[Federal Register Volume 67, Number 72 (Monday, April 15, 2002)]
[Proposed Rules]
[Pages 18398-18399]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-9000]



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Part IV





Department of Housing and Urban Development





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24 CFR Part 3284



Manufactured Housing Program Fee; Proposed Rule

  Federal Register / Vol. 67, No. 72 / Monday, April 15, 2002 / 
Proposed Rules  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 3284

[Docket No. FR-4665-P-01]
RIN 2502-AH62


Manufactured Housing Program Fee

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

ACTION: Proposed rule.

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SUMMARY: In accordance with recent statutory direction, the Department 
is publishing this proposed rule to modify the amount of the fee that 
is collected from manufacturers of manufactured homes to fund HUD's 
responsibilities under the National Manufactured Housing and Safety 
Standards Act of 1974 and to set minimum payments to the States.

DATES: Comment Due Date: May 15, 2002.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Rules Docket Clerk, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street, 
SW, Washington, DC 20410-0500. Communications should refer to the above 
docket number and title. Facsimile (FAX) comments are not acceptable. A 
copy of each communication submitted will be available for public 
inspection and copying between 7:30 a.m. and 5:30 p.m. weekdays at the 
above address.

FOR FURTHER INFORMATION CONTACT: Elizabeth Cocke, Acting Director, 
Office of Consumer and Regulatory Affairs, U.S. Department of Housing 
and Urban Development, 451 Seventh Street, SW, Washington, DC 20410-
8000; telephone (202) 708-6401 (this is not a toll-free number). 
Hearing-or speech-impaired individuals may access this number via TTY 
by calling the toll-free Federal Information Relay Service at (800) 
877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    The Department is initiating this rulemaking to modify the amount 
of the fee that will be collected from manufactured home manufacturers 
in accordance with section 620(d) of the National Manufactured Housing 
Construction and Safety Standards Act of 1974 (the Act). These fees are 
used to offset HUD's expenses for carrying out its responsibilities 
under the Act and have not been increased for twelve years. Section 
620(d) of the Act, added by the Manufactured Housing Improvement Act of 
2000 (Pub. L. 106-569, 114 Stat. 2944, approved December 27, 2000) (the 
MHI Act) provides that the amount of any fee ``may only be modified: 
(1) As specifically authorized in advance in an annual appropriations 
Act; and (2) pursuant to rulemaking in accordance with section 553 of 
title 5, United States Code.'' (Section 553 of title 5, United States 
Code contains the ``informal'' rulemaking requirements of the 
Administrative Procedure Act.) Section 620(e) of the Act (unless 
otherwise noted in this preamble, references to a section of the Act 
include the amendments made to that section by the MHI Act) further 
provides that amounts from any fee shall be available for expenditure 
only to the extent approved in advance in an annual appropriations Act.
    The fee that HUD collects under the Act is levied upon the 
transportable sections of each new manufactured housing unit, and the 
total amount of the fees that HUD collects annually is dependent upon 
the number of transportable sections produced per year. The amendments 
made by the MHI Act in section 620(d) of the Act, which make the 
modification of the amount of the fee subject to implementation only 
pursuant to rulemaking in accordance with section 553 of title 5, 
United States Code, prompt this rulemaking.
    This rule would establish a new part 3284, under which the amount 
of the fee would be codified. The amount proposed in this rule would be 
determined by dividing the annual projected number of manufactured 
housing transportable units into the amount appropriated for the 
Federal Fiscal Year (FFY) to establish the amount of the fee per 
transportable section. The amount appropriated for FFY 2002 by the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 2002, (Pub. L. 107-73, 115 
Stat. 651, approved November 27, 2001) (FFY 2002 Appropriations Act) is 
$13,566,000. The projected number of transportable sections for the 
fiscal year is 350,000. This number was determined by using production 
figures compiled over the last three years, projections of production 
from manufactured housing trade associations, and projections offered 
by manufacturers. HUD is specifically inviting comment on the projected 
number of transportable sections. The use of this number would result 
in a revised fee of $39.
    In accordance with section 620(e)(3) of the Act, which was also 
added by the MHI Act, this rule also provides that HUD will continue to 
fund States having approved State plans in amounts not less than the 
allocated amounts, based on the fee distribution system in effect on 
December 26, 2000. The yearly payment to a State would be set by this 
rule as not less than the amount paid to that State for the 12 months 
ending on December 26, 2000.

II. Findings and Certifications

Justification for 30-Day Comment Period

    It is the general practice of the Department to provide a 60-day 
public comment period on all proposed rules. However, the Department is 
shortening its usual 60-day public comment period to 30 days to make 
the amount of the fee effective as soon as possible so that funds will 
be available to offset the expenses incurred by HUD in connection with 
the manufactured housing program authorized by the Act.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) (UMRA) establishes requirements for Federal agencies to 
assess the effects of their regulatory actions on State, local, and 
tribal governments and the private sector. This proposed rule does not 
impose any Federal mandates on any State, local, or tribal governments 
or the private sector within the meaning of the UMRA.

Environmental Impact

    In accordance with 24 CFR 50.19(c)(6) of the HUD regulations, this 
rule sets forth fiscal requirements which do not constitute a 
development decision that affects the physical condition of specific 
project areas or building sites, and therefore is categorically 
excluded from the requirements of the National Environmental Policy Act 
and related Federal laws and authorities.

Impact on Small Entities

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this rule and in so doing 
certifies that this rule would not have a significant economic impact 
on a substantial number of small entities. This rule will have a total 
economic impact this Federal Fiscal Year of no more than $13,566,000, 
the amount approved by Congress in HUD's FY 2002 Appropriations Act. 
Congress further requires HUD to collect this amount in fees from 
manufacturers of manufactured housing, and the rule would implement 
this mandate by establishing a per unit fee on transportable sections 
of manufactured

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housing that would be proportional in its impact, with a greater impact 
on larger manufacturers and a lesser impact on smaller manufacturers. 
Notwithstanding HUD's determination that this rule will not have a 
significant economic effect on a substantial number of small entities, 
HUD specifically invites comments regarding any less burdensome 
alternatives to this rule that will meet HUD's objectives as described 
in this preamble.

Federalism Impact

    Executive Order 13132 (entitled ``Federalism'') prohibits, to the 
extent practicable and permitted by law, an agency from promulgating a 
regulation that has federalism implications and either imposes 
substantial direct compliance costs on State and local governments and 
is not required by statute, or preempts State law, unless the relevant 
requirements of section 6 of the Executive Order are met. This rule 
does not have federalism implications and does not impose substantial 
direct compliance costs on State and local governments or preempt State 
law within the meaning of the Executive Order.

Executive Order 12866, Regulatory Planning and Review

    The Office of Management and Budget (OMB) reviewed this proposed 
rule under Executive Order 12866 (entitled ``Regulatory Planning and 
Review''). OMB determined that this proposed rule is a ``significant 
regulatory action,'' as defined in section 3(f) of the Order (although 
not economically significant, as provided in section 3(f)(1) of the 
Order). Any changes made to the proposed rule subsequent to its 
submission to OMB are identified in the docket file, which is available 
for public inspection in the office of the Rules Docket Clerk, Room 
10276, U.S. Department of Housing and Urban Development, 451 Seventh 
Street, SW, Washington, DC, 20410-0500.

List of Subjects in 24 CFR Part 3284

    Consumer protection, Manufactured homes.


    Accordingly, for the reasons discussed in this preamble, HUD 
proposes to add 24 CFR part 3284, as follows:

PART 3284--MANUFACTURED HOUSING PROGRAM FEE

Sec.
3284.1  Applicability.
3284.5  Amount of fee.
3284.10  Payment to States.

    Authority: 42 U.S.C. 5419 and 5424; 42 U.S.C. 3535(d).


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). 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 must pay a fee of $39 (the amount resulting from 
dividing $13,566,000, the amount appropriated for this purpose by 
Congress for Federal Fiscal Year (FFY) 2002, by 350,000, the projected 
total number of transportable sections that will be produced in FFY 
2002, based on industry production figures) per transportable section 
of manufactured housing unit that it manufactures under the 
requirements of part 3280 of this title.


Sec. 3284.10  Payment 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 title, 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.

    Dated: March 14, 2002.
John C. Weicher,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 02-9000 Filed 4-12-02; 8:45 am]
BILLING CODE 4210-27-P