[Federal Register Volume 59, Number 237 (Monday, December 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30420]


[[Page Unknown]]

[Federal Register: December 12, 1994]


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Part V





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Assistant Secretary for Housing--Federal Housing 
Commission



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24 CFR Part 3282




Interpretative Bulletin for Manufactured Home Procedural and 
Enforcement Regulations; Rule
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner

24 CFR Part 3282

[Docket No. R-94-1760; FR-3788-I-01]

 
Interpretative Bulletin for Manufactured Home Procedural and 
Enforcement Regulations

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice of Interpretative Bulletin.

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SUMMARY: HUD has issued regulations implementing the National 
Manufactured Housing Construction and Safety Standards Act of 1974 and 
providing for consumer complaint handling and remedial actions. The 
regulations require that when a manufacturer receives information that 
may indicate the existence of a problem in a manufactured home for 
which the manufacturer is responsible for providing notification, the 
manufacturer must conduct investigations and inspections to determine 
whether it must notify consumers and dealers and, possibly, correct 
affected homes. Some manufacturers are not adequately carrying out 
their responsibilities under the regulations. Accordingly, the 
Department finds it necessary to reiterate, through this Interpretative 
Bulletin, its policy with regard to the regulations.

DATES: Date of issuance: October 31, 1994.

FOR FURTHER INFORMATION CONTACT: Stuart Margulies, Chief, State and 
Consumer Liaison Branch, Office of Manufactured Housing and Regulatory 
Functions, Department of Housing and Urban Development, 451 Seventh 
Street, SW., ATTN: Mailroom B-133, Washington, DC 20410-8000. 
Telephones: (voice) (202) 755-7430; (TDD) (202) 708-4594. (These are 
not toll-free numbers.)

SUPPLEMENTARY INFORMATION: Accordingly, the following Interpretative 
Bulletin, which includes the Secretary's determination that it should 
not be subject to notice-and-comment rulemaking, has been issued by the 
Department:

Interpretative Bulletin to the Regulations

Manufactured Home Procedural and Enforcement Regulations 24 CFR Part 
3282

Interpretative Bulletin I-1-94
    The U.S. Department of Housing and Urban Development has issued 
regulations implementing the National Manufactured Housing Construction 
and Safety Standards Act of 1974, 42 U.S.C. 5401 et seq. The 
Manufactured Home Procedural and Enforcement Regulations 
(``Regulations''), in part, provide for consumer complaint handling and 
remedial actions. 24 CFR part 3282, subpart I.
    Section 3282.404(b) of the regulations (24 CFR 3282.404(b)) 
provides that 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 Sec. 3282.404(a), the manufacturer is 
required, as soon as possible, but not later than 20 days after receipt 
of the information, to carry out any necessary investigations and 
inspections to determine whether the manufacturer is responsible for 
providing notification under Sec. 3282.404(a). The manufacturer is 
further required to maintain complete records of all such information 
and determinations in a form that will allow the Secretary, the 
Secretary's Agent or a State Administrative Agency (``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 are required to be kept for a minimum of 
five years from the date the manufacturer received the information.
    Section 3282.404(a) of the Regulations (24 CFR 3282.404(a)) 
requires notification of consumers and dealers when the manufacturer 
has information that a Defect exists or may exist in a class of 
manufactured homes produced by the manufacturer. Notification of 
consumers and dealers is also required with respect to all manufactured 
homes produced by the manufacturer in which there exists or may exist 
an Imminent Safety Hazard or Serious Defect. In the case of Imminent 
Safety Hazards and Serious Defects, correction of the affected homes is 
also required under 24 CFR 3282.406.
    The Department's policy with regard to Sec. 3282.404 of the 
Regulations has been consistent since the inception of the manufactured 
housing program and has been espoused at SAA and Primary Inspection 
Agency (``PIA'') workshops and in materials distributed to SAAs, PIAs, 
and manufacturers at those workshops. Notwithstanding, it has come to 
the Department's attention that some manufacturers are not making the 
required determinations for each problem or maintaining complete 
records of the determinations if they are being made. In some cases, 
manufacturers are making one determination for an unrelated group of 
problems in a home. Therefore, the Department finds it necessary, in 
light of this apparent noncompliance, to reiterate the policy.
    Accordingly, the Department of Housing and Urban Development 
interprets 24 CFR 3282.404(b) as follows:
    Whenever the manufacturer receives from any source (including, but 
not limited to: Home purchasers or owners, dealers, PIAs, SAAs, 
component suppliers and the manufacturer's own employees) information 
that may indicate the existence of a Noncompliance, Defect, Serious 
Defect or Imminent Safety Hazard in a manufactured home, 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 whether the manufacturer is 
responsible for providing notification under 24 CFR 3282.404(a).
    If, on its face, the information clearly indicates the problem is a 
Noncompliance, the manufacturer shall make the determination that 
notification is not required and need not do anything further unless 
required, by the Secretary or an SAA, to notify consumers and dealers 
pursuant to 24 CFR 3282.407. However, the manufacturer must keep 
complete records of such information, the determination, and the basis 
for that determination.
    If, however, the information indicates that the problem in the 
manufactured home is or may be a Defect, Serious Defect or Imminent 
Safety Hazard, the manufacturer shall carry out necessary 
investigations and inspections to determine the extent and seriousness 
of the problem. The manufacturer shall then make a determination 
whether notification (and correction) is required.
    In some cases, what the problem is will not be apparent from the 
face of the information. For example, a consumer complaint about a 
crack in the wallboard may, at first glance, appear to be a nonstandard 
cosmetic item. However, upon further investigation, it may become 
apparent that the crack is a symptom of a structural problem. Such a 
structural problem may be a Serious Defect resulting from an improper 
design and may have been incorporated into numerous homes. Therefore, 
the manufacturer must thoroughly investigate and consider all the 
information it receives or already has in its possession and must 
obtain any additional information necessary to make the determination. 
In making the class determination, the manufacturer must review 
relevant information to determine whether it has produced other homes 
that have or may have the same problem (for example: prior consumer 
complaints, PIA inspection records, information from suppliers, 
information from dealers, designs, quality control records, etc.). In 
determining what records of other homes should be reviewed to look for 
similar problems, the manufacturer may need to pay close attention to 
homes with similar characteristics to the home known to have the 
problem (for example: similar models, homes with similar options or 
construction, homes containing components similar to the subject home, 
etc.).
    If it is questionable whether a particular home definitely is in or 
not in a class of affected homes, the manufacturer should presume that 
the home is affected and treat it as part of the class. Moreover, even 
if a home has been corrected by a third party, the manufacturer is 
still responsible for conducting the necessary investigations and 
making the necessary determinations. Under 24 CFR 3282.366(b), the 
Production Inspection Primary Inspection Agency (IPIA) is responsible 
for reviewing a determination with regard to a class of potentially 
affected homes including the determination of whether or not a class 
exists. In addition, both IPIAs and Design Approval Primary Inspection 
Agencies are responsible for assisting the Secretary or an SAA in 
identifying the class of manufactured homes.
    The manufacturer shall maintain complete records of all such 
information and determinations in a form that will allow the Secretary, 
the Secretary's agent, or an SAA readily to discern who made the 
determination with respect to a particular piece of information, what 
the determination was, and the full basis for the determination (not 
merely a conclusion). Such basis must include a description of and the 
findings from the investigations and inspections the manufacturer 
carried out to determine whether notification (and correction) is 
required and whether the Defect, Serious Defect, or Imminent Safety 
Hazard is or may be in a class of homes. Often, this will require that 
the manufacturer determine the source of the problem. Such records must 
be kept for a minimum of five years from the date the manufacturer 
received the information.
    Failure to comply with the requirements of Subpart I of the 
Regulations and this Interpretative Bulletin may subject the 
manufacturer to civil and criminal penalties under 42 U.S.C. 5410, and 
a possible action for injunctive relief under 42 U.S.C. 5411. Similar 
actions may be brought by SAAs under their State statutory authorities.
    This Interpretative Bulletin is issued pursuant to 24 CFR 3282.113. 
The Secretary has received requests from State officials urging 
immediate action on this matter, because of the difficulty they are 
finding in monitoring the manufacturers' compliance with the 
Regulations and ultimately protecting the public. In addition and as 
noted above, this Interpretative Bulletin does not denote any change in 
policy held by the Department. Therefore, due to the need for 
expeditious resolution of these issues and the fact that this is not a 
change in the position or policy of the Department, the Secretary deems 
it not to be in the public interest to issue the interpretation for 
public comment in the Federal Register or otherwise to treat this 
Interpretative Bulletin as rulemaking.

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

    Dated: October 31, 1994.
Nicolas P. Retsinas,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 94-30420 Filed 12-9-94; 8:45 am]
BILLING CODE 4210-27-P