[Federal Register Volume 68, Number 46 (Monday, March 10, 2003)]
[Proposed Rules]
[Pages 11448-11450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5646]



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Part II





Department of Housing and Urban Development





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24 CFR Part 3285



Manufactured Housing Installation Program: Standards, Training, 
Licensing, and Inspection; Advance Notice of Proposed Rulemaking

  Federal Register / Vol. 68, No. 46 / Monday, March 10, 2003 / 
Proposed Rules  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 3285

[Docket No. FR-4812-A-01]
RIN 2502-AH97


Manufactured Housing Installation Program: Standards, Training, 
Licensing, and Inspection; Advance Notice of Proposed Rulemaking

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

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: This document requests comments on issues related to the 
development of a national manufactured housing installation program. By 
December 2005, HUD is required to establish and implement an 
installation program that includes installation standards; the training 
and licensing of manufactured home installers; and inspection of the 
installation of manufactured homes. HUD's program will be implemented 
in states that do not have their own qualifying installation program.

DATES: Comment Due Date: April 24, 2003.

ADDRESSES: Interested persons are invited to submit comments regarding 
this advance notice of proposed rulemaking 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: William W. Matchneer III, 
Administrator, Office of Manufactured Housing Programs, Room 9156, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410; telephone (202) 708-6401 (this is not a toll-free 
number). Persons with hearing or speech impairments may access this 
number via TTY by calling the toll-free Federal Information Relay 
Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

Background

    The National Manufactured Housing Construction and Safety Standards 
Act of 1974 (``the Act'') (42 U.S.C. 5401-5426) is intended to protect 
the quality, safety, durability, and affordability of manufactured 
homes. The Act was amended in December 2000 (title VI, Pub. L. 106-659, 
114 Stat. 2997, approved December 27, 2000), in part to require the 
Secretary to establish and implement two new national manufactured 
housing programs, one for installation and one for dispute resolution.
    This notice requests public input on what HUD should consider as it 
develops a proposed rule to establish the installation program. When 
the subsequent proposed rule is published, the public will also have an 
opportunity to comment on the elements of HUD's specific proposals. An 
advance notice of proposed rulemaking soliciting comments on the 
dispute resolution program is being published separately in today's 
Federal Register. The public is invited to submit comments separately 
in response to that notice, and should refer to the docket number and 
title of that notice in any such response.

Installation Program

    Section 605 of the Act (42 U.S.C. 5404) requires the Secretary to 
establish and implement a manufactured housing installation program by 
December 27, 2005. The components of the program must include: (1) 
Installation standards; (2) the training and licensing of manufactured 
home installers; and (3) inspection of the installation of manufactured 
homes. HUD's program will be implemented in any state that does not 
have its own installation program established by state law that 
includes these three components. Further, a state's installation 
standards must provide protection that equals or exceeds the protection 
provided by the standards adopted by HUD for its national program.
    HUD's installation standards will be developed and established 
after it receives draft model standards proposed by the Manufactured 
Housing Consensus Committee (``the MHCC''). The MHCC is an advisory 
committee that was also established by the December 2000 amendments to 
the Act. After HUD receives the MHCC draft installation standards, HUD 
will publish for public comment proposed model installation standards. 
Because the MHCC will first address the content of draft installation 
standards, most of the questions in today's advance notice of proposed 
rulemaking focus on the other components of HUD's installation program. 
Comments received that relate to the development of installation 
standards will be shared with the MHCC as it works to develop draft 
installation standards for submittal to HUD.

Request for Comments

    Commenters are invited to comment on the specific topics suggested 
below, or on any other matter or concern relevant to the development of 
an installation program as described above. HUD requests that comments 
on the following issues reference the number of the issue described, 
and that other comments be separately identified in the commenter's 
response:

General Questions

    1. How should consumers be made aware of the existence of, and 
their rights under, the installation, licensing, training, and 
inspection program?
    2. How will HUD obtain funding for its installation, licensing, 
training, and inspection program? Should HUD charge licensing, 
training, and inspection fees in order to support its installation 
program? If so, how should fees be determined? Who will be required to 
pay the fees?
    3. In situations where one part of a state's program meets the 
Act's required criteria, but is deemed insufficient in another part 
(e.g., the state's licensing program meets or exceeds the federal 
requirements, but its training program lacks certain required 
elements), could there be a partial acceptance of that state's program, 
or would HUD's program preempt the entire state program?
    4. How should state licensing, training, and inspection programs be 
funded? Should adequate funding be a criterion for HUD approval?
    5. Should it be mandatory for states with approved installation 
programs to permit installations by HUD-licensed installers?
    6. Should HUD consider an approach that both certifies installers 
and provides for accreditation of trainers?
    7. Are there ways in which the licensing and training could be 
facilitated through electronic means?
    8. What factors should the Secretary consider when determining 
whether to apply the new installation requirements to existing, as well 
as to new, home installations?

Installation Standards

    9. HUD preempts state and local manufactured home construction and 
safety standards. How should an installation standard be differentiated 
from a construction and safety standard, so that local, state, and 
federal enforcement personnel will understand the scope of their 
jurisdiction? (i.e., how

[[Page 11449]]

should ``installation'' be defined to distinguish installation from 
``construction''?)
    10. Should all Alternative Construction (AC) approvals that affect 
installations be resubmitted to determine if AC approval is still 
necessary after new installation standards become effective? Should HUD 
expand the AC process to permit deviations from the new installation 
standards?
    11. What should be the procedure or mechanism for determining that 
a state's installation standards provide protection that equals or 
exceeds the protection provided to residents of manufactured homes by 
the model installation standards adopted by HUD?
    12. Section 605(c)(3)(A)(ii) of the Act (42 U.S.C. 
5404(c)(3)(A)(ii)) also permits installation standards that provide 
protection that equals or exceeds the protection provided to residents 
of manufactured homes by the installation designs and instructions 
required to be provided by manufacturers, if HUD determines that such 
designs and instructions provide protection at least equivalent to the 
model installation standards adopted by HUD. In addition, section 
605(a) of the Act (42 U.S.C. 5404(a)) provides that design approval 
primary inspection agencies (DAPIAs) will be required to approve all 
manufacturer designs and instructions, but only if they provide equal 
or greater protection than the protection provided by the model 
standards. What should be the procedure or mechanism for a 
determination by HUD that a manufacturer's installation designs and 
instructions for any home it produces meets the level of protection 
provided by the model standards?
    13. What factors should HUD take into consideration when reviewing 
proprietary installation systems under the new installation standards?

Licensing Installers

    14. As stated earlier, HUD's program will be implemented in each 
state that does not have its own qualified installation program. How 
should HUD determine whether a state licensing program is a bona fide 
program that meets the requirements of the Act?
    15. How much experience installing manufactured homes should 
installers have before becoming eligible for installation licenses? 
Should HUD, as do many states, establish a minimum age for installers?
    16. Some state programs allow unlicensed personnel working under 
licensed installers to perform installations, as long as the unlicensed 
personnel are working under the licensed installers' direct 
supervision. Other states require everyone who performs installation 
work to obtain a license. Should HUD require all individuals who 
perform installations to obtain a license or should HUD allow 
unlicensed individuals to perform installation work as long as they 
work under the direction of licensed installers?
    17. Some states provide different levels of licensing. For example, 
Level One would allow licensees to level ground and place piers to 
support a manufactured home; Level Two would additionally permit 
licensees to make structural repairs, alterations, and modifications; 
Level Three holders would be allowed to perform the functions included 
in Levels One and Two plus service and repair natural gas piping and 
appliances, change and adjust orifices, and service and repair plumbing 
and electrical systems. Should HUD adopt a multilevel licensing system? 
Or should HUD develop one general license under which licensees may 
perform any or all of these functions?
    18. For what amount of time should licenses be valid? Should all 
licenses expire on a specific day, e.g., the last day of the month, no 
matter when they were obtained?
    19. Should HUD grant temporary licenses to installers while they 
await licensing? If so, for how long should temporary licensing be 
valid? What restrictions should be placed on the scope of a temporary 
license?
    20. How much insurance coverage should HUD require installers to 
maintain? What should that insurance cover?
    21. Should HUD require licensees to be bonded, as well as insured? 
If so, what would be a reasonable amount of security?
    22. Should HUD use contractors to perform licensing functions? If 
so, what qualifications in terms of background or experience should 
outside contractors have?
    23. What should be the procedures and the grounds for revoking, 
suspending, or denying licenses?
    24. Should HUD differentiate in the installation regulations 
between independent installers and manufacturers that perform their own 
installations?

Training Installers

    25. As stated earlier, HUD's program will be implemented in each 
state that does not have its own qualified installation program. How 
should HUD determine whether a state training program is a bona fide 
program that meets the requirements of the Act?
    26. In the event that HUD decides that installers may utilize 
unlicensed installers working under the licensed installers' 
supervision, should HUD require that the unlicensed workers receive 
training before being allowed to perform installations? If so, how much 
training should HUD require that they take?
    27. What procedures should HUD establish for approving 
organizations that provide training or continuing education? Under what 
circumstances should HUD deny or withdraw approval of courses or their 
sponsors?
    28. For what length of time should HUD's approval of courses and 
trainers be valid? What process should HUD implement for the renewal of 
course and trainer approval?
    29. How many hours of training should HUD require in order for an 
individual or installation company to obtain a license? Should 
installers also take an examination as a condition of obtaining 
licenses? Should HUD require continuing education in order for 
installers to maintain or renew their licenses? If so, how many hours?
    30. What would be the recommended content, duration, and 
organization of training and continuing education courses that 
contribute to the general competence of installers?
    31. Should HUD use contractors to perform training functions? If 
so, what qualifications in terms of background or experience should 
contractors have?
    32. Should HUD approve training programs sponsored by manufactured 
home manufacturers, retailers, installers, and other firms in the 
manufactured housing industry? If so, what process and criteria should 
HUD use in order to approve their programs?

Inspection of Installation

    33. Should the installation of every new and used manufactured home 
be inspected? If not, what process should HUD use in order to determine 
which installations should be inspected? What should be the scope of an 
inspection?
    34. Who would be responsible for arranging for a required 
inspection of the installation? When and how would the purchaser be 
notified of the requirements for an inspection of the installation?
    35. Can a purchaser waive the right to an inspection of the 
installation, given that the statute provides that ``rights afforded 
manufactured home purchasers * * * may not be waived, and any provision 
of a contract or agreement * * * to the contrary shall be void''? 
(Section 622; 42 U.S.C. 5421.)

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    36. Who would be qualified to perform installation inspections? Are 
there any potential conflicts of interest or similar concerns that 
should disqualify any person or entity from performing installation 
inspections? If so, please explain.
    37. What standards and qualifications should HUD require 
installation inspectors to meet? How many years of experience should 
they have in order to perform inspections?
    38. What should be the result of a failure to pass the inspection 
of an installation? How should the consumer's interest in purchasing an 
acceptable home for timely placement on site be assured? Should 
retailers be required to disclose clearly any limits on their 
responsibility for proper installation? If so, how?
    39. In the event that an installation has been improperly 
performed, should HUD require the original installer to perform the 
necessary corrective work? If so, within what amount of time should the 
corrections need to be completed? Within how many days of the 
correction work should the installation be reinspected?
    40. How will HUD ensure that a home has been installed in 
accordance with the installation standards? Should self-certification 
and attachment of a certifying label by an installer be required? If 
so, should certification labels indicate whether the installation was 
performed in accordance with federal or state requirements?
    41. Should there be increased performance reviews of an installer 
who has a history of installations that do not meet minimum 
requirements of the installation program?
    42. Should a homeowner be allowed to install his or her own home? 
If so, what requirements should apply?

    Authority: 42 U.S.C. 3535(d), 5404, and 5424.

    Dated: March 3, 2003.
John C. Weicher,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 03-5646 Filed 3-5-03; 3:35 pm]
BILLING CODE 4210-27-P