Dec. 29, 1992, as amended at 65 FR 50904, Aug. 21, 2000]



PART 2004--SUBPOENAS AND PRODUCTION IN RESPONSE TO SUBPOENAS OR DEMANDS OF COURTS OR OTHER AUTHORITIES--Table of Contents




                     Subpart A--General Requirements

Sec.
2004.1  Scope and purpose.
2004.2  Applicability.
2004.3  Definitions.

            Subpart B--Office of Inspector General Subpoenas

2004.10  Service of an Office of Inspector General subpoena.

      Subpart C--Requests for Testimony and Production of Documents

2004.20  General prohibition.
2004.21  Factors OIG will consider.
2004.22  Filing requirements for demands or requests for documents or 
          testimony.
2004.23  Service of subpoenas or requests.
2004.24  Processing demands or requests.
2004.25  Final determination.
2004.26  Restrictions that apply to testimony.
2004.27  Restrictions that apply to released records.
2004.28  Procedure in the event of an adverse ruling.
2004.29  Fees.

    Authority: Inspector General Act of 1978, as amended (5 U.S.C. app.) 
and 42 U.S.C. 3535(d).

    Source: 68 FR 3366, Jan. 23, 2003, unless otherwise noted.

[[Page 99]]



                     Subpart A--General Requirements



Sec. 2004.1  Scope and purpose.

    (a) This part sets forth the policy for service of a subpoena issued 
by the Office of Inspector General (OIG), and policies and procedures 
that you must follow when you submit a demand or request to an employee 
of the OIG to produce official records and information, or provide 
testimony relating to official information, in connection with a legal 
proceeding. You must comply with these requirements when you request the 
release or disclosure of official records and information.
    (b) The OIG intends these provisions to:
    (1) Promote economy and efficiency in its programs and operations;
    (2) Minimize the possibility of involving OIG in controversial 
issues not related to OIG's functions;
    (3) Maintain OIG's impartiality among private litigants where OIG is 
not a named party; and
    (4) Protect sensitive, confidential information and the deliberative 
processes of OIG.
    (c) In providing for these requirements, OIG does not waive the 
sovereign immunity of the United States.
    (d) This part provides guidance for the internal operations of OIG. 
This part does not create any right or benefit, substantive or 
procedural, that a party may rely upon in any legal proceeding against 
the United States.



Sec. 2004.2  Applicability.

    This subpart applies to demands and requests to employees for 
factual or expert testimony relating to official information, or for 
production of official records or information, in legal proceedings in 
which HUD or OIG is not a named party. However, this subpart does not 
apply to:
    (a) Demands upon or requests for an OIG employee to testify as to 
facts or events that are unrelated to his or her official duties or that 
are unrelated to the functions of OIG;
    (b) Requests for the release of records under the Freedom of 
Information Act, 5 U.S.C. 552, or the Privacy Act, 5 U.S.C. 552a; and
    (c) Congressional demands and Congressional requests for testimony 
or records.



Sec. 2004.3  Definitions.

    Counsel means the Counsel to the Inspector General.
    Demand means a subpoena, or an order or other command of a court or 
other competent authority, for the production, disclosure, or release of 
records or for the appearance and testimony of an OIG employee that is 
issued in a legal proceeding.
    Legal proceeding means any matter before a court of law, 
administrative board or tribunal, commission, administrative law judge, 
hearing officer, or other body that conducts a legal or administrative 
proceeding. Legal proceeding includes all phases of litigation.
    OIG means the Office of Inspector General, U.S. Department of 
Housing and Urban Development.
    OIG employee or employee means:
    (1) Any current or former officer or employee of OIG;
    (2) Any other individual hired through contractual agreement by or 
on behalf of OIG or who has performed or is performing services under 
such an agreement for OIG; and
    (3) Any individual who served or is serving in any consulting or 
advisory capacity to OIG, whether formal or informal.
    Records or official records or information means:
    (1) All documents and materials that are OIG agency records under 
the Freedom of Information Act, 5 U.S.C. 552;
    (2) All other documents and materials contained in OIG files; and
    (3) All other information or materials acquired by an OIG employee 
in the performance of his or her official duties or because of his or 
her official status.
    Request means any informal request, by whatever method, for the 
production of records and information or for testimony that has not been 
ordered by a court or other competent authority.
    Testimony means any written or oral statements, including 
depositions, answers to interrogatories, affidavits, declarations, 
recorded interviews, and

[[Page 100]]

statements made by an individual in connection with a legal proceeding.



            Subpart B--Office of Inspector General Subpoenas



Sec. 2004.10  Service of an Office of Inspector General subpoena.

    Service of a subpoena issued by OIG may be accomplished as follows:
    (a) Personal service. Service may be made by delivering the subpoena 
to the person to whom it is addressed. If the subpoena is addressed to a 
corporation or other business entity, it may be served upon an employee 
of the corporation or entity. Service made to an employee, agent, or 
legal representative of the addressee shall constitute service upon the 
addressee.
    (b) Service by mail. Service may also be made by mailing the 
subpoena, certified mail--return receipt requested, to the addressee at 
his or her last known business or personal address.



      Subpart C--Requests for Testimony and Production of Documents



Sec. 2004.20  General prohibition.

    No employee may produce official records and information or provide 
any testimony relating to official information in response to a demand 
or request without the prior, written approval of the Inspector General 
or the Counsel.



Sec. 2004.21  Factors OIG will consider.

    The Counsel or Inspector General, in their discretion, may grant an 
employee permission to testify on matters relating to official 
information, or produce official records and information, in response to 
a demand or request. Among the relevant factors that the Inspector 
General or the Counsel may consider in making this decision are whether:
    (a) The purposes of this part are met;
    (b) OIG has an interest in the decision that may be rendered in the 
legal proceeding;
    (c) Allowing such testimony or production of records would assist or 
hinder OIG in performing its statutory duties or use OIG resources where 
responding to the request will interfere with the ability of OIG 
employees to do their work;
    (d) The records or testimony can be obtained from other sources;
    (e) The demand or request is unduly burdensome or otherwise 
inappropriate under the applicable rules of discovery or the rules of 
procedure governing the case or matter in which the demand or request 
arose;
    (f) Disclosure would violate or be inconsistent with a statute, 
Executive Order, or regulation;
    (g) Disclosure would reveal confidential or privileged information, 
trade secrets, or similar, confidential commercial, or financial 
information;
    (h) Disclosure would impede or interfere with an ongoing law 
enforcement investigation or proceedings, or compromise constitutional 
rights;
    (i) Disclosure would result in OIG appearing to favor one litigant 
over another;
    (j) Disclosure relates to documents that were produced by another 
agency;
    (k) The demand or request is in conformance with all other 
applicable rules;
    (l) The demand or request is sufficiently specific to be answered; 
and
    (m) For any other good cause.



Sec. 2004.22  Filing requirements for demands or requests for documents or testimony.

    You must comply with the following requirements whenever you issue 
demands or requests to an OIG employee for official records and 
information or testimony.
    (a) Your request must be in writing and must be submitted to the 
Counsel. If you serve a subpoena on OIG or on an OIG employee before 
submitting a written request and receiving a final determination from 
the Counsel, OIG will oppose the subpoena on grounds that your request 
was not submitted in accordance with this subpart.
    (b) Your written request must contain the following information:
    (1) The caption of the legal proceeding, docket number, and name and 
address of the court or other authority involved;

[[Page 101]]

    (2) A copy of the complaint or equivalent document setting forth the 
assertions in the case and any other pleading or document sufficient to 
show relevance;
    (3) A list of categories of records sought, a detailed description 
of how the information sought is relevant to the issues in the legal 
proceeding, and a specific description of the substance of the testimony 
or records sought;
    (4) A statement as to how the need for the information outweighs the 
need to maintain any confidentiality of the information and outweighs 
the burden on OIG to produce the records or provide testimony;
    (5) A statement indicating that the information sought is not 
available from another source, from other persons or entities, or from 
the testimony of someone other than an OIG employee, such as a retained 
expert;
    (6) If testimony is requested, the intended use of the testimony, a 
general summary of the desired testimony, and a showing that no document 
could be provided and used in lieu of testimony;
    (7) A description of all prior decisions, orders, or pending motions 
in the case that bear upon the relevance of the requested records or 
testimony;
    (8) The name, address, and telephone number of counsel to each party 
in the case; and
    (9) An estimate of the amount of time that the requester and other 
parties will require with each OIG employee for time spent by the 
employee to prepare for testimony, in travel, and for attendance in the 
legal proceeding.
    (c) The OIG reserves the right to require additional information to 
complete your request where appropriate.
    (d) Your request should be submitted at least 30 days before the 
date that records or testimony are required. Requests submitted less 
than 30 days before records or testimony are required must be 
accompanied by a written explanation stating the reasons for the late 
request and the reasons for expedited processing.
    (e) Failure to cooperate in good faith to enable the Counsel to make 
an informed decision may serve as the basis for a determination not to 
comply with your request.



Sec. 2004.23  Service of subpoenas or requests.

    Subpoenas or requests for official records or information or 
testimony must be served on the Counsel to the Inspector General, Office 
of Inspector General, U.S. Department of Housing and Urban Development, 
451 Seventh Street, SW, Room 8260, Washington, DC 20410-4500.



Sec. 2004.24  Processing demands or requests.

    (a) After service of a demand or request to testify, the Counsel 
will review the demand or request and, in accordance with the provisions 
of this subpart, determine whether, or under what conditions, to 
authorize the employee to testify on matters relating to official 
information and/or to produce official records and information.
    (b) The OIG will process requests in the order in which they are 
received. Absent exigent or unusual circumstances, OIG will respond 
within 30 days from the date that we receive all information necessary 
to the evaluation of the demand or request. The time for response will 
depend upon the scope of the request.
    (c) The Counsel may grant a waiver of any procedure described in 
this subpart where a waiver is considered necessary to promote a 
significant interest of OIG, HUD, and the United States, or for other 
good cause.



Sec. 2004.25  Final determination.

    The Counsel makes the final determination on demands and requests to 
employees for production of official records and information or 
testimony. All final determinations are within the sole discretion of 
the Counsel. The Counsel will notify the requester of the final 
determination, the reasons for the grant or denial of the demand or 
request, and any conditions that the Counsel may impose on the release 
of records or information, or on the testimony of an OIG employee.



Sec. 2004.26  Restrictions that apply to testimony.

    (a) The Counsel may impose conditions or restrictions on the 
testimony of OIG employees including, for example, limiting the areas of 
testimony or

[[Page 102]]

requiring the requester and other parties to the legal proceeding to 
agree that the transcript of the testimony will be kept under seal or 
will only be used or made available in the particular legal proceeding 
for which testimony was requested. The Counsel may also require a copy 
of the transcript of testimony at the requester's expense.
    (b) The OIG may offer the employee's written declaration in lieu of 
testimony.
    (c) If authorized to testify pursuant to this part, an employee may 
testify as to facts within his or her personal knowledge, but, unless 
specifically authorized to do so by the Counsel, the employee shall not:
    (1) Disclose confidential or privileged information;
    (2) Testify as to facts when the Counsel determines such testimony 
would not be in the best interest of OIG, HUD and the United States; or
    (3) Testify as an expert or opinion witness with regard to any 
matter arising out of the employee's official duties or the functions of 
OIG. This provision does not apply to requests from the United States 
for expert or opinion testimony.



Sec. 2004.27  Restrictions that apply to released records.

    (a) The Counsel may impose conditions or restrictions on the release 
of official records and information, including the requirement that 
parties to the proceeding obtain a protective order or execute a 
confidentiality agreement to limit access and any further disclosure. 
The terms of the protective order or of a confidentiality agreement must 
be acceptable to the Counsel. In cases where protective orders or 
confidentiality agreements have already been executed, OIG may condition 
the release of official records and information on an amendment to the 
existing protective order or confidentiality agreement.
    (b) If the Counsel so determines, original OIG records may be 
presented for examination in response to a demand or request, but they 
are not to be presented as evidence or otherwise used in a manner by 
which they could lose their identity as official OIG records, nor are 
they to be marked or altered. In lieu of the original records, certified 
copies will be presented for evidentiary purposes.



Sec. 2004.28  Procedure in the event of an adverse ruling.

    If the Counsel declines to approve a demand for records or testimony 
and the court or other authority rules that the demand must be complied 
with irrespective of the instructions from the OIG not to produce the 
material or disclose the information sought, the employee or former 
employee upon whom the demand has been made shall respectfully decline 
to comply with the demand, citing United States ex rel. Touhy v. Ragen, 
340 U.S. 462.



Sec. 2004.29  Fees.

    (a) Generally. The Counsel may condition the production of records 
or appearance for testimony upon advance payment of a reasonable 
estimate of the costs to OIG.
    (b) Fees for records. Fees for producing records will include fees 
for searching, reviewing, and duplicating records, costs of attorney 
time spent in reviewing the demand or request, and expenses generated by 
materials and equipment used to search for, produce, and copy the 
responsive information. Costs for employee time will be calculated on 
the basis of the hourly pay of the employee (including all pay, 
allowance, and benefits). Fees for duplication will be the same as those 
charged by OIG in its Freedom of Information Act Regulations at 24 CFR 
part 2002.
    (c) Witness fees. Fees for attendance by a witness will include 
fees, expenses, and allowances prescribed by the court's rules. If no 
such fees are prescribed, witness fees will be determined based upon the 
rule of the federal district court closest to the location where the 
witness will appear. Such fees will include cost of time spent by the 
witness to prepare for testimony, in travel, and for attendance in the 
legal proceeding.
    (d) Payment of fees. You must pay any applicable witness fees for 
current OIG

[[Page 103]]

employees and any records certification fees by submitting to the 
Counsel a check or money order for the appropriate amount made payable 
to the Treasury of the United States. In the case of testimony by former 
OIG employees, you must pay applicable fees directly to the former 
employee in accordance with applicable statutes.
    (e) Waiver or reduction of fees. The Counsel, in his or her sole 
discretion, may, upon a showing of reasonable cause, waive or reduce any 
fees in connection with the testimony or production of records. 
Additionally, fees will not be assessed if the total charge would be 
$10.00 or less.

[[Page 105]]



 CHAPTER XX--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING 
        COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT




  --------------------------------------------------------------------

Part                                                                Page
3280            Manufactured home construction and safety 
                    standards...............................         107
3282            Manufactured home procedural and enforcement 
                    regulations.............................         198
3284            Manufactured housing program fee............         249
3500            Real Estate Settlement Procedures Act.......         249
3800            Investigations in consumer regulatory 
                    programs................................         308

[[Page 107]]



PART 3280--MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS--Table of Contents




                           Subpart A--General

Sec.
3280.1  Scope.
3280.2  Definitions.
3280.3  Manufactured home procedural and enforcement regulations and 
          consumer manual requirements.
3280.4  Incorporation by reference.
3280.5  Data plate.
3280.6  Serial number.
3280.7  Excluded structures.
3280.8  Waivers.
3280.9  Interpretative bulletins.
3280.10  Use of alternative construction.
3280.11  Certification label.

                   Subpart B--Planning Considerations

3280.101  Scope.
3280.102  Definitions.
3280.103  Light and ventilation.
3280.104  Ceiling heights.
3280.105  Exit facilities; exterior doors.
3280.106  Exit facilities; egress windows and devices.
3280.107  Interior privacy.
3280.108  Interior passage.
3280.109  Room requirements.
3280.110  Minimum room dimensions.
3280.111  Toilet compartments.
3280.112  Hallways.
3280.113  Glass and glazed openings.

                         Subpart C--Fire Safety

3280.201  Scope.
3280.202  Definitions.
3280.203  Flame spread limitations and fire protection requirements.
3280.204  Kitchen cabinet protection.
3280.205  Carpeting.
3280.206  Firestopping.
3280.207  Requirements for foam plastic thermal insulating materials.
3280.208  Smoke alarm requirements.
3280.209  Fire testing.

           Subpart D--Body and Frame Construction Requirements

3280.301  Scope.
3280.302  Definitions.
3280.303  General requirements.
3280.304  Materials.
3280.305  Structural design requirements.
3280.306  Windstorm protection.
3280.307  Resistance to elements and use.
3280.308  Formaldehyde emission controls for certain wood products.
3280.309  Health Notice on formaldehyde emissions.

                           Subpart E--Testing

3280.401  Structural load tests.
3280.402  Test procedure for roof trusses.
3280.403  Standard for windows and sliding glass doors used in 
          manufactured homes.
3280.404  Standard for egress windows and devices for use in 
          manufactured homes.
3280.405  Standard for swinging exterior passage doors for use in 
          manufactured homes.
3280.406  Air chamber test method for certification and qualification of 
          formaldehyde emission levels.

                      Subpart F--Thermal Protection

3280.501  Scope.
3280.502  Definitions.
3280.503  Materials.
3280.504  Condensation control and installation of vapor retarders.
3280.505  Air infiltration.
3280.506  Heat loss/heat gain.
3280.507  Comfort heat gain.
3280.508  Heat loss, heat gain and cooling load calculations.
3280.509  Criteria in absence of specific data.
3280.510  Heat loss certificate.
3280.511  Comfort cooling certificate and information.

                       Subpart G--Plumbing Systems

3280.601  Scope.
3280.602  Definitions.
3280.603  General requirements.
3280.604  Materials.
3280.605  Joints and connections.
3280.606  Traps and cleanouts.
3280.607  Plumbing fixtures.
3280.608  Hangers and supports.
3280.609  Water distribution systems.
3280.610  Drainage systems.
3280.611  Vents and venting.
3280.612  Tests and inspection.

          Subpart H--Heating, Cooling and Fuel Burning Systems

3280.701  Scope.
3280.702  Definitions.
3280.703  Minimum standards.
3280.704  Fuel supply systems.
3280.705  Gas piping systems.
3280.706  Oil piping systems.
3280.707  Heat producing appliances.
3280.708  Exhaust duct system and provisions for the future installation 
          of a clothes dryer.
3280.709  Installation of appliances.
3280.710  Venting, ventilation and combustion air.
3280.711  Instructions.
3280.712  Marking.
3280.713  Accessibility.
3280.714  Appliances, cooling.
3280.715  Circulating air systems.

[[Page 108]]

                      Subpart I--Electrical Systems

3280.801  Scope.
3280.802  Definitions.
3280.803  Power supply.
3280.804  Disconnecting means and branch-circuit protective equipment.
3280.805  Branch circuits required.
3280.806  Receptacle outlets.
3280.807  Fixtures and appliances.
3280.808  Wiring methods and materials.
3280.809  Grounding.
3280.810  Electrical testing.
3280.811  Calculations.
3280.812  Wiring of expandable units and dual units.
3280.813  Outdoor outlets, fixtures, air conditioning equipment, etc.
3280.814  Painting of wiring.
3280.815  Polarization.
3280.816  Examination of equipment for safety.

                        Subpart J--Transportation

3280.901  Scope.
3280.902  Definitions.
3280.903  General requirements for designing the structure to withstand 
          transportation shock and vibration.
3280.904  Specific requirements for designing the transportation system.

    Authority: 42 U.S.C. 3535(d), 5403, and 5424.

    Source: 40 FR 58752, Dec. 18, 1975, unless otherwise noted. 
Redesignated at 44 FR 20679, Apr. 6, 1979.



                           Subpart A--General



Sec. 3280.1  Scope.

    This standard covers all equipment and installations in the design, 
construction, transportation, fire safety, plumbing, heat-producing and 
electrical systems of manufactured homes which are designed to be used 
as dwelling units. This standard seeks to the maximum extent possible to 
establish performance requirements. In certain instances, however, the 
use of specific requirements is necessary.

[58 FR 55002, Oct. 25, 1993]



Sec. 3280.2  Definitions.

    Definitions in this subpart are those common to all subparts of the 
standard and are in addition to the definitions provided in individual 
parts. The definitions are as follows:
    Approved, when used in connection with any material, appliance or 
construction, means complying with the requirements of the Department of 
Housing and Urban Development.
    Bay window--a window assembly whose maximum horizontal projection is 
not more than two feet from the plane of an exterior wall and is 
elevated above the floor level of the home.
    Certification label means the approved form of certification by the 
manufacturer that, under Sec. 3280.8, is permanently affixed to each 
transportable section of each manufactured home manufactured for sale in 
the United States.
    Dwelling unit means one or more habitable rooms which are designed 
to be occupied by one family with facilities for living, sleeping, 
cooking and eating.
    Equipment includes materials, appliances, devices, fixtures, 
fittings or accessories both in the construction of, and in the fire 
safety, plumbing, heat-producing and electrical systems of manufactured 
homes.
    Federal manufactured home construction and safety standard means a 
reasonable standard for the construction, design, and performance of a 
manufactured home which meets the needs of the public including the need 
for quality, durability, and safety.
    Installations means all arrangements and methods of construction, as 
well as fire safety, plumbing, heat-producing and electrical systems 
used in manufactured homes.
    Labeled means a label, symbol or other identifying mark of a 
nationally recognized testing laboratory, inspection agency, or other 
organization concerned with product evaluation that maintains periodic 
inspection of production of labeled equipment or materials, and by whose 
labeling is indicated compliance with nationally recognized standards or 
tests to determine suitable usage in a specified manner.
    Length of a manufactured home means its largest overall length in 
the traveling mode, including cabinets and other projections which 
contain interior space. Length does not include bay windows, roof 
projections, overhangs, or eaves under which there is no interior space, 
nor does it include drawbars, couplings or hitches.

[[Page 109]]

    Listed or certified means included in a list published by a 
nationally recognized testing laboratory, inspection agency, or other 
organization concerned with product evaluation that maintains periodic 
inspection of production of listed equipment or materials, and whose 
listing states either that the equipment or material meets nationally 
recognized standards or has been tested and found suitable for use in a 
specified manner.
    Manufacturer means any person engaged in manufacturing or assembling 
manufactured homes, including any person engaged in importing 
manufactured homes for resale.
    Manufactured home means a structure, transportable in one or more 
sections, which in the traveling mode, is eight body feet or more in 
width or forty body feet or more in length, or, when erected on site, is 
three hundred twenty 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. Calculations used to determine the number of square 
feet in a structure 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. 
This term includes all structures which meet the above requirements 
except the size requirements and with respect to which the manufacturer 
voluntarily files a certification pursuant to Sec. 3282.13 and complies 
with the standards set forth in part 3280. Nothing in this subsection 
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 home construction means all activities relating to the 
assembly and manufacture of a manufactured home including, but not 
limited to, those relating to durability, quality and safety.
    Manufactured home safety means the performance of a manufactured 
home in such a manner that the public is protected against any 
unreasonable risk of the occurrence of accidents due to the design or 
construction of such manufactured home, or any unreasonable risk of 
death or injury to the user or to the public if such accidents do occur.
    Registered Engineer or Architect means a person licensed to practice 
engineering or architecture in a state and subject to all laws and 
limitations imposed by the state's Board of Engineering and Architecture 
Examiners and who is engaged in the professional practice of rendering 
service or creative work requiring education, training and experience in 
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.
    Secretary means the Secretary of Housing and Urban Development, or 
an official of the Department delegated the authority of the Secretary 
with respect to title VI of Pub. L. 93-383.
    State includes each of the several States, the District of Columbia, 
the Commonwealth of Puerto Rico, Guam, the Virgin Islands, the Canal 
Zone, and American Samoa.
    Width of a manufactured home means its largest overall width in the 
traveling mode, including cabinets and other projections which contain 
interior space. Width does not include bay windows, roof projections, 
overhangs, or eaves under which there is no interior space.

[40 FR 58752, Dec. 18, 1975, as amended at 42 FR 960, Jan. 4, 1977. 
Redesignated at 44 FR 20679, Apr. 6, 1979, as amended at 47 FR 28092, 
June 29, 1982; 58 FR 55002, Oct. 25, 1993; 61 FR 5216, Feb. 9, 1996]

[[Page 110]]



Sec. 3280.3  Manufactured home procedural and enforcement regulations and consumer manual requirements.

    A manufacturer must comply with the requirements of this part 3280, 
part 3282 of this chapter, and 42 U.S.C. 5416.

[61 FR 18250, Apr. 25, 1996]



Sec. 3280.4  Incorporation by reference.

    (a) The specifications, standards and codes of the following 
organizations are incorporated by reference in 24 CFR part 3280 (this 
Standard) pursuant to 5 U.S.C. 552(a) and 1 CFR part 51 as though set 
forth in full. The incorporation by reference of these standards has 
been approved by the Director of the Federal Register. Reference 
standards have the same force and effect as this Standard (24 CFR part 
3280) except that whenever reference standards and this Standard are 
inconsistent, the requirements of this Standard prevail to the extent of 
the inconsistency.
    (b) The abbreviations and addresses of organizations issuing the 
referenced standards appear below. Reference standards which are not 
available from their producer organizations may be obtained from the 
Office of Manufactured Housing and Regulatory Functions, Manufactured 
Housing and Construction Standards Division, U.S. Department of Housing 
and Urban Development, 451 Seventh Street, SW., room B-133, Washington, 
DC 20410.

AA--Aluminum Association, 900 19th Street NW., suite 300, Washington, DC 
20006.
AAMA--American Architectural Manufacturers Association, 1540 East Dundee 
Road, Palatine, Illinois 60067
AFPA [previously (N)FPA]--American Forest and Paper Association, 1250 
Connecticut Avenue, NW., Washington, DC 20036 [previously named (N)FPA-
National Forest Products Association]
AGA--American Gas Association, 8501 East Pleasant Valley Road, 
Cleveland, Ohio 44131
AISC--American Institute of Steel Construction, One East Wacker Drive, 
Chicago, IL 60601
AISI--American Iron and Steel Institute, 1101 17th Street, NW., 
Washington, DC 20036
AITC--American Institute of Timber Construction, 11818 SE Mill Plain 
Blvd., suite 415, Vancouver, Washington 98684
ANSI--American National Standards Institute, 1430 Broadway, New York, 
New York 10018
APA--American Plywood Association, P.O. Box 11700, Tacoma, Washington 
98411
ARI--Air Conditioning and Refrigeration Institute, 1501 Wilson Blvd., 
6th Floor, Arlington, VA 22209-2403
ASCE--American Society of Civil Engineers, 345 East 47th Street, New 
York, New York 10017-2398
ASHRAE--American Society of Heating, Refrigeration and Air Conditioning 
Engineers, 1791 Tulle Circle, NE., Atlanta, Georgia 30329
ASME--American Society of Mechanical Engineers, 345 East 47th Street, 
New York, New York 10017
ASSE--American Society of Sanitary Engineering, P.O. Box 40362, Bay 
Village, Ohio 44140
ASTM--American Society for Testing and Materials, 1916 Race Street, 
Philadelphia, Pennsylvania 19103
CISPI--Cast Iron Soil Pipe Institute, 5959 Shallowford Road, suite 419, 
Chattanooga, TN 37421
DOC--U.S. Department of Commerce, National Institute of Standards and 
Technology, Office of Engineering Standards, room A-166, Technical 
Building, Washington, DC 20234
FS--Federal Specifications, General Services Administration, 
Specifications Branch, room 6039, GSA Building, 7th and D Streets, SW., 
Washington, DC 20407
HPVA (previously HPMA)--Hardwood Plywood and Veneer Association, P.O. 
Box 2789, Reston, VA 22090 (previously named HPMA Hardwood Plywood 
Manufacturers Association)
HUD-FHA--Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410
HUD--USER Department of Housing and Urban Development, HUD User, P.O. 
Box 280, Germantown, MD 20874
IAPMO--International Association of Plumbing and Mechanical Officials, 
20001 Walnut Drive South, Walnut, CA 91784-2825
IITRI--IIT Research Institute, 10 West 35th Street, Chicago, IL 60616
MIL--Military Specifications and Standards, Naval Publications and Forms 
Center, 5801 Tabor Avenue, Philadelphia, Pennsylvania 19120
NFPA--National Fire Protection Association, Batterymarch Park, Quincy, 
MA 02269
NPA--National Particleboard Association, 18928 Premiere Court, 
Gaithersburg, MD 20879
NSF--National Sanitation Foundation, P.O. Box 1468, Ann Arbor, MI 48105
NWWDA--National Wood Window and Door Association, 1400 E. Toughy Avenue, 
suite G-54, Des Plaines, IL 60018
SAE--Society of Automotive Engineers, 400 Commonwealth Drive, 
Warrendale, Pennsylvania 15096

[[Page 111]]

SJI--Steel Joist Institute, 1205 48th Avenue North, suite A, Myrtle 
Beach, SC 29577
TPI--Truss Plate Institute, 583 D'Onofrio Drive, suite 200, Madison, 
Wisconsin 53719
UL--Underwriters' Laboratories, Inc., 333 Pfingsten Road, Northbrook, 
Illinois 60062

    (c) The Department will enforce the listed editions of material 
incorporated by reference into this standard. If a later edition is to 
be enforced, the Department will publish a notice of change in the 
Federal Register.

[47 FR 49385, Nov. 1, 1982, as amended at 52 FR 47553, Dec. 15, 1987; 58 
FR 55002, Oct. 25, 1993; 59 FR 15113, Mar. 31, 1994]



Sec. 3280.5  Data plate.

    Each manufactured home shall bear a data plate affixed in a 
permanent manner near the main electrical panel or other readily 
accessible and visible location. Each data plate shall be made of 
material what will receive typed information as well as preprinted 
information, and which can be cleaned of ordinary smudges or household 
dirt without removing information contained on the data plate; or the 
data plate shall be covered in a permanent manner with materials that 
will make it possible to clean the data plate of ordinary dirt and 
smudges without obscuring the information. Each data plate shall contain 
not less than the following information:
    (a) The name and address of the manufacturing plant in which the 
manufactured home was manufactured.
    (b) The serial number and model designation of the unit, and the 
date the unit was manufactured.
    (c) The statement:

    This manufactured home is designed to comply with the Federal 
Manufactured Home Construction and Safety Standards in force at the time 
of manufacture.

    (d) A list of the certification label(s) number(s) that are affixed 
to each transportable manufactured section under Sec. 3280.8.
    (e) A list of major factory-installed equipment, including the 
manufacturer's name and the model designation of each appliance.
    (f) Reference to the roof load zone and wind load zone for which the 
home is designed and duplicates of the maps as set forth in 
Sec. 3280.305(c). This information may be combined with the heating/
cooling certificate and insulation zone map required by Secs. 3280.510 
and 3280.511. The Wind Zone Map on the Data Plate shall also contain the 
statement:

    This home has not been designed for the higher wind pressures and 
anchoring provisions required for ocean/coastal areas and should not be 
located within 1500' of the coastline in Wind Zones II and III, unless 
the home and its anchoring and foundation system have been designed for 
the increased requirements specified for Exposure D in ANSI/ASCE 7-88.

    (g) The statement:

    This home has--has not--(appropriate blank to be checked by 
manufacturer) been equipped with storm shutters or other protective 
coverings for windows and exterior door openings. For homes designed to 
be located in Wind Zones II and III, which have not been provided with 
shutters or equivalent covering devices, it is strongly recommended that 
the home be made ready to be equipped with these devices in accordance 
with the method recommended in the manufacturers printed instructions.

    (h) The statement: ``Design Approval by'', followed by the name of 
the agency that approved the design.

[59 FR 2469, Jan. 14, 1994]



Sec. 3280.6  Serial number.

    (a) A manufactured home serial number which will identify the 
manufacturer and the state in which the manufactured home is 
manufactured, must be stamped into the foremost cross member. Letters 
and numbers must be \3/8\ inch minimum in height. Numbers must not be 
stamped into hitch assembly or drawbar.



Sec. 3280.7  Excluded structures.

    Certain structures may be excluded from these Standards as modular 
homes under 24 CFR 3282.12.

[52 FR 4581, Feb. 12, 1987]



Sec. 3280.8  Waivers.

    (a) Where any material piece of equipment, or system which does not 
meet precise requirements or specifications set out in the standard is 
shown, to the satisfaction of the Secretary, to meet an equivalent level 
of performance, the Secretary may waive the specifications set out in 
the Standard

[[Page 112]]

for that material, piece of equipment, or system.
    (b) Where the Secretary is considering issuing a waiver to a 
Standard, the proposed waiver shall be published in the Federal Register 
for public comment, unless the Secretary, for good cause, finds that 
notice is impractical, unnecessary or contrary to the public interest, 
and incorporates into the waiver that finding and a brief statement of 
the reasons therefor.
    (c) Each proposed and final waiver shall include:
    (1) A statement of the nature of the waiver; and
    (2) Identification of the particular standard affected.
    (d) All waivers shall be published in the Federal Register and shall 
state their effective date. Where a waiver has been issued, the 
requirements of the Federal Standard to which the waiver relates may be 
met either by meeting the specifications set out in the Standard or by 
meeting the requirements of the waiver published in the Federal 
Register.

[58 FR 55003, Oct. 25, 1993]



Sec. 3280.9  Interpretative bulletins.

    Interpretative bulletins may be issued for the following purposes:
    (a) To clarify the meaning of the Standard; and
    (b) To assist in the enforcement of the Standard.

[58 FR 55003, Oct. 25, 1993]



Sec. 3280.10  Use of alternative construction.

    Requests for alternative construction can be made pursuant to 24 CFR 
3282.14 of this chapter.

[58 FR 55003, Oct. 25, 1993]



Sec. 3280.11  Certification label.

    (a) A permanent label shall be affixed to each transportable section 
of each manufactured home for sale or lease in the United States. This 
label shall be separate and distinct from the data plate which the 
manufacturer is required to provide under Sec. 3280.5 of the standards.
    (b) The label shall be approximately 2 in. by 4 in. in size and 
shall be permanently attached to the manufactured home by means of 4 
blind rivets, drive screws, or other means that render it difficult to 
remove without defacing it. It shall be etched on 0.32 in. thick 
aluminum plate. The label number shall be etched or stamped with a 3 
letter designation which identifies the production inspection primary 
inspection agency and which the Secretary shall assign. Each label shall 
be marked with a 6 digit number which the label supplier shall furnish. 
The labels shall be stamped with numbers sequentially.
    (c) The label shall read as follows:

    As evidenced by this label No. ABC 000001, the manufacturer 
certifies to the best of the manufacturer's knowledge and belief that 
this manufactured home has been inspected in accordance with the 
requirements of the Department of Housing and Urban Development and is 
constructed in conformance with the Federal manufactured home 
construction and safety standards in effect on the date of manufacture. 
See date plate.

    (d) The label shall be located at the tail-light end of each 
transportable section of the manufactured home approximately one foot up 
from the floor and one foot in from the road side, or as near that 
location on a permanent part of the exterior of the manufactured home 
unit as practicable. The road side is the right side of the manufactured 
home when one views the manufactured home from the tow bar end of the 
manufactured home.

[42 FR 960, Jan. 4, 1977. Redesignated at 44 FR 20679, Apr. 6, 1979, as 
amended at 52 FR 47553, Dec. 15, 1987. Redesignated and amended at 58 FR 
55003, Oct. 25, 1993]



                   Subpart B--Planning Considerations



Sec. 3280.101  Scope.

    Subpart B states the planning requirements in manufactured homes. 
The intent of this subpart is to assure the adequacy of architectural 
planning considerations which assist in determining a safe and healthful 
environment.



Sec. 3280.102  Definitions.

    (a) Gross floor area means all space, wall to wall, including 
recessed entries not to exceed 5 sq. ft. and areas under built-in 
vanities and similar furniture. Where the ceiling height is less than

[[Page 113]]

that specified in Sec. 3280.104, the floor area under such ceilings 
shall not be included. Floor area of closets shall not be included in 
the gross floor area.
    (b) Habitable room means a room or enclosed floor space arranged for 
living, eating, food preparation, or sleeping purposes not including 
bathrooms, foyers, hallways, and other accessory floor space.
    (c) Laundry area means an area containing or designed to contain a 
laundry tray, clothes washer and/or clothes dryer.



Sec. 3280.103  Light and ventilation.

    (a) Lighting. Each habitable room shall be provided with exterior 
windows and/or doors having a total glazed area of not less than 8 
percent of the gross floor area.
    (1) Kitchens, bathrooms, toilet compartments, laundry areas, and 
utility rooms may be provided with artificial light in place of windows.
    (2) Rooms and areas may be combined for the purpose of providing the 
required natural lighting provided that at least one half of the common 
wall area is open and unobstructed, and the open area is at least equal 
to 10 percent of the combined floor area or 25 square feet whichever is 
greater.
    (b) Whole house ventilation. Each manufactured home shall be capable 
of providing a minimum of 0.35 air changes per hour continuously or at 
an equivalent hourly average rate. The following criteria shall be 
adhered to.
    (1) Natural infiltration and exfiltration shall be considered as 
providing 0.25 air changes per hour.
    (2) The remaining ventilation capacity of 0.10 air change per hour 
or its hourly average equivalent shall be calculated using 0.035 cubic 
feet per minute per square foot of interior floor space. This 
ventilation capacity shall be in addition to any openable window area.
    (3) The remaining ventilation capacity may be provided by: a 
mechanical system, or a passive system, or a combination passive and 
mechanical system. The ventilation system or provisions shall not create 
a positive pressure in Uo value Zones 2 and 3 or a negative pressure 
condition in Uo value Zone 1. Mechanical systems shall be balanced. 
Combination passive and mechanical systems shall have adequately sized 
inlets or exhaust to release any unbalanced pressure. Passive systems 
shall have inlets and exhaust of sufficient size to alleviate unbalance 
pressure conditions under normal conditions. Temporary imbalances due to 
gusting or high winds are permitted.
    (4) The ventilation system or provision shall exchange air directly 
with the exterior of the home, except it shall not draw or expel air 
with the space underneath the home. The ventilation system or provision 
shall not draw or expel air into the floor, wall, or ceiling/roof 
systems even if those systems are vented.
    (5) The ventilation system or a portion thereof may be integral with 
the homes heating or cooling system. The system shall be capable of 
operating independently of the heating or cooling modes. A ventilation 
system that is integral with the heating or cooling system shall be 
listed as part of the heating and cooling system or listed as suitable 
for use therewith.
    (6) A mechanical ventilation system, or mechanical portion thereof, 
shall be provided with a manual control and may be provided with 
automatic timers or humidistats.
    (7) Substantiation of the ventilation capacity to provide 0.10 ACH 
shall be provided for a mechanical system, or a passive system, or a 
combination passive and mechanical system.
    (c) Additional ventilation. (1) At least half of the minimum 
required glazed area in paragraph (a) of this section shall be openable 
directly to the outside of the manufactured home for unobstructed 
ventilation. These same ventilation requirements apply to rooms combined 
in accordance with Sec. 3280.103(a)(2).
    (2) Kitchens shall be provided with a mechanical ventilation system 
that is capable of exhausting 100 cfm to the outside of the home. The 
exhaust fan shall be located as close as possible to the range or cook 
top, but in no case farther than 10 feet horizontally from the range or 
cook top.
    (3) Each bathroom and separate toilet compartment shall be provided 
with a mechanical ventilation system capable of exhausting 50 cfm to the 
outside

[[Page 114]]

of the home. A separate toilet compartment may be provided with 1.5 
square feet of openable glazed area in place of mechanical ventilation, 
except in Uo value Zone 3.

[58 FR 55003, Oct. 25, 1993]



Sec. 3280.104  Ceiling heights.

    (a) Every habitable room and bathroom shall have a minimum ceiling 
height of not less than 7 feet, 0 inches for a minimum of 50 percent of 
the room's floor area. The remaining area may have a ceiling with a 
minimum height of 5 feet, 0 inches. Minimum height under dropped ducts, 
beams, etc. shall be 6 feet, 4 inches.
    (b) Hallways and foyers shall have a minimum ceiling height of 6 
feet, 6 inches.



Sec. 3280.105  Exit facilities; exterior doors.

    (a) Number and location of exterior doors. Manufactured homes shall 
have a minimum of two exterior doors located remote from each other.
    (1) Required egress doors shall not be located in rooms where a 
lockable interior door must be used in order to exit.
    (2) In order for exit doors to be considered remote from each other, 
they must comply with all of the following:
    (i) Both of the required doors must not be in the same room or in a 
group of rooms which are not defined by fixed walls.
    (ii) Single wide units. Doors may not be less than 12 ft. c-c from 
each other as measured in any straight line direction regardless of the 
length of path of travel between doors.
    (iii) Double wide units. Doors may not be less than 20 ft. c-c from 
each other as measured in any straight line direction regardless of the 
length of path of travel between doors.
    (iv) One of the required exit doors must be accessible from the 
doorway of each bedroom without traveling more than 35 ft.
    (b) Door design and construction. (1) Exterior swinging doors shall 
be constructed in accordance with Sec. 3280.405 the ``Standard for 
Swinging Exterior Passage Doors for Use in Manufactured Homes''. 
Exterior sliding glass doors shall be constructed in accordance with 
Sec. 3280.403 the ``Standard for Windows and Sliding Glass Doors Used in 
Manufactured Homes''.
    (2) All exterior swinging doors shall provide a minimum 28 inch wide 
by 74 inch high clear opening. All exterior sliding glass doors shall 
provide a minimum 28 inch wide by 72 inch high clear opening.
    (3) Each swinging exterior door other than screen or storm doors 
shall have a key-operated lock that has a deadlocking latch or a key-
operated dead bolt with a passage latch. Locks shall not require the use 
of a key for operation from the inside.
    (4) All exterior doors, including storm and screen doors, opening 
outward shall be provided with a safety door check.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 50 FR 9269, Mar. 7, 1985]



Sec. 3280.106  Exit facilities; egress windows and devices.

    (a) Every room designed expressly for sleeping purposes, unless it 
has an exit door (see Sec. 3280.105), shall have at least one outside 
window or approved exit device which meets the requirements of 
Sec. 3280.404, the ``Standard for Egress Windows and Devices for Use in 
Manufactured Homes.''
    (b) The bottom of the window opening shall not be more than 36 
inches above the floor.
    (c) Locks, latches, operating handles, tabs, and any other window 
screen or storm window devices which need to be operated in order to 
permit exiting, shall not be located in excess of 54 inches from the 
finished floor.
    (d) Integral rolled-in screens shall not be permitted in an egress 
window unless the window is of the hinged-type.

[49 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 49 FR 36086, Sept. 14, 1984; 52 FR 4581, Feb. 12, 1987]



Sec. 3280.107  Interior privacy.

    Bathroom and toilet compartment doors shall be equipped with a 
privacy lock.



Sec. 3280.108  Interior passage.

    (a) Interior doors having passage hardware without a privacy lock, 
or with a privacy lock not engaged, shall

[[Page 115]]

open from either side by a single movement of the hardware mechanism in 
any direction.
    (b) Each manufactured home interior door, when provided with a 
privacy lock, shall have a privacy lock that has an emergency release on 
the outside to permit entry when the lock has been locked by a locking 
knob, lever, button, or other locking device on the inside.



Sec. 3280.109  Room requirements.

    (a) Every manufactured home shall have at least one living area with 
not less than 150 sq. ft. of gross floor area.
    (b) Rooms designed for sleeping purposes shall have a minimum gross 
square foot floor area as follows:
    (1) All bedrooms shall have at least 50 sq. ft. of floor area.
    (2) Bedrooms designed for two or more people shall have 70 sq. ft. 
of floor area plus 50 sq. ft. for each person in excess of two.
    (c) Every room designed for sleeping purposes shall have accessible 
clothes hanging space with a minimum inside depth of 22 inches and shall 
be equipped with a rod and shelf.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
and further redesignated at 58 FR 55004, Oct. 25, 1993]



Sec. 3280.110  Minimum room dimensions.

    The gross floor area required by Sec. 3280.110 (a) and (b) shall 
have no clear horizontal dimension less than 5 feet except as permitted 
by Sec. 3280.102(a).

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
and further redesignated at 58 FR 55004, Oct. 25, 1993]



Sec. 3280.111  Toilet compartments.

    Each toilet compartment shall be a minimum of 30 inches in width, 
except, when the toilet is located adjacent to the short dimension of 
the tub, the distance from the tub to the center line of the toilet 
shall not be less than 12 inches. At least 21 inches of clear space 
shall be provided in front of each toilet.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
and further redesignated at 58 FR 55004, Oct. 25, 1993]



Sec. 3280.112  Hallways.

    Hallways shall have a minimum horizontal dimension of 28 inches 
measured from the interior finished surface to the interior finished 
surface of the opposite wall. When appliances are installed in a laundry 
area, the measurement shall be from the front of the appliance to the 
opposite finished interior surface. When appliances are not installed 
and a laundry area is provided, the area shall have a minimum clear 
depth of 27 inches in addition to the 28 inches required for passage. In 
addition, a notice of the available clearance for washer/dryer units 
shall be posted in the laundry area. Minor protrusions into the minimum 
hallway width by doorknobs, trim, smoke alarms or light fixtures are 
permitted.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
and further redesignated at 58 FR 55004, Oct. 25, 1993; 67 FR 12817, 
Mar. 19, 2002]



Sec. 3280.113  Glass and glazed openings.

    (a) Windows and sliding glass doors. All windows and sliding glass 
doors shall meet the requirements of Sec. 3280.403 the ``Standard for 
Windows and Sliding Glass Doors Used in Manufactured Homes''.
    (b) Safety glazing. Glazing in all entrance or exit doors, sliding 
glass doors, units (fixed or moving sections), unframed glass doors, 
unbacked mirrored wardrobe doors (i.e., mirrors not secured to a backing 
capable of being the door itself), shower and bathtub enclosures and 
surrounds to a height of 6 feet above the bathroom floor level, storm 
doors or combination doors, and in panels located within 12 inches on 
either side of exit or entrance doors shall be of a safety glazing 
material. Safety glazing material is considered to be any glazing 
material capable of passing the requirements of Safety Performance 
Specifications and Methods of Test for Safety Glazing Materials Used in 
Buildings, ANSI Z97.1-1984.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 52 FR 4581, Feb. 12, 1987. Redesignated at 58 FR 55004, 
Oct. 25, 1993]

[[Page 116]]



                         Subpart C--Fire Safety

    Source: 49 FR 32008, Aug. 9, 1984, unless otherwise noted.



Sec. 3280.201  Scope.

    The purpose of this subpart is to set forth requirements that will 
assure reasonable fire safety to the occupants by reducing fire hazards 
and by providing measures for early detection.



Sec. 3280.202  Definitions.

    The following definitions are applicable to subparts C, H, and I of 
the Standards:
    Combustible material: Any material not meeting the definition of 
limited-combustible or non-combustible material.
    Flame-spread rating: The measurement of the propagation of flame on 
the surface of materials or their assemblies as determined by recognized 
standard tests conducted as required by this subpart.
    Interior finish: The surface material of walls, fixed or movable 
partitions, ceilings, columns, and other exposed interior surfaces 
affixed to the home's structure including any materials such as paint or 
wallpaper and the substrate to which they are applied. Interior finish 
does not include:
    (1) Trim and sealant 2 inches or less in width adjacent to the 
cooking range and in furnace and water heater spaces provided it is 
installed in accordance with the requirements of Sec. 3280.203(b)(3) or 
(4), and trim 6 inches or less in width in all other areas;
    (2) Windows and frames;
    (3) Single doors and frames and a series of doors and frames not 
exceeding 5 feet in width;
    (4) Skylights and frames;
    (5) Casings around doors, windows, and skylights not exceeding 4 
inches in width;
    (6) Furnishings which are not permanently affixed to the home's 
structure;
    (7) Baseboards not exceeding 6 inches in height;
    (8) Light fixtures, cover plates of electrical receptacle outlets, 
switches, and other devices;
    (9) Decorative items attached to walls and partitions (i.e., 
pictures, decorative objects, etc.) constituting no more than 10% of the 
aggregate wall surface area in any room or space not more than 32 square 
feet in surface area, whichever is less;
    (10) Plastic light diffusers when suspended from a material which 
meets the interior finish provisions of Sec. 3280.203(b);
    (11) Coverings and surfaces of exposed wood beams; and
    (12) Decorative items including the following:
    (i) Non-structural beams not exceeding 6 inches in depth and 6 
inches in width and spaced not closer than 4 feet on center;
    (ii) Non-structural lattice work;
    (iii) Mating and closure molding; and
    (iv) Other items not affixed to the home's structure.
    Limited combustible: A material meeting:
    (1) The definition of Article 2-3 or NFPA 220-1992; or
    (2) \5/16\-inch or thicker gypsum board.
    Noncombustible material: A material meeting the definition of 
contained in NFPA 220-1992.
    Smoke alarm: An alarm device that is responsive to smoke.
    Tactile notification appliance: A notification appliance that alerts 
by the sense of touch or vibration.

[58 FR 55004, Oct. 25, 1993, as amended at 67 FR 12817, Mar. 19, 2002]



Sec. 3280.203  Flame spread limitations and fire protection requirements.

    (a) Establishment of flame spread rating. The surface flame spread 
rating of interior-finish material shall not exceed the value shown in 
Sec. 3280.203(b) when tested by ``Standard Test Method for Surface 
Burning Characteristics of Building Materials, ASTM E 84-91a'' except 
that the surface flame spread rating of interior-finish materials 
required by Sec. 3280.203(b)(5) and (6) may be determined by using the 
``Standard Test Method for Surface Flammability of Materials Using a 
Radiant Heat Energy Source, ASTM E 162-90''. However, the following 
materials need not be tested to establish their flame spread rating 
unless a lower rating is required by these standards.
    (1) Flame-spread rating--76 to 200.
    (i) .035-inch or thicker high pressure laminated plastic panel 
countertop;

[[Page 117]]

    (ii) \1/4\-inch or thicker unfinished plywood with phenolic or urea 
glue;
    (iii) Unfinished dimension lumber (1-inch or thicker nominal 
boards);
    (iv) \3/8\-inch or thicker unfinished particleboard with phenolic or 
urea binder;
    (v) Natural gum-varnished or latex- or alkyd-painted:
    (A) \1/4\-inch or thicker plywood, or
    (B) \3/8\-inch or thicker particleboard, or
    (C) 1-inch or thicker nominal board;
    (vi) \5/16\-inch gypsum board with decorative wallpaper; and
    (vii) \1/4\-inch or thicker unfinished hardboard,
    (2) Flame-spread rating-25 to 200,
    (i) Painted metal;
    (ii) Mineral-base acoustic tile;
    (iii) \5/16\-inch or thicker unfinished gypsum wallboard (both 
latex- or alkyd-painted); and
    (iv) Ceramic tile.


(The above-listed material applications do not waive the requirements of 
Sec. 3280.203(c) or Sec. 3280.204 of this subpart.)
    (b) Flame-spread rating requirements.
    (1) The interior finish of all walls, columns, and partitions shall 
not have a flame spread rating exceeding 200 except as otherwise 
specified herein.
    (2) Ceiling interior finish shall not have a flame spread rating 
exceeding 75.
    (3) Walls adjacent to or enclosing a furnace or water heater and 
ceilings above them shall have an interior finish with a flame spread 
rating not exceeding 25. Sealants and other trim materials 2 inches or 
less in width used to finish adjacent surfaces within these spaces are 
exempt from this provision provided that all joints are completely 
supported by framing members or by materials having a flame spread 
rating not exceeding 25.
    (4) Exposed interior finishes adjacent to the cooking range shall 
have a flame spread rating not exceeding 50, except that backsplashes 
not exceeding 6 inches in height are exempted. Adjacent surfaces are the 
exposed vertical surfaces between the range top height and the overhead 
cabinets and/or ceiling and within 6 horizontal inches of the cooking 
range. (Refer also to Sec. 3280.204(a), Kitchen Cabinet Protection.) 
Sealants and other trim materials 2 inches or less in width used to 
finish adjacent surfaces are exempt from this provision provided that 
all joints are completely supported by a framing member.
    (5) Kitchen cabinet doors, countertops, backsplashes, exposed 
bottoms, and end panels shall have a flame spread rating not to exceed 
200. Cabinet rails, stiles, mullions, and top strips are exempted.
    (6) Finish surfaces of plastic bathtubs, shower units, and tub or 
shower doors shall not exceed a flame spread rating of 200.
    (c) Fire protective requirements.
    (1) Materials used to surface the following areas shall be of 
limited combustible material (e.g., \5/16\-inch gypsum board, etc.):
    (i) The exposed wall adjacent to the cooking range (see 
Sec. 3280.203(b)(4));
    (ii) Exposed bottoms and sides of kitchen cabinets as required by 
Sec. 3280.204;
    (iii) Interior walls and ceilings enclosing furnace and/or water 
heater spaces; and
    (iv) Combustible doors which provide interior or exterior access to 
furnace and/or water heater spaces. The surface may be interrupted for 
louvers ventilating the enclosure. However, the louvers shall not be 
constructed of a material of greater combustibility than the door itself 
(e.g., plastic louvers on a wooden door).
    (2) No burner of a surface cooking unit shall be closer than 12 
horizontal inches to a window or an exterior door with glazing.

[49 FR 32008, Aug. 9, 1984, as amended at 58 FR 55005, Oct. 25, 1993]



Sec. 3280.204  Kitchen cabinet protection.

    (a) The bottom and sides of combustible kitchen cabinets over 
cooking ranges to a horizontal distance of 6 inches from the outside 
edge of the cooking range shall be protected with at least \5/16\-inch 
thick gypsum board or equivalent limited combustible material. One-inch 
nominal framing members and trim are exempted from this requirement. The 
cabinet area over the cooking range or cooktops shall be protected by a 
metal hood (26-gauge sheet metal, or .017 stainless steel, or .024

[[Page 118]]

aluminum, or .020 copper) with not less than a 3-inch eyebrow projecting 
horizontally from the front cabinet face. The \5/16\-inch thick gypsum 
board or equivalent material which is above the top of the hood may be 
supported by the hood. A \3/8\-inch enclosed air space shall be provided 
between the bottom surface of the cabinet and the gypsum board or 
equivalent material. The hood shall be at least as wide as the cooking 
range.
    (b) The 3-inch metal eyebrow required by paragraph (a) of this 
section will project from the front and rear cabinet faces when there is 
no adjacent surface behind the range, or the \5/16\-inch thick gypsum 
board or equivalent material shall be extended to cover all exposed rear 
surfaces of the cabinet.
    (c) The metal hood required by paragraphs (a) and (b) of this 
section can be omitted when an oven of equivalent metal protection is 
installed between the cabinet and the range and all exposed cabinet 
surfaces are protected as described in paragraph (a) of this section.
    (d) When a manufactured home is designed for the future installation 
of a cooking range, the metal hood and cabinet protection required by 
paragraph (a) of this section and the wall-surfacing protection behind 
the range required by Sec. 3280.203 shall be installed in the factory.
    (e) Vertical clearance above cooking top. Ranges shall have a 
vertical clearance above the cooking top of not less than 24 inches to 
the bottom of combustible cabinets.



Sec. 3280.205  Carpeting.

    Carpeting shall not be used in a space or compartment designed to 
contain only a furnace and/or water heater. Carpeting may be used in 
other areas where a furnace or water heater is installed, provided that 
it is not located under the furnace or water heater.



Sec. 3280.206  Firestopping.

    (a) Firestopping of at least 1-inch nominal lumber, \5/16\-inch 
thick gypsum board, or the equivalent, shall be provided to cut off 
concealed draft openings between walls and partitions, including furred 
spaces, and the roof or floors, so as to retard vertical movement of 
fire. In particular, such concealed spaces must be constructed so that 
floor-to-ceiling concealed spaces on one floor do not communicate with 
any concealed space on another floor, any concealed spaces in the floor, 
or any concealed space in the roof cavity. A barrier must be installed 
to prevent communication between adjacent concealed spaces.
    (1) Where the barrier is vertical, it must be made of exterior or 
interior covering(s) equivalent to that used on the nearest exposed wall 
surface; and
    (2) In all other cases, the barrier must be made of 1-inch nominal 
lumber, \5/16\-inch thick gypsum board, or the equivalent.
    (b) A space does not lose its character as a concealed draft opening 
if it is filled with insulation or other material or if it is blocked by 
a barrier other than as required by paragraph (a) of this section.
    (c) All openings for pipes and vents and other penetrations in 
walls, floors, and ceilings of furnace and water heater spaces shall be 
tight-fitted or firestopped. Pipes, vents, and other penetrations are 
tight-fitted when they cannot be moved freely in the opening.



Sec. 3280.207  Requirements for foam plastic thermal insulating materials.

    (a) General. Foam plastic thermal insulating materials shall not be 
used within the cavity of walls (not including doors) or ceilings or be 
exposed to the interior of the home unless:
    (1) The foam plastic insulating material is protected by an interior 
finish of \5/16\-inch thick gypsum board or equivalent material for all 
cavities where the material is to be installed; or
    (2) The foam plastic is used as a sheathing or siding backerboard, 
and it:
    (i) Has a flame spread rating of 75 or less and a smoke-developed 
rating of 450 or less (not including outer covering of sheathing);
    (ii) Does not exceed \3/8\-inch in thickness; and
    (iii) Is separated from the interior of the manufactured home by a 
minimum of 2 inches of mineral fiber insulation or an equivalent thermal 
barrier; or
    (3) The foam plastic insulating material has been previously 
accepted by

[[Page 119]]

the Department for use in wall and/or ceiling cavities of manufactured 
homes, and it is installed in accordance with any restrictions imposed 
at the time of that acceptance; or
    (4) The foam plastic insulating material has been tested as required 
for its location in wall and/or ceiling cavities in accordance with 
testing procedures described in the Illinois Institute of Technology 
Research Institute (IITRI) Report, ``Development of Mobile Home Fire 
Test Methods to Judge the Fire Safe Performance of Foam Plastic, J-
6461,'' or other full-scale fire tests accepted by the Department, and 
it is installed in a manner consistent with the way the material was 
installed in the foam plastic test module. The materials shall be 
capable of meeting the following acceptance criteria required for their 
location.
    (i) Wall assemblies. The foam plastic system shall demonstrate 
equivalent or superior performance to the control module as determined 
by:
    (A) Time to reach flashover (600  deg.C in the upper part of the 
room);
    (B) Time to reach an oxygen (O2) level of 14% (rate of 
O2 depletion), a carbon monoxide (CO) level of 1%, a carbon 
dioxide (CO2) level of 6%, and a smoke level of 0.26 optical 
density/meter measured at 5 feet high in the doorway; and
    (C) Rate of change concentration for O2, CO, 
CO2 and smoke measured 3 inches below the top of the doorway.
    (ii) Ceiling assemblies. A minimum of three valid tests of the foam 
plastic system and one valid test of the control module shall be 
evaluated to determine if the foam plastic system domonstrates 
equivalent or superior performance to the control module. Individual 
factors to be evaluated include intensity of cavity fire (temperature-
time) and post-test damage.
    (iii) Post-test damage assessment for wall and ceiling assemblies. 
The overall performance of each total system shall also be evaluated in 
determining the acceptability of a particular foam plastic insulating 
material.
    (b) All foam plastic thermal insulating materials used in 
manufactured housing shall have a flame spread rating of 75 or less (not 
including outer covering or sheathing) and a maximum smoke-developed 
rating of 450.



Sec. 3280.208  Smoke alarm requirements.

    (a) Labeling. Each smoke alarm required under paragraph (b) of this 
section must conform with the requirements of UL 217, Single and 
Multiple Station Smoke Alarms, dated January 4, 1999 (incorporated by 
reference, see Sec. 3280.4), or UL 268, Smoke Detectors for Fire 
Protective Signaling Systems, dated January 4, 1999 (incorporated by 
reference, see Sec. 3280.4), and must bear a label to evidence 
conformance.
    (b) Required smoke alarm locations. (1) At least one smoke alarm 
must be installed in each of the following locations:
    (i) To protect both the living area and kitchen space. Manufacturers 
are encouraged to locate the alarm in the living area remote from the 
kitchen and cooking appliances. A smoke alarm located within 20 feet 
horizontally of a cooking appliance must incorporate a temporary 
silencing feature or be of a photoelectric type.
    (ii) In each room designed for sleeping.
    (iii) On the ceiling of the upper level near the top or above each 
stairway, other than a basement stairway, in any multistory home 
completed in accordance with this part or part 3282 of this chapter. The 
alarm must be located so that smoke rising in the stairway cannot be 
prevented from reaching the alarm by an intervening door or obstruction.
    (2) For each home designed to be placed over a basement, the 
manufacturer must provide a smoke alarm for the basement and must 
install at the factory an electrical junction box for the installation 
of this smoke alarm and for its interconnection to other smoke alarms 
required by this section. The instructions for installers and 
information for homeowners required in paragraph (f) of this section 
must clearly indicate that a smoke alarm should be installed and is to 
be located on the basement ceiling near the stairway.
    (3) A smoke alarm required under this section must not be placed in 
a location that impairs its effectiveness or in any of the following 
locations:

[[Page 120]]

    (i) Within 3 feet horizontally from any discharge grille when a home 
is equipped or designed for future installation of a roof-mounted 
evaporative cooler or other equipment discharging conditioned air 
through a ceiling grille into the living space; and
    (ii) In any location or environment that is prohibited by the terms 
of its listing, except as permitted by this section.
    (c) Mounting requirements. (1) Except in rooms with peaked sloping 
or shed sloping ceilings with a slope of more than 1.5/12 or as 
permitted pursuant to paragraph (e) of this section, smoke alarms must 
be mounted either:
    (i) On the ceiling at least 4 inches from each wall; or
    (ii) On a wall with the top of the alarm not less than 4 inches 
below the ceiling, and not farther from the ceiling than 12 inches or 
the distance from the ceiling specified in the smoke alarm 
manufacturer's listing and instructions, whichever is less.
    (2) Except as permitted pursuant to paragraph (e) of this section, 
in rooms with peaked sloping ceilings with a slope of more than 1.5/12, 
smoke alarms must be mounted on the ceiling within 3 feet, measured 
horizontally, from the peak of the ceiling; at least 4 inches, measured 
vertically, below the peak of the ceiling; and at least 4 inches from 
any projecting structural element.
    (3) Except as permitted pursuant to paragraph (e) of this section, 
in rooms with shed sloping ceilings with a slope of more than 1.5/12, 
smoke alarms must be mounted on the ceiling within 3 feet, measured 
horizontally, of the high side of the ceiling, and not closer than 4 
inches from any adjoining wall surface and from any projecting 
structural element.
    (d) Connection to power source. (1) Each smoke alarm must be powered 
from:
    (i) The electrical system of the home as the primary power source 
and a battery as a secondary power source; or
    (ii) A battery rated for a 10-year life, provided the smoke alarm is 
listed for use with a 10-year battery.
    (2) Each smoke alarm whose primary power source is the home 
electrical system must be mounted on an electrical outlet box and 
connected by a permanent wiring method to a general electrical circuit. 
More than one smoke alarm is permitted to be placed on the same 
electrical circuit. The wiring circuit for the alarm must not include 
any switches between the over-current protective device and the alarm, 
and must not be protected by a ground fault circuit interrupter.
    (3) Smoke alarms required under this section must be interconnected 
such that the activation of any one smoke alarm causes the alarm to be 
triggered in all required smoke alarms in the home.
    (e) Visible and tactile notification appliances. (1) In addition to 
the smoke alarms required pursuant to this section, the manufacturer 
must provide visible and listed tactile notification appliances if these 
appliances are ordered by the purchaser or retailer before the home 
enters the first stage of production. These appliances are required to 
operate from the primary power source, but are not required to operate 
from a secondary power source.
    (2) A visible notification appliance in a room designed for sleeping 
must have a minimum rating of 177 candela, except that when the visible 
notification appliance is wall-mounted or suspended more than 24 inches 
below the ceiling, a minimum rating of 110 candela is permitted.
    (3) A visible notification appliance in an area other than a room 
designed for sleeping must have a minimum rating of 15 candela.
    (f) Testing and maintenance. (1) Each required smoke alarm installed 
at the factory must be operationally tested, after conducting the 
dielectric test specified in Sec. 3280.810(a), in accordance with the 
alarm manufacturer's instructions. A smoke alarm that does not function 
as designed during the test and is not fixed so that it functions 
properly in the next retest must be replaced. Any replacement smoke 
alarm must be successfully tested in accordance with this paragraph.
    (2) Home manufacturers must provide specific written instructions 
for installers on how to inspect and test the operation of smoke alarms 
during installation of the home. These instructions must indicate that 
any smoke

[[Page 121]]

alarm that does not meet the inspection or testing requirements needs to 
be replaced and retested.
    (3) Home manufacturers must provide the homeowner with the alarm 
manufacturer's information describing the operation, method and 
frequency of testing, and proper maintenance of the smoke alarm. This 
information must be provided in same manner and location as the consumer 
manual required by Sec. 3282.207 of this chapter, but does not have to 
be incorporated into the consumer manual. No dealer, distributor, 
construction contractor, or other person shall interfere with the 
distribution of this information

[67 FR 12817, Mar. 19, 2002, as amended at 67 FR 49795, July 31, 2002]



Sec. 3280.209  Fire testing.

    All fire testing conducted in accordance with this subpart shall be 
performed by nationally recognized testing laboratories which have 
expertise in fire technology. In case of dispute, the Secretary shall 
determine if a particular agency is qualified to perform such fire 
tests.

[49 FR 32011, Aug. 9, 1984]



           Subpart D--Body and Frame Construction Requirements



Sec. 3280.301  Scope.

    This subpart covers the minimum requirements for materials, 
products, equipment and workmanship needed to assure that the 
manufactured home will provide:
    (a) Structural strength and rigidity,
    (b) Protection against corrosion, decay, insects and other similar 
destructive forces,
    (c) Protection against hazards of windstorm,
    (d) Resistance to the elements, and
    (e) Durability and economy of maintenance.



Sec. 3280.302  Definitions.

    The following definitions are applicable to subpart D only:
    Anchoring equipment: means straps, cables, turnbuckles, and chains, 
including tensioning devices, which are used with ties to secure a 
manufactured home to ground anchors.
    Anchoring system: means a combination of ties, anchoring equipment, 
and ground anchors that will, when properly designed and installed, 
resist overturning and lateral movement of the manufactured home from 
wind forces.
    Diagonal tie: means a tie intended to primarily resist horizontal 
forces, but which may also be used to resist vertical forces.
    Footing: means that portion of the support system that transmits 
loads directly to the soil.
    Ground anchor: means any device at the manufactured home stand 
designed to transfer manufactured home anchoring loads to the ground.
    Loads: (1) Dead load: means the weight of all permanent construction 
including walls, floors, roof, partition, and fixed service equipment.
    (2) Live load: means the weight superimposed by the use and 
occupancy of the manufactured home, including wind load and snow load, 
but not including dead load.
    (3) Wind load: means the lateral or vertical pressure or uplift on 
the manufactured home due to wind blowing in any direction.
    Main frame: means the structural component on which is mounted the 
body of the manufactured home.
    Pier: means that portion of the support system between the footing 
and manufactured home exclusive of caps and shims.
    Sheathing: means material which is applied on the exterior side of a 
building frame under the exterior weather resistant covering.
    Stabilizing devices: means all components of the anchoring and 
support system such as piers, footings, ties, anchoring equipment, 
ground anchors, and any other equipment which supports the manufactured 
home and secures it to the ground.
    Support system: means a combination of footings, piers, caps, and 
shims that will, when properly installed, support the manufactured home.
    Tie: means straps, cable, or securing devices used to connect the 
manufactured home to ground anchors.

[[Page 122]]

    Vertical tie: means a tie intended to resist the uplifting or 
overturning forces.

[58 FR 55005, Oct. 25, 1993; 59 FR 15113, Mar. 31, 1994]



Sec. 3280.303  General requirements.

    (a) Minimum requirements. The design and construction of a 
manufactured home shall conform with the provisions of this standard. 
Requirements for any size, weight, or quality of material modified by 
the terms of minimum, not less than, at least, and similar expressions 
are minimum standards. The manufacturer or installer may exceed these 
standards provided such deviation does not result in any inferior 
installation or defeat the purpose and intent of this standard.
    (b) Construction. All construction methods shall be in conformance 
with accepted engineering practices to insure durable, livable, and safe 
housing and shall demonstrate acceptable workmanship reflecting 
journeyman quality of work of the various trades.
    (c) Structural analysis. The strength and rigidity of the component 
parts and/or the integrated structure shall be determined by engineering 
analysis or by suitable load tests to simulate the actual loads and 
conditions of application that occur. (See subparts E and J.)
    (d) [Reserved]
    (e) New materials and methods. (1) Any new material or method of 
construction not provided for in this standard and any material or 
method of questioned suitability proposed for use in the manufacture of 
the structure shall nevertheless conform in performance to the 
requirements of this standard.
    (2) Unless based on accepted engineering design for the use 
indicated, all new manufactured home materials, equipment, systems or 
methods of construction not provided for in this standard shall be 
subjected to the tests specified in paragraph (g) of this section.
    (f) Allowable design stress. The design stresses of all materials 
shall conform to accepted engineering practice. The use of materials not 
certified as to strength or stress grade shall be limited to the minimum 
allowable stresses under accepted engineering practice.
    (g) Alternative test procedures. In the absence of recognized 
testing procedures either in these standards or the applicable 
provisions of those standards incorporated by reference, the 
manufacturer electing this option shall develop or cause to be developed 
testing procedures to demonstrate the structural properties and 
significant characteristics of the material, assembly, subassembly 
component or member. Such testing procedures shall become part of the 
manufacturer's approved design. (Refer to Sec. 3280.3.)
    (1) Testing procedures so developed shall be submitted to the 
Department for approval.
    (2) Upon notification of approval, the alternative test procedure is 
considered acceptable.
    (3) Such tests shall be witnessed by an independent licensed 
professional engineer or architect or by a recognized testing 
organization. Copies of the test results shall be kept on file by the 
manufactured home manufacturer.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55005, Oct. 25, 1993; 59 FR 2469, Jan. 14, 1994]



Sec. 3280.304  Materials.

    (a) Dimension and board lumber shall not exceed 19 percent moisture 
content at time of installation.
    (b)(1) Standards for some of the generally used materials and 
methods of construction are listed in the following table.

                                  Steel

    Specification for Aluminum Structures Construction Manual Series--
Section 1, Fifth Edition--1986, The Aluminum Association.
    Specification for Structural Steel Buildings--Allowable Stress 
Design and Plastic Design--AISC--June 1, 1989.
    The following parts of this reference standard are not applicable: 
1.3.3, 1.3.4, 1.3.5, 1.3.6, 1.4.6, 1.5.1.5, 1.5.5, 1.6, 1.7, 1.8, 1.9, 
1.10.4 through 1.10.7, 1.10.9, 1.11, 1.13, 1.14.5, 1.17.7 through 
1.17.9, 1.19.1, 1.19.3, 1.20, 1.21, 1.23.7, 1.24, 1.25.1 through 1.25.5, 
1.26.4, 2.3, 2.4, 2.8 through 2.10.
    Specification for the Design of Cold-Formed Steel Structural 
Members--AISI--1986 Edition With 1989 Addendum.

[[Page 123]]

    The following parts of this reference standard are not applicable: 
3.1.2, 4.2.1, 4.2.4.
    Stainless Steel Cold-Formed Structural Design Manual--AISI-1974.
    The following part of this reference standard is not applicable: 
3.1.2.
    Standard Specifications Load Tables and Weight Tables for Steel 
Joists and Joist Girders, only Sections 1-6 and the table for ``H series 
only'' are applicable--Steel Joist Institute 1992.
    Manual for Structural Applications of Steel Cables for Buildings--
AISI-1973.
    Standard Specification for Strapping, Flat Steel and Seals--ASTM 
D3953-91.

                         Wood and Wood Products

    Basic Hardboard--ANSI/AHA A135.4-1982.
    Prefinished Hardboard Paneling--ANSI/AHA A135.5-1988.
    Hardboard Siding--ANSI/AHA A135.6-1990.
    Interim Voluntary Standard for Hardwood and Decorative Plywood--HPVA 
Interim Standard HP-1-1993.
    Structural Design Guide for Hardwood Plywood Wall Panels--HPMA 
Design Guide HP-SG-86.
    For wood products--Structural Glued Laminated Timber--ANSI/AITC 
A190.1-1992.
    Voluntary Product Standard, Construction and Industrial Plywood--PS-
1-83.
    APA Design/Construction Guide, Residential and Commercial--APA E30M-
1993.
    Design and Fabrication of All-Plywood Beams, Suppl. 5--APA-H 815D-
1989.
    Plywood Design Specification--APA-Y 510Q-1993.
    Design and Fabrication of Glued Plywood-Lumber Beams, Suppl. 2--APA-
S 812P-1992.
    Design and Fabrication of Plywood Curved Panels, Suppl. 1--APA-S 
811M-1990.
    Design and Fabrication of Plywood Sandwich Panels, Suppl. 4--APA-U 
814G-1990.
    Performance Standards and Policies for Structural Use Panels--APA-
PRP-E-108P, E445N-1989.
    Design and Fabrication of Plywood Stressed-Skin Panels, Suppl. 3--
APA-U 813K-1990.
    National Design Specifications for Wood Construction, 1991 Edition, 
With Supplement, Design Values for Wood Construction, AFPA.
    Wood Structural Design Data, 1986 Edition With 1992 Revisions, AFPA.
    Span Tables for Joists and Rafters--PS-20-70, 1993, AFPA.
    Design Values for Joists and Rafters, American Softwood Lumber 
Standard Sizes, 1992, AFPA.
    Design Specifications for Metal Plate Connected Wood Trusses--TPI-
85.
    Wood Particleboard--ANSI A208.1-1989,
    Wood Flush Doors--ANSI/NWWDA I.S.1-87.
    Wood Windows--ANSI/NWWDA I.S.2-87.
    Wood Sliding Patio Doors--NWWDA-I.S.3-88.
    Water Repellent Preservative Non Pressure Treatment for Millwork--
NWWDA-I.S.4-81.
    Standard Test Methods for Puncture and Stiffness of Paperboard, and 
Corrugated and Solid Fiberboard--ASTM D781-68 (73).
    Standard Test Methods for Direct Moisture Content Measurement of 
Wood and Wood-Base Materials--ASTM D4442.
    Standard Test Methods for Use and Calibration of Hand-Held Moisture 
Meters--ASTM D4444-92.

                                  Other

    Standard Specification for Gypsum Wallboard--ASTM C36-93.

                                Fasteners

    Application and Fastening Schedule: Power-Driven, Mechanically 
Driven and Manually Driven Fasteners--HUD-FHA Use of Materials Bulletin-
-UM-25d-73.

                              Unclassified

    American Society of Civil Engineering Minimum Design Loads for 
Buildings and Other Structures--ANSI/ASCE 7-88.
    Performance Standard for Wood-Based Structural Use Panels--PS-2-92,

[[Page 124]]

APA (also known as NIST Standard PS-2-92).
    Safety Performance Specifications and Methods of Test for Safety 
Glazing Materials Used in Building--ANSI Z97.1-1984.
    (2) Materials and methods of construction utilized in the design and 
construction of manufactured homes which are covered by the standards in 
the following table, or any applicable portion thereof shall comply with 
these requirements.
    (3) Engineering analysis and testing methods contained in these 
references shall be utilized to judge conformance with accepted 
engineering practices required in Sec. 3280.303(c).
    (4) Materials and methods of installation conforming to these 
standards shall be considered acceptable when installed in conformance 
with the requirements of this part.
    (5) Materials meeting the standards (or the applicable portion 
thereof) are considered acceptable unless otherwise specified herein or 
unless substantial doubt exists as to conformance.
    (c) Wood products shall be identified as complying with the 
appropriate standards.

[40 FR 58752, Dec. 18, 1975, as amended at 42 FR 961, Jan. 4, 1977. 
Redesignated at 44 FR 20679, Apr. 6, 1979, as amended at 58 FR 55006, 
Oct. 25, 1993; 59 FR 15113, Mar. 31, 1994]



Sec. 3280.305  Structural design requirements.

    (a) General. Each manufactured home shall be designed and 
constructed as a completely integrated structure capable of sustaining 
the design load requirements of this standard, and shall be capable of 
transmitting these loads to stabilizing devices without exceeding the 
allowable stresses or deflections. Roof framing shall be securely 
fastened to wall framing, walls to floor structure, and floor structure 
to chassis to secure and maintain continuity between the floor and 
chassis, so as to resist wind overturning, uplift, and sliding as 
imposed by design loads in this part. Uncompressed finished flooring 
greater than 1/8 inch in thickness shall not extend beneath load-bearing 
walls that are fastened to the floor structure.
    (b) Design loads--(1) Design dead loads. Design dead loads shall be 
the actual dead load supported by the structural assembly under 
consideration.
    (2) Design live loads. The design live loads and wind and snow loads 
shall be as specified in this section and shall be considered to be 
uniformly distributed. The roof live load or snow load shall not be 
considered as acting simultaneously with the wind load and the roof live 
or snow load and floor live loads shall not be considered as resisting 
the overturning moment due to wind.
    (3) When engineering calculations are performed, allowable unit 
stresses may be increased as provided in the documents referenced in 
Sec. 3280.304 except as otherwise indicated in Secs. 3280.304(b)(1) and 
3280.306(a).
    (4) Whenever the roof slope does not exceed 20 degrees, the design 
horizontal wind loads required by Sec. 3280.305(c)(1) may be determined 
without including the vertical roof projection of the manufactured home. 
However, regardless of the roof slope of the manufactured home, the 
vertical roof projection shall be included when determining the wind 
loading for split level or clerestory-type roof systems.
    (c) Wind, snow, and roof loads--(1) Wind loads--design requirements. 
(i) Standard wind loads (Zone I). When a manufactured home is not 
designed to resist the wind loads for high wind areas (Zone II or Zone 
III) specified in paragraph (c)(1)(ii) of this section, the manufactured 
home and each of its wind resisting parts and portions shall be designed 
for horizontal wind loads of not less than 15 psf and net uplift load of 
not less than 9 psf.
    (ii) Wind loads for high wind areas (Zone II and Zone III). When 
designed for high wind areas (Zone II and Zone III), the manufactured 
home, each of its wind resisting parts (including, but not limited to, 
shear walls, diaphragms, ridge beams, and their fastening and anchoring 
systems), and its components and cladding materials (including, but not 
limited to, roof trusses, wall studs, exterior sheathing, roofing and 
siding materials, exterior glazing, and their connections and fasteners) 
shall be designed by a Professional Engineer or Architect to resist:

[[Page 125]]

    (A) The design wind loads for Exposure C specified in ANSI/ASCE 7-
88, ``Minimum Design Loads for Buildings and Other Structures,'' for a 
fifty-year recurrence interval, and a design wind speed of 100 mph, as 
specified for Wind Zone II, or 110 mph, as specified for Wind Zone III 
(Basic Wind Zone Map); or
    (B) The wind pressures specified in the following table:

                     Table of Design Wind Pressures
------------------------------------------------------------------------
                                           Wind zone II    Wind zone III
                 Element                    design wind     design wind
                                           speed 100 MPH   speed 110 MPH
------------------------------------------------------------------------
Anchorage for lateral and vertical
 stability (See Sec.  3280.306(a)):
    Net Horizontal Drag1,2...  \3\ 39  47
     Fastening and Anchorage Systems 1,2             PSF             PSF
    Ridge beams and other Main Roof              -30 PSF         -36 PSF
     Support Beams (Beams supporting
     expanding room sections, etc.).....
Components and cladding:
    Roof trusses \4\ in all areas;           \5\ -39 PSF     \5\ -47 PSF
     trusses shall be doubled within 3'-
     0'' from each end of the roof......
    Exterior roof coverings, sheathing       \5\ -39 PSF     \5\ -47 PSF
     and fastenings \4\,\6\,\7\ in all
     areas except the following.........
        Within 3'-0'' from each gable        \5\ -73 PSF     \5\ -89 PSF
         end (overhang at end wall) of
         the roof or endwall if no
         overhang is provided
         \4\,\6\,\7\....................
        Within 3'-0'' from the ridge and     \5\ -51 PSF     \5\ -62 PSF
         eave (overhang at sidewall) or
         sidewall if no eave is provided
         \4\,\6\,\7\....................
    Eaves (Overhangs at Sidewalls)           \5\ -51 PSF     \5\ -62 PSF
     \4\,\6\,\7\........................
    Gables (Overhangs at Endwalls)           \5\ -73 PSF     \5\ -89 PSF
     \4\,\6\,\7\........................
Wall studs in sidewalls and endwalls,
 exterior windows and sliding glass
 doors (glazing and framing), exterior
 coverings, sheathing and fastenings
 \8\:
        Within 3'-0'' from each corner    48  58
         of the sidewall and endwall....             PSF             PSF
        All other areas.................  38  46
                                                     PSF            PSF
------------------------------------------------------------------------
NOTES:
 
1 The net horizontal drag of 39 PSF to be used in
  calculating Anchorage for Lateral and Vertical Stability and for the
  design of Main Wind Force Resisting Systems is based on a distribution
  of wind pressures of +0.8 or +24 PSF to the windward wall and -0.5 or
  15 PSF to the leeward wall.
2 Horizontal drag pressures need not be applied to roof projections when
  the roof slope does not exceed 20 degrees.
3 + sign would mean pressures are acting towards or on the structure; -
  sign means pressures are acting away from the structure; 
  sign means forces can act in either direction, towards or away from
  the structure.
4 Design values in this ``Table'' are only applicable to roof slopes
  between 10 degrees (nominal 2/12 slope) and 30 degrees.
5 The design uplift pressures are the same whether they are applied
  normal to the surface of the roof or to the horizontal projection of
  the roof.
6 Shingle roof coverings that are secured with 6 fasteners per shingle
  through an underlayment which is cemented to a 3/8'' structural rated
  roof sheathing need not be evaluated for these design wind pressures.
7 Structural rated roof sheathing that is at least 3/8'' in thickness,
  installed with the long dimension perpendicular to roof framing
  supports, and secured with fasteners at 4'' on center within 3'-0'' of
  each gable end or endwall if no overhang is provided and 6'' on center
  in all other areas, need not be evaluated for these design wind
  pressures.
8 Exterior coverings that are secured at 6'' o.c. to a 3/8'' structural
  rated sheathing that is fastened to wall framing members at 6'' on
  center need not be evaluated for these design wind pressures.

    (2) Wind loads--zone designations. The Wind Zone and specific wind 
design load requirements are determined by the fastest basic wind speed 
(mph) within each Zone and the intended location, based on the Basic 
Wind Zone Map, as follows:
    (i) Wind Zone I. Wind Zone I consists of those areas on the Basic 
Wind Zone Map that are not identified in paragraphs (c)(2)(ii) or (iii) 
of this section as being within Wind Zone II or III, respectively.
    (ii) Wind Zone II.....100 mph. The following areas are deemed to be 
within Wind Zone II of the Basic Wind Zone Map:
    Local governments: The following local governments listed by State 
(counties, unless specified otherwise):
    Alabama: Baldwin and Mobile.
    Florida: All counties except those identified in paragraph 
(c)(1)(i)(C) of this section as within Wind Zone III.
    Georgia: Bryan, Camden, Chatham, Glynn, Liberty, McIntosh.
    Louisiana: Parishes of Acadia, Allen, Ascension, Assumption, 
Calcasieu, Cameron, East Baton Rouge, East Feliciana, Evangeline, 
Iberia, Iberville, Jefferson Davis, LaFayette, Livingston, Pointe 
Coupee, St. Helena, St. James, St. John the Baptist, St. Landry, St. 
Martin, St. Tammany,

[[Page 126]]

Tangipahoa, Vermillion, Washington, West Baton Rouge, and West 
Feliciana.
    Maine: Hancock and Washington.
    Massachusetts: Barnstable, Bristol, Dukes, Nantucket, and Plymouth.
    Mississippi: George, Hancock, Harrison, Jackson, Pearl River, and 
Stone.
    North Carolina: Beaufort, Brunswick, Camden, Chowan, Columbus, 
Craven, Currituck, Jones, New Hanover, Onslow, Pamlico, Pasquotank, 
Pender, Perquimans, Tyrrell, and Washington.
    South Carolina: Beaufort, Berkeley, Charleston, Colleton, 
Dorchester, Georgetown, Horry, Jasper, and Williamsburg.
    Texas: Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, 
Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Orange, Refugio, San 
Patricio, and Willacy.
    Virginia: Cities of Chesapeake, Norfolk, Portsmouth, Princess Anne, 
and Virginia Beach.
    (iii) Wind Zone III.....110 mph. The following areas are considered 
to be within Wind Zone III of the Basic Wind Zone Map:
    (A) States and Territories: The entire State of Hawaii, the coastal 
regions of Alaska (as determined by the 90 mph isotach on the ANSI/ASCE 
7-88 map), and all of the U.S. Territories of American Samoa, Guam, 
Northern Mariana Islands, Puerto Rico, Trust Territory of the Pacific 
Islands, and the United States Virgin Islands.
    (B) Local governments: The following local governments listed by 
State (counties, unless specified otherwise):
    Florida: Broward, Charlotte, Collier, Dade, Franklin, Gulf, Hendry, 
Lee, Martin, Manatee, Monroe, Palm Beach, Pinellas, and Sarasota.
    Louisiana: Parishes of Jefferson, La Fourche, Orleans, Plaquemines, 
St. Bernard, St. Charles, St. Mary, and Terrabonne.
    North Carolina: Carteret, Dare, and Hyde.
    (iv) Consideration of local requirements. For areas where local 
building code requirements exceed the design wind speed requirements of 
these standards, the Department will consider the adoption through 
rulemaking of the more stringent requirements of the State or local 
building authority.
    (3) Snow and roof loads. (i) Flat, curved and pitched roofs shall be 
designed to resist the following live loads, applied downward on the 
horizontal projection as appropriate for the design zone marked on the 
manufactured home:

------------------------------------------------------------------------
                                                                 Pounds
                                                                   per
            Zone (see Map in Sec.  3280.305(c)(4))               square
                                                                  foot
------------------------------------------------------------------------
North Zone....................................................        40
Middle Zone...................................................        30
South Zone....................................................        20
------------------------------------------------------------------------

    (ii) For exposures in areas (mountainous or other) where snow or 
wind records or experience indicate significant differences from the 
loads stated above, the Department may establish more stringent 
requirements for homes known to be destined for such areas. For snow 
loads, such requirements are to be based on a roof snow load of 0.6 of 
the ground snow load for areas exposed to wind and a roof snow load of 
0.8 of the ground snow load for sheltered areas.
    (iii) Eaves and cornices shall be designed for a net uplift pressure 
of 2.5 times the design uplift wind pressure cited in 
Sec. 3280.305(c)(1)(i) for Wind Zone I, and for the design pressures 
cited in Sec. 3280.305(c)(1)(ii) for Wind Zones II and III.
    (4) Data plate requirements. The Data Plate posted in the 
manufactured home (see Sec. 3280.5) shall designate the wind and roof 
load zones or, if designed for higher loads, the actual design external 
snow and wind loads for which the home has been designed. The Data Plate 
shall include reproductions of the Load Zone Maps shown in this 
paragraph (c)(4), with any related information. The Load Zone Maps shall 
be not less than either 3\1/2\ in. by 2\1/4\ in., or one-half the size 
illustrated in the Code of Federal Regulations.

[[Page 127]]

[GRAPHIC] [TIFF OMITTED] TR14JA94.000


[[Page 128]]


[GRAPHIC] [TIFF OMITTED] TR20OC97.004

    (d) Design load deflection. (1) When a structural assembly is 
subjected to total design live loads, the deflection for structural 
framing members shall not exceed the following (where L equals the clear 
span between supports or two times the length of a cantilever):


[[Page 129]]


Floor--L/240
Roof and ceiling--L/180
Headers, beams, and girders (vertical load)--L/180
Walls and partitions--L/180

    (2) The allowable eave or cornice deflection for uplift is to be 
measured at the design uplift load of 9 psf for Wind Zone I, and at the 
design uplift pressure cited in paragraph (c)(1)(ii) of this section for 
Wind Zones II and III. The allowable deflection shall be (2xLc)/180, 
where Lc is the measured horizontal eave projection from the wall.
    (e) Fastening of structural systems. (1) Roof framing shall be 
securely fastened to wall framing, walls to floor structure, and floor 
structure to chassis to secure and maintain continuity between the floor 
and chassis, so as to resist wind overturning, uplift, and sliding as 
specified in this part.
    (2) For Wind Zones II and III, roof trusses shall be secured to 
exterior wall framing members (studs), and exterior wall framing members 
(studs) shall be secured to floor framing members, with 26 gage minimum 
steel strapping or brackets or by a combination of 26 gage minimum steel 
strapping or brackets and structural rated wall sheathing that overlaps 
the roof and floor. Steel strapping or brackets shall be installed at a 
maximum spacing of 24 on center in Wind Zone II and at a 
maximum of 16 on center in Wind Zone III. The number and type 
of fasteners used to secure the steel straps or brackets or structural 
sheathing shall be capable of transferring all uplift forces between 
elements being joined.
    (f) Walls. The walls shall be of sufficient strength to withstand 
the load requirements as defined in Sec. 3280.305(c) of this part, 
without exceeding the deflections as specified in Sec. 3280.305(d). The 
connections between the bearing walls, floor, and roof framework members 
shall be fabricated in such a manner as to provide support for the 
material used to enclose the manufactured home and to provide for 
transfer of all lateral and vertical loads to the floor and chassis.
    (1) Except where substantiated by engineering analysis or tests, 
studs shall not be notched or drilled in the middle one-third of their 
length.
    (2) Interior walls and partitions shall be constructed with 
structural capacity adequate for the intended purpose and shall be 
capable of resisting a horizontal load of not less than five pounds per 
square foot. An allowable stress increase of 1.33 times the permitted 
published design values may be used in the design of wood framed 
interior partitions. Finish of walls and partitions shall be securely 
fastened to wall framing.
    (g) Floors. (1) Floor assemblies shall be designed in accordance 
with accepted engineering practice standards to support a minimum 
uniform live load of 40 lb/ft \2\ plus the dead load of the materials. 
In addition (but not simultaneously), floors shall be able to support a 
200-pound concentrated load on a one-inch diameter disc at the most 
critical location with a maximum deflection not to exceed one-eighth 
inch relative to floor framing. Perimeter wood joists of more than six 
inches depth shall be stabilized against overturning from superimposed 
loads as follows: at ends by solid blocking not less than two-inch 
thickness by full depth of joist, or by connecting to a continuous 
header not less than two-inch thickness and not less than the depth of 
the joist with connecting devices; at eight-feet maximum intermediate 
spacing by solid blocking or by wood cross-bridging of not less than one 
inch by three inches, metal cross-bridging of equal strength, or by 
other approved methods.
    (2) Wood, wood fiber or plywood floors or subfloors in kitchens, 
bathrooms (including toilet compartments), laundry areas, water heater 
compartments, and any other areas subject to excessive moisture shall be 
moisture resistant or shall be made moisture resistant by sealing or by 
an overlay of nonabsorbent material applied with water-resistant 
adhesive. Use of one of the following methods would meet this 
requirement:
    (i) Sealing the floor with a water-resistant sealer; or
    (ii) Installing an overlay of a non-absorbent floor covering 
material applied with water-resistant adhesive; or
    (iii) Direct application of a water-resistant sealer to the exposed 
wood floor

[[Page 130]]

area when covered with a non-absorbent overlay; or
    (iv) The use of a non-absorbent floor covering which may be 
installed without a continuous application of a water-resistant adhesive 
or sealant when the floor covering meets the following criteria:
    (A) The covering is a continuous membrane with any seams or patches 
seam bonded or welded to preserve the continuity of the floor covering; 
and
    (B) The floor is protected at all penetrations in these areas by 
sealing with a compatible water-resistant adhesive or sealant to prevent 
moisture from migrating under the nonabsorbent floor covering; and
    (C) The covering is fastened around the perimeter of the subfloor in 
accordance with the floor covering manufacturer's instructions; and,
    (D) The covering is designed to be installed to prevent moisture 
penetration without the use of a water-resistant adhesive or sealer 
except as required in this paragraph (g). The vertical edges of 
penetrations for plumbing shall be covered with a moisture-resistant 
adhesive or sealant. The vertical penetrations located under the bottom 
plates of perimeter walls of rooms, areas, or compartments are not 
required to be sealed; this does not include walls or partitions within 
the rooms or areas.
    (3) Carpet or carpet pads shall not be installed under concealed 
spaces subject to excessive moisture, such as plumbing fixture spaces, 
floor areas under installed laundry equipment. Carpet may be installed 
in laundry space provided:
    (i) The appliances are not provided;
    (ii) The conditions of paragraph (g)(2) of this section are 
followed; and
    (iii) Instructions are provided to remove carpet when appliances are 
installed.
    (4) Except where substantiated by engineering analysis or tests:
    (i) Notches on the ends of joists shall not exceed one-fourth the 
joist depth.
    (ii) Holes bored in joists shall not be within 2 inches of the top 
or bottom of the joist, and the diameter of any such hole shall not 
exceed one-third the depth of the joist.
    (iii) Notches in the top or bottom of the joists shall not exceed 
one-sixth the depth and shall not be located in the middle third of the 
span.
    (5) Bottom board material (with or without patches) shall meet or 
exceed the level of 48 inch-pounds of puncture resistance as tested by 
the Beach Puncture Test in accordance with Standard Test Methods for 
Puncture and Stiffness of Paperboard, and Corrugated and Solid 
Fiberboard, ASTM D-781-1968 (73). The material shall be suitable for 
patches and the patch life shall be equivalent to the material life. 
Patch installation instruction shall be included in the manufactured 
home manufacturer's instructions.
    (h) Roofs. (1) Roofs shall be of sufficient strength to withstand 
the load requirements as defined in Sec. 3280.305 (b) and (c) without 
exceeding the deflections specified in Sec. 3280.305(d). The connections 
between roof framework members and bearing walls shall be fabricated in 
such a manner to provide for the transfer of design vertical and 
horizontal loads to the bearing walls and to resist uplift forces.
    (2) Roofing membranes shall be of sufficient rigidity to prevent 
deflection which would permit ponding of water or separation of seams 
due to wind, snow, ice, erection or transportation forces.
    (3) Cutting of roof framework members for passage of electrical, 
plumbing or mechanical systems shall not be allowed except where 
substantiated by engineering analysis.
    (4) All roof penetrations for electrical, plumbing or mechanical 
systems shall be properly flashed and sealed. In addition, where a metal 
roof membrane is penetrated, a wood backer shall be installed. The 
backer plate shall be not less than \5/16\ inch plywood, with exterior 
glues, secured to the roof framing system beneath the metal roof, and 
shall be of a size to assure that all screws securing the flashing are 
held by the backer plate.
    (i) Frame construction. The frame shall be capable of transmitting 
all design loads to stabilizing devices without exceeding the allowable 
load and deflections of this section. The frame shall also be capable of 
withstanding the effects of transportation shock and vibration without 
degradation as required by subpart J.

[[Page 131]]

    (1) Welded connections. (i) All welds shall be made in accordance 
with the applicable provisions of the Specification for Structural Steel 
Buildings, Allowable Stress Design and Plastic Design, AISC, June 1, 
1989. The Specification for the Design of Cold-Formed Steel Structural 
Members, AISI-1986 with 1989 addendum, and the Stainless Steel Cold-
Formed Structural Design Manual, AISI-1974.
    (ii) Regardless of the provisions of any reference standard 
contained in this subpart, deposits of weld slag or flux shall be 
required to be removed only from welded joints at the following 
locations:
    (A) Drawbar and coupling mechanisms;
    (B) Main member splices, and
    (C) Spring hanger to main member connections.
    (2) Protection of metal frames against corrosion. Metal frames shall 
be made corrosion resistant or protected against corrosion. Metal frames 
may be protected against corrosion by painting.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 44 FR 66195, Nov. 19, 1979; 52 FR 4582, Feb. 12, 1987; 58 
FR 55006, Oct. 25, 1993; 59 FR 2469, Jan. 14, 1994; 59 FR 15113, 15114, 
Mar. 31, 1994; 62 FR 54547, Oct. 20, 1997]



Sec. 3280.306  Windstorm protection.

    (a) Provisions for support and anchoring systems. Each manufactured 
home shall have provisions for support/anchoring or foundation systems 
that, when properly designed and installed, will resist overturning and 
lateral movement (sliding) of the manufactured home as imposed by the 
respective design loads. For Wind Zone I, the design wind loads to be 
used for calculating resistance to overturning and lateral movement 
shall be the simultaneous application of the wind loads indicated in 
Sec. 3280.305(c)(1)(i), increased by a factor of 1.5. The 1.5 factor of 
safety for Wind Zone I is also to be applied simultaneously to both the 
vertical building projection, as horizontal wind load, and across the 
surface of the full roof structure, as uplift loading. For Wind Zones II 
and III, the resistance shall be determined by the simultaneous 
application of the horizontal drag and uplift wind loads, in accordance 
with Sec. 3280.305(c)(1)(ii). The basic allowable stresses of materials 
required to resist overturning and lateral movement shall not be 
increased in the design and proportioning of these members. No 
additional shape or location factors need to be applied in the design of 
the tiedown system. The dead load of the structure may be used to resist 
these wind loading effects in all Wind Zones.
    (1) The provisions of this section shall be followed and the support 
and anchoring systems shall be designed by a Registered Professional 
Engineer or Architect.
    (2) The manufacturer of each manufactured home is required to make 
provision for the support and anchoring systems but is not required to 
provide the anchoring equipment or stabilizing devices. When the 
manufacturer's installation instructions provide for the main frame 
structure to be used as the points for connection of diagonal ties, no 
specific connecting devices need be provided on the main frame 
structure.
    (b) Contents of instructions. (1) The manufacturer shall provide 
printed instructions with each manufactured home specifying the location 
and required capacity of stabilizing devices on which the design is 
based. The manufacturer shall provide drawings and specifications 
certified by a registered professional engineer or architect indicating 
at least one acceptable system of anchoring, including the details of 
required straps or cables, their end connections, and all other devices 
needed to transfer the wind loads from the manufactured home to an 
anchoring or foundation system.
    (2) For anchoring systems, the instructions shall indicate:
    (i) The minimum anchor capacity required;
    (ii) That anchors should be certified by a professional engineer, 
architect, or a nationally recognized testing laboratory as to their 
resistance, based on the maximum angle of diagonal tie and/or vertical 
tie loading (see paragraph (c)(3) of this section) and angle of anchor 
installation, and type of soil in which the anchor is to be installed;
    (iii) That ground anchors should be embedded below the frost line 
and be at

[[Page 132]]

least 12 inches above the water table; and
    (iv) That ground anchors should be installed to their full depth, 
and stabilizer plates should be installed to provide added resistance to 
overturning or sliding forces.
    (v) That anchoring equipment should be certified by a registered 
professional engineer or architect to resist these specified forces in 
accordance with testing procedures in ASTM Standard Specification D3953-
91, Standard Specification for Strapping, Flat Steel and Seals.
    (c) Design criteria. The provisions made for anchoring systems shall 
be based on the following design criteria for manufactured homes.
    (1) The minimum number of ties provided per side of each home shall 
resist design wind loads required in Sec. 3280.305(c)(1).
    (2) Ties shall be as evenly spaced as practicable along the length 
of the manufactured home, with not more than two (2) feet open-end 
spacing on each end.
    (3) Vertical ties or straps shall be positioned at studs. Where a 
vertical tie and a diagonal tie are located at the same place, both ties 
may be connected to a single anchor, provided that the anchor used is 
capable of carrying both loadings, simultaneously.
    (4) Add-on sections of expandable manufactured homes shall have 
provisions for vertical ties at the exposed ends.
    (d) Requirements for ties. Manufactured homes in Wind Zone I require 
only diagonal ties. These ties shall be placed along the main frame and 
below the outer side walls. All manufactured homes designed to be 
located in Wind Zones II and III shall have a vertical tie installed at 
each diagonal tie location.
    (e) Protection requirements. Protection shall be provided at sharp 
corners where the anchoring system requires the use of external straps 
or cables. Protection shall also be provided to minimize damage to 
siding by the cable or strap.
    (f) Anchoring equipment--load resistance. Anchoring equipment shall 
be capable of resisting an allowable working load equal to or exceeding 
3,150 pounds and shall be capable of withstanding a 50 percent overload 
(4,725 pounds total) without failure of either the anchoring equipment 
or the attachment point on the manufactured home.
    (g) Anchoring equipment--weatherization. Anchoring equipment exposed 
to weathering shall have a resistance to weather deterioration at least 
equivalent to that provided by a coating of zinc on steel of not less 
than 0.30 ounces per square foot of surface coated, and in accordance 
with the following:
    (1) Slit or cut edges of zinc-coated steel strapping do not need to 
be zinc coated.
    (2) Type 1, Finish B, Grade 1 steel strapping, 1-1/4 inches wide and 
0.035 inches in thickness, certified by a registered professional 
engineer or architect as conforming with ASTM Standard Specification 
D3953-91, Standard Specification for Strapping, Flat Steel, and Seals.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 52 FR 4583, Feb. 12, 1987; 59 FR 2473, Jan. 14, 1994]



Sec. 3280.307  Resistance to elements and use.

    (a) Exterior coverings shall be of moisture and weather resistive 
materials attached with corrosion resistant fasteners to resist wind, 
snow and rain. Metal coverings and exposed metal structural members 
shall be of corrosion resistant materials or shall be protected to 
resist corrosion. All joints between portions of the exterior covering 
shall be designed, and assembled to protect against the infiltration of 
air and water, except for any designed ventilation of wall or roof 
cavity.
    (b) Joints between dissimilar materials and joints between exterior 
coverings and frames of openings shall be protected with a compatible 
sealant suitable to resist infiltration of air or water.
    (c) Where adjoining materials or assemblies of materials are of such 
nature that separation can occur due to expansion, contraction, wind 
loads or other loads induced by erection or transportation, sealants 
shall be of a type that maintains protection against infiltration or 
penetration by air, moisture or vermin.

[[Page 133]]

    (d) Exterior surfaces shall be sealed to resist the entrance of 
rodents.



Sec. 3280.308  Formaldehyde emission controls for certain wood products.

    (a) Formaldehyde emission levels. All plywood and particleboard 
materials bonded with a resin system or coated with a surface finish 
containing formaldehyde shall not exceed the following formaldehyde 
emission levels when installed in manufactured homes:
    (1) Plywood materials shall not emit formaldehyde in excess of 0.2 
parts per million (ppm) as measured by the air chamber test method 
specified in Sec. 3280.406.
    (2) Particleboard materials shall not emit formaldehyde in excess of 
0.3 ppm as measured by the air chamber test specified in Sec. 3280.406.
    (b) Product certification and continuing qualification. All plywood 
and particleboard materials to be installed in manufactured homes which 
are bonded with a resin system or coated with a surface finish 
containing formaldehyde, other than an exclusively phenol-formaldehyde 
resin system or finish, shall be certified by a nationally recognized 
testing laboratory as complying with paragraph (a) of this section.
    (1) Separate certification shall be done for each plant where the 
particleboard is produced or where the plywood or particleboard is 
surface-finished.
    (2) To certify plywood or particleboard, the testing laboratory 
shall witness or conduct the air chamber test specified in Sec. 3280.406 
on randomly selected panels initially and at least quarterly thereafter.
    (3) The testing laboratory must approve a written quality control 
plan for each plant where the particleboard is produced or finished or 
where the plywood is finished. The quality control plan must be designed 
to assure that all panels comply with paragraph (a) of this section. The 
plan must establish ongoing procedures to identify increases in the 
formaldehyde emission characteristics of the finished product resulting 
from the following changes in production.
    (i) In the case of plywood:
    (A) The facility where the unfinished panels are produced is 
changed;
    (B) The thickness of the panels is changed so that the panels are 
thinner; or
    (C) The grooving pattern on the panels is changed so that the 
grooves are deeper or closer together.
    (ii) In the case of particleboard:
    (A) The resin formulation is changed so that the formaldehyde-to-
urea ratio is increased;
    (B) The amount of formaldehyde resin used is increased; or
    (C) The press time is decreased.
    (iii) In the case of plywood or particleboard:
    (A) The finishing or top coat is changed and the new finishing or 
top coat has a greater formaldehyde content; or
    (B) The amount of finishing or top coat used on the panels is 
increased, provided that such finishing or top coat contains 
formaldehyde.
    (4) The testing laboratory shall periodically visit the plant to 
monitor quality control procedures to assure that all certified panels 
meet the standard.
    (5) To maintain its certification, plywood or particleboard must be 
tested by the air chamber test specified in Sec. 3280.406 whenever one 
of the following events occurs:
    (i) In the case of particleboard, the resin formulation is changed 
so that the formaldehyde-to-urea ratio is increased; or
    (ii) In the case of particleboard or plywood, the finishing or top 
coat is changed and the new finishing or top coat contains formaldehyde; 
or
    (iii) In the case of particleboard or plywood, the testing 
laboratory determines that an air chamber test is necessary to assure 
that panels comply with paragraph (a) of this section.
    (6) In the event that an air chamber test measures levels of 
formaldehyde from plywood or particleboard in excess of those permitted 
under paragraph (a) of this section, then the tested product's 
certification immediately lapses as of the date of production of the 
tested panels. No panel produced on the same date as the tested panels 
or on any day thereafter may be used or

[[Page 134]]

certified for use in manufactured homes.
    (i) Provided, however, that a new product certification may be 
obtained by testing randomly selected panels which were produced on any 
day following the date of production of the tested panels. If such 
panels pass the air chamber test specified in Sec. 3280.406, then the 
plywood or particleboard produced on that day and subsequent days may be 
used and certified for use in manufactured homes.
    (ii) Provided further, that plywood or particleboard produced on the 
same day as the tested panels, and panels produced on subsequent days, 
if not certified pursuant to paragraph (b)(4)(i) of this section, may be 
used in manufactured homes only under the following circumstances:
    (A) Each panel is treated with a scavenger, sealant, or other means 
of reducing formaldehyde emissions which does not adversely affect the 
structural quality of the product; and
    (B) Panels randomly selected from the treated panels are tested by 
and pass the air chamber test specified in Sec. 3280.406.
    (c) Panel identification. Each plywood and particleboard panel to be 
installed in manufactured homes which is bonded or coated with a resin 
system containing formaldehyde, other than an exclusively phenol-
formaldehyde resin system, shall be stamped or labeled so as to identify 
the product manufacturer, date of production and/or lot number, and the 
testing laboratory certifying compliance with this section.
    (d) Treatment after certification. If certified plywood or 
particleboard subsequently is treated with paint, varnish, or any other 
substance containing formaldehyde, then the certification is no longer 
valid. In such a case, each stamp or label placed on the panels pursuant 
to paragraph (c) of this section must be obliterated. In addition, the 
treated panels may be recertified and reidentified in accordance with 
paragraphs (b) and (c) of this section.

[49 FR 32011, Aug. 9, 1984]



Sec. 3280.309  Health Notice on formaldehyde emissions.

    (a) Each manufactured home shall have a Health Notice on 
formaldehyde emissions prominently displayed in a temporary manner in 
the kitchen (i.e., countertop or exposed cabinet face). The Notice shall 
read as follows:

                         Important Health Notice

    Some of the building materials used in this home emit formaldehyde. 
Eye, nose, and throat irritation, headache, nausea, and a variety of 
asthma-like symptoms, including shortness of breath, have been reported 
as a result of formaldehyde exposure. Elderly persons and young 
children, as well as anyone with a history of asthma, allergies, or lung 
problems, may be at greater risk. Research is continuing on the possible 
long-term effects of exposure to formaldehyde.
    Reduced ventilation resulting from energy efficiency standards may 
allow formaldehyde and other contaminants to accumulate in the indoor 
air. Additional ventilation to dilute the indoor air may be obtained 
from a passive or mechanical ventilation system offered by the 
manufacturer. Consult your dealer for information about the ventilation 
options offered with this home.
    High indoor temperatures and humidity raise formaldehyde levels. 
When a home is to be located in areas subject to extreme summer 
temperatures, an air-conditioning system can be used to control indoor 
temperature levels. Check the comfort cooling certificate to determine 
if this home has been equipped or designed for the installation of an 
air-conditioning system.
    If you have any questions regarding the health effects of 
formaldehyde, consult your doctor or local health department.

    (b) The Notice shall be legible and typed using letters at least \1/
4\ inch in size. The title shall be typed using letters at least \3/4\ 
inch in size.
    (c) The Notice shall not be removed by any party until the entire 
sales transaction has been completed (refer to part 3282--Manufactured 
Home Procedural and Enforcement Regulations for provisions regarding a 
sales transaction).
    (d) A copy of the Notice shall be included in the Consumer Manual 
(refer to part 3283--Manufactured Home Consumer Manual Requirements).

[49 FR 32012, Aug. 9, 1984, as amended at 54 FR 46049, Nov. 1, 1989; 58 
FR 55007, Oct. 25, 1993]

[[Page 135]]



                           Subpart E--Testing



Sec. 3280.401  Structural load tests.

    Every structural assembly tested shall be capable of meeting the 
Proof Load Test or the Ultimate Load Test as follows:
    (a) Proof load tests. Every structural assembly tested shall be 
capable of sustaining its dead load plus superimposed live loads equal 
to 1.75 times the required live loads for a period of 12 hours without 
failure. Tests shall be conducted with loads applied and deflections 
recorded in \1/4\ design live load increments at 10-minute intervals 
until 1.25 times design live load plus dead load has been reached. 
Additional load shall then be applied continuously until 1.75 times 
design live load plus dead load has been reached. Assembly failure shall 
be considered as design live load deflection (or residual deflection 
measured 12 hours after live load removal) which is greater than the 
limits set in Sec. 3280.305(d), rupture, fracture, or excessive 
yielding. An assembly to be tested shall be of the minimum quality of 
materials and workmanship of the production. Each test assembly, 
component or subassembly shall be identified as to type and quality or 
grade of material. All assemblies, components or subassemblies 
qualifying under this section shall be subject to a continuing 
qualification testing program acceptable to the Department.
    (b) Ultimate load tests. Ultimate load tests shall be performed on a 
minimum of three assemblies or components to generally evaluate the 
structural design. Every structural assembly or component tested shall 
be capable of sustaining its total dead load plus the design live load 
increased by a factor of safety of at least 2.5. A factor of safety 
greater than 2.5 shall be used when required by an applicable reference 
standard in Sec. 3280.304(b)(1). Tests shall be conducted with loads 
applied and deflections recorded in \1/4\ design live load increments at 
10-minute intervals until 1.25 times design live load plus dead load has 
been reached. Additional loading shall then be applied continuously 
until failure occurs or the total of the factor of safety times the 
design live load plus the dead load is reached. Assembly failure shall 
be considered as design live load deflection greater than the limits set 
in Sec. 3208.305(d), rupture, fracture, or excessive yielding. 
Assemblies to be tested shall be representative of average quality or 
materials and workmanship of the production. Each test assembly, 
component, or sub-assembly shall be identified as to type and quality or 
grade of material. All assemblies, components, or sub-assemblies 
qualifying under this section shall be subject to a periodic 
qualification testing program acceptable to the Department.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55007, Oct. 25, 1993]



Sec. 3280.402  Test procedure for roof trusses.

    (a) Roof load tests. The following is an acceptable test procedure, 
consistent with the provisions of Sec. 3280.401, for roof trusses that 
are supported at the ends and support design loads. Where roof trusses 
act as support for other members, act as cantilevers, or support 
concentrated loads, they shall be tested accordingly.
    (b) General. Trusses may be tested in pairs or singly in a suitable 
test facility. When tested singly, simulated lateral support of the test 
assembly may be provided, but in no case shall this lateral support 
exceed that which is specified for the completed manufactured home. When 
tested in pairs, the trusses shall be spaced at the design spacing and 
shall be mounted on solid support accurately positioned to give the 
required clear span distance (L) as specified in the design. The top and 
bottom chords shall be braced and covered with the material, with 
connections or method of attachment, as specified by the completed 
manufactured home.
    (1) As an alternate test procedure, the top chord may be sheathed 
with \1/4\ inch by 12 inch plywood strips. The plywood strips shall be 
at least long enough to cover the top chords of the trusses at the 
designated design truss spacing. Adjacent plywood strips must be 
separated by at least \1/8\ inch. The plywood strip shall be nailed with 
4d nails or equivalent staples not closer than 8 inches on center along 
the top

[[Page 136]]

chord. The bottom chords of the adjacent trusses may be either:
    (i) Unbraced,
    (ii) Laterally braced together (not cross braced) with 
1x2 stripping not closer than 24 inches on center 
nailed with only one 6d nail at each truss, or
    (iii) Covered with the material, with connections or methods of 
attachment, as specified for the completed manufactured home.
    (2) Truss deflections will be measured relative to a taut wire 
running over the support and weighted at the end to insure constant 
tension or other approved methods. Deflections will be measured at the 
two quarter points and at midspan. Loading shall be applied to the top 
chord through a suitable hydraulic, pneumatic, or mechanical system, 
masonry units, or weights to simulate design loads. Load units for 
uniformly distributed loads shall be separated so that arch action does 
not occur, and shall be spaced not greater than 12 inches on center so 
as to simulate uniform loading.
    (c) Nondestructive test procedure--(1) Dead load plus live load. (i) 
Noting figure A-1, measure and record initial elevation of the truss in 
test position at no load.

[[Page 137]]

[GRAPHIC] [TIFF OMITTED] TC17OC91.008

    (ii) Apply load units to the top chord of the truss equal to the 
full dead load of roof and ceiling. Measure and record deflections.
    (iii) Maintaining the dead load, add live load in approximate \1/4\ 
design live load increments. Measure the deflections after each loading 
increment.

[[Page 138]]

Apply incremental loads at a uniform rate such that approximately one-
half hour is required to establish the total design load condition. 
Measure and record the deflections five minutes after loads have been 
applied. The maximum deflection due to design live load (deflection 
measured in step (iii) minus step (ii)) shall not exceed L/180, where L 
is a clear span measured in the same units.
    (iv) Continue to load truss to dead load plus 1.75 times the design 
live load. Maintain this loading for 12 hours and inspect the truss for 
failure.
    (v) Remove the total superimposed live load. Trusses not recovering 
to at least the L/180 position within 12 hours shall be considered as 
failing.
    (2) Uplift loads. This test shall only be required for truss designs 
which may be critical under uplift load conditions.
    (i) Measure and record initial elevation of the truss in an inverted 
test position at no load. Bottom chord of the truss shall be mounted in 
the horizontal position.
    (ii) Apply the uplift load as stated in Sec. 3280.305(c) to the 
bottom chord of the truss. Measure and record the deflections 5 minutes 
after the load has been applied.
    (iii) Continue to load the truss to 1.75 times the design uplift 
load. Maintain this load for 3 hours and inspect the truss for failure.
    (iv) Remove applied loads and within three hours the truss must 
recover to at least L/180 position, where L is a clear span measured in 
the same units.
    (d) Destructive test procedure. (1) Destructive tests shall be 
performed on three trusses to generally evaluate the truss design.
    (2) Noting figure A-1, apply the load units to the top chord of the 
truss assembly equal to full dead load of roof and ceiling. Measure and 
record deflections. Then apply load and record deflections in \1/4\ 
design live load increments at 10-minute intervals until 1.25 times 
design live load plus dead load has been reached.
    (3) Additional loading shall then be applied continuously until 
failure occurs or the factor of safety times the design live load plus 
the dead load is reached.
    (4) Assembly failure shall be considered as design live load 
deflection greater than the limits set in Sec. 3280.305(d), rupture, 
fracture, or excessive yielding.
    (5) The assembly shall be capable of sustaining the dead load plus 
the applicable factor of safety times the design live load (the 
applicable factor of safety for wood trusses shall be taken as 2.50).
    (e) Trusses qualifying under the nondestructive test procedure. 
Tests Sec. 3208.402(c) (1) and (2) (when required), shall be subject to 
a continuing qualification testing program acceptable to the Department. 
Trusses qualifying under the destructive test procedures, Tests 
Sec. 3280.402 (c)(2) (when required), and (d), shall be subject to 
periodic tests only.

[40 FR 58752, Dec. 18, 1975, as amended at 42 FR 961, Jan. 4, 1977. 
Redesignated at 44 FR 20679. Apr. 6, 1979, as amended at 58 FR 55008, 
Oct. 25, 1993]



Sec. 3280.403  Standard for windows and sliding glass doors used in manufactured homes.

    (a) Scope. This section sets the requirements for prime windows and 
sliding glass doors except for windows used in entry doors. Windows so 
mounted are components of the door and thus are excluded from this 
standard.
    (b) Standard. All primary windows and sliding glass doors shall 
comply with AAMA Standard 1701.2-1985, Primary Window and Sliding Glass 
Door Voluntary Standard for Utilization in Manufactured Housing, except 
that by January 17, 1995, the exterior and interior pressure tests shall 
be conducted at the design wind loads required for components and 
cladding specified in Sec. 3280.305(c)(1).
    (c) Installation. All primary windows and sliding glass doors shall 
be installed in a manner which allows proper operation and provides 
protection against the elements (see Sec. 3280.307).
    (d) Glass. (1) Safety glazing materials, where used, shall meet ANSI 
Z97.1-1984, ``Safety Performance Specifications and Methods of Test for 
Safety Glazing Materials Used in Buildings.''

[[Page 139]]

    (2) Sealed insulating glass, where used, shall meet all performance 
requirements for Class C in accordance with ASTM E-774-92, Standard 
Specification for Sealed Insulating Glass Units. The sealing system 
shall be qualified in accordance with ASTM E-773-88 Standard Test 
Methods for Seal Durability of Sealed Insulating Glass Units. Each glass 
unit shall be permanently identified with the name of the insulating 
glass manufacturer.
    (e) Certification. All primary windows and sliding glass doors to be 
installed in manufactured homes shall be certified as complying with 
AAMA Standard 1701.2-1985. As of January 17, 1995, this certification 
must be based on tests conducted at the design wind loads specified in 
Sec. 3280.305(c)(1).
    (1) All such windows and doors shall show evidence of certification 
by affixing a quality certification label to the product in accordance 
with ANSI Z34.1-1987, ``For Certification-Third-Party Certification 
Program.''
    (2) In determining certifiability of the products, an independent 
quality assurance agency shall conduct preproduction specimen tests in 
accordance with AAMA 1702.2-1985. Further, such agency shall inspect the 
product manufacturer's facility at least twice per year.
    (f) Protection of primary window and sliding glass door openings in 
high wind areas. For homes designed to be located in Wind Zones II and 
III, manufacturers shall design exterior walls surrounding the primary 
window and sliding glass door openings to allow for the installation of 
shutters or other protective covers, such as plywood, to cover these 
openings. Although not required, the Department encourages manufacturers 
to provide the shutters or protective covers and to install receiving 
devices, sleeves, or anchors for fasteners to be used to secure the 
shutters or protective covers to the exterior walls. If the manufacturer 
does not provide shutters or other protective covers to cover these 
openings, the manufacturer must provide to the homeowner instructions 
for at least one method of protecting primary window and sliding glass 
door openings. This method must be capable of resisting the design wind 
pressures specified in Sec. 3280.305 without taking the home out of 
conformance with the standards in this part. These instructions must be 
included in the printed instructions that accompany each manufactured 
home. The instructions shall also indicate whether receiving devices, 
sleeves, or anchors, for fasteners to be used to secure the shutters or 
protective covers to the exterior walls, have been installed or provided 
by the manufacturer.

[52 FR 4583, Feb. 12, 1987, as amended at 52 FR 35543, Sept. 22, 1987; 
58 FR 55009, Oct. 25, 1993; 59 FR 2474, Jan. 14, 1994]



Sec. 3280.404  Standard for egress windows and devices for use in manufactured homes.

    (a) Scope and purpose. The purpose of this section is to establish 
the requirements for the design, construction, and installation of 
windows and approved devices intended to be used as an emergency exit 
during conditions encountered in a fire or similar disaster.
    (b) Performance. Egress windows including auxiliary frame and seals, 
if any, shall meet all requirements of AAMA Standard 1701.2-1985, 
Primary Window and Sliding Glass Door Voluntary Standard for Utilization 
in Manufactured Housing and AAMA Standard 1704-1985, Voluntary Standard 
Egress Window Systems for Utilization in Manufactured--Housing, except 
that by January 17, 1995, the exterior and interior pressure tests for 
components and cladding shall be conducted at the design wind loads 
required by Sec. 3280.305(c)(1).
    (c) Installation. (1) The installation of egress windows or devices 
shall be installed in a manner which allows for proper operation and 
provides protection against the elements. (See Sec. 3280.307.)
    (2) An operational check of each installed egress window or device 
shall be made at the manufactured home factory. All egress windows and 
devices shall be openable to the minimum required dimension without 
binding or requiring the use of tools. Any window or device failing this 
check shall be repaired or replaced. A repaired window shall conform to 
its certification. Any repaired or replaced window or device shall pass 
the operational check.

[[Page 140]]

    (d) Operating instructions. Operating instructions shall be affixed 
to each egress window and device and carry the legend ``Do Not Remove.''
    (e) Certification of egress windows and devices. Egress windows and 
devices shall be listed in accordance with the procedures and 
requirements of AAMA Standard 1704-1985. As of January 17, 1995, this 
certification must be based on tests conducted at the design wind loads 
specified in Sec. 3280.305(c)(1).
    (f) Protection of egress window openings in high wind areas. For 
homes designed to be located in Wind Zones II and III, manufacturers 
shall design exterior walls surrounding the egress window openings to 
allow for the installation of shutters or other protective covers, such 
as plywood, to cover these openings. Although not required, the 
Department encourages manufacturers to provide the shutters or 
protective covers and to install receiving devices, sleeves, or anchors 
for fasteners to be used to secure the shutters or protective covers to 
the exterior walls. If the manufacturer does not provide shutters or 
other protective covers to cover these openings, the manufacturer must 
provide to the homeowner instructions for at least one method of 
protecting egress window openings. This method must be capable of 
resisting the design wind pressures specified in Sec. 3280.305 without 
taking the home out of conformance with the standards in this part. 
These instructions must be included in the printed instructions that 
accompany each manufactured home. The instructions shall also indicate 
whether receiving devices, sleeves, or anchors, for fasteners to be used 
to secure the shutters or protective covers to the exterior walls, have 
been installed or provided by the manufacturer.

[52 FR 4583, Feb. 12, 1987, as amended at 59 FR 2474, Jan. 14, 1994]



Sec. 3280.405  Standard for swinging exterior passage doors for use in manufactured homes.

    (a) Introduction. This standard applies to all exterior passage door 
units, excluding sliding doors and doors used for access to utilities 
and compartments. This standard applies only to the door frame 
consisting of jambs, head and sill and the attached door or doors.
    (b) Performance requirements. The design and construction of 
exterior door units shall meet all requirements of AAMA 1702.2-1985, 
Swinging Exterior Passage Doors Voluntary Standard for Utilization in 
Manufactured--Housing.
    (c) Materials and methods. Any material or method of construction 
shall conform to the performance requirements as outlined in paragraph 
(b) of this section. Wood materials or wood based materials shall also 
conform to the following:
    (1) Wood. Doors shall conform to the type 1 requirements of ANSI/
NWWDA I.S.1-87, Wood Flush Doors.
    (2) Plywood. Plywood shall be exterior type and preservative treated 
in accordance with NWWDA I.S.4-81, Water Repellent Preservative Non-
Pressure Treatment for Millwork.
    (d) Exterior doors. All swinging exterior doors shall be installed 
in a manner which allows proper operation and provides protection 
against the elements (see Sec. 3280.307).
    (e) Certification. All swinging exterior doors to be installed in 
manufactured homes shall be certified as complying with AAMA Standard 
1702.2-1985.
    (1) All such doors shall show evidence of certification by affixing 
a quality certification label to the product in accordance with ANSI 
Z34.1-1982, ``For Certification-Third-Party Certification Program.''
    (2) In determining certifiability of the products, an independent 
quality assurance agency shall conduct preproduction specimen test in 
accordance with AAMA 1701.2-1985. Further, such agency shall inspect the 
product manufacturer's facility at least twice per year.
    (f) Protection of exterior doors in high wind areas. For homes 
designed to be located in Wind Zones II and III, manufacturers shall 
design exterior walls surrounding the exterior door openings to allow 
for the installation of shutters or other protective covers, such as 
plywood, to cover these openings. Although not required, the Department 
encourages manufacturers to provide the shutters or protective covers 
and to install receiving devices, sleeves, or

[[Page 141]]

anchors for fasteners to be used to secure the shutters or protective 
covers to the exterior walls. If the manufacturer does not provide 
shutters or other protective covers to cover these openings, the 
manufacturer must provide to the homeowner instructions for at least one 
method of protecting exterior door openings. This method must be capable 
of resisting the design wind pressures specified in Sec. 3280.305 
without taking the home out of conformance with the standards in this 
part. These instructions must be included in the printed instructions 
that accompany each manufactured home. The instructions shall also 
indicate whether receiving devices, sleeves, or anchors, for fasteners 
to be used to secure the shutters or protective covers to the exterior 
walls, have been installed or provided by the manufacturer.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 52 FR 4583, Feb. 12, 1987; 52 FR 35543, Sept. 22, 1987; 58 
FR 55009, Oct. 25, 1993; 59 FR 2474, Jan. 14, 1994]



Sec. 3280.406  Air chamber test method for certification and qualification of formaldehyde emission levels.

    (a) Preconditioning. Preconditioning of plywood or particleboard 
panels for air chamber tests shall be initiated as soon as practicable 
but not in excess of 30 days after the plywood or particleboard is 
produced or surface-finished, whichever is later, using randomly 
selected panels.
    (1) If preconditioning is to be initiated more than two days after 
the plywood or particleboard is produced or surface-finished, whichever 
is later, the panels must be dead-stacked or air-tight wrapped until 
preconditioning is initiated.
    (2) Panels selected for testing in the air chamber shall not be 
taken from the top or botton of the stack.
    (b) Testing. Testing shall be conducted in accordance with the 
Standard Test Method for Determining Formaldehyde Levels from Wood 
Products Under Defined Test Conditions Using a Large Chamber, ASTM E-
1333-90, with the following exceptions:
    (1) The chamber shall be operated indoors.
    (2) Plywood and particleboard panels shall be individually tested in 
accordance with the following loading ratios:
    (i) Plywood--0.29 Ft2/Ft3, and
    (ii) Particleboard--0.13 Ft2/Ft3.
    (3) Temperature to be maintained inside the chamber shall be 77 deg. 
plus or minus 2  deg.F.
    (4) The test concentration (C) shall be standardized to a level 
(CO) at a temperature (tO) of 77  deg.F and 50% 
relative humidity (HO) by the following formula:

C = CO x [1 + Ax (H - HO)] x 
    e-R(1 / t - 1 / t O)

where:

C = Test formaldehyde concentration
CO = Standardized formaldehyde concentration
e = Natural log base
R = Coefficient of temperature (9799)
t = Actual test condition temperature (O K)
tO = Standardized temperature (O K)
A = Coefficient of humidity (0.0175)
H = Actual relative humidity (%)
HO = Standardized relative humidity (%)


The standardized level (CO) is the concentration used to 
determine compliance with Sec. 3280.308(a).
    (5) The air chamber shall be inspected and recalibrated at least 
annually to insure its proper operation under test conditions.

[49 FR 32012, Aug. 9, 1984, as amended at 58 FR 55009, Oct. 25, 1993]



                      Subpart F--Thermal Protection



Sec. 3280.501  Scope.

    This subpart sets forth the requirements for condensation control, 
air infiltration, thermal insulation and certification for heating and 
comfort cooling.



Sec. 3280.502  Definitions.

    (a) The following definitions are applicable to subpart F only:
    (1) Pressure envelope means that primary air barrier surrounding the 
living space which serves to limit air leakage. In construction using 
ventilated cavities, the pressure envelope is the interior skin.
    (2) Thermal envelope area means the sum of the surface areas of 
outside walls, ceiling and floor, including all openings. The wall area 
is measured by

[[Page 142]]

multiplying outside wall lengths by the inside wall height from floor to 
ceiling. The floor and ceiling areas are considered as horizontal 
surfaces using exterior width and length.



Sec. 3280.503  Materials.

    Materials used for insulation shall be of proven effectiveness and 
adequate durability to assure that required design conditions concerning 
thermal transmission are attained.



Sec. 3280.504  Condensation control and installation of vapor retarders.

    (a) Ceiling vapor retarders. (1) In Uo Value Zones 2 and 3, ceilings 
shall have a vapor retarder with a permanence of not greater than 1 perm 
(as measured by ASTM E-96-93 Standard Test Methods for Water Vapor 
Transmission of Materials) installed on the living space side of the 
roof cavity.
    (2) For manufactured homes designed for Uo Value Zone 1, the vapor 
retarder may be omitted.
    (b) Exterior walls. (1) Exterior walls shall have a vapor barrier 
not greater than 1 perm (dry cup method) installed on the living space 
side of the wall, or
    (2) Unventilated wall cavities shall have an external covering and/
or sheathing which forms the pressure envelope. The covering and/or 
sheathing shall have a combined permeance of not less than 5.0 perms. In 
the absence of test data, combined permeance may be computed using the 
formula:

PTotal=(1/[(1/P1)+(1/P2)])

where P1 and P2 are the permeance values of the 
exterior covering and sheathing in perms.


Formed exterior siding applied in sections with joints not caulked or 
sealed shall not be considered to restrict water vapor transmission, or
    (3) Wall cavities shall be constructed so that ventilation is 
provided to dissipate any condensation occurring in these cavities.
    (c) Attic or roof ventilation. (1) Attic and roof cavities shall be 
vented in accordance with one of the following:
    (i) A minimum free ventilation area of not less than 1/300 of the 
attic or roof cavity floor area. At least 50 percent of the required 
free ventilation area shall be provided by ventilators located in the 
upper portion of the space to be ventilated. At least 40 percent shall 
be provided by eave, soffit or low gable vents. The location and spacing 
of the vent openings and ventilators shall provide cross-ventilation to 
the entire attic or roof cavity space. A clear air passage space having 
a minimum height of 1 inch shall be provided between the top of the 
insulation and the roof sheathing or roof covering. Baffles or other 
means shall be provided where needed to insure the 1 inch height of the 
clear air passage space is maintained.
    (ii) A mechanical attic or roof ventilation system may be installed 
instead of providing the free ventilation area when the mechanical 
system provides a minimum air change rate of 0.02 cubic feet per minute 
(cfm) per sq. ft. of attic floor area. Intake and exhaust vents shall be 
located so as to provide air movement throughout space.
    (2) Single section manufactured homes constructed with metal roofs 
and having no sheathing or underlayment installed, are not required to 
be provided with attic or roof cavity ventilation provided that the air 
leakage paths from the living space to the roof cavity created by 
electrical outlets, electrical junctions, electrical cable penetrations, 
plumbing penetrations, flue pipe penetrations and exhaust vent 
penetrations are sealed.
    (3) Parallel membrane roof section of a closed cell type 
construction are not required to be ventilated.
    (4) The vents provided for ventilating attics and roof cavities 
shall be designed to resist entry of rain and insects.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55009, Oct. 25, 1993]



Sec. 3280.505  Air infiltration.

    (a) Envelope air infiltration. The opaque envelope shall be designed 
and constructed to limit air infiltration to the living area of the 
home. Any design, material, method or combination thereof which 
accomplishes this goal may be used. The goal of the infiltration control 
criteria is to reduce heat loss/heat gain due to infiltration as much as 
possible without impinging on

[[Page 143]]

health and comfort and within the limits of reasonable economics.
    (1) Envelope penetrations. Plumbing, mechanical and electrical 
penetrations of the pressure envelope not exempted by this part, and 
installations of window and door frames shall be constructed or treated 
to limit air infiltration. Penetrations of the pressure envelope made by 
electrical equipment, other than distribution panel boards and cable and 
conduit penetrations, are exempt from this requirement. Cable 
penetrations through outlet boxes are considered exempt.
    (2) Joints between major envelope elements. Joints not designed to 
limit air infiltration between wall-to-wall, wall-to-ceiling and wall-
to-floor connections shall be caulked or otherwise sealed. When walls 
are constructed to form a pressure envelope on the outside of the wall 
cavity, they are deemed to meet this requirement.



Sec. 3280.506  Heat loss/heat gain.

    The manufactured home heat loss/heat gain shall be determined by 
methods outlined in Secs. 3280.508 and 3280.509. The Uo (Coefficient of 
heat transmission) value zone for which the manufactured home is 
acceptable and the lowest outdoor temperature to which the installed 
heating equipment will maintain a temperature of 70 F shall be certified 
as specified in Sec. 3280.510 of this subpart. The Uo value zone shall 
be determined from the map in figure 506.

[[Page 144]]

[GRAPHIC] [TIFF OMITTED] TC17OC91.005

    (a) Coefficient of heat transmission. The overall coefficient of 
heat transmission (Uo) of the manufactured home for the respective zones 
and an indoor design temperature of 70 F, including internal and 
external ducts, and excluding infiltration, ventilation and condensation 
control, shall not exceed

[[Page 145]]

the Btu/(hr.) (sq. ft.) (F) of the manufactured home envelope are as 
tabulated below:

------------------------------------------------------------------------
                                            Maximum coefficient of heat
              Uo value zone                         transmission
------------------------------------------------------------------------
1........................................  0.116 Btu/(hr.) (sq. ft.)
                                            (F).
2........................................  0.096 Btu/(hr.) (sq. ft.)
                                            (F).
3........................................  0.079 Btu/(hr.) (sq. ft.)
                                            (F).
------------------------------------------------------------------------

    (b) To assure uniform heat transmission in manufactured homes, 
cavities in exterior walls, floors, and ceilings shall be provided with 
thermal insulation.
    (c) Manufactured homes designed for Uo Value Zone 3 shall be factory 
equipped with storm windows or insulating glass.

[58 FR 55009, Oct. 25, 1993; 59 FR 15113, Mar. 31, 1994]



Sec. 3280.507  Comfort heat gain.

    Information necessary to calculate the home cooling load shall be 
provided as specified in this part.
    (a) Transmission heat gains. Homes complying with this section shall 
meet the minimum heat loss transmission coefficients specified in 
Sec. 3280.506(a).



Sec. 3280.508  Heat loss, heat gain and cooling load calculations.

    (a) Information, values and data necessary for heat loss and heat 
gain determinations shall be taken from the 1989 ASHRAE Handbook of 
Fundamentals, chapters 20 through 27. The following portions of those 
chapters are not applicable:

21.1  Steel Frame Construction
21.2  Masonry Construction
21.3  Floor Systems
21.14  Pipes
21.16  Tanks, Vessels and Equipment
21.17  Refrigerated Rooms and Buildings
22.15  Mechanical and Industrial Systems
23.13  Commercial Building Envelope Leakage
25.4  Calculation of Heat Loss from Crawl Spaces

    (b) The calculation of the manufactured home's transmission heat 
loss coefficient (Uo) shall be in accordance with the fundamental 
principals of the 1989 ASHRAE Handbook of Fundamentals and, at a 
minimum, shall address all the heat loss or heat gain considerations in 
a manner consistent with the calculation procedures provided in the 
document Overall U-values and Heating/Cooling Loads-Manufactured Homes--
February 1992-PNL 8006, HUD User No. 0005945.
    (c) Areas where the insulation does not fully cover a surface or is 
compressed shall be accounted for in the U-calculation (see 
Sec. 3280.506). The effect of framing on the U-value must be included in 
the Uo calculation. Other low-R-value heat-flow paths (``thermal 
shorts'') shall be explicitly accounted for in the calculation of the 
transmission heat loss coefficient if in the aggregate all types of low-
R-value paths amount to more than 1% of the total exterior surface area. 
Areas are considered low-R-value heat-flow paths if:
    (1) They separate conditioned and unconditioned space; and
    (2) They are not insulated to a level that is at least one-half the 
nominal insulation level of the surrounding building component.
    (d) High efficiency heating and cooling equipment credit. The 
calculated transmission heat loss coefficient (Uo) used for meeting the 
requirement in Sec. 3280.506(a) may be adjusted for heating and cooling 
equipment above that required by the National Appliance Energy 
Conservation Act of 1987 (NAECA) by applying the following formula:

Uo adjusted = Uo standardx[1+(0.6) (heating efficiency increase 
    factor)+(cooling multiplier) (cooling efficiency increase factor)]

 where:
Uo standard = Maximum Uo for Uo Zone required by Sec. 3280.506(a)
Uo adjusted = Maximum Uo standard adjusted for high efficiency HVAC 
equipment
Heating efficiency increase factor = The increase factor in heating 
equipment efficiency measured by the Annual Fuel Utilization Efficiency 
(AFUE), or the Heating Seasonal Performance Factor (HSPF) for heat 
pumps, above that required by NAECA (indicated as ``NAECA'' in formula). 
The formula is heating efficiency increase factor = AFUE (HSPF) home - 
AFUE (or HSPF) NAECA divided by AFUE (HSPF) NAECA.
Cooling efficiency increase factor = the increase factor in the cooling 
equipment efficiency measured by the Seasonal Energy Efficiency Ratio 
(SEER) above that required by NAECA.

[[Page 146]]

The formula being cooling equipment=SEER home--SEER NAECA divided by 
SEER NAECA.

    The cooling multiplier for the Uo Zone is from the following table:

------------------------------------------------------------------------
                 Uo zone                      Cooling multiplier (Cm)
------------------------------------------------------------------------
1........................................  0.60 (Florida only).
1........................................  0.20 (All other locations).
2........................................  0.07.
3........................................  0.03.
------------------------------------------------------------------------


    (e) U-values for any glazing (windows, skylights, and the glazed 
portions of any door) shall be based on tests using American 
Architectural Manufacturers Association (AAMA) 1503.1-1988, Voluntary 
Test Method for Thermal Transmittance and Condensation Resistance of 
Windows, Doors and Glazed Wall Sections. In the absence of tests, 
manufacturers shall use the residential window U values contained in 
table 13 in chapter 27, the 1989 ASHRAE Handbook of Fundamentals. In the 
event that the classification of the window type is indeterminate, the 
manufacturer shall use the classification which gives the higher U 
value. For the purpose of calculating Uo values, storm windows shall be 
treated as an additional pane.
    (f) Annual energy used based compliance. As an alternative, homes 
may demonstrate compliance with the annual energy used implicit in the 
coefficient of heat transmission (Uo) requirement. The annual energy use 
determination must be based on generally accepted engineering practices. 
The general requirement is to demonstrate that the home seeking 
compliance approval has a projected annual energy use, including both 
heating and cooling, less than or equal to a similar ``base case'' home 
that meets the standard. The energy use for both homes must be 
calculated based on the same assumptions; including assuming the same 
dimensions for all boundaries between conditioned and unconditioned 
spaces, site characteristics, usage patterns and climate.

[58 FR 55011, Oct. 25, 1993]



Sec. 3280.509  Criteria in absence of specific data.

    In the absence of specific data, for purposes of heat-loss/gain 
calculation, the following criteria shall be used:
    (a) Infiltration heat loss. In the absence of measured infiltration 
heat loss data, the following formula shall be used to calculate heat 
loss due to infiltration and intermittently operated fans exhausting to 
the outdoors. The perimeter calculation shall be based on the dimensions 
of the pressure envelope.

Infiltration Heat-Loss=0.7 (T) (ft. of perimeter), BTU/hr.

where: T=70 minus the heating system capacity certification temperature 
stipulated in the Heating Certificate, in F.

    (b) Framing areas.

Wall.....................................  15 percent of wall area less
                                            windows and doors.
Floor and Ceiling........................  10 percent of the area.
 

    (c) Insulation compression. Insulation compressed to less than 
nominal thickness shall have its nominal R-values reduced for that area 
which is compressed in accordance with the following graph:

[[Page 147]]

[GRAPHIC] [TIFF OMITTED] TC17OC91.006


When insulation is installed over the framing members the thermal 
performance of the insulation is reduced due to compression at the 
framing members. The Resistance value of the insulation between the 
framing members is reduced by 12.5 percent for framing members 
16 O.C., 8.5 percent for framing members 24 O.C., 
and 4 percent for framing members 48 O.C.
    (d) Air supply ducts within floor cavity. Air supply ducts located 
within a floor cavity shall be assumed to be heating or cooling the 
floor cavity to living space temperatures unless the duct is 
structurally isolated by the framing system or thermally insulated from 
the rest of the floor cavity with a thermal insulation at least equal to 
R-4.
    (e) Air supply ducts within ceiling cavity. Where supply ducts are 
located in ceiling cavities, the influence of the duct on cavity 
temperatures shall be considered in calculating envelope heat loss or 
heat gain.
    (f) The supply duct loss (and/or heat gain where applicable--See 
Sec. 3280.511) shall be calculated using the actual duct surface area 
and the actual thickness of insulation between the duct and outside of 
the manufactured home. If there is an air space of at least \1/2\ inch 
between the duct and the insulation, heat loss/gain need not be 
calculated if the cavity in which the duct is located is assumed to be 
at living space temperature. The average temperature inside the supply 
duct, including ducts installed outside the manufactured home, shall be 
assumed to be 130 F for purposes of calculation of heat loss and 60 F 
for heat gain.
    (g) Return air cavities. Cavities used as return air plenums shall 
be considered to be at living space temperature.



Sec. 3280.510  Heat loss certificate.

    The manufactured home manufacturer shall permanently affix the 
following ``Certificate'' to an interior surface of the home that is 
readily visible to the homeowner. The ``Certificate'' shall specify the 
following:
    (a) Heating zone certification. The design zone at which the 
manufactured home heat loss complies with Sec. 3280.506(a).
    (b) Outdoor certification temperature. The lowest outdoor 
temperature at which the installed heating equipment will maintain a 
70 deg.F temperature inside the home without storm sash or insulating 
glass for Zones 1 and 2, and with storm sash or insulating glass for 
Zone 3 and complying with Sec. 3280.508 and Sec. 3280.509.
    (c) Operating economy certification temperature. The temperature to 
be specified for operating economy and energy conservation shall be 
20 deg.F or 30% of the design temperature difference, whichever is 
greater, added to the temperature specified as the heating system 
capacity certification temperature without storm windows or insulating 
glass in Zones 1 and 2 and with storm windows or insulating glass in 
Zone 3. Design temperature difference is 70 deg.

[[Page 148]]

minus the heating system capacity certification temperature in degrees 
Fahrenheit.

                           HEATING CERTIFICATE

Home Manufacturer_______________________________________________________
Plant Location__________________________________________________________
Home Model______________________________________________________________

                        (Include Uo Value Zone Map)

    This manufactured home has been thermally insulated to conform with 
the requirements of the Federal Manufactured Home Construction and 
Safety Standards for all locations within Uo Value Zone ----.

Heating Equipment Manufacturer__________________________________________
Heating Equipment Model_________________________________________________

    The above heating equipment has the capacity to maintain an average 
70F temperature in this home at outdoor temperatures of [see paragraph 
(b) of this section] F. To maximize furnace operating economy and to 
conserve energy, it is recommended that this home be installed where the 
outdoor winter design temperature (97 1/2%) is not higher than [see 
paragraph (c) of this section] F degrees Fahrenheit.
    The above information has been calculated assuming a maximum wind 
velocity of 15 MPH at standard atmospheric pressure.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55011, Oct. 25, 1993]



Sec. 3280.511  Comfort cooling certificate and information.

    (a) The manufactured home manufacturer shall permanently affix a 
``Comfort Cooling Certificate'' to an interior surface of the home that 
is readily visible to the home owner. This certificate may be combined 
with the heating certificate required in Sec. 3280.510. The manufacturer 
shall comply with one of the following three alternatives in providing 
the certificate and additional information concerning the cooling of the 
manufactured home:
    (1) Alternative I. If a central air conditioning system is provided 
by the home manufacturer, the heat gain calculation necessary to 
properly size the air conditioning equipment shall be in accordance with 
procedures outlined in chapter 22 of the 1989 ASHRAE Handbook of 
Fundamentals, with an assumed location and orientation. The following 
shall be supplied in the Comfort Cooling Certificate:

Air Conditioner Manufacturer____________________________________________
Air Conditioner Model___________________________________________________

    Certified Capacity ------ BTU/Hr. in accordance with the appropriate 
Air Conditioning and Refrigeration Institute Standards
    The central air conditioning system provided with this home has been 
sized, assuming an orientation of the front (hitch) end of the home 
facing ------ and is designed on the basis of a 75  deg.F indoor 
temperature and an outdoor temperature of --  deg.F dry bulb and -- 
deg.F wet bulb.

                           Example Alternate I

                       COMFORT COOLING CERTIFICATE

Manufactured Home Mfg___________________________________________________
Plant Location__________________________________________________________
Manufactured Home Model_________________________________________________
Air Conditioner Manufacturer____________________________________________

    Certified Capacity ------ BTU/Hr. in accordance with the appropriate 
Air Conditioning and Refrigeration Institute Standards.
    The central air conditioning system provided with this home has been 
sized assuming an orientation of the front (hitch end) of the home 
facing ------. On this basis, the system is designed to maintain an 
indoor temperature of 75  deg.F when outdoor temperatures are --  deg.F 
dry bulb and --  deg.F wet bulb.
    The temperature to which this home can be cooled will change 
depending upon the amount of exposure of the windows to the sun's 
radiant heat. Therefore, the home's heat gains will vary dependent upon 
its orientation to the sun and any permanent shading provided. 
Information concerning the calculation of cooling loads at various 
locations, window exposures and shadings are provided in chapter 22 of 
the 1989 edition of the ASHRAE Handbook of Fundamentals.

    (2) Alternative 2. For each home suitable for a central air cooling 
system, the manufacturer shall provide the following statement: ``This 
air distribution system of this home is suitable for the installation of 
a central air conditioning system.''

                           Example Alternate 2

                       COMFORT COOLING CERTIFICATE

Manufactured Home Manufacturer__________________________________________
Plant Location__________________________________________________________
Manufactured Home Model_________________________________________________
    This air distribution system of this home is suitable for the 
installation of central air conditioning.
    The supply air distribution system installed in this home is sized 
for Manufactured Home Central Air Conditioning System of up to ------ 
B.T.U./Hr. rated capacity which are certified in accordance with the 
appropriate Air Conditioning and Refrigeration Institute Standards. When 
the air

[[Page 149]]

circulators of such air conditioners are rated at 0.3 inch water column 
static pressure or greater for the cooling air delivered to the 
manufactured home supply air duct system.
    Information necessary to calculate cooling loads at various 
locations and orientations is provided in the special comfort cooling 
information provided with this manufactured home.

    (3) Alternative 3. If the manufactured home is not equipped with an 
air supply duct system, or if the manufacturer elects not to designate 
the home as being suitable for the installation of a central air 
conditioning system, the manufacturer shall provide the following 
statement: ``This air distribution system of this home has not been 
designed in anticipation of its use with a central air conditioning 
system.''

                           Example Alternate 3

                       COMFORT COOLING CERTIFICATE

Manufactured Home Mfg___________________________________________________
Plant Location__________________________________________________________
Manufactured Home Model_________________________________________________
    The air distribution system of this home has not been designed in 
anticipation of its use with a central air conditioning system.

    (b) For each home designated as suitable for central air 
conditioning the manufacturer shall provide the maximum central 
manufactured home air conditioning capacity certified in accordance with 
the ARI Standard 210/240-89 Unitary Air-Conditioning and Air-Source Heat 
Pump Equipment and in accordance with Sec. 3280.715(a)(3). If the 
capacity information provided is based on entrances to the air supply 
duct at other than the furnace plenum, the manufacturer shall indicate 
the correct supply air entrance and return air exit locations.
    (c) Comfort cooling information. For each manufactured home 
designated, either ``suitable for'' or ``provided with'' a central air 
conditioning system, the manufacturer shall provide comfort cooling 
information specific to the manufactured home necessary to complete the 
cooling load calculations. The comfort cooling information shall include 
a statement to read as follows:

    To determine the required capacity of equipment to cool a home 
efficiently and economically, a cooling load (heat gain) calculation is 
required. The cooling load is dependent on the orientation, location and 
the structure of the home. Central air conditioners operate most 
efficiently and provide the greatest comfort when their capacity closely 
approximates the calculated cooling load. Each home's air conditioner 
should be sized in accordance with chapter 22 of the American Society of 
Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) Handbook 
of Fundamentals, 1989 Edition, once the location and orientation are 
known.

Information Provided by the Manufacturer Necessary to Calculate Sensible 
                                Heat Gain

Walls (without windows and doors)...............................       U
Ceilings and roofs of light color...............................       U
Ceilings and roofs of dark color................................       U
Floors..........................................................       U
Air ducts in floor..............................................       U
Air ducts in ceiling............................................       U
Air ducts installed outside the home............................       U
 

Information necessary to calculate duct areas.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55012, Oct. 25, 1993]



                       Subpart G--Plumbing Systems



Sec. 3280.601  Scope.

    Subpart G of this standard covers the plumbing materials, fixtures, 
and equipment installed within or on manufactured homes. It is the 
intent of this subpart to assure water supply, drain, waste and vent 
systems which permit satisfactory functioning and provide for health and 
safety under all conditions of normal use.



Sec. 3280.602  Definitions.

    The following definitions are applicable to subpart G only:
    Accessible, when applied to a fixture, connection, appliance or 
equipment, means having access thereto, but which may require removal of 
an access panel or opening of a door.
    Air gap (water distribution system) means the unobstructed vertical 
distance through the free atmosphere between the lowest opening from any 
pipe or faucet supplying water to a tank, plumbing fixture, water 
supplied appliances, or other device and the flood level rim of the 
receptacle.
    Anti-siphon trap vent device means a device which automatically 
opens to admit air to a fixture drain above the connection of the trap 
arm so as to prevent siphonage, and closes tightly when the pressure 
within the drainage

[[Page 150]]

system is equal to or greater than atmospheric pressure so as to prevent 
the escape of gases from the drainage system into the manufactured home.
    Backflow means the flow of water or other liquids, mixtures, or 
substances into the distributing pipes of a potable supply of water from 
any source or sources other than its intended sources.
    Backflow connection means any arrangement whereby backflow can 
occur.
    Backflow preventer means a device or means to prevent backflow.
    Branch means any part of the piping system other than a riser, main 
or stack.
    Common vent means a vent connecting at the junction of fixture 
drains and serving as a vent for more than one fixture.
    Continuous vent means a vertical vent that is a continuation of the 
drain to which it connects.
    Continuous waste means a drain from two or more fixtures connected 
to a single trap.
    Critical level means a point established by the testing laboratory 
(usually stamped on the device by the manufacturer) which determines the 
minimum elevation above the flood level rim of the fixture or receptacle 
served on which the device may be installed. When a backflow prevention 
device does not bear a critical level marking, the bottom of the vacuum 
breaker, combination valve, or of any such approved or listed device 
shall constitute the critical level.
    Cross connection means any physical connection or arrangement 
between two otherwise separate systems or sources, one of which contains 
potable water and the other either water, steam, gas or chemical of 
unknown or questionable safety whereby there may be a flow from one 
system or source to the other, the direction of flow depending on the 
pressure differential between the two systems.
    Developed length means that length of pipe measured along the center 
line of the pipe and fittings.
    Diameter, unless otherwise specifically stated, means the nominal 
(inside) diameter designated commercially.
    Drain means a pipe that carries waste, water, or water-borne waste 
in a drainage system.
    Drain connector means the removable extension, consisting of all 
pipes, fittings and appurtenances, from the drain outlet to the drain 
inlet serving the manufactured home.
    Drain outlet means the lowest end of the main or secondary drain to 
which a sewer connection is made.
    Drainage system means all piping within or attached to the structure 
that conveys sewage or other liquid waste to the drain outlet, not 
including the drain connector.
    Fixture drain means the drain from the trap of a fixture to the 
junction of that drain with any other drain pipe.
    Fixture supply means the water supply pipe connecting a fixture to a 
branch water supply pipe or directly to a main water supply pipe.
    Flood-level means the level in the receptacle over which water would 
overflow to the outside of the receptacle.
    Flooded means the condition which results when the liquid in a 
container or receptacle rises to the flood-level.
    Flush tank means that portion of a water closet that is designed to 
contain sufficient water to adequately flush the fixture.
    Flush valve means a device located at the bottom of a flush tank for 
flushing a water closet.
    Flushometer tank: means a device integrated within an air 
accumulator vessel which is designed to discharge a predetermined 
quantity of water to fixtures for flushing purposes.
    Flushometer valve means a device which discharges a predetermined 
quantity of water to a fixture for flushing purposes and is closed by 
direct water pressure.
    Grade means the fall (slope) of a pipe in reference to a horizontal 
plane expressed in inches per foot length.
    Horizontal branch means any pipe extending laterally, which receives 
the discharge from one or more fixture drains and connects to the main 
drain.
    Horizontal pipe means any pipe or fitting which makes an angle of 
not more than 45 degrees with the horizontal.
    Individual vent means a pipe installed to vent a fixture drain.

[[Page 151]]

    Inlet coupling means the terminal end of the water system to which 
the water service connection is attached. It may be a swivel fitting or 
threaded pipe end.
    Main means the principal artery of the system to which branches may 
be connected.
    Main drain means the lowest pipe of a drainage system which receives 
sewage from all the fixtures within a manufactured home and conducts 
these wastes to the drain outlet.
    Main vent means the principal artery of the venting system to which 
vent branches may be connected.
    Offset means a combination of pipe and/or fittings that brings one 
section of the pipe out of line but into a line parallel with the other 
section.
    Pitch. See Grade.
    Plumbing appliance: means any one of a special class of plumbing 
fixture which is intended to perform a special plumbing function. Its 
operation and/or control may be dependent upon one or more energized 
components, such as motors, control, heating elements, or pressure or 
temperature-sensing elements. Such fixture may operate automatically 
through one or more of the following actions: A time cycle, a 
temperature range, a pressure range, a measured volume or weight, or the 
fixture may be manually adjusted or controlled by the user or operator.
    Plumbing appurtenance: means a manufactured device, or a 
prefabricated assembly, or an on-the-job assembly of component parts, 
and which is an adjunct to the basic piping system and plumbing system 
and plumbing fixtures. An appurtenance demands no additional water 
supply, nor does it add any discharge load to a fixture or the drainage 
system.
    Plumbing fixtures means receptacles, devices, or appliances which 
are supplied with water or which receive liquid or liquid-borne wastes 
for discharge into the drainage system.
    Plumbing system means the water supply and distribution pipes; 
plumbing fixtures, faucets and traps; soil, waste and vent pipes; and 
water-treating or water-using equipment.
    Primary vent. See main vent.
    Relief vent means an auxiliary vent which permits additional 
circulation of air in or between drainage and vent systems.
    Secondary vent means any vent other than the main vent or those 
serving each toilet.
    Sewage means any liquid waste containing animal or vegetable matter 
in suspension or solution, and may include liquids containing chemicals 
in solution.
    Siphonage means the loss of water seal from fixture traps resulting 
from partial vacuum in the drainage system which may be of either of the 
following two types, or a combination of the two:
    (a) Self-siphonage resulting from vacuum in a fixture drain 
generated solely by the discharge of the fixture served by that drain, 
or,
    (b) Induced siphonage resulting from vacuum in the drainage system 
generated by the discharge of one or more fixtures other than the one 
under observation.
    Trap means a fitting or device designed and constructed to provide a 
liquid seal that will prevent the back passage of air without materially 
affecting the flow of liquid waste through it.
    Trap arm means the portion of a fixture drain between a trap and its 
vent.
    Trap seal means the verticle depth of liquid that a trap will 
retain.
    Vacuum breaker. See backflow preventer.
    Vent cap means the device or fitting which protects the vent pipe 
from foreign substance with an opening to the atmosphere equal to the 
area of the vent it serves.
    Vent system means that part of a piping installation which provides 
circulation of air within a drainage system.
    Vertical pipe means any pipe or fitting which makes an angle of not 
more than 45 degrees with the vertical.
    Water closet drain means that part of the drainage piping which 
receives the discharge from each individual water closet.
    Water connection means the fitting or point of connection for the 
manufactured home water distribution system designed for connection to a 
water supply.
    Water connector means the removable extension connecting the 
manufactured home water distribution system to the water supply.

[[Page 152]]

    Water distribution system means potable water piping within or 
permanently attached to the manufactured home.
    Wet vent means a vent which also serves as a drain for one or more 
fixtures.
    Wet vented drainage system means the specially designed system of 
drain piping that also vents one or more plumbing fixtures by means of a 
common waste and vent pipe.
    Whirlpool bathtub means a plumbing appliance consisting of a bathtub 
fixture which is equipped and fitted with a circulation piping system, 
pump, and other appurtenances and is so designed to accept, circulate, 
and discharge bathtub water upon each use.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 52 FR 4584, Feb. 12, 1987; 52 FR 47553, Dec. 15, 1987; 58 
FR 55012, Oct. 25, 1993]



Sec. 3280.603  General requirements.

    (a) Minimum requirements. Any plumbing system installed in a 
manufactured home shall conform, at least, with the provisions of this 
subpart.
    (1) General. The plumbing system shall be of durable material, free 
from defective workmanship, and so designed and constructed as to give 
satisfactory service for a reasonable life expectancy.
    (2) Conservation. Water closets shall be selected and adjusted to 
use the minimum quantity of water consistent with proper performance and 
cleaning.
    (3) Connection to drainage system. All plumbing, fixtures, drains, 
appurtenances, and appliances designed or used to receive or discharge 
liquid waste or sewage shall be connected to the manufactured home 
drainage system in a manner provided by this standard.
    (4) Workmanship. All design, construction, and workmanship shall be 
in conformance with accepted engineering practices and shall be of such 
character as to secure the results sought to be obtained by this 
standard.
    (5) Components. Plumbing materials, devices, fixtures, fittings, 
equipment, appliances, appurtenance, and accessories intended for use in 
or attached to a manufactured home shall conform to one of the 
applicable standards referenced in Sec. 3280.604. Where an applicable 
standard is not referenced, or an alternative recognized standard is 
utilized, the plumbing component shall be listed by a nationally 
recognized testing laboratory, inspection agency or other qualified 
organization as suitable for the intended use.
    (6) Prohibited fittings and practices. (i) Drainage or vent piping 
shall not be drilled and tapped for the purpose of making connections.
    (ii) Except as specifically provided elsewhere in this standard, 
vent pipes shall not be used as waste or drain pipes.
    (iii) Fittings, connections, devices, or methods of installation 
that obstruct or retard the flow of sewage, or air in the drainage or 
venting systems in an amount greater than the normal frictional 
resistance to flow shall not be used unless their use is acceptable in 
this standard or their use is accepted as having a desirable and 
acceptable function of ultimate benefit to the proper and continued 
functioning of the plumbing system.
    (iv) Cracks, holes, or other imperfections in materials shall not be 
concealed by welding, brazing, or soldering or by paint, wax, tar, or 
other leak-sealing or repairing agents.
    (v) Piping, fixtures or equipment shall be located so as not to 
interfere with the normal use or with the normal operation and use of 
windows, doors or other required facilities.
    (vi) Galvanized pipe shall not be bent or welded.
    (7) Alignment of fittings. All valves, pipes, and fittings shall be 
installed in correct relationship to the direction of flow.
    (b) Protective requirements. (1) Cutting structural members. 
Structural members shall not be unnecessarily or carelessly weakened by 
cutting or notching.
    (2) Exposed piping. All piping, pipe threads, hangers, and support 
exposed to the weather, water, mud, and road hazard, and subject to 
damage therefrom, shall be painted, coated, wrapped, or otherwise 
protected from deterioration.
    (3) Road damage. Pipes, supports, drains, outlets, or drain hoses 
shall not extend or protrude in a manner where

[[Page 153]]

they could be unduly subjected to damage during transit.
    (4) Freezing. All piping and fixtures subject to freezing 
temperatures shall be insulated or protected to prevent freezing, under 
normal occupancy. The manufacturer shall provide:
    (i) Written installation instructions for the method(s) required for 
compliance to this section;
    (ii) A statement in his installation instructions that if heat tape 
is used it shall be listed for use with manufactured homes;
    (iii) A receptacle outlet for the use of a heat tape located on the 
underside of the manufactured home within 2 feet of the water supply 
inlet. The receptacle outlet provided shall not be placed on a branch 
circuit which is protected by a ground fault circuit interrupter.
    (5) All piping, except the fixture trap, shall be designed to allow 
drainage.
    (6) Rodent resistance. All exterior openings around piping and 
equipment shall be sealed to resist the entrance of rodents.
    (7) Piping and electrical wiring shall not pass through the same 
holes in walls, floors or roofs. Plastic piping shall not be exposed to 
heat in excess of manufacturers recommendation or radiation from heat 
producing appliances.

[40 FR 58752, Dec. 18, 1975, as amended at 42 FR 54383, Oct. 5, 1977. 
Redesignated at 44 FR 20679, Apr. 6, 1979, as amended at 58 FR 55012, 
Oct. 25, 1993]



Sec. 3280.604  Materials.

    (a) Minimum standards. Materials, devices, fixtures, fittings, 
equipment, appliances, appurtenances and accessories shall conform to 
one of the standards in the following table and be free from defects. 
Where an appropriate standard is not indicated in the table or a 
standard not indicated in the table is preferred, the item may be used 
if it is listed. A listing is also required when so specified in other 
sections of this subpart.
    (b) Where more than one standard is referenced for a particular 
material or component, compliance with only one of those standards is 
acceptable. Exceptions:
    (1) When one of the reference standards requires evaluation of 
chemical, toxicity or odor properties which are not included in the 
other standard, then conformance to the applicable requirements of each 
standard shall be demonstrated;
    (2) When a plastic material or component is not covered by the 
Standards in the following table, it shall be certified as non-toxic in 
accordance with NSF14-1990, ``Plastic Piping Components and Related 
Materials.''

                        Ferrous Pipe and Fittings

Gray Iron Threaded Fittings--ANSI/ASME B16.4-1992.
Malleable Iron Threaded Fittings--ANSI/ASME B16.3-1992.
Material and Property Standard for Special Cast Iron Fittings--IAPMO PS 
5-84.
Welding and Seamless Wrought Steel Pipe--ANSI/ASME B36.10-1979.
Standard Specification for Pipe, Steel, Black and Hot-Dipped, Zinc-
Coated, Welded and Seamless--ASTM A53-93.
Pipe Threads, General Purpose (Inch)--ANSI/ASME B1.20.1-1983.
Standard Specification for Cast Iron Soil Pipe and Fittings--ASTM A74-
92.
Standard Specification for Hubless Cast Iron Soil Pipe and Fittings for 
Sanitary and Storm Drain, Waste, and Vent Piping Applications--CISPI-
301-90.

                      Nonferrous Pipe and Fittings

Standard Specification for Seamless Copper Pipe, Standard Sizes--ASTM 
B42-93.
Standard Specification for General Requirements for Wrought Seamless 
Copper and Copper-Alloy Tube--ASTM B251-93.
Standard Specification for Seamless Copper Water Tube--ASTM B 88-93.
Standard Specification for Copper Drainage Tube (DWV)--ASTM B306-92.
Wrought Copper and Copper Alloy Solder-Joint Pressure Fitting--ASME/ANSI 
B16.22-1989.
Wrought Copper and Wrought Copper Alloy Solder-Joint Drainage Fittings-
DWV--ASME/ANSI B16.29-1986.
Cast Copper Alloy Solder-Joint Pressure Fittings--ANSI B16.18-1984.
Cast Copper Alloy Solder-Joint Drainage Fittings-DWV--ASME B16.23-1992.
Cast Copper Alloy Fittings for Flared Copper Tubes--ASME/ANSI B16.26-
1988.
Standard Specification for Seamless Red Brass Pipe, Standard Sizes--ASTM 
B43-91.
Cast Bronze Threaded Fittings, Classes 125 and 250--ANSI/ASME B16.15-
1985.

                        Plastic Pipe and Fittings

Standard Specification Acrylonitrile-Butadiene-Styrene (ABS) Schedule 40 
Plastic Drain, Waste, and Vent Pipe and Fittings--ASTM D2661-91.

[[Page 154]]

Standard Specification for Poly (Vinyl Chloride) (PVC) Plastic Drain, 
Waste, and Vent Pipe and Fittings--ASTM D2665-91b.
Standard Specification for Drain, Waste, and Vent (DWV) Plastic Fittings 
Patterns--ASTM D3311-92.
Standard Specification for Acrylonitrile-Butadiene-Styrene (ABS) 
Schedule 40, Plastic Drain, Waste, and Vent Pipe With a Cellular Core--
ASTM F628-91.
Standard Specification for Chlorinated Poly (Vinyl Chloride) (CPVC) 
Plastic Hot- and Cold-Water Distribution Systems--ASTM D2846-92.
Standard Specification for Polybutylene (PB) Plastic Hot- and Cold-Water 
Distribution Systems--ASTM D3309-92a.
Plastic Piping Components and Related Materials--ANSI/NSF 14-1990.

                              Miscellaneous

Standard Specification for Rubber Gaskets for Cast Iron Soil Pipe and 
Fittings--ASTM C564-88.
Backflow Valves--ANSI A112.14.1-1975.
Plumbing Fixture Setting Compound--TTP 1536A-1975.
Material and Property Standard for Cast Brass and Tubing P-Traps--IAPMO 
PS 2-89.
Relief Valves and Automatic Gas Shutoff Devices for Hot Water Supply 
Systems--*ANSI Z21.22-1986, With Addendum Z21.22a-1990.
Standard Specification for Solvent Cement for Acrylonitrile-Butadiene-
Styrene (ABS) Plastic Pipe and Fittings--ASTM D2235-88.
Standard Specification for Solvent Cements for Poly (Vinyl Chloride) 
(PVC) Plastic Piping Systems--ASTM D2564-91a.
Specification for Neoprene Rubber Gaskets for HUB and Spigot Cast Iron 
Soil Pipe and Fittings--CISPI-HSN-85.
Plumbing System Components for Manufactured Homes and Recreational 
Vehicles--ANSI/NSF 24-1988.
Material and Property Standard for Diversion Tees and Twin Waste Elbow--
IAPMO PS 9-84.
Material and Property Standard for Flexible Metallic Water Connectors--
IAPMO PS 14-89.
Material and Property Standard for Dishwasher Drain Airgaps--IAPMO PS 
23-89.
Material and Property Standards for Backflow Prevention Assemblies--
IAPMO PS 31-91.

                            Plumbing Fixtures

Plumbing Fixtures (General Specifications)--FS WW-P-541E/GEN-1980.
Vitreous China Plumbing Fixtures--ANSI/ASME A112.19.2(M)-1990.
Enameled Cast Iron Plumbing Fixtures--ANSI/ASME A112.19.1M-1987.
Porcelain Enameled Formed Steel Plumbing Fixtures--ANSI/ASME 
A112.19.4(M)-1984.
Plastic Bathtub Units With Addenda Z124.1a-1990 and Z124.16-1991--ANSI 
Z124.1-1987.
Standard for Porcelain Enameled Formed Steel Plumbing Fixtures--IAPMO 
TSC 22-85.
Plastic Shower Receptors and Shower Stalls With Addendum Z124.2a-1990--
ANSI Z124.2-1987.
Stainless Steel Plumbing Fixtures (Designed for Residential Use)--ANSI/
ASME A112.19.3M-1987.
Material and Property Standard for Drains for Prefabricated and Precast 
Showers--IAPMO PS 4-90.
Plastic Lavatories with addendum Z124.3a-1990--ANSI Z124.3-1986.
Safety Performance Specifications and Methods of Test for Safety Glazing 
Materials Used in Building--ANSI Z97.1-1984.
Plumbing Fixture Fittings--ANSI/ASME A112.18.1M-1989.
Trim for Water Closet, Bowls, Tanks, and Urinals--ANSI A112.19.5-1979.
Plastic Water Closets, Bowls and Tanks with Addenda Z124.4a-1990--ANSI 
Z124.4-1986.
Whirlpool Bathtub Appliances--ASME/ANSI A112.19.7M-1987.
Performance Requirements for Individual Thermostatic Pressure Balancing 
and Combination Control for Bathing Facilities--ASSE 1016-1988, (ANSI 
1990).
Performance Requirements for Pressurized Flushing Devices (Flushometers) 
For Plumbing Fixtures--ASSE 1037-1990 (ANSI-1990).
Performance Requirements for Water Closet Flush Tank Fill Valves 
(Ballcocks)--ASSE 1002 Revision 5-1986, (ANSI/ASSE-1979).
Performance Requirements for Hand-held Showers--ASSE 1014-1989 (ANSI-
1990).
Hydrants for Utility and Maintenance Use--ANSI/ASME A112.21.3M-1985.
Performance Requirements for Home Laundry Equipment--ASSE 1007-1986.
Performance Requirements for Hot Water Dispensers, Household Storage 
Type Electrical--ASSE 1023-ANSI/ASSE-1979.
Plumbing Requirements for Residential Use (Household) Dishwashers--ASSE 
1006, ASSE/ANSI-1986.
Performance Requirements for Household Food Waste Disposer Units--ASSE 
1008-1986.
Performance Requirements for Temperature Activated Mixing Valves for 
Primary Domestic Use--ASSE 1017-1986.
Water Hammer Arresters--ANSI A112.26.1-1969 (R 1975).
Suction Fittings for Use in Swimming Pools, Wading Pools, Spas, Hot Tubs 
and Whirlpool Bathtub Appliances--ASME/ANSI A112.19.8M-1989.
Air Gaps in Plumbing Systems--ASME A112.1.2-1991.

[[Page 155]]

Performance Requirements for Diverters for Plumbing Faucets with Hose 
Spray, Anti-Siphon Type, Residential Applications--ASSE 1025-ANSI/ASSE-
1978.
Performance Requirements for Pipe Applied Atmospheric Type Vacuum 
Breakers--ASSE 1001 ASSE/ASNI-1990.
Performance Requirements for Hose Connection Vacuum Breakers--ASSE 1011-
1981 (ANSI-1982).
Performance Requirements for Wall Hydrants, Frost Proof Automatic 
Draining, Anti-Backflow Types--ANSI/ASSE 1019-1978.

[58 FR 55013, Oct. 25, 1993]



Sec. 3280.605  Joints and connections.

    (a) Tightness. Joints and connections in the plumbing system shall 
be gastight and watertight for the pressures required under testing 
procedures.
    (1) Assembling of pipe. All joints and connections shall be 
correctly assembled for tightness. Pipe threads shall be fully engaged 
with the threads of the fitting. Plastic pipe and copper tubing shall be 
inserted to the full depth of the solder cup or welding sockets of each 
fitting. Pipe threads and slip joints shall not be wrapped with string, 
paper, putty, or similar fillers.
    (2) Threaded joints. Threads for screw pipe and fittings shall 
conform to the approved or listed standard. Pipe ends shall be reamed 
out to size of bore. All burrs, chips, cutting oil and foreign matter 
shall be removed. Pipe joint cement or thread lubricant shall be of 
approved type and applied to male threads only.
    (3) Solder joints. Solder joints for tubing shall be made with 
approved or listed solder type fittings. Surfaces to be soldered shall 
be cleaned bright. The joints shall be properly fluxed with noncorrosive 
paste type flux and, for manufactured homes to be connected to a public 
water system, made with solder having not more than 0.2 percent lead.
    (4) Plastic pipe, fittings and joints. Plastic pipe and fittings 
shall be joined by installation methods recommended by the manufacturer 
or in accordance with the provisions of a recognized, approved, or 
listed standard.
    (5) Union joints. Metal unions in water piping shall have metal-to-
metal ground seats.
    (6) Flared joints. Flared joints for soft-copper water tubing shall 
be made with approved or listed fittings. The tubing shall be expanded 
with a proper flaring tool.
    (7) Cast iron soil pipe joints. Approved or listed cast iron pipe 
may be joined as follows:
    (i) Approved or listed hubless pipe as per the manufacturer's 
recommendation.
    (ii) Hub and plain-end soil pipe may be joined by compression 
fittings per the manufacturer's recommendation.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 53 FR 23611, June 23, 1988]



Sec. 3280.606  Traps and cleanouts.

    (a) Traps--(1) Traps required. Each plumbing fixture, except listed 
toilets, shall be separately trapped by approved water seal ``P'' traps. 
All traps shall be effectively vented.
    (2) Dual fixtures. A two-compartment sink, two single sinks, two 
lavatories, or a single sink and a single lavatory with waste outlets 
not more than 30 inches apart and in the same room and flood level rims 
at the same level may be connected to one ``P'' trap and may be 
considered as a single fixture for the purpose of drainage and vent 
requirements.
    (3) Prohibited traps. A trap which depends for its seal upon 
concealed interior partitions shall not be used. Full ``S'' traps, bell 
traps, drum traps, crown-vented traps, and running traps are prohibited. 
Fixtures shall not be double-trapped.
    (4) Material and design. Each trap shall be self-cleaning with a 
smooth and uniform interior waterway. Traps shall be manufactured of 
cast iron, cast brass, or drawn brass tubing of not less than No. 20 
Brown and Sharpe gage, or approved or listed plastic, or other approved 
or listed material. Union joints for a trap shall be beaded to provide a 
shoulder for the union nut. Each trap shall have the manufacturer's name 
stamped or cast in the body of the trap, and each tubing trap shall show 
the gage of the tubing.
    (5) Trap seal. Each ``P'' trap shall have a water seal of not less 
than 2 inches and not more than 4 inches and shall be set true to its 
seal.

[[Page 156]]

    (6) Size. Traps shall be not less than 1\1/4\ inches in diameter. A 
trap shall not be larger than the waste pipe to which it is connected.
    (7) Location. Each trap shall be located as close to its vent and to 
its fixture outlet as structural conditions will permit.
    (8) Length of tailpiece. The vertical distance from a trap to the 
fixture outlet shall not exceed 24 inches.
    (9) Installation. (i) Grade of trap arm. The piping between a ``P'' 
trap and the fixture tee or the vented waste line shall be graded \1/4\ 
inch per foot towards the vent and in no event shall have a slope 
greater than its diameter. The vent opening at fixture tees shall not be 
below the weir of the ``P'' trap outlet.
    (ii) Trap arm offset. The piping between the ``P'' trap and vent may 
change direction or be offset horizontally with the equivalent of no 
more than 180 degrees total change in direction with a maximum of 90 
degrees by any one fitting.
    (iii) Concealed traps. Traps with mechanical joints shall be 
accessible for repair and inspection.
    (iv) Removability of traps, etc. Traps shall be designed and 
installed so the ``U'' bend is removable without removing the strainers 
from the fixture. Continuous waste and tail pieces which are permanently 
attached to the ``U'' bend shall also be removable without removing the 
strainer from the fixture.
    (b) Cleanout openings--(1) Location of cleanout fittings. (i) 
Cleanouts shall be installed if the drainage system cannot be cleaned 
through fixtures, drains, or vents. Cleanouts shall also be provided 
when fittings of more than 45 degrees are used to affect an offset 
except where long turn ells are used which provide sufficient ``sweep'' 
for cleaning.
    (ii) A full size cleanout shall be installed at the upper end of any 
section of drain piping which does not have the required minimum slope 
of \1/4\ inch per foot grade.
    (iii) A cleaning tool shall not be required to pass through more 
than 360 degrees of fittings, excluding removable ``P'' traps, to reach 
any part of the drainage system. Water closets may be removed for 
drainage system access.
    (2) Access to cleanouts. Cleanouts shall be accessible through an 
unobstructed minimum clearance of 12 inches directly in front of the 
opening. Each cleanout fitting shall open in a direction opposite to the 
flow or at right angles to the pipe. Concealed cleanouts that are not 
provided with access covers shall be extended to a point above the floor 
or outside of the manufactured home, with pipe and fittings installed, 
as required, for drainage piping without sags and pockets.
    (3) Material. Plugs and caps shall be brass or approved or listed 
plastic, with screw pipe threads.
    (4) Design. Cleanout plugs shall have raised heads except that plugs 
at floor level shall have counter-sunk slots.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55014, Oct. 25, 1993]



Sec. 3280.607  Plumbing fixtures.

    (a) General requirements--(1) Quality of fixtures. Plumbing fixtures 
shall have smooth impervious surfaces, be free from defects and 
concealed fouling surfaces, be capable of resisting road shock and 
vibration, and shall conform in quality and design to listed standards. 
Fixtures shall be permanently marked with the manufacturer's name or 
trademark.
    (2) Strainers. The waste outlet of all plumbing fixtures, other than 
toilets, shall be equipped with a drain fitting that will provide an 
adequate unobstructed waterway.
    (3) Fixture connections. Fixture tailpieces and continuous wastes in 
exposed or accessible locations shall be not less than No. 20 Brown and 
Sharpe gage seamless drawn-brass tubing or other approved pipe or tubing 
materials. Inaccessible fixture connections shall be constructed 
according to the requirements for drainage piping. Each fixture 
tailpiece, continuous waste, or waste and overflow shall be not less 
than 1\1/2\ inches for sinks of two or more compartments, dishwashers, 
clothes washing machines, laundry tubs, bath tubs, and not less than 
1\1/4\ inches for lavatories and single compartment sinks having a 2 
inch maximum drain opening.
    (4) Concealed connections. Concealed slip joint connections shall be 
provided

[[Page 157]]

with adequately sized unobstructed access panels and shall be accessible 
for inspection and repair.
    (5) Directional fitting. An approved or listed ``Y'' or other 
directional-type branch fitting shall be installed in every tailpiece or 
continuous waste that receives the discharge from food waste disposal 
units, dishwashing, or other force-discharge fixture or appliance. (See 
also Sec. 3280.607(b)(4)(ii).)
    (b) Fixtures. (1) Spacing. All plumbing fixtures shall be so 
installed with regard to spacing as to be reasonably accessible for 
their intended use.
    (2) Water closets. (i) Water closets shall be designed and 
manufactured according to approved or listed standards and shall be 
equipped with a water flushing device capable of adequately flushing and 
cleaning the bowl at each operation of the flushing mechanism.
    (ii) Water closet flushing devices shall be designed to replace the 
water seal in the bowl after each operation. Flush valves, flushometer 
valves, flushometer tanks and ballcocks shall operate automatically to 
shut off at the end of each flush or when the tank is filled to 
operating capacity.
    (iii) Flush tanks shall be fitted with an overflow pipe large enough 
to prevent flooding at the maximum flow rate of the ball cock. Overflow 
pipes shall discharge into the toilet, through the tank.
    (iv) Water closets that have fouling surfaces that are not 
thoroughly washed at each discharge shall be prohibited. Any water 
closet that might permit the contents of the bowl to be siphoned back 
into the water system shall be prohibited.
    (v) Floor connection. Water closets shall be securely bolted to an 
approved flange or other approved fitting which is secured to the floor 
by means of corrosion-resistant screws. The bolts shall be of solid 
brass or other corrosion-resistant material and shall be not less than 
one-fourth inch in diameter. A watertight seal shall be made between the 
water closet and flange or other approved fitting by use of a gasket or 
sealing compound.
    (3) Shower compartment. (i) Each compartment stall shall be provided 
with an approved watertight receptor with sides and back extending at 
least 1 inch above the finished dam or threshold. In no case shall the 
depth of a shower receptor be less than 2 inches or more than 9 inches 
measured from the top of the finished dam or threshold to the top of the 
drain. The wall area shall be constructed of smooth, noncorrosive, and 
nonabsorbent waterproof materials to a height not less than 6 feet above 
the bathroom floor level. Such walls shall form a watertight joint with 
each other and with the bathtub, receptor or shower floor. The floor of 
the compartment shall slope uniformly to the drain at not less than one-
fourth nor more than one-half inch per foot.
    (ii) The joint around the drain connection shall be made watertight 
by a flange, clamping ring, or other approved listed means.
    (iii) Shower doors and tub and shower enclosures shall be 
constructed so as to be waterproof and, if glazed, glazing shall comply 
with the standard for Safety Performance Specifications and Methods of 
Test for Safety Glazing Materials Used in Buildings, ANSI Z97.1-1984.
    (iv) Prefabricated plumbing fixtures shall be approved or listed.
    (4) Dishwashing machines. (i) A dishwashing machine shall not be 
directly connected to any waste piping, but shall discharge its waste 
through a fixed air gap installed above the machine, or through a high 
loop as specified by the dishwashing machine manufacturer, or into an 
open standpipe-receptor with a height greater than the washing 
compartment of the machine. When a standpipe is used, it shall be at 
least 18 inches but not more than 30 inches above the trap weir. The 
drain connections from the air gap or high loop may connect to an 
individual trap, to a directional fitting installed in the sink 
tailpiece or to an opening provided on the inlet side of a food waste 
disposal unit.
    (ii) Drain from a dishwashing machine shall not be connected to a 
sink tailpiece, continuous waste line, or trap on the discharge side of 
a food waste disposal unit.
    (5) Clothes washing machines. (i) Clothes washing machines shall 
drain either into a properly vented trap, into a laundry tub tailpiece 
with watertight

[[Page 158]]

connections, into an open standpipe receptor, or over the rim of a 
laundry tub.
    (ii) Standpipes shall be 1\1/2\ inches minimum nominal iron pipe 
size, 1\1/2\ inches diameter nominal brass tubing not less than No. 20 
Brown and Sharpe gage, or 1\1/2\ inches approved plastic materials. 
Receptors shall discharge into a vented trap or shall be connected to a 
laundry tub tailpiece by means of an approved or listed directional 
fitting. Each standpipe shall extend not less than 18 inches or more 
than 30 inches above its trap and shall terminate in an accessible 
location no lower than the top of clothes washing machine. A removable 
tightfitting cap or plug shall be installed on the standpipe when 
clothes washer is not provided.
    (iii) Clothes washing machine drain shall not be connected to the 
tailpiece, continuous waste, or trap of any sink or dishwashing machine.
    (c) Installation--(1) Access. Each plumbing fixture and standpipe 
receptor shall be located and installed in a manner to be accessible for 
usage, cleaning, repair and replacement. Access to diverter valves and 
other connections from the fixture hardware is not required.
    (2) Alignment. Fixtures shall be set level and in true alignment 
with adjacent walls. Where practical, piping from fixtures shall extend 
to nearest wall.
    (3) Brackets. Wall-hung fixtures shall be rigidly attached to walls 
by metal brackets or supports without any strain being transmitted to 
the piping connections. Flush tanks shall be securely fastened to 
toilets or to the wall with corrosive-resistant materials.
    (4) Tub supports. Bathtub rims at wall shall be supported on metal 
hangers or on end-grain wood blocking attached to the wall unless 
otherwise recommended by the manufacturer of the tub.
    (5) Fixture fittings. Faucets and diverters shall be installed so 
that the flow of hot water from the fittings corresponds to the left-
hand side of the fitting.
    (6) Whirlpool bathtub appliances--(i) Access panel. A door or panel 
of sufficient size shall be installed to provide access to the pump for 
repair and/or replacement.
    (ii) Piping drainage. The circulation pump shall be accessibly 
located above the crown weir of the trap. The pump drain line shall be 
properly sloped to drain the volute after fixture use.
    (iii) Piping. Whirlpool bathtub circulation piping shall be 
installed to be self-draining.
    (iv) Electrical. Refer to the National Electrical Code, NFPA 70-
1993, Article 685G.

[40 FR 58752, Dec. 18, 1975, as amended at 42 FR 961, Jan. 4, 1977. 
Redesignated at 44 FR 20679, Apr. 6, 1979, as amended at 52 FR 4586, 
Feb. 12, 1987; 58 FR 55014, Oct. 25, 1993]



Sec. 3280.608  Hangers and supports.

    (a) Strains and stresses. Piping in a plumbing system shall be 
installed without undue strains and stresses, and provision shall be 
made for expansion, contraction, and structural settlement.
    (b) Piping supports. Piping shall be secured at sufficiently close 
intervals to keep the pipe in alignment and carry the weight of the pipe 
and contents. Unless otherwise stated in the standards for specific 
materials shown in the table in Sec. 3280.604(a), or unless specified by 
the pipe manufacturer, plastic drainage piping shall be supported at 
intervals not to exceed 4 feet and plastic water piping shall be 
supported at intervals not to exceed 3 feet.
    (c) Hangers and anchors. (1) Hangers and anchors shall be of 
sufficient strength to support their proportional share of the pipe 
alignments and prevent rattling.
    (2) Piping shall be securely attached to the structure by hangers, 
clamps, or brackets which provide protection against motion, vibration, 
road shock, or torque in the chassis.
    (3) Hangers and straps supporting plastic pipe shall not compress, 
distort, cut or abrade the piping and shall allow free movement of the 
pipe.



Sec. 3280.609  Water distribution systems.

    (a) Water supply--(1) Supply piping. Piping systems shall be sized 
to provide an adequate quantity of water to each plumbing fixture at a 
flow rate sufficient to keep the fixture in a clean and sanitary 
condition without any danger of backflow or siphonage. (See

[[Page 159]]

table in Sec. 3280.609(f)(1)). The manufacturer shall include in his 
written installation instructions that the manufactured home has been 
designed for an inlet water pressure of 80 psi, and a statement that 
when the manufactured home is to be installed in areas where the water 
pressure exceeds 80 psi, a pressure reducing valve should be installed.
    (2) Hot water supply. Each manufactured home equipped with a kitchen 
sink, and bathtub and/or shower shall be provided with a hot water 
supply system including a listed water heater.
    (b) Water outlets and supply connections--(1) Water connection. Each 
manufactured home with a water distribution system shall be equipped 
with a \3/4\ inch threaded inlet connection. This connection shall be 
tagged or marked ``Fresh Water Connection'' (or marked ``Fresh Water 
Fill''). A matching cap or plug shall be provided to seal the water 
inlet when it is not in use, and shall be permanently attached to the 
manufactured home or water supply piping. When a master cold water 
shutoff full flow valve is not installed on the main feeder line in an 
accessible location, the manufacturer's installation instructions shall 
indicate that such a valve is to be installed in the water supply line 
adjacent to the home. When a manufactured home includes expandable rooms 
or is composed of two or more units, fittings or connectors designed for 
such purpose shall be provided to connect any water piping. When not 
connected, the water piping shall be protected by means of matching 
threaded caps or plugs.
    (2) Prohibited connections. (i) The installation of potable water 
supply piping or fixture or appliance connections shall be made in a 
manner to preclude the possibility of backflow.
    (ii) No part of the water system shall be connected to any drainage 
or vent piping.
    (3) Rim outlets. The outlets of faucets, spouts, and similar devices 
shall be spaced at least 1 inch above the flood level of the fixture.
    (4) Appliance connections. Water supplies connected to clothes 
washing or dishwashing machines shall be protected by an approved or 
listed fixed air gap provided within the appliance by the manufacturer.
    (5) Flushometer valves or manually operated flush valves. An 
approved or listed vacuum breaker shall be installed and maintained in 
the water supply line on the discharge side of a water closet 
flushometer valve or manually operated flush valve. Vacuum breakers 
shall have a minimum clearance of 6 inches above the flood level of the 
fixture to the critical level mark unless otherwise permitted in their 
approval.
    (6) Flush tanks. Water closet flush tanks shall be equipped with an 
approved or listed anti-siphon ball cock which shall be installed and 
maintained with its outlet or critical level mark not less than 1 inch 
above the full opening of the overflow pipe.
    (7) Hose bibbs. When provided, all exterior hose bibbs and laundry 
sink hose connections shall be protected by a listed non-removable 
backflow prevention device. This is not applicable to hose connections 
provided for automatic washing machines with built-in backflow 
prevention.
    (8) Flushometer tanks. Flushometer tanks shall be equipped with an 
approved air gap on the vacuum breaker assembly located above the flood 
level rim above the fixture.
    (c) Water heater safety devices--(1) Relief valves. (i) All water 
heaters shall be installed with approved and listed fully automatic 
valve or valves designed to provide temperature and pressure relief.
    (ii) Any temperature relief valve or combined pressure and 
temperature relief valve installed for this purpose shall have the 
temperature sensing element immersed in the hottest water within the 
upper 6 inches of the tank. It shall be set to start relieving at a 
pressure of 150 psi or the rated working pressure of the tank whichever 
is lower and at or below a water temperature of 210 deg. F.
    (iii) Relief valves shall be provided with full-sized drains, with 
cross sectional areas equivalent to that of the relief valve outlet, 
which shall be directed downward and discharge beneath the manufactured 
home. Drain lines shall be of a material listed for hot water 
distribution and shall drain fully by gravity, shall not be trapped,

[[Page 160]]

and shall not have their outlets threaded, and the end of the drain 
shall be visible for inspection.
    (d) Materials--(1) Piping material. Water pipe shall be of standard 
weight brass, galvanized wrought iron, galvanized steel, Type K, L or M 
copper tubing, approved or listed plastic or other approved or listed 
material.
    (i) Plastic piping. All plastic water piping and fittings in 
manufactured homes must be listed for use with hot water.
    (ii) [Reserved]
    (2) Fittings. Appropriate fittings shall be used for all changes in 
size and where pipes are joined. The material and design of fittings 
shall conform to the type of piping used. Special consideration shall be 
given to prevent corrosion when dissimilar metals are joined.
    (i) Fittings for screw piping shall be standard weight galvanized 
iron for galvanized iron and steel pipe, and of brass for brass piping. 
They shall be installed where required for change in direction, 
reduction of size, or where pipes are joined together.
    (ii) Fittings for copper tubing shall be cast brass or drawn copper 
(sweat-soldered) or shall be approved or listed fittings for the purpose 
intended.
    (3) Prohibited material. Used piping materials shall not be 
permitted. Those pipe dopes, solder, fluxes, oils, solvents, chemicals, 
or other substances that are toxic, corrosive, or otherwise detrimental 
to the water system shall not be used. In addition, for those 
manufactured homes to be connected to a public water system, all water 
piping shall be lead-free (as defined in section 109(c)(2) of the Safe 
Drinking Water Act Amendments of 1986) with solders and flux containing 
not more than 0.2 percent lead and pipes and pipe fittings containing 
not more than 8.0 percent lead.
    (e) Installation of piping--(1) Minimum requirement. All piping 
equipment, appurtenances, and devices shall be installed in workmanlike 
manner and shall conform with the provisions and intent of this 
standard.
    (2) Screw pipe. Iron pipe-size brass or galvanized iron or steel 
pipe fittings shall be joined with approved or listed standard pipe 
threads fully engaged in the fittings. Pipe ends shall be reamed to the 
full bore of the pipe. Pipe-joint compound shall be insoluble in water, 
shall be nontoxic and shall be applied to male threads only.
    (3) Solder fittings. Joints in copper water tubes shall be made by 
the appropriate use of approved cast brass or wrought copper fittings, 
properly soldered together. The surface to be soldered shall be 
thoroughly cleaned bright mechanically. The joints shall be properly 
fluxed and made with a solder that contains no more than 0.2 percent 
lead.
    (4) Flared fittings. A flaring tool shall be used to shape the ends 
of flared tubing to match the flare of fittings.
    (5) Plastic pipe and fittings. Plastic pipe and fittings shall be 
joined by installation methods recommended by the manufacturer or in 
accordance with provisions of a listed standard.
    (f) Size of water supply piping--(1) Minimum size. The size of water 
supply piping and branch lines shall not be less than sizes shown in the 
following table:

       Minimum Size Tubing and Pipe for Water Distribution Systems
------------------------------------------------------------------------
                                         Tubing (nominal)
                                     ------------------------  Pipe iron
         Number of fixtures                          Outer     pipe size
                                       Diameter    diameter    (inches)
                                       (inches)    (inches)
------------------------------------------------------------------------
1...................................      *\1/4\       \3/8\       \1/2\
2...................................       \3/8\       \1/2\       \1/2\
3...................................       \1/2\       \5/8\       \1/2\
4...................................       \1/2\       \5/8\       \1/2\
5 or more...........................       \3/4\       \7/8\       \3/4\
------------------------------------------------------------------------
*6 ft maximum length.


Exceptions to table: \3/8\ inch nominal diameter or \1/2\ inch OD 
minimum size for clothes washing or dishwashing machines, unless larger 
size is recommended by the fixture manufacturer. \1/2\ inch nominal 
diameter or \5/8\ inch OD minimum size for flushometer or metering type 
valves unless otherwise specified in their listing. No galvanized screw 
piping shall be less than \1/2\ inch iron pipe size.
    (2) Sizing procedure. Both hot and cold water piping systems shall 
be computed by the following method:
    (i) Size of branch. Start at the most remote outlet on any branch of 
the hot or cold water piping and progressively count towards the water 
service connection, computing the total number of fixtures supplied 
along each section of

[[Page 161]]

piping. Where branches are joined together, the number of fixtures on 
each branch shall be totalled so that no fixture is counted twice. 
Following down the left-hand column of the preceding table a 
corresponding number of fixtures will be found. The required pipe or 
tubing size is indicated in the other columns on the same line.
    (ii) A water heater, food waste disposal unit, evaporative cooler or 
ice maker shall not be counted as a water-using fixture when computing 
pipe sizes.
    (g) Line valves. Valves, when installed in the water supply 
distribution system (except those immediately controlling one fixture 
supply) and when fully opened, shall have a cross-sectional area of the 
smallest orifice or opening, through which the water flows, at least 
equal to the cross-sectional area of the nominal size of the pipe in 
which the valve is installed.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 52 FR 4586, Feb. 12, 1987; 53 FR 23611, June 23, 1988; 58 
FR 55014, Oct. 25, 1993]



Sec. 3280.610  Drainage systems.

    (a) General. (1) Each fixture directly connected to the drainage 
system shall be installed with a water seal trap (Sec. 3280.606(a)).
    (2) The drainage system shall be designed to provide an adequate 
circulation of air in all piping with no danger of siphonage, 
aspiration, or forcing of trap seals under conditions of ordinary use.
    (b) Materials--(1) Pipe. Drainage piping shall be standard weight 
steel, wrought iron, brass, copper tube DWV, listed plastic, cast iron, 
or other listed or approved materials.
    (2) Fittings. Drainage fittings shall be recessed drainage pattern 
with smooth interior waterways of the same diameter as the piping and 
shall be of a material conforming to the type of piping used. Drainage 
fittings shall be designed to provide for a \1/4\ inch per foot grade in 
horizontal piping.
    (i) Fittings for screw pipe shall be cast iron, malleable iron, 
brass, or listed plastic with standard pipe threads.
    (ii) Fittings for copper tubing shall be cast brass or wrought 
copper.
    (iii) Socket-type fittings for plastic piping shall comply with 
listed standards.
    (iv) Brass or bronze adaptor or wrought copper fittings shall be 
used to join copper tubing to threaded pipe.
    (c) Drain outlets. (1) Each manufactured home shall have only one 
drain outlet.
    (2) Clearance from drain outlet. The drain outlet shall be provided 
with a minimum clearance of 3 inches in any direction from all parts of 
the structure or appurtenances and with not less than 18 inches 
unrestricted clearance directly in front of the drain outlet.
    (3) Drain connector. The drain connector shall not be smaller than 
the piping to which it is connected and shall be equipped with a water-
tight cap or plug matching the drain outlet. The cap or plug shall be 
permanently attached to the manufactured home or drain outlet.
    (4) The drain outlet and drain connector shall not be less than 3 
inches inside diameter.
    (5) Preassembly of drain lines. Section(s) of the drain system, 
designed to be located underneath the home, are not required to be 
factory installed when the manufacturer designs the system for site 
assembly and also provides all materials and components, including 
piping, fittings, cement, supports, and instructions necessary for 
proper site installation.
    (d) Fixture connections. Drainage piping shall be provided with 
approved or listed inlet fittings for fixture connections, correctly 
located according to the size and type of fixture to be connected.
    (1) Water closet connection. The drain connection for each water 
closet shall be 3 inches minimum inside diameter and shall be fitted 
with an iron, brass, or listed plastic floor flange adaptor ring 
securely screwed, soldered or otherwise permanently attached to the 
drain piping, in an approved manner and securely fastened to the floor.
    (2) [Reserved]
    (e) Size of drainage piping--(1) Fixture load. Except as provided by 
Sec. 3280.611(d), drain pipe sizes shall be determined by the type of 
fixture and the total number connected to each drain.

[[Page 162]]

    (i) A 1\1/2\ inch minimum diameter piping shall be required for one 
and not more than three individually vented fixtures.
    (ii) A 2-inch minimum diameter piping shall be required for four or 
more fixtures individually vented.
    (iii) A 3-inch minimum diameter piping shall be required for water 
closets.
    (f) Wet-vented drainage system. Plumbing fixture traps may connect 
into a wet-vented drainage system which shall be designed and installed 
to accommodate the passage of air and waste in the same pipe.
    (1) Horizontal piping. All parts of a wet-vented drainage system, 
including the connected fixture drains, shall be horizontal except for 
wet-vented vertical risers which shall terminate with a 1\1/2\ inch 
minimum diameter continuous vent. Where required by structural design, 
wet-vented drain piping may be offset vertically when other vented 
fixture drains or relief vents are connected to the drain piping at or 
below the vertical offsets.
    (2) Size. A wet-vented drain pipe shall be 2 inches minimum diameter 
and at least one pipe size larger than the largest connected trap or 
fixture drain. Not more than three fixtures may connect to a 2-inch 
diameter wet-vented drain system.
    (3) Length of trap arm. Fixture traps shall be located within the 
distance given in Sec. 3280.611(c)(5). Not more than one trap shall 
connect to a trap arm.
    (g) Offsets and branch fittings--(1) Changes in direction. Changes 
in direction of drainage piping shall be made by the appropriate use of 
approved or listed fittings, and shall be of the following angles: 11\1/
4\, 22\1/2\, 45, 60, or 90 degrees; or other approved or listed fittings 
or combinations of fittings with equivalent radius or sweep.
    (2) Horizontal to vertical. Horizontal drainage lines, connecting 
with a vertical pipe shall enter through 45-degree ``Y'' branches, 60-
degree ``Y'' branches, long-turn ``TY'' branches, sanitary ``T'' 
branches, or other approved or listed fittings or combination of 
fittings having equivalent sweep. Fittings having more than one branch 
at the same level shall not be used, unless the fitting is constructed 
so that the discharge from any one branch cannot readily enter any other 
branch. However, a double sanitary ``T'' may be used when the drain line 
is increased not less than two pipe sizes.
    (3) Horizontal to horizontal and vertical to horizontal. Horizontal 
drainage lines connecting with other horizontal drainage lines or 
vertical drainage lines connected with horizontal drainage lines shall 
enter through 45-degree ``Y'' branches, long-turn ``TY'' branches, or 
other approved or listed fittings or combination of fittings having 
equivalent sweep.
    (h) Grade of horizontal drainage piping. Except for fixture 
connections on the inlet side of the trap, horizontal drainage piping 
shall be run in practical alignment and have a uniform grade of not less 
than \1/4\ inch per foot toward the manufactured home drain outlet. 
Where it is impractical, due to the structural features or arrangement 
of any manufactured home, to obtain a grade of \1/4\ inch per foot, the 
pipe or piping may have a grade of not less than \1/8\ inch per foot, 
when a full size cleanout is installed at the upper end.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 52 FR 4586, Feb. 12, 1987; 58 FR 55015, Oct. 25, 1993]



Sec. 3280.611  Vents and venting.

    (a) General. Each plumbing fixture trap shall be protected against 
siphonage and back pressure, and air circulation shall be ensured 
throughout all parts of the drainage system by means of vents installed 
in accordance with the requirements of this section and as otherwise 
required by this standard.
    (b) Materials--(1) Pipe. Vent piping shall be standard weight steel, 
wrought iron, brass, copper tube DWV, listed plastic, cast iron or other 
approved or listed materials.
    (2) Fittings. Appropriate fittings shall be used for all changes in 
direction or size and where pipes are joined. The material and design of 
vent fittings shall conform to the type of piping used.
    (i) Fittings for screw pipe shall be cast iron, malleable iron, 
plastic, or brass, with standard pipe threads.
    (ii) Fittings for copper tubing shall be cast brass or wrought 
copper.

[[Page 163]]

    (iii) Fittings for plastic piping shall be made to approved 
applicable standards.
    (iv) Brass adaptor fittings or wrought copper shall be used to join 
copper tubing to threaded pipe.
    (v) Listed rectangular tubing may be used for vent piping only 
providing it has an open cross section at least equal to the circular 
vent pipe required. Listed transition fittings shall be used.
    (c) Size of vent piping--(1) Main vent. The drain piping for each 
toilet shall be vented by a 1\1/2\ inch minimum diameter vent or 
rectangular vent of venting cross section equivalent to or greater than 
the venting cross section of a 1\1/2\ inch diameter vent, connected to 
the toilet drain by one of the following methods:
    (i) A 1\1/2\ inch diameter (min.) individual vent pipe or equivalent 
directly connected to the toilet drain within the distance allowed in 
Sec. 3280.611(c)(5), for 3-inch trap arms undiminished in size through 
the roof,
    (ii) A 1\1/2\ inch diameter (min.) continuous vent or equivalent, 
indirectly connected to the toilet drain piping within the distance 
allowed in Sec. 3280.611(c)(5) for 3 inch trap arms through a 2-inch wet 
vented drain that carries the waste of not more than one fixture, or,
    (iii) Two or more vented drains when at least one is wet-vented, or 
2-inch diameter (minimum), and each drain is separately connected to the 
toilet drain. At least one of the drains shall connect within the 
distance allowed in Sec. 3280.611(c)(5) for 3-inch trap arms.
    (2) Vent pipe areas. Each individually vented fixture with a 1\1/2\ 
inch or smaller trap shall be provided with a vent pipe equivalent in 
area to a 1\1/4\ inch nominal pipe size. The main vent, toilet vent and 
relief vent, and the continuous vent of wet-vented systems shall have an 
area equivalent to 1\1/2\ inch nominal pipe size.
    (3) Common vent. When two fixture traps located within the distance 
allowed from their vent have their trap arms connected separately at the 
same level into an approved double fitting, an individual vent pipe may 
serve as a common vent without any increase in size.
    (4) Intersecting vents. Where two or more vent pipes are joined 
together, no increase in size shall be required; however, the largest 
vent pipe shall extend full size through the roof.
    (5) Distance of fixture trap from vent shall not exceed the values 
given in the following table:

               Maximum Distance of Fixtures From Vent Trap
------------------------------------------------------------------------
      Size of fixture drain (inches)            Distance trap to vent
------------------------------------------------------------------------
1\1/4\....................................  4 ft. 6 in.
1\1/2\....................................  4 ft 6 in.
2.........................................  5 ft.
3.........................................  6 ft.
------------------------------------------------------------------------

    (d) Anti-siphon trap vent. An anti-siphon trap vent may be used as a 
secondary vent system for plumbing fixtures protected by traps not 
larger than 1\1/2\ inches, when installed in accordance with the 
manufacturers' recommendations and the following conditions:
    (1) Not more than two fixtures individually protected by the device 
shall be drained by a common 1\1/2\ inch drain.
    (2) Minimum drain size for three or more fixtures individually 
protected by the device shall be 2 inches.
    (3) A primary vent stack must be installed to vent the toilet drain 
at the point of heaviest drainage fixture unit loading.
    (4) The device shall be installed in a location that permits a free 
flow of air and shall be accessible for inspection, maintenance, and 
replacement and the sealing function shall be at least 6 inches above 
the top of the trap arm.
    (5) Materials for the anti-siphon trap vent shall be as follows:
    (i) Cap and housing shall be listed acrylonitrile-butadiene-styrene, 
DWV grade;
    (ii) Stem shall be DWV grade nylon or acetal;
    (iii) Spring shall be stainless steel wire, type 302;
    (iv) Sealing disc shall be neoprene, conforming to CISPI-HSN-85, the 
Specification for Neoprene Rubber Gaskets for HUB and Spigot Cast Iron 
Soil Pipe and Fittings, and ASTM C 564-88, Standard Specification for 
Rubber Gaskets for Case Iron Soil Pipe and Fittings, or, Silicone 
Rubber, Low and High Temperature and Tear Resistant, Conforming to 
Rubber, Silicone, FS ZZ-R-765B-1970, With 1971 Amendment

[[Page 164]]

1; and Liners, Case, and Sheet, Overwrap; Water-Vapor Proof or 
Waterproof, Flexible, MIL-L-10547E-1975.
    (e) Grade and connections--(1) Horizontal vents. Each vent shall 
extend vertically from its fixture ``T'' or point of connection with the 
waste piping to a point not less than 6 inches above the extreme flood 
level of the fixture it is venting before offsetting horizontally or 
being connected with any other vent pipe. Vents for horizontal drains 
shall connect above the centerline of the drain piping ahead 
(downstream) of the trap. Where required by structural conditions, vent 
piping may offset below the rim of the fixture at the maximum angle or 
height possible.
    (f) Vent terminal--(1) Roof extension. Each vent pipe shall extend 
through its flashing and terminate vertically, undiminished in size, not 
less than 2 inches above the roof. Vent openings shall not be less than 
3 feet away from any motor-driven air intake that opens into habitable 
areas.
    (2) Flashing. The opening around each vent pipe shall be made 
watertight by an adequate flashing or flashing material.
    (g) Vent caps. Vent caps, if provided, shall be of the removable 
type (without removing the flashing from the roof). When vent caps are 
used for roof space ventilation and the caps are identical to vent caps 
used for the plumbing system, plumbing system caps shall be identified 
with permanent markings.

[40 FR 58752, Dec. 18, 1975, as amended at 42 FR 961, Jan. 4, 1977. 
Redesignated at 44 FR 20679, Apr. 6, 1979, as amended at 58 FR 55015, 
Oct. 25, 1993]



Sec. 3280.612  Tests and inspection.

    (a) Water system. All water piping in the water distribution system 
shall be subjected to a pressure test. The test shall be made by 
subjecting the system to air or water at 100 psi for 15 minutes without 
loss of pressure.
    (b) Drainage and vent system and plumbing fixtures. The waste and 
vent system shall be tested by one of the three following alternate 
methods for evidence or indication of leakage:
    (1) Water test. Before plumbing fixtures are connected, all of the 
openings into the piping shall be plugged and the entire piping system 
subjected to a static water test for 15 minutes by filling it with water 
to the top of the highest vent opening. There shall be no evidence of 
leakage.
    (2) Air test. After all fixtures have been installed, the traps 
filled with water, and the remaining openings securely plugged, the 
entire system shall be subjected to a 2-inch (manometer) water column 
air pressure test. If the system loses pressure, leaks may be located 
with smoke pumped into the system, or with soap suds spread on the 
exterior of the piping (Bubble test).
    (3) Flood level test. The manufactured home shall be in a level 
position, all fixtures shall be connected, and the entire system shall 
be filled with water to the rim of the water closet bowl. (Tub and 
shower drains shall be plugged). After all trapped air has been 
released, the test shall be sustained for not less than 15 minutes 
without evidence of leaks. Then the system shall be unplugged and 
emptied. The waste piping above the level of the water closet bowl shall 
then be tested and show no indication of leakage when the high fixtures 
are filled with water and emptied simultaneously to obtain the maximum 
possible flow in the drain piping.
    (c) Fixture test. The plumbing fixtures and connections shall be 
subjected to a flow test by filling them with water and checking for 
leaks and retarded flow while they are being emptied.
    (d) Shower compartments. Shower compartments and receptors shall be 
tested for leaks prior to being covered by finish material. Each pan 
shall be filled with water to the top of the dam for not less than 15 
minutes without evidence of leakage.

[40 FR 58752, Dec. 18, 1975, as amended at 42 FR 961, Jan. 4, 1977; 42 
FR 54383, Oct. 5, 1977. Redesignated at 44 FR 20679, Apr. 6, 1979, as 
amended at 58 FR 55015, Oct. 25, 1993]



          Subpart H--Heating, Cooling and Fuel Burning Systems



Sec. 3280.701  Scope.

    Subpart H of this standard covers the heating, cooling and fuel 
burning equipment installed within, on, or external to a manufactured 
home.

[[Page 165]]



Sec. 3280.702  Definitions.

    The definitions in this subpart apply to subpart H only.
    Accessible, when applied to a fixture, connection, appliance or 
equipment, means having access thereto, but which may require the 
removal of an access panel, door or similar obstruction.
    Air conditioner blower coil system means a comfort cooling appliance 
where the condenser section is placed external to the manufactured home 
and evaporator section with circulating blower attached to the 
manufactured home air supply duct system. Provision must be made for a 
return air system to the evaporator/blower section. Refrigerant 
connection between the two parts of the system is accomplished by 
tubing.
    Air conditioner split system means a comfort cooling appliance where 
the condenser section is placed external to the manufactured home and 
the evaporator section incorporated into the heating appliance or with a 
separate blower/coil section within the manufactured home. Refrigerant 
connection between the two parts of the system is accomplished by 
tubing.
    Air conditioning condenser section means that portion of a 
refrigerated air cooling or (in the case of a heat pump) heating system 
which includes the refrigerant pump (compressor) and the external heat 
exchanger.
    Air conditioning evaporator section means a heat exchanger used to 
cool or (in the case of a heat pump) heat air for use in comfort cooling 
(or heating) the living space.
    Air conditioning self contained system means a comfort cooling 
appliance combining the condenser section, evaporator and air 
circulating blower into one unit with connecting ducts for the supply 
and return air systems.
    Air duct means conduits or passageways for conveying air to or from 
heating, cooling, air conditioning or ventilation equipment, but not 
including the plenum.
    Automatic pump (oil lifter) means a pump, not an integral part of 
the oil-burning appliance, that automatically pumps oil from the supply 
tank and delivers the oil under a constant head to an oil-burning 
appliance.
    Btu. British thermal units means the quantity of heat required to 
raise the temperature of one pound of water one degree Fahrenheit.
    Btuh means British thermal units per hour.
    Burner means a device for the final conveyance of fuel or a mixture 
of fuel and air to the combustion zone.
    Central air conditioning system means either an air conditioning 
split system or an external combination heating/cooling system.
    Class 0 air ducts means ducts of materials and connectors having a 
fire-hazard classification of zero.
    Class 1 air ducts means ducts of materials and connectors having a 
flame-spread rating of not over 25 without evidence of continued 
progressive combustion and a smoke-developed rating of not over 50.
    Class 2 air ducts means ducts of materials and connectors having a 
flame-spread rating of not over 50 without evidence of continued 
progressive combustion and a smoke-developed rating of not over 50 for 
the inside surface and not over 100 for the outside surface.
    Clearance means the distance between the appliance, chimney, vent, 
chimney or vent connector or plenum and the nearest surface.
    Connector-Gas appliance: means a flexible or semi-rigid connector 
used to convey fuel gas between a gas outlet and a gas appliance.
    Energy Efficiency Ratio (EER) means the ratio of the cooling 
capacity output of an air conditioner for each unit of power input.

                 EER=Capacity (Btuh)/Power input (watts)

    External combination heating/cooling system means a comfort 
conditioning system placed external to the manufactured home with 
connecting ducts to the manufactured home for the supply and return air 
systems.
    Factory-built fireplace means a hearth, fire chamber and chimney 
assembly composed of listed factory-built components assembled in 
accordance with the terms of listing to form a complete fireplace.
    Fireplace stove means a chimney connected solid fuel-burning stove 
having part of its fire chamber open to the room.

[[Page 166]]

    Fuel gas piping system means the arrangement of piping, tubing, 
fittings, connectors, valves and devices designed and intended to supply 
or control the flow of fuel gas to the appliance(s).
    Fuel oil piping system means the arrangement of piping, tubing, 
fittings, connectors, valves and devices designed and intended to supply 
or control the flow of fuel oil to the appliance(s).
    Gas clothes dryer means a device used to dry wet laundry by means of 
heat derived from the combustion of fuel gases.
    Gas refrigerator means a gas-burning appliance which is designed to 
extract heat from a suitable chamber.
    Gas supply connection means the terminal end or connection to which 
a gas supply connector is attached.
    Gas supply connector, manufactured home means a listed flexible 
connector designed for connecting the manufactured home to the gas 
supply source.
    Gas vents means factory-built vent piping and vent fittings listed 
by an approved testing agency, that are assembled and used in accordance 
with the terms of their listings, for conveying flue gases to the 
outside atmosphere.
    (1) Type B gas vent means a gas vent for venting gas appliances with 
draft hoods and other gas appliances listed for use with Type B gas 
vents.
    (2) Type BW gas vent means a gas vent for venting listed gas-fired 
vented wall furnaces.
    Heat producing appliance means all heating and cooking appliances 
and fuel burning appliances.
    Heating appliance means an appliance for comfort heating or for 
domestic water heating.
    Liquefied petroleum gases. The terms Liquefied petroleum gases, LPG 
and LP-Gas as used in this standard shall mean and include any material 
which is composed predominantly of any of the following hydrocarbons, or 
mixtures of them: propane, propylene butanes (normal butane or 
isobutane), and butylenes.
    Plenum means an air compartment which is part of an air-distributing 
system, to which one or more ducts or outlets are connected.
    (1) Furnace supply plenum is a plenum attached directly to, or an 
integral part of, the air supply outlet of the furnace.
    (2) Furnace return plenum is a plenum attached directly to, or an 
integral part of, the return inlet of the furnace.
    Quick-disconnect device means a hand-operated device which provides 
a means for connecting and disconnecting a gas supply or connecting gas 
systems and which is equipped with an automatic means to shut off the 
gas supply when the device is disconnected.
    Readily accessible means direct access without the necessity of 
removing any panel, door, or similar obstruction.
    Roof jack means that portion of a manufactured home heater flue or 
vent assembly, including the cap, insulating means, flashing, and 
ceiling plate, located in and above the roof of a manufactured home.
    Sealed combustion system appliance means an appliance which by its 
inherent design is constructed so that all air supplied for combustion, 
the combustion system of the appliance, and all products of combustion 
are completely isolated from the atmosphere of the space in which it is 
installed.
    Water heater means an appliance for heating water for domestic 
purposes other than for space heating.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 52 FR 4586, Feb. 12, 1987; 58 FR 55015, Oct. 25, 1993]



Sec. 3280.703  Minimum standards.

    Heating, cooling and fuel burning appliances and systems in 
manufactured homes shall be free of defects, and shall conform to 
applicable standards in the following table unless otherwise specified 
in this standard. (See Sec. 3280.4) When more than one standard is 
referenced, compliance with any one such standard shall meet the 
requirements of this standard.

                               Appliances

Central Cooling Air Conditioners--UL 465-Seventh Edition-1987 With 
Revisions through December 24, 1987.
Liquid Fuel-Burning Heating Appliances for Manufactured Homes and 
Recreational Vehicle--UL 307A-Sixth Edition-1990, With Revisions through 
August 21, 1990.
Electrical Air Heaters-UL 1025-Second Edition-1987 With Revisions July 
13, 1989, February 6, 1990 and December 3, 1991.

[[Page 167]]

Electric Baseboard Heating Equipment--UL 1042-Third Edition-1987 With 
Revision July 15, 1993.
Electric Central Air Heating Equipment--UL 1096-Fourth Edition-1986 With 
Revisions July 16, 1986 and January 30, 1988.
Gas Burning Heating Appliances for Mobile Homes and Recreational 
Vehicles--UL 307B-First Edition-1982 With Revision May 18, 1987.
Gas Clothes Dryers Vol. 1, Type 1 Clothes Dryers--ANSI Z21.5.1-1992.
Gas Fired Absorption Summer Air Conditioning Appliances--ANSI Z21.40.1-
1981, With Addenda Z21.40.1a-1982.
Gas-Fired Central Furnaces [Except Direct Vent System Central Furnaces]-
-ANSI Z21.47-1990, With Addendum Z21.47a-1990 and Z21.47b-1992.
Household Cooking Gas Appliances ANSI Z21.1-1990 With Addenda Z21.1a-
1991 and Z211b-1993.
Refrigerators Using Gas Fuel--ANSI Z21.19-1990, With Addenda Z21.19a-
1992.
Gas Water Heaters Vol. 1, Storage Water Heaters With Input Ratings of 
75,000 BTU per hour or Less--ANSI Z21.10.1-1990, With Addendum 
Z21.10.1a-1991 and Z21.10.1b-1992.
Household Electric Storage Tank Water Heaters--UL 174-Seventh Edition-
1989 With Revisions May 8, 1990 and January 22, 1991.

                        Ferrous Pipe and Fittings

Standard Specification for Pipe, Steel, Black and Hot-Dipped, Zinc-
Coated, Welded and Seamless--ASTM A53-93.
Standard Specification for Electric-Resistance-Welded Coiled Steel 
Tubing for Gas and Fuel Oil Lines--*ASTM A539-90a.
Pipe Threads, General Purpose (Inch)--ANSI/ASME B1.20.1-1983.
Welding and Seamless Wrought Steel Pipe--ANSI/ASME B36.10-1979.

                  Nonferrous Pipe, Tubing and Fittings

Standard Specification for Seamless Copper Water Tube--ASTM B88-93.
Standard Specification for Seamless Copper Tube for Air Conditioning and 
Refrigeration Field Service--ASTM B280-93.
Metal Connectors for Gas Appliances--ANSI Z21.24-1987, With Addena 
Z21.24a 1990 and Z21.24b-1992.
Manually Operated Gas Valves for Appliances, Appliance Connector Valves 
and Hose End Valves--ANSI Z21.15-1992.
Standard for Gas Supply Connectors for Manufactured Homes--IAPMO TSC 9-
92.
Standard Specification for General Requirements for Wrought Seamless 
Copper and Copper-Alloy Tubes--ASTM B251-93.
Standard Specification for Seamless Copper Pipe, Standard Sizes--ASTM 
B42-93.
Direct Vent Central Furnaces--ANSI Z21.64-1990, With Addenda Z21.64a-
1992.

                              Miscellaneous

Factory-Made Air Ducts and Connectors--UL 181-Seventh Edition-1990, With 
Revision November 20, 1990.
Tube Fittings for Flammable and Combustible Fluids, Refrigeration 
Service, and Marine Use--UL 109-Fifth Edition-1993.
Pigtails and Flexible Hose Connectors for LP-Gas--UL 569-Sixth Edition-
1990.
Roof Jacks for Manufactured Homes and Recreational Vehicles--UL 311-
Seventh Edition-1990.
Relief Valves and Automatic Gas Shutoff Devices for Hot Water Supply 
Systems--ANSI Z21.22-1986, With Addenda Z21.22a-1990.
Automatic Gas Ignition Systems and Components--ANSI Z21.20-1989, With 
Addendum Z21.20a-1991 and Z21.20b-1992.
Automatic Valves for Gas Appliances--ANSI Z21.21-1987, With Addendum 
Z21.21a-1989 and Z21.21b-1992.
Gas Appliance Thermostats--ANSI Z21.23-1989, With Addenda Z21.23a-1991.
Gas Vents--UL 441-Seventh Edition-1991.
Installation of Oil-Burning Equipment, NFPA 31-1992 Edition.
    The following sections are applicable:
    1-1
    1-2
    1-3
    1-4 except 1-4.1
    1-5.1
    1-5.2
    1-5.4.2
    1-5.4.3
    1-5.5
    1-5.6
    1-6
    1-7.2 except 1-7.2.4
    1-8
    1-9
    1-10.1
    3-1.1
    3-1.3
    3-1.4
    3-1.5
    3-1.6
    3-10
    4-1.3
    4-1.4
    4-1.5
    4-2
    4-3 except 4-3.2
    4-4 except 4-4.2, 4-4.5.4, 4-4.6
    4-4.7, 4-4.9 and 4-4.10 Appendices B, C. and E

National Fuel Gas Code--NFPA 54-1992 ANSI 223.1.
Warm Air Heating and Air Conditioning Systems, 1993 Edition, NFPA-90B.
    The following sections are applicable:
    2-2.4
    2-3.6
    Table 3-1.3, Section B
    4-1.6


[[Page 168]]


Standard for the Storage and Handling of Liquefied Petroleum Gases, 1992 
Edition--NFPA-58.
Flares for Tubing (1972)--SAE-J533b.
Chimneys, Factory-Built Residential Type and Building Heating Appliance-
-UL 103-Seventh Edition--1989 With Revision February 23, 1989.
Factory-Built Fireplaces--UL 127-Sixth Edition With Revisions January 4, 
1989, June 10, 1991, June 29, 1992.
Room Heaters Solid-Fuel Type--UL 1482--Third Edition--1988 With Revision 
September 13, 1988.
Fireplace Stoves--UL 737--Sixth Edition--1988 With Revisions September 
19, 1988, July 10, 1990 and June 10, 1991.
Unitary Air-Conditioning and Air-Source Heat Pump Equipment--ANSI/ARI 
210/240-89.
AGA Requirements for Gas Connectors for Connection of Fixed Appliances 
for Outdoor Installation, Park Trailers and Manufactured (Mobile) Homes 
to the Gas Supply--No. 3-87.

[58 FR 55015, Oct. 25, 1993]



Sec. 3280.704  Fuel supply systems.

    (a) LP--Gas system design and service line pressure. (1) Systems 
shall be of the vapor-withdrawal type.
    (2) Gas, at a pressure not over 14 inches water column (\1/2\ psi), 
shall be delivered from the system into the gas supply connection.
    (b) LP-gas containers--(1) Maximum capacity. No more than two 
containers having an individual water capacity of not more than 105 
pounds (approximately 45 pounds LP-gas capacity), shall be installed on 
or in a compartment of any manufactured home.
    (2) Construction of containers. Containers shall be constructed and 
marked in accordance with the specifications for LP-Gas Containers of 
the U.S. Department of Transportation (DOT) or the Rules for 
Construction of Pressure Vessels 1986, ASME Boiler and Pressure Vessel 
Code section VIII, Division 1 ASME Containers shall have a design 
pressure of at least 312.5 psig.
    (i) Container supply systems shall be arranged for vapor withdrawal 
only.
    (ii) Container openings for vapor withdrawal shall be located in the 
vapor space when the container is in service or shall be provided with a 
suitable internal withdrawal tube which communicates with the vapor 
space on or near the highest point in the container when it is mounted 
in service position, with the vehicle on a level surface. Containers 
shall be permanently and legibly marked in a conspicuous manner on the 
outside to show the correct mounting position and the position of the 
service outlet connection. The method of mounting in place shall be such 
as to minimize the possibility of an incorrect positioning of the 
container.
    (3) Location of LP-gas containers and systems. (i) LP-gas containers 
shall not be installed, nor shall provisions be made for installing or 
storing any LP-gas container, even temporarily, inside any manufactured 
home except for listed, completely self-contained hand torches, 
lanterns, or similar equipment with containers having a maximum water 
capacity of not more than 2\1/2\ pounds (approximately one pound LP-gas 
capacity).
    (ii) Containers, control valves, and regulating equipment, when 
installed, shall be mounted on the ``A'' frame of the manufactured home, 
or installed in a compartment that is vaportight to the inside of the 
manufactured home and accessible only from the outside. The compartment 
shall be ventilated at top and bottom to facilitate diffusion of vapors. 
The compartment shall be ventilated with two vents having an aggregate 
area of not less than two percent of the floor area of the compartment 
and shall open unrestricted to the outside atmosphere. The required 
vents shall be equally distributed between the floor and ceiling of the 
compartment. If the lower vent is located in the access door or wall, 
the bottom edge of the vent shall be flush with the floor level of the 
compartment. The top vent shall be located in the access door or wall 
with the bottom of the vent not more than 12 inches below the ceiling 
level of the compartment. All vents shall have an unrestricted discharge 
to the outside atmosphere. Access doors or panels of compartments shall 
not be equipped with locks or require special tools or knowledge to 
open.
    (iii) Permanent and removable fuel containers shall be securely 
mounted to prevent jarring loose, slipping or rotating and the 
fastenings shall be designed and constructed to withstand static loading 
in any direction equal to

[[Page 169]]

twice the weight of the tank and attachments when filled with fuel, 
using a safety factor of not less than four based on the ultimate 
strength of the material to be used.
    (4) LP-gas container valves and accessories. (i) Valves in the 
assembly of a two-cylinder system shall be arranged so that replacement 
of containers can be made without shutting off the flow of gas to the 
appliance(s). This provision is not to be construed as requiring an 
automatic change-over device.
    (ii) Shutoff valves on the containers shall be protected as follows, 
in transit, in storage, and while being moved into final utilization by 
setting into a recess of the container to prevent possibility of their 
being struck if container is dropped upon a flat surface, or by 
ventilated cap or collar, fastened to the container, capable of 
withstanding a blow from any direction equivalent to that of a 30-pound 
weight dropped 4 feet. Construction shall be such that the blow will not 
be transmitted to the valve.
    (iii) [Reserved]
    (iv) Regulators shall be connected directly to the container shutoff 
valve outlets or mounted securely by means of a support bracket and 
connected to the container shutoff valve or valves with listed high 
pressure connections. If the container is permanently mounted the 
connector shall be as required above or with a listed semi-rigid tubing 
connector.
    (5) LP-gas safety devices. (i) DOT containers shall be provided with 
safety relief devices as required by the regulations of the U.S. 
Department of Transportation. ASME containers shall be provided with 
relief valves in accordance with subsection 221 of the Standard for the 
Storage and Handling Liquefied Petroleum Gases, NFPA No. 58-1992. Safety 
relief valves shall have direct communication with the vapor space of 
the vessel.
    (ii) The delivery side of the gas pressure regulator shall be 
equipped with a safety relief device set to discharge at a pressure not 
less than two times and not more than three times the delivery pressure 
of the regulator.
    (iii) Systems mounted on the ``A'' frame assembly shall be so 
located that the discharge from the safety relief devices shall be into 
the open air and not less than three feet horizontally from any opening 
into the manufactured home below the level of such discharge.
    (iv) Safety relief valves located within liquefied petroleum gas 
container compartments may be less than three feet from openings 
provided the bottom vent of the compartment is at the same level or 
lower than the bottom of any opening into the vehicle, or the 
compartment is not located on the same wall plane as the opening(s) and 
is at least two feet horizontally from such openings.
    (6) LP-gas system enclosure and mounting. (i) Housings and 
enclosures shall be designed to provide proper ventilation at least 
equivalent to that specified in Sec. 3280.704(b)(3)(ii).
    (ii) Doors, hoods, domes, or portions of housings and enclosures 
required to be removed or opened for replacement of containers shall 
incorporate means for clamping them firmly in place and preventing them 
from working loose during transit.
    (iii) Provisions shall be incorporated in the assembly to hold the 
containers firmly in position and prevent their movement during transit.
    (iv) Containers shall be mounted on a substantial support or a base 
secured firmly to the vehicle chassis. Neither the container nor its 
support shall extend below the manufactured home frame.
    (c) Oil tanks--(1) Installation. Oil tanks and listed automatic 
pumps (oil lifters) installed for gravity flow of oil to heating 
equipment shall be installed so that the top of the tank is no higher 
than 8 feet above the appliance oil control and the bottom of the tank 
is not less than 18 inches above the appliance oil control.
    (2) Auxiliary oil storage tank. Oil supply tanks affixed to a 
manufactured home shall be so located as to require filling and draining 
from the outside and shall be in a place readily available for 
inspection. If the fuel supply tank is located in a compartment of a 
manufactured home, the compartment shall be ventilated at the bottom to 
permit diffusion of vapors and shall be insulated from the structural 
members of the body. Tanks so installed shall be

[[Page 170]]

provided with an outside fill and vent pipe and an approved liquid level 
gage.
    (3) Shutoff valve. A readily accessible, approved manual shutoff 
valve shall be installed at the outlet of an oil supply tank. The valve 
shall be installed to close against the supply.
    (4) Fuel oil filters. All oil tanks shall be equipped with an 
approved oil filter or strainer located downstream from the tank shutoff 
valve. The fuel oil filter or strainer shall contain a sump with a drain 
for the entrapment of water.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 47 FR 49390, Nov. 1, 1982; 52 FR 4587, Feb. 12, 1987; 58 
FR 55016, Oct. 25, 1993]



Sec. 3280.705  Gas piping systems.

    (a) General. The requirements of this section shall govern the 
installation of all fuel gas piping attached to any manufactured home. 
The gas piping supply system shall be designed for a pressure not 
exceeding 14 inch water column (\1/2\ psi) and not less than 7 inch 
water column (\1/4\ psi). The manufacturer shall indicate in his written 
installation instructions the design pressure limitations for safe and 
effective operation of the gas piping system. None of the requirements 
listed in this section shall apply to the piping supplied as a part of 
an appliance. All exterior openings around piping, ducts, plenums or 
vents shall be sealed to resist the entrance of rodents.
    (b) Materials. All materials used for the installation, extension, 
alteration, or repair of any gas piping system shall be new and free 
from defects or internal obstructions. It shall not be permissible to 
repair defects in gas piping or fittings. Inferior or defective 
materials shall be removed and replaced with acceptable material. The 
system shall be made of materials having a melting point of not less 
than 1,450 F, except as provided in Sec. 3280.705(e). They shall consist 
of one or more of the materials described in Sec. 3280.705(b) (1) 
through (4).
    (1) Steel or wrought-iron pipe shall comply with ANSI Standard 
B36.10-1979, Welded and Seamless Wrought Steel Pipe. Threaded brass pipe 
in iron pipe sizes may be used. Threaded brass pipe shall comply with 
ASTM B43-91, Standard Specification for Seamless Red Brass Pipe, 
Standard Sizes.
    (2) Fittings for gas piping shall be wrought iron, malleable iron, 
steel, or brass (containing not more than 75 percent copper).
    (3) Copper tubing shall be anneled type, Grade K or L, conforming to 
the Standard Specification for Seamless Copper Water Tube (ASTM B88-93) 
or shall comply with the Standard Specification for Seamless Copper Tube 
for Air Conditioning and Refrigeration Field Service, ASTM B 280-93. 
Copper tubing shall be internally tinned.
    (4) Steel tubing shall have a minimum wall thickness of 0.032 inch 
for tubing of \1/2\ inch diameter and smaller and 0.049 inch for 
diameters \1/2\ inch and larger. Steel tubing shall be constructed in 
accordance with ASTM Standard Specification for Electric-Resistance-
Welded Coiled Steel Tubing for Gas and Fuel Oil Lines, ASTM A 539-83, 
and shall be externally corrosion protected.
    (c) Piping design. Each manufactured home requiring fuel gas for any 
purpose shall be equipped with a natural gas piping system acceptable 
for LP-gas. Where fuel gas piping is to be installed in more than one 
section of an expandable or multiple unit home, the design and 
construction of the crossover(s) shall be as follows:
    (1) All points of crossover shall be readily accessible from the 
exterior of the home.
    (2) The connection(s) between units shall be made with a 
connector(s) listed for exterior use or direct plumbing sized in 
accordance with Sec. 3280.705(d). A shutoff valve of the nondisplaceable 
rotor type conforming to ANSI Z21.15-1992 Manually Operated Gas Valves 
for Appliances, Appliances Connector Valves and Hose End Valves, 
suitable for outdoor use shall be installed at each crossover point 
upstream of the connection when listed connectors are used.
    (3) The connection(s) may be made by a listed quick disconnect 
device which shall be designed to provide a positive seal of the supply 
side of the gas system when such device is separated.
    (4) The flexible connector, direct plumbing pipe, or ``quick 
disconnect''

[[Page 171]]

device shall be provided with protection from mechanical and impact 
damage and located to minimize the possibility of tampering.
    (5) For gas line cross over connections made with either hard pipe 
or flexible connectors, the crossover point(s) shall be capped on the 
supply side to provide a positive seal and covered on the other side 
with a suitable protective covering.
    (6) Suitable protective coverings for the connection device(s) when 
separated, shall be permanently attached to the device or flexible 
connector.
    (7) When a quick disconnect device is installed, a 3 inch by 1\3/4\ 
inch minimum size tag made of etched, metal-stamped or embossed brass, 
stainless steel, anodized or alcalde aluminum not less than 0.020 inch 
thick or other approved material (e.g., 0.005 inch plastic laminates) 
shall be permanently attached on the exterior wall adjacent to the 
access to the ``quick disconnect'' device. Each tag shall be legibly 
inscribed with the following information using letters no smaller than 
\1/4\ inch high:

      Do Not Use Tools To Separate the ``Quick-Disconnect'' Device

    (d) Gas pipe sizing. Gas piping systems shall be sized so that the 
pressure drop to any appliance inlet connection from any gas supply 
connection, when all appliances are in operation at maximum capacity, is 
not more than 0.5 inch water column as determined on the basis of test, 
or in accordance with table 3280.705(d). When determining gas pipe 
sizing in the table, gas shall be assumed to have a specific gravity of 
0.65 and rated at 1000 B.T.U. per cubic foot. The natural gas supply 
connection(s) shall be not less than the size of the gas piping but 
shall be not smaller than \3/4\ inch nominal pipe size.
    (e) Joints for gas pipe. All pipe joints in the piping system, 
unless welded or brazed, shall be threaded joints that comply with Pipe 
Threads, General Purpose (Inch), adopted 25 October 1984, ANSI/ASME 
B1.20.1-1983. Right and left nipples or couplings shall not be used. 
Unions, if used, shall be of ground joint type. The material used for 
welding or brazing pipe connections shall have a melting temperature in 
excess of 1,000 F.
    (f) Joints for tubing. (1) Tubing joints shall be made with either a 
single or a double flare of 45 degrees in accordance with Flares For 
Tubing, SAE-J533b-1972 or with other listed vibration-resistant 
fittings, or joints may be brazed with material having a melting point 
exceeding 1,000 F. Metallic ball sleeve compression-type tubing fittings 
shall not be used.
    (2) Steel tubing joints shall be made with a double-flare in 
accordance with Flares For Tubing, SAE-J533b-1972.
    (g) Pipe joint compound. Screw joints shall be made up tight with 
listed pipe joint compound, insoluble in liquefied petroleum gas, and 
shall be applied to the male threads only.
    (h) Concealed tubing. Tubing shall not be run inside walls, floors, 
partitions, or roofs. Where tubing passes through walls, floors, 
partitions, roofs, or similar installations, such tubing shall be 
protected by the use of weather resistant grommets that shall snugly fit 
both the tubing and the hole through which the tubing passes.

[[Page 172]]



Part I--Maximum Capacity of Different Sizes of Pipe and Tubing in Thousands of Btu's Per Hour of Natural Gas For Gas Pressures of 0.5 Psig or Less and a
                                                    Maximum Pressure Drop of \1/2\ Inch Water Column
--------------------------------------------------------------------------------------------------------------------------------------------------------
                      Iron pipe sizes--Length in feet                                                   Tubing--Length in feet
--------------------------------------------------------------------------------------------------------------------------------------------------------
 I.D.    10     20     30     40     50     60     70     80     90    100    O.D.    10     20     30     40     50     60     70     80     90    100
--------------------------------------------------------------------------------------------------------------------------------------------------------
  \1/     43     29     24     20     18     16     15     14     13     12    \3/     27     18     15     13     11     10      9      9      8      8
 4\                                                               8\
  \3/     95     65     52     45     40     36     33     31     29     27    \1/     56     38     31     26     23     21     19     18     17     16
 8\                                                               2\
  \1/    175    120     97     82     73     66     61     57     53     50    \5/    113     78     62     53     47     43     39     37     34     33
 2\                                                               8\
  \3/    360    250    200    170    151    138    125    118    110    103    \3/    197    136    109     93     83     75     69     64     60     57
 4\                                                               4\
1
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 173]]

                           Part II [Reserved]

    (i) Concealed joints. Piping or tubing joints shall not be located 
in any floor, wall partition, or similar concealed construction space.
    (j) Gas supply connections. When gas appliances are installed, at 
least one gas supply connection shall be provided on each home. The 
connection shall not be located beneath an exit door. Where more than 
one connection is provided, the piping system shall be sized to provide 
adequate capacity from each supply connection.
    (k) Identification of gas supply connections. Each manufactured home 
shall have permanently affixed to the exterior skin at or near each gas 
supply connection or the end of the pipe, a tag of 3 inches by 1\3/4\ 
inches minimum size, made of etched, metal-stamped or embossed brass, 
stainless steel, anodized or alcalde aluminum not less than 0.020 inch 
thick, or other approved material (e.g., 0.005 inch plastic laminates), 
which reads as follows. The connector capacity indicated on this tag 
shall be equal to or greater than the total Btuh rating of all intended 
gas appliances.

   ------------------------------------------------------------------
                 Combination LP-Gas and Natural Gas System
               This gas piping system is designed for use of 
      either liquefied petroleum gas or natural gas.
               NOTICE: BEFORE TURNING ON GAS BE CERTAIN APPLIANCES 
      ARE DESIGNED FOR THE GAS CONNECTED AND ARE EQUIPPED WITH 
      CORRECT ORIFICES. SECURELY CAP THIS INLET WHEN NOT CONNECTED 
      FOR USE.
               When connecting to lot outlet, use a listed gas 
      supply connector for mobile homes rated at [ballot] 100,000 
      Btuh or more; [ballot] 250,000 Btuh or more.
               Before turning on gas, make certain all gas 
      connections have been made tight, all appliance valves are 
      turned off, and any unconnected outlets are capped.
               After turning on gas, test gas piping and 
      connections to appliances for leakage with soapy water or 
      bubble solution, and light all pilots.

   ------------------------------------------------------------------

The connector capacity indicated on this tag shall be equal to or 
greater than the total Btuh rating of all intended gas appliances.
    (l) LP-gas supply connectors. (1) A listed LP-gas flexible 
connection conforming to the UL Standard for Pigtails, and Flexible Hose 
Connectors for LP-Gas, UL 569--Sixth Edition--1990, or equal shall be 
supplied when LP-gas cylinder(s) and regulator(s) are supplied.
    (2) Appliance connections. All gas burning appliances shall be 
connected to the fuel piping. Materials as provided in Sec. 3280.705(b) 
or listed appliance connectors shall be used. Listed appliance 
connectors when used shall not run through walls, floors, ceilings or 
partitions, except for cabinetry, and shall be 3 feet or less in length 
or 6 feet or less for cooking appliances. Connectors of aluminum shall 
not be used outdoors. A manufactured home containing a combination LP-
natural-gas-system may be provided with a gas outlet to supply exterior 
appliances when installed in accordance with the following:
    (i) No portion of the completed installation shall project beyond 
the wall of the manufactured home.
    (ii) The outlet shall be provided with an approved quick-disconnect 
device, which shall be designed to provided a positive seal on the 
supply side of the gas system when the appliance is disconnected. A 
shutoff valve of the nondisplaceable rotor type conforming to ANSI 
Z21.15-1992, Manually Operated Gas Valves, shall be installed 
immediately upstream of the quick-disconnect device. The complete device 
shall be provided as part of the original installation.
    (iii) Protective caps or plugs for the ``quick-disconnect'' device, 
when disconnected, shall be permanently attached to the manufactured 
home adjacent to the device.
    (iv) A tag shall be permanently attached to the outside of the 
exterior wall of the manufactured home as close as possible to the gas 
supply connection. The tag shall indicate the type of gas and the Btuh 
capacity of the outlet and shall be legibly inscribed as follows:

    THIS OUTLET IS DESIGNED FOR USE WITH GAS PORTABLE APPLIANCES WHOSE 
TOTAL INPUT DO NOT EXCEED

[[Page 174]]

------ BTUH. REPLACE PROTECTIVE COVERING OVER CONNECTOR WHEN NOT IN USE.

    (3) Valves. A shutoff valve shall be installed in the fuel piping at 
each appliance inside the manufactured home structure, upstream of the 
union or connector in addition to any valve on the appliance and so 
arranged to be accessible to permit serving of the appliance and removal 
of its components. The shutoff valve shall be located within 6 feet of a 
cooking appliance and within 3 feet of any other appliance. A shutoff 
valve may serve more than one appliance if located as required above. 
Shut off valves shall be of the nondisplaceable rotor type and conform 
ANSI Z21.15-1992, Manually Operated Gas Valves.
    (4) Gas piping system openings. All openings in the gas piping 
system shall be closed gas-tight with threaded pipe plugs or pipe caps.
    (5) Electrical ground. Gas piping shall not be used for an 
electrical ground.
    (6) Couplings. Pipe couplings and unions shall be used to join 
sections of threaded piping. Right and left nipples or couplings shall 
not be used.
    (7) Hangers and supports. All gas piping shall be adequately 
supported by galvanized or equivalently protected metal straps or 
hangers at intervals of not more than 4 feet, except where adequate 
support and protection is provided by structural members. Solid-iron-
pipe gas supply connection(s) shall be rigidly anchored to a structural 
member within 6 inches of the supply connection(s).
    (8) Testing for leakage. (i) Before appliances are connected, piping 
systems shall stand a pressure of at least six inches mercury or three 
PSI gage for a period of not less than ten minutes without showing any 
drop in pressure. Pressure shall be measured with a mercury manometer or 
slope gage calibrated so as to be read in increments of not greater than 
one-tenth pound, or an equivalent device. The source of normal operating 
pressure shall be isolated before the pressure tests are made. Before a 
test is begun, the temperature of the ambient air and of the piping 
shall be approximately the same, and constant air temperature be 
maintained throughout the test.
    (ii) After appliances are connected, the piping system shall be 
pressurized to not less than 10 inches nor more than 14 inches water 
column and the appliance connections tested for leakage with soapy water 
or bubble solution.

[40 FR 58752, Dec. 18, 1975, as amended at 42 FR 54383, Oct. 5, 1977. 
Redesignated at 44 FR 20679, Apr. 6, 1979, as amended at 52 FR 4587, 
Feb. 12, 1987; 58 FR 55016, Oct. 25, 1993]



Sec. 3280.706  Oil piping systems.

    (a) General. The requirements of this section shall govern the 
installation of all liquid fuel piping attached to any manufactured 
home. None of the requirements listed in this section shall apply to the 
piping in the appliance(s).
    (b) Materials. All materials used for the installation extension, 
alteration, or repair, of any oil piping systems shall be new and free 
from defects or internal obstructions. The system shall be made of 
materials having a melting point of not less than 1,450 F, except as 
provided in Sec. 280.706(d) and (e). They shall consist of one or more 
of the materials described in Sec. 3280.706(b) (1) through (4).
    (1) Steel or wrought-iron pipe shall comply with ANSI B 36.10-1979, 
Welded and Seamless Wrought Steel Pipe. Threaded copper or brass pipe in 
iron pipe sizes may be used.
    (2) Fittings for oil piping shall be wrought-iron, malleable iron, 
steel, or brass (containing not more than 75 percent copper).
    (3) Copper tubing shall be annealed type, Grade K or L conforming to 
the Standard Specification for Seamless Copper Water Tube, ASTM B88-93, 
or shall comply with the Standard Specification for Seamless Copper Tube 
for Air Conditioning and Refrigeration Field Service, ASTM B280-93.
    (4) Steel tubing shall have a minimum wall thickness of 0.032 inch 
for diameters up to \1/2\ inch and 0.049 inch for diameters \1/2\ inch 
and larger. Steel tubing shall be constructed in accordance with the 
Specification for Electric-Resistance-Welded Coiled Steel Tubing for Gas 
and Field Oil Lines, ASTM, A539-90a, and shall be externally corrosion 
protected.

[[Page 175]]

    (c) Size of oil piping. The minimum size of all fuel oil tank piping 
connecting outside tanks to the appliance shall be no smaller than \3/8\ 
inch OD copper tubing or \1/4\ inch IPS. If No. 1 fuel oil is used with 
a listed automatic pump (fuel lifter), copper tubing shall be sized as 
specified by the pump manufacturer.
    (d) Joints for oil piping. All pipe joints in the piping system, 
unless welded or brazed, shall be threaded joints which comply with 
ANSI/ASME B1.20.1-1983, Pipe Threads, General Purpose (Inch). The 
material used for brazing pipe connections shall have a melting 
temperature in excess of 1,000 F.
    (e) Joints for tubing. Joints in tubing shall be made with either a 
single or double flare of the proper degree, as recommended by the 
tubing manufacturer, by means of listed tubing fittings, or brazed with 
materials having a melting point in excess of 1,000 F.
    (f) Pipe joint compound. Threaded joints shall be made up tight with 
listed pipe joint compound which shall be applied to the male threads 
only.
    (g) Couplings. Pipe couplings and unions shall be used to join 
sections of threaded pipe. Right and left nipples or couplings shall not 
be used.
    (h) Grade of piping. Fuel oil piping installed in conjunction with 
gravity feed systems to oil heating equipment shall slope in a gradual 
rise upward from a central location to both the oil tank and the 
appliance in order to eliminate air locks.
    (i) Strap hangers. All oil piping shall be adequately supported by 
galvanized or equivalently protected metal straps or hangers at 
intervals of not more than 4 feet, except where adequate support and 
protection is provided by structural members. Solid-iron-pipe oil supply 
connection(s) shall be rigidly anchored to a structural member within 6 
inches of the supply connection(s).
    (j) Testing for leakage. Before setting the system in operation, 
tank installations and piping shall be checked for oil leaks with fuel 
oil of the same grade that will be burned in the appliance. No other 
material shall be used for testing fuel oil tanks and piping. Tanks 
shall be filled to maximum capacity for the final check for oil leakage.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 52 FR 4588, Feb. 12, 1987; 58 FR 55017, Oct. 25, 1993]



Sec. 3280.707  Heat producing appliances.

    (a) Heat-producing appliances and vents, roof jacks and chimneys 
necessary for their installation in manufactured homes shall be listed 
or certified by a nationally recognized testing agency for use in 
manufactured homes.
    (1) A manufactured home shall be provided with a comfort heating 
system.
    (i) When a manufactured home is manufactured to contain a heating 
appliance, the heating appliance shall be installed by the manufacturer 
of the manufactured home in compliance with applicable sections of this 
subpart.
    (ii) When a manufactured home is manufactured for field application 
of an external heating or combination heating/cooling appliance, 
preparation of the manufactured home for this external application shall 
comply with the applicable sections of this part.
    (2) Gas and oil burning comfort heating appliances shall have a flue 
loss of not more than 25 percent, and a thermal efficiency of not less 
than that specified in nationally recognized standards (See 
Sec. 3280.703).
    (b) Fuel-burning heat-producing appliances and refrigeration 
appliances, except ranges and ovens, shall be of the vented type and 
vented to the outside.
    (c) Fuel-burning appliances shall not be converted from one fuel to 
another fuel unless converted in accordance with the terms of their 
listing and the appliance manufacturer's instructions.
    (d) Performance efficiency. (1) All automatic electric storage water 
heaters installed in manufactured homes shall have a standby loss not 
exceeding 43 watts/meter\2\ (4 watts/ft\2\) of tank surface area. The 
method of test for standby loss shall be as described in section 4.3.1 
of Household Automatic Electric Storage Type Water Heaters, ANSI C72.1-
1972.
    (2) All gas and oil-fired automatic storage water heaters shall have 
a recovery efficiency, E, and a standby

[[Page 176]]

loss, S, as described below. The method of test of E and S shall be as 
described in section 2.7 of Gas Water heaters, Vol. I, Storage Water 
Heaters with Input/Ratings of 75,000 BTU per hour or less, ANSI 
Z21.10.1-1990, with addendums Z21.10.1a-1991 and Z21.10.1b-1992 except 
that for oil-fired units. CF=1.0, Q=total gallons of oil consumed and 
H=total heating value of oil in BTU/gallon.

------------------------------------------------------------------------
                                       Recovery
   Storage capacity in gallons        efficiency         Standby loss
------------------------------------------------------------------------
Less than 25....................  At least 75         Not more than 7.5
                                   percent.            percent.
25 up to 35.....................  00................  Not more than 7
                                                       percent.
35 or more......................  00................  Not more than 6
                                                       percent.
------------------------------------------------------------------------

    (e) Each space heating, cooling or combination heating and cooling 
system shall be provided with at least one readily adjustable automatic 
control for regulation of living space temperature. The control shall be 
placed a minimum of 3 feet from the vertical edge of the appliance 
compartment door. It shall not be located on an exterior wall or on a 
wall separating the appliance compartment from a habitable room.
    (f) Oil-fired heating equipment. All oil-fired heating equipment 
shall conform to liquid fuel-burning heating appliances for UL 307A--
Fifth Edition--1987, Liquid Fuel-Burning Heating Appliances for Mobile 
Homes and Recreational Vehicles, and be installed in accordance with 
Installation of Oil Burning Equipment, NFPA 31-1983. Regardless of the 
requirements of the above referenced standards, or any other referenced 
standards, the following are not required:
    (1) External switches or remote controls which shut off the burner 
or the flow of oil to the burner, or
    (2) An emergency disconnect switch to interrupt electric power to 
the equipment under conditions of excessive temperature.

[40 FR 58752, Dec. 17, 1975, as amended at 42 FR 54383, Oct. 5, 1977. 
Redesignated at 44 FR 20679, Apr. 6, 1979, as amended at 47 FR 49391, 
Nov. 1, 1982; 52 FR 4588, Feb. 12, 1987; 52 FR 47553, Dec. 15, 1987; 58 
FR 55017, Oct. 25, 1993]



Sec. 3280.708  Exhaust duct system and provisions for the future installation of a clothes dryer.

    (a) Clothes dryers. (1) All gas and electric clothes dryers shall be 
exhausted to the outside by a moisture-lint exhaust duct and termination 
fitting. When the clothes dryer is supplied by the manufacturer, the 
exhaust duct and termination fittings shall be completely installed by 
the manufacturer. However, if the exhaust duct system is subject to 
damage during transportation, it need not be completely installed at the 
factory when:
    (i) The exhaust duct system is connected to the clothes dryer, and
    (ii) A moisture lint exhaust duct system is roughed in and 
installation intructions are provided in accordance with paragraph 
(b)(3) or (c) of this section.
    (2) A clothes dryer moisture-lint exhaust duct shall not be 
connected to any other duct, vent or chimney.
    (3) The exhaust duct shall not terminate beneath the manufactured 
home.
    (4) Moisture-lint exhaust ducts shall not be connected with sheet 
metal screws or other fastening devices which extend into the interior 
of the duct.
    (5) Moisture-lint exhaust duct and termination fittings shall be 
installed in accordance with the appliance manufacturer's printed 
instructions.
    (b) Provisions for future intallation of a gas clothes dryer. A 
manufactured home may be provided with ``stubbed in'' equipment at the 
factory to supply a gas clothes dryer for future installation by the 
owner provided it complies with the following provisions:
    (1) The ``stubbed in'' gas outlet shall be provided with a shutoff 
valve, the outlet of which is closed by threaded pipe plug or cap;
    (2) The ``stubbed in'' gas outlet shall be permanently labeled to 
identify it for use only as the supply connection for a gas clothes 
dryer;
    (3) A moisture lint duct system consisting of a complete access 
space (hole) through the wall or floor cavity with a cap or cover on the 
interior and exterior of the cavity secured in such a manner that they 
can be removed by a common household tool shall be provided. The cap or 
cover in place shall limit air infiltration and be designed to

[[Page 177]]

resist the entry of water or rodents. The manufacturer is not required 
to provide the moisture-lint exhaust duct or the termination fitting. 
The manufacturer shall provide written instructions to the owner on how 
to complete the exhaust duct installation in accordance with provisions 
of Sec. 3280.708(a)(1) through (5).
    (c) Provisions for future installation of a electric clothes dryers. 
When wiring is installed to supply an electric clothes dryer for future 
installation by the owner, the manufacturer shall:
    (1) Provide a roughed in moisture-lint exhaust duct system 
consisting of a complete access space (hole) through the wall or floor 
cavity with a cap or cover on the interior and exterior of the cavity 
which are secured in such a manner that they can be removed by the use 
of common household tools. The cap or cover in place shall limit air 
filtration and be designed to resist the entry of water or rodents into 
the home. The manufacturer is not required to provide the moisture-lint 
exhaust duct or the termination fitting;
    (2) Install a receptacle for future connection of the dryer;
    (3) Provide written instructions on how to complete the exhaust duct 
installation in accordance with the provisions of paragraphs (a)(1) 
through (5) of this section.

[42 FR 54383, Oct. 5, 1977. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55018, Oct. 25, 1993]



Sec. 3280.709  Installation of appliances.

    (a) The installation of each appliance shall conform to the terms of 
its listing and the manufacturer's instructions. The installer shall 
leave the manufacturer's instructions attached to the appliance. Every 
appliance shall be secured in place to avoid displacement. For the 
purpose of servicing and replacement, each appliance shall be both 
accessible and removable.
    (b) Heat-producing appliances shall be so located that no doors, 
drapes, or other such material can be placed or swing closer to the 
front of the appliance than the clearances specified on the labeled 
appliances.
    (c) Clearances surrounding heat producing appliances shall not be 
less than the clearances specified in the terms of their listings.
    (1) Prevention of storage. The area surrounding heat producing 
appliances installed in areas with interior or exterior access shall be 
framed-in or guarded with noncombustible material such that the distance 
from the appliance to the framing or guarding material is not greater 
than three inches unless the appliance is installed in compliance with 
paragraph (c)(2), of this section. When clearance required by the 
listing is greater than three inches, the guard or frame shall not be 
closer to the appliance than the distance provided in the listing.
    (2) Clearance spaces surrounding heat producing appliances are not 
required to be framed-in or guarded when:
    (i) A space is designed specifically for a clothes washer or dryer;
    (ii) Dimensions surrounding the appliance do not exceed three 
inches; or
    (iii) The manufacturer affixes either to a side of an alcove or 
compartment containing the appliance, or to the appliance itself, in a 
clearly visible location, a 3x5 adhesive backed 
plastic laminated label or the equivalent which reads as follows:

                               ``Warning''

    This compartment is not to be used as a storage area. Storage of 
combustible materials or containers on or near any appliance in this 
compartment may create a fire hazard. Do not store such materials or 
containers in this compartment.

    (d) All fuel-burning appliances, except ranges, ovens, illuminating 
appliances, clothes dryers, solid fuel-burning fireplaces and solid 
fuel-burning fireplace stoves, shall be installed to provide for the 
complete separation of the combustion system from the interior 
atmosphere of the manufactured home. Combustion air inlets and flue gas 
outlets shall be listed or certified as components of the appliance. The 
required separation may be obtained by:
    (1) The installation of direct vent system (sealed combustion 
system) appliances, or
    (2) The installation of appliances within enclosures so as to 
separate the appliance combustion system and venting system from the 
interior atmosphere of the manufactured home. There

[[Page 178]]

shall not be any door, removable access panel, or other opening into the 
enclosure from the inside of the manufactured home. Any opening for 
ducts, piping, wiring, etc., shall be sealed.
    (e) A forced air appliance and its return-air system shall be 
designed and installed so that negative pressure created by the air-
circulating fan cannot affect its or another appliance's combustion air 
supply or act to mix products of combustion with circulating air.
    (1) The air circulating fan of a furnace installed in an enclosure 
with another fuel-burning appliance shall be operable only when any door 
or panel covering an opening in the furnace fan compartment or in a 
return air plenum or duct is in the closed position. This does not apply 
if both appliances are direct vent system (sealed combustion system) 
appliances.
    (2) If a warm air appliance is installed within an enclosure to 
conform to Sec. 3280.709(d)(2), each warm-air outlet and each return air 
inlet shall extend to the exterior of the enclosure. Ducts, if used for 
that purpose, shall not have any opening within the enclosure and shall 
terminate at a location exterior to the enclosure.
    (3) Cooling coils installed as a portion of, or in connection with, 
any forced-air furnace shall be installed on the downstream side unless 
the furnace is specifically otherwise listed.
    (4) An air conditioner evaporator section shall not be located in 
the air discharge duct or plenum of any forced-air furnace unless the 
manufactured home manufacturer has complied with certification required 
in Sec. 3280.511.
    (5) If a cooling coil is installed with a forced-air furnace, the 
coil shall be installed in accordance with its listing. When a furnace-
coil unit has a limited listing, the installation must be in accordance 
with that listing.
    (6) When an external heating appliance or combination cooling/
heating appliance is to be field installed, the home manufacturer shall 
make provision for proper location of the connections to the supply and 
return air systems. The manufacturer is not required to provide said 
appliance(s). The preparation by the manufacturer for connection to the 
home's supply and return air system shall include all fittings and 
connection ducts to the main duct and return air system such that the 
installer is only required to provide:
    (i) The appliance;
    (ii) Any appliance connections to the home; and
    (iii) The connecting duct between the external appliance and the 
fitting installed on the home by the manufacturer. The above connection 
preparations by the manufacturer do not apply to supply or return air 
systems designed only to accept external cooling (i.e., self contained 
air conditioning systems, etc.)
    (7) The installation of a self contained air conditioner comfort 
cooling appliance shall meet the following requirements:
    (i) The installation on a duct common with an installed heating 
appliance shall require the installation of an automatic damper or other 
means to prevent the cooled air from passing through the heating 
appliance unless the heating appliance is certified or listed for such 
application and the supply system is intended for such an application.
    (ii) The installation shall prevent the flow of heated air into the 
external cooling appliance and its connecting ducts to the manufactured 
home supply and return air system during the operation of the heating 
appliance installed in the manufactured home.
    (iii) The installation shall prevent simultaneous operation of the 
heating and cooling appliances.
    (f) Vertical clearance above cooking top. Ranges shall have a 
vertical clearance above the cooking top of not less than 24 inches. 
(See Sec. 3280.204).
    (g) Solid fuel-burning factory-built fireplaces and fireplace stoves 
listed for use in manufactured homes may be installed in manufactured 
homes provided they and their installation conform to the following 
paragraphs. A fireplace or fireplace stove shall not be considered as a 
heating facility for determining compliance with subpart F.
    (1) A solid fuel-burning fireplace or fireplace stove shall be 
equipped with integral door(s) or shutter(s) designed to close the 
fireplace or fireplace stove fire chamber opening and shall include 
complete means for venting through

[[Page 179]]

the roof, a combustion air inlet, a hearth extension, and means to 
securely attach the fireplace or the fireplace stove to the manufactured 
home structure. The installation shall conform to the following 
paragraphs (g)(1) (i) to (vii) inclusive:
    (i) A listed factory-built chimney designed to be attached directly 
to the fireplace or fireplace stove shall be used. The listed factory 
built chimney shall be equipped with and contain as part of its listing 
a termination device(s) and a spark arrester(s).
    (ii) A fireplace or fireplace stove, air intake assembly, hearth 
extension and the chimney shall be installed in accordance with the 
terms of their listings and their manufacturer's instructions.
    (iii) The combustion air inlet shall conduct the air directly into 
the fire chamber and shall be designed to prevent material from the 
hearth dropping onto the area beneath the manufactured home.
    (iv) The fireplace or fireplace stove shall not be installed in a 
sleeping room.
    (v) Hearth extension shall be of noncombustible material not less 
than \3/8\-inch thick. The hearth shall extend at least 16 inches in 
front or and at least 8 inches beyond each side of the fireplace or 
fireplace stove opening. Furthermore the hearth shall extend over the 
entire surface beneath a fireplace stove and beneath an elevated or 
overhanging fireplace.
    (vi) The label on each solid fuel-burning fireplace and solid fuel-
burning fireplace stove shall include the following wording: For use 
with solid fuel only.
    (vii) The chimney shall extend at least three feet above the part of 
the roof through which it passes and at least two feet above the highest 
elevation of any part of the manufactured home within 10 feet of the 
chimney. Portions of the chimney and termination that exceed an 
elevation of 13\1/2\ ft. above ground level may be designed to be 
removed for transporting the manufactured home.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 44 FR 66195, Nov. 19, 1979; 58 FR 55018, Oct. 25, 1993]



Sec. 3280.710  Venting, ventilation and combustion air.

    (a) The venting as required by Sec. 3280.707(b) shall be 
accomplished by one or more of the methods given in (a)(1) and (2) of 
this section:
    (1) An integral vent system listed or certified as part of the 
appliance.
    (2) A venting system consisting entirely of listed components, 
including roof jack, installed in accordance with the terms of the 
appliance listing and the appliance manufacturer's instructions.
    (b) Venting and combustion air systems shall be installed in 
accordance with the following:
    (1) Components shall be securely assembled and properly aligned at 
the factory in accordance with the appliance manufacturer's instructions 
except vertical or horizontal sections of a fuel fired heating appliance 
venting system that extend beyond the roof line or outside the wall line 
may be installed at the site. Sectional venting systems shall be listed 
for such applications and installed in accordance with the terms of 
their listings and manufacturers' instructions. In cases where sections 
of the venting system are removed for transportation, a label shall be 
permanently attached to the appliance indicating the following:

    Sections of the venting system have not been installed. Warning-do 
not operate the appliance until all sections have been assembled and 
installed in accordance with the manufacturer's instructions.

    (2) Draft hood connectors shall be firmly attached to draft hood 
outlets or flue collars by sheet metal screws or by equivalent effective 
mechanical fasteners.
    (3) Every joint of a vent, vent connector, exhaust duct and 
combustion air intake shall be secure and in alignment.
    (c) Venting systems shall not terminate underneath a manufactured 
home.
    (d) Venting system terminations shall be not less than three feet 
from any motor-driven air intake discharging into habitable areas.
    (e) The area in which cooking appliances are located shall be 
ventilated by a metal duct which may be single wall, not less than 12.5 
square inches in

[[Page 180]]

cross-sectional area (minimum dimension shall be two inches) located 
above the appliance(s) and terminating outside the manufactured home, or 
by listed mechanical ventilating equipment discharging outside the home, 
that is installed in accordance with the terms of listing and the 
manufacturer's instructions. Gravity or mechanical ventilation shall be 
installed within a horizontal distance of not more than ten feet from 
the vertical front of the appliance(s).
    (f) Mechanical ventilation which exhausts directly to the outside 
atmosphere from the living space of a home shall be equipped with an 
automatic or manual damper. Operating controls shall be provided such 
that mechanical ventilation can be separately operated without directly 
energizing other energy consuming devices.

[49 FR 32012, Aug. 9, 1984, as amended at 58 FR 55018, Oct. 25, 1993]



Sec. 3280.711  Instructions.

    Operating instructions shall be provided with each appliance. These 
instructions shall include directions and information covering the 
proper use and efficient operation of the appliance and its proper 
maintenance.



Sec. 3280.712  Marking.

    (a) Information on clearances, input rating, lighting and shutdown 
shall be attached to the appliances with the same permanence as the 
nameplate, and so located that it is easily readable when the appliance 
is properly installed or shutdown for transporting of manufactured home.
    (b) Each fuel-burning appliance shall bear permanent marking 
designating the type(s) of fuel for which it is listed.



Sec. 3280.713  Accessibility.

    Every appliance shall be accessible for inspection, service, repair, 
and replacement without removing permanent construction. For those 
purposes, inlet piping supplying the appliance shall not be considered 
permanent construction. Sufficient room shall be available to enable the 
operator to observe the burner, control, and ignition means while 
starting the appliance.

[58 FR 55018, Oct. 25, 1993]



Sec. 3280.714  Appliances, cooling.

    (a) Every air conditioning unit or a combination air conditioning 
and heating unit shall be listed or certified by a nationally recognized 
testing agency for the application for which the unit is intended and 
installed in accordance with the terms of its listing.
    (1) Mechanical air conditioners shall be rated in accordance with 
the ARI Standard 210/240-89 Unitary Air Conditioning and Air Source 
Unitary Heat Pump Equipment and certified by ARI or other nationally 
recognized testing agency capable of providing follow-up service.
    (i) Electric motor-driven unitary cooling systems with rated 
capacity less than 65,000 BTU/Hr when rated at ARI Standard rating 
conditions in ARI Standard 210/240-89 Unitary Air-Conditioning and Air-
Source Heat Pump Equipment, shall show energy efficiency (EER) values 
not less than 7.2.
    (ii) Heat pumps shall be certified to comply with all the 
requirements of the ARI Standard 210/240-89 Unitary Air Conditioning and 
Air Source Unitary Heat Pump Equipment. Electric motor-driven vapor 
compression heat pumps with supplemental electrical resistance heat 
shall be sized to provide by compression at least 60 percent of the 
calculated annual heating requirements for the manufactured home being 
served. A control shall be provided and set to prevent operation of 
supplemental electrical resistance heat at outdoor temperatures above 40 
F, except for defrost operation.
    (iii) Electric motor-driven vapor compression heat pumps with 
supplemental electric resistance heat conforming to ARI Standard 210/
240-89 Unitary Air-Conditioning and Air-Source Heat Pump Equipment shall 
show coefficient of performance ratios not less than shown below:

                                   COP
------------------------------------------------------------------------
                                                             Coefficient
              Temperature degrees  fahrenheit                    of
                                                             performance
------------------------------------------------------------------------
47........................................................           2.5
17........................................................           1.7
0.........................................................           1.0
------------------------------------------------------------------------

    (2) Gas-fired absorption air conditioners shall be listed or 
certified in accordance with ANSI Standard

[[Page 181]]

Z21.40.1-1981 ``Gas-fired Absorption Summer Air Conditioning 
Appliances'' with addenda la-1982, and certified by a nationally 
recognized testing agency capable of providing follow-up service.
    (3) Direct refrigerating systems serving any air conditioning or 
comfort-cooling system installed in a manufactured home shall employ a 
type of refrigerant that ranks no lower than Group 5 in the 
Underwriters' Laboratories, Inc. ``Classification of Comparative Life 
Hazard of Various Chemicals.''
    (4) When a cooling or heat pump coil and air conditioner blower are 
installed with a furnace or heating appliance, they shall be tested and 
listed in combination for heating and safety performance by a nationally 
recognized testing agency.
    (5) Cooling or heat pump indoor coils and outdoor sections shall be 
certified, listed and rated in combination for capacity and efficiency 
by a nationally recognized testing agency(ies). Rating procedures shall 
be based on U.S. Department of Energy test procedures.
    (b) Installation and instructions. (1) The installation of each 
appliance shall conform to the terms of its listing as specified on the 
appliance and in the manufacturer's instructions. The installer shall 
include the manufacturer's installation instructions in the manufactured 
home. Appliances shall be secured in place to avoid displacement and 
movement from vibration and road shock.
    (2) Operating instructions shall be provided with the appliance.
    (c) Fuel-burning air conditioners shall also comply with 
Sec. 280.707.
    (d) The appliance rating plate shall be so located that it is easily 
readable when the appliance is properly installed.
    (e) Every installed appliance shall be accessible for inspection, 
service, repair and replacement without removing permanent construction.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55018, Oct. 25, 1993]



Sec. 3280.715  Circulating air systems.

    (a) Supply system. (1) Supply ducts and any dampers contained 
therein shall be made from galvanized steel, tin-plated steel, or 
aluminum, or shall be listed Class 0, Class 1, or Class 2 air ducts. 
Class 2 air ducts shall be located at least 3 feet from the furnace 
bonnet or plenum. A duct system integral with the structure shall be of 
durable construction that can be demonstrated to be equally resistant to 
fire and deterioration. Ducts constructed from sheet metal shall be in 
accordance with the following table:

                  Minimum Metal Thickness for Ducts \1\
------------------------------------------------------------------------
                                                     Diameter    Width
                     Duct type                      14 in. or   over 14
                                                       less       in.
------------------------------------------------------------------------
Round.............................................      0.013      0.016
Enclosed rectangular..............................       .013       .016
Exposed rectangular...............................       .016       .019
------------------------------------------------------------------------
\1\ When ``nominal'' thicknesses are specified, 0.003 in. shall be added
  to these ``minimum'' metal thicknesses.

    (2) Sizing of ducts for heating. (i) Ducts shall be so designed that 
when a labeled forced-air furnace is installed and operated continuously 
at its normal heating air circulating rate in the manufactured home, 
with all registers in the full open position, the static pressure 
measured in the casing shall not exceed 90% of that shown on the label 
of the appliance. For upflow furnaces the static pressure shall be taken 
in the duct plenum. For external heating or combination heating/cooling 
appliances the static pressure shall be taken at the point used by the 
agency listing or certifying the appliance.
    (ii) When an evaporator-coil specifically designed for the 
particular furnace is installed between the furnace and the duct plenum, 
the total static pressure shall be measured downstream of the coil in 
accordance with the appliance label and shall not exceed 90 percent of 
that shown on the label of the appliance.
    (iii) When any other listed air-cooler coil is installed between the 
furnace and the duct plenum, the total static pressure shall be measured 
between the furnace and the coil and it shall not exceed 90 percent of 
that shown on the label of the furnace.
    (iv) The minimum dimension of any branch duct shall be at least 1\1/
2\ inches, and of any main duct, 2\1/2\ inches.
    (3) Sizing of ducts. (i) The manufactured home manufacturer shall 
certify the capacity of the air cooling supply

[[Page 182]]

duct system for the maximum allowable output of ARI certified central 
air conditioning systems. The certification shall be at operating static 
pressure of 0.3 inches of water or greater. (See Sec. 3280.511).
    (ii) The refrigerated air cooling supply duct system including 
registers must be capable of handling at least 300 cfm per 10,000 btuh 
with a static pressure no greater than 0.3 inches of water when measured 
at room temperature. In the case of application of external self 
contained comfort cooling appliances or the cooling mode of combination 
heating/cooling appliances, either the external ducts between the 
appliance and the manufactured home supply system shall be considered 
part of, and shall comply with the requirements for the refrigerated air 
cooling supply duct system, or the connecting duct between the external 
appliance and the mobile supply duct system shall be a part of the 
listed appliance. The minimum dimension of any branch duct shall be at 
least 1\1/2\ inches, and of any main duct, 2\1/2\ inches.
    (4) Airtightness of supply duct systems. A supply duct system shall 
be considered substantially airtight when the static pressure in the 
duct system, with all registers sealed and with the furnace air 
circulator at high speed, is at least 80 percent of the static pressure 
measured in the furnace casing, with its outlets sealed and the furnace 
air circulator operating at high speed. For the purpose of this 
paragraph and Sec. 3280.715(b) pressures shall be measured with a water 
manometer or equivalent device calibrated to read in increments not 
greater than \1/10\ inch water column.
    (5) Expandable or multiple manufactured home connections. (i) An 
expandable or multiple manufactured home may have ducts of the heating 
system installed in the various units. The points of connection must be 
so designed and constructed that when the manufactured home is fully 
expanded or coupled, the resulting duct joint will conform to the 
requirements of this part.
    (ii) Installation instructions for supporting the crossover duct 
from the manufactured home shall be provided for onsite installation. 
The duct shall not be in contact with the ground.
    (6) Air supply ducts shall be insulated with material having an 
effective thermal resistance (R) of not less than 4.0 unless they are 
within manufactured home insulation having a minimum effective value of 
R-4.0 for floors or R-6.0 for ceilings.
    (7) Supply and return ducts exposed directly to outside air, such as 
under chassis crossover ducts or ducts connecting external heating, 
cooling or combination heating/cooling appliances shall be insulated 
with material having a minimum thermal resistance of R=4.0, with a 
continuous vapor barrier having a perm rating of not more than 1 perm. 
Where exposed underneath the manufactured home, all such ducts shall 
comply with Sec. 3280.715(a)(5)(ii).
    (b) Return air systems--(1) Return air openings. Provisions shall be 
made to permit the return of circulating air from all rooms and living 
spaces, except toilet room(s), to the circulating air supply inlet of 
the furnace.
    (2) Duct material. Return ducts and any diverting dampers contained 
therein shall be in accordance with the following:
    (i) Portions of return ducts directly above the heating surfaces, or 
closer than 2 feet from the outer jacket or casing of the furnace shall 
be constructed of metal in accordance with Sec. 3280.715(a)(1) or shall 
be listed Class 0 or Class 1 air ducts.
    (ii) Return ducts, except as required by paragraph (a) of this 
section, shall be constructed of one-inch (nominal) wood boards (flame 
spread classification of not more than 200), other suitable material no 
more flammable than one-inch board or in accordance with 
Sec. 3280.715(a)(1).
    (iii) The interior of combustible ducts shall be lined with 
noncombustible material at points where there might be danger from 
incandescent particles dropped through the register or furnace such as 
directly under floor registers and the bottom return.
    (iv) Factory made air ducts used for connecting external heating, 
cooling or combination heating/cooling appliances to the supply system 
and return air system of a manufactured home shall be listed by a 
nationally recognized testing agency. Ducts applied to

[[Page 183]]

external heating appliances or combination heating/cooling appliances 
supply system outlets shall be constructed of metal in accordance with 
Sec. 3280.715(a)(1) or shall be listed Class 0 or Class 1 air ducts for 
those portions of the duct closer than 2 feet from the outer casing of 
the appliance.
    (v) Ducts applied to external appliances shall be resistant to 
deteriorating environmental effects, including but not limited to 
ultraviolet rays, cold weather, or moisture and shall be resistant to 
insects and rodents.
    (3) Sizing. The cross-sectional areas of the return air duct shall 
not be less than 2 square inches for each 1,000 Btu per hour input 
rating of the appliance. Dampers shall not be placed in a combination 
fresh air intake and return air duct so arranged that the required 
cross-sectional area will not be reduced at all possible positions of 
the damper.
    (4) Permanent uncloseable openings. Living areas not served by 
return air ducts or closed off from the return opening of the furnace by 
doors, sliding partitions, or other means shall be provided with 
permanent uncloseable openings in the doors or separating partitions to 
allow circulated air to return to the furnace. Such openings may be 
grilled or louvered. The net free area of each opening shall be not less 
than 1 square inch for every 5 square feet of total living area closed 
off from the furnace by the door or partition serviced by that opening. 
Undercutting doors connecting the closed-off space may be used as a 
means of providing return air area. However, in the event that doors are 
undercut, they shall be undercut a minimum of 2 inches and not more than 
2\1/2\ inches, as measured from the top surface of the floor decking to 
the bottom of the door and no more than one half of the free air area so 
provided shall be counted as return air area.
    (c) Joints and seams. Joints and seams of ducts shall be securely 
fastened and made substantially airtight. Slip joints shall have a lap 
of at least 1 inch and shall be individually fastened. Tape or caulking 
compound may be used for sealing mechanically secure joints. Where used, 
tape or caulking compound shall not be subject to deterioration under 
long exposures to temperatures up to 200 deg. F. and to conditions of 
high humidity, excessive moisture, or mildew.
    (d) Supports. Ducts shall be securely supported.
    (e) Registers or grilles. Fittings connecting the registers or 
grilles to the duct system shall be constructed of metal or material 
which complies with the requirements of Class 1 or 2 ducts under UL 181-
-Sixth Edition--1984, Factory Made Air Ducts and Connectors. Air supply 
terminal devices (registers) when installed in kitchens, bedrooms, and 
bathrooms shall be equipped with adjustable closeable dampers. Registers 
or grilles shall be constructed of metal or conform with the following:
    (1) Be made of a material classified 94V-0 or 94V-1 when tested as 
described in Underwriters' Laboratories, Inc., Tests for Flammability of 
Plastic Materials for Parts in Devices and Appliances, UL 94-Fourth 
Edition-1991.
    (2) Floor registers or grilles shall resist without structural 
failure a 200 lb. concentrated load on a 2-inch diameter disc applied to 
the most critical area of the exposed face of the register or grille. 
For this test the register or grille is to be at a temperature of not 
less than 165 deg. F and is to be supported in accordance with the 
manufacturer's instructions.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 52 FR 4589, Feb. 12, 1987; 58 FR 55019, Oct. 25, 1993]



                      Subpart I--Electrical Systems



Sec. 3280.801  Scope.

    (a) Subpart I of this standard and part A of Article 550 of the 
National Electrical Code (NFPA No. 70-1993) cover the electrical 
conductors and equipment installed within or on manufactured homes and 
the conductors that connect manufactured homes to a supply of 
electricity.
    (b) In addition to the requirements of this standard and Article 550 
of the National Electrical Code (NFPA No. 70-1993) the applicable 
portions of other Articles of the National Electrical Code shall be 
followed covering electrical installations in manufactured homes. 
Wherever the requirements of this standard differ from the National

[[Page 184]]

Electrical Code, this standard shall apply.
    (c) The provisions of this standard apply to manufactured homes 
intended for connection to a wiring system nominally rated 120/240 
volts, 3-wire AC, with grounded neutral.
    (d) All electrical materials, devices, appliances, fittings and 
other equipment shall be listed or labeled by a nationally recognized 
testing agency and shall be connected in an approved manner when in 
service.
    (e) Aluminum conductors, aluminum alloy conductors, and aluminum 
core conductors such as copper clad aluminum; are not acceptable for use 
in branch circuit wiring in manufactured homes.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55019, Oct. 25, 1993]



Sec. 3280.802  Definitions.

    (a) The following definitions are applicable to subpart I only.
    (1) Accessible (i) (As applied to equipment) means admitting close 
approach because not guarded by locked doors, elevation, or other 
effective means. (See readily accessible.)
    (ii) (As applied to wiring methods) means capable of being removed 
or exposed without damaging the manufactured home structure or finish, 
or not permanently closed-in by the structure or finish of the 
manufactured home (see concealed and exposed).
    (2) Air conditioning or comfort cooling equipment means all of that 
equipment intended or installed for the purpose of processing the 
treatment of air so as to control simultaneously its temperature, 
humidity, cleanliness, and distribution to meet the requirements of the 
conditioned space.
    (3)(i) Appliance means utilization equipment, generally other than 
industrial, normally built in standardized sizes or types, which is 
installed or connected as a unit to perform one or more functions, such 
as clothes washing, air conditioning, food mixing, deep frying, etc.
    (ii) Appliance, fixed means an appliance which is fastened or 
otherwise secured at a specific location.
    (iii) Appliance, portable means an appliance which is actually moved 
or can easily be moved from one place to another in normal use. For the 
purpose of this Standard, the following major appliances are considered 
portable if cord-connected: refrigerators, clothes washers, dishwashers 
without booster heaters, or other similar appliances.
    (iv) Appliance, stationary means an appliance which is not easily 
moved from one place to another in normal use.
    (4) Attachment plug (plug cap) (cap) means a device which, by 
insertion in a receptacle, establishes connection between the conductors 
of the attached flexible cord and the conductors connected permanently 
to the receptacle.
    (5) Bonding means the permanent joining of metallic parts to form an 
electrically conductive path which will assure electrical continuity and 
the capacity to conduct safely any current likely to be imposed.
    (6) Branch circuit (i) means the circuit conductors between the 
final overcurrent device protecting the circuit and the outlet(s). A 
device not approved for branch circuit protection, such as a thermal 
cutout or motor overload protective device, is not considered as the 
overcurrent device protecting the circuit.
    (ii) Branch circuit--appliance means a branch circuit supplying 
energy to one or more outlets to which appliances are to be connected, 
such circuits to have no permanently connected lighting fixtures not a 
part of an appliance.
    (iii) Branch circuit--general purpose means a circuit that supplies 
a number of outlets for lighting and appliances.
    (iv) Branch circuit--individual means a branch circuit that supplies 
only one utilization equipment.
    (7) Cabinet means an enclosure designed either for surface or flush 
mounting, and provided with a frame, mat, or trim in which swinging 
doors are hung.
    (8) Circuit breaker means a device designed to open and close a 
circuit by nonautomatic means, and to open the circuit automatically on 
a predetermined overload of current without injury to itself when 
properly applied within its rating.
    (9) Concealed means rendered inaccessible by the structure or finish 
of the

[[Page 185]]

manufactured home. Wires in concealed raceways are considered concealed, 
even though they may become accessible by withdrawing them. (See 
accessible (As applied to wiring methods))
    (10) Connector, pressure (solderless) means a device that 
establishes a connection between two or more conductors or between one 
or more conductors and a terminal by means of mechanical pressure and 
without the use of solder.
    (11) Dead front (as applied to switches, circuit-breakers, 
switchboards, and distribution panelboard) means so designed, 
constructed, and installed that no current-carrying parts are normally 
exposed on the front.
    (12) Demand factor means the ratio of the maximum demand of a 
system, or part of a system, to the total connected load of a system or 
the part of the system under consideration.
    (13) Device means a unit of an electrical system that is intended to 
carry but not utilize electrical energy.
    (14) Disconnecting means means a device, or group of devices, or 
other means by which the conductors of a circuit can be disconnected 
from their source of supply.
    (15) Distribution panelboard means a single panel or a group of 
panel units designed for assembly in the form of a single panel, 
including buses, and with or without switches or automatic overcurrent 
protective devices or both, for the control of light, heat, or power 
circuits of small individual as well as aggregate capacity; designed to 
be placed in a cabinet placed in or against a wall or partition and 
accessible only from the front.
    (16) Enclosed means surrounded by a case that will prevent a person 
from accidentally contacting live parts.
    (17) Equipment means a general term, including material, fittings, 
devices, appliances, fixtures, apparatus, and the like used as a part 
of, or in connection with, an electrical installation.
    (18) Exposed (i) (As applied to live parts) means capable of being 
inadvertently touched or approached nearer than a safe distance by a 
person. It is applied to parts not suitably guarded, isolated, or 
insulated. (See accessible and concealed.)
    (ii) (As applied to wiring method) means on or attached to the 
surface or behind panels designed to allow access. (See Accessible (as 
applied to wiring methods))
    (19) Externally operable means capable of being operated without 
exposing the operator to contact with live parts.
    (20) Feeder assembly means the overhead or under-chassis feeder 
conductors, including the grounding conductor, together with the 
necessary fittings and equipment, or a power supply cord approved for 
manufactured home use, designed for the purpose of delivering energy 
from the source of electrical supply to the distribution panelboard 
within the manufactured home.
    (21) Fitting means an accessory, such as a locknut, bushing, or 
other part of a wiring system, that is intended primarily to perform a 
mechanical rather than an electrical function.
    (22) Ground means a conducting connection, whether intentional or 
accidental, between an electrical circuit or equipment and earth, or to 
some conducting body that serves in place of the earth.
    (23) Grounded means connected to earth or to some conducting body 
that serves in place of the earth.
    (24) Grounded conductor means a system or circuit conductor that is 
intentionally grounded.
    (25) Grounding conductor means a conductor used to connect equipment 
or the grounded circuit of a wiring system to a grounding electrode or 
electrodes.
    (26) Guarded means covered, shielded, fenced, enclosed, or otherwise 
protected by means of suitable covers, casings, barriers, rails, 
screens, mats or platforms to remove the likelihood of approach or 
contact by persons or objects to a point of danger.
    (27) Isolated means not readily accessible to persons unless special 
means for access are used.
    (28) Laundry area means an area containing or designed to contain 
either a laundry tray, clothes washer and/or clothes dryer.
    (29) Lighting outlet means an outlet intended for the direct 
connection of a lampholder, a lighting fixture, or a pendant cord 
terminating in a lampholder.
    (30) Manufactured home accessory building or structure means any 
awning,

[[Page 186]]

cabana, ramada, storage cabinet, carport, fence, windbreak or porch 
established for the use of the occupant of the manufactured home upon a 
manufactured home lot.
    (31) Manufactured home service equipment means the equipment 
containing the disconnecting means, overcurrent protective devices, and 
receptacles or other means for connecting a manufactured home feeder 
assembly.
    (32) Outlet means a point on the wiring system at which current is 
taken to supply utilization equipment.
    (33) Panelboard means a single panel or group of panel units 
designed for assembly in the form of a single panel; including buses, 
automatic overcurrent protective devices, and with or without switches 
for the control of light, heat, or power circuits; designed to be placed 
in a cabinet or cutout box placed in or against a wall or partition and 
accessible only from the front.
    (34) Raceway means any channel for holding wires, cables, or busbars 
that is designed expressly for, and used solely for, this purpose. 
Raceways may be of metal or insulating material, and the term includes 
rigid metal conduit, rigid nonmetallic conduit, flexible metal conduit, 
electrical metallic tubing, underfloor raceways, cellular concrete floor 
raceways, cellular metal floor raceways, surface raceways, structural 
raceways, wireways, and busways.
    (35) Raintight means so constructed or protected that exposure to a 
beating rain will not result in the entrance of water.
    (36) Readily accessible means capable of being reached quickly for 
operation, renewal, or inspection, without requiring those to whom ready 
access is requisite to climb over or remove obstacles or to resort to 
portable ladders, chairs, etc. (See Accessible.)
    (37) Receptacle means a contact device installed at an outlet for 
the connection of a single attachment plug. A single receptacle is a 
single contact device with no other contact device on the same yoke. A 
multiple receptacle is a single device containing two or more 
receptacles.
    (38) Receptacle outlet means an outlet where one or more receptacles 
are installed.
    (39) Utilization equipment means equipment which utilizes electric 
energy for mechanical, chemical, heating, lighting, or similar purposes.
    (40) Voltage (of a circuit) means the greatest root-mean-square 
(effective) difference of potential between any two conductors of the 
circuit concerned. Some systems, such as 3-phase 4-wire, single-phase 3-
wire, and 3-wire direct-current may have various circuits of various 
voltages.
    (41) Weatherproof means so constructed or protected that exposure to 
the weather will not interfere with successful operation. Rainproof, 
raintight, or watertight equipment can fulfill the requirements for 
weatherproof where varying weather conditions other than wetness, such 
as snow, ice, dust, or temperature extremes, are not a factor.



Sec. 3280.803  Power supply.

    (a) The power supply to the manufactured home shall be a feeder 
assembly consisting of not more than one listed 50 ampere manufactured 
home power-supply cords, or a permanently installed circuit. A 
manufactured home that is factory-equipped with gas or oil-fired central 
heating equipment and cooking appliances shall be permitted to be 
provided with a listed manufactured home power-supply cord rated 40 
amperes.
    (b) If the manufactured home has a power-supply cord, it shall be 
permanently attached to the distribution panelboard or to a junction box 
permanently connected to the distribution panelboard, with the free end 
terminating in an attachment plug cap.
    (c) Cords with adapters and pigtail ends, extension cords, and 
similar items shall not be attached to, or shipped with, a manufactured 
home.
    (d) A listed clamp or the equivalent shall be provided at the 
distribution panelboard knockout to afford strain relief for the cord to 
prevent strain from being transmitted to the terminals when the power-
supply cord is handled in its intended manner.
    (e) The cord shall be of an approved type with four conductors, one 
of which shall be identified by a continuous green color or a continuous 
green color with one or more yellow stripes for use as the grounding 
conductor.

[[Page 187]]

    (f) The attachment plug cap shall be a 3-pole, 4-wire grounding 
type, rated 50 amperes, 125/250 volts with a configuration as shown 
herein and intended for use with the 50-ampere, 125/250 receptacle 
configuration shown. It shall be molded of butyl rubber, neoprene, or 
other approved materials which have been found suitable for the purpose, 
and shall be molded to the flexible cord so that it adheres tightly to 
the cord at the point where the cord enters the attachment-plug cap. If 
a right-angle cap is used, the configuration shall be so oriented that 
the grounding member is farthest from the cord.
    (g) The overall length of a power-supply cord, measured from the end 
of the cord, including bared leads, to the face of the attachment-plug 
cap shall not be less than 21 feet and shall not exceed 36\1/2\ feet. 
The length of cord from the face of the attachment-plug cap to the point 
where the cord enters the manufactured home shall not be less than 20 
feet.
[GRAPHIC] [TIFF OMITTED] TC17OC91.007

    50-ampere 125/250 volt receptacle and attachment-plug-cap 
configurations, 3 pole, 4-wire grounding types used for manufactured 
home supply cords and manufactured home parks. Complete details of the 
50-ampere cap and receptacle can be found in the American National 
Standard Dimensions of Caps, Plugs and Receptacles, Grounding Type (ANSI 
C73.17--1972).

    (h) The power supply cord shall bear the following marking: ``For 
use with manufactured homes--40 amperes'' or ``For use with manufactured 
homes--50 amperes.''
    (i) Where the cord passes through walls or floors, it shall be 
protected by means of conduit and bushings or equivalent. The cord may 
be installed within the manufactured home walls, provided a continuous 
raceway is installed from the branch-circuit panelboard to the underside 
of the manufactured home floor. The raceway may be rigid conduit, 
electrical metallic tubing or polyethylene (PE), poly-vinylchloride 
(PVC) or acrylonitrile-butadiene-styrene (ABS) plastic tubing having a 
minimum wall thickness of nominal \1/8\ inch.
    (j) Permanent provisions shall be made for the protection of the 
attachment-plug cap of the power supply cord and any connector cord 
assembly or receptacle against corrosion and mechanical damage if such 
devices are in an exterior location while the manufactured home is in 
transit.
    (k) Where the calculated load exceeds 50 amperes or where a 
permanent feeder is used, the supply shall be by means of:
    (1) One mast weatherhead installation installed in accordance with 
Article 230 of the National Electrical Code NFPA No. 70-1993 containing 
four continuous insulated, color-coded, feeder conductors, one of which 
shall be an equipment grounding conductor; or
    (2) An approved raceway from the disconnecting means in the 
manufactured home to the underside of the manufactured home with 
provisions for the attachment of a suitable junction box or fitting to 
the raceway on the underside of the manufactured home. The manufacturer 
shall provide in his written installation instructions, the proper 
feeder conductor sizes for the raceway and the size of the junction box 
to be used; or
    (3) Service equipment installed on the manufactured home in 
accordance with Article 230 of the National Electrical Code NFPA No. 70-
1993; and
    (i) The installation shall be completed by the manufacturer except 
for the service connections, the meter and the grounding electrode 
conductor;
    (ii) Exterior equipment, or the enclosure in which it is installed 
shall be weatherproof and installed in accordance with Article 373-2 of 
the National Electrical Code NFPA No. 70-1993. Conductors shall be 
suitable for use in wet locations;
    (iii) The neutral conductor shall be connected to the system 
grounding conductor on the supply side of the main disconnect in 
accordance with Articles 250-23, 25, and 53 of NFPA No. 70-1993.
    (iv) The manufacturer shall include in its written installation 
instructions one method of grounding the service equipment at the 
installation site;

[[Page 188]]

    (v) The minimum size grounding electrode conductor shall be 
specified in the instructions; and
    (vi) A red ``Warning'' label shall be mounted on or adjacent to the 
service equipment. The label shall state:

    ``Warning--do not provide electrical power until the grounding 
electrode is installed and connected (see installation instructions).''

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 52 FR 4589, Feb. 12, 1987; 58 FR 55019, Oct. 25, 1993]



Sec. 3280.804  Disconnecting means and branch-circuit protective equipment.

    (a) The branch-circuit equipment shall be permitted to be combined 
with the disconnecting means as a single assembly. Such a combination 
shall be permitted to be designated as a distribution panelboard. If a 
fused distribution panelboard is used, the maximum fuse size of the 
mains shall be plainly marked with lettering at least \1/4\-inch high 
and visible when fuses are changed. See section 110-22 of the National 
Electrical Code (NFPA No. 70-1993) concerning identification of each 
disconnecting means and each service, feeder, or branch circuit at the 
point where it originated and the type marking needed.
    (b) Plug fuses and fuseholders shall be tamper-resistant, Type 
``S,'' enclosed in dead-front fuse panelboards. Electrical distribution 
panels containing circuit breakers shall also be dead-front type.
    (c) Disconnecting means. A single disconnecting means shall be 
provided in each manufactured home consisting of a circuit breaker, or a 
switch and fuses and their accessories installed in a readily accessible 
location near the point of entrance of the supply cord or conductors 
into the manufactured home. The main circuit breakers or fuses shall be 
plainly marked ``Main.'' This equipment shall contain a solderless type 
of grounding connector or bar for the purposes of grounding with 
sufficient terminals for all grounding conductors. The neutral bar 
termination of the grounded circuit conductors shall be insulated.
    (d) The disconnecting equipment shall have a rating suitable for the 
connected load. The distribution equipment, either circuit breaker or 
fused type, shall be located a minimum of 24 inches from the bottom of 
such equipment to the floor level of the manufactured home.
    (e) A distribution panelboard employing a main circuit breaker shall 
be rated 50 amperes and employ a 2-pole circuit breaker rated 40 amperes 
for a 40-ampere supply cord, or 50 amperes for a 50-ampere supply cord. 
A distribution panelboard employing a disconnect switch and fuses shall 
be rated 60 amperes and shall employ a single 2-pole, 60-ampere 
fuseholder with 40- or 50-ampere main fuses for 40- or 50-ampere supply 
cords, respectively. The outside of the distribution panelboard shall be 
plainly marked with the fuse size.
    (f) The distribution panelboard shall not be located in a bathroom, 
or in any other inaccessible location, but shall be permitted just 
inside a closet entry if the location is such that a clear space of 6 
inches to easily ignitable materials is maintained in front of the 
distribution panelboard, and the distribution panelboard door can be 
extended to its full open position (at least 90 degrees). A clear 
working space at least 30 inches wide and 30 inches in front of the 
distribution panelboard shall be provided. This space shall extend from 
floor to the top of the distribution panelboard.
    (g) Branch-circuit distribution equipment shall be installed in each 
manufactured home and shall include overcurrent protection for each 
branch circuit consisting of either circuit breakers or fuses.
    (1) The branch circuit overcurrent devices shall be rated:
    (i) Not more than the circuit conductors; and
    (ii) Not more than 150 percent of the rating of a single appliance 
rated 13.3 amperes or more which is supplied by an individual branch 
circuit; but
    (iii) Not more than the fuse size marked on the air conditioner or 
other motor-operated appliance.
    (h) A 15-ampere multiple receptacle shall be acceptable when 
connected to a 20-ampere laundry circuit.
    (i) When circuit breakers are provided for branch-circuit protection 
240 circuits shall be protected by 2-pole

[[Page 189]]

common or companion trip, or handle-tied paired circuit breakers.
    (j) A 3 inch by 1-3/4 inch minimum size tag made of etched, metal-
stamped or embossed brass, stainless steel, anodized or alclad aluminum 
not less than 0.020 inch thick, or other approval material (e.g., 0.005 
inch plastic laminates) shall be permanently affixed on the outside 
adjacent to the feeder assembly entrance and shall read: This connection 
for 120/240 Volt, 3-Pole, 4-Wire, 60 Hertz, -------- Ampere Supply. The 
correct ampere rating shall be marked on the blank space.
    (k) When a home is provided with installed service equipment, a 
single disconnecting means for disconnecting the branch circuit 
conductors from the service entrance conductors shall be provided in 
accordance with Part F of Article 230 of the National Electrical Code, 
NFPA No. 70-1993. The disconnecting means shall be listed for use as 
service equipment. The disconnecting means may be combined with the 
disconnect required by Sec. 3280.804(c). The disconnecting means shall 
be rated not more than the ampere supply or service capacity indicated 
on the tag required by paragraph (l) of this section.
    (l) When a home is provided with installed service equipment, the 
electrical nameplate required by Sec. 3280.804(j) shall read: ``This 
connection for 120/240 volt, 3 pole, 3 wire, 60 Hertz, -------- Ampere 
Supply.'' The correct ampere rating shall be marked in the blank space.

[40 FR 58752, Dec. 18, 1975, as amended at 42 FR 961, Jan. 4, 1977. 
Redesignated at 44 FR 20679, Apr. 6, 1979, as amended at 52 FR 4589, 
Feb. 12, 1987; 58 FR 55019, Oct. 25, 1993]



Sec. 3280.805  Branch circuits required.

    (a) The number of branch circuits required shall be determined in 
accordance with the following:
    (1) Lighting, based on 3 volt-amperes per square foot times outside 
dimensions of the manufactured home (coupler excluded) divided by 120 
volts times amperes to determine number of 15 or 20 ampere lighting area 
circuits. e.g. [3 x length x width--[120 x (15 or 20)] = number of 15 or 
20 ampere circuits.
    (2) Small appliances. For the small appliance load in kitchen, 
pantry dining room and breakfast rooms of manufactured homes, two or 
more 20-ampere appliance branch circuits, in addition to the branch 
circuit specified in Sec. 3280.805(a)(1), shall be provided for all 
receptacle outlets in these rooms, and such circuits shall have no other 
outlets. Receptacle outlets supplied by at least two appliance 
receptacle branch circuits shall be installed in the kitchen.
    (3) General appliances (Including furnace, water heater, range, and 
central or room air conditioner, etc.). There shall be one or more 
circuits of adequate rating in accordance with the following:
    (i) Ampere rating of fixed appliances not over 50 percent of circuit 
rating if lighting outlets (receptacles, other than kitchen, dining 
area, and laundry, considered as lighting outlets) are on same circuit;
    (ii) For fixed appliances on a circuit without lighting outlets, the 
sum of rated amperes shall not exceed the branch-circuit rating. Motor 
loads or other continuous duty loads shall not exceed 80 percent of the 
branch circuit rating.
    (iii) The rating of a single cord and plug connected appliances on a 
circuit having no other outlets, shall not exceed 80 percent of the 
circuit rating.
    (iv) The rating of range branch circuit shall be based on the range 
demand as specified or ranges in Sec. 3280.811, Item B(5) of Method 1. 
For central air conditioning, see Article 440 of the National Electrical 
Code (NFPA No. 70-1993).
    (v) Where a laundry area is provided, a 20 ampere branch circuit 
shall be provided to supply laundry receptacle outlets. This circuit 
shall have no other outlets. See Sec. 3280.806(a)(7).
    (b) [Reserved]

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55020, Oct. 25, 1993]



Sec. 3280.806  Receptacle outlets.

    (a) All receptacle outlets shall be:
    (1) Of grounding type;
    (2) Installed according to section 210-7 of the National Electrical 
Code (NFPA No. 70-1993).
    (3) Except when supplying specific appliances, be parallel-blade, 
15-ampere, 125-volt, either single or duplex.

[[Page 190]]

    (b) All 120 volt single phase, 15 and 20 ampere receptacle outlets, 
including receptacles in light fixtures, installed outdoors, in 
compartments accessible from the outdoors, in bathrooms, and within 6 
feet of a kitchen sink to serve counter top surfaces shall have ground-
fault circuit protection for personnel. Feeders supplying branch 
circuits may be protected by a ground-fault circuit-interrupter in lieu 
of the provision for such interrupters specified above. Receptacles 
dedicated for washer and dryers, also located in a bathroom, are exempt 
from this requirement.
    (c) There shall be an outlet of the grounding type for each cord-
connected fixed appliance installed.
    (d) Receptacle outlets required. Except in the bath and hall areas, 
receptacle outlets shall be installed at wall spaces 2 feet wide or 
more, so that no point along the floor line is more than 6 feet, 
measured horizontally, from an outlet in that space. In addition, a 
receptacle outlet shall be installed:
    (1) Over or adjacent to counter tops in the kitchen (at least one on 
each side of the sink if counter tops are on each side and 12 inches or 
over in width).
    (2) Adjacent to the refrigerator and free-standing gas-range space. 
A duplex receptacle may serve as the outlet for a countertop and a 
refrigerator.
    (3) At counter top spaces for built-in vanities.
    (4) At counter top spaces under wall-mounted cabinets.
    (5) In the wall, at the nearest point where a bar type counter 
attaches to the wall.
    (6) In the wall at the nearest point where a fixed room divider 
attaches to the wall.
    (7) In laundry areas within 6 feet of the intended location of the 
appliance(s).
    (8) At least one receptacle outlet shall be installed outdoors.
    (9) Adjacent to bathroom basins or integral with the light fixture 
over the bathroom basin.
    (10) Receptacle outlets are not required in the following locations:
    (i) Wall space occupied by built-in kitchen or wardrobe cabinets,
    (ii) Wall space behind doors which may be opened fully against a 
wall surface,
    (iii) Room dividers of the lattice type, less than 8 feet long, not 
solid within 6 inches of the floor,
    (iv) Wall space afforded by bar type counters.
    (e) Receptacle outlets shall not be installed in or within reach (30 
inches) of a shower or bathtub space.
    (f) Receptacle outlets shall not be installed above electric 
baseboard heaters.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55020, Oct. 25, 1993]



Sec. 3280.807  Fixtures and appliances.

    (a) Electrical materials, devices, appliances, fittings, and other 
equipment installed, intended for use in, or attached to the 
manufactured home shall be approved for the application and shall be 
connected in an approved manner when in service. Facilities shall be 
provided to securely fasten appliances when the manufactured home is in 
transit. (See Sec. 3280.809.)
    (b) Specifically listed pendant-type fixtures or pendant cords shall 
be permitted in manufactured homes.
    (c) If a lighting fixture is provided over a bathtub or in a shower 
stall, it shall be of the enclosed and gasketed type, listed for wet 
locations. See also Article 410-4(d) of the National Electrical Code 
NFPA No. 70-1993.
    (d) The switch for shower lighting fixtures and exhaust fans located 
over a tub or in a shower stall shall be located outside the tub shower 
space. (See Sec. 3280.806(e).)
    (e) Any combustible wall or ceiling finish exposed between the edge 
of a fixture canopy, or pan and an outlet box shall be covered with non-
combustible or limited combustible material.
    (f) Every appliance shall be accessible for inspection, service, 
repair, or replacement without removal of permanent construction.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 52 FR 35543, Sept. 22, 1987; 58 FR 55020, Oct. 25, 1993]

[[Page 191]]



Sec. 3280.808  Wiring methods and materials.

    (a) Except as specifically limited in this part, the wiring methods 
and materials specified in the National Electrical Code (NFPA No. 70-
1993) shall be used in manufactured homes.
    (b) Nonmetallic outlet boxes shall be acceptable only with 
nonmetallic cable.
    (c) Nonmetallic cable located 15 inches or less above the floor, if 
exposed, shall be protected from physical damage by covering boards, 
guard strips, or conduit. Cable likely to be damaged by stowage shall be 
so protected in all cases.
    (d) Nonmetallic sheathed cable shall be secured by staples, straps, 
or similar fittings so designed and installed as not to injure any 
cable. Cable shall be secured in place at intervals not exceeding 4\1/2\ 
feet and within 12 inches from every cabinet, box or fitting.
    (e) Metal-clad and nonmetallic cables shall be permitted to pass 
through the centers of the wide side of 2-inch by 4-inch studs. However, 
they shall be protected where they pass through 2-inch by 2-inch studs 
or at other studs or frames where the cable or armor would be less than 
1\1/2\ inches from the inside or outside surface of the studs when the 
wall covering materials are in contact with the studs. Steel plates on 
each side of the cable, or a tube, with not less than No. 16 MSG wall 
thickness shall be required to protect the cable. These plates or tubes 
shall be securely held in place.
    (f) Where metallic faceplates are used they shall be effectively 
grounded.
    (g) If the range, clothes dryer, or similar appliance is connected 
by metalclad cable or flexible conduit, a length of not less than three 
feet of free cable or conduit shall be provided to permit moving the 
appliance. Type NM or Type SE cable shall not be used to connect a range 
or a dryer. This shall not prohibit the use of Type NM or Type SE cable 
between the branch circuit overcurrent protective device and a junction 
box or range or dryer receptacle.
    (h) Threaded rigid metal conduit shall be provided with a locknut 
inside and outside the box, and a conduit bushing shall be used on the 
inside. Rigid nonmetallic conduit shall be permitted. Inside ends of the 
conduit shall be reamed.
    (i) Switches shall be rated as follows:
    (1) For lighting circuits, switches, shall have a 10-ampere, 120-125 
volt rating; or higher if needed for the connected load.
    (2) For motors or other loads, switches shall have ampere or 
horsepower ratings, or both, adequate for loads controlled. (An ``AC 
general-use'' snap switch shall be permitted to control a motor 2 
horsepower or less with full-load current not over 80 percent of the 
switch ampere rating).
    (j) At least 4 inches of free conductor shall be left at each outlet 
box except where conductors are intended to loop without joints.
    (k) When outdoor or under-chassis line-voltage wiring is exposed to 
moisture or physical damage, it shall be protected by rigid metal 
conduit. The conductors shall be suitable for wet locations. Electrical 
metallic tubing may be used when closely routed against frames, and 
equipment enclosures.
    (l) The cables or conductors shall be Type NMC, TW, or equivalent.
    (m) Outlet boxes of dimensions less than those required in table 
370-6(a) of the National Electrical Code (NFPA No. 70-1993) shall be 
permitted provided the box has been tested and approved for the purpose.
    (n) Boxes, fittings, and cabinets shall be securely fastened in 
place, and shall be supported from a structural member of the home, 
either directly or by using a substantial brace. Snap-in type boxes 
provided with special wall or ceiling brackets that securely fasten 
boxes in walls or ceilings shall be permitted.
    (o) Outlet boxes shall fit closely to openings in combustible walls 
and ceilings, and they shall be flush with such surfaces.
    (p) Appliances having branch-circuit terminal connections which 
operate at temperatures higher than 60 deg. C (140 deg. F) shall have 
circuit conductors as described in paragraphs (p) (1) and (2) of this 
section:
    (1) Branch-circuit conductors having an insulation suitable for the 
temperature encountered shall be permitted to run directly to the 
appliance.

[[Page 192]]

    (2) Conductors having an insulation suitable for the temperature 
encountered shall be run from the appliance terminal connections to a 
readily accessible outlet box placed at least one foot from the 
appliance. These conductors shall be in a suitable raceway which shall 
extend for at least 4 feet.
    (q) A substantial brace for securing a box, fitting or cabinet shall 
be as described in the National Electrical Code, NFPA 70-1993 Article 
370-13(d), or the brace, including the fastening mechanism to attach the 
brace to the home structure, shall withstand a force of 50 lbs. applied 
to the brace at the intended point(s) of attachment for the box in a 
direction perpendicular to the surface in which the box is installed.
    (r) Outlet boxes shall fit closely to the openings in combustible 
wall and ceilings with a maximum of a \1/8\ inch gap. They shall be 
flush with the finish surface or project therefrom.
    (s) Where the sheathing of NM cable has been cut or damaged and 
visual inspection reveals that the conductor and its insulation has not 
been damaged, it shall be permitted to repair the cable sheath with 
electrical tape which provides equivalent protection to the sheath.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55020, Oct. 25, 1993]



Sec. 3280.809  Grounding.

    (a) General. Grounding of both electrical and nonelectrical metal 
parts in a manufactured home shall be through connection to a grounding 
bus in the manufactured home distribution panelboard. The grounding bus 
shall be grounded through the green-colored conductor in the supply cord 
or the feeder wiring to the service ground in the service-entrance 
equipment located adjacent to the manufactured home location. Neither 
the frame of the manufactured home nor the frame of any appliance shall 
be connected to the neutral conductor in the manufactured home.
    (b) Insulated neutral. (1) The grounded circuit conductor (neutral) 
shall be insulated from the grounding conductors and from equipment 
enclosures and other grounded parts. The grounded (neutral) circuit 
terminals in the distribution panelboard and in ranges, clothes dryers, 
counter-mounted cooking units, and wall-mounted ovens shall be insulated 
from the equipment enclosure. Bonding screws, straps, or buses in the 
distribution panelboard or in appliances shall be removed and discarded. 
However, when service equipment is installed on the manufactured home, 
the neutral and the ground bus may be connected in the distribution 
panel.
    (2) Connection of ranges and clothes dryers with 120/240 volt, 3-
wire ratings shall be made with 4 conductor cord and 3 pole, 4-wire 
grounding type plugs, or by type AC metal clad conductors enclosed in 
flexible metal conduit. For 120 volt rated devices a 3-conductor cord 
and a 2-pole, 3-wire grounding type plug shall be permitted.
    (c) Equipment grounding means. (1) The green-colored grounding wire 
in the supply cord or permanent feeder wiring shall be connected to the 
grounding bus in the distribution panelboard or disconnecting means.
    (2) In the electrical system, all exposed metal parts, enclosures, 
frames, lamp fixture canopies, etc., shall be effectively bonded to the 
grounding terminal or enclosure of the distribution panelboard.
    (3) Cord-connected appliances, such as washing machines, clothes 
dryers, refrigerators, and the electrical system of gas ranges, etc., 
shall be grounded by means of an approved cord with grounding conductor 
and grounding-type attachment plug.
    (d) Bonding of noncurrent-carrying metal parts. (1) All exposed 
noncurrent-carrying metal parts that may become energized shall be 
effectively bonded to the grounding terminal or enclosure of the 
distribution panelboard. A bonding conductor shall be connected between 
each distribution panelboard and an accessible terminal on the chassis.
    (2) Grounding terminals shall be of the solderless type and approved 
as pressure-terminal connectors recognized for the wire size used. Star 
washers or other approved paint-penetrating fitting shall be used to 
bond terminals to chassis or other coated areas. The bonding conductor 
shall be solid or stranded, insulated or bare and shall be No. 8 copper 
minimum, or equal. The

[[Page 193]]

bonding conductor shall be routed so as not to be exposed to physical 
damage. Protection can be afforded by the configuration of the chassis.
    (3) Metallic gas, water and waste pipes and metallic air-circulating 
ducts shall be considered bonded if they are connected to the terminal 
on the chassis (see Sec. 3280.809) by clamps, solderless connectors, or 
by suitable grounding-type straps.
    (4) Any metallic roof and exterior covering shall be considered 
bonded if (i) the metal panels overlap one another and are securely 
attached to the wood or metal frame parts by metallic fasteners, and 
(ii) if the lower panel of the metallic exterior covering is secured by 
metallic fasteners at a cross member of the chassis by two metal straps 
per manufactured home unit or section at opposite ends. The bonding 
strap material shall be a minimum of 4 inches in width of material 
equivalent to the skin or a material of equal or better electrical 
conductivity. The straps shall be fastened with paint-penetrating 
fittings (such as screws and star washers or equivalent).

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55020, Oct. 25, 1993]



Sec. 3280.810  Electrical testing.

    (a) Dielectric strength test. The wiring of each manufactured home 
shall be subjected to a 1-minute, 900 to 1079 volt dielectric strength 
test (with all switches closed) between live parts and the manufactured 
home ground, and neutral and the manufactured home ground. 
Alternatively, the test may be performed at 1080 to 1250 volts for 1 
second. This test shall be performed after branch circuits are complete 
and after fixtures or appliances are installed. Fixtures or appliances 
which are listed shall not be required to withstand the dielectric 
strength test.
    (b) Each manufactured home shall be subject to:
    (1) A continuity test to assure that metallic parts are properly 
bonded;
    (2) Operational test to demonstrate that all equipment, except water 
heaters, electric furnaces, dishwashers, clothes washers/dryers, and 
portable appliances, is connected and in working order; and
    (3) Polarity checks to determine that connections have been properly 
made. Visual verification shall be an acceptable check.

[58 FR 55020, Oct. 25, 1993]



Sec. 3280.811  Calculations.

    (a) The following method shall be employed in computing the supply 
cord and distribution-panelboard load for each feeder assembly for each 
manufactured home and shall be based on a 3-wire, 120/240 volt supply 
with 120 volt loads balanced between the two legs of the 3-wire system. 
The total load for determining power supply by this method is the 
summation of:
    (1) Lighting and small appliance load as calculated below:
    (i) Lighting volt-amperes: Length time width of manufactured home 
(outside dimensions exclusive of coupler) times 3 volt-amperes per 
square foot; e.g. Length x width x 3=lighting volt-amperes.
    (ii) Small appliance volt-amperes: Number of circuits time 1,500 
volt-amperes for each 20-ampere appliance receptacle circuit (see 
definition of ``Appliance Portable'' with Note): e.g. Number of circuits 
x 1,500=small appliance volt-amperes.
    (iii) Total volts-amperes: Lighting volts-amperes plus small 
appliance=total volt-amperes.
    (iv) First 3,000 total volts-amperes at 100 percent plus remainder 
at 35 percent=watts to be divided by 240 volts to obtain current 
(amperes) per leg.
    (2) Nameplate amperes for motors and heater loads (exhaust fans, air 
conditioners, electric, gas, or oil heating). Omit smaller of air 
conditioning and heating except include blower motor if used as air 
conditioner evaporator motor. When an air conditioner is not installed 
and a 40-ampere power supply cord is provided, allow 15 amperes per leg 
for air conditioning.
    (3) 25 percent of current of largest motor in paragraph (a)(2) of 
this section.
    (4) Total of nameplate amperes for: Disposal, dishwasher, water 
heater, clothes dryer, wall-mounted oven, cooking units. Where number of 
these appliances exceeds three, use 75 percent of total.

[[Page 194]]

    (5) Derive amperes for free-standing range (as distinguished from 
separate ovens and cooking units) by dividing values below by 240 volts.

------------------------------------------------------------------------
        Nameplate rating (in watts)                Use (in watts)
------------------------------------------------------------------------
10,000 or less............................  80 percent of rating.
10,001 to 12,500..........................  8,000.
12,501 to 13,500..........................  8,400.
13,501 to 14,500..........................  8,800.
14,501 to 15,500..........................  9,200.
15,501 to 16,500..........................  9,600.
16,501 to 17,500..........................  10,000.
------------------------------------------------------------------------

    (6) If outlets or circuits are provided for other than factory-
installed appliances, include the anticipated load. The following 
example is given to illustrate the application of this Method of 
Calculation:

    Example A manufactured home is 70x10 feet and has two portable 
appliance circuits, a 1000 volt-ampere 240 volt heater, a 200 volt-
ampere 120 volt exhaust fan, a 400 volts-ampere 120 volt dishwasher and 
a 7000 volt-ampere electric range.

------------------------------------------------------------------------
                                                                  Volt-
               Lighting and small appliance load                ampheres
------------------------------------------------------------------------
Lighting 70x10x3..............................................     2,100
Small Appliance...............................................     3,000
                                                               ---------
      Total...................................................     5,100
1st. 3,000 Volt-Ampheres at 100%..............................     3,000
Remainder (5,100 -3,000 =2,100, at 35%........................       735
                                                               ---------
      Total...................................................     3,735
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                     Amperes    Amperes
                                                    per leg A  per leg B
------------------------------------------------------------------------
Lighting and small Appliance......................       15.5       15.5
Heater 240 volt...................................        4.1        4.1
Fan 120 volt......................................        1.7  .........
Dishwasher 120 volt...............................  .........        3.3
Range.............................................       23.3       23.3
                                                   ---------------------
      Total.......................................       44.6      46.2
------------------------------------------------------------------------
Note: Based on the higher current calculated for either leg, use one 50-
  A supply cord.

    (b) The following is an optional method of calculation for lighting 
and appliance loads for manufactured homes served by single 3-wire 120/
240 volt set of feeder conductors with an ampacity of 100 or greater. 
The total load for determining the feeder ampacity may be computed in 
accordance with the following table instead of the method previously 
specified. Feeder conductors whose demand load is determined by this 
optional calculation shall be permitted to have the neutral load 
determined by section 220-22 of the National Electrical Code (NFPA No. 
70-1993). The loads identified in the table as ``other load'' and as 
``Remainder of other load'' shall include the following:
    (1) 1500 volt-amperes for each 2-wire, 20-ampere small appliance 
branch circuit and each laundry branch circuit specified.
    (2) 3 volt-amperes per square foot for general lighting and general-
use receptacles.
    (3) The nameplate rating of all fixed appliances, ranges, wall-
mounted ovens, counter-mounted cooking units, and including 4 or more 
separately controlled space heating loads.
    (4) The nameplate ampere or kVA rating of all motors and of all low-
power-factor loads.
    (5) The largest of the following:
    (i) Air conditioning load;
    (ii) The 65 percent diversified demand of the central electric space 
heating load;
    (iii) The 65 percent diversified demand of the load of less than 
four separately-controlled electric space heating units.
    (iv) The connected load of four or more separately-controlled 
electric space heating units.

  Optional Calculation for Manufactured Homes With 110-Ampere or Larger
                                 Service
------------------------------------------------------------------------
                                                                Demand
            Load (in kilowatt or kilovoltampere)                factor
                                                               (percent)
------------------------------------------------------------------------
Air-conditioning and cooling including heat pump compressors         100
Central electric space heating..............................          65
Less than 4 separately controlled electric space heating              65
 units......................................................
1st 10 kW of all other load.................................         100
Remainder of other load.....................................          40
------------------------------------------------------------------------


[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55021, Oct. 25, 1993]



Sec. 3280.812  Wiring of expandable units and dual units.

    (a) Expandable or multiple unit manufactured homes shall use fixed-
type wiring methods and materials for connecting such units to each 
other.
    (b) Expandable or multiple unit manufactured homes not having 
permanently installed feeders and which are

[[Page 195]]

to be moved from one location to another, shall be permitted to have 
disconnecting means with branch circuit protective equipment in each 
unit when so located that after assembly or joining together of units 
the requirements of Sec. 3280.803 will be met.



Sec. 3280.813  Outdoor outlets, fixtures, air-conditioning equipment, etc.

    (a) Outdoor fixtures and equipment shall be listed for use in wet 
locations, except that if located on the underside of the home or 
located under roof extensions or similarly protected locations, they may 
be listed for use in damp locations.
    (b) A manufactured home provided with an outlet designed to energize 
heating and/or air conditioning equipment located outside the 
manufactured home, shall have permanently affixed, adjacent to the 
outlet, a metal tag which reads:

    This Connection Is for Air Conditioning Equipment Rated at Not More 
Than ------ Amperes, at ------ Volts, 60 Hertz. A disconnect shall be 
located within sight of the appliance.


The correct voltage and ampere ratings shall be given. The tag shall not 
be less than 0.020 inch, etched Brass, stainless steel, anodized or 
alclad aluminum or equivalent or other approved material (e.g., .005 
inch plastic laminates). The tag shall be not less than 3 inches by 1\3/
4\ inches minimum size.

[40 FR 58752, Dec. 18, 1975, as amended at 42 FR 961, Jan. 4, 1977. 
Redesignated at 44 FR 20679, Apr. 6, 1979, as amended at 58 FR 55021, 
Oct. 25, 1993]



Sec. 3280.814  Painting of wiring.

    During painting or staining of the manufactured home, it shall be 
permitted to paint metal raceways (except where grounding continuity 
would be reduced) or the sheath of the nonmetallic cable. Some 
arrangement, however, shall be made so that no paint shall be applied to 
the individual wires, as the color coding may be obliterated by the 
paint.



Sec. 3280.815  Polarization.

    (a) The identified (white) conductor shall be employed for grounding 
circuit conductors only and shall be connected to the identified (white) 
terminal or lead on receptacle outlets and fixtures. It shall be the 
unswitched wire in switched circuits, except that a cable containing an 
identified conductor (white) shall be permitted for single-pole three-
way or four-way switch loops where the connections are made so that the 
unidentified conductor is the return conductor from the switch to the 
outlet. Painting of the terminal end of the wire shall not be required.
    (b) If the identified (white) conductor of a cable is used for other 
than grounded conductors or for other than switch loops as explained 
above (for a 240 volt circuit for example), the conductor shall be 
finished in a color other than white at each outlet where the conductors 
are visible and accessible.
    (c) Green-colored wires or green with yellow stripe shall be used 
for grounding conductors only.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 58 FR 55021, Oct. 25, 1993]



Sec. 3280.816  Examination of equipment for safety.

    The examination or inspection of equipment for safety, according to 
this standard, shall be conducted under uniform conditions and by 
organizations properly equipped and qualified for experimental testing, 
inspections of the run of goods at factories, and service-value 
determinations through field examinations.



                        Subpart J--Transportation



Sec. 3280.901  Scope.

    Subpart J of this standard covers the general requirement for 
designing the structure of the manufactured home to fully withstand the 
adverse effects of transportation shock and vibration without 
degradation of the integrated structure or of its component parts and 
the specific requirements pertaining to the transportation system and 
its relationship to the structure.



Sec. 3280.902  Definitions.

    (a) Chassis means the entire transportation system comprising the 
following subsystems: drawbar and coupling mechanism, frame, running 
gear assembly, and lights.

[[Page 196]]

    (b) Drawbar and coupling mechanism means the rigid assembly, 
(usually an A frame) upon which is mounted a coupling mechanism, which 
connects the manufactured home's frame to the towing vehicle.
    (c) Frame means the fabricated rigid substructure which provides 
considerable support to the affixed manufactured home structure both 
during transport and on-site; and also provides a platform for 
securement of the running gear assembly, the drawbar and coupling 
mechanism.
    (d) Running gear assembly means the subsystem consisting of 
suspension springs, axles, bearings, wheels, hubs, tires, and brakes, 
with their related hardware.
    (e) Lights means those safety lights and associated wiring required 
by applicable U.S. Department of Transportation regulations.
    (f) Transportation system, (Same as chassis, above).
    (g) Highway, includes all roads and streets to be legally used in 
transporting the manufactured home.

[40 FR 58752, Dec. 18, 1975. Redesignated at 44 FR 20679, Apr. 6, 1979, 
as amended at 47 FR 28093, June 29, 1982]



Sec. 3280.903  General requirements for designing the structure to withstand transportation shock and vibration.

    (a) The cumulative effect of highway transportation shock and 
vibration upon a manufactured home structure may result in incremental 
degradation of its designed performance in terms of providing a safe, 
healthy and durable dwelling. Therefore, the manufactured home shall be 
designed, in terms of its structural, plumbing, mechanical and 
electrical systems, to fully withstand such transportation forces during 
its intended life. (See Secs. 3280.303(c) and 3280.305(a)).
    (b) Particular attention shall be given to maintaining watertight 
integrity and conserving energy by assuring that structural components 
in the roof and walls (and their interfaces with vents, windows, doors, 
etc.) are capable of resisting highway shock and vibration forces during 
primary and subsequent secondary transportation moves.
    (c) In place of an engineering analysis, either of the following may 
be accepted:
    (1) Documented technical data of suitable highway tests which were 
conducted to simulate transportation loads and conditions; or
    (2) Acceptable documented evidence of actual transportation 
experience which meets the intent of this subpart.



Sec. 3280.904  Specific requirements for designing the transportation system.

    (a) General. The entire system (frame, drawbar and coupling 
mechanism, running gear assembly, and lights) shall be designed and 
constructed as an integrated, balanced and durable unit which is safe 
and suitable for its specified use during the intended life of the 
manufactured home. In operation, the transportation system (supporting 
the manufactured home structure and its contents) shall effectively 
respond to the control of the braking, while traveling at applicable 
towing vehicle in terms of tracking and highway speeds and in normal 
highway traffic conditions.
    Note: While the majority of manufactured homes utilize a fabricated 
steel frame assembly, upon which the manufactured home structure is 
constructed, it is not the intent of this standard to limit innovation. 
Therefore, other concepts, such as integrating the frame function into 
the manufactured home structure, are acceptable provided that such 
design meets the intent and requirements of this part).
    (b) Specific requirements--(1) Drawbar. The drawbar shall be 
constructed of sufficient strength, rigidity and durability to safely 
withstand those dynamic forces experienced during highway 
transportation. It shall be securely fastened to the manufactured home 
frame by either a continuous weld or by bolting.
    (2) Coupling mechanism. The coupling mechanism (which is usually of 
the socket type) shall be securely fastened to the drawbar in such a 
manner as to assure safe and effective transfer of the maximum loads, 
including dynamic loads, between the manufactured home structure and the 
hitch-assembly of the towing vehicle. The coupling shall be equipped 
with a manually operated mechanism so adapted as to prevent

[[Page 197]]

disengagement of the unit while in operation. The coupling shall be so 
designed that it can be disconnected regardless of the angle of the 
manufactured home to the towing vehicle. With the manufactured home 
parked on level ground, the center of the socket of the coupler shall 
not be less than 20 inches nor more than 26 inches from ground level.
    (3) Chassis. The chassis, in conjunction with the manufactured home 
structure, shall be designed and constructed to effectively sustain the 
designed loads consisting of the dead load plus a minimum of 3 pounds 
per square foot floor load, (example: free-standing range, refrigerator, 
and loose furniture) and the superimposed dynamic load resulting from 
highway movement but shall not be required to exceed twice the dead 
load. The integrated design shall be capable of insuring rigidity and 
structural integrity of the complete manufactured home structure and to 
insure against deformation of structural or finish members during the 
intended life of the home.
    (4) Running gear assembly. (i) The running gear assembly, as part of 
the chassis, shall be designed to perform, as a balanced system, in 
order to effectively sustain the designed loads set forth in 
Sec. 3280.904(b)(3) and to provide for durable dependable safe mobility 
of the manufactured home. It shall be designed to accept shock and 
vibration, both from the highway and the towing vehicle and effectively 
dampen these forces so as to protect the manufactured home structure 
from damage and fatigue. Its components shall be designed to facilitate 
routine maintenance, inspection and replacement.
    (ii) Location of the running gear assembly shall be determined by 
documented engineering analysis, taking into account the gross weight 
(including all contents), total length of the manufactured home, the 
necessary coupling hitch weight, span distance, and turning radius. The 
coupling weight shall be not less than 12 percent nor more than 25 
percent of the gross weight.
    (5) Spring assemblies. Spring assemblies (springs, hangers, 
shackles, bushings and mounting bolts) shall be capable of withstanding 
all the design loads as outlined in Sec. 3280.904(b)(3) without 
exceeding maximum allowable stresses for design spring assembly life as 
recommended by the spring assembly manufacturer. The capacity of the 
spring system shall assure, that under maximum operating load 
conditions, sufficient clearance shall be maintained between the tire 
and manufactured home frame or structure to permit unimpeded wheel 
movement and for changing tires.
    (6) Axles. Axles, and their connecting hardware, shall be capable of 
withstanding all of the design loads outlined in Sec. 3280.904(b)(3) 
without exceeding maximum allowable stresses for design axle life as 
recommended by the axle manufacturer. The number of axles required to 
provide a safe tow and good ride characteristics shall be determined and 
documented by engineering analysis. Those alternatives listed in 
Sec. 3280.903(c) may be accepted in place of such an analysis.
    (7) Hubs and bearings. Hubs and bearings shall meet the requirements 
of Sec. 3280.904(b)(3) and good engineering practice. Both of these 
components shall be accessible for inspection, routine maintenance and 
replacement of parts.
    (8) Tires, wheels and rims. Tires, wheels and rims shall meet the 
requirements of Sec. 3280.904(b)(3). Tires shall be selected for 
anticipated usage.
    (9) Brake assemblies. (i) The number, type, size and design of brake 
assemblies required to assist the towing vehicle in providing effective 
control and stopping of the manufactured home shall be determined and 
documented by engineering analysis. Those alternatives listed in 
Sec. 3280.903(c) may be accepted in place of such an analysis.
    (ii) Brakes on the towing vehicle and the manufactured home shall be 
capable of assuring that the maximum stopping distance from an initial 
velocity of 20 miles per hour does not exceed 40 feet (U.S. Department 
of Transportation Regulations).
    (10) Lights and associated wiring. Highway safety electrical lights 
and associated wiring shall conform to applicable Federal requirements 
in terms of location and performance. The manufacturer shall have the 
option of meeting

[[Page 198]]

this requirement by utilizing a temporary light/wiring harness provided 
by the manufactured home transportation carrier.



PART 3282--MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS--Table of Contents




                           Subpart A--General

Sec.
3282.1  Scope and purpose.
3282.6  Separability of provisions.
3282.7  Definitions.
3282.8  Applicability.
3282.9  Computation of time.
3282.10  Civil and criminal penalties.
3282.11  Preemption and reciprocity.
3282.12  Excluded structures--modular homes.
3282.13  Voluntary certification.
3282.14  Alternative construction of manufactured homes.

                      Subpart B--Formal Procedures

3282.51  Scope.
3282.52  Address of communications.
3282.53  Service of process on foreign manufacturers and importers.
3282.54  Public information.

               Subpart C--Rules and Rulemaking Procedures

3282.101  Generally.
3282.111  Petitions for reconsideration of final rules.
3282.113  Interpretative bulletins.

  Subpart D--Informal and Formal Presentations of Views, Hearings and 
                             Investigations

3282.151  Applicability and scope.
3282.152  Procedures to present views and evidence.
3282.153  Public participation in formal or informal presentation of 
          views.
3282.154  Petitions for formal or informal presentations of views, and 
          requests for extraordinary interim relief.
3282.155  Investigations.
3282.156  Petitions for investigations.

    Subpart E--Manufacturer Inspection and Certification Requirements

3282.201  Scope and purpose.
3282.202  Primary inspection agency contracts.
3282.203  DAPIA services.
3282.204  IPIA services.
3282.205  Certification requirements.
3282.206  Disagreement with IPIA or DAPIA.
3282.207  Manufactured home consumer manual requirements.
3282.208  Remedial actions--general description.
3282.209  Report requirements.
3282.210  Payment of monitoring fee.
3282.211  Record of purchasers.

           Subpart F--Dealer and Distributor Responsibilities

3282.251  Scope and purpose.
3282.252  Prohibition of sale.
3282.253  Removal of prohibition of sale.
3282.254  Distributor and dealer alterations.
3282.255  Completion of information card.
3282.256  Distributor or dealer complaint handling.

                Subpart G--State Administrative Agencies

3282.301  General--scope.
3282.302  State plan.
3282.303  State plan--suggested provisions.
3282.304  Inadequate State plan.
3282.305  State plan approval.
3282.306  Withdrawal of State approval.
3282.307  Monitoring inspection fee establishment and distribution.
3282.308  State participation in monitoring of primary inspection 
          agencies.
3282.309  Formal and informal presentations of views held by SAAs.

                 Subpart H--Primary Inspection Agencies

3282.351  General.
3282.352  State exclusive IPIA functions.
3282.353  Submission format.
3282.354  Submittal of false information or refusal to submit 
          information.
3282.355  Submission acceptance.
3282.356  Disqualification and requalification of primary inspection 
          agencies.
3282.357  Background and experience.
3282.358  Personnel.
3282.359  Conflict of interest.
3282.360  PIA acceptance of product certification programs or listings.
3282.361  Design Approval Primary Inspection Agency (DAPIA).
3282.362  Production Inspection Primary Inspection Agencies (IPIAs).
3282.363  Right of entry and inspection.
3282.364  Inspection responsibilities and coordination.
3282.365  Forwarding monitoring fee.
3282.366  Notification and correction campaign responsibilities.

       Subpart I--Consumer Complaint Handling and Remedial Actions

3282.401  Purpose and scope.
3282.402  General principles.
3282.403  Consumer complaint and information referral.

[[Page 199]]

3282.404  Notification pursuant to manufacturer's determination.
3282.405  SAA responsibilities.
3282.406  Required manufacturer correction.
3282.407  Notification and correction pursuant to administrative 
          determination.
3282.408  Reimbursement for prior correction by owner.
3282.409  Manufacturer's plan for notification and correction.
3282.410  Contents of notice.
3282.411  Time for implementation.
3282.412  Completion of remedial actions and report.
3282.413  Replacement or repurchase of manufactured home from purchaser.
3282.414  Manufactured homes in the hands of dealers and distributors.
3282.415  Notices, bulletins and other communications.
3282.416  Supervision of notification and correction actions.

          Subpart J--Monitoring of Primary Inspection Agencies

3282.451  General.
3282.452  Participation in monitoring.
3282.453  Frequency and extent of monitoring.

                    Subpart K--Departmental Oversight

3282.501  General.
3282.502  Departmental implementation.
3282.503  Determinations and hearings.

              Subpart L--Manufacturer, IPIA and SAA Reports

3282.551  Scope and purpose.
3282.552  Manufacturer reports for joint monitoring fees.
3282.553  IPIA reports.
3282.554  SAA reports.

    Authority: 28 U.S.C. 2461 note; 42 U.S.C. 5424; and 42 U.S.C. 
3535(d).

    Source: 41 FR 19852, May 13, 1976, unless otherwise noted.



                           Subpart A--General



Sec. 3282.1  Scope and purpose.

    (a) The National Manufactured Housing Construction and Safety 
Standards Act of 1974 (title VI of Pub. L. 93-383, 88 Stat. 700, 42 
U.S.C. 5401, et seq.) (hereinafter referred to as the Act), requires the 
Secretary of the Department of Housing and Urban Development to 
establish Federal manufactured home construction and safety standards 
and to issue regulations to carry out the purpose of the Act. The 
standards promulgated pursuant to the Act appear at part 3280 of chapter 
XX of this title, and apply to all manufactured homes manufactured for 
sale to purchasers in the United States on or after the effective date 
of the standards (June 15, 1976). A manufactured home is manufactured on 
or after June 15, 1976, if it enters the first stage of production on or 
after that date.
    (b) The Secretary is also authorized by the Act to conduct 
inspections and investigations necessary to enforce the standards, to 
determine that a manufactured home fails to comply with an applicable 
standard or contains a defect or an imminent safety hazard, and to 
direct the manufacturer to furnish notification thereof, and in some 
cases, to remedy the defect or imminent safety hazard. The purpose of 
this part is to prescribe procedures for the implementation of these 
responsibilities of the Secretary under the Act through the use of 
private and State inspection organizations and cooperation with State 
manufactured home agencies. It is the policy of the Department to 
involve State agencies in the enforcement of the Federal manufactured 
home standards to the maximum extent possible consistent with the 
capabilities of such agencies and the public interest. The procedures 
for investigations and investigational proceedings are set forth in 24 
CFR part 3800.

[41 FR 19852, May 13, 1976, as amended at 61 FR 10442, Mar. 13, 1996]



Sec. 3282.6  Separability of provisions.

    If any clause, sentence, paragraph, section or other portion of part 
3282 shall, for any reason, be adjudged by any court of competent 
jurisdiction to be invalid, such judgment shall not affect, impair, or 
invalidate the remainder thereof, but shall be confined by its operation 
to the clause, sentence, paragraph, or part thereof directly involved in 
the controversy in which such judgment shall have been rendered.



Sec. 3282.7  Definitions.

    The terms Department, HUD, and Secretary are defined in 24 CFR part 
5.
    (a) Act means the National Manufactured Housing Construction and 
Safety Standards Act of 1974, title VI of the

[[Page 200]]

Housing and Community Development Act of 1974 (42 U.S.C. 5401 et seq.)
    (b) Add-on means any structure (except a structure designed or 
produced as an integral part of a manufactured home) which, when 
attached to the basic manufactured home unit, increases the area, either 
living or storage, of the manufactured home.
    (c) Alteration means the replacement, addition, and modification, or 
removal of any equipment or installation after sale by a manufacturer to 
a dealer or distributor but prior to sale by a dealer to a purchaser 
which may affect the construction, fire safety, occupancy, plumbing, 
heat-producing or electrical system. It includes any modification made 
in the manufactured home which may affect the compliance of the home 
with the standards, but it does not include the repair or replacement of 
a component or appliance requiring plug-in to an electrical receptacle 
where the replaced item is of the same configuration and rating as the 
one being replaced. It also does not include the addition of an 
appliance requiring plug-in to an electrical receptacle, which appliance 
was not provided with the manufactured home by the manufacturer, if the 
rating of the appliance does not exceed the rating of the receptacle to 
which it is connected.
    (d) Certification label see label.
    (e) Certification report means the report prepared by an IPIA (see 
definition z) for each manufactured home manufacturing plant under 
Sec. 3282.203 in which the IPIA provides a complete description of the 
initial comprehensive inspection of the plant, an evaluation of the 
quality assurance program under the approved quality assurance manual, 
and the identity of the DAPIA (see definition z) which approved the 
designs and quality assurance manual used in the plant. Where 
appropriate under Sec. 3282.362(b)(5), the certification report may be 
made by a DAPIA.
    (f) Component means any part, material or appliance which is built 
in as an integral part of the manufactured home during the manufacturing 
process.
    (g) Cost information means information submitted by a manufacturer 
under section 607 of the Act with respect to alleged cost increases 
resulting from action by the Secretary, in such form as to permit the 
public and the Secretary to make an informed judgment on the validity of 
the manufacturer's statements. Such term includes both the 
manufacturer's cost and the cost to retail purchasers.
    (h) Date of manufacture means the date on which the label required 
by Sec. 3282.205(c) is affixed to the manufactured home.
    (i) Dealer 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.
    (j) Defect means a failure to comply with an applicable Federal 
manufactured home safety and construction standard that renders the 
manufactured home or any part or component thereof not fit for the 
ordinary use for which it was intended, but does not result in an 
unreasonable risk of injury or death to occupants of the affected 
manufactured home. See related definitions of imminent safety hazard 
(definition q), noncompliance (definition x), and serious defect 
(definition ff).
    (k) 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.
    (l) Director means the Director of the Manufactured Housing 
Standards Division.
    (m) Distributor means any person engaged in the sale and 
distribution of manufactured homes for resale.
    (n) Failure to conform means an imminent safety hazard related to 
the standards, a serious defect, defect, or noncompliance and is used as 
a substitute for all of those terms.
    (o) [Reserved]
    (p) Imminent safety hazard means a hazard that presents an imminent 
and unreasonable risk of death or severe personal injury that may or may 
not be related to failure to comply with an applicable Federal 
manufactured home construction or safety standard. See related 
definitions of defect (definition j), noncompliance (paragraph x) and 
serious defect (paragraph ff).

[[Page 201]]

    (q) Joint monitoring team means a monitoring inspection team 
composed of personnel provided by the various State Administrative 
Agencies, or by HUD or its contract agent, operating under a contract 
with HUD for the purpose of monitoring, or otherwise aiding in the 
enforcement of the Federal standards.
    (r) Label or certification label means the approved form of 
certification by the manufacturer that, under Sec. 3282.362(c)(2)(i), is 
permanently affixed to each transportable section of each manufactured 
home manufactured for sale to a purchaser in the United States.
    (s) (Same as Sec. 3280.2(a)(13).)
    (t) Manufacturer means any person engaged in manufacturing or 
assembling manufactured homes, including any person engaged in importing 
manufactured homes for resale.
    (u) (Same as Sec. 3280.2(a)(16).)
    (v) Manufactured home construction means all activities relating to 
the assembly and manufacture of a manufactured home including but not 
limited to those relating to durability, quality, and safety.
    (w) Manufactured home safety means the performance of a manufactured 
home in such a manner that the public is protected against any 
unreasonable risk of the occurrence of accidents due to the design or 
construction of such manufactured home, or any unreasonable risk of 
death or injury to the user or to the public if such accidents do occur.
    (x) Noncompliance means a failure of a manufactured home to comply 
with a Federal manufactured home construction or safety standard that 
does not constitute a defect, serious defect, or imminent safety hazard. 
See related definitions or defect (definition j), imminent safety hazard 
(definition q), and serious defect (definition ff).
    (y) Owner means any person purchasing a manufactured home from any 
other person after the first purchase of the manufactured home, in good 
faith, for purposes other than resale.
    (z) Primary Inspection Agency (PIA) means a State/or private 
organization that has been accepted by the Secretary in accordance with 
the requirement of subpart H of this part. There are two types of PIA:
    (1) Design Approval PIA (DAPIA), which evaluates and approves or 
disapproves manufactured home designs and quality control procedures, 
and
    (2) Production Inspection PIA (IPIA), which evaluates the ability of 
manufactured home manufacturing plants to follow approved quality 
control procedures and provides ongoing surveillance of the 
manufacturing process. Organizations may act as one or both of these 
types.
    (aa) Purchaser means the first person purchasing a manufactured home 
in good faith for purposes other than resale.
    (bb) Quality Assurance Manual means a manual, prepared by each 
manufacturer for its manufacturing plants and approved by a DAPIA which 
contains: a statement of the manufacturer's quality assurance program, a 
chart of the organization showing, by position, all personnel 
accountable for quality assurance, a list of tests and test equipment 
required, a station-by-station description of the manufacturing process, 
a list of inspections required at each station, and a list by title of 
personnel in the manufacturer's organization to be held responsible for 
each inspection. Where necessary, the quality assurance manual used in a 
particular plant shall contain information specific to that plant.
    (cc) To red tag means to affix a notice to a manufactured home which 
has been found to contain an imminent safety hazard or a failure to 
conform with any applicable standard. A red tag is the notice so affixed 
to the manufactured home.
    (dd) [Reserved]
    (ee) Secretary's agent means a party operating as an independent 
contractor under a contract with HUD.
    (ff) Serious defect means any failure to comply with an applicable 
Federal manufactured home construction and safety standard that renders 
the manufactured home or any part thereof not fit for the ordinary use 
for which it was intended and which results in an unreasonable risk of 
injury or death to occupants of the affected manufactured home.

[[Page 202]]

    (gg) Standards means the Federal manufactured home construction and 
safety standards promulgated under section 604 of the Act, 42 U.S.C. 
5403, as part 3280 of these regulations.
    (hh) State includes each of the several States, the District of 
Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, the 
Canal Zone, and American Samoa.
    (ii) State Administrative Agency (SAA) means an agency of a State 
which 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, and subpart G of this part.
    (jj) State plan application means the application of any State 
organization which is submitted to the Secretary for approval as a State 
Administrative Agency under subpart G.
    (kk) System means a set or arrangement of materials or components 
related or connected as to form an operating entity, i.e., heating, 
ventilating and air-conditioning systems, evaporative coolers.
    (ll) [Reserved]
    (mm) United States District Courts means the Federal district courts 
of the United States and the United States courts of the Commonwealth of 
Puerto Rico, Guam, the Virgin Islands, the Canal Zone, and American 
Samoa.
    (nn) (Same as Sec. 3280.2(a)(22).)

[41 FR 19852, May 13, 1976, as amended at 41 FR 24971, June 21, 1976; 47 
FR 28093, June 29, 1982; 61 FR 5216, Feb. 9, 1996; 61 FR 10859, Mar. 15, 
1996]



Sec. 3282.8  Applicability.

    (a) Mobile homes. This part applies to all manufactured homes that 
enter the first stage of production on or after June 15, 1976, and to 
all manufactured homes that enter the first stage of production before 
June 15, 1976, to which labels are applied under Sec. 3282.205(d).
    (b) States. This part applies to States that desire to assume 
responsibility under the Federal manufactured home construction and 
safety standards enforcement program. It includes requirements which 
must be met in order for State agencies to be approved by the Secretary 
under section 623(c) of the Act, 42 U.S.C. 5422(c). It also includes 
requirements for States wishing to act as primary inspection agencies, 
as defined in Sec. 3282.7, or to participate in monitoring activities 
under Sec. 3282.308.
    (c) Primary inspection and engineering organizations. This part 
applies to each private inspection and engineering organization that 
wishes to qualify as a primary inspection agency under subpart H.
    (d) Manufactured home manufacturers. This part applies to all 
manufacturers producing manufactured homes for sale in the United 
States. It includes:
    (1) Inspection procedures to be carried out in the manufacturing 
plants.
    (2) Procedures by which a manufacturer obtains approval of 
manufactured home designs.
    (3) Procedures by which a manufacturer obtains approval of 
manufacturing quality control and assurance programs.
    (4) Procedures by which a manufacturer may obtain production 
inspections and certification labels for its manufactured homes.
    (e) Manufactured home dealers and distributors. This part applies to 
any person selling, leasing, or distributing new manufactured homes for 
use in the United States. It includes prohibitions of the sale of new 
manufactured homes to which labels have not been affixed pursuant to 
subpart H of these regulations or that have been altered, damaged, or 
otherwise caused not to be in compliance with the Federal standards.
    (f) Purchasers, owners and consumers. This part applies to 
purchasers, owners and consumers of manufactured homes in that it sets 
out procedures to be followed when purchasers, owners and consumers 
complain to manufacturers, States, the Secretary or others concerning 
problems in manufactured homes for which remedies are provided under the 
Act.
    (g) Recreational vehicles. Recreational vehicles are not subject to 
this part, part 3280, or part 3283. A recreational vehicle is a vehicle 
which is:
    (1) Built on a single chassis;
    (2) 400 Square feet or less when measured at the largest horizontal 
projections;
    (3) Self-propelled or permanently towable by a light duty truck; and

[[Page 203]]

    (4) Designed primarily not for use as a permanent dwelling but as 
temporary living quarters for recreational, camping, travel, or seasonal 
use.
    (h) Imported manufactured homes. Imported manufactured homes are 
covered by the regulations except as modified by regulations promulgated 
jointly by the Secretary and the Secretary of the Treasury.
    (i) Export manufactured homes. Manufactured Homes intended solely 
for export are not governed by this part or by part 3280 of this title 
if a label or tag stating that the manufactured home is intended solely 
for export is placed on the manufactured home or the outside of the 
container, if any, in which it is to be exported. However, any 
manufactured home so tagged or labeled that is not exported but is sold 
to a purchaser in the United States is subject to this part and part 
3280 of this title.
    (j) Add-on. An add-on added by the dealer or some other party not 
the manufacturer (except where the manufacturer acts as a dealer) as 
part of a simultaneous transaction involving the sale of a new 
manufactured home, is not governed by the standards and is not subject 
to these regulations. However, the addition of the add-on must not 
affect the ability of the basic manufactured home to comply with the 
standards. If the addition of an add-on causes the basic manufactured 
home to fail to conform to the standards, sale, lease, and offer for 
sale or lease of the home is prohibited until the manufactured home is 
brought into conformance with the standards. While the standards do not 
govern add-ons, the Secretary has the authority to promulgate standards 
for add-ons and may do so in the future.
    (k) A structure (including an expandable room, tip-out, or tag-along 
unit) which is designed and produced as an integral part of a 
manufactured home when assembled on site, is governed by the standards 
and these regulations regardless of the dimensions of such structure.
    (l) Multifamily homes. Mobile homes designed and manufactured with 
more than one separate living unit are not covered by the standards and 
these regulations.

[41 FR 19852, May 13, 1976, as amended at 41 FR 24970, June 21, 1976; 42 
FR 35013, July 7, 1977; 44 FR 68733, Nov. 29, 1979; 47 FR 28093, June 
29, 1982]



Sec. 3282.9  Computation of time.

    (a) In computing any period of time prescribed by the regulations in 
this part, refer to Sec. 26.16(a) of this title.
    (b) Extensions of any of the time periods set out in these 
regulations may be granted by the Secretary or, as appropriate, by a 
State Administrative Agency, upon a showing of good cause by the party 
governed by the time period.

[42 FR 2580, Jan. 12, 1977, as amended at 61 FR 10859, Mar. 15, 1996]



Sec. 3282.10  Civil and criminal penalties.

    Failure to comply with these regulations may subject the party in 
question to the civil and criminal penalties provided for in section 611 
of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed 
under section 611 of the Act shall be $1,100 for each violation, up to a 
maximum of $1,100,000 for any related series of violations occurring 
within one year from the date of the first violation.

[41 FR 19852, May 13, 1976, as amended at 61 FR 50219, Sept. 24, 1996]

    Effective Date Note: At 68 FR 12788, Mar. 17, 2003, Sec. 3282.10 was 
revised, effective Apr. 16, 2003. For the convenience of the user, the 
revised text follows:

Sec. 3282.10  Civil and criminal penalties.

    Failure to comply with these regulations may subject the party in 
question to the civil and criminal penalties provided for in section 611 
of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed 
under section 611 of the Act shall be $1,100 for each violation, up to a 
maximum of $1,250,000 for any related series of violations occurring 
within one year from the date of the first violation.



Sec. 3282.11  Preemption and reciprocity.

    (a) No State manufactured home standard regarding manufactured home 
construction and safety which covers aspects of the manufactured home 
governed by the Federal standards shall be established or continue in 
effect with

[[Page 204]]

respect to manufactured homes subject to the Federal standards and these 
regulations unless it is identical to the Federal standards.
    (b) No State may require, as a condition of entry into or sale in 
the State, a manufactured home certified (by the application of the 
label required by Sec. 3282.362(c)(2)(i)) as in conformance with the 
Federal standards to be subject to State inspection to determine 
compliance with any standard covering any aspect of the manufactured 
home covered by the Federal standards. Nor may any State require that a 
State label be placed on the manufactured home certifying conformance to 
the Federal standard or an identical standard. Certain actions that 
States are permitted to take are set out in Sec. 3282.303.
    (c) States may participate in the enforcement of the Federal 
standards enforcement program under these regulations either as SAAs or 
PIAs or both. These regulations establish the exclusive system for 
enforcement of the Federal standards. No State may establish or keep in 
effect through a building code enforcement system or otherwise, 
procedures or requirements which constitute systems for enforcement of 
the Federal standards or of identical State standards which are outside 
the system established in these regulations or which go beyond this 
system to require remedial actions which are not required by the Act and 
these regulations. A State may establish or continue in force consumer 
protections, such as warranty or warranty performance requirements, 
which respond to individual consumer complaints and so do not constitute 
systems of enforcement of the Federal standards, regardless of whether 
the State qualifies as an SAA or PIA.
    (d) No State or locality may establish or enforce any rule or 
regulation or take any action that stands as an obstacle to the 
accomplishment and execution of the full purposes and objectives of 
Congress. The test of whether a State rule or action is valid or must 
give way is whether the State rule can be enforced or the action taken 
without impairing the Federal superintendence of the manufactured home 
industry as established by the Act.

[42 FR 2580, Jan. 12, 1977, as amended at 56 FR 65186, Dec. 16, 1991; 61 
FR 10859, Mar. 15, 1996]



Sec. 3282.12  Excluded structures--modular homes.

    (a) The purpose of this section is to provide the certification 
procedure authorized by section 604(h) of the National Manufactured 
Housing Construction and Safety Standards Act under which modular homes 
may be excluded from coverage of the Act if the manufacturer of the 
structure elects to have them excluded. If a manufacturer wishes to 
construct a structure that is both a manufactured home and a modular 
home, the manufacturer need not make the certification provided for by 
this section and may meet both the Federal manufactured home 
requirements and any modular housing requirements. When the 
certification is not made, all provisions of the Federal requirements 
shall be met.
    (b) Any structure that meets the definition of manufactured home at 
24 CFR 3282.7(u) is excluded from the coverage of the National 
Manufactured Housing Construction and Safety Standards Act, 42 U.S.C. 
5401 et seq., if the manufacturer certifies as prescribed in paragraph 
(c) of this section that:
    (1) The structure is designed only for erection or installation on a 
site-built permanent foundation;
    (i) A structure meets this criterion if all written materials and 
communications relating to installation of the structure, including but 
not limited to designs, drawings, and installation or erection 
instructions, indicate that the structure is to be installed on a 
permanent foundation.
    (ii) A site-built permanent foundation is a system of supports, 
including piers, either partially or entirely below grade which is:
    (A) Capable of transferring all design loads imposed by or upon the 
structure into soil or bedrock without failure,
    (B) Placed at an adequate depth below grade to prevent frost damage, 
and
    (C) Constructed of concrete, metal, treated lumber or wood, or 
grouted masonry; and

[[Page 205]]

    (2) The structure is not designed to be moved once erected or 
installed on a site-built permanent foundation;
    (i) A structure meets this criterion if all written materials and 
communications relating to erection or installation of the structure, 
including but not limited to designs, drawings, calculations, and 
installation or erection instructions, indicate that the structure is 
not intended to be moved after it is erected or installed and if the 
towing hitch or running gear, which includes axles, brakes, wheels and 
other parts of the chassis that operate only during transportation, are 
removable and designed to be removed prior to erection or installation 
on a site-built permanent foundation; and
    (3) The structure is designed and manufactured to comply with the 
currently effective version of one of the following:
    (i) One of the following nationally recognized building codes:
    (A) That published by Building Officials and Code Administrators 
(BOCA) and the National Fire Protection Association (NFPA) and made up 
of the following:
    (1) BOCA Basic Building Code,
    (2) BOCA Basic Industrialized Dwelling Code,
    (3) BOCA Basic Plumbing Code,
    (4) BOCA Basic Mechanical Code, and
    (5) National Electrical Code, or
    (B) That published by the Southern Building Code Congress (SBCC) and 
the NFPA and made up of the following:
    (1) Standard Building Code,
    (2) Standard Gas Code,
    (3) Standard Mechanical Code,
    (4) Standard Plumbing Code, and
    (5) National Electrical Code, or
    (C) That published by the International Conference of Building 
Officials (ICBO), the International Association of Plumbing and 
Mechanical Officials (IAPMO), and the NFPA and made up of the following:
    (1) Uniform Building Code,
    (2) Uniform Mechanical Code,
    (3) Uniform Plumbing Code, and
    (4) National Electrical Code or
    (D) The codes included in paragraphs (b)(3)(i)(A), (B), or (C) in 
connection with the One- and Two-Family Dwelling Code, or
    (E) Any combination of the codes included in paragraphs 
(b)(3)(i)(A), (B), (C), and (D), that is approved by the Secretary, 
including combinations using the National Standard Plumbing Code 
published by the National Association of Plumbing, Heating and Cooling 
Contractors (PHCC), or
    (F) Any other building code accepted by the Secretary as a 
nationally recognized model building code, or
    (ii) Any local code or State or local modular building code accepted 
as generally equivalent to the codes included under paragraph (b)(3)(i), 
(the Secretary will consider the manufacturer's certification under 
paragraph (c) of this section to constitute a certification that the 
code to which the structure is built is generally equivalent to the 
referenced codes. This certification of equivalency is subject to the 
provisions of paragraph (f) of this section) or
    (iii) The minimum property standards adopted by the Secretary 
pursuant to title II of the National Housing Act; and
    (4) To the manufacturer's knowledge, the structure is not intended 
to be used other than on a site-built permanent foundation.
    (c) When a manufacturer makes a certification provided for under 
paragraph (b) of this section, the certification shall state as follows:

    The manufacturer of this structure, Name ----------------; Address -
--------------- (location where structure was manufactured).

    Certifies that this structure (Ser. No. --------) is not a 
manufactured home subject to the provisions of the National Manufactured 
Housing Construction and Safety Standards Act and is--
    (1) designed only for erection or installation on a site-built 
permanent foundation,
    (2) not designed to be moved once so erected or installed,
    (3) designed and manufactured to comply with ---------------- (Here 
state which code included in paragraph (b)(3) of this section has been 
followed), and
    (4) to the manufacturer's knowledge is not intended to be used other 
than on a site-built permanent foundation.

    (d) This certification shall be affixed in a permanent manner near 
the electrical panel, on the inside of a kitchen cabinet door, or in any 
other readily accessible and visible location.

[[Page 206]]

    (e) As part of this certification, the manufacturer shall identify 
each certified structure by a permanent serial number placed on the 
structure during the first stage of production. If the manufacturer also 
manufactures manufactured homes that are certified under Secs. 3282.205 
and 3282.362(c), the series of serial numbers for structures certified 
under this section shall be distinguishable on the structures and in the 
manufacturer's records from the series of serial numbers for the 
manufactured homes that are certified under Secs. 3282.205 and 
3282.362(c).
    (1) If a manufacturer wishes to certify a structure as a 
manufactured home under Secs. 3282.205 and 3282.362(c) after having 
applied a serial number identifying it as exempted under this section, 
the manufacturer may do so only with the written consent of the 
Production Inspection Primary Inspection Agency (IPIA) after thorough 
inspection of the structure by the IPIA at at least one stage of 
production and such removal or equipment, components, or materials as 
the IPIA may require to perform inspections to assure that the structure 
conforms to the Federal manufactured home standards. The manufacturer 
shall remove the original serial number and add the serial number 
required by Sec. 3280.6.
    (2) A manufacturer may not certify a structure under this section 
after having applied the manufactured home serial number under 
Sec. 3280.6.
    (f) All certifications made under this section are subject to 
investigation by the Secretary to determine their accuracy. If a 
certification is false or inaccurate, the certification for purposes of 
this section is invalid and the structures that have been or may be the 
subject of the certification are not excluded from the coverage of the 
Act, the Federal Manufactured Home Construction and Safety Standards, or 
these Regulations.
    (1) If the Secretary has information that a certification may be 
false or inaccurate, the manufacturer will be given written notice of 
the nature of this information by certified mail and the procedure of 
this subparagraph will be followed.
    (i) The manufacturer must investigate this matter and report its 
findings in writing as to the validity of this information to the 
Secretary within 15 days from the receipt of the Secretary's notice.
    (ii) If a written report is received within the time prescribed in 
paragraph (f)(1)(i) of this section, the Secretary will review this 
report before determining whether a certification is false or 
inaccurate. If a report is not received within 15 days from the receipt 
of the Secretary's notice, the Secretary will make the determination on 
the basis of the information presented.
    (iii) If the Secretary determines that a certification is false or 
inaccurate, the manufacturer will be given written notice and the 
reasons for this determination by certified mail.
    (2) The Secretary may seek civil and criminal penalties provided for 
in section 611 of the Act, 42 U.S.C. 5410, if the party in question in 
the exercise of due care has reason to know that such certification is 
false or misleading as to any material fact.

[44 FR 68733, Nov. 29, 1979, as amended at 49 FR 10666, Mar. 22, 1984]



Sec. 3282.13  Voluntary certification.

    (a) The purpose of this section is to provide a procedure for 
voluntary certification of non-conforming manufactured homes as required 
by 42 U.S.C. 5402(6) as amended by section 308(d)(B) of the Housing and 
Community Development Act of 1980.
    (b) Structures which meet all of the requirements of a manufactured 
home as set out in Sec. 3282.7(u), except the size requirements, shall 
be manufactured homes if the manufacturer files with the Secretary a 
certification in the following form:

    [Name of manufacturer and address where structures are to be 
manufactured] certifies that it intends to manufacture structures that 
meet all of the requirements of manufactured homes set forth at 42 
U.S.C. 5402(6) except the size requirements. Such structures are to be 
treated as manufactured homes for the purposes of the National 
Manufactured Housing Construction and Safety Standards Act of 1974 and 
the regulations promulgated pursuant thereto. Such structures will be 
built in conformance with the Standards. [Name of manufacturer] further 
certifies that if, at any time it manufactures structures which are not 
manufactured

[[Page 207]]

homes, it will identify each such structure by a permanent serial number 
placed on the structure during the first stage of production and that 
the series of serial numbers for such structures shall be 
distinguishable on the structures and in its records from the series of 
serial numbers used for manufactured homes.

    (c) Whenever a manufacturer which has filed a certification pursuant 
to Sec. 3282.13(b) produces structures which are not manufactured homes, 
it must identify each such structure by placing a permanent serial 
number on the structure during the first stage of production. The series 
of serial numbers placed on these structures shall be distinguishable on 
the structure and in the manufacturer's records from the series of 
serial numbers used for manufactured homes.
    (d) A manufacturer may certify a structure as a manufactured home 
after having applied a serial number identifying it as a structure which 
is not a manufactured home. To do so, the manufacturer must secure the 
written consent of the IPIA. This consent may only be given after a 
DAPIA has approved the manufacturer's design and quality assistance 
manual in accordance with Sec. 3282.361, and after the IPIA has 
thoroughly inspected the structure in at least one stage of production 
and after such removal of equipment, components or materials as the IPIA 
may require to assure that the structure conforms to the standards. 
After certification as a manufactured home has been approved, the 
manufacturer shall remove the original serial number and add the serial 
number required by Sec. 3280.6.
    (e) Once a manufacturer has certified under Sec. 3282.13(b) that it 
intends to build structures which are manufactured homes in all respects 
except size, the manufacturer must then, with respect to those 
structures, comply with all of the requirements of the Act and its 
regulations. The structures may not thereafter be exempted under any 
other section of these regulations.

[47 FR 28093, June 29, 1982]



Sec. 3282.14  Alternative construction of manufactured homes.

    (a) Policy. In order to promote the purposes of the Act, the 
Department will permit the sale or lease of one or more manufactured 
homes not in compliance with the Standards under circumstances wherein 
no affirmative action is needed to protect the public interest. The 
Department encourages innovation and the use of new technology in 
manufactured homes. Accordingly, HUD will permit manufacturers to 
utilize new designs or techniques not in compliance with the Standards 
in cases:
    (1) Where a manufacturer proposes to utilize construction that would 
be prohibited by the Standards;
    (2) Where such construction would provide performance that is 
equivalent to or superior to that required by the Standards; and
    (3) Where (i) compliance with the Standards would be unreasonable 
because of the circumstances of the particular case, or (ii) the 
alternative construction would be for purposes of research, testing or 
development of new techniques or designs. If a request for alternative 
construction is submitted and the facts are consistent with these 
principles, the Secretary may issue a letter under paragraph (c) of this 
section stating that no action will be taken under the Act based upon 
specific failures to conform to the Standards or these regulations, 
provided that certain conditions are met. The issuance of a letter under 
paragraph (c) of this section will not affect any right that any 
purchaser may have under the Act or other applicable law and will not 
preclude any further agency action that may become necessary.
    (b) Request for alternative construction. A manufacturer may submit 
a request for alternative construction of a manufactured home. The 
request should be sent to the U.S. Department of Housing and Urban 
Development, Manufactured Housing Standards Division, 451 Seventh 
Street, SW., Washington, DC 20410. The request must include:
    (1) A copy of the manufactured design or plan for each nonconforming 
model which a manufacturer plans to build;
    (2) An explanation of the manner in which the design fails to 
conform with the Standards, including a list of the specific standards 
involved;

[[Page 208]]

    (3) An explanation of how the design will result in homes that 
provide the same level of performance, quality, durability and safety as 
would be provided under the Standards;
    (4) A copy of data adequate to support the request, including 
applicable test data, engineering calculations or certifications from 
nationally recognized laboratories;
    (5) An estimate of the maximum number of manufactured home units 
affected and the location, if known, to which the units will be shipped;
    (6) An indication of the period of time during which the 
manufacturer proposes to engage in the manufacture, sale or lease of the 
nonconforming homes;
    (7) A copy of the proposed notice to be provided to home purchasers;
    (8) A list of the names and addresses of any dealers that would be 
selling the nonconforming homes; and
    (9) A letter from the manufacturer's DAPIA indicating that the 
design(s) to which any nonconforming homes would be built meet the 
Standards in all other respects.
    (c) Issuance of the letter by the Secretary--(1) Contents of the 
letter. If the Secretary issues a letter in response to a request for 
alternative construction, the letter shall include the specific 
standards affected, an explanation of the proposed activity or design, 
an explanation of how the request is consistent with the objectives of 
the Act, and any conditions that the manufacturer must meet.
    (2) Letter sent to IPIA, DAPIA and SAA. The Secretary shall forward 
a copy of the letter to the manufacturer's IPIA and DAPIA along with a 
letter authorizing the DAPIA to approve plans containing the alternative 
construction, and authorizing the IPIA to permit use of the alternative 
construction, provided that the conditions set forth in the letter are 
met. The Secretary shall also forward a copy of the letter to the SAAs 
in the State of manufacture and the State(s) in which the homes are to 
be located, if known.
    (3) Alternative construction in additional models. In cases where 
the Secretary grants a letter under this paragraph that is not model-
specific, the Secretary may permit the manufacturer to include the 
alternative construction in additional models. In such cases, the DAPIA 
shall notify the Department of additional models that incorporate the 
alternative construction.
    (d) Revocation. The Secretary may revoke or amend a letter issued 
under paragraph (c) of this section at any time. Such revocation or 
amendment will be prospective only. Where manufacturers have requested 
alternative construction for research, testing or development such 
alternative construction may not achieve the anticipated results. 
Therefore, the Secretary may require a manufacturer to bring those homes 
into compliance with the standards if, after the alternative 
construction has been in use for a period of time specified by the 
Secretary, these homes are not, in the Secretary's judgment, providing 
the levels of safety, quality and durability which would have been 
provided had the homes been built in compliance with the Standards.
    (e) Notice to prospective purchasers. Manufacturers receiving 
letters under paragraph (c) of this section shall provide notice to 
prospective purchasers that the home does not conform to the Standards. 
Such notice shall be delivered to each prospective purchase before he or 
she enters into an agreement to purchase the home. The notice shall be 
in the following form or in such other form as may be approved by the 
Secretary:

                          Notice to Purchasers

    The Department of Housing and Urban Development has issued a letter 
to (Name of Manufacturer) concerning the homes in (location if known). 
As designed, the homes do not meet Federal Manufactured Home 
Construction and Safety Standards regarding (brief statement of 
manufacturer's nonconformance).
    HUD has evaluated the alternative construction and believes that it 
provides an equivalent level of quality, durability and safety to that 
provided by the Standards.
    For further information about the specific Federal Standards 
involved, a copy of the letter issued pursuant to 24 CFR 3282.14(c) is 
available from this dealer or manufacturer upon request.

    (f) Serial numbers of homes constructed using alternative 
construction. Manufacturers shall provide the Department

[[Page 209]]

with the serial numbers assigned to each home produced in conformance 
with the letter issued under paragraph (c) of this section within 90 
days of their date of manufacture. Each serial number shall include the 
letters ``AC'' to indicate that the homes was produced under alternative 
construction procedures.

[49 FR 1967, Jan. 16, 1984]



                      Subpart B--Formal Procedures



Sec. 3282.51  Scope.

    This subpart contains rules of procedure generally applicable to the 
transaction of official business under the National Manufactured Housing 
Construction and Safety Standards Act, including the rules governing 
public availability of information.



Sec. 3282.52  Address of communications.

    Unless otherwise specified, communications shall be addressed to the 
Director, Manufactured Housing Standards Division, Department of Housing 
and Urban Development, 451 Seventh Street, SW., Washington, DC 20410.



Sec. 3282.53  Service of process on foreign manufacturers and importers.

    The designation of an agent required by section 612(e) of the Act, 
42 U.S.C. 5411(e), shall be in writing, dated, and signed by the 
manufacturer and the designated agent.

[61 FR 10860, Mar. 15, 1996]



Sec. 3282.54  Public information.

    (a) General. Subject to the provisions of 24 CFR part 15 covering 
the production or disclosure of material or information and the 
provisions of 24 CFR part 16 at 40 FR 39729 relating to the Privacy Act, 
and except as otherwise provided by paragraphs (b), (c), (d), and (e) of 
this section, the Secretary may make available to the public:
    (1) Any information which may indicate the existence of an imminent 
safety hazard, and
    (2) Any information which may indicate the failure of a manufactured 
home to comply with applicable manufactured home construction and safety 
standards, and
    (3) Such other information as the Secretary determines is necessary 
to carry out the Secretary's functions under the Act.
    (b) Protected information. Data and information submitted or 
otherwise provided to the Secretary or an agent of the Secretary or a 
PIA or SAA which fall within the definitions of a trade secret or 
confidential commercial or financial information are exempt from 
disclosure under this section, only if the party submitting or providing 
the information so requests under paragraph (c) of this section. 
However, the Secretary may disclose such information to any person 
requesting it after deletion of the portions which are exempt, or in 
such combined or summary form as does not disclose the portions which 
are exempt from disclosure or in its entirety in accordance with section 
614 of the Act, U.S.C. 5413.
    (c) Obtaining exemption. Any party submitting any information to the 
Secretary in any form under this part, or otherwise in relation to the 
program established by the Act shall, if the party desires the 
information to be exempt from disclosure, at the time of submittal of 
the information or at any time thereafter, request that the information 
or any part thereof be protected from disclosure. The request for 
nondisclosure shall include the basis for the request under the Act or 
other authority and complete justification supporting the claim that the 
material should be exempt from disclosure. The request should also 
include a statement of the information in such combined or summary form 
that alleged trade secrets or other protected information and the 
identity of the submitting party would not be disclosed. This request 
need not be made with respect to information which was submitted to the 
Secretary, an SAA or a PIA prior to the effective date of these 
regulations.
    (d) Request for information from PIAs or SAAs. Whenever a PIA or SAA 
receives requests for disclosure of information, it shall disclose the 
information unless the party from which the information was originally 
obtained

[[Page 210]]

has submitted to the PIA or SAA a request that the information not be 
disclosed under paragraph (c) of this section, except that the PIA or 
SAA shall be governed by the provisions of 24 CFR part 16 (40 FR 39729) 
relating to the Privacy Act which may limit the disclosure of 
information. If a request for nondisclosure under paragraph (c) of this 
section has been received with respect to information whose disclosure 
is requested, the PIA or SAA shall refer the matter to the Secretary 
within 5 days of the request for disclosure. If a PIA or SAA receives a 
request for disclosure of information related to this program, which 
information was submitted to the PIA or SAA prior to the effective date 
of these regulations, the PIA or SAA shall refer the request for 
nondisclosure and required information to the Secretary.

[41 FR 19852, May 13, 1976, as amended at 61 FR 10860, Mar. 15, 1996]



               Subpart C--Rules and Rulemaking Procedures



Sec. 3282.101  Generally.

    Procedures that apply to the formulation, issuance, amendment, and 
revocation of rules pursuant to the Act are governed by the Act, the 
Administrative Procedure Act, 5 U.S.C. 551 et seq., and part 10 of this 
title, except that the Secretary shall respond to a petition for 
rulemaking by an interested party within 180 days of receipt of the 
petition.

[61 FR 10860, Mar. 15, 1996]



Sec. 3282.111  Petitions for reconsideration of final rules.

    (a) Definition. A petition for reconsideration of a final rule 
issued by the Secretary is a request in writing from any interested 
person which must be received not later than 60 days after publication 
of the rule in the Federal Register. The petition shall state that it is 
a petition for reconsideration of a final rule, and shall contain an 
explanation as to why compliance with the rule is not practicable, is 
unreasonable, or is not in the public interest. If the petitioner 
requests the consideration of additional facts, the petitioner shall 
state the reason they were not presented to be treated as petitions for 
rulemaking.
    (b) Proceedings on petitions for reconsideration. The Secretary may 
grant or deny, in whole or in part, any petition for reconsideration 
without further proceedings. The Secretary may issue a final decision on 
reconsideration without further proceeding, or may provide such 
opportunity to submit comments or information and data as the Secretary 
deems appropriate.
    (c) Unless the Secretary determines otherwise, the filing of a 
petition under this section does not stay the effectiveness of the rule 
in question.
    (d) Any party seeking to challenge any rule or regulation issued 
under the Act, except orders issued under section 604 42 U.S.C. 5403, if 
the challenge is brought before the expiration of the 60 day period set 
out in paragraph (a) of this section, shall file a timely petition for 
reconsideration under this section prior to seeking any other remedy.



Sec. 3282.113  Interpretative bulletins.

    When appropriate, the Secretary shall issue interpretative bulletins 
interpreting the standards under the authority of Sec. 3280.9 of this 
chapter or interpreting the provisions of this part. Issuance of 
interpretative bulletins shall be treated as rulemaking under this 
subpart C unless the Secretary deems such treatment not to be in the 
public interest and the interpretation is not otherwise required to be 
treated as rulemaking. All interpretative bulletins shall be indexed and 
made available to the public at the Manufactured Housing Standards 
Division and a copy of the index shall be published periodically in the 
Federal Register.

[61 FR 10860, Mar. 15, 1996]



  Subpart D--Informal and Formal Presentations of Views, Hearings and 
                             Investigations



Sec. 3282.151  Applicability and scope.

    (a) This subpart sets out procedures to be followed when an 
opportunity to present views provided for in the Act is requested by an 
appropriate party. Section 3282.152 provides for two types of procedures 
that may be followed, one informal and nonadversary, and one

[[Page 211]]

more formal and adversary. Section 3282.152 also sets out criteria to 
govern which type of procedure will be followed in particular cases.
    (b) The procedures of Sec. 3282.152 also apply to:
    (1) Proceedings held by the Secretary whenever the suspension or 
disqualification of a primary inspection agency, which has been granted 
final approval, is recommended under Sec. 3282.356 of these regulations, 
and
    (2) Resolution of disputes where an SAA or manufacturer disagrees 
with a determination of a DAPIA under Sec. 3282.361 that a manufactured 
home design does or does not conform to the standards or that a quality 
assurance manual is or is not adequate with a decision by an IPIA to red 
tag or not to red tag or to provide or not to provide a certification 
label for a manufactured home under Sec. 3282.362 when the IPIA believes 
that the manufactured home does or does not conform to the standards.
    (c) The procedures set out in Sec. 3282.152 shall also be followed 
whenever State Administrative Agencies hold Formal or Informal 
Presentations of Views under Sec. 3282.309.
    (d) To the extent that these regulations provide for Formal or 
Informal Presentations of Views for parties that would otherwise qualify 
for hearings under 24 CFR part 24, the procedures of 24 CFR part 24 
shall not be available and shall not apply.

[41 FR 19852, May 13, 1976, as amended at 51 FR 34467, Sept. 29, 1986; 
61 FR 10442, Mar. 13, 1996]



Sec. 3282.152  Procedures to present views and evidence.

    (a) Policy. All Formal and Informal Presentations of Views under 
this subpart shall be public, unless, for good cause, the Secretary 
determines it is in the public interest that a particular proceeding 
should be closed. If the Secretary determines that a proceeding should 
be closed, the Secretary shall state and make publicly available the 
basis for that determination.
    (b) Request. Upon receipt of a request to present views and evidence 
under the Act, the Secretary shall determine whether the proceeding will 
be a Formal or an Informal Presentation of Views, and shall issue a 
notice under paragraph (c) of this section.
    (c) Notice. When the Secretary decides to conduct a Formal or an 
Informal Presentation of Views under this section, the Secretary shall 
provide notice as follows:
    (1) Except where the need for swift resolution of the question 
involved prohibits it, notice of a proceeding hereunder shall be 
published in the Federal Register at least 10 days prior to the date of 
the proceeding. In any case, notice shall be provided to interested 
persons to the maximum extent practicable. Direct notice shall be sent 
by certified mail to the parties involved in the hearing.
    (2) The notice, whether published or mailed, shall include a 
statement of the time, place and nature of the proceeding; reference to 
the authority under which the proceeding will be held; a statement of 
the subject matter of the proceeding, the parties and issues involved; 
and a statement of the manner in which interested persons shall be 
afforded the opportunity to participate in the hearing.
    (3) The notice shall designate the official who shall be the 
presiding officer for the proceedings and to whom all inquiries should 
be directed concerning such proceedings.
    (4) The notice shall state whether the proceeding shall be held in 
accordance with the provisions of paragraph (f)--(Informal Presentation 
of Views) or paragraph (g)--(Formal Presentation of Views) of this 
section, except that when the Secretary makes the determinations 
provided for in sections 623 (d) and (f) of the Act, the requirements of 
paragraph (g) of this section shall apply. In determining whether the 
requirements of paragraph (f) or those of paragraph (g) of this section 
shall apply the Secretary shall consider the following:
    (i) The necessity for expeditious action;
    (ii) The risk of injury to affected members of the public;
    (iii) The economic consequences of the decisions to be rendered; and
    (iv) Such other factors as the Secretary determines are appropriate.
    (d) Department representative. If the Department is to be 
represented by

[[Page 212]]

Counsel, such representation shall be by a Department hearing attorney 
designated by the General Counsel.
    (e) Reporting and transcription. Oral proceedings shall be 
stenographically or mechanically reported and transcribed under the 
supervision of the presiding officer, unless the presiding officer and 
the parties otherwise agree, in which case a summary approved by the 
presiding officer shall be kept. The original transcript or summary 
shall be a part of the record and the sole official transcript, or 
summary. A copy of the transcript or summary shall be available to any 
person at a fee established by the Secretary, which fee the Secretary 
may waive in the public interest. Any information contained in the 
transcript or summary which would be exempt from required disclosure 
under Sec. 3282.54 of these regulations may be protected from disclosure 
if appropriate under that section upon a request for such protection 
under Sec. 3282.54(c).
    (f) Informal presentation of views. (1) An Informal Presentation of 
Views may be written or oral, and may include an opportunity for an oral 
presentation, whether requested or not, whenever the Secretary concludes 
that an oral presentation would be in the public interest, and so states 
in the notice. A presiding officer shall preside over all oral 
presentations held under this subsection. The purpose of any such 
presentation shall be to gather information to allow fully informed 
decision making. Informal Presentations of Views shall not be adversary 
proceedings. Oral presentations shall be conducted in an informal but 
orderly manner. The presiding officer shall have the duty and authority 
to conduct a fair proceeding, to take all necessary action to avoid 
delay, and to maintain order. In the absence of extraordinary 
circumstances, the presiding officer at an oral Informal Presentation of 
Views shall not require that testimony be given under an oath or 
affirmation, and shall not permit either cross-examination of witnesses 
by other witnesses or their representatives, or the presentation of 
rebuttal testimony by persons who have already testified. The rules of 
evidence prevailing in courts of law or equity shall not control the 
conduct of oral Informal Presentations of Views.
    (2) Within 10 days after an Informal Presentation of Views, the 
presiding officer shall refer to the Secretary all documentary evidence 
submitted, the transcript, if any, a summary of the issues involved and 
information presented in the Informal Presentation of Views and the 
presiding official's recommendations, with the rationale therefor. The 
presiding officer shall make any appropriate statements concerning the 
apparent veracity of witnesses or the validity of factual assertions 
which may be within the competence of the presiding officer. The 
Secretary shall issue a Final Determination concerning the matters at 
issue within 30 days of receipt of the presiding officer's summary. The 
Final Determination shall include:
    (i) A statement of findings, with specific references to principal 
supporting items of evidence in the record and conclusions, as well as 
the reasons or bases therefor, upon all of the material issues of fact, 
law, or discretion as presented on the record, and
    (ii) An appropriate order. Notice of the Final Determination shall 
be given in writing and transmitted by certified mail, return receipt 
requested, to all participants in the presentation of views. The Final 
Determination shall be conclusive, with respect to persons whose 
interests were represented.
    (g) Formal presentation of views. (1) A Formal Presentation of Views 
is an adversary proceeding and includes an opportunity for the oral 
presentation of evidence. All witnesses shall testify under oath or 
affirmation, which shall be administered by the presiding officer. 
Participants shall have the right to present such oral or documentary 
evidence and to conduct such cross-examination as the presiding officer 
determines is required for a full and true disclosure of facts. The 
presiding officer shall receive relevant and material evidence, rule 
upon offers of proof and exclude all irrelevant, immaterial or unduly 
repetitious evidence. However, the technicalities of the rules of 
evidence prevailing in courts of law or equity shall not control the 
conduct of a Formal Presentation of Views. The presiding officer shall 
take all necessary

[[Page 213]]

action to regulate the course of the Formal Presentation of Views to 
avoid delay and to maintain order. The presiding officer may exclude the 
attorney or witness from further participation in the particular Formal 
Presentation of Views and may render a decision adverse to the interests 
of the excluded party in his absence.
    (2) Decision. The presiding officer shall make and file an initial 
written decision on the matter in question. The decision shall be filed 
within 10 days after completion of the oral presentation. The decision 
shall include:
    (i) A statement of findings of fact, with specific references to 
principal supporting items of evidence in the record and conclusions, as 
well as the reasons or bases therefor, upon all of the material issues 
of law or discretion presented on the record, and
    (ii) An appropriate order.

The presiding officer's decision shall be final and shall constitute the 
Final Determination of the Secretary unless reversed or modified within 
30 days by the Secretary. Notice of the Final Determination shall be 
given in writing, and transmitted by registered or certified mail, 
return receipt requested, to all participants in the proceeding. The 
Final Determination shall be conclusive with respect to persons whose 
interests were represented.

[41 FR 19852, May 13, 1976, as amended at 51 FR 34467, Sept. 29, 1986]



Sec. 3282.153  Public participation in formal or informal presentation of views.

    (a) Any interested persons may participate, in writing, in any 
Formal or Informal Presentation of Views held under the provisions of 
paragraph (f) or (g) of Sec. 3282.152. The presiding officer shall, to 
the extent practicable, consider any such written materials.
    (b) Any interested person may participate in the oral portion of any 
Formal or Informal Presentation of Views held under paragraphs (f) and 
(g) of Sec. 3282.152 unless the presiding officer determines that 
participation should be limited or barred so as not unduly to prejudice 
the rights of the parties directly involved or unnecessarily to delay 
the proceedings.

[51 FR 34468, Sept. 29, 1986]



Sec. 3282.154  Petitions for formal or informal presentations of views, and requests for extraordinary interim relief.

    Any person entitled to a Formal or an Informal Presentation of Views 
under paragraph (f) or paragraph (g) of Sec. 3282.152 in order to 
address issues as provided for in Sec. 3282.151(a) may petition the 
Secretary to initiate such a Presentation of Views. The petition may be 
accompanied by a request that the Secretary provide appropriate interim 
relief pending the issuance of the final determination or decision. No 
interim relief will be granted unless there is a showing of 
extraordinary cause. Upon receipt of a petition, the Secretary shall 
grant the petition and issue the notice provided for in Sec. 3282.152(b) 
for Formal or Informal Presentation of Views, and may grant, deny or 
defer decision on any request for interim relief.

[51 FR 34468, Sept. 29, 1986]



Sec. 3282.155  Investigations.

    The procedures for investigations and investigational proceedings 
are set forth in part 3800 of this chapter.

[61 FR 10442, Mar. 13, 1996]



Sec. 3282.156  Petitions for investigations.

    (a) Any person may petition the Secretary in writing to open an 
investigation into whether noncompliances, defects, serious defects, or 
imminent safety hazards exist in manufactured homes. A petition shall 
include the reasons that the petitioner believes warrant an 
investigation, and it shall state any steps which have previously been 
taken to remedy the situation. The petition shall include all 
information known to the petitioner concerning the identity of 
manufactured homes which may be affected and where those manufactured 
homes were manufactured. The Secretary shall respond to petitions 
concerning alleged imminent safety hazards and serious defects within 60 
days and to petitions alleging the existence of defects or 
noncompliances within 120 days.

[[Page 214]]

    (b) Any person may petition the Secretary in writing to undertake an 
investigation for the purpose of determining whether a primary 
inspection agency should be disqualified. The petition shall set out all 
facts and information on which the petition is based and a detailed 
statement of why such information justifies disqualification. The 
Secretary shall consider such petitions when making determinations on 
final acceptance and continued acceptance. The Secretary shall respond 
to such petition within 120 days.



    Subpart E--Manufacturer Inspection and Certification Requirements



Sec. 3282.201  Scope and purpose.

    (a) This subpart sets out requirements which must be met by 
manufacturers of manufactured homes for sale to purchasers in the United 
States with respect to certification of manufactured home designs, 
inspection of designs, quality assurance programs, and manufactured home 
production, and certification of manufactured homes. Other than 
references and a general description of responsibilities, this subpart 
does not set out requirements with respect to remedial actions or 
reports which must be taken or filed under the Act and these 
regulations.
    (b) The purpose of this subpart is to require manufaacturers to 
participate in a system of design approvals and inspections which serve 
to assist them in assuring that manufactured homes which they 
manufacture will conform to Federal standards. Such approvals and 
inspections provide significant protection to the public by decreasing 
the number of manufactured homes with possible defects in them, and 
provide protection to manufacturers by reducing the number of instances 
in which costly remedial actions must be undertaken after manufactured 
homes are sold.



Sec. 3282.202  Primary inspection agency contracts.

    Each manufacturer shall enter into a contract or other agreement 
with as many Design Inspection Primary Inspection Agencies (DAPIAs) as 
it wishes and with enough Production Inspection Primary Inspection 
Agencies (IPIAs) to provide IPIA services for each manufacturing plant 
as set out in this subpart and in subpart H of this part. In return for 
the services provided by the DAPIAs and IPIAs, each manufacturer shall 
pay such reasonable fees as are agreed upon between the manufacturer and 
the primary inspection agency or, in the case of a State acting as an 
exclusive IPIA under Sec. 3282.3 such fees as may be established by the 
State.



Sec. 3282.203  DAPIA services.

    (a) Each manufacturer shall have each manufactured home design and 
each quality assurance manual which it intends to follow approved by a 
DAPIA under Sec. 3282.361. The manufacturer is free to choose which 
DAPIA will evaluate and approve its designs and quality assurance 
materials manufacturer may obtain design and quality assurance manual 
approval from a single DAPIA regardless of the number of plants in which 
the design and quality assurance manual will be followed. A manufacturer 
may also obtain approval for the same design and quality assurance 
manual from more than one DAPIA. The choice of which DAPIA or DAPIAs to 
employ is left to the manufacturer.
    (b) The manufacturer shall submit to the DAPIA such information as 
the DAPIA may require in order to carry out design approvals. This 
information shall, except where the manufacturer demonstrates to the 
DAPIA that it is not necessary, include the following:
    (1) Construction drawings and/or specifications showing structural 
details and layouts of frames, floors, walls and roofs, and chassis; 
material specifications, framing details, door locations, etc., for each 
floor plan proposed to be manufactured,
    (2) Structural analysis and calculations, test data and/or other 
accepted engineering practices used by the manufacturer to validate the 
design,
    (3) Complete heat loss calculations for each significant variation 
of home design,
    (4) Floor plans showing room arrangement and sizes, window sizes, 
emergency exists and locations, locations of smoke alarms, fixed 
appliance

[[Page 215]]

range hoods, and other standards related aspects of the manufactured 
home that can be shown on the floor plans,
    (5) Diagrams of the fuel supply system, potable water system and 
drain, waste and vent systems. The diagrams shall specify the types of 
materials used, types of fittings and methods of installing required 
safety equipment,
    (6) Wiring diagrams, including circuit allocation of electrical load 
and branch circuit calculations, a table of the branch circuit 
protection provided, the type of wiring used, and wiring methods,
    (7) Details showing the design of air supply and return systems,
    (8) Details of chassis construction, components, connections and 
running gear including rating capacities of tires,
    (9) A list of fixed and portable appliances furnished with the 
manufactured home, including type of appliance, rating of appliance, and 
applicable minimum and maximum performance ratings and/or energy 
requirements,
    (10) Detailed manufacturer installation instructions including 
specifications and procedures for the erection and hook-up of the home 
at its permanent location, and
    (11) Reports of all tests that were run to validate the conformance 
of the design to the standards.
    (c) The manufacturer shall submit to the DAPIA such information as 
the DAPIA may require in order to carry out quality assurance manual 
approvals. At a minimum, this information shall include the quality 
assurance manual for which approval is sought. That manual shall include 
the manufacturer's quality assurance program, an organizational chart 
showing the accountability, by position, of the manufacturer's quality 
control personnel, a description of production tests and test equipment 
required for compliance with the standards, a station-by-station 
description of the manufacturing process, a list of quality control 
inspections required by the manufacturer at each station, and 
identification by title of each person who will be held accountable for 
each quality control inspection.
    (d) Manufacturers may be required to furnish supplementary 
information to the DAPIA if the design information or the quality 
assurance manual is not complete or if any information is not in 
accordance with accepted engineering practice.
    (e) When a manufacturer wishes to make a change in an approved 
design or quality assurance manual, the manufacturer shall obtain the 
approval of the DAPIA which approved the design or manual prior to 
production for sale. The procedures for obtaining such approval are set 
out in Sec. 3282.361.
    (f) The information to be submitted to a DAPIA under Sec. 3282.203 
(b) and (c) may be prepared by the manufacturer's staff or outside 
consultants, including other DAPIAs. However, a DAPIA may not perform 
design or quality assurance manual approvals for any manufacturer whose 
design or manual has been created or prepared in whole or in part by 
members of the DAPIA's organization or of any affiliated organization.
    (g) Each manufacturer shall maintain a copy of the drawings, 
specifications, and sketches from each approved design received from a 
DAPIA under Sec. 3282.361(b)(4) in each plant in which manufactured 
homes are being produced to the design. Each manufacturer shall also 
maintain in each manufacturing plant a copy of the approved quality 
assurance manual received from a DAPIA under Sec. 3282.361(c)(3) that is 
being followed in the plant. These materials shall be kept current and 
shall be readily accessible for use by the Secretary or other parties 
acting under these regulations.

[41 FR 19852, May 13, 1976, as amended at 67 FR 12818, Mar. 19, 2002]



Sec. 3282.204  IPIA services.

    (a) Each manufacturer shall obtain the services of an IPIA as set 
out in Sec. 3282.362 for each manufacturing plant operated by the 
manufacturer.
    (b) The manufacturer shall make available to the IPIA operating in 
each of its plants a copy of the drawings and specifications from the 
DAPIA approved design and the quality assurance manual for that plant, 
and the IPIA shall perform an initial factory inspection as set out in 
Sec. 3282.362(b). If

[[Page 216]]

the IPIA issues a deviation report after the initial factory inspection, 
the manufacturer shall make any corrections or adjustments which are 
necessary to conform with the DAPIA approved designs and manuals. After 
the corrections required by the deviation report are completed to the 
satisfaction of the IPIA, the IPIA shall issue the certification report 
as described in Sec. 3282.362(b)(2). In certain instances a DAPIA may 
provide the certification report. (See Sec. 3282.362) The manufacturer 
shall maintain a current copy of each certification report in the plant 
to which the certification report relates.
    (c) After the certification report has been signed by the IPIA, the 
manufacturer shall obtain labels from the IPIA and shall affix them to 
completed manufactured homes as set out in Sec. 3282.362(c)(2). During 
the initial factory certification, the IPIA may apply labels to 
manufactured homes which it knows to be in compliance with the standards 
if it is performing complete inspections of all phases of production of 
each manufactured home and the manufacturer authorizes it to apply 
labels.
    (d) During the course of production the manufacturer shall maintain 
a complete set of approved drawings, specifications, and approved design 
changes for the use of the IPIA's inspector and always available to that 
inspector when in the manufacturing plant.
    (e) If, during the course of production, an IPIA finds that a 
failure to conform to a standard exists in a manufactured home in 
production, the manufacturer shall correct the failure to confirm in any 
manufactured homes still in the factory and held by distributors or 
dealers and shall carry out remedial actions under Secs. 3282.404 and 
3282.405 with respect to any other manufactured homes which may contain 
the same failure to conform.



Sec. 3282.205  Certification requirements.

    (a) Every manufacturer shall make a record of the serial number of 
each manufactured home produced, and a duly authorized representative of 
the manufacturer shall certify that each manufactured home has been 
constructed in accordance with the Federal standards. The manufacturer 
shall furnish a copy of that certification to the IPIA for the purpose 
of determining which manufactured homes are subject to the notification 
and correction requirements of subpart I of this part.
    (b) Every manufacturer of manufactured homes shall certify on the 
data plate as set out in Sec. 3280.5 of chapter XX of 24 CFR and 
Sec. 3282.362(c)(3) that the manufactured home is designed to comply 
with the Federal manufactured home construction and safety standards in 
force at the time of manufacture in addition to providing other 
information required to be completed on the data plate.
    (c) Every manufacturer of manufactured homes shall furnish to the 
dealer or distributor of each of its manufactured homes a certification 
that such manufactured home, to the best of the manufacturer's knowledge 
and belief, conforms to all applicable Federal construction and safety 
standards. This certification shall be in the form of the label provided 
by the IPIA under Sec. 3282.362(c)(2). The label shall be affixed only 
at the end of the last stage of production of the manufactured home.
    (d) The manufacturer shall apply a label required or allowed by the 
regulations in this part only to a manufactured home that the 
manufacturer knows by its inspections to be in compliance with the 
standards.

[41 FR 19852, May 13, 1976, as amended at 41 FR 24970, June 21, 1976; 61 
FR 10860, Mar. 15, 1996]



Sec. 3282.206  Disagreement with IPIA or DAPIA.

    Whenever a manufacturer disagrees with a finding by a DAPIA or an 
IPIA acting in accordance with subpart H of this part, the manufacturer 
may request a Formal or Informal Presentation of Views as provided in 
Sec. 3282.152. The manufacturer shall not, however, produce manufactured 
homes pursuant to designs which have not been approved by a DAPIA or 
produce manufactured homes which the relevant IPIA believes not to 
conform to the standards unless and until:

[[Page 217]]

    (a) The Secretary determines that the manufacturer is correct in 
believing the design of the manufactured home conforms to the standards; 
or
    (b) Extraordinary interim relief is granted under Sec. 3282.154; or
    (c) The DAPIA or IPIA otherwise resolves the disagreement.

[41 FR 19852, May 13, 1976, as amended at 51 FR 34468, Sept. 29, 1986; 
61 FR 10860, Mar. 15, 1996]



Sec. 3282.207  Manufactured home consumer manual requirements.

    (a) The manufacturer shall provide a consumer manual with each 
manufactured home that enters the first stage of production on or after 
July 31, 1977, pursuant to section 617 of the National Manufactured 
Housing Construction and Safety Standards Act, 42 U.S.C. 5416.
    (b) The manufacturer shall provide the consumer manual by placing a 
manual in each such manufactured home before the manufactured home 
leaves the manufacturing plant. The manual shall be placed in a 
conspicuous location in a manner likely to assure that it is not removed 
until the purchaser removes it.
    (c) If a manufacturer is informed that a purchaser did not receive a 
consumer manual, the manufacturer shall provide the appropriate manual 
to the purchaser within 30 days of being so informed.
    (d) No dealer or distributor may interfere with the distribution of 
the consumer manual. When necessary, the dealer or distributor shall 
take any appropriate steps to assure that the purchaser receives a 
consumer manual from the manufacturer.
    (e) If a consumer manual or a change or revision to a manual does 
not substantially comply with the guidelines issued by HUD, the 
manufacturer shall cease distribution of the consumer manual and shall 
provide a corrected manual for each manufactured home for which the 
inadequate or incorrect manual or revision was provided. A manual 
substantially complies with the guidelines if it presents current 
material on each of the subjects covered in the guidelines in sufficient 
detail to inform consumers about the operation, maintenance, and repair 
of the manufactured home. An updated copy of guidelines published in the 
Federal Register on March 15, 1996, can be obtained by contacting the 
Office of Manufactured Housing and Regulatory Functions, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Washington, DC, 
20410; the Information Center, Department of Housing and Urban 
Development, Room 1202, 451 Seventh Street, SW., Washington, DC, 20410; 
or any HUD Area or State Office.

[61 FR 10860, Mar. 15, 1996]



Sec. 3282.208  Remedial actions--general description.

    (a) Notification. A manufacturer may be required to provide formal 
notice to manufactured home owners and dealers, as set out in subpart I 
of this part, if the manufacturer, the Secretary, or a State 
Administrative Agency determines under that subpart that an imminent 
safety hazard, serious defect, defect, or noncompliance exists or may 
exist in a manufactured home produced by that manufacturer.
    (b) Correction. A manufacturer may be required to correct imminent 
safety hazards and serious defects which the manufacturer or the 
Secretary determines under subpart I exist in manufactured homes 
produced by the manufacturer. This correction would be carried out in 
addition to the sending of formal notice as described in paragraph (a) 
of this section.
    (c) Cooperation. The manufacturer shall be responsible for working 
with the DAPIA, IPIA, any SAA, the Secretary, and the Secretary's agent 
as necessary in the course of carrying out investigations and remedial 
actions under subpart I.
    (d) Avoidance of formalities. The provisions for notification and 
required correction outlined in paragraphs (a) and (b) of this section 
and described more fully in subpart I may be waived or avoided in 
certain circumstances under that subpart.



Sec. 3282.209  Report requirements.

    The manufacturer shall submit reports to the PIAs, SAAs, and the 
Secretary as required by subpart L of these regulations.

[[Page 218]]



Sec. 3282.210  Payment of monitoring fee.

    (a) Each manufacturer shall pay the monitoring fee established under 
Secs. 3282.307 and 3282.454 for each transportable section of each 
manufactured housing unit that it manufactures under the Federal 
standards.
    (b) The monitoring fee shall be paid in the form of a check made 
payable to the Secretary or the Secretary's agent. The manufacturer 
shall give to the IPIA (or to any other person or agency designated in 
writing by the Secretary) the required check in the amount of the number 
of labels, as required by Sec. 3282.365, multiplied by the amount of the 
fee per transportable section of each manufactured housing unit.

[50 FR 28398, July 12, 1985]



Sec. 3282.211  Record of purchasers.

    (a) Information requirements for purchasers. (1) Every manufacturer 
of manufactured homes shall, for each manufactured home manufactured 
under the Federal standards, provide with the manufactured home a 
booklet containing at least 3 detachable cards as described in paragraph 
(a)(2) of this section. On the front of the booklet, in bold faced type, 
shall be printed the following language:

    ``Keep this booklet with your manufactured home. Title VI of the 
Housing and Community Development Act of 1974 provides you with 
protection against certain construction and safety hazards in your 
manufactured home. To help assure your protection, the manufacturer of 
your manufactured home needs the information which these cards, when 
completed and mailed, will supply. If you bought your home from a 
dealer, please be sure that your dealer has completed and mailed a card 
for you. If you acquired your home from someone who is not a dealer, you 
should promptly fill out and send a card to the manufacturer. It is 
important that you keep this booklet and give it to any person who buys 
the manufactured home from you.''

    (2) The detachable cards shall contain blanks for the following 
information:
    (i) Name and address of the dealer or other person selling the 
manufactured home to the purchaser;
    (ii) Name and complete mailing address of the manufactured home 
purchaser;
    (iii) Address where the manufactured home will be located, if not 
the same as item (a)(2)(ii) of this section.
    (iv) Date of sale to the purchaser;
    (v) Month, day and year of manufacture;
    (vi) Identification number of the manufactured home;
    (vii) Model and/or type designation of the manufactured home as 
provided by the manufacturer; and
    (viii) A designation of the zones for which the manufactured home is 
equipped, as set forth in Sec. 3280.305 in this title.

Additionally, the cards shall have the name and address of the 
manufacturer printed clearly on the reverse side and shall contain 
adequate postage or business reply privileges to ensure return to the 
manufacturer. The manufacturer shall have the responsibility for filing 
in the blanks on the cards for paragraphs (a)(2) (v), (vi), (vii), and 
(viii) of this section.
    (3) The manufacturer shall maintain all cards received so that the 
manufacturer has a readily accessible record of the current purchaser or 
owner and the current address of all manufactured homes manufactured by 
it for which a card has been received.



           Subpart F--Dealer and Distributor Responsibilities



Sec. 3282.251  Scope and purpose.

    (a) This subpart sets out the responsibilities which shall be met by 
distributors and dealers with respect to manufactured homes manufactured 
after the effective date of the standards for sale to purchasers in the 
United States. It prohibits the sale, lease, or offer for sale or lease 
of manufactured homes known by the distributor or dealer not to be in 
conformance with the standards, and it includes responsibilities for 
maintaining certain records and assisting in the gathering of certain 
information.
    (b) The purpose of this subpart is to inform distributors and 
dealers when they may sell manufactured homes, when they are prohibited 
from selling manufactured homes, and what they may do in order to 
prepare a manufactured home for sale if it is not in conformance with 
the standards.

[[Page 219]]

    (c) For purposes of this part, any manufacturer or distributor who 
sells, leases, or offers for sale or lease a manufactured home to a 
purchaser shall be a dealer for purposes of that transaction.



Sec. 3282.252  Prohibition of sale.

    (a) No distributor or dealer shall make use of any means of 
transportation affecting interstate or foreign commerce or the mails to 
sell, lease, or offer for sale or lease in the United States any 
manufactured home manufactured on or after the effective date of an 
applicable standard unless:
    (1) There is affixed to the manufactured home a label certifying 
that the manufactured home conforms to applicable standards as required 
by Sec. 3282.205(c), and
    (2) The distributor or dealer, acting as a reasonable distributor or 
dealer, does not know that the manufactured home does not conform to any 
applicable standards.
    (b) This prohibition applies to any affected manufactured homes 
until the completion of the entire sales transaction. A sales 
transaction with a purchaser is considered completed when all the goods 
and services that the dealer agreed to provide at the time the contract 
was entered into have been provided. Completion of a retail sale will be 
at the time the dealer completes set-up of the manufactured home if the 
dealer has agreed to provide the set-up, or at the time the dealer 
delivers the home to a transporter, if the dealer has not agreed to 
transport or set up the manufactured home, or to the site if the dealer 
has not agreed to provide set-up.
    (c) This prohibition of sale does not apply to manufactured homes 
which are placed in production prior to the effective date of the 
standards, and it does not apply to ``used'' manufactured homes which 
are being sold or offered for sale after the first purchase in good 
faith for purposes other than the resale.



Sec. 3282.253  Removal of prohibition of sale.

    (a) If a distributor or dealer has a manufactured home in its 
possession or a manufactured home with respect to which the sales 
transaction has not been completed, and the distributor or dealer, 
acting as a reasonable distributor or dealer, knows as a result of 
notification by the manufacturer or otherwise that the manufactured home 
contains a failure to conform or imminent safety hazard, the distributor 
or dealer may seek the remedies available to him under Sec. 3282.415.
    (b) When, in accordance with Sec. 3282.415, a manufacturer corrects 
a failure to conform to the applicable standard or an imminent safety 
hazard, the distributor or dealer, acting as a reasonable distributor or 
dealer, may accept the remedies provided by the manufacturer as having 
corrected the failure to conform or imminent safety hazard. The 
distributor or dealer, therefore, may sell, lease, or offer for sale or 
lease any manufactured home so corrected by the manufacturer.
    (c) When a distributor or dealer is authorized by a manufacturer to 
correct a failure to conform to the applicable standard or an imminent 
safety hazard and completes the correction in accordance with the 
manufacturer's instructions, the distributor or dealer may sell, or 
lease or offer for sale or lease the manufactured home in question, 
provided that the distributor or dealer, acting as a reasonable 
distributor or dealer knows that the manufactured home conforms to the 
standards. A distributor or dealer and a manufacturer, at the 
manufacturer's option, may agree in advance that the distributor or 
dealer is authorized to make such corrections as the manufacturer 
believes are within the expertise of the dealer.
    (d) If the corrections made under paragraphs (b) and (c) of this 
section do not bring the manufactured home into conformance or correct 
the imminent safety hazard, the provisions of Sec. 3282.415 will 
continue in effect prior to completion of the sales transaction.



Sec. 3282.254  Distributor and dealer alterations.

    (a) If a distributor or dealer alters a manufactured home in such a 
way as to create an imminent safety hazard or to create a condition 
which causes a failure to conform with applicable Federal

[[Page 220]]

standards, the manufactured home affected may not be sold, leased, or 
offered for sale or lease.
    (b) After correction by the distributor or dealer of the failure to 
conform or imminent safety hazard, the corrected manufactured home may 
be sold, leased, or offered for sale or lease.
    (c) Distributors and dealers shall maintain complete records of all 
alterations made under paragraphs (a) and (b) of this section.



Sec. 3282.255  Completion of information card.

    (a) Whenever a distributor or dealer sells a manufactured home 
subject to the standards to a purchaser, the distributor or dealer shall 
fill out the card with information provided by the purchaser and shall 
send the card to the manufacturer. (See Sec. 3282.211.)
    (b) Whenever a distributor or dealer sells a manufactured home to an 
owner which was originally manufactured under the standards, the 
distributor or dealer shall similarly use one of the detachable cards 
which was originally provided with the manufactured home. If such a card 
is no longer available, the distributor or dealer shall obtain the 
information which the card would require and send it to the manufacturer 
of the manufactured home in an appropriate format.



Sec. 3282.256  Distributor or dealer complaint handling.

    (a) When a distributor or dealer believes that a manufactured home 
in its possession which it has not yet sold to a purchaser contains an 
imminent safety hazard, serious defect, defect, or noncompliance, the 
distributor or dealer shall refer the matter to the manufacturer for 
remedial action under Sec. 3282.415. If the distributor or dealer is not 
satisfied with the action taken by the manufacturer, it may refer the 
matter to the SAA in the state in which the manufactured home is 
located, or to the Secretary if there is no such SAA.
    (b) Where a distributor or dealer receives a consumer complaint or 
other information concerning a manufactured home sold by the distributor 
or dealer, indicating the possible existence of an imminent safety 
hazard, serious defect, defect, or noncompliance in the manufactured 
home, the distributor or dealer shall refer the matter to the 
manufacturer.



                Subpart G--State Administrative Agencies



Sec. 3282.301  General--scope.

    This subpart sets out procedures to be followed and requirements to 
be met by States which wish to participate as State Administrative 
Agencies (SAA) under the Federal standards enforcement program. 
Requirements relating to States which wish to participate as primary 
inspection agencies under the Federal standards enforcement program are 
set out in subpart H of this part. Requirements which States must meet 
in order to receive full or conditional approval as SAAs and the 
responsibilities of such agencies are set out in Sec. 3282.302. 
Reporting requirements for approved and conditionally approved SAAs are 
set out in subpart L.



Sec. 3282.302  State plan.

    A State wishing to qualify and act as a SAA under this subpart shall 
make a State Plan Application under this section. The State Plan 
Application shall be made to the Director, Manufactured Housing 
Standards Division, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410, and shall include:
    (a) An original and one copy of a cover sheet which shall show the 
following:
    (1) The name and address of the State agency designated as the sole 
agency responsible for administering the plan throughout the State,
    (2) The name of the administrator in charge of the agency,
    (3) The name, title, address, and phone number of the person 
responsible for handling consumer complaints concerning standards 
related problems in manufactured homes under subpart I of this part,
    (4) A list of personnel who will carry out the State plan,
    (5) The number of manufactured home manufacturing plants presently 
operating in the State,

[[Page 221]]

    (6) The estimated total number of manufactured homes manufactured in 
the State per year,
    (7) The estimated total number of manufactured homes set up in the 
State per year, and
    (8) A certification signed by the administrator in charge of the 
designated State agency stating that, if it is approved by the 
Secretary, the State plan will be carried out in full, and that the 
regulations issued under the Act shall be followed,
    (b) An original and one copy of appropriate materials which:
    (1) Demonstrate how the designated State agency shall ensure 
effective handling of consumer complaints and other information referred 
to it that relate to noncompliances, defects, serious defects or 
imminent safety hazards as set out in subpart I of this part, including 
the holding of Formal and Informal Presentations of Views and the 
fulfilling of all other responsibilities of SAAs as set out in this 
subpart G,
    (2) Provide that personnel of the designated agency shall, under 
State law or as agents of HUD, have the right at any reasonable time to 
enter and inspect all factories, warehouses, or establishments in the 
State in which manufactured homes are manufactured,
    (3) Provide for the imposition under State authority of civil and 
criminal penalties which are identical to those set out in section 611 
of the Act, 42 U.S.C. 5410 except that civil penalties shall be payable 
to the State rather than to the United States,
    (4) Provide for the notification and correction procedures under 
subpart I of this part where the State Administrative Agency is to act 
under that subpart by providing for and requiring approval by the State 
Administrative Agency of the plan for notification and correction 
described in Sec. 3282.410, including approval of the number of units 
that may be affected and the proposed repairs, and by providing for 
approval of corrective actions where appropriate under subpart I,
    (5) Provide for oversight by the SAA of:
    (i) Remedial actions carried out by manufacturers for which the SAA 
approved the plan for notification or correction under Sec. 3282.405, or 
Sec. 3282.407, or for which the SAA has waived formal notification under 
Sec. 3282.405 or Sec. 3282.407, and
    (ii) A manufacturer's handling of consumer complaints and other 
information under Sec. 3282.404 as to plants located within the State,
    (6) Provide for the setting of monitoring inspection fees in 
accordance with guidelines established by the Secretary and provide for 
participation in the fee distribution system set out in Sec. 3282.307.
    (7) Contain satisfactory assurances in whatever form is appropriate 
under State law that the designated agency has or will have the legal 
authority necessary to carry out the State plan as submitted for full or 
conditional approval,
    (8) Contain satisfactory assurances that the designated agency has 
or will have, in its own staff or provided by other agencies of the 
state or otherwise, the personnel, qualified by education or experience 
necessary to carry out the State plan,
    (9) Include the resumes of administrative personnel in policy making 
positions and of all inspectors and engineers to be utilized by the 
designated agency in carrying out the State plan,
    (10) Include a certification that none of the personnel who may be 
involved in carrying out the State plan in any way are subject to any 
conflict of interest of the type discussed in Sec. 3282.359 or 
otherwise, except that members of councils, committees, or similar 
bodies providing advice to the designated agency are not subject to the 
requirement,
    (11) Include an estimate of the cost to the State of carrying out 
all activities called for in the State plan, under this section and 
Sec. 3282.303, which estimate shall be broken down by particular 
function and indicate the correlation between the estimate and the 
number of manufactured homes manufactured in the State and the number of 
manufactured homes imported into the State, and the relationship of 
these factors to any fees currently charged and any fees charged during 
the preceding two calendar years. A description of all current and past 
State activities with respect to manufactured

[[Page 222]]

homes shall be included with this estimate.
    (12) Give satisfactory assurances that the State shall devote 
adequate funds to carrying out its State plan,
    (13) Indicate that State Law requires manufacturers, distributors, 
and dealers in the State to make reports pursuant to section 614 of the 
Act 42 U.S.C. 5413 and this chapter of these regulations in the same 
manner and to the same extent as if the State plan were not in effect,
    (14) Provide that the designated agency shall make reports to the 
Secretary as required by subpart L of this part in such form and 
containing such information as the Secretary shall from time to time 
require,
    (c) A state plan may be granted conditional approval if all of the 
requirements of Sec. 3282.302 (a) and (b) are met except paragraphs 
(b)(2), (b)(3), (b)(6) or (b)(13). When conditional approval is given, 
the state shall not be considered approved under section 623 of the Act, 
42 U.S.C. 5422, but it will participate in all phases of the program as 
called for in its State plan. Conditional approval shall last for a 
maximum of five years, by which time all requirements shall be met for 
full approval, or conditional approval shall lapse. However, the 
Secretary may for good cause grant an extension of conditional approval 
upon petition by the SAA.
    (d) If a State wishes to discontinue participation in the Federal 
enforcement program as an SAA, it shall provide the Secretary with a 
minimum of 90 days notice.
    (e) Exclusive IPIA status. (1) A State that wishes to act as an 
exclusive IPIA under Sec. 3282.352 shall so indicate in its State Plan 
and shall include in the information provided under paragraph (b)(11) of 
this section the fee schedule for the State's activities as an IPIA and 
the relationship between the proposed fees and the other information 
provided under paragraph (b)(11) of this section. If the Secretary 
determines that the fees to be charged by a State acting as an IPIA are 
unreasonable, the Secretary shall not grant the State status as an 
exclusive IPIA.
    (2) The State shall also demonstrate in its State Plan that it has 
the present capability to act as an IPIA for all plants operating in the 
State.

[41 FR 19852, May 13, 1976, as amended at 47 FR 5888, Feb. 9, 1982; 51 
FR 34468, Sept. 29, 1986; 61 FR 10860, Mar. 15, 1996]



Sec. 3282.303  State plan--suggested provisions.

    The following are not required to be included in the State plan, but 
they are urged as necessary to provide full consumer protection and 
assurances of manufactured home safety:
    (a) Provision for monitoring of dealers' lots within the State for 
transit damage, seal tampering, and dealer performance generally,
    (b) Provision of approvals of all alterations made to certified 
manufactured homes by dealer in the State. Under this program, the State 
would assure that alterations did not result in the failure of the 
manufactured home to comply with the standards.
    (c) Provision for monitoring of the installation of manufactured 
homes set up in the State to assure that the homes are properly 
installed and, where necessary, tied down,
    (d) Provision for inspection of used manufactured homes and 
requirements under State authority that used manufactured homes meet a 
minimal level of safety and durability at the time of sale, and,
    (e) Provision for regulation of manufactured home transportation 
over the road to the extent that such regulation is not preempted by 
Federal authority.



Sec. 3282.304  Inadequate State plan.

    If the Secretary determines that a State plan submitted under this 
subpart is not adequate, the designated State agency shall be informed 
of the additions and corrections required for approval. A revised State 
plan shall be submitted within 30 days of receipt of such determination. 
If the revised State plan 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 State plan as submitted, the Secretary shall 
notify the designated State agency that the State plan is not approved 
and that it has a right to a hearing on the disapproval in accordance 
with subpart D of this part.

[[Page 223]]



Sec. 3282.305  State plan approval.

    The Secretary's approval or conditional approval of a State plan 
Application shall qualify that State to perform the functions for which 
it has been approved.



Sec. 3282.306  Withdrawal of State approval.

    The Secretary shall, on the basis of reports submitted by the State, 
and on the basis of HUD monitoring, make a continuing evaluation of the 
manner in which each State is carrying out its State plan and shall 
submit the reports of such evaluation to the appropriate committees of 
the Congress. Whenever the Secretary finds, after affording due notice 
and opportunity for a hearing in accordance with subpart D of this part, 
that in the administration of the State program there is a failure to 
comply substantially with any provision of the State plan or that the 
State plan has become inadequate, the Secretary shall notify the State 
of withdrawal of approval or conditional approval of the State program. 
The State program shall cease to be in effect at such time as the 
Secretary may establish.



Sec. 3282.307  Monitoring inspection fee establishment and distribution.

    (a) Each approved State shall establish a monitoring inspection fee 
in an amount required by the Secretary. This fee shall be an amount paid 
by each manufactured home manufacturer in the State for each 
transportable section of each manufactured housing unit produced by the 
manufacturer in that State. In non-approved and conditionally-approved 
States, the fee shall be set by the Secretary.
    (b) The monitoring inspection fee shall be paid by the manufacturer 
to the Secretary or to the Secretary's Agent, who shall distribute a 
portion of the fees collected from all manufactured home manufacturers 
among the approved and conditionally-approved States in accordance with 
an agreement between the Secretary and the States and based upon the 
following formula:
    (1) $9.00 of the monitoring inspection fee collected for each 
transportable section of each new manufactured housing unit that, after 
leaving the manufacturing plant, is first located on the premises of a 
dealer, distributor, or purchaser in that State; plus
    (2) $2.50 of the monitoring inspection fee collected for each 
transportable section of each new manufactured housing unit produced in 
a manufacturing plant in that State.
    (c) A portion of the monitoring inspection fee collected also shall 
be distributed by the Secretary or the Secretary's Agent based on the 
extent of participation of the State in the Joint Team Monitoring 
Program set out in Sec. 3282.308.
    (d) To assure that a State devotes adequate funds to carry out its 
State Plan, a State may impose an additional reasonable inspection fee 
to offset expenses incurred by that State in conducting inspections. 
Such fee shall not exceed that amount which is the difference between 
the amount of funds distributed to the State as provided in paragraph 
(b) of this section and the amount necessary to cover the costs of 
inspections. Such fee shall be part of the State Plan pursuant to 
Sec. 3282.302(b) (11) and (12) and shall be subject to the approval of 
the Secretary pursuant to Sec. 3282.305.
    (e) The Secretary may establish by notice in the Federal Register a 
monitoring inspection fee which is to be paid by manufacturers for each 
transportable section of each manufactured housing unit manufactured in 
nonapproved and conditionally approved States as described in 
Sec. 3282.210. To determine the amount of the inspection fee to be paid 
for each transportable section of each manufactured home, the Secretary 
shall divide the (estimated) number of transportable sections of 
manufactured homes (based on recent industry production figures) into 
the anticipated aggregate cost of conducting the inspection program in 
the foreseeable feature. The time period selected for projecting the 
Department's inspection-related costs and number of transportable 
sections need not always be the same, but must be for a period of 
sufficient duration to provide for access to reasonable underlying data. 
To determine the aggregate cost of conducting the inspection program, 
the Secretary shall calculate the sum necessary to support:

[[Page 224]]

    (1) Inspection-related activities of State Administrative Agencies;
    (2) Inspection-related activities performed by the Department of 
Housing and Urban Development;
    (3) Inspection-related activities performed by monitoring inspection 
contractors;
    (4) Miscellaneous activities involving the performance of 
inspection-related activities by the Department, including on-site 
inspections on an ad hoc basis; and
    (5) Maintenance of adequate funds to offset short-term fluctuations 
in costs that do not warrant revising the fee under the authority of 
this section.
    (f) The Secretary may at any time revise the amount of the fees 
established under paragraph (a) or (e) of this section by placing a 
notice of the amount of the revised fee in the Federal Register.

[50 FR 28398, July 12, 1985, as amended at 56 FR 65186, Dec. 16, 1991]



Sec. 3282.308  State participation in monitoring of primary inspection agencies.

    (a) An SAA may provide personnel to participate in joint team 
monitoring of primary inspection agencies as set out in subpart J. If an 
SAA wishes to do so, it must include in its State plan a list of what 
personnel would be supplied for the teams, their qualifications, and how 
many person-years the State would supply. All personnel will be subject 
to approval by the Secretary or the Secretary's agent. A person-year is 
2,080 hours of work.
    (b) If an SAA wishes to monitor the performance of primary 
inspection agencies acting within the State, it must include in its 
State plan a description of how extensively, how often, and by whom this 
will be carried out. This monitoring shall be coordinated by the 
Secretary, or the Secretary's agent with monitoring carried out by joint 
monitoring teams, and in no event shall an SAA provide monitoring where 
the State is also acting as a primary inspection agency.



Sec. 3282.309  Formal and informal presentations of views held by SAAs.

    (a) When an SAA is the appropriate agency to hold a Formal or 
Informal Presentation of Views under Sec. 3282.407 of subpart I, the SAA 
shall follow the procedures set out in Secs. 3282.152 and 3282.153, with 
the SAA acting as the Secretary otherwise would under that section. 
Where Sec. 3282.152 requires publication of notice in the Federal 
Register, the SAA shall, to the maximum extent possible, provide 
equivalent notice throughout the State by publication in the newspaper 
or newspapers having State-wide coverage or otherwise. The determination 
of whether to provide an Informal Presentation of Views under 
Sec. 3282.152(f), or a Formal Presentation of Views under 
Sec. 3282.152(g), is left to the SAA.
    (b) Notwithstanding the provisions of Sec. 3282.152(f)(2) and (g)(2) 
relating to the conclusive effect of a final determination, any party, 
in a proceeding held at an SAA under this section, including 
specifically the owners of affected manufactured homes, States in which 
affected manufactured homes are located, consumer groups representing 
affected owners and manufacturers (but limited to parties with similar 
substantial interest) may appeal to the Secretary in writing any Final 
Determination by an SAA which is adverse to the interest of that party. 
This appeal on the record shall be made within 30 days of the date on 
which the Final Determination was made by the SAA.

[41 FR 19852, May 13, 1976, as amended at 51 FR 34468, Sept. 29, 1986]



                 Subpart H--Primary Inspection Agencies



Sec. 3282.351  General.

    (a) This subpart sets out the requirements which must be met by 
States or private organizations which wish to qualify as primary 
inspection agencies under these regulations. It also sets out the 
various functions which will be carried out by primary inspection 
agencies.
    (b) There are four basic functions which are performed by primary 
inspection agencies:
    (1) Approval of the manufacturer's manufactured home design to 
assure that it is in compliance with the standard;

[[Page 225]]

    (2) Approval of the manufacturer's quality control program to assure 
that it is compatible with the design;
    (3) Approval of the manufacturer's plant facility and manufacturing 
process to assure that the manufacturer can perform its approved quality 
control program and can produce manufactured homes in conformance with 
its approved design, and
    (4) Performance of ongoing inspections of the manufacturing process 
in each manufacturing plant to assure that the manufacturer is 
continuing to perform its approved quality control program and, with 
respect to those aspects of manufactured homes inspected, is continuing 
to produce manufactured homes in performance with its approved designs 
and in conformance with the standards (see Sec. 3282.362(c)(1)).
    (c) There are two types of primary inspection agencies which perform 
these functions:
    (1) Those which approve designs and quality control programs (Design 
Approval Primary Inspection Agencies--DAPIAs) and
    (2) Those which approve plants and perform ongoing inspections in 
the manufacturing plants (Production Inspection Primary Inspection 
Agencies--IPIAs).
    (d) States and private organizations whose submissions under this 
subpart are acceptable shall be granted provisional acceptance. Final 
acceptance shall be conditioned upon adequate performance, which will be 
determined through monitoring of the actions of the primary inspection 
agencies. Monitoring of all primary inspection agencies shall be carried 
out as set out in subpart J. HUD accepted agencies can perform DAPIA 
functions for any manufacturer in any State and IPIA functions in any 
State except those in which the State has been approved to act as the 
exclusive IPIA under Sec. 3282.352.
    (e) Primary inspection agencies approved under this subpart may 
contract with manufactured home manufacturers (see Sec. 3282.202) to 
provide the services set out in this subpart. Any PIA which charges fees 
which are excessive in relation to the services rendered shall be 
subject to disqualification under Sec. 3282.356.



Sec. 3282.352  State exclusive IPIA functions.

    (a) Any State which has an approved State Administrative Agency may, 
if accepted as an IPIA, act as the exclusive IPIA within the State. A 
State which acts as an IPIA but is not approved as an SAA may not act as 
the exclusive IPIA in the State. A State which acts as an exclusive IPIA 
shall be staffed to provide IPIA services to all manufacturers within 
the state and may not charge unreasonable fees for those services.
    (b) States which wish to act as exclusive IPIAs shall apply for 
approval to do so in their State plan applications. They shall specify 
the fees they will charge for IPIA services and shall submit proposed 
fee revisions to the Secretary prior to instituting any change in fees. 
If at any time the Secretary finds that those fees are not commensurate 
with the fees generally being charged for similar services, the 
Secretary will withhold or revoke approval to act as an exclusive IPIA. 
States acting as DAPIAs and also as exclusive IPIAs shall establish 
separate fees for the two functions and shall specify what additional 
services (such as approval of design changes and full time inspections) 
these fees cover. As provided in Sec. 3282.302(b)(11), each State shall 
submit fee schedules for its activities and, where appropriate, the fees 
presently charged for DAPIA and IPIA services, and any fees charged for 
DAPIA and IPIA services during the preceding two calendar years.
    (c) A State's status as an exclusive IPIA shall commence upon 
approval of the State Plan Application and acceptance of the State's 
submission under Sec. 3282.355. Where a private organization accepted or 
provisionally accepted as an IPIA under this subpart H is operating in a 
manufacturing plant within the State on the date the State's status as 
an exclusive IPIA commences, the private organization may provide IPIA 
services in that plant for 90 days after that date.

[61 FR 10861, Mar. 15, 1996]

[[Page 226]]



Sec. 3282.353  Submission format.

    States and private organizations which wish to act as primary 
inspection agencies shall submit to the Director, Manufactured Housing 
Standards Division, Department of Housing and Urban Development, 451 
Seventh St. SW., Washington, DC 20410, an application which includes the 
following:
    (a) A cover sheet which shall show the following:
    (1) Name and address of the party making the application;
    (2) The capacity (DAPIA, IPIA) in which the party wishes to be 
approved to act;
    (3) A list of the key personnel who will perform the various 
functions required under these regulations;
    (4) The number of manufactured home manufacturers and manufacturing 
plants for which the submitting party proposes to act in each of the 
capacities for which it wishes to be approved to act;
    (5) The estimated total number of manufactured homes produced by 
those manufacturers and in those plants per year;
    (6) The number of years the proposed primary inspection agency has 
been actively engaged in the enforcement of manufactured home standards; 
and
    (7) A certification by the party applying that it will follow the 
Federal manufactured home construction and safety standards set out at 
24 CFR part 3280 and any interpretations of those standards which may be 
made by the Secretary.
    (b) A detailed schedule of fees to be charged broken down by the 
services for which they will be charged.
    (c) A detailed description of how the submitting party intends to 
carry out all of the functions for which it wishes to be approved under 
this subpart, with appropriate cross-references to sections of this 
subpart, including examples and complete descriptions of all reports, 
tests, and evaluations which the party would be required to make. Where 
appropriate, later sections of this subpart identify particular items 
which must be included in the submission. The Secretary may request 
further detailed information, when appropriate.
    (d) A party wishing to be approved as a DAPIA shall submit a copy of 
a manufactured home design that it has approved (or if it has not 
approved a design, one that it has evaluated and a deviation report 
showing where the design is not in conformance with the standards) and a 
copy of a quality assurance manual that it has approved (or if it was 
not approved a manual, one that it has evaluated and a deviation report 
showing where the manual is inadequate).
    (e) A party wishing to be approved as an IPIA shall submit a copy of 
a certification report which it has prepared for a manufactured home 
plant or, if it has not prepared such a report, an evaluation of a 
manufacturing plant which it has inspected with a description of what 
changes shall be made before a certification report can be issued. A 
party that has not previously inspected manufactured homes may 
nevertheless be accepted on the basis of the qualifications of its 
personnel and its commitment to perform the required functions.

[41 FR 19852, May 13, 1976, as amended at 61 FR 10861, Mar. 15, 1996]



Sec. 3282.354  Submittal of false information or refusal to submit information.

    The submittal of false information or the refusal to submit 
information required under this subpart may be sufficient cause for the 
Secretary to revoke or withhold acceptance.



Sec. 3282.355  Submission acceptance.

    (a) A party whose submission is determined by the Department to be 
adequate shall be granted provisional acceptance until December 15, 
1976, or for a six month period from the date of such determination, 
whichever is later.
    (b) Final acceptance of a party to act as a primary inspection 
agency will be contingent upon adequate performance during the period of 
provisional acceptance as determined through monitoring carried out 
under subpart J and upon satisfactory acceptance under Sec. 3282.361(e) 
or Sec. 3282.362(e). Final acceptance shall be withheld if performance 
is inadequate.

[[Page 227]]

    (c) Continued acceptance as a primary inspection agency shall be 
contingent upon continued adequacy of performance as determined through 
monitoring carried out under subpart J. If the Secretary determines that 
a primary inspection agency that has been granted final acceptance is 
performing inadequately, the Secretary shall suspend the acceptance, and 
the primary inspection agency shall be entitled to a Formal or Informal 
Presentation of Views as set out in subpart D of this part.

[41 FR 19852, May 13, 1976, as amended at 51 FR 34468, Sept. 29, 1986; 
61 FR 10861, Mar. 15, 1996]



Sec. 3282.356  Disqualification and requalification of primary inspection agencies.

    (a) The Secretary, based on monitoring reports or on other reliable 
information, may determine that a primary inspection agency which has 
been accepted under this subpart is not adequately carrying out one or 
more of its required functions. In so determining, the Secretary shall 
consider the impact of disqualification on manufacturers and other 
affected parties and shall seek to assure that the manufacturing process 
is not disrupted unnecessarily. Whenever the Secretary disqualifies a 
primary inspection agency under this section, the primary inspection 
agency shall have a right to a Formal or Informal Presentation of Views 
under subpart D of this part.
    (b) Interested persons may petition the Secretary to disqualify a 
primary inspection agency under the provisions of Sec. 3282.156(b).
    (c) A primary inspection agency which has been disqualified under 
paragraph (a) may resubmit an application under Sec. 3282.353. The 
submission shall include a full explanation of how problems or 
inadequacies which resulted in disqualifications have been rectified and 
how the primary inspection agency shall assure that such problems shall 
not recur.
    (d) When appropriate, the Secretary shall publish in the Federal 
Register or otherwise make available to the public for comment a 
disqualified PIA's application for requalification, subject to the 
provisions of Sec. 3282.54.
    (e) Both provisional and final acceptance of any IPIA (or DAPIA) 
automatically expires at the end of any period of one year during which 
it has not acted as an IPIA (or DAPIA). An IPIA (or DAPIA) has not acted 
as such unless it has actively performed its services as an IPIA (or 
DAPIA) for at least one manufacturer by which it has been selected. An 
IPIA (or DAPIA) whose acceptance has expired pursuant to this section 
may resubmit an application under Sec. 3282.353 in order to again be 
qualified as an IPIA (or DAPIA), when it can show a bona fide prospect 
of performing IPIA (or DAPIA) services.

[41 FR 19852, May 13, 1976, as amended at 45 FR 59311, Sept. 9, 1980; 51 
FR 34468, Sept. 29, 1986]



Sec. 3282.357  Background and experience.

    All private organizations shall submit statements of the 
organizations' experience in the housing industry, including a list of 
housing products, equipment, and structures for which evaluation, 
testing and follow-up inspection services have been furnished. They 
shall also submit statements regarding the length of time these services 
have been provided by them. In addition, all such submissions shall 
include a list of other products for which the submitting party provides 
evaluation, inspection, and listing or labeling services and the 
standard applied to each product, as well as the length of time it has 
provided these additional services.



Sec. 3282.358  Personnel.

    (a) Each primary inspection agency shall have qualified personnel 
capable of carrying out all of the functions for which the primary 
inspection agency is seeking to be approved or disapproved. Where a 
State intends to act as the exclusive IPIA in the State, it shall show 
that it has adequate personnel to so act in all plants in the State.
    (b) Each submission shall indicate the total number of personnel 
employed by the submitting party, the number of personnel available for 
this program, and the locations of the activities of the personnel to be 
used in the program.

[[Page 228]]

    (c) Each submission shall include the names and qualifications of 
the administrator and the supervisor who will be directly responsible 
for the program, and resumes of their experience.
    (d) Each submission shall contain the information set out in 
paragraphs (d)(1) through (d)(9) of this section. Depending upon the 
functions (DAPIA or IPIA) to be undertaken by a particular primary 
inspection agency, some of the categories of personnel listed may not be 
required. In such cases, the submission should indicate which of the 
categories of information are not required and explain why they are not 
needed. The submission should identify which personnel will carry out 
each of the functions the party plans to perform. The qualifications of 
the personnel to perform one or more of the functions will be judged in 
accordance with the requirements of ASTM Standard E-541 except that the 
requirement for registration as a professional engineer or architect may 
be waived for personnel whose qualifications by experience or education 
equal those of a registered engineer or architect. The categories of 
personnel to be included in the submission are as follows:
    (1) The names of engineers practicing structural engineering who 
will be involved in the evaluation, testing, or followup inspection 
services, and resumes of their experience.
    (2) The names of engineers practicing mechanical engineering who 
will be involved in the evaluation, testing, or followup, inspection 
services and resumes of their experience.
    (3) The names of engineers practicing electrical engineering who 
will be involved in the evaluation, testing, or followup inspection 
services and resumes of their experience.
    (4) The names of engineers practicing fire protection engineering 
who will be involved in the evaluation, testing, or followup inspection 
services, and resumes of their experience.
    (5) The names of all other engineers assigned to this program, the 
capacity in which they will be employed, and resumes of their 
experience.
    (6) The names of all full-time and part-time consulting architects 
and engineers, their registration, and resumes of their experience.
    (7) The names of inspectors and other technicians along with resumes 
of experience and a description of the type of work each will perform.
    (8) A general outline of the applicant agency's training program for 
assuring that all inspectors and other technicians are properly trained 
to do each specific job assigned.
    (9) The names and qualifications of individuals serving on advisory 
panels that assist the applicant agency in making its policies conform 
with the public interest in the field of public health and safety.
    (e) All information required by this section shall be kept current. 
The Secretary shall be notified of any change in personnel or management 
or change of ownership or State jurisdiction within 30 days of such 
change.



Sec. 3282.359  Conflict of interest.

    (a) All submissions by private organizations shall include a 
statement that the submitting party is independent in that it does not 
have any actual or potential conflict of interest and is not affiliated 
with or influenced or controlled by any producer, supplier, or vendor of 
products in any manner which might affect its capacity to render reports 
of findings objectively and without bias.
    (b) A private organization shall be judged to be free of conflicting 
affiliation, influence, and control if it demonstrates compliance with 
all of the following criteria:
    (1) It has no managerial affiliation with any producer, supplier, or 
vendor of products for which it performs PIA services, and is not 
engaged in the sale or promotion of any such product or material;
    (2) The results of its work do not accrue financial benefits to the 
organization via stock ownership of any producer, supplier or vendor of 
the products involved;
    (3) Its directors and other management personnel and its engineers 
and inspectors involved in certification activities hold no stock in and 
receive no stock option or other benefits, financial, or otherwise, from 
any producer, supplier, or vendor of the product involved, other than 
compensation under Sec. 3282.202 of this part;

[[Page 229]]

    (4) The employment security status of its personnel is free of 
influence or control of any producer, supplier, or vendor, and
    (5) It does not perform design or quality assurance manual approval 
services for any manufacturer whose design or manual has been created or 
prepared in whole or in part by engineers of its organization or 
engineers of any affiliated organization.
    (c) All submissions by States shall include a statement that 
personnel who will be in any way involved in carrying out the State plan 
or PIA function are free of any conflict of interest except that with 
respect to members of councils, committees or similar bodies providing 
advice to the designated agency are not subject to this requirement.



Sec. 3282.360  PIA acceptance of product certification programs or listings.

    In determining whether products to be included in a manufactured 
home are acceptable under the standards set out in part 3280 of 24 CFR, 
all PIAs shall accept all product verification programs, labelings, and 
listings unless the PIA has reason to believe that a particular 
certification is not acceptable, in which case, the PIA shall so inform 
the Secretary and provide the Secretary with full documentation and 
information on which it bases its belief. Pending a determination by the 
Secretary, the PIA shall provisionally accept the certification. The 
Secretary's determination shall be binding on all PIAs.



Sec. 3282.361  Design Approval Primary Inspection Agency (DAPIA).

    (a) General. (1) The DAPIA selected by a manufacturer under 
Sec. 3282.203 shall be responsible for evaluating all manufactured home 
designs submitted to it by the manufacturer and for assuring that they 
conform to the standards. It shall also be responsible for evaluating 
all quality control programs submitted to it by the manufacturer by 
reviewing the quality assurance manuals in which the programs are set 
out to assure that the manuals reflect programs which are compatible 
with the designs to be followed and which commit the manufacturer to 
make adequate inspections and tests of every part of every manufactured 
home produced.
    (2) A design or quality assurance manual approved by a DAPIA shall 
be accepted by all IPIAs acting under Sec. 3282.362 who deal with the 
design, quality assurance manual, or manufactured homes built to them, 
and by all other parties, as, respectively, being in conformance with 
the Federal standards or as providing for adequate quality control to 
assure conformance. However, each design and quality assurance manual is 
subject to review and verification by the Secretary or the Secretary's 
agent at any time.
    (b) Designs. (1) In evaluating designs for compliance with the 
standards, the DAPIA will not allow any deviations from accepted 
engineering practice standards for design calculations or any deviations 
from accepted test standards, except that the DAPIA, for good cause, may 
request the Secretary to accept innovations which are not yet accepted 
practices. Acceptances by the Secretary shall be published in the form 
of interpretative bulletins, where appropriate.
    (2) The DAPIA shall require the manufacturer to submit floor plans 
and specific information for each manufactured home design or variation 
which the DAPIA is to evaluate. It shall also require the submission of 
drawings, specifications, calculations, and test records of the 
structural, electrical and mechanical systems of each such manufactured 
home design or variation. The manufacturer need not supply duplicate 
information where systems are common to several floor plans. Each DAPIA 
shall develop and carry out procedures for evaluating original 
manufactured home designs by requiring manufacturers to submit necessary 
drawings and calculations and carry out such verifications and 
calculations as it deems necessary. Where compliance with the standards 
cannot be determined on the basis of drawings and calculations, the 
DAPIA shall require any necessary tests to be carried out at its own 
facility, at separate testing facilities or at the manufacturer's plant.
    (3) Design deviation report. After evaluating the manufacturer's 
design, the DAPIA shall furnish the manufacturer with a design deviation 
report which

[[Page 230]]

specifies in detail, item by item with appropriate citations to the 
standards, the specific deviations in the manufacturer's design which 
must be rectified in order to produce manufactured homes which comply 
with the standards. The design deviation report may acknowledge the 
possibility of alternative designs, tests, listings, and certifications 
and state the conditions under which they will be acceptable. The design 
deviation report shall, to the extent practicable, be complete for each 
design evaluated in order to avoid repeated rejections and additional 
costs to the manufacturer.
    (4) Design approval. The DAPIA shall signify approval of a design by 
placing its stamp of approval or authorized signature on each drawing 
and each sheet of test results. The DAPIA shall clearly cross-reference 
the calculations and test results to applicable drawings. The DAPIA may 
require the manufacturer to do the cross-referencing if it wishes. It 
shall indicate on each sheet how any deviations from the standards have 
been or shall be resolved. Within 5 days after approving a design, the 
DAPIA shall forward a copy of the design to the manufacturer and the 
Secretary or the Secretary's agent (prior to the effective date of the 
standards the latter copy shall go to the Secretary.)

The DAPIA shall maintain a complete up-to-date set of approved designs 
and design changes approved under paragraph (b)(5) of this section which 
it can duplicate and copies of which it can furnish to interested 
parties as needed when disputes arise.
    (5) Design change approval. The DAPIA shall also be responsible for 
approving all changes which a manufacturer wishes to make in a design 
approved by the DAPIA. In reviewing design changes, the DAPIA shall 
respond as quickly as possible to avoid disruption of the manufacturing 
process. Within 5 days after approving a design change, the DAPIA shall 
forward a copy of this change to the manufacturer and the Secretary or 
the Secretary's agent as set out in paragraph (b)(4) of this section to 
be included in the design to which the change was made.
    (c) Quality assurance manuals. (1) In evaluating a quality assurance 
manual, the DAPIA shall identify any aspects of designs to be 
manufactured under the manual which require special quality control 
procedures. The DAPIA shall determine whether the manual under which a 
particular design is to be manufactured reflects those special 
procedures, and shall also determine whether the manuals which it 
evaluates provide for such inspections and testing of each manufactured 
home so that the manufacturer, by following the manual, can assure that 
each manufactured home it manufactures will conform to the standards. 
The manual shall, at a minimum, include the information set out in 
Sec. 3282.203(c).
    (2) Manual deviation report. After evaluating a manufacturer's 
quality assurance manual, the DAPIA shall furnish the manufacturer with 
a manual deviation report which specifies in detail any changes which a 
manufacturer must make in order for the quality assurance manual to be 
acceptable. The manual deviation report shall, to the extent 
practicable, be complete for each design in order to avoid repeated 
rejections and additional costs to the manufacturer.
    (3) Manual approval. The DAPIA shall signify approval of the 
manufacturer's quality assurance manual by placing its stamp of approval 
or authorized signature on the cover page of the manual. Within 5 days 
of approving a quality assurance manual, the DAPIA shall forward a copy 
of the quality assurance manual to the manufacturer and the Secretary or 
the Secretary's agent (prior to the effective date of the standards, the 
latter copy shall go to the Secretary). The DAPIA shall maintain a 
complete up-to-date set of approved manuals and manual changes approved 
under paragraph (c)(4) of this section which it can duplicate and copies 
of which it can furnish to interested parties as needed when disputes 
arise.
    (4) Manual change approval. Each change the manufacturer wishes to 
make in its quality assurance manual shall be approved by the DAPIA. 
Within 5 days after approving a manual change, the DAPIA shall forward a 
copy of the change to the manufacturer and the Secretary or the 
Secretary's agent as set out in paragraph (c)(3) of

[[Page 231]]

this section to be included in the manual to which the change was made.
    (d) Requirements for full acceptance--DAPIA. (1) Before granting 
full acceptance to a DAPIA, the Secretary or the Secretary's agent shall 
review and evaluate at least one complete design and one quality 
assurance manual which has been approved by the DAPIA. These shall be 
designs and manuals approved to the Federal standards, and they shall be 
chosen at random from those approved by the DAPIA during the period of 
provisional acceptance.
    (2) If the Secretary determines that a design or quality assurance 
manual shows an inadequate level of performance, the Secretary or the 
Secretary's agent shall carry out further evaluations. If the Secretary 
finds the level of performance to be unacceptable, the Secretary shall 
not grant full acceptance. If full acceptance has not been granted by 
the end of the provisional acceptance period, provisional acceptance 
shall lapse unless the Secretary determines that the failure to obtain 
full acceptance resulted from the fact that the Secretary or her agent 
has not had adequate time in which to complete an evaluation.

[41 FR 19852, May 13, 1976, as amended at 61 FR 10861, Mar. 15, 1996]



Sec. 3282.362  Production Inspection Primary Inspection Agencies (IPIAs).

    (a) General--(1) IPIA responsibilities. An IPIA selected by a 
manufacturer under Sec. 3282.204 to act in a particular manufacturing 
plant shall be responsible for assuring:
    (i) That the plant is capable of following the quality control 
procedures set out in the quality assurance manual to be followed in 
that plant;
    (ii) That the plant continues to follow the quality assurance 
manual;
    (iii) That any part of any manufactured home that it actually 
inspects conforms with the design, or where the design is not specific 
with respect to an aspect of the standards, to the standards;
    (iv) That whenever it finds a manufactured home in production which 
fails to conform to the design or where the design is not specific, to 
the standards, the failure to conform is corrected before the 
manufactured home leaves the manufacturing plant; and
    (v) That if a failure to conform to the design, or where the design 
is not specific, to the standards, is found in one manufactured home, 
all other homes still in the plant which the IPIA's records or the 
records of the manufacturer indicate might not conform to the design or 
to standards are inspected and, if necessary, brought up to the 
standards before they leave the plant.
    (2) No more than one IPIA shall operate in any one manufacturing 
plant, except that where a manufacturer decides to change from one IPIA 
to another, the two may operate in the plant simultaneously for a 
limited period of time to the extent necessary to assure a smooth 
transition.
    (b) Plant approval. (1) Each IPIA shall, with respect to each 
manufacturing plant for which it is responsible, evaluate the quality 
control procedures being followed by the manufacturer in the plant to 
determine whether those procedures are consistent with and fulfill the 
procedures set out in the DAPIA approved quality assurance manual being 
followed in the plant. As part of this evaluation, and prior to the 
issuance of any labels to the manufacturer, the IPIA shall make a 
complete inspection of the manufacture of at least one manufactured home 
through all of the operations in the manufacturer's plant. The purpose 
of this initial factory inspection is to determine whether the 
manufacturer is capable of producing manufactured homes in conformance 
with the approved design and, to the extent the design is not specific 
with respect to an aspect of the standards, with the standards and to 
determine whether the manufacturer's quality control procedures as set 
out in the quality assurance manual, plant equipment, and personnel, 
will assure that such conformance continues. This inspection should be 
made by one or more qualified engineers who have reviewed the approved 
design and by an inspector who has been carefully briefed by the 
engineers on the restrictive aspects of the design. The manufactured 
home shall be inspected to the approved design for the home except that 
where the design is not specific

[[Page 232]]

with respect to any aspect of the standards, the inspection shall be to 
the standards as to that aspect of the manufactured home. If the first 
manufactured home inspected fails to conform to the design or, with 
respect to any aspect of the standards not specifically covered by the 
design, to the standards, additional units shall be similarly inspected 
until the IPIA is satisfied that the manufacturer is conforming to the 
approved design, or where the design is not specific with respect to any 
aspect of the standards, to the standards and quality assurance manual.
    (2) Certification report. If, on the basis of the initial 
comprehensive factory inspection required by paragraph (b)(1) of this 
section, the IPIA determines that the manufacturer is performing 
adequately, the IPIA shall prepare and forward to the manufacturer, to 
HUD, and to HUD's agent a certification report as described in this 
paragraph (b)(2) of this section. The issuance of the certification 
report is a prerequisite to the commencement of production surveillance 
under paragraph (c) of this section in the plant for which the report is 
issued. At the time the certification report is issued, the IPIA may 
provide the manufacturer with a two to four week supply of labels to be 
applied to manufactured homes produced in the plant. The IPIA shall 
maintain a copy of each certification report which it issues.
    (3) The certification report shall include:
    (i) The name of the DAPIA which approved the manufacturer's design 
and quality assurance manual and the dates of those approvals,
    (ii) The names and titles of the IPIA engineers and inspectors who 
performed the initial comprehensive inspection,
    (iii) A full report of inspections made, serial numbers inspected, 
any failures to comply which were observed, corrective actions taken, 
and dates of inspections, and
    (iv) A certification that at least one manufactured home has been 
completely inspected in all phases of its production in the plant, that 
the manufacturer is performing in conformance with the approved designs 
and quality assurance manual and, to the extent the design is not 
specific with respect to any aspects of the standards, with the 
standards, and the IPIA is satisfied that the manufacturer can produce 
manufactured homes in conformance with the designs, and where the 
designs are not specific, with the standards on a continuing basis.
    (4) Inadequate manufacturer performance. Where an IPIA determines 
that the performance of a manufacturer is not yet adequate to justify 
the issuance of a certification report and labels to the manufacturer, 
the IPIA may label manufactured homes itself by using such of its 
personnel as it deems necessary to perform complete inspections of all 
phases of production of each manufactured home being produced and 
labeling only those determined after any necessary corrections to be in 
conformance with the design and, as appropriate, with the standards. 
This procedure shall continue until the IPIA determines that the 
manufacturer's performance is adequate to justify the issuance of a 
certification report.
    (c) Production surveillance. (1) After it has issued a certification 
report under paragraph (b) of this section, the IPIA shall carry out 
ongoing surveillance of the manufacturing process in the plant. The IPIA 
shall be responsible for conducting representative inspections to assure 
that the manufacturer is performing its quality control program pursuant 
to and consistent with its approved quality assurance manual and to 
assure that whatever part of a manufactured home is actually inspected 
by the IPIA is fully in conformance with the design and, as appropriate 
under paragraph (a)(1)(iii) of this section, with the standards before a 
label is issued for or placed on that manufactured home. The 
surveillance visits shall commence no later than that date on which the 
IPIA determines they must commence so that the IPIA can assure that 
every manufactured home to be produced after the effective date of the 
standards to which a label provided for in paragraph (c)(2) of this 
section is affixed, is inspected in at least one stage of its 
production. The frequency of subsequent visits to the plant shall 
continue to be such that every manufactured home is inspected

[[Page 233]]

at some stage in its production. In the course of each visit, the IPIA 
shall make a complete inspection of every phase of production and of 
every visible part of every manufactured home which is at each stage of 
production. The inspection shall be made to the approved design except 
where the design is not specific with respect to an aspect of the 
standards, in which case the inspection of that aspect of the 
manufactured home shall be made to the standards. The IPIA shall assure 
that no label is placed on any manufactured home which it finds fails to 
conform with the approved design or, as appropriate, the standards in 
the course of these inspections and shall assure that no labels are 
placed on other manufactured homes still in the plant which may also not 
conform until those homes are inspected and if necessary corrected to 
the design or the standards. If an IPIA finds a manufactured home that 
fails to conform to the design, or as appropriate under paragraph 
(a)(1)(iii) of this section, to the standards, the IPIA may, in addition 
to withholding the label for the unit, proceed to red tag the home until 
the failure to conform is corrected. Only the IPIA is authorized to 
remove a red tag. When manufactured homes repeatedly fail to conform to 
the design, or as appropriate under paragraph (a)(1)(iii) of this 
section, to the standards in the same assembly station or when there is 
evidence that the manufacturer is ignoring or not performing under its 
approved quality assurance manual, the IPIA shall increase the frequency 
of these inspections until it is satisfied that the manufacturer is 
performing to its approved quality assurance manual. Failure to perform 
to the approved manual justifies withholding labels until an adequate 
level of performance is attained. As part of its function of assuring 
quality control, the IPIA shall inspect materials in storage and test 
equipment used by the manufacturer at least once a month, and more 
frequently if unacceptable conditions are observed. With the prior 
approval of the Secretary, an IPIA may decrease the frequency of any 
inspections.
    (2) Labeling--(i) Labels required. (A) The IPIA shall continuously 
provide the manufacturer with a two- to four-week supply (at the 
convenience of the IPIA and the manufacturer) of the labels described in 
this subsection, except that no labels shall be issued for use when the 
IPIA is not present if the IPIA is not satisfied that the manufacturer 
can and is producing manufactured homes which conform to the design and, 
as appropriate, to the standards. Where necessary, the IPIA shall 
reclaim labels already given to the manufacturer. In no event shall the 
IPIA allow a label to be affixed to a manufactured home if the IPIA 
believes that the manufactured home fails to conform to the design, or, 
where the design is not specific with respect to an aspect of the 
standards, to the standards. Labels for such manufactured homes shall be 
provided only after the failure to conform has been remedied, or after 
the Secretary has determined that there is no failure to conform.
    (B) A permanent label shall be affixed to each transportable section 
of each manufactured home for sale or lease to a purchaser or lessor in 
the United States in such a manner that removal will damage the label so 
that it cannot be reused. This label is provided by the IPIA and is 
separate and distinct from the data plate that the manufacturer is 
required to provide under Sec. 3280.5.
    (C) The label shall read as follows:

    ``As evidenced by this label No. ABC 000 001, the manufacturer 
certifies to the best of the manufacturer's knowledge and belief that 
this manufactured home has been inspected in accordance with the 
requirements of the Department of Housing and Urban Development and is 
constructed in conformance with the Federal Manufactured Home 
Construction and Safety Standards in effect on the date of manufacture. 
See data plate.''

    (D) The label shall be 2 in. by 4 in. in size and shall be 
permanently attached to the manufactured home by means of 4 blind 
rivets, drive screws, or other means that render it difficult to remove 
without defacing it. It shall be etched on .032 in. thick aluminum 
plate. The label number shall be etched or stamped with a 3 letter IPIA 
designation which the Secretary shall assign and a 6 digit number which 
the label supplier shall stamp sequentially on labels supplied to each 
IPIA.

[[Page 234]]

    (E) The label shall be located at the tail-light end of each 
transportable section of the manufactured home approximately one foot up 
from the floor and one foot in from the road side, or as near that 
location on a permanent part of the exterior of the manufactured home as 
practicable. The roadside is the right side of the manufactured home 
when one views the manufactured home from the tow bar end of the 
manufactured home. It shall be applied to the manufactured home unit in 
the manufacturing plant by the manufacturer or the IPIA, as appropriate.
    (F) The label shall be provided to the manufacturer only by the 
IPIA. The IPIA shall provide the labels in sequentially numbered series. 
The IPIA may obtain labels from the Secretary or the Secretary's agent, 
or where the IPIA obtains the prior approval of the Secretary, from a 
label manufacturer. However, if the IPIA obtains labels directly from a 
label supplier, those labels must be sequentially numbered without any 
duplication of label numbers.
    (G) Whenever the IPIA determines that a manufactured home which has 
been labeled, but which has not yet been released by the manufacturer 
may not conform to the design or, as appropriate under paragraph 
(a)(1)(iii) of this section, to the standards, the IPIA by itself or 
through an agent shall red tag the manufactured home. Where the IPIA 
determines that a manufactured home which has been labeled and released 
by the manufacturer, but not yet sold to a purchaser (as described in 
Sec. 3282.252(b)) may not conform, the IPIA may, in its discretion, 
proceed to red tag the manufactured home. Only the IPIA is authorized to 
remove red tags, though it may do so through agents which it deems 
qualified to determine that the failure to conform has been corrected. 
Red tags may be removed when the IPIA is satisfied, through inspections, 
assurances from the manufacturer, or otherwise, that the affected homes 
conform.
    (H) Labels that are damaged, destroyed, or otherwise made illegible 
or removed shall be replaced by the IPIA, after determination that the 
manufactured home is in compliance with the standards, by a new label of 
a different serial number. The IPIA's labeling record shall be 
permanently marked with the number of the replacement label and a 
corresponding record of the replacement label.
    (ii) Label control. The labels used in each plant shall be under the 
direct control of the IPIA acting in that plant. Only the IPIA shall 
provide the labels to the manufacturer. The IPIA shall assure that the 
manufacturer does not use any other label to indicate conformance to the 
standards.
    (A) The IPIA shall be responsible for obtaining labels. Labels shall 
be obtained from HUD or its agent, or with the approval of the 
Secretary, from a label manufacturer. The labels shall meet the 
requirements of this section. Where the IPIA obtains labels directly 
from a label manufacturer, the IPIA shall be responsible for assuring 
that the label manufacturer does not provide labels directly to the 
manufacturer of manufactured homes. If the label manufacturer fails to 
supply correct labels or allows labels to be released to parties other 
than the IPIA, the IPIA shall cease dealing with the label manufacturer.
    (B) The labels shall be shipped to and stored by the IPIA's at a 
location which permits ready access to manufacturing plants under its 
surveillance. The labels shall be stored under strict security and 
inventory control. They shall be released only by the IPIA to the 
manufacturer under these regulations.
    (C) The IPIA shall be able to account for all labels which it has 
obtained through the date on which the manufactured home leaves the 
manufacturing plant, and it shall be able to identify the serial number 
of the manufactured home to which each particular label is affixed.
    (D) The IPIA shall keep in its central record office a list of the 
serial numbers of labels issued from the label producer to the IPIA and 
by the IPIA to the manufacturing plant.
    (E) Failure to maintain control of labels through the date the 
manufactured home leaves the manufacturing plant and failure to keep 
adequate records of which label is on which manufactured home shall 
render the IPIA

[[Page 235]]

subject to disqualification under Sec. 3282.356.
    (3) Data plate. (i) The IPIA shall assure that each manufactured 
home produced in each manufacturing plant under its surveillance is 
supplied with a data plate which meets the requirements of this section 
and of Sec. 3280.5 of chapter XX of 24 CFR. The data plate shall be 
furnished by the manufacturer and affixed inside the manufactured home 
on or near the main electrical distribution panel. The data plate shall 
contain the following information:
    (A) The name and address of the manufacturing plant in which the 
manufactured home was manufactured,
    (B) The serial number and model designation of the unit and the date 
the unit was manufactured,
    (C) The statement ``This manufactured home is designed to comply 
with the Federal Manufactured Home Construction and Safety Standards in 
force at the time of manufacture.'',
    (D) A list of major factory-installed equipment including the 
manufacturer's name and the model designation of each appliance,
    (E) Reference to the roof load zone and wind load zone for which the 
home is designed and duplicates of the maps as set forth in 
Sec. 3280.305. This information may be combined with the heating/cooling 
certificate and insulation zone map required by Secs. 3280.510 and 
3280.511. The Wind Zone Map on the Data Plate shall also contain the 
statement:

    This home has not been designed for the higher wind pressures and 
anchoring provisions required for ocean/coastal areas and should not be 
located within 1500' of the coastline in Wind Zones II and III, unless 
the home and its anchoring and foundation system have been designed for 
the increased requirements specified for Exposure D in ANSI/ASCE 7-88.

    (F) The statement:

    This home has ---- has not ---- (appropriate blank to be checked by 
manufacturer) been equipped with storm shutters or other protective 
coverings for windows and exterior door openings. For homes designed to 
be located in Wind Zones II and III, which have not been provided with 
shutters or equivalent covering devices, it is strongly recommended that 
the home be made ready to be equipped with these devices in accordance 
with the method recommended in the manufacturers printed instructions.

    (G) The statement: ``Design Approval by'', followed by the name of 
the agency that approved the design.
    (ii) A copy of the data plate shall be furnished to the IPIA, and 
the IPIA shall keep a permanent record of the data plate as part of its 
labeling record so that the information is available during the life of 
the manufactured home in case the data plate in the manufactured home is 
defaced or destroyed.
    (d) Permanent records. The IPIA shall maintain the following records 
as appropriate:
    (1) Records of all labels issued, applied, removed, and replaced by 
label number, manufactured home serial number, manufactured home type, 
manufacturer's name, dealer destination, and copies of corresponding 
data plates.
    (2) Records of all manufactured homes which are red tagged, and the 
status of each home.
    (3) Records of all inspections made at each manufacturing plant on 
each manufactured home serial number, each failure to conform found, and 
the action taken in each case.
    (4) Records of all inspections made at other locations of 
manufactured homes identified by manufacturer and serial number, all 
manufactured homes believed to contain the same failure to conform, and 
the action taken in each case.

All records shall specify the precise section of the standard which is 
in question and contain a clear and concise explanation of the process 
by which the IPIA reached any conclusions. All records shall be 
traceable to specific manufactured home serial numbers and through the 
manufacturer's records to dealers and purchasers.
    (e) Requirements for full acceptance--IPIA. (1) Before granting full 
acceptance to an IPIA, the Secretary or the Secretary's agent shall 
review and evaluate at least one certification report which has been 
prepared by the IPIA during the period of provisional acceptance. The 
Secretary or the Secretary's agent shall also review in depth the IPIA's 
administrative capabilities and otherwise review the IPIA's

[[Page 236]]

performance of its responsibilities under these regulations.
    (2) Where the Secretary determines on the basis of these reviews 
that an IPIA is not meeting an adequate level of performance, the 
Secretary or the Secretary's agent shall carry out further evaluations. 
If the Secretary finds the level of performance to be unacceptable, the 
Secretary shall not grant full acceptance. If full acceptance has not 
been granted by the end of the provisional acceptance period, 
provisional acceptance shall lapse unless the Secretary determines that 
the failure to obtain full acceptance resulted from the fact that the 
Secretary or the Secretary's agent has not had adequate time in which to 
complete an evaluation.

[41 FR 19852, May 13, 1976, as amended at 42 FR 2580, Jan. 12, 1977; 42 
FR 35157, July 8, 1977; 59 FR 2474, Jan. 14, 1994; 61 FR 10861, Mar. 15, 
1996]



Sec. 3282.363  Right of entry and inspection.

    Each primary inspection agency shall secure from each manufacturer 
and manufacturing plant under its surveillance an agreement that the 
Secretary, the State Administrative Agency and the primary inspection 
agency have the right to inspect the plant and its manufactured home 
inspection, labeling, and delivery records, and any of its manufactured 
homes in the hands of dealers or distributors at any reasonable time.



Sec. 3282.364  Inspection responsibilities and coordination.

    All primary inspection agencies shall be responsible for acting as 
necessary under their contractual commitment with the manufacturer to 
determine whether alleged failures to conform to the standards may exist 
in manufactured homes produced under their surveillance and to determine 
the source of the problems. The DAPIA may be required to examine the 
designs in question or the quality assurance manual under which the 
manufactured homes were produced. The IPIA may be required to reexamine 
the quality control procedures which it has approved to determine if 
they conform to the quality assurance manual, and the IPIA shall have 
primary responsibility for inspecting actual units produced and, where 
necessary, for inspecting units released by the manufacturer. All 
primary inspection agencies acting with respect to particular 
manufacturer or plant shall act in close coordination so that all 
necessary functions are performed effectively and efficiently.



Sec. 3282.365  Forwarding monitoring fee.

    The IPIA shall, whenever it provides labels to a manufacturer, 
obtain from the manufacturer the monitoring fee to be forwarded to the 
Secretary or the Secretary's agent as set out in Sec. 3282.210. If a 
manufacturer fails to provide the monitoring fee as required by 
Sec. 3282.210 to be forwarded by the IPIA under this section, the IPIA 
shall immediately inform the Secretary; or the Secretary's Agent.



Sec. 3282.366  Notification and correction campaign responsibilities.

    (a) Both IPIAs and DAPIAs are responsible for assisting the 
Secretary or an SAA in identifying the class of manufactured homes that 
may have been affected where the Secretary or an SAA makes or is 
contemplating making a preliminary determination of imminent safety 
hazard, serious defect, defect, or noncompliance under Sec. 3282.407 
with respect to manufactured homes for which the IPIA or DAPIA provided 
either plant inspection or design approval services.
    (b) The IPIA in each manufacturing plant is responsible for 
reviewing manufacturer determinations of the class of manufactured homes 
affected when the manufacturer is acting under Sec. 3282.404. The IPIA 
shall concur in the method used to determine the class of potentially 
affected manufactured homes or shall state why it finds the method to be 
inappropriate, inadequate or incorrect.

[42 FR 2580, Jan. 12, 1977]



       Subpart I--Consumer Complaint Handling and Remedial Actions

    Source: 42 FR 2580, Jan. 12, 1977, unless otherwise noted.

[[Page 237]]



Sec. 3282.401  Purpose and scope.

    (a) The purpose of this subpart is to establish a system under which 
the protections of the Act are provided with a minimum of formality and 
delay, but in which the rights of all parties are protected.
    (b) This subpart sets out the procedures to be followed by 
manufacturers, State Administrative Agencies, primary inspection 
agencies, and the Secretary to assure that manufacturers provide 
notification and correction with respect to their manufactured homes as 
required by the Act. Notification and correction may be required to be 
provided with respect to manufactured homes that have been sold or 
otherwise released by the manufacturer to another party when the 
manufacturer, an SAA or the Secretary determines that an imminent safety 
hazard, serious defect, defect, or noncompliance may exist in those 
manufactured homes as set out herein.
    (c) This subpart sets out the rights of dealers under section 613 of 
the Act, 42 U.S.C. 5412, to obtain remedies from manufacturers in 
certain circumstances.



Sec. 3282.402  General principles.

    (a) Nothing in this subpart or in these regulations shall limit the 
rights of the purchaser under any contract or applicable law.
    (b) The liability of manufactured home manufacturers to provide 
remedial actions under this subpart is limited by the principle that 
manufacturers are not responsible for failures that occur in 
manufactured homes or components solely as the result of normal year and 
aging, gross and unforeseeable consumer abuse, or unforeseeable neglect 
of maintenance.
    (c) The extent of a manufacturer's responsibility for providing 
notification or correction depends upon the seriousness of problems for 
which the manufacturer is responsible under this subpart.
    (d) When manufacturers act under Sec. 3282.404 of these regulations, 
they will not be required to classify the problem that triggered their 
action as a noncompliance, defect, serious defect, or imminent safety 
hazard.
    (e) It is the policy of these regulations that all consumer 
complaints or other information indicating the possible existence of an 
imminent safety hazard, serious defect, defect, or noncompliance should 
be referred to the manufacturer of the potentially affected manufactured 
homes as early as possible so that the manufacturer can begin to timely 
respond to the consumer and take any necessary remedial actions.



Sec. 3282.403  Consumer complaint and information referral.

    When a consumer complaint or other information indicating the 
possible existence of a noncompliance, defect, serious defect, or 
imminent safety hazard is received by a State Administrative Agency or 
the Secretary, the SAA or the Secretary shall forward the complaint or 
other information to the manufacturer of the manufactured home in 
question. The SAA or the Secretary shall, when it appears from the 
complaint or other information that more than one manufactured home may 
be involved, simultaneously send a copy of the complaint or other 
information to the SAA of the State where the manufactured home was 
manufactured or to the Secretary if there is no such SAA, and when it 
appears that an imminent safety hazard or serious defect may be 
involved, simultaneously send a copy to the Secretary.



Sec. 3282.404  Notification pursuant to manufacturer's determination.

    (a) The manufacturer shall provide notification as set out in this 
subpart with respect to all manufactured homes produced by the 
manufacturer in which there exists or may exist an imminent safety 
hazard or serious defect. The manufacturer shall provide such 
notification with respect to manufactured homes produced by the 
manufacturer in which a defect exists or may exist if the manufacturer 
has information indicating that the defect may exist in a class of 
manufactured homes that is identifiable because the cause of the defect 
or defects actually known to the manufacturer is such that the same 
defect would probably have been systematically introduced into more than 
one manufactured

[[Page 238]]

home during the course of production. This information may include, but 
is not limited to, complaints that can be traced to the same cause, 
defects known to exist in supplies of components or parts, information 
related to the performance of a particular employee and information 
indicating a failure to follow quality control procedures with respect 
to a particular aspect of the manufactured home. A manufacturer is 
required to provide notification with respect to a noncompliance only 
after the issuance of a final determination under Sec. 3282.407.
    (b) Whenever the manufacturer receives from any source information 
that may indicate the existence of a problem in a manufactured home for 
which the manufacturer is responsible for providing notification under 
paragraph (a) of this section, the manufacturer shall, as soon as 
possible, but not later than 20 days after receipt of the information, 
carry out any necessary investigations and inspections to determine and 
shall determine whether the manufacturer is responsible for providing 
notification under paragraph (a) of this section. The manufacturer shall 
maintain complete records of all such information and determinations in 
a form that will allow the Secretary or an SAA readily to discern who 
made the determination with respect to a particular piece of 
information, what the determination was, and the basis for the 
determination. Such records shall be kept for a minimum of five years 
from the date the manufacturer received the information. Consumer 
complaints or other information indicating the possible existence of 
noncompliances or defects received prior to the effective date of this 
section shall, for purposes of this subpart, be deemed to have been 
received on the date this section became effective.
    (c) If a manufacturer determines under paragraph (b) of this section 
that the manufacturer is responsible for providing notification under 
paragraph (a) of this section, the manufacturer shall prepare a plan for 
notification as set out in Sec. 3282.409. Where the manufacturer is 
required to correct under Sec. 3282.406, the manufacturer shall include 
in the plan provision for correction of affected manufactured homes. The 
manufacturer shall, as soon as possible, but not later than 20 days 
after making the determination, submit the plan to one of the following, 
as appropriate:
    (1) Where the manufactured homes covered by the plan were all 
manufactured in one State, to the SAA of the State of manufacture;
    (2) Where the manufactured homes were manufactured in more than one 
State, to the Secretary; or
    (3) Where there is no appropriate SAA under paragraph (c)(1) of this 
section, to the Secretary.

However, Where only one manufactured home is involved, the manufacturer 
need not submit the plan if the manufacturer corrects the manufactured 
home within the 20 day period. The manufacturer shall maintain, in the 
plant where the manufactured home was manufactured, a complete record of 
the correction. The record shall describe briefly the facts of the case 
and state what corrective actions were taken, and it shall be maintained 
in a separate file in a form that will allow the Secretary or an SAA to 
review all such corrections.
    (d) Upon approval of the plan with any necessary changes, the 
manufacturer shall carry out the approved plan within the time limits 
stated in it.
    (e) In any case, the manufacturer may act prior to obtaining 
approval of the plan. However, such action is subject to review and 
disapproval by the SAA of the State where the manufactured home is 
located, the SAA of the State where the manufactured home was 
manufactured, or the Secretary, except to the extent that agreement to 
the correction is obtained as described in this paragraph. To be assured 
that the corrective action will be accepted, the manufacturer may obtain 
the agreement of either SAA or the Secretary that the corrective action 
is adequate before the correction is made regardless of whether a plan 
has been submitted under paragraph (c) of this section. If such an 
agreement is obtained, the correction shall be accepted as adequate by 
all SAAs and the Secretary if the correction is made as agreed to and 
any imminent safety hazard or serious defect is eliminated.

[[Page 239]]

    (f) If the manufacturer wishes to obtain a waiver of the formal plan 
approval and notification requirements that would result from a 
determination under paragraph (b) of this section, the manufacturer may 
act under this paragraph. The plan approval and notification 
requirements shall be waived by either the SAA or the Secretary that 
would otherwise review the plan under paragraph (c) of this section if:
    (1) The manufacturer, before the expiration of the time period 
determined under paragaraph (c) of this section, shows to the 
satisfaction of the SAA or the Secretary, through such documentation as 
the SAA or the Secretary may require, that:
    (i) The manufacturer has identified the class of possibly affected 
manufactured homes in accordance with Sec. 3282.409.
    (ii) The manufacturer will correct, at the manufacturer's expense, 
all affected manufactured homes in the class within 60 days of being 
informed that the request for waiver has been accepted; and
    (iii) The proposed repairs are adequate to remove the failure to 
conform or imminent safety hazard that gave rise to the determination 
under paragraph (b) of this section; and
    (2) The manufacturer corrects all affected manufactured homes within 
60 days of being informed that the request for waiver has been accepted. 
The formal plan and notification requirements are waived pending final 
resolution of a waiver request under this paragraph (f) as of the date 
of such a request. If a waiver request is not accepted, the plan called 
for by paragraph (c) of this section shall be submitted within 5 days 
after the manufacturer is notified that the request was not accepted.



Sec. 3282.405  SAA responsibilities.

    (a) As set out at Sec. 3282.302(b)(5), each SAA is responsible for 
overseeing the handling of consumer complaints by manufacturers within 
the state. As part of that responsibility, the SAA is required to 
monitor manufacturer compliance with this subpart, and particularly with 
Sec. 3282.404. This monitoring will be done primarily by periodically 
checking the records that manufacturers are required to keep under 
Sec. 3282.404(b).
    (b) If the SAA acting under paragraph (a) finds that a manufacturer 
has failed to comply with Sec. 3282.404, or if the SAA finds that the 
manufacturer has decided not to act under Sec. 3282.404(c) where the SAA 
believes the manufacturer is required to act, or if the manufacturer 
failed to fulfill the requirements of Sec. 3282.404(f) after requesting 
a waiver under that paragraph, the SAA shall make such preliminary 
determinations as it deems appropriate under Sec. 3282.407(b), except 
that if the affected manufactured homes were manufactured in more than 
one state or if it appears that the appropriate preliminary 
determination would be an imminent safety hazard or serious defect, the 
SAA shall refer the matter to the Secretary.
    (c) Where an SAA that is reviewing a plan under Sec. 3282.404(c) 
finds that the manufacturer is not acting reasonably in refusing to 
accept changes to a proposed plan, the SAA shall make such preliminary 
determinations as may be appropriate under Sec. 3282.407, except that 
where it appears that it would be appropriate to make a preliminary 
determination of imminent safety hazard or serious defect, the SAA shall 
refer the matter to the Secretary.



Sec. 3282.406  Required manufacturer correction.

    A manufacturer required to furnish notification under Sec. 3282.404 
or Sec. 3282.407 shall correct, at its expense, any imminent safety 
hazard or serious defect that can be related to an error in design or 
assembly of the manufactured home by the manufacturer, including an 
error in design or assembly of any component or system incorporated in 
the manufactured home by the manufacturer.



Sec. 3282.407  Notification and correction pursuant to administrative determination.

    (a) Preliminary determinations. (1) Whenever the Secretary has 
information indicating the possible existence of an imminent safety 
hazard or serious defect in a manufactured home, the

[[Page 240]]

Secretary may issue a preliminary determination to that effect to the 
manufacturer.
    (2) Whenever the information referred to in paragraph (a)(1) of this 
section indicates that the manufacturer is required to correct the 
imminent safety hazard or serious defect under Sec. 3282.406, the 
Secretary may issue a preliminary determination to that effect to the 
manufacturer.
    (3) Whenever an SAA has information indicating that a defect or 
noncompliance may exist in a class of manufactured homes that is 
identifiable because the cause of the defect or noncompliance is such 
that the same defect or noncompliance would probably have been 
systematically introduced into more than one manufactured home during 
the course of production, and all manufactured homes in the class appear 
to have been manufactured in that State, the SAA may issue a preliminary 
determination of defect or noncompliance to the manufacturer. 
Information on which an SAA may base a conclusion that an appropriate 
class of manufactured homes exists may include, but is not limited to, 
complaints that can be traced to the same cause, defects known to exist 
in supplies of components or parts, information related to the 
performance of a particular employee, and information indicating a 
failure to follow quality control procedures with respect to a 
particular aspect of the manufactured home. If, during the course of 
these proceedings, evidence arises that indicates that manufactured 
homes in the same identifiable class were manufactured in more than one 
state, the SAA shall refer the matter to the Secretary. The Secretary 
may make a preliminary determination of noncompliance or defect where 
there is evidence that a noncompliance or defect may exist.
    (b) Notice and request for presentation of views and evidence. (1) 
Notice of the preliminary determination shall be sent by certified mail 
and shall include:
    (i) The factual basis for the determination and
    (ii) The identifying criteria of the manufactured homes known to be 
affected and those believed to be in the class of possibly affected 
manufactured homes.
    (2) The notice shall inform the manufacturer that the preliminary 
determination shall become final unless the manufacturer requests a 
hearing or presentation of views under subpart D of this part within 15 
days of receipt of a Notice of Preliminary Determination of serious 
defect, defect, or noncompliance, or within 5 days of receipt of a 
Notice of Preliminary Determination of imminent safety hazard.
    (3) Promptly upon receipt of a manufacturer's request, a Formal or 
an Informal Presentation of Views shall be held in accordance with 
Sec. 3282.152.
    (4) Parties may propose in writing, at any time, offers of 
settlement which shall be submitted to and considered by the Secretary 
or the SAA that issued the Notice of Preliminary Determination. If 
determined to be appropriate, the party making the offer may be given an 
opportunity to make an oral presentation in support of such offer. If an 
offer of settlement is rejected, the party making the offer shall be so 
notified and the offer shall be deemed withdrawn and shall not 
constitute a part of the record in the proceeding. Final acceptance by 
the Secretary or an SAA of any offer to settlement shall automatically 
terminate any proceedings related thereto.
    (c) Final determinations. (1) If the manufacturer fails to respond 
to the notice of preliminary determination within the time period 
established in paragraph (b)(2) of this section, or if the SAA or the 
Secretary decides that the views and evidence presented by the 
manufacturer or others are insufficient to rebut the preliminary 
determination, the SAA or the Secretary, as appropriate, shall make a 
final determination that an imminent safety hazard, serious defect, 
defect, or noncompliance exists. In the event of a final determination 
that an imminent safety hazard, serious defect, defect or noncompliance 
exists, the SAA or the Secretary shall issue an order directing the 
manufacturer to furnish notification. If the Secretary makes a final 
determination that the manufacturer is required to correct, the 
Secretary shall issue an order directing the manufacturer to provide 
correction.

[[Page 241]]

    (2) Appeals. When an SAA has made a final determination that a 
defect or noncompliance exists, the manufacturer may, within 10 days 
after receipt of the notice of such final determination, appeal to the 
Secretary under Sec. 3282.309.
    (d) Where a preliminary determination of defect or noncompliance has 
been issued, the manufacturer may, at any time during the proceedings 
called for in this section or after the issuance of a Final 
Determination and Order, request a waiver of the formal notification 
requirements. The manufacturer may request such a waiver from the SAA 
that is handling the proceedings, or if the Secretary is handling the 
proceedings, from the Secretary. When requesting such a waiver, the 
manufacturer shall certify and provide assurances that:
    (1) The manufacturer has identified the class of possibly affected 
manufactured homes in accordance with Sec. 3282.409;
    (2) The manufacturer will correct, at the manufacturer's expense, 
all affected manufactured homes in the class within a time period 
specified by the SAA or the Secretary but not later than 60 days after 
being informed of the acceptance of the request for waiver or issuance 
of the Final Determination, whichever is later; and
    (3) The proposed repairs are adequate to remove the failure to 
conform or imminent safety hazard that gave rise to the issuance of the 
Preliminary Determination.

The SAA or the Secretary may grant the request for waiver if the 
manufacturer agrees under paragraph (b)(4) of this section to an offer 
of settlement that includes an order that embodies the assurances made 
by the manufacturer.

[42 FR 2580, Jan. 12, 1977, as amended at 51 FR 34468, Sept. 29, 1986; 
51 FR 37568, Oct. 23, 1986]



Sec. 3282.408  Reimbursement for prior correction by owner.

    A manufacturer that is required to correct under Sec. 3282.406 or 
that decides to correct and obtain a waiver under Sec. 3282.404(f) or 
Sec. 3282.407(d) shall provide reimbursement for reasonable cost of 
correction to any owner of an affected manufactured home who chose to 
make the correction before the manufacturer did so.



Sec. 3282.409  Manufacturer's plan for notification and correction.

    (a) This section sets out the requirements that shall be met by 
manufacturers in preparing plans they are required to submit under 
Sec. 3282.404(c). The underlying requirement is that the plan show how 
the manufacturer will fulfill its responsibilities with respect to 
notification and correction that arise under this subpart I.
    (b) The plan shall include a copy of the proposed notice that meets 
the requirements of Sec. 3282.410.
    (c) The plan shall identify, by serial number and other appropriate 
identifying criteria, all manufactured homes with respect to which 
notification is to be provided. The class of manufactured homes with 
respect to which notification shall be provided and which shall be 
covered by the plan is that class of homes that was or is suspected of 
having been affected by the cause of an imminent safety hazard or 
failure to conform. The class is identifiable to the extent that the 
cause of the imminent safety hazard or failure to conform is such that 
it would probably have been systematically introduced into the 
manufactured homes in the class during the course of production. In 
determining the extent of such a class, the manufacturer may rely either 
upon information that positively identifies the extent of the class or 
upon information that indicates what manufactured homes were not 
affected by the same cause, thereby identifying the class by excluding 
those manufactured homes. Methods that may be used in determining the 
extent of the class of manufactured homes include, but are not limited 
to:
    (1) Inspection of manufactured homes produced before and after the 
manufactured homes known to be affected;
    (2) Inspection of manufacturer quality control records to determine 
whether quality control procedures were followed;
    (3) Inspection of IPIA records to determine whether the imminent 
safety hazard or failure to conform was either

[[Page 242]]

detected or specifically found not to exist in some manufactured homes;
    (4) Inspection of the design of the manufactured home in question to 
determine whether the imminent safety hazard or failure to conform 
resulted from the design itself;
    (5) Identification of the cause as relating to a particular employee 
or process that was employed for a known period of time or in producing 
the manufactured homes manufactured during that time;
    (6) Inspection of records relating to components supplied by other 
parties and known to contain or suspected of containing imminent safety 
hazards or failures to conform.

The class of manufactured homes identified by these methods may include 
only manufactured homes actually affected by the imminent safety hazard 
or failure to conform if the manufacturer can identify the precise 
manufactured homes. If it is not possible to identify the precise 
manufactured homes, the class shall include manufactured homes suspected 
of containing the imminent safety hazard or failure to conform because 
the evidence shows that they may have been affected.
    (d) The plan shall include a statement by the IPIA operating in each 
plant in which manufactured homes in question were produced. In this 
statement, the IPIA shall concur in the methods used by the manufacturer 
to determine the class of potentially affected manufactured homes or 
state why it believes the methods to have been inappropriate, 
inadequate, or incorrect.
    (e) The plan shall include a deadline for completion of all 
notifications and corrections.
    (f) The plan shall provide for notification to be accomplished:
    (1) By certified mail or other more expeditious means to the dealers 
or distributors of such manufacturer to whom such manufactured home was 
delivered. Where a serious defect or imminent safety hazard is involved, 
notification shall be sent by certified mail if it is mailed; and
    (2) By certified mail to the first purchaser of each manufactured 
home in the class of manufactured homes set out in the plan under 
paragraph (c) of this section, and to any subsequent owner to whom any 
warranty provided by the manufacturer or required by Federal, State or 
local law on such manufactured home has been transferred, to the extent 
feasible, except that notification need not be sent to any person known 
by the manufacturer not to own the manufactured home in question if the 
manufacturer has a record of a subsequent owner of the manufactured 
home; and
    (3) By certified mail to any other person who is a registered owner 
of each manufactured home containing the imminent safety hazard, serious 
defect, defect, or noncompliance and whose name has been ascertained 
pursuant to Sec. 3282.211.



Sec. 3282.410  Contents of notice.

    Except as otherwise agreed by the Secretary or the SAA reviewing the 
plan under Sec. 3282.404(c), the notification to be sent by the 
manufacturer shall include the following:
    (a) An opening statement: ``This notice is sent to you in accordance 
with the requirments of the National Manufactured Housing Construction 
and Safety Standards Act.''
    (b) Except where the manufacturer is acting under Sec. 3282.404, the 
following statement, as appropriate: ``(Manufacturer's name or the 
Secretary, or the appropriate SAA)'' has determined that:
    (1) An imminent safety hazard may exist in (identifying criteria of 
manufactured home).
    (2) A serious defect may exist in (identifying criteria of 
manufactured home).
    (3) A defect may exist in (identifying criteria of manufactured 
home).
    (4) (Identifying criteria of manufactured home) may not comply with 
an applicable ``Federal Home Construction or Safety Standard.''
    (c) A clear description of the imminent safety hazard, serious 
defect, defect, or noncompliance which shall include:
    (1) The location of the imminent safety hazard, serious defect, 
defect, or noncompliance in the manufactured home;

[[Page 243]]

    (2) A description of any hazards, malfunctions, deterioration or 
other consequences which may result from the imminent safety hazard, 
serious defect, defect, or noncompliance;
    (3) A statement of the conditions which may cause such consequences 
to arise; and
    (4) Precautions, if any, that the owner should take to reduce the 
chance that the consequences will arise before the manufactured home is 
repaired.
    (d) An evaluation of the risk to manufactured home occupants' safety 
and the durability of the manufactured home reasonably related to such 
imminent safety hazard, serious defect, defect, or noncompliance, 
including:
    (1) The type of injury which may occur to occupants of the 
manufactured home; and
    (2) Whether there will be any warning that a dangerous occurrence 
may take place and what that warning would be, and any signs which the 
owner might see, hear, smell, or feel which might indicate danger or 
deterioration of the manufactured home as a result of the imminent 
safety hazard, serious defect, defect, or noncompliance.
    (e) If the manufacturer will correct the manufactured home under 
this subpart or otherwise, a statement that the manufacturer will 
correct the manufactured home.
    (f) A statement in accordance with whichever of the following is 
appropriate:
    (1) Where the manufacturer will correct the manufactured home at no 
cost to the owner, the statement shall indicate how and when the 
correction will be done, how long the correction will take, and any 
other information that may be helpful to the owner.
    (2) When the manufacturer does not bear the cost of repair, the 
notification shall include a detailed description of all parts and 
materials needed to make the correction, a description of all steps to 
be followed in making the correction including appropriate 
illustrations, and an estimate of the cost of the purchaser or owner of 
the correction.
    (g) A statement informing the owner that the owner may submit a 
complaint to the Secretary if the owner believes that:
    (1) The notification or the remedy described therein is inadequate; 
or
    (2) The manufacturer has failed or is unable to remedy the problem 
in accordance with his notification; or
    (3) The manufacturer has failed or is unable to remedy within a 
reasonable time after the owner's first attempt to obtain remedy.
    (h) A statement that any actions taken by the manufacturer under the 
Act in no way limit the rights of the owner or any other person under 
any contract or other applicable law and that the owner may have further 
rights under contract or other applicable law.



Sec. 3282.411  Time for implementation.

    (a) The manufacturer shall complete implementation of the plan for 
correction approved under Sec. 3282.404(d) on or before the deadline 
established in the plan as required by Sec. 3282.409(e). The deadline 
shall allow a reasonable amount of time to complete the plan, taking 
into account the seriousness of the problem, the number of manufactured 
homes involved, the immediacy of any risk, and the difficulty of 
completing the action. The seriousness and immediacy of any risk shall 
be given greater weight than other considerations. If a manufacturer is 
required to correct an imminent safety hazard or serious defect under 
Sec. 3282.406, the deadline shall be no later than 60 days after 
approval of the plan.
    (b) The manufacturer shall complete the implementation of any 
notifications and corrections being carried out under an order of an SAA 
or the Secretary under Sec. 3282.407(c) on or before the deadline 
established in the order. In establishing each deadline, an SAA or the 
Secretary shall allow a reasonable time to complete all notifications 
and corrections, taking into account the seriousness of the imminent 
safety hazard, serious defect, defect or noncompliance, the number of 
manufactured homes involved, the location of the homes, and the extent 
of correction required, except that in no case shall the time allowed 
exceed the following limits:
    (1) In the case of a Final Determination of imminent safety hazard, 
30 days after the issuance of the Final Determination.

[[Page 244]]

    (2) In the case of a Final Determination of serious defect, defect 
or noncompliance, 60 days after the issuance of the Final Determination.
    (c) An SAA that approved a plan or is handling a proceeding or the 
Secretary may grant an extension of the deadlines included in a plan or 
order if the manufacturer requests such an extension in writing and 
shows good cause for the extension, and the SAA or the Secretary is 
satisfied that the extension is justified in the public interest. When 
the Secretary grants an extension, the Secretary shall notify the 
manufacturer and shall publish notice of such extension in the Federal 
Register. When an SAA grants an extension, the SAA shall notify the 
manufacturer, and forward to the Secretary a draft notice of the 
extension to be published in the Federal Register.



Sec. 3282.412  Completion of remedial actions and report.

    (a) Where a manufacturer is required to provide notification under 
this subpart, the manufacturer shall maintain in its files for five 
years from the date the notification campaign is completed a copy of the 
notice sent and a complete list of the people and their addresses. The 
files referred to in this section shall be organized such that each 
notification and correction campaign can be readily identified and 
reviewed by an SAA or the Secretary.
    (b) Where a manufacturer is required to provide correction under 
Sec. 3282.406 or where the manufacturer otherwise corrects under 
Sec. 3282.404(f) or Sec. 3282.407(d), the manufacturer shall maintain in 
its files, for five years from the date the correction campaign is 
completed, one of the following, as appropriate, for each manufactured 
home involved.
    (1) Where the correction is made, a certification by the 
manufacturer that the repair was made to satisfy completely the 
standards in effect at the time the manufactured home was manufactured 
and that any imminent safety hazard has been eliminated, or
    (2) Where the owner refuses to allow the manufacturer to repair the 
home, a certification by the manufacturer that the owner has been 
informed of the problem which may exist in the manufactured home, that 
the owner has been informed of any risk to safety or durability of the 
manufactured home which may result from the problem, and that an attempt 
has been made to repair the problems only to have the owner refuse the 
repair.
    (c) If any actions taken under this subpart are not adequate under 
the approved plan or an order of the Secretary or an SAA, the 
manufacturer may be required to provide additional notifications or 
corrections to satisfy the plan or order.
    (d) If, in the course of making corrections under any of the 
provisions of this subpart, the manufacturer creates an imminent safety 
hazard or serious defect, the manufacturer shall correct the imminent 
safety hazard or serious defect under Sec. 3282.406.
    (e) The manufacturer shall, within 30 days after the deadline for 
completing any notifications and, where required, corrections, under an 
approved plan or under an order of an SAA or the Secretary, or any 
corrections required to obtain a waiver under Sec. 3282.404(f) or 
Sec. 3282.407(d), provide a complete report of the action taken to the 
SAA or the Secretary that approved the plan under Sec. 3282.404(d), 
granted the waiver, or issued the order under Sec. 3282.407(c), and to 
any other SAA or the Secretary that forwarded a relevant complaint or 
information to the manufacturer under Sec. 3282.403.



Sec. 3282.413  Replacement or repurchase of manufactured home from purchaser.

    (a) Whenever an imminent safety hazard or serious defect which must 
be corrected by the manufacturer at his expense under Sec. 3282.407 
cannot be repaired within 60 days in accordance with section 615(i) of 
the Act, the Secretary may require:
    (1) That the manufactured home be replaced by the manufacturer with 
a manufactured home substantially equal in size, equipment, and quality, 
and either new or in the same condition the defective manufactured home 
would have been in at the time of discovery of the imminent safety 
hazard or serious defect had the imminent safety hazard or serious 
defect not existed; or

[[Page 245]]

    (2) That the manufacturer take possession of the manufactured home 
and refund the purchase price in full, less a reasonable allowance for 
depreciation based on actual use if the home has been in the possession 
of the owner for more than one year. Such depreciation shall be based 
upon an appraisal system approved by the Secretary, and shall not take 
into account damage or deterioration resulting from the imminent safety 
hazard or serious defect.
    (b) In determining whether to order replacement or refund by the 
manufacturer, the Secretary shall consider:
    (1) The threat of injury or death to manufactured home occupants;
    (2) Any costs and inconvenience to manufactured home owners which 
will result from the lack of adequate repair within the specified 
period;
    (3) The expense to the manufacturer;
    (4) Any obligations imposed on the manufacturer under contract or 
other applicable law of which the Secretary has knowledge; and
    (5) Any other relevant factors which may be brought to the attention 
of the Secretary.
    (c) In those situations where, under contract or other applicable 
law, the owner has the right of election between replacement and refund, 
the manufacturer shall inform the owner of such right of election and 
shall inform the Secretary of the election, if any, by the owner.
    (d) This section applies where an attempted correction of an 
imminent safety hazard or serious defect relieves the safety problem but 
does not bring the home in conformity to the standards.
    (e) Where replacement or refund by the manufacturer is ordered under 
this section, it shall be carried out within 30 days of the Secretary's 
order to replace the manufactured home or refund the purchase price 
unless the Secretary, for good cause shown, grants an extension of time 
for implementation of such order and publishes notice of extension in 
the Federal Register.



Sec. 3282.414  Manufactured homes in the hands of dealers and distributors.

    (a) The manufacturer is responsible for correcting any failures to 
conform and imminent safety hazards which exist in manufactured homes 
which have been sold or otherwise released to a distributor or dealer 
but which have not yet been sold to a purchaser. This responsibility 
generally does not extend to failures to conform or imminent safety 
hazards that result solely from transit damage that occurs after the 
manufactured home leaves the control of the manufacturer, unless such 
transit damage is reasonably foreseeable by the manufacturer when the 
home is released by the manufacturer. This section sets out the 
procedures to be followed by dealers and distributors for handling 
manufactured homes in such cases. Regardless of whether the manufacturer 
is responsible for repairing a manufactured home, no dealer or 
distributor may sell a manufactured home if it contains a failure to 
conform or an imminent safety hazard.
    (b) Whenever a dealer or distributor finds a problem in a 
manufactured home which the manufacturer is responsible for correcting 
under paragraph (a) of this section, the dealer or distributor shall 
contact the manufacturer, provide full information concerning the 
problem, and request appropriate action by the manufacturer in accord 
with paragraph (c) of this section. Where the manufacturer agrees to 
correct, the manufacturer shall maintain a complete record of its 
actions. Where the manufacturer authorizes the dealer to make the 
necessary corrections on a reimbursable basis, the dealer or distributor 
shall maintain a complete record of its actions. Agreement by the 
manufacturer to correct or to authorize corrections on a reimbursable 
basis under this paragraph constitutes a determination of the Secretary 
for purposes of section 613(b) of the Act with respect to judicial 
review of the amount which the manufacturer agrees to reimburse the 
dealer or distributor for corrections.
    (c) Upon a final determination by the Secretary or a State 
Administration Agency under Sec. 3282.407, or upon a determination by a 
court of competent jurisdiction that a manufactured home fails to 
conform to the standard or contains an imminent safety hazard after such 
manufactured home is sold or otherwise released by a manufacturer to a 
distributor or a dealer and prior to the

[[Page 246]]

sale of such manufactured home by such distributor or dealer to a 
purchaser, the manufacturer shall have the option to either:
    (1) Immediately furnish, at the manufacturer's expense, to the 
purchasing distributor or dealer the required conforming part or parts 
or equipment for installation by the distributor or dealer on or in such 
manufactured home, and the manufacturer shall reimburse such distributor 
or dealer for the reasonable value of such installation plus a 
reasonable reimbursement of not less than one per centum per month of 
the manufacturer's or distributor's selling price prorated from the date 
of receipt by certified mail of notice of noncompliance to the date such 
manufactured home is brought into compliance with the standards, so long 
as the distributor or dealer proceeds with reasonable diligence with the 
installation after the part or component is received; or
    (2) Immediately repurchase, at the manufacturer's expense, such 
manufactured home from such distributor or dealer at the price paid by 
such distributor or dealer, plus all transportation charges involved and 
a reasonable reimbursement of not less than one per centum per month of 
such price paid prorated from the date of receipt by certified mail of 
notice of the imminent safety hazard, serious defect, defect or 
noncompliance to the distributor. The value of such reasonable 
reimbursements as specified in this paragraph shall be fixed by mutual 
agreement of the parties or by a court in an action brought under 
section 613(b) of the Act.
    (d) This section shall not apply to any manufactured home purchased 
by a dealer or distributor which has been leased by such dealer or 
distributor to a tenant for purposes other than resale. In that instance 
the dealer or distributor has the remedies available to a purchaser 
under this subpart.



Sec. 3282.415  Notices, bulletins and other communications.

    Each manufacturer shall, at the time of dispatch, furnish to the 
Secretary a true or representative copy of all notices, bulletins, and 
other written communications to the dealers or distributors of such 
manufacturer or purchasers or owners of manufactured homes of such 
manufacturers regarding any serious defect or imminent safety hazard 
which may exist in any such manufactured homes produced by such 
manufacturer. Manufacturers shall keep complete records of all other 
communications with dealers, owners, and purchasers regarding 
noncompliances, and defects.



Sec. 3282.416  Supervision of notification and correction actions.

    (a) The IPIA in each manufacturing plant shall be responsible for 
assuring that notifications are sent to all owners, purchasers, dealers, 
or distributors of whom the manufacturer has knowledge under 
Sec. 3282.211 or otherwise as required by these regulations, and the 
IFIA shall be responsible for assuring that the required corrections are 
carried out by auditing the certificates required by Sec. 3282.412.
    (b) The SAA or Secretary to which the report required by 
Sec. 3282.412(e) is sent shall be responsible for assuring through 
oversight that remedial actions described in the report have been 
carried out as described in the report.
    (c) The SAA of the state in which an affected manufactured home is 
located may inspect that manufactured home to determine whether any 
required correction is carried out to the approved plan or, if there is 
no plan, to the standards or other approval obtained by the 
manufacturer.



          Subpart J--Monitoring of Primary Inspection Agencies



Sec. 3282.451  General.

    The actions of all primary inspection agencies accepted under 
subpart H shall be monitored by the Secretary or the Secretary's agent 
to determine whether the PIAs are fulfilling their responsibilities 
under these regulations. This monitoring shall be carried out primarily 
through joint monitoring teams made up of personnel supplied by SAAs and 
by the Secretary or the Secretary's agent. Monitoring parties shall make 
recommendations to the Secretary with respect to final acceptance of 
PIAs under Secs. 3282.361(e) and 3282.362(e), continued acceptance, and

[[Page 247]]

disqualification or requalification under Sec. 3282.356, and with 
respect to any changes which PIAs should make in their operations in 
order to continue to be approved. Based on this monitoring, the 
Secretary shall determine whether PIAs should continue to be approved 
under these regulations.



Sec. 3282.452  Participation in monitoring.

    (a) Joint monitoring teams. (1) The Secretary or the Secretary's 
agent shall develop and coordinate joint monitoring teams which shall be 
made up of qualified personnel provided by SAAs and by the Secretary or 
the Secretary's agent. The Secretary or the Secretary's agent shall 
determine whether personnel are qualified based on education or 
experience.
    (2) The joint monitoring teams will operate generally on a regional 
basis. To the extent possible, the teams shall be so scheduled that 
personnel provided by an SAA will be monitoring operations in 
manufactured home plants from which manufactured homes are shipped into 
their State.
    (3) Personnel from an SAA shall not participate on joint monitoring 
teams operating within their State.
    (4) States are encouraged but not required to participate on joint 
monitoring teams.
    (b) State monitoring. A State may carry out monitoring of IPIA 
functions at plant facilities within the State if the State is not 
acting as an IPIA. Where a State wishes to carry out monitoring 
activities it shall do so in coordination with the Secretary and the 
Secretary's agent. To the extent that the State is performing adequate 
monitoring, the frequency of the joint team monitoring may be reduced to 
one visit per year consistent with the requirements of Sec. 3282.453.
    (c) Review of staff capability. The monitoring party shall review 
the capability of the PIA's staff to perform the functions it is 
required to perform.
    (d) Review of interpretations. The monitoring party shall review all 
records of interpretations of the standards made by the PIA to determine 
whether they are consistent and to determine whether there are any 
conflicts which should be referred to the Secretary for determination.
    (e) DAPIA. Monitoring parties shall review on a random basis at 
least 10 percent of the design and quality assurance manual approvals 
made by each DAPIA in each year.
    (f) IPIA. The monitoring parties shall assure that the IPIAs are 
carrying out all of the functions for which they have been accepted. In 
particular, they shall assure that the manufacturing process is as 
stated in the certification reports, that the IPIAs are carrying out the 
required number of inspections, that inspections are effective, and that 
the IPIAs are maintaining complete label control as required by 
Sec. 3282.362. A monitoring team shall monitor the IPIA's office 
procedures, files, and label control and the monitoring team shall send 
copies of its report to the Secretary or the Secretary's agent, which 
shall send copies to all monitoring teams which monitor the operations 
of the subject IPIA.
    (g) Remedial actions. The monitoring parties shall review the 
remedial action records of the manufacturers and of the primary 
inspection agencies closely to determine whether the primary inspection 
agencies have been carrying out their responsibilities with respect to 
remedial actions.



Sec. 3282.453  Frequency and extent of monitoring.

    (a) The actions of all primary inspection agencies shall be 
monitored at a frequency adequate to assure that they are performing 
consistently and fulfilling their responsibilities under these 
regulations. Every aspect of the primary inspection agencies' 
performance shall be monitored.
    (b) Frequency of monitoring. The performance of each primary 
inspection agency shall be monitored during its period of provisional 
acceptance by a complete review of its records and, in the case of IPAs, 
by a complete inspection of the operations of at least one manufacturing 
plant which it has approved or in which it is operating. After the 
initial inspection, the performance of each primary inspection agency 
shall be monitored four times per year, except that the number of 
monitoring visits may be decreased to a minimum of one per year if the 
performance of the primary inspection

[[Page 248]]

agency is deemed by the Secretary or the Secretary's agent to be 
superior, and it may be increased as necessary if performance is 
suspect. There shall be a minimum of one review per year of the records 
of each primary inspection agency, and there shall be more reviews as 
needed.



                    Subpart K--Departmental Oversight



Sec. 3282.501  General.

    The Secretary shall oversee the performance of SAAs, the Secretary's 
agent, and primary inspection agencies as follows:
    (a) The Secretary shall review SAA reports to ensure that States are 
taking appropriate actions with regard to the enforcement of the 
standards and with respect to the functions for which they are approved 
under these regulations.
    (b) The Secretary shall review monitoring reports submitted by the 
Secretary's agent to determine that it is performing in accordance with 
the contract between it and the Secretary.
    (c) The Secretary shall review monitoring reports to determine 
whether PIAs are fulfilling their responsibilities under these 
regulations.
    (d) The Secretary shall make random visits for the purpose of 
overseeing the activities of SAAs and the Secretary's agent.
    (e) The Secretary shall take such other actions to oversee the 
system established by these regulations as it deems appropriate.
    (f) All records maintained by all parties acting under these 
regulations with respect to those actions shall be available to the 
Secretary, the Secretary's agent, and where appropriate, SAAs and PIAs 
for review at any reasonable time.



Sec. 3282.502  Departmental implementation.

    To the extent that SAAs or any parties contracting with the 
Secretary do not perform functions called for under these regulations, 
those functions shall be carried out by the Secretary with its own 
personnel or through other appropriate parties.



Sec. 3282.503  Determinations and hearings.

    The Secretary shall make all the determinations and hold such 
hearings as are required by these regulations, and the Secretary shall 
resolve all disputes arising under these regulations.



              Subpart L--Manufacturer, IPIA and SAA Reports



Sec. 3282.551  Scope and purpose.

    This subpart describes the reports which shall be submitted by 
manufacturers, PIAs and SAAs as part of the system of enforcement 
established under these regulations. Additional reports described in 
subpart I are required when corrective actions are taken under that 
subpart.



Sec. 3282.552  Manufacturer reports for joint monitoring fees.

    For each month, the manufacturer shall submit to the IPIA in each of 
its manufacturing plants a report that includes the serial numbers of 
each manufactured home manufactured at that plant during that preceding 
month, and the State of first location, after leaving the manufacturing 
plant, of such manufactured homes. The State of first location for the 
purpose of this report is the State of the premises of the distributor, 
dealer or purchaser to whom the manufactured home is first shipped. The 
report for each month shall be submitted by the tenth day of the 
following month.



Sec. 3282.553  IPIA reports.

    Each IPIA shall submit by the twentieth day of each month to each 
SAA, or if no SAA to the Secretary, in each state where it is engaged in 
the inspection of manufacturing plants, a report of the operations of 
each manufacturer in that State for the preceding month which includes 
the following information:
    (a) The number of single-wide and double-wide manufactured homes 
labeled in the preceding month;
    (b) The number of inspection visits made to each manufacturing plant 
in the preceding month; and
    (c) The number of manufactured homes with a failure to conform to 
the

[[Page 249]]

standards or an imminent safety hazard during the preceding month found 
in the manufacturing plant.

The manufacturers report for the preceding month described in 
Sec. 3282.552 shall be attached to each such IPIA report as an appendix 
thereto.



Sec. 3282.554  SAA reports.

    Each SAA shall submit, prior to the last day of each month, to the 
Secretary a report covering the preceding month which includes:
    (a) The description and status of all presentations of views, 
hearings and other legal actions during the preceding month; and
    (b) The description of the SAA's oversight activities and findings 
regarding consumer complaints, notification and correction actions 
during the preceding month. The IPIA report for the preceding month 
described in Sec. 3282.553, as well as the reports described in 
Sec. 3282.413 and manufacturer reports under Sec. 3282.404(d), which 
were received during the preceding month, shall be attached to each such 
SAA report as an appendix thereto.



PART 3284--MANUFACTURED HOUSING PROGRAM FEE--Table of Contents




Sec.
3284.1  Applicability.
3284.5  Amount of fee.
3284.10  Payments to States.

    Authority: 42 U.S.C. 3535(d), 5419 and 5424.

    Source:  67 FR 52835, Aug. 13, 2002, unless otherwise noted.



Sec. 3284.1  Applicability.

    This part applies to manufacturers that are subject to the 
requirements of the National Manufactured Housing Construction and 
Safety Standards Act of 1974 (the Act), and to States having State plans 
approved in accordance with the Act. The amounts established under this 
part for any fee collected from manufacturers will be used, to the 
extent approved in advance in an annual appropriations Act, to offset 
the expenses incurred by HUD in connection with the manufactured housing 
program authorized by the Act.



Sec. 3284.5  Amount of fee.

    Each manufacturer, as defined in Sec. 3282.7 of this chapter, must 
pay a fee of $39 per transportable section of each manufactured housing 
unit that it manufactures under the requirements of part 3280 of this 
chapter.



Sec. 3284.10  Payments to States.

    Each calendar year HUD will pay each State that, on December 27, 
2000, had a State plan approved pursuant to subpart G of part 3282 of 
this chapter a total amount that is not less than the amount paid to 
that State for the 12 months ending at the close of business on December 
26, 2000.



PART 3500--REAL ESTATE SETTLEMENT PROCEDURES ACT--Table of Contents




Sec.
3500.1  Designation.
3500.2  Definitions.
3500.3  Questions or suggestions from public and copies of public 
          guidance documents.
3500.4  Reliance upon rule, regulation or interpretation by HUD.
3500.5  Coverage of RESPA.
3500.6  Special information booklet at time of loan application.
3500.7  Good faith estimate.
3500.8  Use of HUD-1 or HUD-1A settlement statements.
3500.9  Reproduction of settlement statements.
3500.10  One-day advance inspection of HUD-1 or HUD-1A settlement 
          statement; delivery; recordkeeping.
3500.11  Mailing.
3500.12  No fee.
3500.13  Relation to State laws.
3500.14  Prohibition against kickbacks and unearned fees.
3500.15  Affiliated business arrangements.
3500.16  Title companies.
3500.17  Escrow accounts.
3500.18  Validity of contracts and liens.
3500.19  Enforcement.
3500.20  [Reserved]
3500.21  Mortgage servicing transfers.

Appendix A to Part 3500--Instructions for Completing HUD-1 and HUD-1A 
          Settlement Statements; Sample HUD-1 and HUD-1A Statements
Appendix B to Part 3500--Illustrations of Requirements of RESPA
Appendix C to Part 3500--Sample Form of Good Faith Estimate
Appendix D to Part 3500--Affiliated Business Arrangement Disclosure 
          Statement Format
Appendix E to Part 3500--Arithmetic Steps

[[Page 250]]

Appendix MS-1 to Part 3500--Servicing Disclosure Statement
Appendix MS-2 to Part 3500--Notice of Assignment, Sale, or Transfer of 
          Servicing Rights

    Authority: 12 U.S.C. 2601 et seq.; 42 U.S.C. 3535(d).

    Source: 57 FR 49607, Nov. 2, 1992, unless otherwise noted. Sections 
3500.1 through 3500.19 and 3500.21 revised at 61 FR 13233, Mar. 26, 
1996.



Sec. 3500.1  Designation.

    This part may be referred to as Regulation X.



Sec. 3500.2  Definitions.

    (a) Statutory terms. All terms defined in RESPA (12 U.S.C. 2602) are 
used in accordance with their statutory meaning unless otherwise defined 
in paragraph (b) of this section or elsewhere in this part.
    (b) Other terms. As used in this part:
    Application means the submission of a borrower's financial 
information in anticipation of a credit decision, whether written or 
computer-generated, relating to a federally related mortgage loan. If 
the submission does not state or identify a specific property, the 
submission is an application for a pre-qualification and not an 
application for a federally related mortgage loan under this part. The 
subsequent addition of an identified property to the submission converts 
the submission to an application for a federally related mortgage loan.
    Business day means a day on which the offices of the business entity 
are open to the public for carrying on substantially all of the entity's 
business functions.
    Dealer means, in the case of property improvement loans, a seller, 
contractor, or supplier of goods or services. In the case of 
manufactured home loans, ``dealer'' means one who engages in the 
business of manufactured home retail sales.
    Dealer loan or dealer consumer credit contract means, generally, any 
arrangement in which a dealer assists the borrower in obtaining a 
federally related mortgage loan from the funding lender and then assigns 
the dealer's legal interests to the funding lender and receives the net 
proceeds of the loan. The funding lender is the lender for the purposes 
of the disclosure requirements of this part. If a dealer is a 
``creditor'' as defined under the definition of ``federally related 
mortgage loan'' in this part, the dealer is the lender for purposes of 
this part.
    Effective date of transfer is defined in section 6(i)(1) of RESPA 
(12 U.S.C. 2605(i)(1)). In the case of a home equity conversion mortgage 
or reverse mortgage as referenced in this section, the effective date of 
transfer is the transfer date agreed upon by the transferee servicer and 
the transferor servicer.
    Federally related mortgage loan or mortgage loan means as follows:
    (1) Any loan (other than temporary financing, such as a construction 
loan):
    (i) That is secured by a first or subordinate lien on residential 
real property, including a refinancing of any secured loan on 
residential real property upon which there is either:
    (A) Located or, following settlement, will be constructed using 
proceeds of the loan, a structure or structures designed principally for 
occupancy of from one to four families (including individual units of 
condominiums and cooperatives and including any related interests, such 
as a share in the cooperative or right to occupancy of the unit); or
    (B) Located or, following settlement, will be placed using proceeds 
of the loan, a manufactured home; and
    (ii) For which one of the following paragraphs applies. The loan:
    (A) Is made in whole or in part by any lender that is either 
regulated by or whose deposits or accounts are insured by any agency of 
the Federal Government;
    (B) Is made in whole or in part, or is insured, guaranteed, 
supplemented, or assisted in any way:
    (1) By the Secretary or any other officer or agency of the Federal 
Government; or
    (2) Under or in connection with a housing or urban development 
program administered by the Secretary or a housing or related program 
administered by any other officer or agency of the Federal Government;
    (C) Is intended to be sold by the originating lender to the Federal 
National Mortgage Association, the Government

[[Page 251]]

National Mortgage Association, the Federal Home Loan Mortgage 
Corporation (or its successors), or a financial institution from which 
the loan is to be purchased by the Federal Home Loan Mortgage 
Corporation (or its successors);
    (D) Is made in whole or in part by a ``creditor'', as defined in 
section 103(f) of the Consumer Credit Protection Act (15 U.S.C. 
1602(f)), that makes or invests in residential real estate loans 
aggregating more than $1,000,000 per year. For purposes of this 
definition, the term ``creditor'' does not include any agency or 
instrumentality of any State, and the term ``residential real estate 
loan'' means any loan secured by residential real property, including 
single-family and multifamily residential property;
    (E) Is originated either by a dealer or, if the obligation is to be 
assigned to any maker of mortgage loans specified in paragraphs (1)(ii) 
(A) through (D) of this definition, by a mortgage broker; or
    (F) Is the subject of a home equity conversion mortgage, also 
frequently called a ``reverse mortgage,'' issued by any maker of 
mortgage loans specified in paragraphs (1)(ii) (A) through (D) of this 
definition.
    (2) Any installment sales contract, land contract, or contract for 
deed on otherwise qualifying residential property is a federally related 
mortgage loan if the contract is funded in whole or in part by proceeds 
of a loan made by any maker of mortgage loans specified in paragraphs 
(1)(ii) (A) through (D) of this definition.
    (3) If the residential real property securing a mortgage loan is not 
located in a State, the loan is not a federally related mortgage loan.
    Good faith estimate means an estimate, prepared in accordance with 
section 5 of RESPA (12 U.S.C. 2604), of charges that a borrower is 
likely to incur in connection with a settlement.
    HUD-1 or HUD-1A settlement statement (also HUD-1 or HUD-1A) means 
the statement that is prescribed by the Secretary in this part for 
setting forth settlement charges in connection with either the purchase 
or the refinancing (or other subordinate lien transaction) of 1- to 4-
family residential property.
    Lender means, generally, the secured creditor or creditors named in 
the debt obligation and document creating the lien. For loans originated 
by a mortgage broker that closes a federally related mortgage loan in 
its own name in a table funding transaction, the lender is the person to 
whom the obligation is initially assigned at or after settlement. A 
lender, in connection with dealer loans, is the lender to whom the loan 
is assigned, unless the dealer meets the definition of creditor as 
defined under ``federally related mortgage loan'' in this section. See 
also Sec. 3500.5(b)(7), secondary market transactions.
    Managerial employee means an employee of a settlement service 
provider who does not routinely deal directly with consumers, and who 
either hires, directs, assigns, promotes, or rewards other employees or 
independent contractors, or is in a position to formulate, determine, or 
influence the policies of the employer. Neither the term ``managerial 
employee'' nor the term ``employee'' includes independent contractors, 
but a managerial employee may hold a real estate brokerage or agency 
license.
    Manufactured home is defined in Sec. 3280.2 of this title.
    Mortgage broker means a person (not an employee or exclusive agent 
of a lender) who brings a borrower and lender together to obtain a 
federally related mortgage loan, and who renders services as described 
in the definition of ``settlement services'' in this section. A loan 
correspondent approved under Sec. 202.8 of this title for Federal 
Housing Administration programs is a mortgage broker for purposes of 
this part.
    Mortgaged property means the real property that is security for the 
federally related mortgage loan.
    Person is defined in section 3(5) of RESPA (12 U.S.C. 2602(5)).
    Public Guidance Documents means documents that HUD has published in 
the Federal Register, and that it may amend from time-to-time by 
publication in the Federal Register. These documents are also available 
from HUD at the address indicated in 24 CFR 3500.3.

[[Page 252]]

    Refinancing means a transaction in which an existing obligation that 
was subject to a secured lien on residential real property is satisfied 
and replaced by a new obligation undertaken by the same borrower and 
with the same or a new lender. The following shall not be treated as a 
refinancing, even when the existing obligation is satisfied and replaced 
by a new obligation with the same lender (this definition of 
``refinancing'' as to transactions with the same lender is similar to 
Regulation Z, 12 CFR 226.20(a)):
    (1) A renewal of a single payment obligation with no change in the 
original terms;
    (2) A reduction in the annual percentage rate as computed under the 
Truth in Lending Act with a corresponding change in the payment 
schedule;
    (3) An agreement involving a court proceeding;
    (4) A workout agreement, in which a change in the payment schedule 
or change in collateral requirements is agreed to as a result of the 
consumer's default or delinquency, unless the rate is increased or the 
new amount financed exceeds the unpaid balance plus earned finance 
charges and premiums for continuation of allowable insurance; and
    (5) The renewal of optional insurance purchased by the consumer that 
is added to an existing transaction, if disclosures relating to the 
initial purchase were provided.
    Regulation Z means the regulations issued by the Board of Governors 
of the Federal Reserve System (12 CFR part 226) to implement the Federal 
Truth in Lending Act (15 U.S.C. 1601 et seq.), and includes the 
Commentary on Regulation Z.
    Required use means a situation in which a person must use a 
particular provider of a settlement service in order to have access to 
some distinct service or property, and the person will pay for the 
settlement service of the particular provider or will pay a charge 
attributable, in whole or in part, to the settlement service. However, 
the offering of a package (or combination of settlement services) or the 
offering of discounts or rebates to consumers for the purchase of 
multiple settlement services does not constitute a required use. Any 
package or discount must be optional to the purchaser. The discount must 
be a true discount below the prices that are otherwise generally 
available, and must not be made up by higher costs elsewhere in the 
settlement process.
    RESPA means the Real Estate Settlement Procedures Act of 1974, 12 
U.S.C. 2601 et seq.
    Servicer means the person responsible for the servicing of a 
mortgage loan (including the person who makes or holds a mortgage loan 
if such person also services the mortgage loan). The term does not 
include:
    (1) The Federal Deposit Insurance Corporation (FDIC) or the 
Resolution Trust Corporation (RTC), in connection with assets acquired, 
assigned, sold, or transferred pursuant to section 13(c) of the Federal 
Deposit Insurance Act or as receiver or conservator of an insured 
depository institution; and
    (2) The Federal National Mortgage Corporation (FNMA); the Federal 
Home Loan Mortgage Corporation (Freddie Mac); the RTC; the FDIC; HUD, 
including the Government National Mortgage Association (GNMA) and the 
Federal Housing Administration (FHA) (including cases in which a 
mortgage insured under the National Housing Act (12 U.S.C. 1701 et seq.) 
is assigned to HUD); the National Credit Union Administration (NCUA); 
the Farmers Home Administration or its successor agency under Public Law 
103-354 (FmHA); and the Department of Veterans Affairs (VA), in any case 
in which the assignment, sale, or transfer of the servicing of the 
mortgage loan is preceded by termination of the contract for servicing 
the loan for cause, commencement of proceedings for bankruptcy of the 
servicer, or commencement of proceedings by the FDIC or RTC for 
conservatorship or receivership of the servicer (or an entity by which 
the servicer is owned or controlled).
    Servicing means receiving any scheduled periodic payments from a 
borrower pursuant to the terms of any mortgage loan, including amounts 
for escrow accounts under section 10 of RESPA (12 U.S.C. 2609), and 
making the payments to the owner of the loan or

[[Page 253]]

other third parties of principal and interest and such other payments 
with respect to the amounts received from the borrower as may be 
required pursuant to the terms of the mortgage servicing loan documents 
or servicing contract. In the case of a home equity conversion mortgage 
or reverse mortgage as referenced in this section, servicing includes 
making payments to the borrower.
    Settlement means the process of executing legally binding documents 
regarding a lien on property that is subject to a federally related 
mortgage loan. This process may also be called ``closing'' or ``escrow'' 
in different jurisdictions.
    Settlement service means any service provided in connection with a 
prospective or actual settlement, including, but not limited to, any one 
or more of the following:
    (1) Origination of a federally related mortgage loan (including, but 
not limited to, the taking of loan applications, loan processing, and 
the underwriting and funding of such loans);
    (2) Rendering of services by a mortgage broker (including 
counseling, taking of applications, obtaining verifications and 
appraisals, and other loan processing and origination services, and 
communicating with the borrower and lender);
    (3) Provision of any services related to the origination, processing 
or funding of a federally related mortgage loan;
    (4) Provision of title services, including title searches, title 
examinations, abstract preparation, insurability determinations, and the 
issuance of title commitments and title insurance policies;
    (5) Rendering of services by an attorney;
    (6) Preparation of documents, including notarization, delivery, and 
recordation;
    (7) Rendering of credit reports and appraisals;
    (8) Rendering of inspections, including inspections required by 
applicable law or any inspections required by the sales contract or 
mortgage documents prior to transfer of title;
    (9) Conducting of settlement by a settlement agent and any related 
services;
    (10) Provision of services involving mortgage insurance;
    (11) Provision of services involving hazard, flood, or other 
casualty insurance or homeowner's warranties;
    (12) Provision of services involving mortgage life, disability, or 
similar insurance designed to pay a mortgage loan upon disability or 
death of a borrower, but only if such insurance is required by the 
lender as a condition of the loan;
    (13) Provision of services involving real property taxes or any 
other assessments or charges on the real property;
    (14) Rendering of services by a real estate agent or real estate 
broker; and
    (15) Provision of any other services for which a settlement service 
provider requires a borrower or seller to pay.
    Special information booklet means the booklet prepared by the 
Secretary pursuant to section 5 of RESPA (12 U.S.C. 2604) to help 
persons understand the nature and costs of settlement services. The 
Secretary publishes the form of the special information booklet in the 
Federal Register. The Secretary may issue or approve additional booklets 
or alternative booklets by publication of a Notice in the Federal 
Register.
    State means any State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, and any territory or 
possession of the United States.
    Table funding means a settlement at which a loan is funded by a 
contemporaneous advance of loan funds and an assignment of the loan to 
the person advancing the funds. A table-funded transaction is not a 
secondary market transaction (see Sec. 3500.5(b)(7)).
    Title company means any institution, or its duly authorized agent, 
that is qualified to issue title insurance.

[61 FR 13233, Mar. 26, 1996, as amended at 61 FR 29252, June 7, 1996; 61 
FR 58475, Nov. 15, 1996; 62 FR 20088, Apr. 24, 1997]

    Effective Date Note: At 61 FR 29252, June 7, 1996, Sec. 3500.2(b) 
was amended by adding a definition of ``managerial employee'', effective 
Oct. 7, 1996. At 61 FR 51782, Oct. 4, 1996, the effective date was 
delayed until further notice.

[[Page 254]]



Sec. 3500.3  Questions or suggestions from public and copies of public guidance documents.

    Any questions or suggestions from the public regarding RESPA, or 
requests for copies of HUD Public Guidance Documents, should be directed 
to the Director, Office of Consumer and Regulatory Affairs, Department 
of Housing and Urban Development, 451 Seventh Street SW., Washington, DC 
20410-8000, rather than to HUD field offices. Legal questions may be 
directed to the Assistant General Counsel, GSE/RESPA Division, at this 
address.



Sec. 3500.4  Reliance upon rule, regulation or interpretation by HUD.

    (a) Rule, regulation or interpretation. (1) For purposes of sections 
19 (a) and (b) of RESPA (12 U.S.C. 2617 (a) and (b)) only the following 
constitute a rule, regulation or interpretation of the Secretary:
    (i) All provisions, including appendices, of this part. Any other 
document referred to in this part is not incorporated in this part 
unless it is specifically set out in this part;
    (ii) Any other document that is published in the Federal Register by 
the Secretary and states that it is an ``interpretation,'' 
``interpretive rule,'' ``commentary,'' or a ``statement of policy'' for 
purposes of section 19(a) of RESPA. Such documents will be prepared by 
HUD staff and counsel. Such documents may be revoked or amended by a 
subsequent document published in the Federal Register by the Secretary.
    (2) A ``rule, regulation, or interpretation thereof by the 
Secretary'' for purposes of section 19(b) of RESPA (12 U.S.C. 2617(b)) 
shall not include the special information booklet prescribed by the 
Secretary or any other statement or issuance, whether oral or written, 
by an officer or representative of the Department of Housing and Urban 
Development (HUD), letter or memorandum by the Secretary, General 
Counsel, any Assistant Secretary or other officer or employee of HUD, 
preamble to a regulation or other issuance of HUD, Public Guidance 
Document, report to Congress, pleading, affidavit or other document in 
litigation, pamphlet, handbook, guide, telegraphic communication, 
explanation, instructions to forms, speech or other material of any 
nature which is not specifically included in paragraph (a)(1) of this 
section.
    (b) Unofficial interpretations; staff discretion. In response to 
requests for interpretation of matters not adequately covered by this 
part or by an official interpretation issued under paragraph (a)(1)(ii) 
of this section, unofficial staff interpretations may be provided at the 
discretion of HUD staff or counsel. Written requests for such 
interpretations should be directed to the address indicated in 
Sec. 3500.3. Such interpretations provide no protection under section 
19(b) of RESPA (12 U.S.C. 2617(b)). Ordinarily, staff or counsel will 
not issue unofficial interpretations on matters adequately covered by 
this part or by official interpretations or commentaries issued under 
paragraph (a)(1)(ii) of this section.
    (c) All informal counsel's opinions and staff interpretations issued 
before November 2, 1992, were withdrawn as of that date. Courts and 
administrative agencies, however, may use previous opinions to determine 
the validity of conduct under the previous Regulation X.



Sec. 3500.5  Coverage of RESPA.

    (a) Applicability. RESPA and this part apply to all federally 
related mortgage loans, except for the exemptions provided in paragraph 
(b) of this section.
    (b) Exemptions. (1) A loan on property of 25 acres or more.
    (2) Business purpose loans. An extension of credit primarily for a 
business, commercial, or agricultural purpose, as defined by Regulation 
Z, 12 CFR 226.3(a)(1). Persons may rely on Regulation Z in determining 
whether the exemption applies.
    (3) Temporary financing. Temporary financing, such as a construction 
loan. The exemption for temporary financing does not apply to a loan 
made to finance construction of 1- to 4-family residential property if 
the loan is used as, or may be converted to, permanent financing by the 
same lender or is used to finance transfer of title to the first user. 
If a lender issues a commitment for permanent financing, with or without 
conditions, the loan is covered by

[[Page 255]]

this part. Any construction loan for new or rehabilitated 1- to 4-family 
residential property, other than a loan to a bona fide builder (a person 
who regularly constructs 1- to 4-family residential structures for sale 
or lease), is subject to this part if its term is for two years or more. 
A ``bridge loan'' or ``swing loan'' in which a lender takes a security 
interest in otherwise covered 1- to 4-family residential property is not 
covered by RESPA and this part.
    (4) Vacant land. Any loan secured by vacant or unimproved property, 
unless within two years from the date of the settlement of the loan, a 
structure or a manufactured home will be constructed or placed on the 
real property using the loan proceeds. If a loan for a structure or 
manufactured home to be placed on vacant or unimproved property will be 
secured by a lien on that property, the transaction is covered by this 
part.
    (5) Assumption without lender approval. Any assumption in which the 
lender does not have the right expressly to approve a subsequent person 
as the borrower on an existing federally related mortgage loan. Any 
assumption in which the lender's permission is both required and 
obtained is covered by RESPA and this part, whether or not the lender 
charges a fee for the assumption.
    (6) Loan conversions. Any conversion of a federally related mortgage 
loan to different terms that are consistent with provisions of the 
original mortgage instrument, as long as a new note is not required, 
even if the lender charges an additional fee for the conversion.
    (7) Secondary market transactions. A bona fide transfer of a loan 
obligation in the secondary market is not covered by RESPA and this 
part, except as set forth in section 6 of RESPA (12 U.S.C. 2605) and 
Sec. 3500.21. In determining what constitutes a bona fide transfer, HUD 
will consider the real source of funding and the real interest of the 
funding lender. Mortgage broker transactions that are table-funded are 
not secondary market transactions. Neither the creation of a dealer loan 
or dealer consumer credit contract, nor the first assignment of such 
loan or contract to a lender, is a secondary market transaction (see 
Sec. 3500.2.)

[61 FR 13233, Mar. 26, 1996, as amended at 61 FR 58475, Nov. 15, 1996]



Sec. 3500.6  Special information booklet at time of loan application.

    (a) Lender to provide special information booklet. Subject to the 
exceptions set forth in this paragraph, the lender shall provide a copy 
of the special information booklet to a person from whom the lender 
receives, or for whom the lender prepares, a written application for a 
federally related mortgage loan. When two or more persons apply together 
for a loan, the lender is in compliance if the lender provides a copy of 
the booklet to one of the persons applying.
    (1) The lender shall provide the special information booklet by 
delivering it or placing it in the mail to the applicant not later than 
three business days (as that term is defined in Sec. 3500.2) after the 
application is received or prepared. However, if the lender denies the 
borrower's application for credit before the end of the three-business-
day period, then the lender need not provide the booklet to the 
borrower. If a borrower uses a mortgage broker, the mortgage broker 
shall distribute the special information booklet and the lender need not 
do so. The intent of this provision is that the applicant receive the 
special information booklet at the earliest possible date.
    (2) In the case of a federally related mortgage loan involving an 
open-ended credit plan, as defined in Sec. 226.2(a)(20) of Regulation Z 
(12 CFR), a lender or mortgage broker that provides the borrower with a 
copy of the brochure entitled ``When Your Home is On the Line: What You 
Should Know About Home Equity Lines of Credit'', or any successor 
brochure issued by the Board of Governors of the Federal Reserve System, 
is deemed to be in compliance with this section.
    (3) In the categories of transactions set forth at the end of this 
paragraph, the lender or mortgage broker does not have to provide the 
booklet to the borrower. Under the authority of section 19(a) of RESPA 
(12 U.S.C. 2617(a)), the Secretary may issue a revised or separate 
special information booklet that

[[Page 256]]

deals with these transactions, or the Secretary may chose to endorse the 
forms or booklets of other Federal agencies. In such an event, the 
requirements for delivery by lenders and the availability of the booklet 
or alternate materials for these transactions will be set forth in a 
Notice in the Federal Register. This paragraph shall apply to the 
following transactions:
    (i) Refinancing transactions;
    (ii) Closed-end loans, as defined in 12 CFR 226.2(a)(10) of 
Regulation Z, when the lender takes a subordinate lien;
    (iii) Reverse mortgages; and
    (iv) Any other federally related mortgage loan whose purpose is not 
the purchase of a 1- to 4-family residential property.
    (b) Revision. The Secretary may from time to time revise the special 
information booklet by publishing a notice in the Federal Register.
    (c) Reproduction. The special information booklet may be reproduced 
in any form, provided that no change is made other than as provided 
under paragraph (d) of this section. The special information booklet may 
not be made a part of a larger document for purposes of distribution 
under RESPA and this section. Any color, size and quality of paper, type 
of print, and method of reproduction may be used so long as the booklet 
is clearly legible.
    (d) Permissible changes. (1) No changes to, deletions from, or 
additions to the special information booklet currently prescribed by the 
Secretary shall be made other than those specified in this paragraph (d) 
or any others approved in writing by the Secretary. A request to the 
Secretary for approval of any changes shall be submitted in writing to 
the address indicated in Sec. 3500.3, stating the reasons why the 
applicant believes such changes, deletions or additions are necessary.
    (2) The cover of the booklet may be in any form and may contain any 
drawings, pictures or artwork, provided that the words ``settlement 
costs'' are used in the title. Names, addresses and telephone numbers of 
the lender or others and similar information may appear on the cover, 
but no discussion of the matters covered in the booklet shall appear on 
the cover.
    (3) The special information booklet may be translated into languages 
other than English.



Sec. 3500.7  Good faith estimate.

    (a) Lender to provide. Except as provided in this paragraph (a) or 
paragraph (f) of this section, the lender shall provide all applicants 
for a federally related mortgage loan with a good faith estimate of the 
amount of or range of charges for the specific settlement services the 
borrower is likely to incur in connection with the settlement. The 
lender shall provide the good faith estimate required under this section 
(a suggested format is set forth in appendix C of this part) either by 
delivering the good faith estimate or by placing it in the mail to the 
loan applicant, not later than three business days after the application 
is received or prepared.
    (1) If the lender denies the application for a federally related 
mortgage loan before the end of the three-business-day period, the 
lender need not provide the denied borrower with a good faith estimate.
    (2) For ``no cost'' or ``no point'' loans, the charges to be shown 
on the good faith estimate include any payments to be made to affiliated 
or independent settlement service providers. These payments should be 
shown as P.O.C. (Paid Outside of Closing) on the Good Faith Estimate and 
the HUD-1 or HUD-1A.
    (3) In the case of dealer loans, the lender is responsible for 
provision of the good faith estimate, either directly or by the dealer.
    (4) If a mortgage broker is the exclusive agent of the lender, 
either the lender or the mortgage broker shall provide the good faith 
estimate within three business days after the mortgage broker receives 
or prepares the application.
    (b) Mortgage broker to provide. In the event an application is 
received by a mortgage broker who is not an exclusive agent of the 
lender, the mortgage broker must provide a good faith estimate within 
three days of receiving a loan application based on his or her knowledge 
of the range of costs (a suggested format is set forth in appendix C of 
this part). As long as the mortgage

[[Page 257]]

broker has provided the good faith estimate, the funding lender is not 
required to provide an additional good faith estimate, but the funding 
lender is responsible for ascertaining that the good faith estimate has 
been delivered. If the application for mortgage credit is denied before 
the end of the three-business-day period, the mortgage broker need not 
provide the denied borrower with a good faith estimate.
    (c) Content of good faith estimate. A good faith estimate consists 
of an estimate, as a dollar amount or range, of each charge which:
    (1) Will be listed in section L of the HUD-1 or HUD-1A in accordance 
with the instructions set forth in appendix A to this part; and
    (2) That the borrower will normally pay or incur at or before 
settlement based upon common practice in the locality of the mortgaged 
property. Each such estimate must be made in good faith and bear a 
reasonable relationship to the charge a borrower is likely to be 
required to pay at settlement, and must be based upon experience in the 
locality of the mortgaged property. As to each charge with respect to 
which the lender requires a particular settlement service provider to be 
used, the lender shall make its estimate based upon the lender's 
knowledge of the amounts charged by such provider.
    (d) Form of good faith estimate. A suggested good faith estimate 
form is set forth in appendix C to this part and is in compliance with 
the requirements of the Act except for any additional requirements of 
paragraph (e) of this section. The good faith estimate may be provided 
together with disclosures required by the Truth in Lending Act, 15 
U.S.C. 1601 et seq., so long as all required material for the good faith 
estimate is grouped together. The lender may include additional relevant 
information, such as the name/signature of the applicant and loan 
officer, date, and information identifying the loan application and 
property, as long as the form remains clear and concise and the 
additional information is not more prominent than the required material.
    (e) Particular providers required by lender. (1) If the lender 
requires the use (see Sec. 3500.2, ``required use'') of a particular 
provider of a settlement service, other than the lender's own employees, 
and also requires the borrower to pay any portion of the cost of such 
service, then the good faith estimate must:
    (i) Clearly state that use of the particular provider is required 
and that the estimate is based on the charges of the designated 
provider;
    (ii) Give the name, address, and telephone number of each provider; 
and
    (iii) Describe the nature of any relationship between each such 
provider and the lender. Plain English references to the relationship 
should be utilized, e.g., ``X is a depositor of the lender,'' ``X is a 
borrower from the lender,'' ``X has performed 60% of the lender's 
settlements in the past year.'' (The lender is not required to keep 
detailed records of the percentages of use. Similar language, such as 
``X was used [regularly] [frequently] in our settlements the past year'' 
is also sufficient for the purposes of this paragraph.) In the event 
that more than one relationship exists, each should be disclosed.
    (2) For purposes of paragraph (e)(1) of this section, a 
``relationship'' exists if:
    (i) The provider is an associate of the lender, as that term is 
defined in 12 U.S.C. 2602(8);
    (ii) Within the last 12 months, the provider has maintained an 
account with the lender or had an outstanding loan or credit arrangement 
with the lender; or
    (iii) The lender has repeatedly used or required borrowers to use 
the services of the provider within the last 12 months.
    (3) Except for a provider that is the lender's chosen attorney, 
credit reporting agency, or appraiser, if the lender is in an affiliated 
business relationship (see Sec. 3500.15) with a provider, the lender may 
not require the use of that provider.
    (4) If the lender maintains a controlled list of required providers 
(five or more for each discrete service) or relies on a list maintained 
by others, and at the time of application the lender has not yet decided 
which provider will be selected from that list, then the lender may 
satisfy the requirements of this section if the lender:

[[Page 258]]

    (i) Provides the borrower with a written statement that the lender 
will require a particular provider from a lender-controlled or -approved 
list; and
    (ii) Provides the borrower in the Good Faith Estimate the range of 
costs for the required provider(s), and provides the name of the 
specific provider and the actual cost on the HUD-1 or HUD-1A.
    (f) Open-end lines of credit (home-equity plans) under Truth in 
Lending Act. In the case of a federally related mortgage loan involving 
an open-end line of credit (home-equity plan) covered under the Truth in 
Lending Act and Regulation Z, a lender or mortgage broker that provides 
the borrower with the disclosures required by 12 CFR 226.5b of 
Regulation Z at the time the borrower applies for such loan shall be 
deemed to satisfy the requirements of this section.

(Approved by the Office of Management and Budget under control number 
2502-0265)

[61 FR 13233, Mar. 26, 1996, as amended at 61 FR 58476, Nov. 15, 1996]



Sec. 3500.8  Use of HUD-1 or HUD-1A settlement statements.

    (a) Use by settlement agent. The settlement agent shall use the HUD-
1 settlement statement in every settlement involving a federally related 
mortgage loan in which there is a borrower and a seller. For 
transactions in which there is a borrower and no seller, such as 
refinancing loans or subordinate lien loans, the HUD-1 may be utilized 
by using the borrower's side of the HUD-1 statement. Alternatively, the 
form HUD-1A may be used for these transactions. Either the HUD-1 or the 
HUD-1A, as appropriate, shall be used for every RESPA-covered 
transaction, unless its use is specifically exempted, but the HUD-1 or 
HUD-1A may be modified as permitted under this part. The use of the HUD-
1 or HUD-1A is exempted for open-end lines of credit (home-equity plans) 
covered by the Truth in Lending Act and Regulation Z.
    (b) Charges to be stated. The settlement agent shall complete the 
HUD-1 or HUD-1A in accordance with the instructions set forth in 
appendix A to this part.
    (c) Aggregate accounting at settlement. (1) After itemizing 
individual deposits in the 1000 series using single-item accounting, the 
servicer shall make an adjustment based on aggregate accounting. This 
adjustment equals the difference in the deposit required under aggregate 
accounting and the sum of the deposits required under single-item 
accounting. The computation steps for both accounting methods are set 
out in Sec. 3500.17(d). The adjustment will always be a negative number 
or zero (-0-). The settlement agent shall enter the aggregate adjustment 
amount on a final line in the 1000 series of the HUD-1 or HUD-1A 
statement.
    (2) During the phase-in period, as defined in Sec. 3500.17(b), an 
alternative procedure is available. The settlement agent may initially 
calculate the 1000 series deposits for the HUD-1 and HUD-1A settlement 
statement using single-item analysis with only a one-month cushion 
(unless the mortgage loan documents indicate a smaller amount). In the 
escrow account analysis conducted within 45 days of settlement, however, 
the servicer shall adjust the escrow account to reflect the aggregate 
accounting balance. Appendix E to this part sets out examples of 
aggregate analysis. Appendix A to this part contains instructions for 
completing the HUD-1 or HUD-1A settlement statements using an aggregate 
analysis adjustment and the alternative process during the phase-in 
period.

(Approved by the Office of Management and Budget under control numbers 
2502-0265 and 2502-0491)

[61 FR 13233, Mar. 26, 1996, as amended at 61 FR 58476, Nov. 15, 1996]



Sec. 3500.9  Reproduction of settlement statements.

    (a) Permissible changes--HUD-1. The following changes and insertions 
are permitted when the HUD-1 settlement statement is reproduced:
    (1) The person reproducing the HUD-1 may insert its business name 
and logotype in section A and may rearrange, but not delete, the other 
information that appears in section A.
    (2) The name, address, and other information regarding the lender 
and settlement agent may be printed in sections F and H, respectively.

[[Page 259]]

    (3) Reproduction of the HUD-1 must conform to the terminology, 
sequence, and numbering of line items as presented in lines 100-1400. 
However, blank lines or items listed in lines 100-1400 that are not used 
locally or in connection with mortgages by the lender may be deleted, 
except for the following: Lines 100, 120, 200, 220, 300, 301, 302, 303, 
400, 420, 500, 520, 600, 601, 602, 603, 700, 800, 900, 1000, 1100, 1200, 
1300, and 1400. The form may be shortened correspondingly. The number of 
a deleted item shall not be used for a substitute or new item, but the 
number of a blank space on the HUD-1 may be used for a substitute or new 
item.
    (4) Charges not listed on the HUD-1, but that are customary locally 
or pursuant to the lender's practice, may be inserted in blank spaces. 
Where existing blank spaces on the HUD-1 are insufficient, additional 
lines and spaces may be added and numbered in sequence with spaces on 
the HUD-1.
    (5) The following variations in layout and format are within the 
discretion of persons reproducing the HUD-1 and do not require prior HUD 
approval: size of pages; tint or color of pages; size and style of type 
or print; vertical spacing between lines or provision for additional 
horizontal space on lines (for example, to provide sufficient space for 
recording time periods used in prorations); printing of the HUD-1 
contents on separate pages, on the front and back of a single page, or 
on one continuous page; use of multicopy tear-out sets; printing on 
rolls for computer purposes; reorganization of sections B through I, 
when necessary to accommodate computer printing; and manner of placement 
of the HUD number, but not the OMB approval number, neither of which may 
be deleted. The designation of the expiration date of the OMB number may 
be deleted. Any changes in the HUD number or OMB approval number may be 
announced by notice in the Federal Register, rather than by amendment of 
this part.
    (6) The borrower's information and the seller's information may be 
provided on separate pages.
    (7) Signature lines may be added.
    (8) The HUD-1 may be translated into languages other than English.
    (9) An additional page may be attached to the HUD-1 for the purpose 
of including customary recitals and information used locally in real 
estate settlements; for example, breakdown of payoff figures, a 
breakdown of the borrower's total monthly mortgage payments, check 
disbursements, a statement indicating receipt of funds, applicable 
special stipulations between buyer and seller, and the date funds are 
transferred. If space permits, such information may be added at the end 
of the HUD-1.
    (10) As required by HUD/FHA in FHA-insured loans.
    (11) As allowed by Sec. 3500.17, relating to an initial escrow 
account statement.
    (b) Permissible changes--HUD-1A. The changes and insertions on the 
HUD-1 permitted under paragraph (a) of this section are also permitted 
when the HUD-1A settlement statement is reproduced, except the changes 
described in paragraphs (a)(3) and (6) of this section.
    (c) Written approval. Any other deviation in the HUD-1 or HUD-1A 
forms is permissible only upon receipt of written approval of the 
Secretary. A request to the Secretary for approval shall be submitted in 
writing to the address indicated in Sec. 3500.3 and shall state the 
reasons why the applicant believes such deviation is needed. The 
prescribed form(s) must be used until approval is received.

(Approved by the Office of Management and Budget under control numbers 
2502-0265 and 2502-0491)



Sec. 3500.10  One-day advance inspection of HUD-1 or HUD-1A settlement statement; delivery; recordkeeping.

    (a) Inspection one day prior to settlement upon request by the 
borrower. The settlement agent shall permit the borrower to inspect the 
HUD-1 or HUD-1A settlement statement, completed to set forth those items 
that are known to the settlement agent at the time of inspection, during 
the business day immediately preceding settlement. Items related only to 
the seller's transaction may be omitted from the HUD-1.
    (b) Delivery. The settlement agent shall provide a completed HUD-1 
or HUD-1A to the borrower, the seller (if there is one), the lender (if 
the lender is not the settlement agent), and/or

[[Page 260]]

their agents. When the borrower's and seller's copies of the HUD-1 or 
HUD-1A differ as permitted by the instructions in appendix A to this 
part, both copies shall be provided to the lender (if the lender is not 
the settlement agent). The settlement agent shall deliver the completed 
HUD-1 or HUD-1A at or before the settlement, except as provided in 
paragraphs (c) and (d) of this section.
    (c) Waiver. The borrower may waive the right to delivery of the 
completed HUD-1 or HUD-1A no later than at settlement by executing a 
written waiver at or before settlement. In such case, the completed HUD-
1 or HUD-1A shall be mailed or delivered to the borrower, seller, and 
lender (if the lender is not the settlement agent) as soon as 
practicable after settlement.
    (d) Exempt transactions. When the borrower or the borrower's agent 
does not attend the settlement, or when the settlement agent does not 
conduct a meeting of the parties for that purpose, the transaction shall 
be exempt from the requirements of paragraphs (a) and (b) of this 
section, except that the HUD-1 or HUD-1A shall be mailed or delivered as 
soon as practicable after settlement.
    (e) Recordkeeping. The lender shall retain each completed HUD-1 or 
HUD-1A and related documents for five years after settlement, unless the 
lender disposes of its interest in the mortgage and does not service the 
mortgage. In that case, the lender shall provide its copy of the HUD-1 
or HUD-1A to the owner or servicer of the mortgage as a part of the 
transfer of the loan file. Such owner or servicer shall retain the HUD-1 
or HUD-1A for the remainder of the five-year period. The Secretary shall 
have the right to inspect or require copies of records covered by this 
paragraph (e).

(Approved by the Office of Management and Budget under control number 
2502-0265)



Sec. 3500.11  Mailing.

    The provisions of this part requiring or permitting mailing of 
documents shall be deemed to be satisfied by placing the document in the 
mail (whether or not received by the addressee) addressed to the 
addresses stated in the loan application or in other information 
submitted to or obtained by the lender at the time of loan application 
or submitted or obtained by the lender or settlement agent, except that 
a revised address shall be used where the lender or settlement agent has 
been expressly informed in writing of a change in address.



Sec. 3500.12  No fee.

    No fee shall be imposed or charge made upon any other person, as a 
part of settlement costs or otherwise, by a lender in connection with a 
federally related mortgage loan made by it (or a loan for the purchase 
of a manufactured home), or by a servicer (as that term is defined under 
12 U.S.C. 2605(i)(2)) for or on account of the preparation and 
distribution of the HUD-1 or HUD-1A settlement statement, escrow account 
statements required pursuant to section 10 of RESPA (12 U.S.C. 2609), or 
statements required by the Truth in Lending Act, 15 U.S.C. 1601 et seq.



Sec. 3500.13  Relation to State laws.

    (a) State laws that are inconsistent with RESPA or this part are 
preempted to the extent of the inconsistency. However, RESPA and these 
regulations do not annul, alter, affect, or exempt any person subject to 
their provisions from complying with the laws of any State with respect 
to settlement practices, except to the extent of the inconsistency.
    (b) Upon request by any person, the Secretary is authorized to 
determine if inconsistencies with State law exist; in doing so, the 
Secretary shall consult with appropriate Federal agencies.
    (1) The Secretary may not determine that a State law or regulation 
is inconsistent with any provision of RESPA or this part, if the 
Secretary determines that such law or regulation gives greater 
protection to the consumer.
    (2) In determining whether provisions of State law or regulations 
concerning affiliated business arrangements are inconsistent with RESPA 
or this part, the Secretary may not construe those provisions that 
impose more stringent limitations on affiliated business arrangements as 
inconsistent with

[[Page 261]]

RESPA so long as they give more protection to consumers and/or 
competition.
    (c) Any person may request the Secretary to determine whether an 
inconsistency exists by submitting to the address indicated in 
Sec. 3500.3, a copy of the State law in question, any other law or 
judicial or administrative opinion that implements, interprets or 
applies the relevant provision, and an explanation of the possible 
inconsistency. A determination by the Secretary that an inconsistency 
with State law exists will be made by publication of a notice in the 
Federal Register. ``Law'' as used in this section includes regulations 
and any enactment which has the force and effect of law and is issued by 
a State or any political subdivision of a State.
    (d) A specific preemption of conflicting State laws regarding 
notices and disclosures of mortgage servicing transfers is set forth in 
Sec. 3500.21(h).

[61 FR 13233, Mar. 26, 1996, as amended at 61 FR 58476, Nov. 15, 1996]



Sec. 3500.14  Prohibition against kickbacks and unearned fees.

    (a) Section 8 violation. Any violation of this section is a 
violation of section 8 of RESPA (12 U.S.C. 2607) and is subject to 
enforcement as such under Sec. 3500.19.
    (b) No referral fees. No person shall give and no person shall 
accept any fee, kickback or other thing of value pursuant to any 
agreement or understanding, oral or otherwise, that business incident to 
or part of a settlement service involving a federally related mortgage 
loan shall be referred to any person. Any referral of a settlement 
service is not a compensable service, except as set forth in 
Sec. 3500.14(g)(1). A company may not pay any other company or the 
employees of any other company for the referral of settlement service 
business.
    (c) No split of charges except for actual services performed. No 
person shall give and no person shall accept any portion, split, or 
percentage of any charge made or received for the rendering of a 
settlement service in connection with a transaction involving a 
federally related mortgage loan other than for services actually 
performed. A charge by a person for which no or nominal services are 
performed or for which duplicative fees are charged is an unearned fee 
and violates this section. The source of the payment does not determine 
whether or not a service is compensable. Nor may the prohibitions of 
this part be avoided by creating an arrangement wherein the purchaser of 
services splits the fee.
    (d) Thing of value. This term is broadly defined in section 3(2) of 
RESPA (12 U.S.C. 2602(2)). It includes, without limitation, monies, 
things, discounts, salaries, commissions, fees, duplicate payments of a 
charge, stock, dividends, distributions of partnership profits, 
franchise royalties, credits representing monies that may be paid at a 
future date, the opportunity to participate in a money-making program, 
retained or increased earnings, increased equity in a parent or 
subsidiary entity, special bank deposits or accounts, special or unusual 
banking terms, services of all types at special or free rates, sales or 
rentals at special prices or rates, lease or rental payments based in 
whole or in part on the amount of business referred, trips and payment 
of another person's expenses, or reduction in credit against an existing 
obligation. The term ``payment'' is used throughout Secs. 3500.14 and 
3500.15 as synonymous with the giving or receiving any ``thing of 
value'' and does not require transfer of money.
    (e) Agreement or understanding. An agreement or understanding for 
the referral of business incident to or part of a settlement service 
need not be written or verbalized but may be established by a practice, 
pattern or course of conduct. When a thing of value is received 
repeatedly and is connected in any way with the volume or value of the 
business referred, the receipt of the thing of value is evidence that it 
is made pursuant to an agreement or understanding for the referral of 
business.
    (f) Referral. (1) A referral includes any oral or written action 
directed to a person which has the effect of affirmatively influencing 
the selection by any person of a provider of a settlement service or 
business incident to or part of a settlement service when such person 
will pay for such settlement service or business incident thereto or pay

[[Page 262]]

a charge attributable in whole or in part to such settlement service or 
business.
    (2) A referral also occurs whenever a person paying for a settlement 
service or business incident thereto is required to use (see 
Sec. 3500.2, ``required use'') a particular provider of a settlement 
service or business incident thereto.
    (g) Fees, salaries, compensation, or other payments. (1) Section 8 
of RESPA permits:
    (i) A payment to an attorney at law for services actually rendered;
    (ii) A payment by a title company to its duly appointed agent for 
services actually performed in the issuance of a policy of title 
insurance;
    (iii) A payment by a lender to its duly appointed agent or 
contractor for services actually performed in the origination, 
processing, or funding of a loan;
    (iv) A payment to any person of a bona fide salary or compensation 
or other payment for goods or facilities actually furnished or for 
services actually performed;
    (v) A payment pursuant to cooperative brokerage and referral 
arrangements or agreements between real estate agents and real estate 
brokers. (The statutory exemption restated in this paragraph refers only 
to fee divisions within real estate brokerage arrangements when all 
parties are acting in a real estate brokerage capacity, and has no 
applicability to any fee arrangements between real estate brokers and 
mortgage brokers or between mortgage brokers.);
    (vi) Normal promotional and educational activities that are not 
conditioned on the referral of business and that do not involve the 
defraying of expenses that otherwise would be incurred by persons in a 
position to refer settlement services or business incident thereto; or
    (vii) An employer's payment to its own employees for any referral 
activities.
    (2) The Department may investigate high prices to see if they are 
the result of a referral fee or a split of a fee. If the payment of a 
thing of value bears no reasonable relationship to the market value of 
the goods or services provided, then the excess is not for services or 
goods actually performed or provided. These facts may be used as 
evidence of a violation of section 8 and may serve as a basis for a 
RESPA investigation. High prices standing alone are not proof of a RESPA 
violation. The value of a referral (i.e., the value of any additional 
business obtained thereby) is not to be taken into account in 
determining whether the payment exceeds the reasonable value of such 
goods, facilities or services. The fact that the transfer of the thing 
of value does not result in an increase in any charge made by the person 
giving the thing of value is irrelevant in determining whether the act 
is prohibited.
    (3) Multiple services. When a person in a position to refer 
settlement service business, such as an attorney, mortgage lender, real 
estate broker or agent, or developer or builder, receives a payment for 
providing additional settlement services as part of a real estate 
transaction, such payment must be for services that are actual, 
necessary and distinct from the primary services provided by such 
person. For example, for an attorney of the buyer or seller to receive 
compensation as a title agent, the attorney must perform core title 
agent services (for which liability arises) separate from attorney 
services, including the evaluation of the title search to determine the 
insurability of the title, the clearance of underwriting objections, the 
actual issuance of the policy or policies on behalf of the title 
insurance company, and, where customary, issuance of the title 
commitment, and the conducting of the title search and closing.
    (h) Recordkeeping. Any documents provided pursuant to this section 
shall be retained for five (5) years from the date of execution.
    (i) Appendix B of this part. Illustrations in appendix B of this 
part demonstrate some of the requirements of this section.

[61 FR 13233, Mar. 26, 1996, as amended at 61 FR 29252, June 7, 1996; 61 
FR 58476, Nov. 15, 1996]

    Effective Date Note: At 61 FR 29252, June 7, 1996, Sec. 3500.14 was 
amended by revising the last sentence of paragraph (b), the heading of 
paragraph (g), and paragraph (g)(1), effective Oct. 7, 1996. At 61 FR 
51782, Oct. 4, 1996, the

[[Page 263]]

effective date was delayed until further notice. For the convenience of 
the user, the new text is set forth as follows:

Sec. 3500.14  Prohibition against kickbacks and unearned fees.

                                * * * * *

    (b) *  *  * A business entity (whether or not in an affiliate 
relationship) may not pay any other business entity or the employees of 
any other business entity for the referral of settlement service 
business.

                                * * * * *

    (g) Exemptions for fees, salaries, compensation, or other payments. 
(1) The following are permissible:
    (i) A payment to an attorney at law for services actually rendered;
    (ii) A payment by a title company to its duly appointed agent for 
services actually performed in the issuance of a policy of title 
insurance;
    (iii) A payment by a lender to its duly appointed agent or 
contractor for services actually performed in the origination, 
processing, or funding of a loan;
    (iv) A payment to any person of a bona fide salary or compensation 
or other payment for goods or facilities actually furnished or for 
services actually performed;
    (v) A payment pursuant to cooperative brokerage and referral 
arrangements or agreements between real estate agents and real estate 
brokers. (The statutory exemption restated in this paragraph refers only 
to fee divisions within real estate brokerage arrangements when all 
parties are acting in a real estate brokerage capacity, and has no 
applicability to any fee arrangements between real estate brokers and 
mortgage brokers or between mortgage brokers.)
    (vi) Normal promotional and educational activities that are not 
conditioned on the referral of business and do not involve the defraying 
of expenses that otherwise would be incurred by persons in a position to 
refer settlement services or business incident thereto;
    (vii) A payment by an employer to its own bona fide employee for 
generating business for that employer;
    (viii) In a controlled business arrangement, a payment by an 
employer of a bonus to a managerial employee based on criteria relating 
to performance (such as profitability, capture rate, or other 
thresholds) of a business entity in the controlled business arrangement. 
However, the amount of such bonus may not be calculated as a multiple of 
the number or value of referrals of settlement service business to a 
business entity in a controlled business arrangement; and
    (ix)(A) A payment by an employer to its bona fide employee for the 
referral of settlement service business to a settlement service provider 
that has an affiliate relationship with the employer or in which the 
employer has a direct or beneficial ownership interest of more than 1 
percent, if the following conditions are met:
    (1) The employee does not perform settlement services in any 
transaction; and
    (2) Before the referral, the employee provides to the person being 
referred a written disclosure in the format of the Controlled Business 
Arrangement Disclosure Statement, set forth in appendix D to this part.
    (B) For purposes of this paragraph (g)(1)(ix), the marketing of a 
settlement service or product of an affiliated entity, including the 
collection and conveyance of information or the taking of an application 
or order for an affiliated entity, does not constitute the performance 
of a settlement service. Under this paragraph (g)(1)(ix), marketing of a 
settlement service or product may include incidental communications with 
the consumer after the application or order, such as providing the 
consumer with information about the status of an application or order; 
marketing shall not include serving as the ongoing point of contact for 
coordinating the delivery and provision of settlement services.

                                * * * * *



Sec. 3500.15  Affiliated business arrangements.

    (a) General. An affiliated business arrangement is defined in 
section 3(7) of RESPA (12 U.S.C. 2602(7)).
    (b) Violation and exemption. An affiliated business arrangement is 
not a violation of section 8 of RESPA (12 U.S.C. 2607) and of 
Sec. 3500.14 if the conditions set forth in this section are satisfied. 
Paragraph (b)(1) of this section shall not apply to the extent it is 
inconsistent with section 8(c)(4)(A) of RESPA (12 U.S.C. 2607(c)(4)(A)).
    (1) The person making each referral has provided to each person 
whose business is referred a written disclosure, in the format of the 
Affiliated Business Arrangement Disclosure Statement set forth in 
appendix D of this part, of the nature of the relationship (explaining 
the ownership and financial interest) between the provider of settlement 
services (or business incident thereto) and the person making the 
referral and of an estimated charge or range of charges generally made 
by such provider (which describes the

[[Page 264]]

charge using the same terminology, as far as practical, as section L of 
the HUD-1 settlement statement). The disclosures must be provided on a 
separate piece of paper no later than the time of each referral or, if 
the lender requires use of a particular provider, the time of loan 
application, except that:
    (i) Where a lender makes the referral to a borrower, the condition 
contained in paragraph (b)(1) of this section may be satisfied at the 
time that the good faith estimate or a statement under Sec. 3500.7(d) is 
provided; and
    (ii) Whenever an attorney or law firm requires a client to use a 
particular title insurance agent, the attorney or law firm shall provide 
the disclosures no later than the time the attorney or law firm is 
engaged by the client. Failure to comply with the disclosure 
requirements of this section may be overcome if the person making a 
referral can prove by a preponderance of the evidence that procedures 
reasonably adopted to result in compliance with these conditions have 
been maintained and that any failure to comply with these conditions was 
unintentional and the result of a bona fide error. An error of legal 
judgment with respect to a person's obligations under RESPA is not a 
bona fide error. Administrative and judicial interpretations of section 
130(c) of the Truth in Lending Act shall not be binding interpretations 
of the preceding sentence or section 8(d)(3) of RESPA (12 U.S.C. 
2607(d)(3)).
    (2) No person making a referral has required (as defined in 
Sec. 3500.2, ``required use'') any person to use any particular provider 
of settlement services or business incident thereto, except if such 
person is a lender, for requiring a buyer, borrower or seller to pay for 
the services of an attorney, credit reporting agency, or real estate 
appraiser chosen by the lender to represent the lender's interest in a 
real estate transaction, or except if such person is an attorney or law 
firm for arranging for issuance of a title insurance policy for a 
client, directly as agent or through a separate corporate title 
insurance agency that may be operated as an adjunct to the law practice 
of the attorney or law firm, as part of representation of that client in 
a real estate transaction.
    (3) The only thing of value that is received from the arrangement 
other than payments listed in Sec. 3500.14(g) is a return on an 
ownership interest or franchise relationship.
    (i) In an affiliated business arrangement:
    (A) Bona fide dividends, and capital or equity distributions, 
related to ownership interest or franchise relationship, between 
entities in an affiliate relationship, are permissible; and
    (B) Bona fide business loans, advances, and capital or equity 
contributions between entities in an affiliate relationship (in any 
direction), are not prohibited--so long as they are for ordinary 
business purposes and are not fees for the referral of settlement 
service business or unearned fees.
    (ii) A return on an ownership interest does not include:
    (A) Any payment which has as a basis of calculation no apparent 
business motive other than distinguishing among recipients of payments 
on the basis of the amount of their actual, estimated or anticipated 
referrals;
    (B) Any payment which varies according to the relative amount of 
referrals by the different recipients of similar payments; or
    (C) A payment based on an ownership, partnership or joint venture 
share which has been adjusted on the basis of previous relative 
referrals by recipients of similar payments.
    (iii) Neither the mere labelling of a thing of value, nor the fact 
that it may be calculated pursuant to a corporate or partnership 
organizational document or a franchise agreement, will determine whether 
it is a bona fide return on an ownership interest or franchise 
relationship. Whether a thing of value is such a return will be 
determined by analyzing facts and circumstances on a case by case basis.
    (iv) A return on franchise relationship may be a payment to or from 
a franchisee but it does not include any payment which is not based on 
the franchise agreement, nor any payment which varies according to the 
number or amount of referrals by the franchisor or franchisee or which 
is based on a franchise agreement which

[[Page 265]]

has been adjusted on the basis of a previous number or amount of 
referrals by the franchiser or franchisees. A franchise agreement may 
not be constructed to insulate against kickbacks or referral fees.
    (c) Definitions. As used in this section:
    (1) Associate is defined in section 3(8) of RESPA (12 U.S.C. 
2602(8)).
    (2) Affiliate relationship means the relationship among business 
entities where one entity has effective control over the other by virtue 
of a partnership or other agreement or is under common control with the 
other by a third entity or where an entity is a corporation related to 
another corporation as parent to subsidiary by an identity of stock 
ownership.
    (3) Beneficial ownership means the effective ownership of an 
interest in a provider of settlement services or the right to use and 
control the ownership interest involved even though legal ownership or 
title may be held in another person's name.
    (4) Control, as used in the definitions of ``associate'' and 
``affiliate relationship,'' means that a person:
    (i) Is a general partner, officer, director, or employer of another 
person;
    (ii) Directly or indirectly or acting in concert with others, or 
through one or more subsidiaries, owns, holds with power to vote, or 
holds proxies representing, more than 20 percent of the voting interests 
of another person;
    (iii) Affirmatively influences in any manner the election of a 
majority of the directors of another person; or
    (iv) Has contributed more than 20 percent of the capital of the 
other person.
    (5) Direct ownership means the holding of legal title to an interest 
in a provider of settlement service except where title is being held for 
the beneficial owner.
    (6) Franchise is defined in 16 CFR 436.2(a).
    (7) Franchisor is defined in 16 CFR 436.2(c).
    (8) Franchisee is defined in 16 CFR 436.2(d).
    (9) Person who is in a position to refer settlement service business 
means any real estate broker or agent, lender, mortgage broker, builder 
or developer, attorney, title company, title agent, or other person 
deriving a significant portion of his or her gross income from providing 
settlement services.
    (d) Recordkeeping. Any documents provided pursuant to this section 
shall be retained for 5 years after the date of execution.
    (e) Appendix B of this part. Illustrations in appendix B of this 
part demonstrate some of the requirements of this section.

[61 FR 13233, Mar. 26, 1996, as amended at 61 FR 29252, June 7, 1996; 61 
FR 58476, Nov. 15, 1996]

    Effective Date Note: At 61 FR 29252, June 7, 1996, Sec. 3500.15 was 
amended by revising the introductory text of paragraph (b)(1), effective 
Oct. 7, 1996. At 61 FR 51782, Oct. 4, 1996, the effective date was 
delayed until further notice. For the convenience of the user, the new 
text is set forth as follows:

Sec. 3500.15  Controlled business arrangements.

                                * * * * *

    (b) *  *  *
    (1) Prior to the referral, the person making a referral has provided 
to each person whose business is referred a written disclosure, in the 
format of the Controlled Business Arrangement Disclosure Statement set 
forth in appendix D of this part. This disclosure shall specify the 
nature of the relationship (explaining the ownership and financial 
interest) between the person performing settlement services (or business 
incident thereto) and the person making the referral, and shall describe 
the estimated charge or range of charges (using the same terminology, as 
far as practical, as section L of the HUD-1 or HUD-1A settlement 
statement) generally made by the provider of settlement services. The 
disclosure must be provided on a separate piece of paper no later than 
the time of each referral or, if the lender requires the use of a 
particular provider, the time of loan application, except that:

                                * * * * *



Sec. 3500.16  Title companies.

    No seller of property that will be purchased with the assistance of 
a federally related mortgage loan shall violate section 9 of RESPA (12 
U.S.C. 2608). Section 3500.2 defines ``required use'' of a provider of a 
settlement service. Section 3500.19(c) explains the liability of a 
seller for a violation of this section.

[[Page 266]]



Sec. 3500.17  Escrow accounts.

    (a) General. This section sets out the requirements for an escrow 
account that a lender establishes in connection with a federally related 
mortgage loan. It sets limits for escrow accounts using calculations 
based on monthly payments and disbursements within a calendar year. If 
an escrow account involves biweekly or any other payment period, the 
requirements in this section shall be modified accordingly. A HUD Public 
Guidance Document entitled ``Biweekly Payments--Example'' provides 
examples of biweekly accounting and a HUD Public Guidance Document 
entitled ``Annual Escrow Account Disclosure Statement--Example'' 
provides examples of a 3-year accounting cycle that may be used in 
accordance with paragraph (c)(9) of this section. A HUD Public Guidance 
Document entitled ``Consumer Disclosure for Voluntary Escrow Account 
Payments'' provides a model disclosure format that originators and 
servicers are encouraged, but not required, to provide to consumers when 
the originator or servicer anticipates a substantial increase in 
disbursements from the escrow account after the first year of the loan. 
The disclosures in that model format may be combined with or included in 
the Initial Escrow Account Statement required in Sec. 3500.17(g).
    (b) Definitions. As used in this section:
    Acceptable accounting method means an accounting method that a 
servicer uses to conduct an escrow account analysis for an escrow 
account subject to the provisions of Sec. 3500.17(c).
    Aggregate (or) composite analysis, hereafter called aggregate 
analysis, means an accounting method a servicer uses in conducting an 
escrow account analysis by computing the sufficiency of escrow account 
funds by analyzing the account as a whole. Appendix E to this part sets 
forth examples of aggregate escrow account analyses.
    Annual escrow account statement means a statement containing all of 
the information set forth in Sec. 3500.17(i). As noted in 
Sec. 3500.17(i), a servicer shall submit an annual escrow account 
statement to the borrower within 30 calendar days of the end of the 
escrow account computation year, after conducting an escrow account 
analysis.
    Conversion date means the date three years after the publication 
date of the rule adding this section (i.e., October 27, 1997) by which 
date all servicers shall use aggregate analysis.
    Cushion or reserve (hereafter cushion) means funds that a servicer 
may require a borrower to pay into an escrow account to cover 
unanticipated disbursements or disbursements made before the borrower's 
payments are available in the account, as limited by Sec. 3500.17(c).
    Deficiency is the amount of a negative balance in an escrow account. 
As noted in Sec. 3500.17(f), if a servicer advances funds for a 
borrower, then the servicer must perform an escrow account analysis 
before seeking repayment of the deficiency.
    Delivery means the placing of a document in the United States mail, 
first-class postage paid, addressed to the last known address of the 
recipient. Hand delivery also constitutes delivery.
    Disbursement date means the date on which the servicer actually pays 
an escrow item from the escrow account.
    Escrow account means any account that a servicer establishes or 
controls on behalf of a borrower to pay taxes, insurance premiums 
(including flood insurance), or other charges with respect to a 
federally related mortgage loan, including charges that the borrower and 
servicer have voluntarily agreed that the servicer should collect and 
pay. The definition encompasses any account established for this 
purpose, including a ``trust account'', ``reserve account'', ``impound 
account'', or other term in different localities. An ``escrow account'' 
includes any arrangement where the servicer adds a portion of the 
borrower's payments to principal and subsequently deducts from principal 
the disbursements for escrow account items. For purposes of this 
section, the term ``escrow account'' excludes any account that is under 
the borrower's total control.
    Escrow account analysis means the accounting that a servicer 
conducts in the form of a trial running balance for an escrow account 
to:

[[Page 267]]

    (1) Determine the appropriate target balances;
    (2) Compute the borrower's monthly payments for the next escrow 
account computation year and any deposits needed to establish or 
maintain the account; and
    (3) Determine whether shortages, surpluses or deficiencies exist.
    Escrow account computation year is a 12-month period that a servicer 
establishes for the escrow account beginning with the borrower's initial 
payment date. The term includes each 12-month period thereafter, unless 
a servicer chooses to issue a short year statement under the conditions 
stated in Sec. 3500.17(i)(4).
    Escrow account item or separate item means any separate expenditure 
category, such as ``taxes'' or ``insurance'', for which funds are 
collected in the escrow account for disbursement. An escrow account item 
with installment payments, such as local property taxes, remains one 
escrow account item regardless of multiple disbursement dates to the tax 
authority.
    Initial escrow account statement means the first disclosure 
statement that the servicer delivers to the borrower concerning the 
borrower's escrow account. The initial escrow account statement shall 
meet the requirements of Sec. 3500.17(g) and be in substantially the 
format set forth in Sec. 3500.17(h).
    Installment payment means one of two or more payments payable on an 
escrow account item during an escrow account computation year. An 
example of an installment payment is where a jurisdiction bills 
quarterly for taxes.
    Payment due date means the date each month when the borrower's 
monthly payment to an escrow account is due to the servicer. The initial 
payment date is the borrower's first payment due date to an escrow 
account.
    Penalty means a late charge imposed by the payee for paying after 
the disbursement is due. It does not include any additional charge or 
fee imposed by the payee associated with choosing installment payments 
as opposed to annual payments or for choosing one installment plan over 
another.
    Phase-in period means the period beginning on May 24, 1995, and 
ending on the conversion date, i.e., October 27, 1997, by which date all 
servicers shall use the aggregate accounting method in conducting escrow 
account analyses.
    Post-rule account means an escrow account established in connection 
with a federally related mortgage loan whose settlement date is on or 
after May 24, 1995.
    Pre-accrual is a practice some servicers use to require borrowers to 
deposit funds, needed for disbursement and maintenance of a cushion, in 
the escrow account some period before the disbursement date. Pre-accrual 
is subject to the limitations of Sec. 3500.17(c).
    Pre-rule account is an escrow account established in connection with 
a federally related mortgage loan whose settlement date is before May 
24, 1995.
    Shortage means an amount by which a current escrow account balance 
falls short of the target balance at the time of escrow analysis.
    Single-item analysis means an accounting method servicers use in 
conducting an escrow account analysis by computing the sufficiency of 
escrow account funds by considering each escrow item separately. 
Appendix E to this part sets forth examples of single-item analysis.
    Submission (of an escrow account statement) means the delivery of 
the statement.
    Surplus means an amount by which the current escrow account balance 
exceeds the target balance for the account.
    System of recordkeeping means the servicer's method of keeping 
information that reflects the facts relating to that servicer's handling 
of the borrower's escrow account, including, but not limited to, the 
payment of amounts from the escrow account and the submission of initial 
and annual escrow account statements to borrowers.
    Target balance means the estimated month end balance in an escrow 
account that is just sufficient to cover the remaining disbursements 
from the escrow account in the escrow account computation year, taking 
into account the remaining scheduled periodic payments, and a cushion, 
if any.

[[Page 268]]

    Trial running balance means the accounting process that derives the 
target balances over the course of an escrow account computation year. 
Section 3500.17(d) provides a description of the steps involved in 
performing a trial running balance.
    (c) Limits on payments to escrow accounts; acceptable accounting 
methods to determine limits. (1) A lender or servicer (hereafter 
servicer) shall not require a borrower to deposit into any escrow 
account, created in connection with a federally related mortgage loan, 
more than the following amounts:
    (i) Charges at settlement or upon creation of an escrow account. At 
the time a servicer creates an escrow account for a borrower, the 
servicer may charge the borrower an amount sufficient to pay the charges 
respecting the mortgaged property, such as taxes and insurance, which 
are attributable to the period from the date such payment(s) were last 
paid until the initial payment date. The ``amount sufficient to pay'' is 
computed so that the lowest month end target balance projected for the 
escrow account computation year is zero (-0-) (see Step 2 in appendix E 
to this part). In addition, the servicer may charge the borrower a 
cushion that shall be no greater than one-sixth (\1/6\) of the estimated 
total annual payments from the escrow account.
    (ii) Charges during the life of the escrow account. Throughout the 
life of an escrow account, the servicer may charge the borrower a 
monthly sum equal to one-twelfth (\1/12\) of the total annual escrow 
payments which the servicer reasonably anticipates paying from the 
account. In addition, the servicer may add an amount to maintain a 
cushion no greater than one-sixth (\1/6\) of the estimated total annual 
payments from the account. However, if a servicer determines through an 
escrow account analysis that there is a shortage or deficiency, the 
servicer may require the borrower to pay additional deposits to make up 
the shortage or eliminate the deficiency, subject to the limitations set 
forth in Sec. 3500.17(f).
    (2) Escrow analysis at creation of escrow account. Before 
establishing an escrow account, the servicer must conduct an escrow 
account analysis to determine the amount the borrower must deposit into 
the escrow account (subject to the limitations of paragraph (c)(1)(i) of 
this section), and the amount of the borrower's periodic payments into 
the escrow account (subject to the limitations of paragraph (c)(1)(ii) 
of this section). In conducting the escrow account analysis, the 
servicer must estimate the disbursement amounts according to paragraph 
(c)(7) of this section. Pursuant to paragraph (k) of this section, the 
servicer must use a date on or before the deadline to avoid a penalty as 
the disbursement date for the escrow item and comply with any other 
requirements of paragraph (k) of this section. Upon completing the 
initial escrow account analysis, the servicer must prepare and deliver 
an initial escrow account statement to the borrower, as set forth in 
paragraph (g) of this section. The servicer must use the escrow account 
analysis to determine whether a surplus, shortage, or deficiency exists 
and must make any adjustments to the account pursuant to paragraph (f) 
of this section.
    (3) Subsequent escrow account analyses. For each escrow account, the 
servicer must conduct an escrow account analysis at the completion of 
the escrow account computation year to determine the borrower's monthly 
escrow account payments for the next computation year, subject to the 
limitations of paragraph (c)(1)(ii) of this section. In conducting the 
escrow account analysis, the servicer must estimate the disbursement 
amounts according to paragraph (c)(7) of this section. Pursuant to 
paragraph (k) of this section, the servicer must use a date on or before 
the deadline to avoid a penalty as the disbursement date for the escrow 
item and comply with any other requirements of paragraph (k) of this 
section. The servicer must use the escrow account analysis to determine 
whether a surplus, shortage, or deficiency exists, and must make any 
adjustments to the account pursuant to paragraph (f) of this section. 
Upon completing an escrow account analysis, the servicer must prepare 
and submit an annual escrow account statement to the borrower, as set 
forth in paragraph (i) of this section.

[[Page 269]]

    (4) Acceptable accounting methods to determine escrow limits. The 
following are acceptable accounting methods that servicers may use in 
conducting an escrow account analysis.
    (i) Pre-rule accounts. For pre-rule accounts, servicers may use 
either single-item analysis or aggregate-analysis during the phase-in 
period. In conducting the escrow account analysis, servicers shall use 
``month-end'' accounting. Under month-end accounting, the timing of the 
disbursements and payments within the month is irrelevant. As of the 
conversion date, all pre-rule accounts shall comply with the 
requirements for post-rule accounts in paragraph (c)(4)(ii) of this 
section. During the phase-in period, the transfer of servicing of a pre-
rule account to another servicer does not convert the account to a post-
rule account. After May 24, 1995, refinancing transactions (as defined 
in Sec. 3500.2) shall comply with the requirements for post-rule 
accounts.
    (ii) Post-rule accounts. For post-rule accounts, servicers shall use 
aggregate accounting to conduct an escrow account analysis. In 
conducting the escrow account analysis, servicers shall use ``month-
end'' accounting. Under month-end accounting, the timing of the 
disbursements and payments within the month is irrelevant.
    (5) Cushion. For post-rule accounts, the cushion shall be no greater 
than one-sixth (\1/6\) of the estimated total annual disbursements from 
the escrow account using aggregate analysis accounting. For pre-rule 
accounts, the cushion may not exceed the total of one-sixth of the 
estimated annual disbursements for each escrow account item using 
single-item analysis accounting. In determining the cushion using 
single-item analysis, a servicer shall not divide an escrow account item 
into sub-accounts, even if the payee requires installment payments.
    (6) Restrictions on pre-accrual. For pre-rule accounts, a servicer 
shall not require any pre-accrual that results in the escrow account 
balance exceeding the limits of paragraph (c)(1) of this section. In 
addition, if the mortgage documents in a pre-rule account are silent 
about the amount of pre-accrual, the servicer shall not require in 
excess of one month of pre-accrual, subject to the additional 
limitations provided in paragraph (c)(8) of this section. For post-rule 
accounts, a servicer shall not practice pre-accrual.
    (7) Servicer estimates of disbursement amounts. To conduct an escrow 
account analysis, the servicer shall estimate the amount of escrow 
account items to be disbursed. If the servicer knows the charge for an 
escrow item in the next computation year, then the servicer shall use 
that amount in estimating disbursement amounts. If the charge is unknown 
to the servicer, the servicer may base the estimate on the preceding 
year's charge, or the preceding year's charge as modified by an amount 
not exceeding the most recent year's change in the national Consumer 
Price Index for all urban consumers (CPI, all items). In cases of 
unassessed new construction, the servicer may base an estimate on the 
assessment of comparable residential property in the market area.
    (8) Provisions in mortgage documents. The servicer shall examine the 
mortgage loan documents to determine the applicable cushion and 
limitations on pre-accrual for each escrow account. If the mortgage loan 
documents provide for lower cushion limits or less pre-accrual than this 
section, then the terms of the loan documents apply. Where the terms of 
any mortgage loan document allow greater payments to an escrow account 
than allowed by this section, then this section controls the applicable 
limits. Where the mortgage loan documents do not specifically establish 
an escrow account, whether a servicer may establish an escrow account 
for the loan is a matter for determination by State law. If the mortgage 
loan document is silent on the escrow account limits (for cushion or 
pre-accrual) and a servicer establishes an escrow account under State 
law, then the limitations of this section apply unless State law 
provides for a lower amount. If the loan documents provide for escrow 
accounts up to the RESPA limits, then the servicer may require the 
maximum amounts consistent with this section, unless an applicable State 
law sets a lesser amount.
    (9) Assessments for periods longer than one year. Some escrow 
account items

[[Page 270]]

may be billed for periods longer than one year. For example, servicers 
may need to collect flood insurance or water purification escrow funds 
for payment every three years. In such cases, the servicer shall 
estimate the borrower's payments for a full cycle of disbursements. For 
a flood insurance premium payable every 3 years, the servicer shall 
collect the payments reflecting 36 equal monthly amounts. For two out of 
the three years, however, the account balance may not reach its low 
monthly balance because the low point will be on a three-year cycle, as 
compared to an annual one. The annual escrow account statement shall 
explain this situation (see example in the HUD Public Guidance Document 
entitled ``Annual Escrow Account Disclosure Statement--Example'', 
available in accordance with Sec. 3500.3).
    (d) Methods of escrow account analysis. Paragraph (c) of this 
section prescribes acceptable accounting methods. The following sets 
forth the steps servicers shall use to determine whether their use of an 
acceptable accounting method conforms with the limitations in 
Sec. 3500.17(c)(1). The steps set forth in this section derive maximum 
limits. Servicers may use accounting procedures that result in lower 
target balances. In particular, servicers may use a cushion less than 
the permissible cushion or no cushion at all. This section does not 
require the use of a cushion.
    (1) Aggregate analysis. (i) When a servicer uses aggregate analysis 
in conducting the escrow account analysis, the target balances may not 
exceed the balances computed according to the following arithmetic 
operations:
    (A) The servicer first projects a trial balance for the account as a 
whole over the next computation year (a trial running balance). In doing 
so the servicer assumes that it will make estimated disbursements on or 
before the earlier of the deadline to take advantage of discounts, if 
available, or the deadline to avoid a penalty. The servicer does not use 
pre-accrual on these disbursement dates. The servicer also assumes that 
the borrower will make monthly payments equal to one-twelfth of the 
estimated total annual escrow account disbursements.
    (B) The servicer then examines the monthly trial balances and adds 
to the first monthly balance an amount just sufficient to bring the 
lowest monthly trial balance to zero, and adjusts all other monthly 
balances accordingly.
    (C) The servicer then adds to the monthly balances the permissible 
cushion. The cushion is two months of the borrower's escrow payments to 
the servicer or a lesser amount specified by State law or the mortgage 
document (net of any increases or decreases because of prior year 
shortages or surpluses, respectively).
    (ii) Lowest monthly balance. Under aggregate analysis, the lowest 
monthly target balance for the account shall be less than or equal to 
one-sixth of the estimated total annual escrow account disbursements or 
a lesser amount specified by State law or the mortgage document. The 
target balances that the servicer derives using these steps yield the 
maximum limit for the escrow account. Appendix E to this part 
illustrates these steps.
    (2) Single-item or other non-aggregate analysis method. (i) When a 
servicer uses single-item analysis or any hybrid accounting method in 
conducting an escrow account analysis during the phase-in period, the 
target balances may not exceed the balances computed according to the 
following arithmetic operations:
    (A) The servicer first projects a trial balance for each item over 
the next computation year (a trial running balance). In doing so the 
servicer assumes that it will make estimated disbursements on or before 
the earlier of the deadline to take advantage of discounts, if 
available, or the deadline to avoid a penalty. The servicer does not use 
pre-accrual on these disbursement dates. The servicer also assumes that 
the borrower will make periodic payments equal to one-twelfth of the 
estimated total annual escrow account disbursements.
    (B) The servicer then examines the monthly trial balance for each 
escrow account item and adds to the first monthly balance for each 
separate item an amount just sufficient to bring the lowest monthly 
trial balance for that item to zero, and then adjusts all other monthly 
balances accordingly.

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    (C) The servicer then adds the permissible cushion, if any, to the 
monthly balance for the separate escrow account item. The permissible 
cushion is two months of escrow payments for the escrow account item 
(net of any increases or decreases because of prior year shortages or 
surpluses, respectively) or a lesser amount specified by State law or 
the mortgage document.
    (D) The servicer then examines the balances for each item to make 
certain that the lowest monthly balance for that item is less than or 
equal to one-sixth of the estimated total annual escrow account 
disbursements for that item or a lesser amount specified by State law or 
the mortgage document.
    (ii) In performing an escrow account analysis using single-item 
analysis, servicers may account for each escrow account item separately, 
but servicers shall not further divide accounts into sub-accounts, even 
if the payee of a disbursement requires installment payments. The target 
balances that the servicer derives using these steps yield the maximum 
limit for the escrow account. Appendix F to this part illustrates these 
steps.
    (e) Transfer of servicing. (1) If the new servicer changes either 
the monthly payment amount or the accounting method used by the 
transferor (old) servicer, then the new servicer shall provide the 
borrower with an initial escrow account statement within 60 days of the 
date of servicing transfer.
    (i) Where a new servicer provides an initial escrow account 
statement upon the transfer of servicing, the new servicer shall use the 
effective date of the transfer of servicing to establish the new escrow 
account computation year.
    (ii) Where the new servicer retains the monthly payments and 
accounting method used by the transferor servicer, then the new servicer 
may continue to use the escrow account computation year established by 
the transferor servicer or may choose to establish a different 
computation year using a short-year statement. At the completion of the 
escrow account computation year or any short year, the new servicer 
shall perform an escrow analysis and provide the borrower with an annual 
escrow account statement.
    (2) The new servicer shall treat shortages, surpluses and 
deficiencies in the transferred escrow account according to the 
procedures set forth in Sec. 3500.17(f).
    (3) A pre-rule account remains a pre-rule account upon the transfer 
of servicing to a new servicer so long as the transfer occurs before the 
conversion date.
    (f) Shortages, surpluses, and deficiencies requirements--(1) Escrow 
account analysis. For each escrow account, the servicer shall conduct an 
escrow account analysis to determine whether a surplus, shortage or 
deficiency exists.
    (i) As noted in Sec. 3500.17(c)(2) and (3), the servicer shall 
conduct an escrow account analysis upon establishing an escrow account 
and at completion of the escrow account computation year.
    (ii) The servicer may conduct an escrow account analysis at other 
times during the escrow computation year. If a servicer advances funds 
in paying a disbursement, which is not the result of a borrower's 
payment default under the underlying mortgage document, then the 
servicer shall conduct an escrow account analysis to determine the 
extent of the deficiency before seeking repayment of the funds from the 
borrower under this paragraph (f).
    (2) Surpluses. (i) If an escrow account analysis discloses a 
surplus, the servicer shall, within 30 days from the date of the 
analysis, refund the surplus to the borrower if the surplus is greater 
than or equal to 50 dollars ($50). If the surplus is less than 50 
dollars ($50), the servicer may refund such amount to the borrower, or 
credit such amount against the next year's escrow payments.
    (ii) These provisions regarding surpluses apply if the borrower is 
current at the time of the escrow account analysis. A borrower is 
current if the servicer receives the borrower's payments within 30 days 
of the payment due date. If the servicer does not receive the borrower's 
payment within 30 days of the payment due date, then the servicer may 
retain the surplus in the escrow account pursuant to the terms of the 
mortgage loan documents.
    (iii) After an initial or annual escrow analysis has been performed, 
the servicer and the borrower may enter

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into a voluntary agreement for the forthcoming escrow accounting year 
for the borrower to deposit funds into the escrow account for that year 
greater than the limits established under paragraph (c) of this section. 
Such an agreement shall cover only one escrow accounting year, but a new 
voluntary agreement may be entered into after the next escrow analysis 
is performed. The voluntary agreement may not alter how surpluses are to 
be treated when the next escrow analysis is performed at the end of the 
escrow accounting year covered by the voluntary agreement.
    (3) Shortages. (i) If an escrow account analysis discloses a 
shortage of less than one month's escrow account payment, then the 
servicer has three possible courses of action:
    (A) The servicer may allow a shortage to exist and do nothing to 
change it;
    (B) The servicer may require the borrower to repay the shortage 
amount within 30 days; or
    (C) The servicer may require the borrower to repay the shortage 
amount in equal monthly payments over at least a 12-month period.
    (ii) If an escrow account analysis discloses a shortage that is 
greater than or equal to one month's escrow account payment, then the 
servicer has two possible courses of action:
    (A) The servicer may allow a shortage to exist and do nothing to 
change it; or
    (B) The servicer may require the borrower to repay the shortage in 
equal monthly payments over at least a 12-month period.
    (4) Deficiency. If the escrow account analysis confirms a 
deficiency, then the servicer may require the borrower to pay additional 
monthly deposits to the account to eliminate the deficiency.
    (i) If the deficiency is less than one month's escrow account 
payment, then the servicer:
    (A) May allow the deficiency to exist and do nothing to change it;
    (B) May require the borrower to repay the deficiency within 30 days; 
or
    (C) May require the borrower to repay the deficiency in 2 or more 
equal monthly payments.
    (ii) If the deficiency is greater than or equal to 1 month's escrow 
payment, the servicer may allow the deficiency to exist and do nothing 
to change it or may require the borrower to repay the deficiency in two 
or more equal monthly payments.
    (iii) These provisions regarding deficiencies apply if the borrower 
is current at the time of the escrow account analysis. A borrower is 
current if the servicer receives the borrower's payments within 30 days 
of the payment due date. If the servicer does not receive the borrower's 
payment within 30 days of the payment due date, then the servicer may 
recover the deficiency pursuant to the terms of the mortgage loan 
documents.
    (5) Notice of shortage or deficiency in escrow account. The servicer 
shall notify the borrower at least once during the escrow account 
computation year if there is a shortage or deficiency in the escrow 
account. The notice may be part of the annual escrow account statement 
or it may be a separate document.
    (g) Initial escrow account statement. (1) Submission at settlement, 
or within 45 calendar days of settlement. As noted in 
Sec. 3500.17(c)(2), the servicer shall conduct an escrow account 
analysis before establishing an escrow account to determine the amount 
the borrower shall deposit into the escrow account, subject to the 
limitations of Sec. 3500.17(c)(1)(i). After conducting the escrow 
account analysis for each escrow account, the servicer shall submit an 
initial escrow account statement to the borrower at settlement or within 
45 calendar days of settlement for escrow accounts that are established 
as a condition of the loan.
    (i) The initial escrow account statement shall include the amount of 
the borrower's monthly mortgage payment and the portion of the monthly 
payment going into the escrow account and shall itemize the estimated 
taxes, insurance premiums, and other charges that the servicer 
reasonably anticipates to be paid from the escrow account during the 
escrow account computation year and the anticipated disbursement dates 
of those charges. The initial escrow account statement shall indicate 
the amount that the servicer

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selects as a cushion. The statement shall include a trial running 
balance for the account.
    (ii) Pursuant to Sec. 3500.17(h)(2), the servicer may incorporate 
the initial escrow account statement into the HUD-1 or HUD-1A settlement 
statement. If the servicer does not incorporate the initial escrow 
account statement into the HUD-1 or HUD-1A settlement statement, then 
the servicer shall submit the initial escrow account statement to the 
borrower as a separate document.
    (2) Time of submission of initial escrow account statement for an 
escrow account established after settlement. For escrow accounts 
established after settlement (and which are not a condition of the 
loan), a servicer shall submit an initial escrow account statement to a 
borrower within 45 calendar days of the date of establishment of the 
escrow account.
    (h) Format for initial escrow account statement. (1) The format and 
a completed example for an initial escrow account statement are set out 
in HUD Public Guidance Documents entitled ``Initial Escrow Account 
Disclosure Statement--Format'' and ``Initial Escrow Account Disclosure 
Statement--Example'', available in accordance with Sec. 3500.3.
    (2) Incorporation of initial escrow account statement into HUD-1 or 
HUD-1A settlement statement. Pursuant to Sec. 3500.9(a)(11), a servicer 
may add the initial escrow account statement to the HUD-1 or HUD-1A 
settlement statement. The servicer may include the initial escrow 
account statement in the basic text or may attach the initial escrow 
account statement as an additional page to the HUD-1 or HUD-1A 
settlement statement.
    (3) Identification of payees. The initial escrow account statement 
need not identify a specific payee by name if it provides sufficient 
information to identify the use of the funds. For example, appropriate 
entries include: county taxes, hazard insurance, condominium dues, etc. 
If a particular payee, such as a taxing body, receives more than one 
payment during the escrow account computation year, the statement shall 
indicate each payment and disbursement date. If there are several taxing 
authorities or insurers, the statement shall identify each taxing body 
or insurer (e.g., ``City Taxes'', ``School Taxes'', ``Hazard 
Insurance'', or ``Flood Insurance,'' etc.).
    (i) Annual escrow account statements. For each escrow account, a 
servicer shall submit an annual escrow account statement to the borrower 
within 30 days of the completion of the escrow account computation year. 
The servicer shall also submit to the borrower the previous year's 
projection or initial escrow account statement. The servicer shall 
conduct an escrow account analysis before submitting an annual escrow 
account statement to the borrower.
    (1) Contents of annual escrow account statement. The annual escrow 
account statement shall provide an account history, reflecting the 
activity in the escrow account during the escrow account computation 
year, and a projection of the activity in the account for the next year. 
In preparing the statement, the servicer may assume scheduled payments 
and disbursements will be made for the final 2 months of the escrow 
account computation year. The annual escrow account statement must 
include, at a minimum, the following (the items in paragraphs (i)(1)(i) 
through (i)(1)(iv) must be clearly itemized):
    (i) The amount of the borrower's current monthly mortgage payment 
and the portion of the monthly payment going into the escrow account;
    (ii) The amount of the past year's monthly mortgage payment and the 
portion of the monthly payment that went into the escrow account;
    (iii) The total amount paid into the escrow account during the past 
computation year;
    (iv) The total amount paid out of the escrow account during the same 
period for taxes, insurance premiums, and other charges (as separately 
identified);
    (v) The balance in the escrow account at the end of the period;
    (vi) An explanation of how any surplus is being handled by the 
servicer;
    (vii) An explanation of how any shortage or deficiency is to be paid 
by the borrower; and

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    (viii) If applicable, the reason(s) why the estimated low monthly 
balance was not reached, as indicated by noting differences between the 
most recent account history and last year's projection. HUD Public 
Guidance Documents entitled ``Annual Escrow Account Disclosure 
Statement--Format'' and ``Annual Escrow Account Disclosure Statement--
Example'' set forth an acceptable format and methodology for conveying 
this information.
    (2) No annual statements in the case of default, foreclosure, or 
bankruptcy. This paragraph (i)(2) contains an exemption from the 
provisions of Sec. 3500.17(i)(1). If at the time the servicer conducts 
the escrow account analysis the borrower is more than 30 days overdue, 
then the servicer is exempt from the requirements of submitting an 
annual escrow account statement to the borrower under Sec. 3500.17(i). 
This exemption also applies in situations where the servicer has brought 
an action for foreclosure under the underlying mortgage loan, or where 
the borrower is in bankruptcy proceedings. If the servicer does not 
issue an annual statement pursuant to this exemption and the loan 
subsequently is reinstated or otherwise becomes current, the servicer 
shall provide a history of the account since the last annual statement 
(which may be longer than 1 year) within 90 days of the date the account 
became current.
    (3) Delivery with other material. The servicer may deliver the 
annual escrow account statement to the borrower with other statements or 
materials, including the Substitute 1098, which is provided for federal 
income tax purposes.
    (4) Short year statements. A servicer may issue a short year annual 
escrow account statement (``short year statement'') to change one escrow 
account computation year to another. By using a short year statement a 
servicer may adjust its production schedule or alter the escrow account 
computation year for the escrow account.
    (i) Effect of short year statement. The short year statement shall 
end the ``escrow account computation year'' for the escrow account and 
establish the beginning date of the new escrow account computation year. 
The servicer shall deliver the short year statement to the borrower 
within 60 days from the end of the short year.
    (ii) Short year statement upon servicing transfer. Upon the transfer 
of servicing, the transferor (old) servicer shall submit a short year 
statement to the borrower within 60 days of the effective date of 
transfer.
    (iii) Short year statement upon loan payoff. If a borrower pays off 
a mortgage loan during the escrow account computation year, the servicer 
shall submit a short year statement to the borrower within 60 days after 
receiving the pay-off funds.
    (j) Formats for annual escrow account statement. The formats and 
completed examples for annual escrow account statements using single-
item analysis (pre-rule accounts) and aggregate analysis are set out in 
HUD Public Guidance Documents entitled ``Annual Escrow Account 
Disclosure Statement--Format'' and ``Annual Escrow Account Disclosure 
Statement--Example''.
    (k) Timely payments. (1) If the terms of any federally related 
mortgage loan require the borrower to make payments to an escrow 
account, the servicer must pay the disbursements in a timely manner, 
that is, on or before the deadline to avoid a penalty, as long as the 
borrower's payment is not more than 30 days overdue.
    (2) The servicer must advance funds to make disbursements in a 
timely manner as long as the borrower's payment is not more than 30 days 
overdue. Upon advancing funds to pay a disbursement, the servicer may 
seek repayment from the borrower for the deficiency pursuant to 
paragraph (f) of this section.
    (3) For the payment of property taxes from the escrow account, if a 
taxing jurisdiction offers a servicer a choice between annual and 
installment disbursements, the servicer must also comply with this 
paragraph (k)(3). If the taxing jurisdiction neither offers a discount 
for disbursements on a lump sum annual basis nor imposes any additional 
charge or fee for installment disbursements, the servicer must make 
disbursements on an installment basis. If, however, the taxing 
jurisdiction offers a discount for disbursements on a lump

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sum annual basis or imposes any additional charge or fee for installment 
disbursements, the servicer may at the servicer's discretion (but is not 
required by RESPA to), make lump sum annual disbursements in order to 
take advantage of the discount for the borrower or avoid the additional 
charge or fee for installments, as long as such method of disbursement 
complies with paragraphs (k)(1) and (k)(2) of this section. HUD 
encourages, but does not require, the servicer to follow the preference 
of the borrower, if such preference is known to the servicer.
    (4) Notwithstanding paragraph (k)(3) of this section, a servicer and 
borrower may mutually agree, on an individual case basis, to a different 
disbursement basis (installment or annual) or disbursement date for 
property taxes from that required under paragraph (k)(3) of this 
section, so long as the agreement meets the requirements of paragraphs 
(k)(1) and (k)(2) of this section. The borrower must voluntarily agree; 
neither loan approval nor any term of the loan may be conditioned on the 
borrower's agreeing to a different disbursement basis or disbursement 
date.
    (l) System of recordkeeping. (1) Each servicer shall keep records, 
which may involve electronic storage, microfiche storage, or any method 
of computerized storage, so long as the information is easily 
retrievable, reflecting the servicer's handling of each borrower's 
escrow account. The servicer's records shall include, but not be limited 
to, the payment of amounts into and from the escrow account and the 
submission of initial and annual escrow account statements to the 
borrower.
    (2) The servicer responsible for servicing the borrower's escrow 
account shall maintain the records for that account for a period of at 
least five years after the servicer last serviced the escrow account.
    (3) A servicer shall provide the Secretary with information 
contained in the servicer's records for a specific escrow account, or 
for a number or class of escrow accounts, within 30 days of the 
Secretary's written request for the information. The servicer shall 
convert any information contained in electronic storage, microfiche or 
computerized storage to paper copies for review by the Secretary.
    (i) To aid in investigations, the Secretary may also issue an 
administrative subpoena for the production of documents, and for the 
testimony of such witnesses as the Secretary deems advisable.
    (ii) If the subpoenaed party refuses to obey the Secretary's 
administrative subpoena, the Secretary is authorized to seek a court 
order requiring compliance with the subpoena from any United States 
district court. Failure to obey such an order of the court may be 
punished as contempt of court.
    (4) Borrowers may seek information contained in the servicer's 
records by complying with the provisions set forth in 12 U.S.C. 2605(e) 
and Sec. 3500.21(f).
    (5) After receiving a request (by letter or subpoena) from the 
Department for information relating to whether a servicer submitted an 
escrow account statement to the borrower, the servicer shall respond 
within 30 days. If the servicer is unable to provide the Department with 
such information, the Secretary shall deem that lack of information to 
be evidence of the servicer's failure to submit the statement to the 
borrower.
    (m) Penalties. (1) A servicer's failure to submit to a borrower an 
initial or annual escrow account statement meeting the requirements of 
this part shall constitute a violation of section 10(d) of RESPA (12 
U.S.C. 2609(d)) and this section. For each such violation, the Secretary 
shall assess a civil penalty of 55 dollars ($55), except that the total 
of the assessed penalties shall not exceed $110,000 for any one servicer 
for violations that occur during any consecutive 12-month period.
    (2) Violations described in paragraph (m)(1) of this section do not 
require any proof of intent. However, if a lender or servicer is shown 
to have intentionally disregarded the requirements that it submit the 
escrow account statement to the borrower, then the Secretary shall 
assess a civil penalty of $110 for each violation, with no limit on the 
total amount of the penalty.
    (n) Civil penalties procedures. The following procedures shall apply 
whenever the Department seeks to impose a civil

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money penalty for violation of section 10(c) of RESPA (12 U.S.C. 
2609(c)):
    (1) Purpose and scope. This paragraph (n) explains the procedures by 
which the Secretary may impose penalties under 12 U.S.C. 2609(d). These 
procedures include administrative hearings, judicial review, and 
collection of penalties. This paragraph (n) governs penalties imposed 
under 12 U.S.C. 2609(d) and, when noted, adopts those portions of 24 CFR 
part 30 that apply to all other civil penalty proceedings initiated by 
the Secretary.
    (2) Authority. The Secretary has the authority to impose civil 
penalties under section 10(d) of RESPA (12 U.S.C. 2609(d)).
    (3) Notice of intent to impose civil money penalties. Whenever the 
Secretary intends to impose a civil money penalty for violations of 
section 10(c) of RESPA (12 U.S.C. 2609(c)), the responsible program 
official, or his or her designee, shall serve a written Notice of Intent 
to Impose Civil Money Penalties (Notice of Intent) upon any servicer on 
which the Secretary intends to impose the penalty. A copy of the Notice 
of Intent must be filed with the Chief Docket Clerk, Office of 
Administrative Law Judges, at the address provided in the Notice of 
Intent. The Notice of Intent will provide:
    (i) A short, plain statement of the facts upon which the Secretary 
has determined that a civil money penalty should be imposed, including a 
brief description of the specific violations under 12 U.S.C. 2609(c) 
with which the servicer is charged and whether such violations are 
believed to be intentional or unintentional in nature, or a combination 
thereof;
    (ii) The amount of the civil money penalty that the Secretary 
intends to impose and whether the limitations in 12 U.S.C. 2609(d)(1), 
apply;
    (iii) The right of the servicer to a hearing on the record to appeal 
the Secretary's preliminary determination to impose a civil penalty;
    (iv) The procedures to appeal the penalty;
    (v) The consequences of failure to appeal the penalty; and
    (vi) The name, address, and telephone number of the representative 
of the Department, and the address of the Chief Docket Clerk, Office of 
Administrative Law Judges, should the servicer decide to appeal the 
penalty.
    (4) Appeal procedures. (i) Answer. To appeal the imposition of a 
penalty, a servicer shall, within 30 days after receiving service of the 
Notice of Intent, file a written Answer with the Chief Docket Clerk, 
Office of Administrative Law Judges, Department of Housing and Urban 
Development, at the address provided in the Notice of Intent. The Answer 
shall include a statement that the servicer admits, denies, or does not 
have (and is unable to obtain) sufficient information to admit or deny 
each allegation made in the Notice of Intent. A statement of lack of 
information shall have the effect of a denial. Any allegation that is 
not denied shall be deemed admitted. Failure to submit an Answer within 
the required period of time will result in a decision by the 
Administrative Law Judge based upon the Department's submission of 
evidence in the Notice of Intent.
    (ii) Submission of evidence. A servicer that receives the Notice of 
Intent has a right to present evidence. Evidence must be submitted 
within 45 calendar days from the date of service of the Notice of 
Intent, or by such other time as may be established by the 
Administrative Law Judge (ALJ). The servicer's failure to submit 
evidence within the required period of time will result in a decision by 
the Administrative Law Judge based upon the Department's submission of 
evidence in the Notice of Intent. The servicer may present evidence of 
the following:
    (A) The servicer did submit the required escrow account statement(s) 
to the borrower(s); or
    (B) Even if the servicer did not submit the required statement(s), 
that the failure was not the result of an intentional disregard of the 
requirements of RESPA (for purposes of determining the penalty).
    (iii) Review of the record. The Administrative Law Judge will review 
the evidence submitted by the servicer, if any, and that submitted by 
the Department. The Administrative Law Judge shall make a determination 
based upon a review of the written record, except that the 
Administrative Law Judge may order an oral hearing if he or she

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finds that the determination turns on the credibility or veracity of a 
witness, or that the matter cannot be resolved by review of the 
documentary evidence. If the Administrative Law Judge decides that an 
oral hearing is appropriate, then the procedural rules set forth at 24 
CFR part 30 shall apply, to the extent that they are not inconsistent 
with this section.
    (iv) Burden of proof. The burden of proof or the burden of going 
forward with the evidence shall be upon the proponent of an action. The 
Department's submission of evidence that the servicer's system of 
records lacks information that the servicer submitted the escrow account 
statement(s) to the borrower(s) shall satisfy the Department's burden. 
Upon the Department's presentation of evidence of this lack of 
information in the servicer's system of records, the burden of proof 
shifts from the Secretary to the servicer to provide evidence that it 
submitted the statement(s) to the borrower.
    (v) Standard of proof. The standard of proof shall be the 
preponderance of the evidence.
    (5) Determination of the Administrative Law Judge. (i) Following the 
hearing or the review of the written record, the Administrative Law 
Judge shall issue a decision that shall contain findings of fact, 
conclusions of law, and the amount of any penalties imposed. The 
decision shall include a determination of whether the servicer has 
failed to submit any required statements and, if so, whether the 
servicer's failure was the result of an intentional disregard for the 
law's requirements.
    (ii) The Administrative Law Judge shall issue the decision to all 
parties within 30 days of the submission of the evidence or the post-
hearing briefs, whichever is the last to occur.
    (iii) The decision of the Administrative Law Judge shall constitute 
the final decision of the Department and shall be final and binding on 
the parties.
    (6) Judicial review. (i) A person against whom the Department has 
imposed a civil money penalty under this part may obtain a review of the 
Department's final decision by filing a written petition for a review of 
the record with the appropriate United States district court.
    (ii) The petition must be filed within 30 days after the decision is 
filed with the Chief Docket Clerk, Office of Administrative Law Judges.
    (7) Collection of penalties. (i) If any person fails to comply with 
the Department's final decision imposing a civil money penalty, the 
Secretary, if the time for judicial review of the decision has expired, 
may request the Attorney General to bring an action in an appropriate 
United States district court to obtain a judgment against the person 
that has failed to comply with the Department's final decision.
    (ii) In any such collection action, the validity and appropriateness 
of the Department's final decision imposing the civil penalty shall not 
be subject to review in the district court.
    (iii) The Secretary may obtain such other relief as may be 
available, including attorney fees and other expenses in connection with 
the collection action.
    (iv) Interest on and other charges for any unpaid penalty may be 
assessed in accordance with 31 U.S.C. 3717.
    (8) Offset. In addition to any other rights as a creditor, the 
Secretary may seek to collect a civil money penalty through 
administrative offset.
    (9) At any time before the decision of the Administrative Law Judge, 
the Secretary and the servicer may enter into an administrative 
settlement. The settlement may include provisions for interest, 
attorney's fees, and costs related to the proceeding. Such settlement 
will terminate the appearance before the Administrative Law Judge.
    (o) Discretionary payments. Any borrower's discretionary payment 
(such as credit life or disability insurance) made as part of a monthly 
mortgage payment is to be noted on the initial and annual statements. If 
a discretionary payment is established or terminated during the escrow 
account computation year, this change should be noted on the next annual 
statement. A discretionary payment is not part of the escrow account 
unless the payment is required by the lender, in accordance with the 
definition of ``settlement service'' in Sec. 3500.2, or the servicer 
chooses to place the discretionary payment in

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the escrow account. If a servicer has not established an escrow account 
for a federally related mortgage loan and only receives payments for 
discretionary items, this section is not applicable.

(Approved by the Office of Management and Budget under control number 
2502-0501)

[61 FR 13233, Mar. 26, 1996, as amended at 61 FR 46510, Sept. 3, 1996; 
61 FR 50219, Sept. 24, 1996; 61 FR 58476, Nov. 15, 1996; 63 FR 3236, 
Jan. 21, 1998]

    Effective Date Note: At 68 FR 12789, Mar. 17, 2003, Sec. 3500.17 was 
amended by revising paragraph (m)(1), effective Apr. 16, 2003. For the 
convenience of the user, the revised text follows:

Sec. 3500.17  Escrow accounts.

                                * * * * *

    (m) Penalties. (1) A servicer's failure to submit to a borrower an 
initial or annual escrow account statement meeting the requirements of 
this part shall constitute a violation of section 10(d) of RESPA (12 
U.S.C. 2609(d)) and this section. For each such violation, the Secretary 
shall assess a civil penalty of 65 dollars ($65), except that the total 
of the assessed penalties shall not exceed $120,000 for any one servicer 
for violations that occur during any consecutive 12-month period.

                                * * * * *



Sec. 3500.18  Validity of contracts and liens.

    Section 17 of RESPA (12 U.S.C. 2615) governs the validity of 
contracts and liens under RESPA.



Sec. 3500.19  Enforcement.

    (a) Enforcement policy. It is the policy of the Secretary regarding 
RESPA enforcement matters to cooperate with Federal, State or local 
agencies having supervisory powers over lenders or other persons with 
responsibilities under RESPA. Federal agencies with supervisory powers 
over lenders may use their powers to require compliance with RESPA. In 
addition, failure to comply with RESPA may be grounds for administrative 
action by the Secretary under part 24 of this title concerning 
debarment, suspension, ineligibility of contractors and grantees, or 
under part 25 of this title concerning the HUD Mortgagee Review Board. 
Nothing in this paragraph is a limitation on any other form of 
enforcement which may be legally available.
    (b) Violations of section 8 of RESPA (12 U.S.C. 2607), Sec. 3500.14, 
or Sec. 3500.15. Any person who violates Secs. 3500.14 or 3500.15 shall 
be deemed to violate section 8 of RESPA and shall be sanctioned 
accordingly.
    (c) Violations of section 9 of RESPA (12 U.S.C. 2608) or 
Sec. 3500.16. Any person who violates section 3500.16 of this part shall 
be deemed to violate section 9 of RESPA and shall be sanctioned 
accordingly.
    (d) Investigations. The procedures for investigations and 
investigational proceedings are set forth in 24 CFR part 3800.



Sec. 3500.20  [Reserved]



Sec. 3500.21  Mortgage servicing transfers.

    (a) Definitions. As used in this section:
    Master servicer means the owner of the right to perform servicing, 
which may actually perform the servicing itself or may do so through a 
subservicer.
    Mortgage servicing loan means a federally related mortgage loan, as 
that term is defined in Sec. 3500.2, subject to the exemptions in 
Sec. 3500.5, when the mortgage loan is secured by a first lien. The 
definition does not include subordinate lien loans or open-end lines of 
credit (home equity plans) covered by the Truth in Lending Act and 
Regulation Z, including open-end lines of credit secured by a first 
lien.
    Qualified written request means a written correspondence from the 
borrower to the servicer prepared in accordance with paragraph (e)(2) of 
this section.
    Subservicer means a servicer who does not own the right to perform 
servicing, but who does so on behalf of the master servicer.
    Transferee servicer means a servicer who obtains or who will obtain 
the right to perform servicing functions pursuant to an agreement or 
understanding.
    Transferor servicer means a servicer, including a table funding 
mortgage broker or dealer on a first lien dealer loan, who transfers or 
will transfer the right to perform servicing functions

[[Page 279]]

pursuant to an agreement or understanding.
    (b) Servicing Disclosure Statement and Applicant Acknowledgement; 
requirements. (1) At the time an application for a mortgage servicing 
loan is submitted, or within 3 business days after submission of the 
application, the lender, mortgage broker who anticipates using table 
funding, or dealer who anticipates a first lien dealer loan shall 
provide to each person who applies for such a loan a Servicing 
Disclosure Statement. This requirement shall not apply when the 
application for credit is turned down within three business days after 
receipt of the application. A format for the Servicing Disclosure 
Statement appears as appendix MS-1 to this part. Except as provided in 
paragraph (b)(2) of this section, the specific language of the Servicing 
Disclosure Statement is not required to be used, but the Servicing 
Disclosure Statement must include the information set out in paragraph 
(b)(3) of this section, including the statement of the borrower's rights 
in connection with complaint resolution. The information set forth in 
Instructions to Preparer on the Servicing Disclosure Statement need not 
be included on the form given to applicants, and material in square 
brackets is optional or alternative language.
    (2) The Applicant's Acknowledgement portion of the Servicing 
Disclosure Statement in the format stated is mandatory. Additional lines 
may be added to accommodate more than two applicants.
    (3) The Servicing Disclosure Statement must contain the following 
information, except as provided in paragraph (b)(3)(ii) of this section:
    (i) Whether the servicing of the loan may be assigned, sold or 
transferred to any other person at any time while the loan is 
outstanding. If the lender, table funding mortgage broker, or dealer in 
a first lien dealer loan does not engage in the servicing of any 
mortgage servicing loans, the disclosure may consist of a statement to 
the effect that there is a current intention to assign, sell, or 
transfer servicing of the loan.
    (ii) The percentages (rounded to the nearest quartile (25%)) of 
mortgage servicing loans originated by the lender in each calendar year 
for which servicing has been assigned, sold, or transferred for such 
calendar year. Compliance with this paragraph (b)(3)(ii) is not required 
if the lender, table funding mortgage broker, or dealer on a first lien 
dealer loan chooses option B in the model format in paragraph (b)(4) of 
this section, including in square brackets the language ``[and have not 
serviced mortgage loans in the last three years.]''. The percentages 
shall be provided as follows:
    (A) This information shall be set out for the most recent three 
calendar years completed, with percentages as of the end of each year. 
This information shall be updated in the disclosure no later than March 
31 of the next calendar year. Each percentage should be obtained by 
using as the numerator the number of mortgage servicing loans originated 
during the calendar year for which servicing is transferred within the 
calendar year and, as the denominator, the total number of mortgage 
servicing loans originated in the calendar year. If the volume of 
transfers is less than 12.5 percent, the word ``nominal'' or the actual 
percentage amount of servicing transfers may be used.
    (B) This statistical information does not have to include the 
assignment, sale, or transfer of mortgage loan servicing by the lender 
to an affiliate or subsidiary of the lender. However, lenders may 
voluntarily include transfers to an affiliate or subsidiary. The lender 
should indicate whether the percentages provided include assignments, 
sales, or transfers to affiliates or subsidiaries.
    (C) In the alternative, if applicable, the following statement may 
be substituted for the statistical information required to be provided 
in accordance with paragraph (b)(3)(ii) of this section: ``We have 
previously assigned, sold, or transferred the servicing of federally 
related mortgage loans.''
    (iii) The best available estimate of the percentage (0 to 25 
percent, 26 to 50 percent, 51 to 75 percent, or 76 to 100 percent) of 
all loans to be made during the 12-month period beginning on the

[[Page 280]]

date of origination for which the servicing may be assigned, sold, or 
transferred. Each percentage should be obtained by using as the 
numerator the estimated number of mortgage servicing loans that will be 
originated for which servicing may be transferred within the 12-month 
period and, as the denominator, the estimated total number of mortgage 
servicing loans that will be originated in the 12-month period.
    (A) If the lender, mortgage broker, or dealer anticipates that no 
loan servicing will be sold during the calendar year, the word ``none'' 
may be substituted for ``0 to 25 percent.'' If it is anticipated that 
all loan servicing will be sold during the calendar year, the word 
``all'' may be substituted for ``76 to 100 percent.''
    (B) This statistical information does not have to include the 
estimated assignment, sale, or transfer of mortgage loan servicing to an 
affiliate or subsidiary of that person. However, this information may be 
provided voluntarily. The Servicing Disclosure Statements should 
indicate whether the percentages provided include assignments, sales or 
transfers to affiliates or subsidiaries.
    (iv) The information set out in paragraphs (d) and (e) of this 
section.
    (v) A written acknowledgement that the applicant (and any co-
applicant) has/have read and understood the disclosure, and understand 
that the disclosure is a required part of the mortgage application. This 
acknowledgement shall be evidenced by the signature of the applicant and 
any co-applicant.
    (4) The following is a model format, which includes several options, 
for complying with the requirements of paragraph (b)(3) of this section. 
The model format may be annotated with additional information that 
clarifies or enhances the model language. The lender or table funding 
mortgage broker (or dealer) should use the language that best describes 
the particular circumstances.
    (i) Model format: The following is the best estimate of what will 
happen to the servicing of your mortgage loan:
    (A) Option A. We may assign, sell, or transfer the servicing of your 
loan while the loan is outstanding. [We are able to service your 
loan[.][,] and we [will] [will not] [haven't decided whether to] service 
your loan.]; or
    (B) Option B. We do not service mortgage loans[.][,] [and have not 
serviced mortgage loans in the past three years.] We presently intend to 
assign, sell, or transfer the servicing of your mortgage loan. You will 
be informed about your servicer.
    (C) As appropriate, the following paragraph may be used:
    We assign, sell, or transfer the servicing of some of our loans 
while the loans are outstanding, depending on the type of loan and other 
factors. For the program for which you have applied, we expect to 
[assign, sell, or transfer all of the mortgage servicing][retain all of 
the mortgage servicing] [assign, sell, or transfer --------% of the 
mortgage servicing].
    (ii) [Reserved]
    (c) Servicing Disclosure Statement and Applicant Acknowledgement; 
delivery. The lender, table funding mortgage broker, or dealer that 
anticipates a first lien dealer loan shall deliver Servicing Disclosure 
Statements to each applicant for mortgage servicing loans. Each 
applicant or co-applicant must sign an Acknowledgement of receipt of the 
Servicing Disclosure Statement before settlement.
    (1) In the case of a face-to-face interview with one or more 
applicants, the Servicing Disclosure Statement shall be delivered at the 
time of application. An applicant present at the interview may sign the 
Acknowledgment on his or her own behalf at that time. An applicant 
present at the interview also may accept delivery of the Servicing 
Disclosure Statement on behalf of the other applicants.
    (2) If there is no face-to-face interview, the Servicing Disclosure 
Statement shall be delivered by placing it in the mail, with prepaid 
first-class postage, within 3 business days from receipt of the 
application. If co-applicants indicate the same address on their 
application, one copy delivered to that address is sufficient. If 
different addresses are shown by co-applicants on the application, a 
copy must be delivered to each of the co-applicants.

[[Page 281]]

    (3) The signed Applicant Acknowledgment(s) shall be retained for a 
period of 5 years after the date of settlement as part of the loan file 
for every settled loan. There is no requirement for retention of 
Applicant Acknowledgment(s) if the loan is not settled.
    (d) Notices of Transfer; loan servicing--(1) Requirement for notice. 
(i) Except as provided in this paragraph (d)(1)(i) or paragraph 
(d)(1)(ii) of this section, each transferor servicer and transferee 
servicer of any mortgage servicing loan shall deliver to the borrower a 
written Notice of Transfer, containing the information described in 
paragraph (d)(3) of this section, of any assignment, sale, or transfer 
of the servicing of the loan. The following transfers are not considered 
an assignment, sale, or transfer of mortgage loan servicing for purposes 
of this requirement if there is no change in the payee, address to which 
payment must be delivered, account number, or amount of payment due:
    (A) Transfers between affiliates;
    (B) Transfers resulting from mergers or acquisitions of servicers or 
subservicers; and
    (C) Transfers between master servicers, where the subservicer 
remains the same.
    (ii) The Federal Housing Administration (FHA) is not required under 
paragraph (d) of this section to submit to the borrower a Notice of 
Transfer in cases where a mortgage insured under the National Housing 
Act is assigned to FHA.
    (2) Time of notice. (i) Except as provided in paragraph (d)(2)(ii) 
of this section:
    (A) The transferor servicer shall deliver the Notice of Transfer to 
the borrower not less than 15 days before the effective date of the 
transfer of the servicing of the mortgage servicing loan;
    (B) The transferee servicer shall deliver the Notice of Transfer to 
the borrower not more than 15 days after the effective date of the 
transfer; and
    (C) The transferor and transferee servicers may combine their 
notices into one notice, which shall be delivered to the borrower not 
less than 15 days before the effective date of the transfer of the 
servicing of the mortgage servicing loan.
    (ii) The Notice of Transfer shall be delivered to the borrower by 
the transferor servicer or the transferee servicer not more than 30 days 
after the effective date of the transfer of the servicing of the 
mortgage servicing loan in any case in which the transfer of servicing 
is preceded by:
    (A) Termination of the contract for servicing the loan for cause;
    (B) Commencement of proceedings for bankruptcy of the servicer; or
    (C) Commencement of proceedings by the Federal Deposit Insurance 
Corporation (FDIC) or the Resolution Trust Corporation (RTC) for 
conservatorship or receivership of the servicer or an entity that owns 
or controls the servicer.
    (iii) Notices of Transfer delivered at settlement by the transferor 
servicer and transferee servicer, whether as separate notices or as a 
combined notice, will satisfy the timing requirements of paragraph 
(d)(2) of this section.
    (3) Notices of Transfer; contents. The Notices of Transfer required 
under paragraph (d) of this section shall include the following 
information:
    (i) The effective date of the transfer of servicing;
    (ii) The name, consumer inquiry addresses (including, at the option 
of the servicer, a separate address where qualified written requests 
must be sent), and a toll-free or collect-call telephone number for an 
employee or department of the transferee servicer;
    (iii) A toll-free or collect-call telephone number for an employee 
or department of the transferor servicer that can be contacted by the 
borrower for answers to servicing transfer inquiries;
    (iv) The date on which the transferor servicer will cease to accept 
payments relating to the loan and the date on which the transferee 
servicer will begin to accept such payments. These dates shall either be 
the same or consecutive days;
    (v) Information concerning any effect the transfer may have on the 
terms or the continued availability of mortgage life or disability 
insurance, or any other type of optional insurance, and any action the 
borrower must take to maintain coverage;
    (vi) A statement that the transfer of servicing does not affect any 
other

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term or condition of the mortgage documents, other than terms directly 
related to the servicing of the loan; and
    (vii) A statement of the borrower's rights in connection with 
complaint resolution, including the information set forth in paragraph 
(e) of this section. Appendix MS-2 of this part illustrates a statement 
satisfactory to the Secretary.
    (4) Notices of Transfer; sample notice. Sample language that may be 
used to comply with the requirements of paragraph (d) of this section is 
set out in appendix MS-2 of this part. Minor modifications to the sample 
language may be made to meet the particular circumstances of the 
servicer, but the substance of the sample language shall not be omitted 
or substantially altered.
    (5) Consumer protection during transfer of servicing. During the 60-
day period beginning on the effective date of transfer of the servicing 
of any mortgage servicing loan, if the transferor servicer (rather than 
the transferee servicer that should properly receive payment on the 
loan) receives payment on or before the applicable due date (including 
any grace period allowed under the loan documents), a late fee may not 
be imposed on the borrower with respect to that payment and the payment 
may not be treated as late for any other purposes.
    (e) Duty of loan servicer to respond to borrower inquiries-- (1) 
Notice of receipt of inquiry. Within 20 business days of a servicer of a 
mortgage servicing loan receiving a qualified written request from the 
borrower for information relating to the servicing of the loan, the 
servicer shall provide to the borrower a written response acknowledging 
receipt of the qualified written response. This requirement shall not 
apply if the action requested by the borrower is taken within that 
period and the borrower is notified of that action in accordance with 
the paragraph (f)(3) of this section. By notice either included in the 
Notice of Transfer or separately delivered by first-class mail, postage 
prepaid, a servicer may establish a separate and exclusive office and 
address for the receipt and handling of qualified written requests.
    (2) Qualified written request; defined. (i) For purposes of 
paragraph (e) of this section, a qualified written request means a 
written correspondence (other than notice on a payment coupon or other 
payment medium supplied by the servicer) that includes, or otherwise 
enables the servicer to identify, the name and account of the borrower, 
and includes a statement of the reasons that the borrower believes the 
account is in error, if applicable, or that provides sufficient detail 
to the servicer regarding information relating to the servicing of the 
loan sought by the borrower.
    (ii) A written request does not constitute a qualified written 
request if it is delivered to a servicer more than 1 year after either 
the date of transfer of servicing or the date that the mortgage 
servicing loan amount was paid in full, whichever date is applicable.
    (3) Action with respect to the inquiry. Not later than 60 business 
days after receiving a qualified written request from the borrower, and, 
if applicable, before taking any action with respect to the inquiry, the 
servicer shall:
    (i) Make appropriate corrections in the account of the borrower, 
including the crediting of any late charges or penalties, and transmit 
to the borrower a written notification of the correction. This written 
notification shall include the name and telephone number of a 
representative of the servicer who can provide assistance to the 
borrower; or
    (ii) After conducting an investigation, provide the borrower with a 
written explanation or clarification that includes:
    (A) To the extent applicable, a statement of the servicer's reasons 
for concluding the account is correct and the name and telephone number 
of an employee, office, or department of the servicer that can provide 
assistance to the borrower; or
    (B) Information requested by the borrower, or an explanation of why 
the information requested is unavailable or cannot be obtained by the 
servicer, and the name and telephone number of an employee, office, or 
department of the servicer that can provide assistance to the borrower.

[[Page 283]]

    (4) Protection of credit rating. (i) During the 60-business day 
period beginning on the date of the servicer receiving from a borrower a 
qualified written request relating to a dispute on the borrower's 
payments, a servicer may not provide adverse information regarding any 
payment that is the subject of the qualified written request to any 
consumer reporting agency (as that term is defined in section 603 of the 
Fair Credit Reporting Act, 15 U.S.C. 1681a).
    (ii) In accordance with section 17 of RESPA (12 U.S.C. 2615), the 
protection of credit rating provision of paragraph (e)(4)(i) of this 
section does not impede a lender or servicer from pursuing any of its 
remedies, including initiating foreclosure, allowed by the underlying 
mortgage loan instruments.
    (f) Damages and costs. (1) Whoever fails to comply with any 
provision of this section shall be liable to the borrower for each 
failure in the following amounts:
    (i) Individuals. In the case of any action by an individual, an 
amount equal to the sum of any actual damages sustained by the 
individual as the result of the failure and, when there is a pattern or 
practice of noncompliance with the requirements of this section, any 
additional damages in an amount not to exceed $1,000.
    (ii) Class actions. In the case of a class action, an amount equal 
to the sum of any actual damages to each borrower in the class that 
result from the failure and, when there is a pattern or practice of 
noncompliance with the requirements of this section, any additional 
damages in an amount not greater than $1,000 for each class member. 
However, the total amount of any additional damages in a class action 
may not exceed the lesser of Sec. 500,000 or 1 percent of the net worth 
of the servicer.
    (iii) Costs. In addition, in the case of any successful action under 
paragraph (f) of this section, the costs of the action and any 
reasonable attorneys' fees incurred in connection with the action.
    (2) Nonliability. A transferor or transferee servicer shall not be 
liable for any failure to comply with the requirements of this section, 
if within 60 days after discovering an error (whether pursuant to a 
final written examination report or the servicer's own procedures) and 
before commencement of an action under this section and the receipt of 
written notice of the error from the borrower, the servicer notifies the 
person concerned of the error and makes whatever adjustments are 
necessary in the appropriate account to ensure that the person will not 
be required to pay an amount in excess of any amount that the person 
otherwise would have paid.
    (g) Timely payments by servicer. If the terms of any mortgage 
servicing loan require the borrower to make payments to the servicer of 
the loan for deposit into an escrow account for the purpose of assuring 
payment of taxes, insurance premiums, and other charges with respect to 
the mortgaged property, the servicer shall make payments from the escrow 
account in a timely manner for the taxes, insurance premiums, and other 
charges as the payments become due, as governed by the requirements in 
Sec. 3500.17(k).
    (h) Preemption of State laws. A lender who makes a mortgage 
servicing loan or a servicer shall be considered to have complied with 
the provisions of any State law or regulation requiring notice to a 
borrower at the time of application for a loan or transfer of servicing 
of a loan if the lender or servicer complies with the requirements of 
this section. Any State law requiring notice to the borrower at the time 
of application or at the time of transfer of servicing of the loan is 
preempted, and there shall be no additional borrower disclosure 
requirements. Provisions of State law, such as those requiring 
additional notices to insurance companies or taxing authorities, are not 
preempted by section 6 of RESPA or this section, and this additional 
information may be added to a notice prepared under this section, if the 
procedure is allowable under State law.

(Approved by the Office of Management and Budget under control number 
2502-0458)

[[Page 284]]

 Appendix A to Part 3500--Instructions for Completing HUD-1 and HUD-1A 
        Settlement Statements; Sample HUD-1 and HUD-1A Statements

    The following are instructions for completing sections A through L 
of the HUD-1 settlement statement, required under section 4 of RESPA and 
Regulation X of the Department of Housing and Urban Development (24 CFR 
part 3500). This form is to be used as a statement of actual charges and 
adjustments to be given to the parties in connection with the 
settlement. The instructions for completion of the HUD-1 are primarily 
for the benefit of the settlement agents who prepare the statements and 
need not be transmitted to the parties as an integral part of the HUD-1. 
There is no objection to the use of the HUD-1 in transactions in which 
its use is not legally required. Refer to the definitions section of 
Regulation X for specific definitions of many of the terms which are 
used in these instructions.

                          General Instructions

    Information and amounts may be filled in by typewriter, hand 
printing, computer printing, or any other method producing clear and 
legible results. Refer to Regulation X regarding rules applicable to 
reproduction of the HUD-1. An additional page(s) may be attached to the 
HUD-1 for the purpose of including customary recitals and information 
used locally in settlements, for example, a breakdown of payoff figures; 
a breakdown of the Borrower's total monthly mortgage payments; check 
disbursements; a statement indicating receipt of funds; applicable 
special stipulations between Borrower and Seller, and the date funds are 
transferred.
    The settlement agent shall complete the HUD-1 to itemize all charges 
imposed upon the Borrower and the Seller by the Lender and all sales 
commissions, whether to be paid at settlement or outside of settlement, 
and any other charges which either the Borrower or the Seller will pay 
for at settlement. Charges to be paid outside of settlement, including 
cases where a non-settlement agent (i.e., attorneys, title companies, 
escrow agents, real estate agents or brokers) holds the Borrower's 
deposit against the sales price (earnest money) and applies the entire 
deposit towards the charge for the settlement service it is rendering, 
shall be included on the HUD-1 but marked ``P.O.C.'' for ``Paid Outside 
of Closing'' (settlement) and shall not be included in computing totals. 
P.O.C. items should not be placed in the Borrower or Seller columns, but 
rather on the appropriate line next to the columns.
    Blank lines are provided in section L for any additional settlement 
charges. Blank lines are also provided for additional insertions in 
sections J and K. The names of the recipients of the settlement charges 
in section L and the names of the recipients of adjustments described in 
section J or K should be included on the blank lines.
    Lines and columns in section J which relate to the Borrower's 
transaction may be left blank on the copy of the HUD-1 which will be 
furnished to the Seller. Lines and columns in section K which relate to 
the Seller's transaction may be left blank on the copy of the HUD-1 
which will be furnished to the Borrower.

                         Line Item Instructions

    Instructions for completing the individual items on the HUD-1 
follow.
    Section A. This section requires no entry of information.
    Section B. Check appropriate loan type and complete the remaining 
items as applicable.
    Section C. This section provides a notice regarding settlement costs 
and requires no additional entry of information.
    Sections D and E. Fill in the names and current mailing addresses 
and zip codes of the Borrower and the Seller. Where there is more than 
one Borrower or Seller, the name and address of each one is required. 
Use a supplementary page if needed to list multiple Borrowers or 
Sellers.
    Section F. Fill in the name, current mailing address and zip code of 
the Lender.
    Section G. The street address of the property being sold should be 
given. If there is no street address, a brief legal description or other 
location of the property should be inserted. In all cases give the zip 
code of the property.
    Section H. Fill in name, address, and zip code of settlement agent; 
address and zip code of ``place of settlement.''
    Section I. Date of settlement.
    Section J. Summary of Borrower's Transaction. Line 101 is for the 
gross sales price of the property being sold, excluding the price of any 
items of tangible personal property if Borrower and Seller have agreed 
to a separate price for such items.
    Line 102 is for the gross sales price of any items of tangible 
personal property excluded from Line 101. Personal property could 
include such items as carpets, drapes, stoves, refrigerators, etc. What 
constitutes personal property varies from state to state. Manufactured 
homes are not considered personal property for this purpose.
    Line 103 is used to record the total charges to Borrower detailed in 
Section L and totaled on Line 1400.
    Lines 104 and 105 are for additional amounts owed by the Borrower or 
items paid by the Seller prior to settlement but reimbursed by the 
Borrower at settlement. For example, the balance in the Seller's reserve 
account held in connection with an existing

[[Page 285]]

loan, if assigned to the Borrower in a loan assumption case, will be 
entered here. These lines will also be used when a tenant in the 
property being sold has not yet paid the rent, which the Borrower will 
collect, for a period of time prior to the settlement. The lines will 
also be used to indicate the treatment for any tenant security deposit. 
The Seller will be credited on Lines 404-405.
    Lines 106 through 112 are for items which the Seller had paid in 
advance, and for which the Borrower must therefore reimburse the Seller. 
Examples of items for which adjustments will be made may include taxes 
and assessments paid in advance for an entire year or other period, when 
settlement occurs prior to the expiration of the year or other period 
for which they were paid. Additional examples include flood and hazard 
insurance premiums, if the Borrower is being substituted as an insured 
under the same policy; mortgage insurance in loan assumption cases; 
planned unit development or condominium association assessments paid in 
advance; fuel or other supplies on hand, purchased by the Seller, which 
the Borrower will use when Borrower takes possession of the property; 
and ground rent paid in advance.
    Line 120 is for the total of Lines 101 through 112.
    Line 201 is for any amount paid against the sales price prior to 
settlement.
    Line 202 is for the amount of the new loan made by the Lender or 
first user loan (a loan to finance construction of a new structure or 
purchase of manufactured home where the structure was constructed for 
sale or the manufactured home was purchased for purposes of resale and 
the loan is used as or converted to a loan to finance purchase by the 
first user). For other loans covered by Regulation X which finance 
construction of a new structure or purchase of a manufactured home, list 
the sales price of the land on Line 104, the construction cost or 
purchase price of manufactured home on Line 105 (Line 101 would be left 
blank in this instance) and amount of the loan on Line 202. The 
remainder of the form should be completed taking into account 
adjustments and charges related to the temporary financing and permanent 
financing and which are known at the date of settlement.
    Line 203 is used for cases in which the Borrower is assuming or 
taking title subject to an existing loan or lien on the property.
    Lines 204-209 are used for other items paid by or on behalf of the 
Borrower. Examples include cases in which the Seller has taken a trade-
in or other property from the Borrower in part payment for the property 
being sold. They may also be used in cases in which a Seller (typically 
a builder) is making an ``allowance'' to the Borrower for carpets or 
drapes which the Borrower is to purchase separately. Lines 204-209 can 
also be used to indicate any Seller financing arrangements or other new 
loan not listed in Line 202. For example, if the Seller takes a note 
from the Borrower for part of the sales price, insert the principal 
amount of the note with a brief explanation on Lines 204-209.
    Lines 210 through 219 are for items which have not yet been paid, 
and which the Borrower is expected to pay, but which are attributable in 
part to a period of time prior to the settlement. In jurisdictions in 
which taxes are paid late in the tax year, most cases will show the 
proration of taxes in these lines. Other examples include utilities used 
but not paid for by the Seller, rent collected in advance by the Seller 
from a tenant for a period extending beyond the settlement date, and 
interest on loan assumptions.
    Line 220 is for the total of Lines 201 through 219.
    Lines 301 and 302 are summary lines for the Borrower. Enter total in 
Line 120 on Line 301. Enter total in Line 220 on Line 302.
    Line 303 may indicate either the cash required from the Borrower at 
settlement (the usual case in a purchase transaction) or cash payable to 
the Borrower at settlement (if, for example, the Borrower's deposit 
against the sales price (earnest money) exceeded the Borrower's cash 
obligations in the transaction). Subtract Line 302 from Line 301 and 
enter the amount of cash due to or from the Borrower at settlement on 
Line 303. The appropriate box should be checked.
    Section K. Summary of Seller's Transaction. Instructions for the use 
of Lines 101 and 102 and 104-112 above, apply also to Lines 401-412. 
Line 420 is for the total of Lines 401 through 412.
    Line 501 is used if the Seller's real estate broker or other party 
who is not the settlement agent has received and holds the deposit 
against the sales price (earnest money) which exceeds the fee or 
commission owed to that party, and if that party will render the excess 
deposit directly to the Seller, rather than through the settlement 
agent, the amount of excess deposit should be entered on Line 501 and 
the amount of the total deposit (including commissions) should be 
entered on Line 201.
    Line 502 is used to record the total charges to the Seller detailed 
in section L and totaled on Line 1400.
    Line 503 is used if the Borrower is assuming or taking title subject 
to existing liens which are to be deducted from sales price.
    Lines 504 and 505 are used for the amounts (including any accrued 
interest) of any first and/or second loans which will be paid as part of 
the settlement.
    Line 506 is used for deposits paid by the Borrower to the Seller or 
other party who is not the settlement agent. Enter the amount of the 
deposit in Line 201 on Line 506 unless Line 501 is used or the party who 
is not the settlement agent transfers all or part of the

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deposit to the settlement agent in which case the settlement agent will 
note in parentheses on Line 507 the amount of the deposit which is being 
disbursed as proceeds and enter in column for Line 506 the amount 
retained by the above described party for settlement services. If the 
settlement agent holds the deposit insert a note in Line 507 which 
indicates that the deposit is being disbursed as proceeds.
    Lines 506 through 509 may be used to list additional liens which 
must be paid off through the settlement to clear title to the property. 
Other payoffs of Seller obligations should be shown on Lines 506-509 
(but not on Lines 1303-1305). They may also be used to indicate funds to 
be held by the settlement agent for the payment of water, fuel, or other 
utility bills which cannot be prorated between the parties at settlement 
because the amounts used by the Seller prior to settlement are not yet 
known. Subsequent disclosure of the actual amount of these post-
settlement items to be paid from settlement funds is optional. Any 
amounts entered on Lines 204-209 including Seller financing arrangements 
should also be entered on Lines 506-509.
    Instructions for the use of Lines 510 through 519 are the same as 
those for Lines 210 to 219 above.
    Line 520 is for the total of Lines 501 through 519.
    Lines 601 and 602 are summary lines for the Seller. Enter total in 
Line 420 on Line 610. Enter total in Line 520 on Line 602.
    Line 603 may indicate either the cash required to be paid to the 
Seller at settlement (the usual case in a purchase transaction) or cash 
payable by the Seller at settlement. Subtract Line 602 from Line 601 and 
enter the amount of cash due to or from the Seller at settlement on Line 
603. The appropriate box should be checked.
    Section L. Settlement Charges.
    For all items except for those paid to and retained by the Lender, 
the name of the person or firm ultimately receiving the payment should 
be shown. In the case of ``no cost'' or ``no point'' loans, the charge 
to be paid by the lender to an affiliated or independent service 
provider should be shown as P.O.C. (Paid Outside of Closing) and should 
not be used in computing totals. Such charges also include indirect 
payments or back-funded payments to mortgage brokers that arise from the 
settlement transaction. When used, ``P.O.C.'' should be placed in the 
appropriate lines next to the identified item, not in the columns 
themselves.
    Line 700 is used to enter the sales commission charged by the sales 
agent or broker. If the sales commission is based on a percentage of the 
price, enter the sales price, the percentage, and the dollar amount of 
the total commission paid by the Seller.
    Lines 701-702 are to be used to state the split of the commission 
where the settlement agent disburses portions of the commission to two 
or more sales agents or brokers.
    Line 703 is used to enter the amount of sales commission disbursed 
at settlement. If the sales agent or broker is retaining a part of the 
deposit against the sales price (earnest money) to apply towards the 
sales agent's or broker's commission, include in Line 703 only that part 
of the commission being disbursed at settlement and insert a note on 
Line 704 indicating the amount the sales agent or broker is retaining as 
a ``P.O.C.'' item.
    Line 704 may be used for additional charges made by the sales agent 
or broker, or for a sales commission charged to the Borrower, which will 
be disbursed by the settlement agent.
    Line 801 is used to record the fee charged by the Lender for 
processing or originating the loan. If this fee is computed as a 
percentage of the loan amount, enter the percentage in the blank 
indicated.
    Line 802 is used to record the loan discount or ``points'' charged 
by the Lender, and, if it is computed as a percentage of the loan 
amount, enter the percentage in the blank indicated.
    Line 803 is used for appraisal fees if there is a separate charge 
for the appraisal. Appraisal fees for HUD and VA loans are also included 
on Line 803.
    Line 804 is used for the cost of the credit report if there is a 
charge separate from the origination fee.
    Line 805 is used only for inspections by the Lender or the Lender's 
agents. Charges for other pest or structural inspections required to be 
stated by these instructions should be entered in Lines 1301-1305.
    Line 806 should be used for an application fee required by a private 
mortgage insurance company.
    Line 807 is provided for convenience in using the form for loan 
assumption transactions.
    Lines 808-811 are used to list additional items payable in 
connection with the loan including a CLO Access fee, a mortgage broker 
fee, fees for real estate property taxes or other real property charges.
    Lines 901-905. This series is used to record the items which the 
Lender requires (but which are not necessarily paid to the lender, i.e., 
FHA mortgage insurance premium) to be paid at the time of settlement, 
other than reserves collected by the Lender and recorded in 1000 series.
    Line 901 is used if interest is collected at settlement for a part 
of a month or other period between settlement and the date from which 
interest will be collected with the first regular monthly payment. Enter 
that amount here and include the per diem charges. If such interest is 
not collected

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until the first regular monthly payment, no entry should be made on Line 
901.
    Line 902 is used for mortgage insurance premiums due and payable at 
settlement, except reserves collected by the Lender and recorded in the 
1000 series. A lump sum mortgage insurance premium paid at settlement 
should be inserted on Line 902, with a note that indicates that the 
premium is for the life of the loan.
    Line 903 is used for hazard insurance premiums which the Lender 
requires to be paid at the time of settlement except reserves collected 
by the Lender and recorded in the 1000 series.
    Lines 904 and 905 are used to list additional items required by the 
Lender (except for reserves collected by the Lender and recorded in the 
1000 series) including flood insurance, mortgage life insurance, credit 
life insurance and disability insurance premiums. These lines are also 
used to list amounts paid at settlement for insurance not required by 
the Lender.
    Lines 1000-1008. This series is used for amounts collected by the 
Lender from the Borrower and held in an account for the future payment 
of the obligations listed as they fall due. Include the time period 
(number of months) and the monthly assessment. In many jurisdictions 
this is referred to as an ``escrow'', ``impound'', or ``trust'' account. 
In addition to the items listed, some Lenders may require reserves for 
flood insurance, condominium owners' association assessments, etc.
    After itemizing individual deposits in the 1000 series using single-
item accounting, the servicer shall make an adjustment based on 
aggregate accounting. This adjustment equals the difference between the 
deposit required under aggregate accounting and the sum of the deposits 
required under single-item accounting. The computation steps for both 
accounting methods are set out in Sec. 3500.17(d). The adjustment will 
always be a negative number or zero (-0-). The settlement agent shall 
enter the aggregate adjustment amount on a final line in the 1000 series 
of the HUD-1 or HUD-1A statement.
    During the phase-in period, as defined in Sec. 3500.17(b), an 
alternative procedure is available. If a servicer has not yet conducted 
the escrow account analysis to determine the aggregate accounting 
starting balance, the settlement agent may initially calculate the 1000 
series deposits for the HUD-1 and HUD-1A settlement statement using 
single-item analysis with a one-month cushion (unless the mortgage loan 
documents indicate a smaller amount). In the escrow account analysis 
conducted within 45 days of settlement, the servicer shall adjust the 
escrow account to reflect the aggregate accounting balance.
    Lines 1100-1113. This series covers title charges and charges by 
attorneys. The title charges include a variety of services performed by 
title companies or others and includes fees directly related to the 
transfer of title (title examination, title search, document 
preparation) and fees for title insurance. The legal charges include 
fees for Lender's, Seller's or Buyer's attorney, or the attorney 
preparing title work. The series also includes any fees for settlement 
or closing agents and notaries. In many jurisdictions the same person 
(for example, an attorney or a title insurance company) performs several 
of the services listed in this series and makes a single overall charge 
for such services. In such cases, enter the overall fee on Line 1107 
(for attorneys), or Line 1108 (for title companies), and enter on that 
line the item numbers of the services listed which are covered in the 
overall fee. If this is done, no individual amounts need be entered into 
the borrower's and seller's columns for the individual items which are 
covered by the overall fee. In transactions involving more than one 
attorney, one attorney's fees should appear on Line 1107 and the other 
attorney's fees should be on Line 1111, 1112 or 1113. If an attorney is 
representing a buyer, seller, or lender and is also acting as a title 
agent, indicate on line 1107 which services are covered by the attorney 
fee and on line 1113 which services are covered by the insurance 
commission.
    Line 1101 is used for the settlement agent's fee.
    Lines 1102 and 1103 are used for the fees for the abstract or title 
search and title examination. In some jurisdictions the same person both 
searches the title (that is, performs the necessary research in the 
records) and examines title (that is, makes a determination as to what 
matters affect title, and provides a title report or opinion). If such a 
person charges only one fee for both services, it should be entered on 
Line 1103 unless the person performing these tasks is an attorney or a 
title company in which case the fees should be entered as described in 
the general directions for Lines 1100-1113. If separate persons perform 
these tasks, or if separate charges are made for searching and 
examination, they should be listed separately.
    Line 1104 is used for the title insurance binder which is also known 
as a commitment to insure.
    Line 1105 is used for charges for preparation of deeds, mortgages, 
notes, etc. If more than one person receives a fee for such work in the 
same transaction, show the total paid in the appropriate column and the 
individual charges on the line following the word ``to.''
    Line 1106 is used for the fee charged by a notary public for 
authenticating the execution of settlement documents.
    Line 1107 is used to disclose the attorney's fees for the 
transaction. The instructions are discussed in the general directions 
for Lines 1100-1113. This line should include any

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charges by an attorney to represent a buyer, seller or lender in the 
real estate transaction.
    Lines 1108-1110 are used for information regarding title insurance. 
Enter the total charge for title insurance (except for the cost of the 
title binder) on Line 1108. Enter on Lines 1109 and 1110 the individual 
charges for the Lender's and owner's policies. Note that these charges 
are not carried over into the Borrower's and Seller's columns, since to 
do so would result in a duplication of the amount in Line 1108. If a 
combination Lender's/owner's policy is purchased, show this amount as an 
additional entry on Lines 1109 and 1110.
    Lines 1111-1113 are for the entry of other title charges not already 
itemized. Examples in some jurisdictions would include a fee to a 
private tax service, a fee to a county tax collector for a tax 
certificate, or a fee to a public title registrar for a certificate of 
title in a Torrens Act transaction. Line 1113 should be used to disclose 
services that are covered by the commission of an attorney acting as a 
title agent when Line 1107 is already being used to disclose the fees 
and services of the attorney in representing the buyer, seller, or 
lender in the real estate transaction.
    Lines 1201-1205 are used for government recording and transfer 
charges. Recording and transfer charges should be itemized. Additional 
recording or transfer charges should be listed on Lines 1204 and 1205.
    Lines 1301 and 1302, or any other available blank line in the 1300 
series, are used for fees for survey, pest inspection, radon inspection, 
lead-based paint inspection, or other similar inspections.
    Lines 1303-1305 are used for any other settlement charges not 
referable to the categories listed above on the HUD-1, which are 
required to be stated by these instructions. Examples may include 
structural inspections or pre-sale inspection of heating, plumbing, or 
electrical equipment. These inspection charges may include a fee for 
insurance or warranty coverage.
    Line 1400 is for the total settlement charges paid from Borrower's 
funds and Seller's funds. These totals are also entered on Lines 103 and 
502, respectively, in sections J and K.

              Line Item Instructions for Completing HUD-1A

    Note: HUD-1A is an optional form that may be used for refinancing 
and subordinate lien federally related mortgage loans, as well as for 
any other one-party transaction that does not involve the transfer of 
title to residential real property. The HUD-1 form may also be used for 
such transactions, by utilizing the borrower's side of the HUD-1 and 
following the relevant parts of the instructions as set forth above. The 
use of either the HUD-1 or HUD-1A is not mandatory for open-end lines of 
credit (home-equity plans), as long as the provisions of Regulation Z 
are followed.

                               Background

    The HUD-1A settlement statement is to be used as a statement of 
actual charges and adjustments to be given to the borrower at 
settlement, as defined in this part. The instructions for completion of 
the HUD-1A are for the benefit of the settlement agent who prepares the 
statement; the instructions are not a part of the statement and need not 
be transmitted to the borrower. There is no objection to using the HUD-
1A in transactions in which it is not required, and its use in open-end 
lines of credit transactions (home-equity plans) is encouraged. It may 
not be used as a substitute for a HUD-1 in any transaction in which 
there is a transfer of title and a first lien is taken as security.
    Refer to the ``definitions'' section of Regulation X for specific 
definitions of terms used in these instructions.

                          General Instructions

    Information and amounts may be filled in by typewriter, hand 
printing, computer printing, or any other method producing clear and 
legible results. Refer to Sec. 3500.9 regarding rules for reproduction 
of the HUD-1A. Additional pages may be attached to the HUD-1A for the 
inclusion of customary recitals and information used locally for 
settlements or if there are insufficient lines on the HUD-1A.
    The settlement agent shall complete the HUD-1A to itemize all 
charges imposed upon the borrower by the lender, whether to be paid at 
settlement or outside of settlement, and any other charges that the 
borrower will pay for at settlement. In the case of ``no cost'' or ``no 
point'' loans, these charges include any payments the lender will make 
to affiliated or independent settlement service providers relating to 
this settlement. These charges shall be included on the HUD-1A, but 
marked ``P.O.C.'' for ``paid outside of closing,'' and shall not be used 
in computing totals. Such charges also include indirect payments or 
back-funded payments to mortgage brokers that arise from the settlement 
transaction. When used, ``P.O.C.'' should be placed in the appropriate 
lines next to the identified item, not in the columns themselves.
    Blank lines are provided in section L for any additional settlement 
charges. Blank lines are also provided in section M for recipients of 
all or portions of the loan proceeds. The names of the recipients of the 
settlement charges in section L and the names of the recipients of the 
loan proceeds in section M should be set forth on the blank lines.

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                         Line Item Instructions

    The identification information at the top of the HUD-1A should be 
completed as follows:
    The borrower's name and address is entered in the space provided. If 
the property securing the loan is different from the borrower's address, 
the address or other location information on the property should be 
entered in the space provided. The loan number is the lender's 
identification number for the loan. The settlement date is the date of 
settlement in accordance with Sec. 3500.2, not the end of any applicable 
rescission period. The name and address of the lender should be entered 
in the space provided.
    Section L. Settlement Charges. This section of the HUD-1A is similar 
to section L of the HUD-1, with minor changes or omissions, including 
deletion of lines 700 through 704, relating to real estate broker 
commissions. The instructions for section L in the HUD-1, should be 
followed insofar as possible. Inapplicable charges should be ignored, as 
should any instructions regarding seller items.
    Line 1400 in the HUD-1A is for the total settlement charges charged 
to the borrower. Enter this total on line 1602 as well. This total 
should include section L amounts from additional pages, if any are 
attached to this HUD-1A.
    Section M. Disbursement to Others. This section is used to list 
payees, other than the borrower, of all or portions of the loan proceeds 
(including the lender, if the loan is paying off a prior loan made by 
the same lender), when the payee will be paid directly out of the 
settlement proceeds. It is not used to list payees of settlement 
charges, nor to list funds disbursed directly to the borrower, even if 
the lender knows the borrower's intended use of the funds.
    For example, in a refinancing transaction, the loan proceeds are 
used to pay off an existing loan. The name of the lender for the loan 
being paid off and the pay-off balance would be entered in section M. In 
a home improvement transaction when the proceeds are to be paid to the 
home improvement contractor, the name of the contractor and the amount 
paid to the contractor would be entered in section M. In a consolidation 
loan, or when part of the loan proceeds is used to pay off other 
creditors, the name of each creditor and the amount paid to that 
creditor would be entered in section M. If the proceeds are to be given 
directly to the borrower and the borrower will use the proceeds to pay 
off existing obligations, this would not be reflected in section M.
    Section N. Net Settlement. Line 1600 normally sets forth the 
principal amount of the loan as it appears on the related note for this 
loan. In the event this form is used for an open-ended home equity line 
whose approved amount is greater than the initial amount advanced at 
settlement, the amount shown on Line 1600 will be the loan amount 
advanced at settlement. Line 1601 is used for all settlement charges 
that are both included in the totals for lines 1400 and 1602 and are not 
financed as part of the principal amount of the loan. This is the amount 
normally received by the lender from the borrower at settlement, which 
would occur when some or all of the settlement charges were paid in cash 
by the borrower at settlement, instead of being financed as part of the 
principal amount of the loan. Failure to include any such amount in line 
1601 will result in an error in the amount calculated on line 1604. 
P.O.C. amounts should not be included in line 1601.
    Line 1602 is the total amount from line 1400.
    Line 1603 is the total amount from line 1520.
    Line 1604 is the amount disbursed to the borrower. This is 
determined by adding together the amounts for lines 1600 and 1601, and 
then subtracting any amounts listed on lines 1602 and 1603.

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[GRAPHIC] [TIFF OMITTED] TR10FE94.010


(Approved by the Office of Management and Budget under control number 
2502-0265)

[57 FR 49607, Nov. 2, 1992; 57 FR 56857, Dec. 1, 1992, as amended at 59 
FR 6515, Feb. 10, 1994; 59 FR 53908, Oct. 26, 1994; 60 FR 8816, Feb. 15, 
1995; 60 FR 24735, May 9, 1995; 61 FR 13251, Mar. 26, 1996; 63 FR 3237, 
Jan. 21, 1998]

[[Page 294]]

     Appendix B to Part 3500--Illustrations of Requirements of RESPA

    The following illustrations provide additional guidance on the 
meaning and coverage of the provisions of RESPA. Other provisions of 
Federal or State law may also be applicable to the practices and 
payments discussed in the following illustrations.
    1. Facts: A, a provider of settlement services, provides settlement 
services at abnormally low rates or at no charge at all to B, a builder, 
in connection with a subdivision being developed by B. B agrees to refer 
purchasers of the completed homes in the subdivision to A for the 
purchase of settlement services in connection with the sale of 
individual lots by B.
    Comments: The rendering of services by A to B at little or no charge 
constitutes a thing of value given by A to B in return for the referral 
of settlement services business and both A and B are in violation of 
section 8 of RESPA.
    2. Facts: B, a lender, encourages persons who receive federally-
related mortgage loans from it to employ A, an attorney, to perform 
title searches and related settlement services in connection with their 
transaction. B and A have an understanding that in return for the 
referral of this business A provides legal services to B or B's officers 
or employees at abnormally low rates or for no charge.
    Comments: Both A and B are in violation of section 8 of RESPA. 
Similarly, if an attorney gives a portion of his or her fees to another 
attorney, a lender, a real estate broker or any other provider of 
settlement services, who had referred prospective clients to the 
attorney, section 8 would be violated by both persons.
    3. Facts: A, a real estate broker, obtains all necessary licenses 
under state law to act as a title insurance agent. A refers individuals 
who are purchasing homes in transactions in which A participates as a 
broker to B, an unaffiliated title company, for the purchase of title 
insurance services. A performs minimal, if any, title services in 
connection with the issuance of the title insurance policy (such as 
placing an application with the title company). B pays A a commission 
(or A retains a portion of the title insurance premium) for the 
transactions or alternatively B receives a portion of the premium paid 
directly from the purchaser.
    Comments: The payment of a commission or portion of the title 
insurance premium by B to A, or receipt of a portion of the payment for 
title insurance under circumstances where no substantial services are 
being performed by A is a violation of section 8 of RESPA. It makes no 
difference whether the payment comes from B or the purchaser. The amount 
of the payment must bear a reasonable relationship to the services 
rendered. Here A really is being compensated for a referral of business 
to B.
    4. Facts: A is an attorney who, as a part of his legal 
representation of clients in residential real estate transactions, 
orders and reviews title insurance policies for his clients. A enters 
into a contract with B, a title company, to be an agent of B under a 
program set up by B. Under the agreement, A agrees to prepare and 
forward title insurance applications to B, to re-examine the preliminary 
title commitment for accuracy and if he chooses to attempt to clear 
exceptions to the title policy before closing. A agrees to assume 
liability for waiving certain exceptions to title, but never exercises 
this authority. B performs the necessary title search and examination 
work, determines insurability of title, prepares documents containing 
substantive information in title commitments, handles closings for A's 
clients and issues title policies. A receives a fee from his client for 
legal services and an additional fee for his title agent ``services'' 
from the client's title insurance premium to B.
    Comments: A and B are violating section 8 of RESPA. Here, A's 
clients are being double billed because the work A performs as a ``title 
agent'' is that which he already performs for his client in his capacity 
as an attorney. For A to receive a separate payment as a title agent, A 
must perform necessary core title work and may not contract out the 
work. To receive additional compensation as a title agent for this 
transaction, A must provide his client with core title agent services 
for which he assumes liability, and which includes, at a minimum, the 
evaluation of the title search to determine insurability of the title, 
and the issuance of a title commitment where customary, the clearance of 
underwriting objections, and the actual issuance of the policy or 
policies on behalf of the title company. A may not be compensated for 
the mere re-examination of work performed by B. Here, A is not 
performing these services and may not be compensated as a title agent 
under section 8(c)(1)(B). Referral fees or splits of fees may not be 
disguised as title agent commissions when the core title agent work is 
not performed. Further, because B created the program and gave A the 
opportunity to collect fees (a thing of value) in exchange for the 
referral of settlement service business, it has violated section 8 of 
RESPA.
    5. Facts: A, a ``mortgage originator,'' receives loan applications, 
funds the loans with its own money or with a wholesale line of credit 
for which A is liable, and closes the loans in A's own name. 
Subsequently, B, a mortgage lender, purchases the loans and compensates 
A for the value of the loans, as well as for any mortgage servicing 
rights.
    Comments: Compensation for the sale of a mortgage loan and servicing 
rights constitutes a secondary market transaction,

[[Page 295]]

rather than a referral fee, and is beyond the scope of section 8 of 
RESPA. For purposes of section 8, in determining whether a bona fide 
transfer of the loan obligation has taken place, HUD examines the real 
source of funding, and the real interest of the named settlement lender.
    6. Facts. A, a credit reporting company, places a facsimile 
transmission machine (FAX) in the office of B, a mortgage lender, so 
that B can easily transmit requests for credit reports and A can 
respond. A supplies the FAX machine at no cost or at a reduced rental 
rate based on the number of credit reports ordered.
    Comments: Either situation violates section 8 of RESPA. The FAX 
machine is a thing of value that A provides in exchange for the referral 
of business from B. Copying machines, computer terminals, printers, or 
other like items which have general use to the recipient and which are 
given in exchange for referrals of business also violate RESPA.
    7. Facts: A, a real estate broker, refers title business to B, a 
company that is a licensed title agent for C, a title insurance company. 
A owns more than 1% of B. B performs the title search and examination, 
makes determinations of insurability, issues the commitment, clears 
underwriting objections, and issues a policy of title insurance on 
behalf of C, for which C pays B a commission. B pays annual dividends to 
its owners, including A, based on the relative amount of business each 
of its owners refers to B.
    Comments: The facts involve an affiliated business arrangement. The 
payments of a commission by C to B is not a violation of section 8 of 
RESPA if the amount of the commission constitutes reasonable 
compensation for the services performed by B for C. The payment of a 
dividend or the giving of any other thing of value by B to A that is 
based on the amount of business referred to B by A does not meet the 
affiliated business agreement exemption provisions and such actions 
violate section 8. Similarly, if the amount of stock held by A in B (or, 
if B were a partnership, the distribution of partnership profits by B to 
A) varies based on the amount of business referred or expected to be 
referred, or if B retained any funds for subsequent distribution to A 
where such funds were generally in proportion to the amount of business 
A referred to B relative to the amount referred by other owners such 
arrangements would violate section 8. The exemption for controlled 
business arrangements would not be available because the payments here 
would not be considered returns on ownership interests. Further, the 
required disclosure of the affiliated business arrangement and estimated 
charges have not been provided.
    8. Facts: Same as illustration 7, but B pays annual dividends in 
proportion to the amount of stock held by its owners, including A, and 
the distribution of annual dividends is not based on the amount of 
business referred or expected to be referred.
    Comments: If A and B meet the requirements of the affiliated 
business arrangement exemption there is not a violation of RESPA. Since 
the payment is a return on ownership interests, A and B will be exempt 
from section 8 if (1) A also did not require anyone to use the services 
of B, and (2) A disclosed its ownership interest in B on a separate 
disclosure form and provided an estimate of B's charges to each person 
referred by A to B (see appendix D of this part), and (3) B makes no 
payment (nor is there any other thing of value exchanged) to A other 
than dividends.
    9. Facts: A, a franchisor for franchised real estate brokers, owns 
B, a provider of settlement services. C, a franchisee of A, refers 
business to B.
    Comments: This is an affiliated business arrangement. A, B and C 
will all be exempt from section 8 if C discloses its franchise 
relationship with the owner of B on a separate disclosure form and 
provides an estimate of B's charges to each person referred to B (see 
appendix D of this part) and C does not require anyone to use B's 
services and A gives no thing a value to C under the franchise agreement 
(such as an adjusted level of franchise payment based on the referrals), 
and B makes no payments to A other than dividends representing a return 
on ownership interest (rather than, e.g., an adjusted level of payment 
being based on the referrals). Nor may B pay C anything of value for the 
referral.
    10. Facts: A is a real estate broker who refers business to its 
affiliate title company B. A makes all required written disclosures to 
the homebuyer of the arrangement and estimated charges and the homebuyer 
is not required to use B. B refers or contracts out business to C who 
does all the title work and splits the fee with B. B passes its fee to A 
in the form of dividends, a return on ownership interest.
    Comments: The relationship between A and B is an affiliated business 
arrangement. However, the affiliated business arrangement exemption does 
not provide exemption between an affiliated entity, B, and a third 
party, C. Here, B is a mere ``shell'' and provides no substantive 
services for its portion of the fee. The arrangement between B and C 
would be in violation of section 8(a) and (b). Even if B had an 
affiliate relationship with C, the required exemption criteria have not 
been met and the relationship would be subject to section 8.
    11. Facts: A, a mortgage lender is affiliated with B, a title 
company, and C, an escrow company and offers consumers a package of 
mortgage title and escrow services at a discount from the prices at 
which such services

[[Page 296]]

would be sold if purchased separately. Neither A, B, nor C, requires 
consumers to purchase the services of their sister companies and each 
company sells such services separately and as part of the package. A 
also pays its employees (i.e., loan officers, secretaries, etc.,) a 
bonus for each loan, title insurance or closing that A's employees 
generate for A, B, or C respectively. A pays such employee bonuses out 
of its own funds and receives no payments or reimbursements for such 
bonuses from B or C. At or before the time that customers are told by A 
or its employees about the services offered by B and C and/of the 
package of services that is available, the customers are provided with 
an affiliated business disclosure form.
    Comments: A's selling of a package of settlement services at a 
discount to a settlement service purchaser does not violate section 8 of 
RESPA. A's employees are making appropriate affiliated business 
disclosures and since the services are available separately and as part 
of a package, there is not ``required use'' of the additional services. 
A's payments of bonuses to its employees for the referral of business to 
A or A's affiliates, B and C, are exempt from section 8 under section 
3500.14(g)(1). However, if B or C reimbursed A for any bonuses that A 
paid to its employees for referring business to B or C, such 
reimbursements would violate section 8. Similarly, if B or C paid 
bonuses to A's employees directly for generating business for them, such 
payments would violate section 8.
    12. Facts: A, a real estate broker, is affiliated with B, a mortgage 
lender, and C, a title agency. A employs F to advise and assist any 
customers of A who have executed sales contracts regarding mortgage 
loans and title insurance. F collects and transmits (by computer, fax, 
mail, or other means) loan applications or other information to B and C 
for processing. A pays F a small salary and a bonus for every loan 
closed with B or title insurance issued with C. F furnishes the 
controlled business disclosure to consumers at the time of each 
referral. F receives no other compensation from the real estate or 
mortgage transaction and performs no settlement services in any 
transaction. At the end of each of A's fiscal years, M, a managerial 
employee of A, receives a $1,000 bonus if 20% of the consumers who 
purchase a home through A close a loan on the home with B and have the 
title issued by C. During the year, M acted as a real estate agent for 
his neighbor and received a real estate sales commission for selling his 
neighbor's home.
    Comments: Under Sec. 3500.14(g)(1), employers may pay their own bona 
fide employees for generating business for their employer 
(Sec. 3500.14(g)(1)(vii)). Employers may also pay their own bona fide 
employees for generating business for their affiliate business entities 
(Sec. 3500.14(g)(1)(ix)), as long as the employees do not perform 
settlement services in any transaction and disclosure is made. This 
permits a company to employ a person whose primary function is to market 
the employer's or its affiliate's settlement services (frequently 
referred to as a Financial Services Representative, or ``FSR''). An FSR 
may not perform any settlement services including, for example, those 
services of a real estate agent, loan processor, settlement agent, 
attorney, or mortgage broker. In accordance with the terms of the 
exemption at Sec. 3500.14(g)(1)(ix), the marketing of a settlement 
service or product of an affiliated entity, including the collection and 
conveyance of information or the taking of an application or order for 
the services of an affiliated entity, does not constitute the 
performance of a settlement service. Under the exemption, marketing of a 
settlement service or product also may include incidental communications 
with the consumer after the application or order, such as providing the 
consumer with information about the status of an application or order; 
marketing may not include serving as the ongoing point of contact for 
coordinating the delivery and provision of settlement services.
    Thus, in the circumstances described, F and M may receive the 
additional compensation without violating RESPA.
    Also, employers may pay managerial employees compensation in the 
form of bonuses based on a percentage of transactions completed by an 
affiliated company (frequently called a ``capture rate''), as long as 
the payment is not directly calculated as a multiple of the number or 
value of the referrals. 24 CFR 3500.14(g)(1)(viii). A managerial 
employee who receives compensation for performing settlement services in 
three or fewer transactions in any calendar year ``does not routinely'' 
deal directly with the consumer and is not precluded from receiving 
managerial compensation.
    13. Facts. A is a mortgage broker who provides origination services 
to submit a loan to a Lender for approval. The mortgage broker charges 
the borrower a uniform fee for the total origination services, as well 
as a direct up-front charge for reimbursement of credit reporting, 
appraisal services or similar charges.
    Comment. The mortgage broker's fee must be itemized in the Good 
Faith Estimate and on the HUD-1 Settlement Statement. Other charges 
which are paid for by the borrower and paid in advance are listed as 
P.O.C. on the HUD-1 Settlement Statement, and reflect the actual 
provider charge for such services. Also, any other fee or payment 
received by the mortgage broker from either the lender or the borrower 
arising from the

[[Page 297]]

initial funding transaction, including a servicing release premium or 
yield spread premium, is to be noted on the Good Faith Estimate and 
listed in the 800 series of the HUD-1 Settlement Statement.
    14. Facts. A is a dealer in home improvements who has established 
funding arrangements with several lenders. Customers for home 
improvements receive a proposed contract from A. The proposal requires 
that customers both execute forms authorizing a credit check and 
employment verification, and, frequently, execute a dealer consumer 
credit contract secured by a lien on the customer's (borrower's) 1- to 
4-family residential property. Simultaneously with the completion and 
certification of the home improvement work, the note is assigned by the 
dealer to a funding lender.
    Comments. The loan that is assigned to the funding lender is a loan 
covered by RESPA, when a lien is placed on the borrower's 1- to 4-family 
residential structure. The dealer loan or consumer credit contract 
originated by a dealer is also a RESPA-covered transaction, except when 
the dealer is not a ``creditor'' under the definition of ``federally 
related mortgage loan'' in Sec. 3500.2. The lender to whom the loan will 
be assigned is responsible for assuring that the lender or the dealer 
delivers to the borrower a Good Faith Estimate of closing costs 
consistent with Regulation X, and that the HUD-1 or HUD-1A Settlement 
Statement is used in conjunction with the settlement of the loan to be 
assigned. A dealer who, under Sec. 3500.2, is covered by RESPA as a 
creditor is responsible for the Good Faith Estimate of Closing Costs and 
the use of the appropriate settlement statement in connection with the 
loan.

[57 FR 49607, Nov. 2, 1992; 57 FR 56857, Dec. 1, 1992, as amended at 59 
FR 6521, Feb. 10, 1994; 61 FR 13251, Mar. 26, 1996; 61 FR 29253, June 7, 
1996; 61 FR 58476, Nov. 15, 1996]

    Effective Date Note: At 61 FR 29253, June 7, 1996, appendix B to 
part 3500 was amended by revising Illustration 11, redesignating 
Illustrations 12 and 13 as Illustrations 13 and 14, respectively, and 
adding a new Illustration 12, effective Oct. 7, 1996. At 61 FR 51782, 
Oct. 4, 1996, the effective date was delayed until further notice. For 
the convenience of the user, the revised text is set forth as follows:

     Appendix B to Part 3500--Illustrations of Requirements of RESPA

                                * * * * *

    11. Facts: A, a mortgage lender, is affiliated with B, a title 
company, and C, an escrow company, and offers consumers a package of 
mortgage, title, and escrow services at a discount from the prices at 
which such services would be sold if purchased separately. A, B, and C 
are subsidiaries of H, a holding company, which also controls a retail 
stock brokerage firm, D. None of A, B, or C requires consumers to 
purchase the services of its sister companies, and each company sells 
such services separately and as part of the package. A also pays an 
employee T, a full-time bank teller who does not perform settlement 
services, a bonus for each loan, title insurance binder, or closing that 
T generates for A, B, or C. A pays T these bonuses out of A's own funds 
and receives no reimbursements for these bonuses from B, C, or H. At the 
time that T refers customers to B and C, T provides the customers with a 
disclosure using the controlled business arrangement disclosure format. 
Also, Z, a stockbroker employee of D, occasionally refers her customers 
to A, B, or C; gives a statement in the controlled business disclosure 
format; and receives a payment from D for each referral.
    Comments: Selling a package of settlement services at a discount is 
not prohibited by RESPA, consistent with the definition of ``required 
use'' in 24 CFR 3500.2. Also, A is always allowed to compensate its own 
employees for business generated for A's company. Here, A may also 
compensate T, an employee who does not perform settlement services in 
this or any transaction, for referring business to a business entity in 
an affiliate relationship with A. Z, who does not perform settlement 
services in this or any transaction, can also be compensated by D, but 
not by anyone else. Employees who perform settlement services cannot be 
compensated for referrals to other settlement service providers. None of 
the entities in an affiliated relationship with each other may pay for 
referrals received from an affiliate's employees. Sections 
3500.15(b)(3)(i)(A) and (B) set forth the permissible exchanges of funds 
between controlled business entities. In all circumstances described a 
statement in the controlled business disclosure format must be provided 
to a potential consumer at or before the time that the referral is made.

                                * * * * *

       Appendix C to Part 3500--Sample Form of Good Faith Estimate

                          [Name of Lender] \1\

    The information provided below reflects estimates of the charges 
which you are likely to incur at the settlement of your loan. The fees 
listed are estimates--the actual charges may be more or less. Your 
transaction may not involve a fee for every item listed.
    The numbers listed beside the estimates generally correspond to the 
numbered lines contained in the HUD-1 or HUD-1A settlement statement 
that you will be receiving at

[[Page 298]]

settlement. The HUD-1 or HUD-1A settlement statement will show you the 
actual cost for items paid at settlement.

------------------------------------------------------------------------
            Item \2\                 HUD-1 or HUD-1A     Amount or range
------------------------------------------------------------------------
Loan origination fee............  801.................  $--------
Loan discount fee...............  802.................  $--------
Appraisal fee...................  803.................  $--------
Credit report...................  804.................  $--------
Inspection fee..................  805.................  $--------
Mortgage broker fee.............  [Use blank line in    $--------
                                   800 Section].
CLO access fee..................   [Use blank line in   $--------
                                   800 Section].
Tax related service fee.........  [Use blank line in    $--------
                                   800 Section].
Interest for [X] days at          901.................  $--------
 $-------- per day.
Mortgage insurance premium......  902.................  $--------
Hazard insurance premiums.......  903.................  $--------
Reserves \3\....................  1000-1005...........  $--------
Settlement fee..................  1101................  $--------
Abstract or title search........  1102................  $--------
Title examination...............  1103................  $--------
Document preparation fee........  1105................  $--------
Attorney's fee..................  1107................  $--------
Title insurance.................  1108................  $--------
Recording fees..................  1201................  $--------
City/County tax stamps..........  1202................  $--------
State tax.......................  1203................  $--------
Survey..........................  1301................  $--------
Pest inspection.................  1302................  $--------
[Other fees--list here].........  ....................  $--------
------------------------------------------------------------------------


________________________________________________________________________
Applicant

________________________________________________________________________
Date

________________________________________________________________________
Authorized Official

    These estimates are provided pursuant to the Real Estate Settlement 
Procedures Act of 1974, as amended (RESPA). Additional information can 
be found in the HUD Special Information Booklet, which is to be provided 
to you by your mortgage broker or lender, if your application is to 
purchase residential real property and the Lender will take a first lien 
on the property.

                                Footnotes

    \1\ The name of the lender shall be placed at the top of the form. 
Additional information identifying the loan application and property may 
appear at the bottom of the form or on a separate page. Exception: If 
the disclosure is being made by a mortgage broker who is not an 
exclusive agent of the lender, the lender's name will not appear at the 
top of the form, but the following legend must appear:
    This Good Faith Estimate is being provided by ----------------, a 
mortgage broker, and no lender has yet been obtained.
    \2\ Items for which there is estimated to be no charge to the 
borrower are not required to be listed. Any additional items for which 
there is estimated to be a charge to the borrower shall be listed if 
required on the HUD-1.
    \3\ As an alternative to using aggregate accounting with no more 
than a two-month cushion, the estimate may be obtained by using single-
item accounting with no more than a one-month cushion.

[58 FR 17165, Apr. 1, 1993, as amended at 59 FR 6521, Feb. 10, 1994; 63 
FR 3237, Jan. 21, 1998]

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[61 FR 58477, Nov. 15, 1996]

                Appendix E to Part 3500--Arithmetic Steps

               I. Example Illustrating Aggregate Analysis:

                              ASSUMPTIONS:

Disbursements:
    $360 for school taxes disbursed on September 20
    $1,200 for county property taxes:
    $500 disbursed on July 25
    $700 disbursed on December 10
Cushion: One-sixth of estimated annual disbursements
Settlement: May 15
First Payment: July 1

                      Step 1--Initial Trial Balance
------------------------------------------------------------------------
                                                      Aggregate
                                           -----------------------------
                                               pmt      disb       bal
------------------------------------------------------------------------
Jun.......................................         0         0         0
Jul.......................................       130       500      -370
Aug.......................................       130         0      -240
Sep.......................................       130       360      -470
Oct.......................................       130         0      -340
Nov.......................................       130         0      -210
Dec.......................................       130       700      -780
Jan.......................................       130         0      -650
Feb.......................................       130         0      -520
Mar.......................................       130         0      -390
Apr.......................................       130         0      -260
May.......................................       130         0      -130
Jun.......................................       130         0         0
------------------------------------------------------------------------


                     Step 2--Adjusted Trial Balance
       [Increase monthly balances to eliminate negative balances]
------------------------------------------------------------------------
                                                      Aggregate
                                           -----------------------------
                                               pmt      disb       bal
------------------------------------------------------------------------
Jun.......................................         0         0       780
Jul.......................................       130       500       410
Aug.......................................       130         0       540
Sep.......................................       130       360       310
Oct.......................................       130         0       440
Nov.......................................       130         0       570
Dec.......................................       130       700         0
Jan.......................................       130         0       130
Feb.......................................       130         0       260
Mar.......................................       130         0       390
Apr.......................................       130         0       520
May.......................................       130         0       650
Jun.......................................       130         0       780
------------------------------------------------------------------------


                   Step 3--Trial Balance With Cushion
------------------------------------------------------------------------
                                                      Aggregate
                                           -----------------------------
                                               pmt      disb       bal
------------------------------------------------------------------------
Jun.......................................         0         0      1040
Jul.......................................       130       500       670
Aug.......................................       130         0       800
Sep.......................................       130       360       570
Oct.......................................       130         0       700
Nov.......................................       130         0       830
Dec.......................................       130       700       260
Jan.......................................       130         0       390
Feb.......................................       130         0       520
Mar.......................................       130         0       650
Apr.......................................       130         0       780
May.......................................       130         0       910
Jun.......................................       130         0      1040
------------------------------------------------------------------------

    II. Example Illustrating Single-Item Analysis (Existing Accounts)

                              ASSUMPTIONS:

Disbursements:
    $360 for school taxes disbursed on September 20
    $1,200 for county property taxes:
    $500 disbursed on July 25
    $700 disbursed on December 10
Cushion: One-sixth of estimated annual disbursements
Settlement: May 15
First Payment: July 1

[[Page 301]]



                                          Step 1--Initial Trial Balance
----------------------------------------------------------------------------------------------------------------
                                                                              Single-item
                                                     -----------------------------------------------------------
                                                                  Taxes                     School taxes
                                                     -----------------------------------------------------------
                                                         pmt      disb       bal       pmt      disb       bal
----------------------------------------------------------------------------------------------------------------
June................................................         0         0         0         0         0         0
July................................................       100       500      -400        30         0        30
August..............................................       100         0      -300        30         0        60
September...........................................       100         0      -200        30       360      -270
October.............................................       100         0      -100        30         0      -240
November............................................       100         0         0        30         0      -210
December............................................       100       700      -600        30         0      -180
January.............................................       100         0      -500        30         0      -150
February............................................       100         0      -400        30         0      -120
March...............................................       100         0      -300        30         0       -90
April...............................................       100         0      -200        30         0       -60
May.................................................       100         0      -100        30         0       -30
June................................................       100         0         0        30         0         0
----------------------------------------------------------------------------------------------------------------


            Step 2--Adjusted Trial Balance (Increase Monthly Balances To Eliminate Negative Balances)
----------------------------------------------------------------------------------------------------------------
                                                                              Single-item
                                                     -----------------------------------------------------------
                                                                  Taxes                     School taxes
                                                     -----------------------------------------------------------
                                                         pmt      disb       bal       pmt      disb       bal
----------------------------------------------------------------------------------------------------------------
Jun.................................................         0         0       600         0         0       270
Jul.................................................       100       500       200        30         0       300
Aug.................................................       100         0       300        30         0       330
Sep.................................................       100         0       400        30       360         0
Oct.................................................       100         0       500        30         0        30
Nov.................................................       100         0       600        30         0        60
Dec.................................................       100       700         0        30         0        90
Jan.................................................       100         0       100        30         0       120
Feb.................................................       100         0       200        30         0       150
Mar.................................................       100         0       300        30         0       180
Apr.................................................       100         0       400        30         0       210
May.................................................       100         0       500        30         0       240
Jun.................................................       100         0       600        30         0       270
----------------------------------------------------------------------------------------------------------------


                                       Step 3--Trial Balance With Cushion
----------------------------------------------------------------------------------------------------------------
                                                                              Single-Item
                                                     -----------------------------------------------------------
                                                                  Taxes                     School taxes
                                                     -----------------------------------------------------------
                                                         pmt      disb       bal       pmt      disb       bal
----------------------------------------------------------------------------------------------------------------
Jun.................................................         0         0       800         0         0       330
Jul.................................................       100       500       400        30         0       360
Aug.................................................       100         0       500        30         0       390
Sep.................................................       100         0       600        30       360        60
Oct.................................................       100         0       700        30         0        90
Nov.................................................       100         0       800        30         0       120
Dec.................................................       100       700       200        30         0       150
Jan.................................................       100         0       300        30         0       180
Feb.................................................       100         0       400        30         0       210
Mar.................................................       100         0       500        30         0       240
Apr.................................................       100         0       600        30         0       270
May.................................................       100         0       700        30         0       300
Jun.................................................       100         0       800        30         0       330
----------------------------------------------------------------------------------------------------------------


[59 FR 53908, Oct. 26, 1994, as amended at 60 FR 8816, Feb. 15, 1995. 
Redesignated at 61 FR 58479, Nov. 15, 1996]

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[59 FR 65452, Dec. 19, 1994; 60 FR 2643, Jan. 10, 1995; 60 FR 5962, Jan. 
31, 1995]

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[61 FR 13252, Mar. 26, 1996]



PART 3800--INVESTIGATIONS IN CONSUMER REGULATORY PROGRAMS--Table of Contents




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.

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



Sec. 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.



Sec. 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 must set forth the facts and law upon which the 
petition is based.



Sec. 3800.30  Subpoena enforcement in district court.

    In the case of contumacy of a witness or a witness's refusal to obey 
a subpoena or order of the Secretary, the United States district court 
for the jurisdiction in which an investigation is carried on may issue 
an order requiring compliance with the subpoena. HUD headquarters in 
Washington, DC, is one of the locations in which the Secretary

[[Page 309]]

carries on investigations of its consumer regulatory programs.



Sec. 3800.40  Investigational proceedings.

    (a) For the purpose of hearing the testimony of witnesses and 
receiving documents and other data relating to any subject under 
investigation, the Secretary, or the Secretary's designee, may conduct 
an investigational proceeding.
    (b) The Secretary, or the Secretary's designee, (``presiding 
official'') shall preside over the investigational proceeding. The 
proceeding shall be stenographically or mechanically reported. A 
transcript shall be a part of the record of the investigation.
    (c) Unless the presiding official determines otherwise, 
investigational proceedings shall be public.
    (d) The presiding official shall take all necessary action to 
regulate the course of the proceeding to avoid delay and to maintain 
order. If necessary to maintain order, the presiding official may 
exclude a witness or counsel from a proceeding. The Department may also 
take further action as permitted by statute.



Sec. 3800.50  Rights of witnesses in investigational proceedings.

    (a) Any person who testifies at a public investigational proceeding 
shall be entitled, on payment of costs, to purchase a copy of a 
transcript of the testimony the person provided.
    (b) In a nonpublic investigational proceeding, the presiding 
official may for good cause limit a witness to an inspection of the 
official transcript of that witness's testimony.
    (c) Any person subpoenaed to appear at an investigational proceeding 
may be represented by counsel as follows:
    (1) With respect to any question asked of a witness, a witness may 
obtain confidential advice from counsel;
    (2) If a witness refuses to answer a question, counsel for the 
witness may briefly state the legal grounds for the refusal;
    (3) Counsel for the witness may object to a question or a request 
for production of documents that is beyond the scope of the 
investigation or for which a privilege of the witness to refuse to 
answer may be invoked. In so doing, counsel for the witness may state 
briefly the grounds for the objection. Objections will be deemed 
continuing throughout the course of the proceeding. Repetitious or 
cumulative statements of an objection or the grounds for an objection 
are unnecessary and impermissible; and
    (4) After the Department's examination of a witness, counsel for the 
witness may request that the witness be permitted to clarify any answers 
to correct any ambiguity, equivocation, or incompleteness in the 
witness's testimony. The decision to grant or deny this request is 
within the sole discretion of the presiding official.



Sec. 3800.60  Settlements.

    (a) At any time during an investigation, the Department and the 
parties subject to an investigation may conduct settlement negotiations.
    (b) When the Secretary or Secretary's designee deems it appropriate, 
the Department may enter into a settlement agreement.

[[Page 311]]



           CHAPTER XXV--NEIGHBORHOOD REINVESTMENT CORPORATION




  --------------------------------------------------------------------
Part                                                                Page
4100            Organization and channeling of functions....         313

[[Page 313]]



PART 4100--ORGANIZATION AND CHANNELING OF FUNCTIONS--Table of Contents




Sec.
4100.1  Functions and activities.
4100.2  General organization.
4100.3  Field activities.
4100.4  Inquiries.

    Authority: Title VI, Pub. L. 95-557, 92 Stat. 2115 (42 U.S.C. 8101 
et seq.); as amended by sec. 315, Pub. L. 96-399, 94 Stat. 1645; sec. 
710, Pub. L. 97-320, 96 Stat. 1544; and sec. 520, Pub. L. 100-242, 101 
Stat. 1815.

    Source: 49 FR 12700, Mar. 30, 1984, unless otherwised noted.



Sec. 4100.1  Functions and activities.

    (a) General statement. The Neighborhood Reinvestment Corporation 
(referred to in this part as the Corporation) was established by 
Congress in the Neighborhood Reinvestment Corporation Act (title VI of 
the Housing and Community Development Amendments of 1978, Pub. L. 95-
557, October 31, 1978). The Corporation is not a department, agency, or 
instrumentality of the Federal Government.
    (b) The Corporation is authorized to receive and expend Federal 
appropriations and other public and private revenues to conduct a 
variety of programs designed primarily to revitalize older urban 
neighborhoods by mobilizing public, private, and community resources at 
the neighborhood level. These programs include:
    (1) Neighborhood Housing Services. The major effort of the 
Corporation is to assist local communities in the development, expansion 
and provision of technical services to local Neighborhood Housing 
Services (NHS) programs. NHS programs are based upon partnerships of 
community residents, and representatives of local governments and 
financial institutions. Each local program is administered by an 
autonomous, private, non-profit corporation, and conducts a 
comprehensive revitalization effort in locally selected neighborhoods. 
Services to neighborhood residents include rehabilitation counseling, 
construction assistance, financial counseling, loan referrals and loans 
at flexible rates and terms to homeowners who do not meet private 
lending criteria. Programs and strategies to remove blighting 
influences, obtain improved public services and amenities, and improve 
the neighborhood's image and the functioning of its real estate market 
are also undertaken. To insure the continuing effectiveness of NHS 
programs, the Corporation provides grants, training, information and 
technical services to NHS programs.'
    (2) Mutual Housing Associations. The Corporation also supports the 
organizational development of, and provides technical assistance to, 
Mutual Housing Associations. Mutual Housing Associations are private, 
nonprofit organizations which own, manage and continually develop 
affordable housing. Mutual Housing residents are members of the 
Association which owns and manages their buildings; thus they enjoy the 
security of long-term housing tenure. Mutual Housing developments are 
capitalized through up-front grants and mortgages in a combination that 
ensures permanent affordability to low- and moderate-income families. 
Monthly housing charges to residents are kept at affordable levels on a 
continuing basis. A key element of Mutual Housing is the Association's 
commitment to use all resources in excess of operating and maintenance 
costs for the production of additional units. A Mutual Housing 
Association's board of directors includes current member-residents, 
potential residents, and representatives from the community, local 
government and business. Residents and community members make up the 
majority on the board. A highly qualified professional staff, employed 
by the Mutual Housing Association, carries out the day-to-day activities 
of the organization. In addition to creating new affordable housing 
opportunities, Mutual Housing Associations offer a creative alternative 
for subsidized rental housing developments whose subsidies are scheduled 
to expire.
    (3) Neighborhood preservation projects. The Corporation identifies, 
monitors, evaluates and supports through demonstration grants and 
technical assistance other promising neighborhood preservation 
strategies based on local, public-private partnerships.

[[Page 314]]

    (4) Programmatic supplements. Proven, replicable programmatic tools 
are offered as broadly as resources permit. Often, these selected 
strategies are supported by Neighborhood Reinvestment grants. The 
Corporation's major programmatic supplements include the following:
    (i) Neighborhood economic development and commercial revitalization 
strategies. The Corporation's neighborhood economic development and 
commercial revitalization strategies offer NHSs a variety of tools 
designed to stabilize and enhance the economic base of NHS 
neighborhoods. They complement NHSs' revitalization mission by focusing 
the energies and resources of the partnership on the economic issues 
underlying neighborhood decline. Neighborhood economic development and 
commercial revitalization assures a viable neighborhood economy by 
strengthening small businesses and improving the physical environment of 
the area, thus providing additional goods, services, and employment 
opportunities for the community.
    (ii) Housing Development Strategies. The Corporation's Housing 
Development Strategies program addresses the shortage of affordable, 
quality housing available to low to moderate income families in NHS 
neighborhoods, as well as the blighting effect of vacant lots and 
substandard properties. Home ownership opportunities are created through 
the planning and implementation of a variety of housing mechanisms by 
the NHS, which are intended to reverse negative real estate market 
trends, enhance new residential growth, and create renewed neighborhood 
pride. The mechanisms being used to achieve these goals include the 
following.
    (A) The Owner Built Housing program is a supervised housing 
construction process that helps moderate-income homeowners to 
collectively build their own homes. The NHS provides technical 
assistance while private lenders and public bodies providing financing.
    (B) The Owner Rehab Housing program assists low to moderate income 
families in collectively rehabilitating existing blighted and vacant 
structures.
    (C) The Infill Housing program provides a mechanism for assisting 
NHSs in building new units on vacant land to meet the needs of 
prospective lower income homeowners.
    (D) The Urban Subdivisions program focuses on providing low cost, 
new housing for low-to-moderate income families on tracts of land 
suitable for the construction of 20 or more units.
    (iii) Problem properties strategies. This program assists NHSs in 
addressing specific problem areas beyond the scope of basic NHS services 
and typical financial resources. Through the implementation of various 
problem properties strategies, NHS programs are able to assist tenants 
to purchase, improve the physical condition of target blocks, eliminate 
vacant neighborhood eyesores, develop housing and service facilities for 
special populations, and stimulate private reinvestment and new 
conventional mortgages in the NHS community.
    (5) Apartment Improvement Program. The goal of the Apartment 
Improvement Program is to provide an effective, economical means of 
revitalizing and preserving neighborhoods with multi-family housing for 
the benefit of the current residents. The program is based upon a 
partnership of tenants and community representatives, property owners 
and managers, financial institutions and local government. The program 
assists in the development of an individually tailored improvement plan 
of activities from which each building may benefit, including tenant 
participation, tax assessment reviews, and increased investment or 
restructured mortgages to improve the economic viability of the 
buildings and to finance improvements.
    (6) Neighborhood Housing Services of America. The Corporation also 
supports Neighborhood Housing Services of America (NHSA), an 
independent, private, non-profit corporation which provides a variety of 
services to local NHS programs, including a secondary market for NHS 
revolving loan fund loans, and the strengthening of private sector 
resources available to the network of local NHSs.

[49 FR 12700, Mar. 30, 1984, as amended at 54 FR 13061, Mar. 30, 1989]

[[Page 315]]



Sec. 4100.2  General organization.

    (a) The Board of Directors. (1) The Corporation is under the 
direction of a Board of Directors composed of six members: the Chairman 
of the Federal Home Loan Bank Board or a member of the Federal Home Loan 
Bank Board designated by the Chairman; the Secretary of Housing and 
Urban Development; the Chairman of the Board of Governors of the Federal 
Reserve System, or a member of the Board of Governors of the Federal 
Reserve System designated by the Chairman; the Chairman of the Federal 
Deposit Insurance Corporation or the appointive member of the Board of 
Directors of the Federal Deposit Insurance Corporation if so designated 
by the Chairman; the Comptroller of the Currency; and the Chairman of 
the National Credit Union Administration, or a member of the Board of 
the National Credit Union Administration designated by the Chairman. 
Members of the Board serve without additional compensation. The Board 
elects from among its members a Chairman and Vice-Chairman. The Bylaws 
of the Corporation provide for the creation of an Audit Committee, and 
such other committees as the Board may from time to time establish.
    (2) The Board holds an Annual Meeting each year during the month of 
May (or as the Bylaws or the Board may specify). The Board also holds 
regular meetings at least quarterly and special meetings as required. 
The meetings of the Board are conducted in accordance with provisions of 
the Neighborhood Reinvestment Corporation Act, the Government in the 
Sunshine Act (5 U.S.C. 552b), the Corporation's Bylaws, and when not 
inconsistent with the foregoing, with Robert's Rules of Order. Every 
portion of every meeting of the Board is open to public observation 
except as provided by the Government in the Sunshine Act. Interested 
members of the public may attend such meetings, but may not participate 
therein unless invited or permitted to do so by the Board.
    (3) The Secretary of the Corporation, in consultation with the 
Corporation's General Counsel, is responsible for taking such steps as 
are required to ensure the Corporation's compliance with the Government 
in the Sunshine Act, as that Act may be amended from time to time. 
Consistent with this responsibility, the Secretary of the Corporation 
provides to the Communications Department at the principal office of the 
Corporation such records as the Act requires to be made available to the 
public for access during regular office hours on regular business days.
    (b) The Officers. (1) The officers of the Corporation are the 
Executive Director, the Deputy Executive Director, the Secretary, the 
Treasurer, and such other officer positions as the Board may, in 
consultation with the Executive Director, create. The Board elects the 
officers of the Corporation annually.
    (2) The Neighborhood Reinvestment Corporation Act provides that the 
Executive Director shall serve as the chief executive officer of the 
Corporation. Consistent with that authority, the Corporation's Bylaws 
provide that the Executive Director shall have the responsibility and 
authority for the day-to-day administration of the affairs of the 
Corporation under the general supervision of the Board. The Board 
periodically reviews the activities of the Executive Director and, from 
time to time, provides guidance and policy direction to the Executive 
Director in the exercise of his or her authority.
    (3) The responsibilities and authorities of the other officers of 
the Corporation are set forth in the Corporation's Bylaws, resolutions 
and policies adopted by the Board, duties and authorities delegated to 
each officer, other statutes and this statement. (See, for example, the 
Government in the Sunshine Act and paragraph (a)(3) of this section for 
specific duties of the Secretary and General Counsel.)
    (c) Principal office. The Corporation maintains its principal office 
in the District of Columbia. Currently, the principal office is 
maintained at 1325 G Street NW., Suite 800, Washington, DC 20005.

[49 FR 12700, Mar. 30, 1984, as amended at 54 FR 13062, Mar. 30, 1989]



Sec. 4100.3  Field activities.

    The Corporation conducts its field activities from district and 
field offices around the country. District offices

[[Page 316]]

provide coordination of field activities in support of local programs 
within the geographic limits of each district. Field offices within each 
district provide assistance in the development and support of local 
programs. A current directory of all district and field offices can be 
obtained upon request from the Communications Department, Neighborhood 
Reinvestment Corporation, 1325 G Street NW., Suite 800, Washington, DC 
20005.

[49 FR 12700, Mar. 30, 1984, as amended at 54 FR 13061, Mar. 30, 1989]



Sec. 4100.4  Inquiries.

    (a) General. All requests for information, forms, and records should 
be addressed to: Communications Department, Neighborhood Reinvestment 
Corporation, 1325 G Street NW., Suite 800, Washington, DC 20005.
    (b) Applications. Applications for the Corporation's assistance in 
the development of NHS programs and complementary programs and 
strategies, or the support of other promising neighborhood strategies 
are accepted on an ongoing basis. Local governmental or nonprofit 
entities should submit completed applications (forms are available upon 
request), including supportive materials, to the Corporation at the 
address stated in paragraph (a) of this section. The Corporation reviews 
applications to determine their readiness for development or support. 
Promising applications are selected for field reviews. Subject to the 
availability of the Corporation's resources, the Corporation may enter 
into agreements with top ranking applicants to provide financial and 
technical assistance in the development or support of selected programs. 
The application form contains a list of the criteria used for 
determining the readiness and promise of applications.
    (c) Records. (1) The Corporation maintains such records and 
information for public inspection and copying as are required by the 
Freedom of Information Act (5 U.S.C. 552), as that Act may be amended 
from time to time. Records are available for public inspection and 
copying during regular business hours on regular business days at the 
address stated in paragraph (a) of this section. Requests for records 
should be submitted in writing and state the full name and address of 
the person requesting the records and a description of the records or 
other information sought that is reasonably sufficient to permit their 
identification without undue difficulty. A request should be submitted 
sufficiently in advance of the date inspection or copying is desired, 
preferably by mail.
    (2) Although the Corporation finds that the publication of indexes 
of statements of policy and interpretations or administrative staff 
manuals and instructions would be unnecessary and impracticable, such 
information will be made available upon request.
    (d) Fees for providing copies for records. Fees shall be assessed 
pursuant to the Freedom of Information Act (5 U.S.C. 552) in order to 
recover the full allowable direct costs of providing copies of records. 
For purposes of this section, the term direct costs means those 
expenditures which the Corporation actually incurs in searching for and 
duplicating (and in the case of commercial use requesters, reviewing) 
documents to respond to a Freedom of Information Act (``FOIA'') request. 
Direct costs include, for example, the salaries of the employees 
performing the work (the basic rate of pay plus 16 percent of that rate 
to cover benefits) and the cost of operating duplicating equipment. The 
term search includes all time spent looking for material that is 
responsive to a request, including page-by-page or line-by-line 
identification of material within documents. Searches may be done 
manually or by computer using existing programming. The term duplication 
refers to the process of making a copy of a document necessary to 
respond to a FOIA request. Such copies can take the form of paper copy, 
microfilm, audiovisual materials, or machine readable documentation 
(e.g., magnetic tape or disk), among others. The term review refers to 
the process of examining documents located in response to a commercial 
use request to determine whether any portion of any document is 
permitted to be withheld. It also includes processing any documents for 
disclosure, e.g., doing all that is necessary to exise them and 
otherwise prepare them for release. Review does not include time spent 
resolving general

[[Page 317]]

legal or policy issues regarding the application of exemptions. A 
schedule based on these principles is set forth in paragraph (d)(9) of 
this section.
    (1) Categories of requesters. Fees will be assessed according to the 
category of the requester. There are four categories:
    (i) Commercial use requesters. For purposes of this section, the 
term commercial use request refers to a request from or on behalf of one 
who seeks information for a use or purpose that furthers the commercial, 
trade, or profit interests of the requester or the person on whose 
behalf the request is made. In determining whether a requester properly 
belongs in this category, the Corporation will look to the use to which 
the requester will put the documents requested. If the use is not clear 
from the request itself, or if there is reasonable cause to doubt the 
requester's stated use, the Corporation shall seek additional 
clarification before assigning the request to a specific category.
    (ii) Educational and noncommercial scientific institution 
requesters. For purposes of this section, the term educational 
institution refers to a preschool, a public or private elementary or 
secondary school, an institution of graduate higher education, an 
institution of undergraduate higher education, an institution of 
professional education, or an institution of vocational education, which 
operates a program or programs of scholarly research. The term 
noncommercial scientific institution refers to an institution that is 
not operated on a commercial basis, as that term is used in paragraph 
(d)(1)(i) of this section, and which is operated solely for the purpose 
of conducting scientific research the results of which are not intended 
to promote any particular product or industry. To be eligible for 
inclusion in this category, requesters must show that the request is 
made as authorized by and under the auspices of a qualifying 
institution, and that the records are not sought for a commercial use, 
but are sought in furtherance of scholarly (if the request is from an 
educational institution) or scientific (if the request is from a 
noncommercial scientific institution) research.
    (iii) Requesters who are representatives of the news media. For 
purposes of this section, the term representative of the news media 
refers to any person actively gathering information for an entity that 
is organized and operated to publish or broadcast news to the public. 
Examples of news media entities include television or radio stations 
broadcasting to the public at large, and publishers of periodicals (but 
only in those instances when they can qualify as disseminators of news) 
who make their products available for purchase or subscription by the 
general public. These examples are not intended to be all-inclusive. In 
the case of freelance journalists, they may be regarded as working for a 
news organization if they demonstrate a solid basis for expecting 
publication through that organization, even though not actually employed 
by it. A publication contract would be the clearest proof, but the 
Corporation may also look at the past publication record of a requester 
in making this determination. To be eligible for inclusion in this 
category, a requester must meet the criteria above, and his or her 
request must not be made for a commerical use. In reference to this 
class of requester, a request for records supporting the news 
dissemination function of the requester shall not be considered to be a 
request that is for a commercial use.
    (iv) All other requesters.
    (2) Limitations on fees to be charged--(i) Commercial use 
requesters. Commercial use requesters shall be assessed the full direct 
costs for searching for, reviewing, and duplicating records, in 
accordance with the fee schedule at paragraph (d)(9) of this section. 
Commercial use requesters are not entitled to the free search time or 
free pages of duplication provided to other categories of requesters.
    (ii) Educational and noncommercial scientific institution 
requesters. Requesters in this category may be assessed fees only for 
duplication of records in excess of the first 100 pages. Requesters in 
this category may not be assessed fees for search or review.
    (iii) Requesters who are representatives of the news media. 
Requesters in this category may be assessed fees only for duplication of 
records in excess of the

[[Page 318]]

first 100 pages. Requesters in this category may not be assessed fees 
for research or review.
    (iv) All other requesters. Requesters who do not fit into any of the 
categories above shall be assessed fees only for searching and 
duplicating records, except that the first 100 pages of duplication and 
the first two hours of search time shall be furnished without charge. 
Requesters in this category may not be assessed fees for review.
    (v) Review of records. Charges will be assessed only for the initial 
review of the located documents and not for time spent at the 
administrative appeal level on an exemption applied at the initial 
determination level. However, where records or portions of records are 
withheld in full under an exemption which is subsequently determined not 
to apply, and these records are reviewed again to determine the 
applicability of other exemptions not previously considered, charges for 
review are properly assessable.
    (vi) Additional copies. The Corporation will normally furnish only 
one copy of any record. The allowance of 100 free pages of duplication 
under paragraphs (d)(2) (ii), (iii), and (iv) of this section shall not 
apply to additional copies furnished at the request of the record 
requester. Full duplication fees shall be assessed for each page of each 
such additional copy.
    (3) Charges for unsuccessful search. Where applicable under 
paragraph (d)(2) of this section search fees may be assessed for time 
spent searching, even if the Corporation fails to locate the records or 
if records located are determined to be exempt from disclosure.
    (4) Notice of anticipated fees in excess of $25.00. Unless the 
person making the request states in his or her initial request that he 
or she will pay all costs regardless of amount, the Corporation will 
notify him or her as soon as possible if there is reason to believe that 
the cost for obtaining access to and/or copies of such records will 
exceed $25. If such notice is given, the time limitations contained in 
the Freedom of Information Act shall not commence until the person 
making the intitial request agrees in writing to pay such cost.
    (5) Advance payments. The Communications Director is authorized to 
require an advance payment of an amount up to the full estimated charges 
whenever he or she determines that:
    (i) The allowable charges that a requester may be required to pay 
are likely to exceed $250 and the requester has no history of payment 
and cannot provide satisfactory assurance that payment will be made; or
    (ii) A requester has previously failed to pay a fee charged in a 
timely manner.

If such a payment is required, the time limitations contained in the 
Freedom of Information Act shall not commence until payment is made.
    (6) Charging interest. The Corporation will assess interest charges 
on any unpaid fees starting on the 31st day following the day on which 
the billing for fees was sent to the requester. Interest will be at the 
rate prescribed in 31 U.S.C. 3717 and will accrue from the date of the 
billing. Receipt of the fee by the Corporation, even if not processed, 
will stay the accrual of interest. Interest is not chargeable for unpaid 
advance payments under paragraph (d)(5) of this section.
    (7) Aggregating requests. A requester may not file multiple requests 
at the same time, each seeking portions of the document or documents, 
solely in order to avoid payment of fees. When the Corporation 
reasonably believes that a requester, or a group of requesters acting in 
concert, is attempting to break a request down into a series of requests 
for the purpose of evading the assessment of fees, the Corporation may 
aggregate any such requests and charge accordingly.
    (8) Waiver or reduction of fee. The Corporation will furnish 
documents without charge or at a reduced charge when it is determined 
that disclosure of the information is in the public interest because it 
is likely to contribute significantly to public understanding of the 
operations or activities of the Corporation and is not primarily in the 
commercial interest of the requester. In making a request for a waiver 
or reduction of fees, a requester should include a clear statement of 
his or her interest in the requested documents: The

[[Page 319]]

proposed use for the documents and whether the requester will derive 
income or other benefit from such use; and a statement of how the public 
will benefit from such use. Determinations concerning waiver or 
reduction of fees shall be made by the Executive Director, or his or her 
designee.
    (9) Schedule of fees. Fees for searching for, reviewing, 
duplicating, and providing records and information of the Corporation 
under this section will be assessed in accordance with the following 
schedule:
    (i) Manual search. For each quarter hour or fraction thereof: $3.37.
    (ii) Computer search. For each quarter hour or fraction thereof: 
$3.37.
    (iii) Review. For each quarter hour or fraction thereof: $4.87.
    (iv) Duplication.
    (A) For a paper photocopy of an existing paper record, $.10 per 
page.
    (B) For duplication of records other than existing paper records 
(such as computer-stored information, audio or video tapes, microfiche 
or microfilm), the fee shall equal the actual direct cost of production 
and duplication of the records or information in a form that is 
reasonably usable by the requester.
    (10) Processing costs. The Communications Director will waive 
payment in instances in which the costs of routine collection and 
processing of the fee are likely to equal or exceed the amount of the 
fee.

[49 FR 12700, Mar. 30, 1984, as amended at 54 FR 50953, Dec. 19, 1989]


[[Page 321]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Material Approved for Incorporation by Reference
  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 323]]

            Material Approved for Incorporation by Reference

                      (Revised as of April 1, 2003)

  The Director of the Federal Register has approved under 5 U.S.C. 
552(a) and 1 CFR Part 51 the incorporation by reference of the following 
publications. This list contains only those incorporations by reference 
effective as of the revision date of this volume. Incorporations by 
reference found within a regulation are effective upon the effective 
date of that regulation. For more information on incorporation by 
reference, see the preliminary pages of this volume.


24 CFR (PARTS 1700 TO END)

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, OFFICE OF ASSISTANT 
SECRETARY FOR HOUSING--FEDERAL HOUSING COMMISSIONER
                                                                  24 CFR


Aluminum Association

  900 19th Street, NW., Washington, DC 20006
Specification for Aluminum Structures,                          3280.304
  Construction Manual Series--Section 1, Fifth 
  Edition--1986.


American Architectural Manufacturers Assoc.

  1540 East Dundee Rd., Suite 310, Palatine, IL 
  60067
AAMA 1503.1-88, Voluntary Test Method for Thermal            3280.508(e)
  Transmittance and Condensation Resistance of 
  Windows, Doors and Glazed Wall Sections.
AAMA 1701.2-1985, Primary Window and Sliding Glass         3280.403(b); 
  Door Voluntary Standard for Utilization in               3280.403(e); 
  Manufactured Housing.                                 3280.403(e)(2); 
                                                             3280.404(b)
AAMA 1702.2-1985, Swinging Exterior Passage Doors          3280.405(b); 
  Voluntary Standard for Utilization in                    3280.405(e); 
  Manufactured-Housing.                                   3280.405(e)(2)
AAMA 1704-1985, Voluntary Standard Egress Window           3280.404(b); 
  Systems for Utilization in Manufactured-Housing.           3280.404(e)


American Forest and Paper Association (formerly National Forest Products 
Association)

  1250 Connecticut Avenue, NW., Washington, DC 
  20036
Span Tables for Joists and Rafters, PS-20-70, 1993        3280.304(b)(1)
National Design Specifications for Wood                   3280.304(b)(1)
  Construction, 1991 Edition, With Supplement, 
  Design Values for Wood Construction.
Wood Structural Design Data, 1986 Edition With            3280.304(b)(1)
  1992 Revisions.
Design Values for Joists and Rafters, American            3280.304(b)(1)
  Softwood Lumber Standard Sizes, 1992.


American Gas Association

  8501 East Pleasant Valley Road, Cleveland, OH 
  44131
AGA Requirements for Gas Connectors for Connection              3280.703
  of Fixed Appliances for Outdoor Installation, 
  Park Trailers and Manufactured (Mobile) Homes to 
  the Gas Supply. No. 3-87.


American Institute of Steel Construction

  One East Wacker Drive, Chicago, IL 60601
AISC Specification for Structural Steel Buildings-      3280.304(b)(1); 
  -Allowable Stress Design and Plastic Design June        3280.305(i)(1)
1, 1989.
[[Page 324]]

American Iron and Steel Institute

  1101 17th Street, NW., Washington, DC 20036
AISI Specification for the Design of Cold-Formed        3280.304(b)(1); 
  Steel Structural Members, 1986 Edition with 1989        3280.305(i)(1)
  Addendum.
AISI Stainless Steel Cold-Formed Structural Design      3280.304(b)(1); 
  Manual, 1974.                                           3280.305(i)(1)
AISI Manual for Structural Applications of Steel          3280.304(b)(1)
  Cables for Buildings, 1973.


American National Standards Institute

  11 West 42nd Street, New York, NY 10036 
  Telephone: (212) 642-4900
ANSI A112.14.1-1975, Backflow Valves..............           3280.604(a)
ANSI/ASME A112.18.1M-1989, Plumbing Fixture                  3280.604(a)
  Fittings.
ANSI/ASME A112.19.1M-1987, Enameled Cast Iron                3280.604(a)
  Plumbing Fixtures.
ANSI/ASME A112.19.2(M)-1990, Vitreous China                  3280.604(a)
  Plumbing Fixtures.
ANSI/ASME A112.19.3M-1987, Stainless Steel                   3280.604(a)
  Plumbing Fixtures (Designed for Residential 
  Use).
ANSI/ASME A112.19.4(M)-1984, Porcelain Enameled              3280.604(a)
  Formed Steel Plumbing Fixtures.
ANSI A112.19.5-1979, Trim for Water Closet, Bowls,           3280.604(a)
  Tanks, and Urinals.
ANSI/ASME A112.21.3M-1985, Hydrants for Utility              3280.604(a)
  and Maintenance Use.
ANSI A112.26.1-1969 (R 1975), Water Hammer                   3280.604(a)
  Arresters.
ANSI/AHA A135.4-1982, Basic Hardboard.............        3280.304(b)(1)
ANSI/AHA A135.5-1988, Prefinished Hardboard               3280.304(b)(1)
  Paneling.
ANSI/AHA A135.6-1990, Hardboard Siding............        3280.304(b)(1)
ANSI/AIRC A190.1-1992, For Wood Products-                 3280.304(b)(1)
  Structural Glued Laminated Timber.
ANSI A208.1-1989, Wood Particleboard..............        3280.304(b)(1)
ANSI/ASME B1.20.1-1983, Pipe Threads, General              3280.604(a); 
  Purpose (Inch).                                             3280.703; 
                                                           3280.705(e); 
                                                             3280.706(d)
ASME B16.3-1992, Malleable Iron Threaded Fittings.           3280.604(a)
ANSI/ASME B16.4-1992, Gray Iron Threaded Fittings.           3280.604(a)
ANSI/ASME B16.15-1985, Cast Bronze Threaded                  3280.604(a)
  Fittings, Classes 125 and 250.
ANSI B16.18-1984, Cast Copper Alloy Solder-Joint             3280.604(b)
  Pressure Fittings.
ASME/ANSI B16.22-1989, Wrought-Copper and Copper             3280.604(a)
  Alloy, Solder-Joint Pressure Fitting.
ASME B16.23-1992, Cast Copper Alloy Solder-Joint             3280.604(a)
  Drainage Fittings--DWV.
ASME/ANSI B16.26-1988, Cast Copper Alloy Fittings            3280.604(a)
  for Flared Copper Tubes.
ASME/ANSI B16.29-1986, Wrought Copper and Wrought            3280.604(a)
  Copper Alloy Solder-Joint Drainage Fittings--
  DWV.
ANSI/ASME B36.10-1979, Welding and Seamless                3280.604(a); 
  Wrought Steel Pipe.                                         3280.703; 
                                                        3280.705(b)(1); 
                                                          3280.706(b)(1)

[[Page 325]]

ANSI C73.17-1972, Dimension of Caps, Plugs and               3280.803(g)
  Receptacles, Grounding Type.
ANSI Z21.1-1990, Household Cooking Gas Appliances               3280.703
  with addenda Z21.1a-1991 and Z21.1b-1993.
ANSI Z21.5.1-1992, Gas Clothes Dryers Vol. 1, Type              3280.703
  1 Clothes Dryers.
ANSI Z21.10.1-1990, With Addendum Z21.10.1a-1991          3280.707(d)(2)
  and Z21.10.1b-1992, Gas Water Heaters Vol. 1, 
  Storage Water Heaters with Input Ratings of 
  75,000 BTU per Hour or Loss.
ANSI Z21.15-1992, Manual Operated Gas Valves for                3280.703
  Appliances, Appliance Connector Valves and Hose 
  End Valves.
ANSI Z21.19-1990, With Addenda Z21.19a-1992,                    3280.703
  Refrigerators Using GasFuel.
ANSI Z21.20-1989, With Addendum Z21.20a-1991 and                3280.703
  Z21.20b-1992, Automatic Gas Ignition Systems and 
  Components.
ANSI Z21.21-1987, With Addendum Z21.21a-1989 and                3280.703
  Z21.21b-1992, Automatic Valves for Gas 
  Appliances.
ANSI Z21.22-1986, With Addenda Z21.22a-1990,       3280.604(a); 3280.703
  Relief Valves and Automatic Gas Shutoff Devices 
  for Hot Water Supply Systems.
ANSI Z21.23-1989, With Addenda Z21.23a-1991, Gas                3280.703
  Appliance Thermostats.
ANSI Z21.24-1987, With Addendum Z21.24a-1990 and       3280.702(a)(17); 
  Z21.24b-1992, Metal Connectors for Gas                        3280.703
  Appliances.
ANSI Z21.40.1-1981, With Addenda Z21.40.1a-1982               3280.703; 
  Gas Fired Absorption Summer Air Conditioning            3280.714(a)(2)
  Appliances.
ANSI Z21.47-1990, With Addendum Z21.47a-1990 and                3280.703
  Z21.47b-1992, Gas-Fired Central Furnaces [Except 
  Direct Vent System Central Furnaces].
ANSI Z21.64-1990, With Addenda Z21.64a-1992,                    3280.703
  Direct Vent Central Furnaces.
ANSI Z34.1-1987, For Certification-Third-Party          3280.403(e)(1); 
  Certification Program.                                  3280.405(e)(1)
ANSI Z97.1-1984, Safety Performance Specifications         3280.114(b); 
  and Methods of Test for Safety Glazing Materials      3280.304(b)(1); 
  Used in Building.                                     3280.403(d)(1); 
                                                           3280.604(a); 
                                                     3280.607(b)(3)(iii)
ANSI Z124.1-1987, Plastic Bathtubs Units with                3289.604(a)
  Addenda Z124.1a-1990 and Z123.16-1991.
ANSI Z124.2-1987, Plastic Shower Receptors and               3280.604(a)
  Shower Stalls with addendum Z124.21-1990.
ANSI Z124.3-1986, Plastic Lavatories with addendum           3280.604(a)
  124.3a-1990.
ANSI Z124.4-1986, Plastic Water Closets, Bowls and           3280.604(a)
  Tanks with Addenda Z124.4a-1990.


American Plywood Association

  P.O. Box 11700, Tacoma, WA 98401
APA E 30M-1993, APA Design/Construction Guide,            3280.304(b)(1)
  Residential and Commercial.
APA-Y 510Q-1993, Plywood Design Specification.....        3280.304(b)(1)
APA-S 811M-1990, Design and Fabrication of Plywood        3280.304(b)(1)
  Curved Panels, Suppl. 1.
APA-S 812P-1992, Design and Fabrication of Glued          3280.304(b)(1)
Plywood-Lumber Beams, Suppl. 2.
[[Page 326]]

APA-U 813K-1990, Design and Fabrication of Plywood        3280.304(b)(1)
  Stressed-Skin Panels, Suppl. 3.
APA-U 814G-1990, Design and Fabrication of Plywood        3280.304(b)(1)
  Sandwich Panels, Suppl. 4.
APA-H 815D-1989, Design and Fabrication of All-           3280.304(b)(1)
  Plywood Beams, Suppl. 5.
APA PRP E-108P, E445N-1989, Performance Standards         3280.304(b)(1)
  and Policies for Structural Use Panels.
PS-2-92, Performance Standard for Wood-Based              3280.304(b)(1)
  Structural Use Panels.


Air Conditioning and Refrigation Institute

  1501 Wilson Boulevard, Arlington, VA 22209-2403
ANSI/ARI 210/240-89, Unitary Air-Conditioning and          3280.511(b); 
  Air-Source Heat Pump Equipment.                             3280.703; 
                                                        3280.714(a)(1); 
                                                    3280.714(a)(1)(ii); 
                                                     3280.714(a)(1)(iii)


American Society of Heating, Refrigeration and Air Conditioning 
Engineers

  1791 Tullie Circle, NE., Atlanta, GA 30329
1989 ASHRAE Handbook of Fundamentals, I.P. Edition    3280.508; 3280.511


American Society of Civil Engineers

  345 East 47th Street, New York, NY 10017-2398
ANSI/ASCE 7-88, American Society of Civil                       3280.5; 
  Engineers, Minimum Design Loads for Buildings         3280.304(b)(1); 
  and Other Structures.                                  3280.305(c)(1) 
                                                               (ii)(A); 
                                                         3280.305(c)(2) 
                                                              (iii)(A); 
                                                    3282.362(c)(3)(i)(E)


American Society of Mechanical Engineers

  Three Park Avenue, New York, NY 10016-5990; 
  Telephone: (800) THE-ASME
1992 ASME Boiler and Pressure Vessel Code, VIII,          3280.704(b)(2)
  Pressure Vessels, Division 1.
ASME A112.1.2-1991, Air Gaps in Plumbing Systems..           3280.604(a)
ASME/ANSI A112.19.7m-1987 Whirlpool Bathtub                  3280.604(a)
  Appliances.
ASME/ANSI A112.19.8M-1989, Suction Fittings for              3280.604(a)
  Use in Swimming Pools, Wading Pools, Spas, Hot 
  Tubs and Whirlpool Bathtub Appliances.


American Society of Sanitary Engineering

  P.O. Box 40362, Bay Village, OH 44140
ASSE 1001 ASSE/ANSI-1990 Performance Requirements            3280.604(a)
  for Pipe Applied Atmospheric Type Vacuum 
  Breakers.
ASSE 1002 Revision 5-1986, (ANSI/ASSE-1979)                  3280.604(a)
  Performance Requirements for Water Closet Flush 
  Tank Fill Valves (Ballcocks).
ASSE 1006, ASSE/ANSI-1986, Plumbing Requirements             3280.604(a)
  for Residential Use (Household) Dishwashers.
ASSE 1007-1986, Performance Requirements for Home            3280.604(a)
  Laundry Equipment.
ASSE 1008-1986 Performance Requirements for                  3280.604(a)
Household Food Waste Disposer Units.
[[Page 327]]

ASSE 1011-1981 (ANSI-1982), Performance                      3280.604(a)
  Requirements for Hose Connection Vacuum 
  Breakers.
ASSE 1014-1989 (ANSI-1990), Performance                      3280.604(a)
  Requirements for Hand-held Showers.
ASSE 1016-1988, (ANSI 1990), Performance                     3280.604(a)
  Requirements for Individual Thermostatic 
  Pressure Balancing and Combination Control for 
  Bathing Facilities.
ASSE 1017-1986, Performance Requirements for                 3280.604(a)
  Temperature Activated Mixing Valves for Primary 
  Domestic Use.
ANSI/ASSE 1019-1978, Performance Requirements for            3280.604(a)
  Wall Hydrants, Frost Proof Automatic Draining, 
  Anti-Backflow Types.
ASSE 1023-ANSI/ASSE-1979, Performance Requirements           3280.604(a)
  for Hot Water Dispensers, Household Storage Type 
  Electrical.
ASSE 1025-ANSI/ASSE-1978, Performance Requirements           3280.604(a)
  for Diverters for Plumbing Faucets with Hose 
  Spray, Anti-Siphon Type, Residential 
  Applications.
ASSE 1037-1990 (ANSI-1990), Performance                      3280.604(a)
  Requirements for Pressurized Flushing Devices 
  (Flushometers) For Plumbing Fixtures.


American Society for Testing and Materials

  100 Barr Harbor Drive, West Conshohocken, PA 
  19428-2959, Telephone (610) 832-9585, FAX (610) 
  832-9555
ASTM A53-93, Standard Specification for Pipe,      3280.604(a); 3280.703
  Steel, Black and Hot-Dipped, Zinc-Coated, Welded 
  and Seamless.
ASTM A74-92, Standard Specification for Cast Iron            3280.604(a)
  Soil Pipe and Fittings.
ASTM A539-90a, Standard Specification for                     3280.703; 
  Electric-Resistance-Welded Coiled Steel Tubing          3280.705(b)(4)
  for Gas and Fuel Oil Lines.
ASTM B42-93, Standard Specification for Seamless   3280.604(a); 3280.703
  Copper Pipe, Standard Sizes.
ASTM B43-91, Standard Specification for Seamless           3280.604(a); 
  Red Brass Pipe, Standard Sizes.                         3280.705(b)(1)
ASTM B 88-93, Standard Specification for Seamless          3280.604(a); 
  Copper Water Tube.                                          3280.703; 
                                                        3280.705(b)(3); 
                                                          3280.706(b)(3)
ASTM B251-93, Standard Specification for General   3280.604(a); 3280.703
  Requirements for Wrought Seamless Copper and 
  Copper-Alloy Tube.
ASTM B280-93, Standard Specification for Seamless             3280.703; 
  Copper Tube for Air Conditioning and                  3280.705(b)(3); 
  Refrigeration Field Service.                            3280.706(b)(3)
ASTM B306-92, Standard Specification for Copper              3280.604(a)
  Drainage Tube (DWV).
ASTM C36-93, Standard Specification for Gypsum            3280.304(b)(1)
  Wallboard.
ASTM C564-88, Standard Specification for Rubber            3280.604(a); 
  Gaskets for Cast Iron Soil Pipe and Fittings.          3280.611)(d)(5)
ASTM D781-68 (73), Standard Test Methods for            3280.304(b)(1); 
  Puncture and Stiffness of Paperboard, and               3280.305(g)(4)
  Corrugated and Solid Fiberboard.
ASTM D2235-88, Standard Specification for Solvent            3280.604(a)
  Cement for Acrlonitrile-Butadiene-Styrene (ABS) 
  Plastic Pipe and Fittings.
ASTM D2564-91a, Standard Specification for Solvent           3280.604(a)
Cements for Poly (Vinyl Chloride) (PVC) Plastic 
[[Page 328]]ems.

ASTM D2661-91, Standard Specification                        3280.604(a)
  Acrylonitrile-Butadiene-Styrene (ABS) Schedule 
  40 Plastic Drain, Waste, and Vent Pipe and 
  Fittings.
ASTM D2665-91b, Standard Specification for Poly              3280.604(a)
  (Vinyl Chloride) (PVC) Plastic Drain, Waste, and 
  Vent Pipe and Fittings.
ASTM D2846-92, Standard Specification for                    3280.604(a)
  Chlorinated Poly (Vinyl Chloride) (CPVC) Plastic 
  Hot- and Cold-Water Distribution Systems.
ASTM D3309-92a, Standard Specification for                   3280.604(a)
  Polybutylene (PB) Plastic Hot- and Cold-Water 
  Distribution Systems.
ASTM D3311-92, Standard Specification for Drain,             3280.604(a)
  Waste, and Vent (DWV) Plastic Fittings Patterns.
ASTM D3953-91, Standard Specification for                  3280.306(g); 
  Strapping, Flat Steel and Seals.                     3280.306(b)(2)(v)
ASTM D4442, Standard Test Methods for Direct              3280.304(b)(1)
  Moisture Content Measurement of Wood and Wood-
  Base Materials.
ASTM D4444-92, Standard Test Methods for Use and          3280.304(b)(1)
  Calibration of Hand-Held Moisture Meters.
ASTM E84-91a, Standard Test Method for Surface               3280.203(a)
  Burning Characteristics of Building Materials.
ASTM E96-93, Standard Test Methods for Water Vapor   3280.504(a) and (c)
  Transmission of Materials.
ASTM E162-90, Standard Test Method for Surface               3280.203(a)
  Flammability of Materials Using a Radiant Heat 
  Energy Source.
ASTM E773-88, Standard Test Methods for Seal              3280.403(d)(2)
  Durability of Sealed Insulating Glass Units.
ASTM E774-92, Standard Specification for Sealed           3280.403(d)(2)
  Insulating Glass Units.
ASTM E1333-90, Standard Test Method for                      3280.406(b)
  Determining Formaldehyde Levels from Wood 
  Products Under Defined Test Conditions Using a 
  Large Chamber.
ASTM F628-91 Standard Specification for                      3280.604(a)
  Acrylonitrile-Butadiene-Styrene (ABS) Schedule 
  40, Plastic Drain, Waste, and Vent Pipe with a 
  Cellular Core.


Cast Iron Soil Pipe Institute

  5959 Shallowford Rd., Suite 419, Chattanooga, TN 
  37421
CISPI-301-90, Standard Specification for Hubless             3280.604(a)
  Cast Iron Soil Pipe and Fittings for Sanitary 
  and Storm Drain, Waste, and Vent Piping 
  Applications.
CISPI-310-90, Specification for Coupling For Use             3280.604(a)
  in Connection With Hubless Cast Iron Soil Pipe 
  and Fittings For Sanitary and Storm Drain, 
  Waste, and Vent Piping Applications.
CISPI-HSN-85, Specification for Neoprene Rubber           3280.611(d)(5)
  Gaskets for HUB and Spigot Cast Iron Soil Pipe 
  and Fittings.


Department of Commerce, National Institute of Standards and Technology

  Office of Engineering Standards, Room A-166, 
  Technical Building, Washington, DC 20234
PS-1-82, Voluntary Product Standard, Construction         3280.304(b)(1)
  and Industrial Plywood.


Federal Specification, General Services Administration

  Specification Branch, Room 6039, GSA Building, 
  7th & D Sts., SW., Washington, DC 20407

[[Page 329]]

WW-P-541E/GEN-1980, Plumbing Fixtures (General               3280.604(a)
  Specifications).
ZZ-R-765B-1970, With 1971 Amendment 1, Rubber             3280.611(d)(5)
  Silicone.


Hardwood Plywood and Veneer Association

  P.O. Box 2789, 1825 Michael Faraday Drive, 
  Reston, VA 22090
HPMA Design Guide HP-SG-86, Structural Design             3280.304(b)(1)
  Guide for Hardwood Plywood Wall Panels.
HPVA Interim Standard HP-1-93, Interim Voluntary          3280.304(b)(1)
  Standard for Hardwood and Decorative Plywood.


HUD-FHA Use of Materials Bulletin

  Department of Housing and Urban Development, 451 
  7th Street SW., Washington, DC 20410-8000
HUD-FHA Use of Materials Bulletin-UM-25d-73               3280.304(b)(1)
  Application and Fastening Schedule: Power-
  Driven, Mechanically Driven and Manually Driven 
  Fasteners.


HUD USER

  P.O. Box 280, Germantown, MD 20874
HUD User-0005945, Overall U-Values and Heating/              3280.508(b)
  Cooling Loads-Manufactured Homes, PNL 8006, 
  February 1992.


IIT Research Institute

  10 West 35th Street, Chicago, IL 60616
J-6461, Development of Mobile Home Fire Test              3280.207(a)(4)
  Methods to Judge the Fire-Safe Performance of 
  Foam Plastic Sheathing and Cavity Insulation.


International Association of Plumbing and Mechanical Officials

  20001 Walnut Drive South, Walnut, CA 91789-2825
IAPMO PS 2-89, Material and Property Standard for            3280.604(a)
  Cast Brass and Tubing P-Traps.
IAPMO PS 4-90, Material and Property Standard for            3280.604(a)
  Drains for Prefabricated and Precast Showers.
IAPMO PS 5-84, Material and Property Standard for            3280.604(a)
  Special Cast Iron Fittings.
IAPMO PS 9-84, Material and Property Standard for            3280.604(a)
  Diversion Tees and Twin Waste Elbow.
IAPMO PS 14-89, Material and Property Standard for           3280.604(a)
  Flexible Metallic Water Connectors.
IAPMO PS 23-89, Material and Property Standard for           3280.604(a)
  Dishwasher Drain Airgaps.
IAPMO PS 31-91, Material and Property Standards              3280.604(a)
  for Backflow Prevention Assemblies.
IAPMO TSC 9-92, Standard for Gas Supply Connectors              3280.703
  for Manufactured Mobile Homes.
IAPMO TSC 22-85, Standard for Porcelain Enameled             3280.604(a)
  Formed Steel Plumbing Fixtures.


Department of Defense

  Naval Publications Information Center, 5801 
  Tabor Road, Philadelphia, PA 19120
Military specifications:
  MIL-L-10547E-1975, Liners, Case, and Sheet Overwarp; Wat3280.611(d)(5) 
  or Waterproof, Flexible.


National Fire Protection Association

  1 Batterymarch Park, Quincy, MA 02269-9101, 
  Telephone: (800) 344-3555

[[Page 330]]

NFPA 31, Installation of Oil-Burning Equipment     3280.703; 3280.707(f)
  1992 Edition.
NFPA 54-1992 ANSI 223.1, National Fuel Gas Code...              3280.703
NFPA-58, Standard for the Storage and Handling of             3280.703; 
  Liquefied Petroleum Gases, 1992 Edition.             3280.704(b)(5)(i)
NFPA-70-1993, National Electrical Code............ 3280.801 (a) and (b); 
                                                       3280.8093(k)(1); 
                                                        3280.803(k)(3); 
                                                    3280.805(a)(3)(iv); 
                                                        3280.806(a)(2); 
                                                           3280.808(a); 
                                                           3280.808(m); 
                                                             3280.811(b)
NFPA-90B, Warm Air Heating and Air Conditioning                 3280.703
  Systems, 1993 Edition.
NFPA-220, Standard Types of Building Construction    3280.202(a)(4) and 
  1992 Edition.                                                      (5)


National Sanitation Foundation

  P.O. Box 1468, Ann Arbor, MI 48105
ANSI/NSF 14-1990, Plastic Piping Components and              3280.604(b)
  Related Materials.
ANSI/BSF 24-1988, Plumbing System Components for             3280.604(b)
  Manufactured Homes and Recreational Vehicles.


National Wood Window and Door Association

  1400 East Toughy Avenue, Suite 470, Des Plains, 
  IL 60018 Telephone: (847) 299-5200
ANSI/NWWDA I.S.1-87, Wood Flush Doors.............      3280.304(b)(1); 
                                                          3280.405(c)(2)
ANSI/NWWDA I.S.2-87, Wood Windows.................        3280.304(b)(1)
MWWDA-I.S.3-88, Wood Sliding Patio Doors..........        3280.304(b)(1)
NWWDA-I.S.4-81, Water Repellent Preservative Non        3280.304(b)(1); 
  Pressure Treatment for Millwork.                        3280.405(c)(2)


Society of Automotive Engineers

  400 Commonwealth Dr., Warrendale, PA 15096, 
  Telephone: (412) 776-4841
SAE-J533b, Flares for Tubing (1972)...............            3280.703; 
                                                        3280.705(f)(1); 
                                                          3280.705(f)(2)


Steel Joist Institute

  1205 48th Avenue North, Suite A, Myrtle Beach, 
  SC 29577
Standard Specifications Load Tables and Weight            3280.304(b)(1)
  Tables for Steel Joists and Joist Girders, Steel 
  Joist Institute 1992.


Truss Plate Institute

  583 D'Onofrio Drive, Suite 200, Madison, WI 
  53719
TPI-85, Design Specifications for Metal Plate             3280.304(b)(1)
  Connected Wood Trusses.


Underwriters' Laboratories, Inc

  333 Pfingsten Road, Northbrook, Illinois 60062. 
  Standards are available from: Global Engineering 
  Documents, 15 Inverness Way East, Englewood, CO 
  80112, Telephone (800) 854-7179 or
  Global Engineering Documents, 7730 Carondelet 
  Ave., Suite 470, Clayton, MO 63105, Telephone 
  (800) 854-7179

[[Page 331]]

UL 94-Fourth Edition-1991, with Revisions May 14,         3280.715(e)(1)
  1992 and August 19, 1993, Test for Flammability 
  of Plastic Materials for Parts in Devices and 
  Appliances.
UL 103-Seventh Edition--1989 with Revision                      3280.703
  February 23, 1989, Chimneys, Factory-Built 
  Residential Type and Building Heating Appliance.
UL 109-Fifth Edition--1993, Tube Fittings for                   3280.703
  Flammable and Combustible Fluids, Refrigeration 
  Service, and Marine Use.
UL 127-Sixth Edition with Revisions January 4,                  3280.703
  1989, June 10, 1991, June 29, 1992, Factory-
  Built Fireplaces.
UL 174-Seventh Edition-1989 with Revisions May 8,               3280.703
  1990 and January 22, 1991, Household Electric 
  Storage Tank Water Heaters.
UL 181-Seventh Edition-1990 with Revision November 3280.703; 3280.715(e)
  20, 1990, Factory Made Air Ducts and Connectors.
UL 217-Fifth Edition-January 4, 1999, Single and                3280.208
  Multiple Station Smoke Alarms.
UL 268-Fourth Edition-January 4, 1999, Smoke                    3280.208
  Detectors for Fire Protective Signaling Systems.
UL 307A-Sixth Edition-1990, with Revisions through 3280.703; 3280.707(f)
  August 21, 1990, Liquid Fuel-Burning Heating 
  Appliances for Manufactured Homes and 
  Recreational Vehicles.
UL 307B-First Edition 1982 with Revision May 18,                3280.703
  1987, Gas Burning Heating Appliances for Mobile 
  Homes and Recreational Vehicles.
UL 311-Seventh Edition-1990, Roof Jacks for                     3280.703
  Manufactured Homes and Recreational Vehicles.
UL 441-Seventh Edition-1991, Gas Vents............              3280.703
UL 465-Seventh Edition-1987 with Revisions through              3280.703
  December 24, 1987, Central Cooling Air 
  Conditioners.
UL 559-Fourth Edition-1987 with Revision December               3280.703
  24, 1987, Heat Pumps.
UL 569-Sixth Edition-1990, Pigtail and Flexible       3280.703; 3280.705
  Hose Connectors for LP-Gas.
UL 737-Sixth Edition-1988 with Revisions September              3280.703
  19, 1988, July 10, 1990 and June 10, 1991, 
  Fireplace Stoves.
UL 1025-Second Edition-1987 with Revisions July                 3280.703
  13, 1989, February 16, 1990 and December 3, 
  1991, Electrical Air Heaters.
UL 1042-Third Edition-1987 with Revision July 15,               3280.703
  1993, Electric Baseboard Heating Equipment.
UL 1096-Fourth Edition-1986 with Revisions July                 3280.703
  16, 1986 and January 30, 1988, Electric Central 
  Air Heating Equipment.
UL 1482-Third Edition-1988 with Revision September              3280.703
  13, 1988, Room Heaters Solid-Fuel Type.



[[Page 333]]



                    Table of CFR Titles and Chapters




                      (Revised as of April 1, 2003)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2 [Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3201)
     XXIII  Department of Energy (Part 3301)
      XXIV  Federal Energy Regulatory Commission (Part 3401)
       XXV  Department of the Interior (Part 3501)
      XXVI  Department of Defense (Part 3601)

[[Page 334]]

    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
       LXI  National Labor Relations Board (Part 7101)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
    LXXIII  Department of Agriculture (Part 8301)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                      Title 6--Homeland Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 0--100)

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)

[[Page 335]]

        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)

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     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Homeland Security (Parts 1--599)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1400)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 1000-
                -1099)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Part 1800)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)

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        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (Parts 
                500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)

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       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)

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       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 800-
                -899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board (Parts 900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)

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       XVI  Japan-United States Friendship Commission (Parts 1600-
                -1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)

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       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Part 1200)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--899)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--299)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)

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        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 0-
                -99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 200-
                -399)

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        IV  Secret Service, Department of the Treasury (Parts 400-
                -499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 200-
                -399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)

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        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
        XI  National Institute for Literacy (Parts 1100--1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 300-
                -399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Part 1501)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

[[Page 345]]

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300.99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)

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       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-70)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)

[[Page 347]]

       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Transportation (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 300-
                -399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)

[[Page 348]]

         7  United States Agency for International Development 
                (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

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                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)
        XI  Bureau of Transportation Statistics, Department of 
                Transportation (Parts 1400--1499)
       XII  Transportation Security Administration, Department of 
                Transportation (Parts 1500--1599)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 351]]





           Alphabetical List of Agencies Appearing in the CFR




                      (Revised as of April 1, 2003)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development, United      22, II
     States
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            5, LXXIII
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX

[[Page 352]]

Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               44, IV
  Census Bureau                                   15, I
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV, VI
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Corporation for National and Community Service    45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    28, VIII
     for the District of Columbia
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A; 
                                                  40, VII

[[Page 353]]

  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   5, LIV; 40, I, IV, VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                5, III, LXXVII; 14, VI; 
                                                  48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
     States
[[Page 354]]

Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102

[[Page 355]]

  Federal Property Management Regulation          41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V; 42, I
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  6, I
  Immigration and Naturalization Service          8, I
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V; 42, I
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV

[[Page 356]]

  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                5, XXVIII; 28, I, XI; 40, 
                                                  IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII

[[Page 357]]

  Copyright Office                                37, II
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   45, XII, XXV
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV, VI
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII

[[Page 358]]

Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV

[[Page 359]]

  Coast Guard (Great Lakes Pilotage)              46, III
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
  Transportation Security Administration          49, XII
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 361]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
2001, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 2001, see the ``List of CFR Sections 
Affected 1949-1963, 1964-1972, 1973-1985, and 1986-2000'' published in 
11 separate volumes.

                                  2001

24 CFR
                                                                   66 FR
                                                                    Page
Chapter XX
3500  Policy statement.............................................53052

                                  2002

24 CFR
                                                                   67 FR
                                                                    Page
Chapter XII
2002  Authority citation revised...................................47216
2002.1  Revised....................................................47216
2002.3  Revised....................................................47217
2002.7  revised....................................................47217
2002.9  Revised....................................................47217
2002.11  (a) revised...............................................47217
2002.15  (b) revised...............................................47217
2002.17  (a) revised...............................................47217
Chapter XX
3280  Waiver.......................................................20400
3280.112  Amended; eff. 9-16-02....................................12817
3280.202  Amended; eff. 9-16-02....................................12817
    (c)(1) introductory text, (2), (3) revised.....................49795
3280.208  Revised; eff. 9-16-02....................................12817
3282.203  (b)(4) amended; eff. 9-16-02.............................12817
3284  Added........................................................52835

                                  2003

   (Regulations published from January 1, 2003, through April 1, 2003)

24 CFR
                                                                   68 FR
                                                                    Page
Chapter XII
2004  Revised.......................................................3366
Chapter XX
3282.10  Revised; eff. 4-16-03.....................................12788
3500.17  (m)(1) revised; eff. 4-16-03..............................12789


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