[Federal Register Volume 60, Number 178 (Thursday, September 14, 1995)]
[Rules and Regulations]
[Pages 47840-47842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22824]



      

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Part VI





Department of Housing and Urban Development





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24 CFR Part 200



Use of Materials Bulletin 101 Used in the HUD Building Product 
Standards and Certification Program for Exterior Finish and Insulation 
Systems (EFIS); Final Rule

  Federal Register / Vol. 60, No. 178 / Thursday, September 14, 1995 / 
Rules and Regulations  
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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

24 CFR Part 200

[Docket FR-3365-F-02]
RIN 2502-AF84


Use of Materials Bulletin 101 Used in the HUD Building Product 
Standards and Certification Program for Exterior Finish and Insulation 
Systems (EFIS)

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

ACTION: Final rule.

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SUMMARY: This final rule adopts Use of Materials Bulletin (UM) No. 101 
Exterior Finish and Insulation Systems (EFIS). The UM references 
related national voluntary consensus standards, provides a labeling and 
third party certification program to meet the appropriate national 
voluntary standards, requires that a third-party inspection at the job 
site be conducted, provides that additional information be included on 
the label, tag, or mark that each manufacturer would affix to a 
certified product, specifies the frequency with which products must be 
tested in order to be acceptable to HUD, and requires an inspection 
report regarding installation.

DATES: Effective date: Octoer 16, 1995. The incorporation by reference 
of certain publications listed in the regulations is approved by the 
Director of Federal Register as of August 16, 1995.

FOR FURTHER INFORMATION CONTACT: Leslie Breden, Office of Manufactured 
Housing and Regulatory Functions, Standards and Products Branch, 
Department of Housing and Urban Development, room 3214, L'Enfant Plaza, 
490E, 451 Seventh Street SW., Mail Room B-133, Washington, DC 20410-
8000; telephone, voice: (202) 755-7440; (TDD) (202) 708-4594. (These 
are not toll-free numbers.)

SUPPLEMENTARY INFORMATION: Pursuant to HUD's Building Product Standards 
and Certification Program, which is authorized by Section 521 of the 
National Housing Act, 12 U.S.C. 1735e, the Department issues Use of 
Materials Bulletins (UM's). The UM's are issued to provide HUD 
standards that establish minimum acceptable qualities for certain 
materials and products to be used in properties subject to mortgages 
insured by the Department. A UM is also used as a means of promulgating 
a labeling and a certification program to assure that the products used 
meet the appropriate standard.
    On June 25, 1993 HUD published in the Federal Register (58 FR 
34502) an interim rule which adopted Use of Materials Bulletin (UM) No. 
101 Exterior Finish and Insulation systems (EFIS). The rule solicited 
public comments. Eleven commenters sent comments.
    One trade association objected to the elimination of gypsum 
wallboard. It claimed other parts of the EFIS system fail and then 
this, in turn, causes the wallboard to fail. The Department agrees that 
when the gypsum wallboard fails, it is usually the result of a break in 
the exterior envelope allowing moisture to enter the EIFS system. 
However, once water gets inside the EFIS system, the paper over the 
gypsum core debonds resulting in a catastrophic failure of the gypsum 
wallboard and a loss of the cladding's securement to the building 
structure. Therefore, the Department has referenced a standard for 
fiber cement board which remains secure even when wet.
    Similarly, two manufacturers desire to use a sheathing material 
that does not comply with American Society for Testing and Materials C-
1186. The Department contends that the sheathing should last as long as 
the mortgage and since the manufacturer will only guarantee this 
product for 5 years, it was determined that 5 years is not a long 
enough time for one to have confidence in the integrity of the whole 
EFIS system.
    One inspection agency suggested that other variables, such as 
temperature and the esthetic design, should be included in the UM. The 
Department feels there is a wide range of possible variables in EFIS 
systems and it was not possible at this time to examine all of these 
items, but the Department will continue to examine these and other 
parameters to determine if they have a significant effect on the 
failure of the EFIS system.
    Another trade association suggested that nationally recognized 
standards such as, Exterior Insulation Manufacturers Association (EIMA) 
and American Society for Testing and Materials (ASTM) Standards, be 
referenced in lieu of Military and Federal standards. The Department 
agrees and has referenced EIMA and ASTM standards wherever possible.
    One testing laboratory suggested a new water absorption test for 
polystyrene foam. The Department will add this test to a future 
revision of UM 101 when it is adopted by ASTM.
    One manufacturer wants a wider definition of fiber cement board 
than that defined by ASTM C 1186-91. The Department feels that this 
would require a revision to the ASTM standard. Therefore, the 
Department has recommended that the appropriate ASTM committee be 
contacted for revising the existing standard.
    Finally, a third party inspection agency suggested that ASTM C 578-
92 be referenced instead of ASTM C 578-91. UM 101 has been changed to 
incorporate UM 71 which contains ASTM C 578-92. It also wants a better 
definition of hail damage. To date, the Department has not been able to 
exactly quantify what is meant by hail damage. It is investigating 
establishing a knowledgeable review by peer inspectors for determining 
the definition of hail damage.
    The Department has evaluated the technical standards for exterior 
finish and insulation systems and plans to adopt these standards by 
incorporating them into the UM by reference. The UM's adoption would 
also augment the labeling requirements of 24 CFR 200.935(d)(6).
    The text of the UM is not being produced in the final rule because 
the substance is embodied in a new section of 24 CFR 200.946 set forth 
below. However, copies of the UM are available for public inspection 
during regular business hours in the Office of Manufactured Housing and 
Regulatory Functions, Standards and Products Branch, Department of 
Housing and Urban Development, room 3214 L'Enfant Plaza, 490E, Mail 
Room B-133, Washington, DC, 20410-8000, and in the Office of the Rules 
Docket Clerk, Office of General Counsel, Room 10276, Department of 
Housing and Urban Development, 451 Seventh Street SW., Washington, DC 
20410-0500.

National Environmental Policy Act

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR Part 50, 
which implement Section 102 (2)(c), of the National Environment Policy 
Act of 1969, 42 U.S.C. 4321 et. seq. The Finding of No Significant 
Impact is available for public inspection between 7:30 a.m. and 5:30 
p.m. weekdays in the Office of the Rules Docket Clerk at the above 
address.

Regulatory Flexibility Act

    In accordance with 5 U.S.C. 605(b) (the Regulatory Flexibility 
Act), the Undersigned hereby certifies that this rule would not have a 
significant economic impact on a substantial 

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number of small entities. This UM would adopt standards that are 
nationally recognized throughout the affected industry and will not 
create a burden on manufacturers.

Family Impact

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this final rule does not 
have potential for significant impact on family formation, maintenance, 
and general well-being; therefore, it is not subject to review under 
the order.

Federalism

    The General Counsel, as the Designated Official under Section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this final rule would not have substantial direct effect 
on states or their political subdivisions, or the relationship between 
the Federal government and the states, or on the distribution of power 
and responsibilities among the various levels of government. As a 
result, the final rule is not subject to review under the order.

Incorporation by Reference

    These standards have been approved by the Director of the Federal 
Register for incorporation by reference in accordance with 5 U.S.C. 
552(a) and 1 CFR 51. Copies of the standards may be obtained from the 
American Society for Testing and Materials (ASTM), 1916 Race Street, 
Philadelphia, Pennsylvania 19103; the Council of American Building 
Officials, 5203 Leesburg Pike, Falls Church, Virginia 22041; & the 
Exterior Insulation Manufacturers Association, 2759 State Road 580, 
Suite 112, Clearwater, Florida 34621.
    Copies of the standards are also available for inspection at the 
Office of Manufactured Housing and Regulatory Functions, Standards and 
Products Branch, Department of Housing and Urban Development, Room 
3214, L'Enfant Plaza, 490E, Mail Room B-133, Washington, DC 20410-8000, 
and at the Office of the Federal Register, 800 North Capital Street, 
NW, Suite 700, Washington, DC.

List of Subjects in 24 CFR Part 200

    Administrative Practice and Procedures, Claims, Equal Employment 
Opportunity, Fair Housing, Housing Standards, Incorporation by 
Reference, Lead Poisoning, Loan Programs--Housing and Community 
Development, Minimum Property Standards, Mortgage Insurance, 
Organization and Functions (Government agencies), Penalties, Reporting 
and Recordkeeping Requirements, Social Security, Unemployment 
Compensation, Wages.
    Accordingly, 24 CFR Part 200 is amended as follows:

PART 200--INTRODUCTION

    1. The authority citation for 24 CFR 200 continues to read as 
follows:

    Authority: 12 U.S.C. 1701-1715z-(18); 42 U.S.C. 1436a and 
3535(d).

    2. Section 200.946 is revised to read as follows:


Sec. 200.946  Building product standards and certification program for 
exterior finish and insulation systems, use of Materials Bulletin UM 
101.
    (a) Applicable standards: (1) All Exterior Finish and Insulation 
Systems shall be designed, manufactured, and tested in compliance with 
the following standards:
    (i) ASCE 7-93, American Society of Civil Engineers--Minimum Design 
Loads for Buildings and Other Structures.
    (ii) ASTM C 150-94 Standard Specification for Portland Cement.
    (iii) ASTM C 920-87 Standard Specification for Elastomeric Joint 
Sealants.
    (iv) ASTM C-1186-91 Standard Specification for Flat Non-Asbestos 
Fiber-Cement Sheets.
    (v) ASTM D 579-90 Standard Specification for Greige Woven Glass 
Fabrics.
    (vi) ASTM-D 3273-86--(Reapproved 1991) Standard Test Method for 
Resistance to Growth of Mold on the Surface of Interior Coatings in an 
Environmental Chamber.
    (vii) ASTM E 330-90 Standard Test Method for Structural Performance 
of Exterior Windows, Curtain Walls, and Doors by Uniform Static Air 
Pressure Difference.
    (viii) ASTM E 695-79 (Reapproved 1991), Standard Method of 
Measuring Relative Resistance of Wall, Floor, and Roof Construction to 
Impact Loading.
    (ix) ASTM G 26-93 Standard Practice for Operating Light-Exposure 
Apparatus (Xenon-Arc Type) With and Without Water for Exposure of 
Nonmetallic Materials.
    (x) Council of American Building Officials, Model Energy Code, 1993 
Edition.
    (xi) EIMA Test Method 101.01-95 (modified ASTM C67-91) Standard 
Test Method for Freeze/Thaw Resistance of Exterior Insulation and 
Finish Systems (EIFS), Class PB.
    (xii) EIMA Test Method 101.02-95 (modified ASTM E331-91)--Standard 
Test Method for Resistance to Water Penetration of Exterior Insulation 
and Finish Systems (EIFS), Class PB.
    (xiii) EIMA Test Method 101.03-95 (modified ASTM C297-91)--Standard 
Test Method for Determining the Tensile Adhesion Strength of an 
Exterior Insulation and Finish System (EIFS), Class PB.
    (xiv) EIMA Test Method 105.01-95--Standard Test Method for Alkali 
Resistance of Glass Fiber Reinforcing Mesh for Use in Exterior 
Insulation and Finish Systems (EIFS), Class PB.
    (xv) European Agreement Union Technical Committee--June 88--UEAtc 
Directives for the Assessment of External Insulation System for Walls 
(Expanded Polystyrene Insulation Faced with a Thin Rendering) Section 
3.3.3.3.
    (2) These standards have been approved by the Director of the 
Federal Register for incorporation by reference in accordance with 5 
U.S.C. 552(a) and 1 CFR part 51. They are available from:
    (i) American Society Civil Engineers (ASCE) 345 East 47th Street, 
New York, NY 10017.
    (ii) American Society for Testing and Materials (ASTM), 1916 Race 
Street, Philadelphia, Pennsylvania 19103;
    (iii) Council of American Building Officials, 5203 Leesburg Pike, 
Falls Church, Virginia 22041;
    (iv) EAUTC Centre Scientifique ET Technique Du Batiment (CSTB), 84 
Avenue Jesu Jaures, B.P. 02-77421 Marne-LA-Valee Cedex 2, Paris, 
France.
    (v) Exterior Insulation Manufacturers Association (EIMA), 2759 
State Road 580, Suite 112, Clearwater, Florida 34621-3350.
    (3) The standards are available also for inspection at the Office 
of Manufactured Housing and Regulatory Functions, Standards and 
Products Branch, Department of Housing and Urban Development, room 
3214, L'Enfant Plaza, 490E, Mail Room B-133, Washington, DC 20410-8000, 
and at the Office of the Federal Register, 800 North Capitol Street, 
NW., Suite 700, Washington, DC.
    (b) Labeling. Under the procedures as set forth in 
Sec. 200.935(d)(6), concerning labeling of a product, the 
administrator's validation mark and the manufacturer's certification of 
compliance with the applied standard is required to be on the 
certification label issued by the administrator to the manufacturers. 
In the case of exterior wall insulation and finish systems, the 
certification label containing the administrator's mark shall be 
permanently affixed on the package or container of base and finish 
coating materials. Further, additional information shall be included on 
the certification label or mark: 

[[Page 47842]]

    (1) Manufacturer's name.
    (2) Manufacturer's statement of conformance with UM 101.
    (c) The Administrator shall visit the manufacturer's or sponsor's 
facility every 6 months, to assure that the initially accepted quality 
assurance procedures are being followed. At least every four years, the 
Administrator also shall have the exterior wall insulation and finish 
systems tested in an approved laboratory to assure that the original 
performance is maintained.
    (d) The administrator's (or administration-accepted inspection 
agency) inspection of EFIS system installation of 5000 sq. ft. or more, 
shall be made during and upon completion of the construction. Reports 
of the inspection shall be made to the owner. These reports shall 
state:
    (1) The coverage of the finish coat per square foot for a given 
volume of finish.
    (2) The minimum thickness of the base and finish coatings.
    (3) The fiberglass mesh is installed properly around joints and 
insulation. All penetrations, including windows, flashing, etc., are 
sealed; and there is a caulk and sealant continuity evaluation; and
    (4) There is a caulk and sealant continuity evaluation with special 
concerns on maintenance.
    (d) The manufacturer shall warrant their exterior wall insulation 
and finish system, including any caulks and sealants, for twenty years 
against faulty performance. The warranty shall include correction of 
delamination, chipping, denting, peeling, blistering, flaking, bulging, 
unsightly discoloration, or other serious deterioration of the system 
such as the intrusion of water through the wall or structural failure 
of the system's surface materials. Should any of these defects occur, 
the manufacturer shall make a pro-rata allowance for replacement or pay 
the owner the amount of the allowance. The manufacturer shall not be 
liable for damages or defects resulting from misuse, natural 
catastrophes, or other causes beyond the control of the manufacturer. 
The contractor shall provide a statement to the owner that the product 
has been installed in compliance with HUD requirements and that the 
manufacturer's warranty does not relieve the builder, in any way, of 
responsibility under the terms of the Builder's Warranty required by 
the National Housing Act, or under any other housing program.

    Dated: May 11, 1995.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 95-22824 Filed 9-13-95; 8:45 am]
BILLING CODE 4210-27-P