[Federal Register Volume 63, Number 193 (Tuesday, October 6, 1998)]
[Proposed Rules]
[Pages 53616-53618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26761]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 63, No. 193 / Tuesday, October 6, 1998 / 
Proposed Rules  

[[Page 53616]]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency

7 CFR Part 1924

RIN 0575-AC11


Manufactured Housing Thermal Requirements

AGENCIES: Rural Housing Service, Rural Business-Cooperative Service, 
Rural Utilities Service, Farm Service Agency, USDA.

ACTION: Proposed rule.

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SUMMARY: The Rural Housing Service (RHS), a part of the former Farmers 
Home Administration (FmHA), and now part of the Rural Development 
Mission Area of the U.S. Department of Agriculture, proposes to amend 
its regulations regarding the thermal requirements for manufactured 
homes. The intended effect is to make the references to thermal 
requirements for manufactured homes consistent with requirements for 
the U.S. Department of Housing and Urban Development (HUD) zones that 
correspond to the RHS climatic zones. Since HUD increased its energy 
requirements for manufactured homes, RHS has compared these new 
requirements with the RHS thermal requirements. Our analysis indicates 
that the thermal performance of a unit built to the HUD requirements is 
roughly comparable to the thermal performance of a unit built to the 
requirements of the RHS climatic zones. This will reduce the burden on 
the manufactured housing industry, RHS field personnel, and most 
importantly RHS customers.

DATES: Comments must be submitted on or before December 7, 1998.

ADDRESSES: Submit written comments via the U.S. Postal Service, in 
duplicate, to the Regulations and Paperwork Management Branch, 
Attention: Richard Gartman, Rural Development, U.S. Department of 
Agriculture, Stop 0742, 1400 Independence Ave., SW, Washington, DC 
20250-0742. Submit written comments via Federal Express Mail, in 
duplicate, to the Regulations and Paperwork Management Branch, 
Attention: Richard Gartman, USDA-Rural Development, 3rd Floor, 300 E 
Street, SW., Washington, DC 20546. Also, comments may be submitted via 
the Internet by addressing them to ``[email protected]'' and must 
contain ``thermal'' in the subject line. All comments will be available 
for public inspection during regular work hours at the 300 E Street, 
SW. address listed above.

FOR FURTHER INFORMATION CONTACT: Samuel J. Hodges III, Architect, 
Program Support Staff, Rural Housing Service, U.S. Department of 
Agriculture, Stop 0761, Washington, DC 20250-0761, Telephone: (202) 
720-9653.

SUPPLEMENTARY INFORMATION:

Classification

    This rule has been determined to be significant and was reviewed by 
the Office of Management and Budget under Executive Order 12866.

Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act, 5 
U.S.C. 605(b), the head of the Agency certifies that this rule will not 
have a significant economic impact on a substantial number of small 
entities. Manufacturers, large and small, will no longer have to 
conform with the energy requirements of two Federal agencies. As 
required by federal law, manufacturers will continue to follow the 
Federal Manufactured Housing Construction and Safety Standard (FMHCSS) 
requirements. Notwithstanding the above, a regulatory impact analysis 
was prepared and determined that no significant economic impact will 
occur on a substantial number of small entities. To the contrary, the 
rule will be of substantial benefit by reducing the number of 
regulations and different standards the industry must meet.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' It is the determination of the 
issuing agency that this action does not constitute a major Federal 
action significantly affecting the quality of the human environment, 
and in accordance with the National Environmental Policy Act of 1969, 
Pub. L. 91-190, an Environmental Impact Statement is not required.

Intergovernmental Consultation

    This action affects the following programs as listed in the Catalog 
of Federal Domestic Assistance:

10.405  Farm Labor Housing Loans and Grants
10.410  Very Low to Moderate Income Housing Loans
10.415  Rural Rental Housing Loans

    All of the affected programs, except 10.410 Very Low to Moderate 
Income Housing Loans, are subject to the provisions of Executive Order 
12372 that requires intergovernmental consultation with State and local 
officials prior to making individual loans.

Civil Justice Reform

    This proposed rule has been reviewed under Executive Order 12998, 
Civil Justice Reform. If this proposed rule is adopted: (1) Unless 
otherwise specifically provided all state and local laws and 
regulations that are in conflict with this rule will be preempted; (2) 
no retroactive effect will be given to this rule except as specifically 
prescribed in the rule: and (3) administrative proceedings of the 
National Appeals Division (7 CFR part 11) must be exhausted before 
bringing suit.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (44 U.S.C. 3507), 
the information collection requirements included in this rule have been 
approved through 7 CFR part 1924, subpart A. The assigned OMB number is 
0575-0042. This rule does not revise or impose any new information 
collection or recordkeeping requirements from those approved by the 
Office of Management and Budget.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub. 
L. 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local and tribal 
governments and the private sector. Under section 202 of the UMRA,

[[Page 53617]]

RHS generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures to State, local, and tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any one year. When such a statement is needed for a 
rule, section 205 of the UMRA generally requires RHS to identify and 
consider a reasonable number of regulatory alternatives and adopt the 
least costly, more cost-effective or least burdensome alternative that 
achieves the objectives of the rule.
    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local, and tribal 
governments or the private sector. Thus today's rule is not subject to 
the requirements of sections 202 and 205 of the UMRA.

Discussion

    Subsection 502(e)(1) of the Housing Act of 1949, 42 U.S.C. 
1472(e)(1), establishes standards for manufactured homes which will be 
financed with RHS single family housing loans under section 502 of the 
Housing Act of 1949. Subsection 502(e)(1)(c) provides that manufactured 
homes must meet the energy conservation requirements applicable to 
other non-manufactured housing financed by RHS single family housing 
loans until the agency established energy conserving requirements under 
section 502(e)(2). The purpose of this regulation is to establish 
energy conserving requirements specifically designed for manufactured 
homes pursuant to section 502(e)(2).
    The section 502(e) criteria for energy conserving requirements for 
RHS financed manufactured housing require that the requirements: ``(A) 
reduce the operating costs for a borrower by maximizing the energy 
savings and be cost-effective over the life of the manufactured home or 
the term of the loan, whichever is shorter, taking into account 
variations in climate, types of energy used, the cost to modify the 
home to meet such requirements, and the estimated value of the energy 
saved over the term of the mortgage; and (B) be established so that the 
increase in the annual loan payment resulting from the added energy 
conserving requirements in excess of those required by the standards 
prescribed under title VI of the Housing and Community Development Act 
of 1974 [42 U.S.C. 5401 et seq.] shall not exceed the projected savings 
in annual energy costs.''
    The agency is adopting the energy conserving standards established 
by HUD under title VI of the Housing and Community Development Act of 
1974 and, as hereinafter discussed, has determined that these zoned 
standards maximize energy savings and are cost-effective to the 
borrower. Under this rule manufactured homes will no longer be required 
to meet the RHS thermal requirements applicable to non-manufactured 
single family housing financed by RHS. Exhibit D of 7 part 1924, 
subpart A, adopts the HUD thermal design zone requirements for the 
Federal Manufactured Home Construction and Safety Standards (FMHCCS) 
that correspond to the RHS climatic zones.
    The existing RHS requirements for a manufactured unit are: (1) The 
unit must meet the Federal Manufactured Housing Constructions and 
Safety Standards, and (2) the unit must meet the same RHS thermal 
requirements as are applicable to other, non-manufactured single family 
housing, financed by RHS prior to the National Energy Policy Act of 
1992. Since HUD increased its energy requirements for manufactured 
homes (58 FR 54975, Oct. 25, 1993, effective Oct. 25, 1994), RHS has 
compared these new requirements with the RHS thermal requirements to 
evaluate the differences.
    Our analysis indicates that the thermal performance of a unit built 
to the HUD requirements is roughly comparable to the thermal 
performance of a unit built to the requirements of the corresponding 
RHS climatic zones. The table below lists the HUD zones that are 
roughly comparable to the RHS climatic zones.

------------------------------------------------------------------------
                                                               HUD zones
               RHS climate zone (degree-days)                   (state
                                                               boundary)
------------------------------------------------------------------------
0-1000......................................................           1
1001-2500...................................................           2
2501-4500...................................................           2
4501-6000...................................................           3
> 6000......................................................           3
------------------------------------------------------------------------

    The HUD increases in the thermal requirements of the building 
envelope are substantial. However, HUD's requirements are not based on 
climatic region; instead, they are based on state boundary. As an 
example, in the State of California there are 5 RHS climatic zones; 
whereas, HUD has identified the entire state as a single zone (HUD Zone 
2). In California, the HUD-code home would be acceptable to RHS in 
climates with less than 4500 heating degree days. However, in colder 
climates of California, the HUD Zone 2 unit would not be adequate. The 
HUD Zone 3 requirements are roughly comparable to the RHS requirements 
for climatic zones greater than 4500 heating degree days. Similar 
comparisons can be made in other states.
    On this basis, in order to simplify requirements we are proposing 
to amend our current energy requirements for manufactured housing to 
adopt the design requirements for the HUD zones that correspond to the 
RHS climatic zones.
    There are many potential benefits to the manufactured housing 
industry, RHS, and most importantly, RHS customers:
    1. Manufacturers will no longer have to conform with the energy 
requirements of two Federal agencies. As required by federal law, 
manufacturers will continue to follow the FMHCSS for non-thermal 
requirements.
    2. Manufacturers will not have to retain qualified consultants to 
certify that designs conform with the existing RHS thermal 
requirements.
    3. Manufacturers will no longer have to substantiate design 
conformance to RHS thermal standards.
    4. Loan processing will be expedited since less paperwork will have 
to be reviewed by RHS loan approval officials.
    5. RHS will reduce its regulatory requirements.
    6. This will simplify on-site inspection by the RHS Community 
Development Managers (CDM). Since each local Office already knows their 
climatic zone, and since HUD requires the thermal zone for which a unit 
is built to be posted on a sticker in the unit, a CDM could quickly 
determine if a unit is acceptable by simply inspecting the HUD required 
sticker. RHS's current requirement for a separate certification sticker 
would be deleted.
    7. The RHS customer will have a wider selection of manufactured 
homes to chose from.
    8. The energy efficiency of the manufactured home will be roughly 
the same and in some cases exceed existing RHS thermal requirements.
    9. The elimination of a separate energy efficiency requirement 
applicable only to RHS manufactured homes will make lending 
institutions more willing to guarantee RHS customer loans for 
manufactured homes.

List of Subjects in 7 CFR Part 1924

    Agriculture, Construction and repair, Construction management, 
Energy conservation, Housing, Loan programs--Agriculture, Low and 
moderate income housing.


[[Page 53618]]


    Therefore, chapter XVIII, title 7, Code of Federal Regulations is 
proposed to be amended as follows:

PART 1924--CONSTRUCTION AND REPAIR

    1. The authority citation for part 1924 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 7 U.S.C 1989; 42 U.S.C 1480.

Subpart A--Planning and Performing Construction And Other 
Development

    2. Exhibit D of subpart A is amended by adding paragraph IV. G to 
read as follows:

Exhibit D to subpart A--Thermal Performance Construction Standards

* * * * *

IV. Minimum Requirements

* * * * *

G. New Manufactured Housing 

    The Uo Value Zone indicated on the ``Heating Certificate'' for 
comfort heating shall be equal to or greater than the HUD Zone 
listed in the following table:

------------------------------------------------------------------------
                                                                 FMHCCS
                                                                  (HUD
            RHS climate zones (winter degree days)              code) Uo
                                                                  value
                                                                  zones
------------------------------------------------------------------------
0-1000........................................................         1
1001-2500.....................................................         2
2501-4500.....................................................         2
4501-6000.....................................................         3
>6000.........................................................         3
------------------------------------------------------------------------

    Example: If a manufactured home is to be located in a geographic 
area having between 2501 and 4500 RHS winter degree days, the Agency 
will accept a Uo value Zone 2 unit or Zone 3 unit constructed to the 
HUD FMHCCS.
    If a central air conditioning system is provided by the home 
manufacturer a ``Comfort Cooling Certificate'' must be permanently 
affixed to an interior surface of the unit that is readily visible. 
This certificate may be combined with the heating certificate on the 
data plate.
* * * * *
    Dated: September 28, 1998.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 98-26761 Filed 10-5-98; 8:45 am]
BILLING CODE 3410-XV-P