[Federal Register Volume 71, Number 114 (Wednesday, June 14, 2006)]
[Proposed Rules]
[Pages 34476-34505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-5389]



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Part V





Department of Housing and Urban Development





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24 CFR Part 3286



Manufactured Home Installation Program; Proposed Rule

  Federal Register / Vol. 71, No. 114 / Wednesday, June 14, 2006 / 
Proposed Rules  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 3286

[Docket No. FR-4812-P-02; HUD-2006-0167]
RIN 2502-AH97


Manufactured Home Installation Program

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

ACTION: Proposed rule.

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SUMMARY: This proposed rule would establish a federal manufactured home 
installation program. HUD is required to establish such a program in 
accordance with the National Manufactured Housing Construction and 
Safety Standards Act of 1974, as amended by the Manufactured Housing 
Improvement Act of 2000. States that have their own installation 
programs that include the elements required by statute are permitted to 
administer under their state installation programs, the new 
requirements that would be established through this proposed and final 
rulemaking. The new elements required by statute to be integrated into 
an acceptable manufactured home installation program are: Establishment 
of qualified installation standards; licensing and training of 
installers; and inspection of the installation of manufactured homes.

DATES: Comment Due Date: August 14, 2006.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Regulations Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 10276, Washington, DC 20410-0500. Interested persons also may 
submit comments electronically through the Federal eRulemaking Portal 
at www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically in order to make them immediately available to 
the public. Commenters should follow the instructions provided on that 
site to submit comments electronically.
    Facsimile (FAX) comments are not acceptable. In all cases, 
communications must refer to the docket number and title. All comments 
and communications submitted to HUD will be available, without change, 
for public inspection and copying between 8 a.m. and 5 p.m. weekdays at 
the above address. Due to security measures at the HUD Headquarters 
building, an advance appointment to review the public comments must be 
scheduled by calling the Regulations Division at (202) 708-3055 (this 
is not a toll-free number). Copies of all comments submitted are 
available for inspection and downloading at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: William W. Matchneer III, Associate 
Deputy Assistant Secretary for Regulatory Affairs, Office of Regulatory 
Affairs and Manufactured Housing, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 9164, Washington, DC 20410-
8000; 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 (800) 
877-8389.

SUPPLEMENTARY INFORMATION: 

I. Background

    The National Manufactured Housing Construction and Safety Standards 
Act of 1974 (42 U.S.C. 5401-5426) (the Act) is intended, in part, to 
protect the quality, safety, durability, and affordability of 
manufactured homes. The Act was amended on December 27, 2000 
(Manufactured Housing Improvement Act of 2000, Title VI, Pub. L. 106-
659, 114 Stat. 2997) to require HUD to, among other things, establish 
and implement a new manufactured home installation program for states 
that choose not to operate their own installation programs. 
Specifically, section 605 of the Act (42 U.S.C. 5404) calls for the 
establishment of an installation program that includes installation 
standards, the training and licensing of manufactured home installers, 
and inspection of the installation of manufactured homes.
    A state that wants to operate its own installation program is not 
required to be a State Administrative Agency (SAA) under HUD's 
manufactured home program (see 24 CFR part 3282). Under the Act, 
however, any state that submits a new state plan to become an SAA after 
December 26, 2005, must include a complying installation program as 
part of its plan. As a result, after December 26, 2005, any state that 
becomes an SAA for the first time, or any state that becomes an SAA 
again after a lapse in its SAA status, will be required to administer 
its own compliant installation program.
    The installation standards that will provide a basis for qualifying 
an installation program under section 605 of the Act were the subject 
of a separate proposed rule, which was published on April 26, 2005 (70 
FR 21498). In addition, an Advance Notice of Proposed Rulemaking that 
solicited public input on the installation program requirements was 
published on March 10, 2003 (68 FR 11448). Twenty-six commenters 
responded to the March 2003 notice, including a dozen state agencies, 
five state and national industry groups, a manufacturer, four state and 
national consumer groups, and four individuals. The comments and 
suggestions received from all of these commenters, as well as from the 
Manufactured Housing Consensus Committee (MHCC), were taken into 
consideration in the development of this proposed rule. However, not 
all of the comments could be accommodated, because of statutory 
authority or cost considerations. For example, the MHCC and commenters 
have recommended that HUD develop a program database to record and 
verify installations and to record how installers and other parties 
meet the installation program requirements. Such a database would be 
available for recording training, including continuing education; 
licensing; and installation inspections and verifications. Due to cost 
considerations, the proposed rule provides for the possibility of such 
a tracking system, but also provides for less expensive alternative 
methods. Further, the Department is seeking comment regarding what 
information should be sent to the Department and what should be 
retained by retailers and installers.
    A number of the comments focused on the administration of state 
installation programs rather than HUD's development and administration 
of a federal installation program. These comments were helpful, and HUD 
is examining the degree to which HUD has authority to use additional 
suggested approaches to implement its installation program. For 
example, both the MHCC and a number of commenters suggested that 
parties that participate in and receive the benefits of the 
installation program pay at least a portion of the direct costs 
associated with the program. This is an approach used by many states 
that currently have installation programs. Such user charges would 
generally not be intended to cover the purely administrative costs to 
HUD of implementing the program, but might include fees to obtain an 
installer's license or to be qualified as a trainer. Other 
administrative costs of the program in HUD-administered states would be 
funded as general program expenses. HUD is currently reviewing this 
approach and will not introduce any user fees until HUD's authority on

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such an approach is clear. Nevertheless, HUD is requesting comments on 
the advisability of incorporating such fees into the installation 
program for HUD-administered states.

II. General Principles

    HUD identified several general principles to guide it in developing 
this proposed rule. As a starting point, HUD wanted to encourage states 
to establish and implement their own installation programs. For the 
federal program, HUD determined that it wanted to concentrate its 
limited resources on assuring a quality end product, rather than on 
micromanagement of the installation process, such as negotiating 
specific methods used by each installer, retailer, and manufacturer.
    So that installers would not be dependent on the actions of HUD in 
order to complete any phase of home installation, HUD wanted to 
minimize its role in the actual installation process. Instead, HUD has 
sought to maintain knowledge of the parties involved in the 
installation process by assuring the collection of certain information 
regarding the parties' work. Ultimately, the goal for HUD's continued 
administration of its installation program would be to identify trends 
or early indicators of potential problems and then address those areas 
on a systemic basis.
    HUD has based its program design on limiting HUD's day-to-day 
oversight and encouraging participation in the oversight process by 
local building code authorities. Such a program design would be the 
most economical and effective approach. In addition, this design would 
take advantage of the expertise of qualified state and local 
authorities that are already providing oversight for the installation 
of manufactured homes.
    The HUD-administered installation program outlined in this proposed 
rule would be based on qualified installer self-certification of the 
proper installation of the manufactured home, similar to the 
certification concept used for manufacturers to assert compliance of 
the home with construction and safety standards. The installation 
certification would include certification that the work had passed the 
required inspection, which would include at least certain elements 
specified in the rule. At the same time, by requiring the retailer to 
be responsible for certain recordkeeping functions, the rule would 
recognize that the retailer is an important component of the 
installation process.
    The rule also would establish disclosure requirements to help the 
purchaser or lessee understand the installation requirements, and would 
set out installation-related responsibilities for home manufacturers.
    Finally, the rule would establish special procedures for adding to 
or revising the regulations that would be included in this new part 
3286. These procedures would involve the MHCC, a consensus committee 
established in section 604(a)(3) of the Act (42 U.S.C. 5403), in the 
issuance of regulations for the installation program and would be in 
addition to the rulemaking procedures that would otherwise apply.

III. Manufactured Home Installation Program Overview

    The statutory concept of the manufactured home installation 
program, whether HUD-administered or state-administered, is to apply 
minimum standards to the installation of new manufactured homes, so 
that qualified persons will install the homes properly. Manufactured 
homes that are properly installed can provide safe and durable quality 
housing that can also be highly affordable, since proper installation 
can mean fewer repairs and longer home-lives.
    The proposed rule sets out, in discrete subparts: (1) Manufactured 
home installation requirements that are applicable in all states 
(subparts A and H) and to all manufacturers; (2) requirements that are 
applicable in only those states in which HUD is administering the 
installation program (subparts B-G); and (3) requirements for states 
that wish to apply to administer their own installation programs in 
lieu of the HUD program (subpart I). Further, to make the applicable 
requirements more readily identifiable, the proposed rule separately 
organizes the requirements that apply to the retailers, distributors, 
installers, installation trainers, and installation inspectors in 
states where HUD administers the installation program. If a term is 
defined in both this proposed rule and other parts of HUD's 
manufactured housing program regulations, the final rule may include 
conforming amendments to assure consistency of the definitions, as 
appropriate.
    Manufacturer Responsibilities (All States). All manufacturers would 
be required to provide, with each home, an installation design and 
instructions that have been deemed by a Design Approval Primary 
Inspection Agency (DAPIA) as providing at least the level of protection 
that would be provided under the installation standards that will be 
adopted by HUD in 24 CFR part 3285 (see 70 FR 21498, April 26, 2005). 
If a home is installed in accordance with instructions provided by the 
manufacturer and those instructions do not provide at least the 
required level of protection, the manufacturer will be responsible for 
the failure of the home to comply with the installation standards.
    The manufacturer's installation instructions also must include 
instructions for supporting the manufactured home temporarily before 
the home is first sited for occupancy. In order to prevent the home 
from being brought out of compliance with the construction and safety 
standards, the instructions must be adequate to assure support for each 
transportable section of a manufactured home that is temporarily or 
permanently located on a site used by the manufacturer, by the retailer 
or at the home site.
    For each home a manufacturer ships, the manufacturer must 
concurrently provide HUD with certain information that identifies the 
home and the destination of the shipment. This information is similar 
to what is required already from manufacturers under regulations set 
out in 24 CFR 3282.552 relating to the construction of homes. HUD 
anticipates that the manufacturer's reporting requirements for 
identifying the home and the destination of the shipment will be 
satisfied by a consolidated report. Manufacturers, with their homes 
shipped to retailers and distributors, would also be required to 
include confirmation that this tracking information has been provided 
to HUD, and the information must be updated by the retailer or 
distributor. Manufacturers would also be required to include in their 
consumer manuals a recommendation that if a manufactured home is 
reinstalled, the new installation work should be inspected.
    Retailer/Distributor Responsibilities (All States). The proposed 
rule defines ``retailer'' to include manufacturers and distributors 
that sell manufactured homes directly to purchasers. All retailers and 
distributors would be required to support each transportable section of 
a manufactured home that is temporarily or permanently located on a 
site used by the retailer or distributor in accordance with the 
manufacturer's instructions for temporary storage, in order to prevent 
the home from being brought out of compliance with the construction and 
safety standards.
    The rule would require retailers to provide certain disclosures to 
purchasers or lessees, either as a separate section of the sales or 
lease contract or in a separate document. The disclosures are intended 
to provide important information to consumers

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regarding the installation requirements that will apply to their 
manufactured homes. The proposed rule also reminds parties that the Act 
prohibits provisions in agreements or contracts that would allow 
purchasers or lessees to waive any rights afforded to them by the Act.
    For each home that is sold or leased, retailers and distributors 
would be required to maintain a sales or lease record containing 
specified information for 5 years. For each home that is installed in a 
state where HUD administers the installation program, retailers and 
distributors would also be required to update the tracking information 
that the manufacturers had provided to HUD. This information will 
enable HUD to determine which homes are to be installed in accordance 
with the HUD-administered installation program. Additional information 
provided by the retailers for homes sited in states where HUD 
administers the installation program will help HUD ascertain whether 
the installation requirements have been met, and will help HUD identify 
ways to improve the program.
    The proposed rule also assigns other responsibilities to the 
retailer. Before the manufactured home is sold or leased, the retailer 
must verify that the home is appropriate for the wind, thermal, and 
roof loads where the home is to be sited. If the initial home site is 
not yet known, the retailer must provide additional disclosures to the 
purchaser or lessee about the design limits of the home and about the 
risk that an improperly sited home may not pass required inspections. 
The retailer must also provide the installer with a copy of the 
approved installation design and instructions.
    Installer Responsibilities (HUD-Administered States). The quality 
of the installation work on a manufactured home will depend primarily 
on the installer. Because HUD has not previously exercised authority 
over installers, they are likely to be in need of education about the 
new requirements that would apply to their work. The amendments to the 
Act that mandate an installation program recognize the importance of 
quality installation work to the performance of a purchaser's home. HUD 
hopes that the network of manufacturers and retailers, who are already 
familiar with the federal role in manufactured housing, will work to 
assure an educated and qualified pool of manufactured home installers. 
To be qualified, an installer will have to demonstrate adequate 
training, including experience, in order to be recognized by HUD as a 
licensed installer. The term ``installation license'' or ``installer's 
license'' is defined in a specific way in the proposed rule, to 
acknowledge that the term ``license'' is often understood to imply 
other characteristics than are applicable under the proposed rule.
    An installer would be required to obtain training from approved 
trainers, who would be responsible for teaching a curriculum that 
enables installers to pass a HUD-administered or HUD-approved test. The 
proposed rule establishes both initial training requirements and 
continuing education requirements for installers.
    In addition, an installer seeking a license from HUD would be 
required to provide evidence of, and maintain, general liability 
insurance. The term of the license would be 3 years, but the license 
could be renewed. If an applicant is denied a license on grounds other 
than failure to pass the installation license test, or if a licensee 
receives notice that his or her license might be revoked or suspended, 
the applicant or licensee could request an opportunity to challenge the 
adverse action in an administrative proceeding.
    Not all persons who perform installation work would be required to 
be licensed. Only licensed installers, however, would be permitted to 
certify the installation as being in conformance with the applicable 
instructions and the requirements of HUD's installation program, and 
the licensed installer would be responsible for all of the installation 
work. The proposed rule also lists typical work related to the siting 
of a manufactured home for which an installation license is not 
required.
    After meeting the licensing requirements, an installer would be 
qualified to install a manufactured home in a state where HUD 
administers the installation program. The installer would be 
responsible for installing the home in accordance with the 
manufacturer's instructions, which must reflect the requirements 
established by HUD. As part of the installation work, the installer 
would be required to verify: (1) The suitability of the site for 
placement of the home and (2) suitability of the proposed foundation or 
support and stabilization system. If the installer believes the home 
cannot be installed properly at the site, the installer must notify the 
contracting parties, including the retailer, and must decline to 
install the home until the deficiencies are remedied.
    After completion of the installation work, the installer or 
retailer would be required to arrange on a timely basis for the work to 
be inspected by an appropriate third-party inspector. The proposed rule 
does not specify a time for completion of the inspection; rather, the 
rule merely requires that it be arranged within 5 business days after 
completion of the installation work. HUD recognizes that inspector 
availability may be beyond the control of the installer and retailer, 
but expects that the installer and retailer will have sufficient 
incentive to complete the inspection without having to establish a 
deadline for completion.
    When the installer has received the verification of compliance from 
a qualified inspector, the installer may certify the installation work. 
The installer would then provide the certification to the retailer and 
a copy of the certification to the purchaser. Finally, the installer is 
required to maintain certain records relating to the installation for 5 
years.
    Trainers (HUD-Administered States). The proposed rule establishes 
experience and curriculum criteria for persons who wish to register as 
installation trainers under the HUD-administered installation program. 
HUD proposes allowing a broad range of private persons and entities to 
provide the required training, which HUD hopes will assure continued 
ready access to trainers by installer-license candidates throughout the 
country. Qualified trainers would be required to maintain attendance 
and other records and to provide certificates of completion of 
training, and may be authorized to administer the tests required for 
installers to obtain licenses from HUD. The curriculum that trainers 
would be required to develop includes an overview of the Act and the 
regulatory structure of HUD's manufactured home program, as well as 
general and specific instruction of installation standards and 
requirements.
    The requirements for continuing education to maintain an 
installer's license beyond the initial 3-year term would be more 
flexible. Only qualified trainers would be permitted to train on 
subject areas required by HUD for continuing education, but the balance 
of the required hours could be met in a variety of ways.
    Interested individuals and entities would apply to HUD to be 
recognized as qualified trainers for a renewable 5-year term. The 
proposed rule also provides a right for applicants and qualified 
trainers to request an opportunity to challenge, in an administrative 
proceeding, any adverse action on their qualification by HUD.
    Inspectors (HUD-Administered States). HUD proposes to rely on local 
building inspectors and professional engineers and architects as

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independent, third-party inspectors of all installations of new 
manufactured homes in states where HUD administers the installation 
program. Generally, the installer would be responsible for obtaining 
and paying for the inspection services. The proposed rule sets out the 
elements that would be included in the inspection checklist, including 
required permits, specific elements of the minimum installation 
standards, and operational checks to be completed. The inspector would 
verify that the installation has been completed in accordance with the 
requirements of the regulations and would provide evidence of the 
verification to the installer. The installer must receive this 
verification before the installer could certify the installation work. 
The proposed rule also addresses what would happen if an installation 
cannot be verified as meeting the requirements of the regulations. As 
with other categories of program participants, inspectors would have a 
right to request administrative review of an adverse action by HUD on 
their authority to serve as inspectors in the HUD-administered states.
    Enforcement (HUD-Administered States). The proposed rule reiterates 
that failure to comply with the installation program requirements would 
be a prohibited act under section 610(a)(7) of the Act (42 U.S.C. 
5409(A)). As a result, the violator would be subject to civil and 
criminal penalties and actions for injunctive relief. In addition, 
installation defects that are reported in the first year after 
installation may be addressed in a dispute resolution program that 
meets the requirements in section 623 of the Act (42 U.S.C. 5422). HUD 
has published a separate proposed rule to implement the requirements 
for a qualifying dispute resolution program on October 20, 2005, at 70 
FR 61178.
    Recordkeeping (All States). As proposed, the rule would require 
retailers and distributors to maintain a sales or lease record 
containing specified information for all homes that they sell or lease. 
In addition, retailers and distributors would be required to report to 
HUD certain information about each home that is installed in states 
where HUD administers the installation program, so that HUD can 
determine which homes are to be installed in accordance with the HUD-
administered installation program. This information may be useful if 
HUD is to structure fees according to the siting of the home. Such a 
reporting structure might eventually be simplified by establishing 
Internet-based data entry, rather than using hard-copy reports, and by 
consolidating installation and construction reporting requirements.

IV. State Installation Programs

    Qualifying State Programs. One of HUD's guiding principles in 
developing the proposed HUD Manufactured Home Installation Program is 
to encourage the development and continued innovation of state 
installation programs. The proposed rule would establish that the HUD-
administered installation program will operate in a state unless that 
state certifies, using a form provided in the rule, that it has its own 
qualifying installation program. A state installation program would be 
required to meet criteria listed in the self-certification form, but 
the rule would not specify how the criteria are to be met. In this way, 
states will have more flexibility to design installation programs or 
modify existing ones according to their individual preferences and 
circumstances.
    A state's certification would encompass those elements expressly 
required by the Act to be part of a qualifying program, i.e., standards 
that provide protection to residents that equals or exceeds the level 
of protection provided by HUD's model standards; the state's training 
and licensing of installers; and the state's inspection of 
installations. An appropriate state official would sign the self-
certification, and, at least initially, HUD would perform only a 
limited review of such certifications. If a state provides for its 
installation program as part of a state plan, HUD would also consider 
the installation program when it reviews the state plan. 
Recertification would be required every 3 years or whenever there is a 
significant revision in either the state's installation standards or 
its installation program elements.
    Generally, a state that wants to administer its own program will 
have to assure HUD that all geographical areas of the state would be 
covered by the applicable installation standards and the other program 
requirements. An exception would be provided for limited areas of the 
state that are subject to federal law that prevents the state from 
having jurisdiction over manufactured home installations in those 
areas. The certification form would include an item asking the state 
for information about such situations. The certification form also asks 
the state to provide other information that will help HUD understand 
and evaluate its overall approach to implementation of the Act's 
installation program. Those parts of the certification form that ask 
for information beyond what is required for the self-certification 
would be used to assess the utility of future modifications of HUD's 
installation program.
    The proposed rule would permit a state that complies in significant 
part with the requirements for a state-administered installation 
program, and that is moving toward full compliance, to be conditionally 
accepted as a qualifying program for up to 3 years. These states would 
have to require compliance with the minimum installation standards and 
would have to provide adequate funding and staffing support to their 
programs. Similar to the provision for rejection of state plans (see 24 
CFR 3282.304), in the proposed rule HUD would provide notice to the 
state if HUD finds the state's certification inadequate, and HUD would 
also provide an opportunity to cure the inadequacy. In the event of a 
failure to cure, HUD would notify the state, by using the procedures in 
24 CFR part 3282, subpart D, that the HUD installation program would 
apply in that state, and that the state has a right to a hearing on the 
disapproval.
    Effect of Other State and Local Requirements. The Act provides 
specific criteria only for the installation-standards component of a 
qualifying installation program. In order for a state installation 
program to satisfy the criteria of the Act, the installation standards 
imposed by the state must provide at least the specified level of 
protection to residents of manufactured homes. See section 605(c)(3)(A) 
of the Act (42 U.S.C. 5404(c)(3)(A)). The Act does not establish such 
minimum requirements for the other elements that are required to be in 
a qualifying state program: training and licensing of installers, and 
inspections.
    Further, section 604(d) of the Act (42 U.S.C. 5403(d)) generally 
reserves to each state the right to establish standards for the 
stabilizing and support systems and foundation systems of manufactured 
homes sited in the state. Therefore, state and local requirements that 
are not inconsistent with the minimum installation standards required 
by the Act and HUD's regulations might also be applicable to particular 
installations. For example, a state or local requirement that only 
licensed persons may perform work to connect the home to utilities 
would not be affected by this proposed rule.

V. Specific Issues for Comment

    In addition to commenting on the specific provisions included in 
this proposed rule, the public is invited to provide comment on the 
following questions and any other related matters:
    (1) Limited exemptions from requirements. The proposed rule 
provides that, in limited circumstances, a state may qualify to 
administer its own

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installation program even if the minimum installation standards cannot 
be applied and enforced in all areas of the state. This limited 
exemption is intended to apply only where the state can demonstrate 
that it lacks legal authority, as a matter of federal law, to impose 
the installation requirements, and the proposed rule would require that 
the minimum installation standards and other requirements do apply in 
all other areas of the state. Similarly, the proposed rule provides an 
exception to application of the installation program requirements to 
temporary housing units provided to victims of Presidentially declared 
disasters, when the manufactured home is installed by persons holding 
an emergency contractor license issued by: (1) The state in which the 
home is sited or (2) by the Federal Emergency Management Agency. Should 
the final rule recognize any other exemptions?
    (2) Should the manufacturer be required to provide notice about the 
installation program in the home or in the consumer's manual, in 
addition to the required disclosure on the sales contract?
    (3) Should the final rule set out specific language for the 
installer to use in certifying that the installation of the home 
complies with the requirements of HUD's installation program? If so, 
what information should be included in the installer's certification?
    (4) Should the final rule include any requirements for training 
relating to assuring accessibility and visitability for mobility-
challenged persons?
    (5) Should the final rule include any special method for tracking 
homes that are released from one retailer to another? If so, what 
should be the method?
    (6) The proposed rule includes a requirement that retailers notify 
HUD about new manufactured homes that will be installed in a state 
where HUD administers the installation program. Should the final rule 
include a requirement that, when a manufactured home is sold, retailers 
notify either HUD or the state in which the home is to be installed (if 
that state has a qualifying installation program)?
    (7) For purposes of HUD's enforcement of requirements related to 
installation standards and construction and safety standards, HUD may 
establish a different completion-of-sale date in HUD-administered 
states than would be applicable in non-HUD-administered states. How 
should the completion-of-sale date of a manufactured home be affected 
by the new requirements for installation oversight in: (1) HUD-
administered states? (2) In states with their qualifying installation 
programs? (See 24 CFR 3282.252(b) in HUD's procedural and enforcement 
regulations, and Sec.  3286.117 in this proposed rule.)
    (8) Section 3286.203(b) of this proposed rule lists kinds of work 
or activities for which an installation license would not be required. 
Are there other areas that should be included in any such listing in 
the final rule?
    (9) Should holding an installer's license or certification that is 
issued in a state with a qualifying installation program be recognized 
as a basis for exempting a HUD license applicant from having to meet 
the experience requirements that would otherwise apply?
    (10) Should a professional engineer, a registered architect, or a 
Primary Inspection Agency (PIA) be permitted to conduct an installation 
inspection only if an inspector from the appropriate local jurisdiction 
is not available to perform the inspection? Should any other persons be 
permitted to conduct the installation inspections in HUD-administered 
states, such as qualified inspectors from other states with HUD-
approved installation programs or private third parties experienced in 
residential building construction?
    (11) Disclosures. Section 3286.603(b) in the proposed rule requires 
a retailer disclosure when the initial siting location of the 
manufactured home is not known at the time of sale. Should the final 
rule instead require the retailer to know at the time of sale where the 
home is to be sited? If not, should the final rule include the Sec.  
3286.603(b) disclosure in the list of written disclosures required in 
Sec.  3286.7(b) of the proposed rule? Should the final rule expressly 
require that any or all of these disclosures be signed by the 
purchaser, as evidence that the required disclosure was made?
    (12) Use of the word ``should'' instead of ``must.'' Occasionally 
in the proposed rule, HUD has used the word ``should,'' rather than the 
mandatory ``must.'' This usage has been deliberate and generally 
indicates an area that HUD recognizes as being important to the 
successful installation of a manufactured home, but in which HUD 
believes its authority is limited. Commenters are invited to point out 
instances of where the choice of terminology may be inappropriate.

VI. Findings and Certifications

Regulatory Planning and Review

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

Paperwork Reduction Act

    The proposed information collection requirements contained in this 
rule have been submitted to the OMB for review under the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501-3520). Under this Act, an agency 
may not conduct or sponsor, and a person is not required to respond to, 
a collection of information unless the collection displays a valid 
control number.
    The public reporting burden for this collection of information is 
estimated to include the time for reviewing the instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information.
    The following table provides information on the estimated public 
reporting burden:

----------------------------------------------------------------------------------------------------------------
                                     Number of     Responses per   Total annual      Hours per
     Information collection         respondents     respondent       responses       response       Total hours
----------------------------------------------------------------------------------------------------------------
Sec.   3286.5(d)--Manufacturer's              78            1                 78           20              1,560
 temporary installation
 instructions...................
Sec.   3286.7(a)--Manufacturer's             222          608            135,000            0.17          22,500
 notice in the consumer manual..
Sec.   3286.7(b)--Retailer                 5,151           26            135,000            0.17          22,500
 disclosure before sale (Sec.
 3286.503(b), Sec.
 3286.603(a)(2)(i)).............

[[Page 34481]]

 
Sec.   3286.9(a)--Manufacturer               222          608            135,000            0.17          22,500
 providing information to HUD
 prior to shipment..............
Sec.   3286.9(c)--Manufacturer               222          608            135,000            0.17          22,500
 providing notice to retailer at
 time of shipment...............
Sec.   3286.9(d)--Manufacturer's             222          608            135,000            0.17          22,500
 notice in the installation
 instructions...................
Sec.   3286.13--Retailer                     340           20              6,750            0.17           1,125
 providing information to HUD
 (Sec.   3286.605(a))...........
Sec.   3286.103(a)--Retailer                 340           20              6,750            0.17           1,125
 providing installation
 instructions to the purchaser..
Sec.   3286.103(b)--Retailer                 340           17              5,738            0.17             956
 providing installation
 instructions to the installer..
Sec.   3286.111(a)--Installer              1,021            7              6,750            0.5            3,375
 conduct installation
 certification of installation
 (Sec.   3286.411(a), Sec.
 3286.507(b))...................
Sec.   3286.111(b)--Installer              1,021            7              6,750            0.17           1,125
 providing installation
 certification to retailer and
 purchaser (Sec.   3286.411(a),
 Sec.   3286.507(b))............
Sec.   3286.113(a)--Retailer                 340           20              6,750            0.25           1,688
 providing installation
 information to HUD (Sec.
 3286.605(a))...................
Sec.   3286.207(a)--Installation           1,021            1              1,021            1              1,021
 license application............
Sec.   3286.207(b)--Proof of               1,021            1              1,021            1              1,021
 experience for license.........
Sec.   3286.207(c)--Proof of               1,021            1              1,021            0.25             255
 training for license...........
Sec.   3286.207(d)--Proof of               1,021            1              1,021            0.25             255
 insurance for license..........
Sec.   3286.207(e)--List of                1,021            1              1,021            0.08              85
 states in which the applicant
 holds a license................
Sec.   3286.211(b)--Installation           1,021            1              1,021            1              1,021
 license renewal................
Sec.   3286.303(b)--Trainers                  50            1                 50          104              5,200
 required to keep attendance
 records........................
Sec.   3286.303(c)--Trainers                  50           20              1,021            0.17             170
 required to provide completion
 certificates...................
Sec.   3286.307(a)--Trainer                   50            1                 50            1                 50
 registration application.......
Sec.   3286.307(b)--Trainer                   50            1                 50            1                 50
 proof of experience required...
Sec.   3286.307(c)--Other                     50            0.02               1            0.25            0.25
 trainer qualification required.
Sec.   3286.313--Expiration and               50            1                 50            1                 50
 renewal of trainer
 qualification..................
Sec.   3286.405(b)--Installer              1,021            0.07              68            0.5               34
 notification of inappropriate
 site...........................
Sec.   3286.413--Installer                 1,021            1              1,021           24             24,504
 recordkeeping requirements.....
Sec.   3286.805(a)--State                     35            1                 35            2                 70
 Installation Program
 Certification Form.............
Sec.   3286.807(a)--State                     35            1                 35            1                 35
 Installation Program
 Recertification Form...........
                                 -------------------------------------------------------------------------------
    Totals......................  ..............        2,583            723,073  ..............         157,276
----------------------------------------------------------------------------------------------------------------

    In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments 
from members of the public and affected agencies concerning the 
proposed collection of information to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated 
collection techniques or other forms of information technology, e.g., 
permitting electronic submission of responses.
    Interested persons are invited to submit comments regarding the 
information collection requirements in this proposal. Under the 
provisions of 5 CFR part 1320, OMB is required to make a decision 
concerning this collection of information between 30 and 60 days after 
today's publication date. Therefore, any comment on the information 
collection requirements is best assured of having its full effect if 
OMB receives the comment within 30 days of today's publication. This 
time frame does not affect the deadline for comments to the agency on 
the proposed rule, however. Comments must refer to the proposal by name 
and docket number (FR-4812-P-02) and must be sent to:

HUD Desk Officer, Office of Management and Budget, New Executive Office 
Building, Washington, DC 20503, FAX: (202) 395-6974;
     and
Kathleen O. McDermott, Reports Liaison Officer, Office of the Assistant 
Secretary for Housing--Federal Housing Commissioner, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Room 9116, 
Washington, DC 20410-8000.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) 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 government or the 
private sector within the meaning of the Unfunded Mandates Reform Act 
of 1995.

Environmental Review

    A Finding of No Significant Impact with respect to the environment 
has

[[Page 34482]]

been made in accordance with HUD regulations at 24 CFR part 50, which 
implement section 102(2)(C) of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332(2)(C)). The Finding of No Significant Impact is 
available for public inspection between the hours of 8 a.m. and 5 p.m. 
weekdays in the Regulations Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 10276, Washington, DC 20410-0500.

Executive Order 13132, Federalism

    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.
    HUD is required by statute to establish an installation program 
through the National Manufactured Housing Construction and Safety 
Standards Act of 1974 (42 U.S.C. 5401-5426). However, in accordance 
with the Act and as set forth in Sec.  3286.15 of this proposed rule, 
this Manufactured Home Installation Program is not preemptive.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
agencies to consider the impact of their rules on small entities. When 
the proposed regulation will impose a significant economic impact on a 
substantial number of small entities, the agency must evaluate 
alternatives that would accomplish the objectives of the rule without 
unduly burdening small entities.
    HUD conducted a preliminary analysis of the cost impact on small 
entities for this rule. The completed preliminary analysis concluded 
that the Manufactured Home Installation Program would have a 
significant economic impact on a substantial number of small entities. 
Pursuant to the requirements of the Regulatory Flexibility Act (5 U.S.C 
603), HUD performed an Initial Regulatory Flexibility Analysis (IRFA) 
that evaluates the potential economic impact on the small entities the 
regulations will affect, including: manufacturers, retailers, 
installers, and trainers. The IRFA also evaluates the differences in 
cost depending whether the home is single-section or multi-section. A 
summary of the IRFA follows. As noted above in the preamble, on 
December 27, 2000, the National Manufactured Housing Construction and 
Safety Standards Act of 1974 (42 U.S.C 5401-5426) (the Act) was amended 
by the Manufactured Housing Improvement Act of 2000, which, among other 
things, required the Secretary to establish an Installation Program for 
the enforcement of the Model Manufactured Home Installation Standards 
in each state that does not have an installation program established by 
state law and approved by HUD.
    The rule would regulate establishments primarily engaged in making 
manufactured homes (NAICS 321991), the sale or lease of manufactured 
homes (NAICS 453930), the installation of manufactured homes (NAICS 
238990), the training of installers (NAICS 611519), and states 
administering their own installation programs. The following table 
summarizes the number of regulated entities and the number of small 
entities that the proposed rule would affect:

----------------------------------------------------------------------------------------------------------------
                                                    Number of                                      Percentage of
          NAICS code            Description of      regulated        SBA size        Number of       regulated
                                primary entity      entities         standard     small entities     entities
----------------------------------------------------------------------------------------------------------------
                                All states--Subpart A is applicable in all states
----------------------------------------------------------------------------------------------------------------
321991.......................  Manufacturers...             222  500 emp........             198              89
453930.......................  Retailers.......           5,151  500 emp........           5,151             100
----------------------------------------------------------------------------------------------------------------
            States without installation programs--Subparts B through H are applicable in these states
----------------------------------------------------------------------------------------------------------------
453930.......................  Retailers.......             340  500 emp........             340             100
238990.......................  Installers......           1,021  $12 mil........           1,021             100
611519.......................  Trainers........              50  $6 mil.........              50             100
----------------------------------------------------------------------------------------------------------------
                   States with installation programs--Subpart I is applicable in these states
----------------------------------------------------------------------------------------------------------------
                               States..........              35  50,000 pop.....               0               0
----------------------------------------------------------------------------------------------------------------

    Of the 222 firms included under the NAICS 321991 definition, 198 
are small manufacturers that fall below the small business threshold of 
500 employees. Of the remaining firms involved in the manufactured 
housing industry regulated by this proposed rule included under NAICS 
453930, NAICS 238990, and NAICS 611519 definitions, none exceed the 
small business thresholds established for the category. States are not 
considered small entities since they exceed the small jurisdiction 
threshold population of 50,000. Therefore, the rule would affect a 
substantial number of small entities.
    The following table summarizes the cost impacts associated with the 
proposed rule:

Current manufactured home production--Total.................         \1\
                                                                $135,000
Current manufactured home production--HUD-administered         \1\ 6,750
 states.....................................................
Number of manufacturers--Total..............................         222
Estimated number of retailers--Total........................       5,151
Estimated number of retailers--HUD-administered states......         340
Estimated number of installers--HUD-administered states.....       1,021
Estimated number of trainers--HUD-administered states.......          50
Estimated number of HUD-administered states.................          15

[[Page 34483]]

 
Total increase for a single wide--All states................          17
Total increase for a double wide--All states................          17
Total increase for a single wide--HUD-administered states...         974
Total increase for a double wide--HUD-administered states...       1,023
Total compliance cost per manufacturer--All states..........       6,672
Total compliance cost per retailer--All states..............         186
Total compliance cost per retailer--HUD-administered states.         514
Total compliance cost per installer--HUD-administered states       6,371
Total compliance cost per trainer--HUD-administered states..       2,045
Total compliance cost per state--HUD-administered states....         120
Total estimated economic impact.............................         \2\
                                                              9,006,000
 
\1\ Consisting of about 30 percent single-section homes and 70 percent
  multi-section homes.
\2\ The paperwork component, associated with the reporting and
  recordkeeping requirements, described above in the Paperwork Reduction
  Act section of the preamble, accounts for $3.31 million of the total
  estimated economic impact.

    The overall cost impact for a single-section home is determined to 
be approximately $974 per home, and the cost impact for a multi-section 
home is determined to be about $1,023 per home in states where HUD 
administers the installation program. The cost impact for single-
section and multi-section homes is determined to be approximately $17 
per home in states where HUD does not administer the installation 
program. Because state-administered installation programs would be 
funded through state mechanisms, they are not included in this 
analysis. State-administered installation programs would also have to 
encompass those elements expressly required by the Act to be part of a 
qualifying program, i.e., standards that equal or exceed the level of 
protection provided by HUD's model standards, training and licensing of 
installers, and inspection of installations.
    Current manufactured home production is approximately 135,000 homes 
with approximately 6,750 homes in states where HUD will administer the 
installation program. Of the total production, approximately 30 percent 
consists of single-section homes and 70 percent consists of multi-
section homes. The combined cost impact for all homes in all states is 
approximately $9 million annually.
    Based on a current installation cost of about $5,000 for a single-
wide home, the $974 increase in states where HUD would administer the 
installation program would represent an increase of approximately 20 
percent from the current cost of installing a single-section home. 
Similarly, the current cost of installing a multi-section home is about 
$8,000. Therefore, the cost impact of $1,023 per multi-section home in 
states where HUD would administer the installation program would 
represent an increase of about 13 percent from the current cost. These 
estimated costs and cost impacts represent a significant economic 
effect on an industry-wide, per-home basis. The increase in total cost 
associated with this proposed rule would have a significant economic 
impact on a substantial number of small entities.
    The Department is unaware of any federal rules that conflict with 
the proposed rule. However, the proposed rule requires duplicative 
information to that required in 24 CFR 3282.552, which requires 
manufacturers to submit monthly label reports to their Production 
Inspection Primary Inspection Agency (IPIA). 24 CFR 3282.553 requires 
each IPIA to provide the information in the monthly label reports to 
the Department. Proposed Sec.  3286.9 requires the manufacturer to 
provide similar information to the Department for the purposes of 
installation.
    In this rule, the Department combined the reporting requirements in 
24 CFR 3282.552 and 3286.9 by revising form HUD-302 so that the 
manufacturer must complete only one form. The proposed rule seeks 
specific comments regarding this issue.
    In drafting the proposed rule, HUD considered numerous alternatives 
to reduce the economic impacts on small entities. Below are the 
significant alternatives that were considered:
    Section 3286.5(d) Alternative Considered--The Department considered 
eliminating this requirement. However, the importance of assuring that 
the temporary supports will be sufficient to prevent the home and its 
transportable sections from being brought out of conformance with the 
Construction and Safety Standards in 24 CFR part 3280 prior to sale is 
a necessary consumer protection.
    Section 3286.7(a) Alternative Considered--The Department considered 
eliminating this requirement. However, the importance of consumer 
protection with regard to reinstalled homes justifies the costs 
associated with this section.
    Section 3286.7(b) Alternative Considered--The Department considered 
eliminating this requirement. However, the importance of consumer 
protection during the purchase or lease of a manufactured home 
justifies the costs associated with this section.
    Section 3286.9(a) Alternative Considered--The Department considered 
requiring manufacturers to provide the initial tracking information 
about homes installed in only those states in which HUD administers the 
installation program. Such a requirement would reduce the reporting 
burden on the manufacturers; however, in many instances, manufacturers 
do not know the destination or address of the home at the time of 
shipment. Therefore, it is not practical to collect information on 
homes being installed in HUD-administered states only. In addition, 
this information is very similar to that information required in 24 CFR 
3282.552, and the OMB-approved form HUD-302 has been revised to collect 
the information using a single form.
    Section 3286.9(c) Alternative Considered--The Department considered 
requiring manufacturers to provide notice to the retailers only for 
those homes installed in states where HUD administers the installation 
program. Such a requirement would reduce the reporting burden on the 
manufacturer; however, in many instances, manufacturers do not know the 
destination or address of the home at the time of shipment. Therefore, 
it is not practical to provide notices on homes being installed in HUD-
administered states only.
    Section 3286.9(d) Alternative Considered--The Department considered 
eliminating this requirement. However, the importance of consumer 
protection with regard to the installation of manufactured homes 
justifies the small costs associated with this section.
    Section 3286.13 Alternative Considered--The Department considered 
requiring the retailer or distributor to provide HUD with tracking 
information for all homes at the time that a purchaser or lessor enters 
into a contract to purchase or lease a

[[Page 34484]]

manufactured home. As proposed, the rule would significantly reduce the 
reporting burden for retailers and distributors by requiring them to 
provide tracking information about homes that are to be installed only 
in HUD-administered states, and by requiring them to keep all sales 
records for 5 years.
    Section 3286.103(a) Alternative Considered--The Department 
considered eliminating this requirement. However, the importance of 
consumer protection with regard to the installation of manufactured 
homes justifies the costs associated with this section.
    Section 3286.111(a) Alternative Considered--The Department 
considered using contractors to inspect and certify that the 
installation of the home has been completed correctly. This alternative 
model would be similar to that of a local building department that 
monitors the construction of buildings. However, this alternative 
method would have a substantially larger economic impact on small 
entities than the proposed requirement. The proposed requirements in 
Sec.  3286.111(a) models the requirements in 24 CFR 3282.362(c)(2)(i) 
that requires the home manufacturer to certify that the home has been 
built in conformance with the Construction and Safety Standards.
    Section 3286.113(a) Alternative Considered--The Department 
considered eliminating this requirement. However, the Department 
determined that this requirement is necessary to keep necessary records 
regarding the installation of the home. This section will encourage 
retailers to use competent installers and keep the retailer part of the 
installation process. Without this requirement, the retailer would be 
able to sell homes and take fees for the installation of the homes 
without being held accountable by the regulations for poor workmanship 
of the installation.
    Section 3286.211 Alternative Considered--Installers are required to 
renew their licenses every 3 years. This schedule was chosen to reduce 
the burden of yearly renewals and to ensure that installers will 
receive timely training on updates to the installation requirements.
    Subpart D Alternatives Considered--Subpart D establishes the 
minimum requirements for a person to provide installation training. The 
installation training is required for manufactured home installers who 
want to be licensed in accordance with the HUD-administered 
installation program.
    This Subpart requires qualified trainers to:

--Adequately address the curriculum and instruction time requirements
--Maintain attendance records
--Provide certificates of completion
--Maintain records for 5 years
--Meet minimum experience prerequisites
--Certify that their curriculum meets HUD requirements
--Apply to HUD for qualification

    ?>The Department considered requiring trainers to obtain training 
from the Department prior to qualification; however, this requirement 
would have an increased cost to the trainer and the federal government. 
In addition, this requirement may limit the number of eligible trainers 
since all trainers would have to complete training prior to training 
installers.
    Notwithstanding HUD's determination that this rule would 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 and those of 
federal statutes. The complete IRFA is available for downloading at 
http://www.regulations.gov and for public inspection between the hours 
of 8 a.m. and 5 p.m. weekdays in the Regulations Division, Office of 
General Counsel, Department of Housing and Urban Development, 451 
Seventh Street, SW., Room 10276, Washington, DC 20410-0500.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number for Manufactured 
Housing is 14.171.

List of Subjects in 24 CFR Part 3286

    Administrative practice and procedure, Consumer protection, 
Intergovernmental relations, Manufactured homes, Reporting and 
recordkeeping requirements.

    Accordingly, for the reasons stated in the preamble, HUD proposes 
to add a new part 3286 in chapter XX of Title 24 of the Code of Federal 
Regulations to read as follows:

PART 3286--MANUFACTURED HOME INSTALLATION PROGRAM

Subpart A--Generally Applicable Provisions and Requirements
Sec.
3286.1 Purpose.
3286.2 Applicability.
3286.3 Definitions.
3286.5 Overview of installation program.
3286.7 Consumer information.
3286.9 Manufacturer shipment responsibilities.
3286.11 Temporary storage of units.
3286.13 Tracking of homes sold by retailer or distributor.
3286.15 Waiver of rights invalid.
3286.17 Consultation with the Manufactured Housing Consensus 
Committee
Subpart B--Certification of Installation in HUD-Administered States
3286.101 Purpose.
3286.103 DAPIA-approved installation instructions.
3286.105 Requirement for installer licensing.
3286.107 Installation in accordance with standards.
3286.109 Inspection requirements--generally.
3286.111 Installer certification of installation.
3286.113 Information provided by retailer.
3286.115 Date of installation.
3286.117 Completion of sale date.
Subpart C--Installer Licensing in HUD-Administered States
3286.201 Purpose.
3286.203 Installation license required.
3286.205 Prerequisites for installation license.
3286.207 Process for obtaining installation license.
3286.209 Denial, suspension, or revocation of installation license.
3286.211 Expiration and renewal of installation licenses.
Subpart D--Training of Installers in HUD-Administered States
3286.301 Purpose.
3286.303 Responsibilities of qualified trainers.
3286.305 Installation trainer criteria.
3286.307 Process for obtaining trainer's qualification.
3286.308 Training curriculum.
3286.309 Continuing education--trainers and curriculum.
3286.311 Suspension or revocation of trainer's qualification.
3286.313 Expiration and renewal of trainer qualification.
Subpart E--Installer Responsibilities of Installation in HUD-
Administered States
3286.401 Purpose.
3286.403 Licensing requirements.
3286.405 Site suitability.
3286.407 Supervising work of crew.
3286.409 Obtaining inspection.
3286.411 Certifying installation.
3286.413 Recordkeeping.
Subpart F--Inspection of Installations in HUD-Administered States
3286.501 Purpose.
3286.503 Inspection required.
3286.505 Minimum elements to be inspected.
3286.507 Verifying installation.
3286.509 Reinspection upon failure to pass.
3286.511 Inspector qualifications.
Subpart G--Retailer Responsibilities in HUD-Administered States
3286.601 Purpose.
3286.603 At or before sale.

[[Page 34485]]

3286.605 After sale.
3286.607 Recordkeeping.
Subpart H--Oversight and Enforcement in HUD-Administered States
3286.701 Purpose.
3286.703 Failure to comply.
3286.705 Applicability of dispute resolution program.
Subpart I--State Programs
3286.801 Purpose.
3286.803 State-qualifying installation programs.
3286.805 Procedures for identification as qualified installation 
program.
3286.807 Recertification required.
3286.809 Withdrawal of qualifying installation program status.
3286.811 Effect on other manufactured home program requirements.
3286.813 Inclusion in state plan.

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

Subpart A--Generally Applicable Provisions and Requirements


Sec.  3286.1  Purpose.

    The purpose of this part is to establish the regulations that are 
applicable to HUD's administration of an installation program that 
meets the requirements of sections 602 (42 U.S.C. 5401) and 605 (42 
U.S.C. 5404) of the National Manufactured Housing Construction and 
Safety Standards Act of 1974. The purpose of this subpart A is to 
establish the regulations that are applicable with respect to all 
manufactured homes before they are sold to a purchaser. The 
requirements in subpart A apply regardless of whether the actual 
installation of a manufactured home is regulated by HUD or a state.


Sec.  3286.2  Applicability.

    (a) All states. The requirements in subpart A are applicable in all 
states.
    (b) States without installation programs. The requirements in 
subparts B through H of this part are applicable only in those states 
where HUD is administering an installation program in accordance with 
this part.
    (c) States with installation programs. The requirements in subpart 
I of this part are applicable to only those states that want to 
administer their own installation programs in lieu of the installation 
program administered by HUD in accordance with this part.
    (d) Exclusion. None of the requirements of this part apply to:
    (1) Any structure that a manufacturer certifies as being excluded 
from the coverage of the Act in accordance with Sec.  3282.12 of this 
chapter;
    (2) Temporary housing units provided under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) 
to victims of Presidentially declared disasters, when the manufactured 
home is installed by persons holding an emergency contractor license 
issued by the state in which the home is sited or by the Federal 
Emergency Management Agency; or
    (3) Any manufactured home after the initial installation of the 
home following the first purchase of the home in good faith for 
purposes other than resale.


Sec.  3286.3  Definitions.

    The following definitions apply in this part, except as otherwise 
noted in the regulations in this part:
    Act means the National Manufactured Housing Construction and Safety 
Standards Act of 1974, 42 U.S.C. 5401-5425.
    Certification of installation means the certification, provided by 
an installer under the HUD-administered installation program in 
accordance with Sec.  3282.111, that indicates that the manufactured 
home has been installed in compliance with the appropriate design and 
instructions and has been inspected as required by this part.
    Defect means any defect in the performance, construction, 
components, or material of a manufactured home that renders the home or 
any part thereof not fit for the ordinary use for which it was 
intended.
    Design means drawings, specifications, sketches and the related 
engineering calculations, tests, and data in support of the 
configurations, structures, and systems to be incorporated in 
manufactured homes manufactured in a plant.
    Design Approval Primary Inspection Agency (DAPIA) means a state 
agency or private organization that has been accepted by the Secretary, 
in accordance with the requirement of subpart H of part 3282, to 
evaluate and either approve or disapprove manufactured home designs and 
quality control procedures.
    Distributor means any person engaged in the sale and distribution 
of manufactured homes for resale.
    HUD means the United States Department of Housing and Urban 
Development.
    HUD-administered installation program means the installation 
program to be administered by HUD, in accordance with this part, in 
those states that do not have a qualifying installation program.
    Installation means work done to stabilize, support, or anchor a 
manufactured home or to join sections of a multi-section manufactured 
home, when any such work is governed by the federal installation 
standards in part 3285 of this chapter or by state installation 
standards that are certified as part of a qualifying installation 
program.
    Installation instructions means a manufacturer's DAPIA-approved set 
of specifications to assure that a manufactured home is set up in 
accordance with the applicable installation standards, as are required 
under part 3285 of this chapter.
    Installation standards means the standards established by HUD in 24 
CFR part 3285, or any set of state standards that the Secretary has 
determined provide protection to the residents of manufactured homes 
that equals or exceeds the protection provided by the standards in 24 
CFR part 3285.
    Installer means the person who is retained to engage in, or who 
engages in, the business of directing, supervising, controlling, or 
correcting the initial installation of a manufactured home, as governed 
by part 3285 of this chapter.
    Installer's license or installation license means the evidence that 
an installer has met the requirements for installing manufactured homes 
under the HUD-administered installation program. The term does not 
incorporate a state-issued installation license or certification, 
except to the extent provided in this part. The term does not imply 
that HUD approves or recommends an installer or warrants the work of an 
installer, and should not be used in any way that indicates HUD 
approval in violation of 18 U.S.C. 709.
    Lessee means any person who leases a manufactured home prior to the 
first purchase of the home in good faith for purposes other than 
resale.
    Manufactured home means a structure, transportable in one or more 
sections, which, in the traveling mode, is 8 body feet or more in width 
or 40 body feet or more in length, or, when erected on site, is 320 or 
more square feet, and which is built on a permanent chassis and 
designed to be used as a dwelling with or without a permanent 
foundation when connected to the required utilities, and includes the 
plumbing, heating, air-conditioning, and electrical systems contained 
therein. The term also includes any structure that meets all the 
requirements of this paragraph except the size requirements and with 
respect to which the manufacturer voluntarily files a certification 
pursuant to Sec.  3282.13 of this chapter and complies with the 
installation standards established under part 3285 and the construction 
and safety standards in part 3280 of this chapter, but such term does 
not include any self-propelled recreational vehicle.

[[Page 34486]]

Calculations used to determine the number of square feet in a structure 
will include the total of square feet for each transportable section 
comprising the completed structure and will be based on the structure's 
exterior dimensions measured at the largest horizontal projections when 
erected on site. These dimensions will include all expandable rooms, 
cabinets, and other projections containing interior space, but do not 
include bay windows. Nothing in this definition should be interpreted 
to mean that a manufactured home necessarily meets the requirements of 
HUD's Minimum Property Standards (HUD Handbook 4900.1) or that it is 
automatically eligible for financing under 12 U.S.C. 1709(b).
    Manufactured Housing Consensus Committee or MHCC means the 
consensus committee established pursuant to section 604(a)(3) of the 
Act, 42 U.S.C. 5403(a)(3).
    Manufacturer means any person engaged in manufacturing or 
assembling manufactured homes, including any person engaged in 
importing manufactured homes for resale.
    Manufacturer's certification label means the permanent label that 
is required by Sec.  3280.11 of this chapter to be affixed to each 
transportable section of each manufactured home.
    Person includes, unless the context indicates otherwise, 
corporations, companies, associations, firms, partnerships, societies, 
and joint stock companies, as well as individuals, but does not include 
any agency of government or tribal government entity.
    Professional engineer or registered architect means an individual 
or entity licensed to practice engineering or architecture in a state 
and subject to all laws and limitations imposed by the state agency 
that regulates the applicable profession, and who is engaged in the 
professional practice of rendering service or creative work requiring 
education, training, and experience in architecture or engineering 
sciences and the application of special knowledge of the mathematical, 
physical, and engineering sciences in such professional or creative 
work as consultation, investigation, evaluation, planning or design, 
and supervision of construction for the purpose of securing compliance 
with specifications and design for any such work.
    Purchaser means the first person purchasing a manufactured home in 
good faith for purposes other than resale.
    Qualified trainer means a person who has met the requirements 
established in subpart D of this part to be recognized as qualified to 
provide training to installers for purposes of the HUD-administered 
installation program.
    Qualifying installation program means an installation program that 
a state certifies, in accordance with the requirements set out in 
subpart I of this part, as meeting the requirements of 42 U.S.C. 
5404(c)(3).
    Retailer means any person engaged in the sale, leasing, or 
distribution of new manufactured homes primarily to persons who in good 
faith purchase or lease a manufactured home for purposes other than 
resale, and, for purposes of this part, the term includes any 
manufacturer or distributor that sells a manufactured home directly to 
a purchaser.
    Secretary means the Secretary of Housing and Urban Development.
    Setup means any assembly or installation of a manufactured home on-
site that includes aspects of work that are governed by parts 3280 or 
3285 of this chapter.
    State includes each of the 50 states, the District of Columbia, the 
Commonwealth of Puerto Rico, Guam, the Virgin Islands, and American 
Samoa.


Sec.  3286.5  Overview of installation program.

    (a) Tracking homes. Each manufactured home will be tracked from its 
initial shipment to at least its sale to a purchaser.
    (b) State installation programs. States that have qualifying 
programs, as established through the procedures set out in subpart I of 
this part, will administer their own programs, except for generally 
applicable requirements in this subpart A.
    (c) Installer requirements. Installers in states where HUD 
administers an installation program under this part will be required to 
meet licensing, training, and insurance requirements established in 
subparts C, D, and E of this part. Licensed installers in the HUD-
administered program will self-certify their installations of 
manufactured homes to be in compliance with the federal installation 
standards in part 3285 of this chapter. In order for such an installer 
to self-certify compliance with the installation standards, the 
installer will have to assure that acceptable inspections, as required 
in subpart F of this part, are performed. Additional tracking 
information on the shipment and installation of these homes will be 
provided to HUD by the manufacturers and retailers.
    (d) Manufacturer and retailer requirements. (1) Manufacturers and 
retailers are responsible for compliance of the home with the 
construction and safety standards in part 3280 of this chapter, in 
accordance with the Act and applicable regulations. Manufacturers and 
retailers must also comply with applicable requirements in this part 
relating to the installation of the manufactured home.
    (2) In the installation instructions required pursuant to part 3285 
of this chapter, the manufacturer must include instructions for 
supporting the manufactured home temporarily, pending the first siting 
of the home for occupancy. The instructions must be adequate to assure 
that the temporary supports used will be sufficient to prevent the home 
and its transportable sections from being brought out of conformance 
with the construction and safety standards in part 3280 of this chapter 
if the home or its sections is stored on such supports for more than 30 
days.
    (e) HUD oversight. The Secretary may take such actions as are 
authorized by the Act to oversee the system established by the 
regulations in this part, as the Secretary deems appropriate.


Sec.  3286.7  Consumer information.

    (a) Manufacturer's consumer manual. In each consumer manual 
provided by a manufacturer as required in Sec.  3282.207 of this 
chapter, the manufacturer must include a recommendation that any home 
that has been reinstalled after its original installation should be 
inspected after it is set up in order to assure that it has not been 
damaged and is properly installed.
    (b) Retailer disclosures before sale or lease. Before a purchaser 
or lessee buys or leases a manufactured home, the retailer must provide 
the purchaser or lessee with a consumer disclosure. This disclosure may 
be in a separate document from the sales or leasing contract or may be 
incorporated, in whole or in part, clearly in a separate section on 
consumer installation information at the top of the sales or lease 
contract. The disclosure must include the following information, as 
applicable:
    (1) When the home is to be sited in a state that administers its 
own qualifying installation program, the consumer disclosure must 
clearly state that the home will be required to comply with state 
requirements for the installation of the home;
    (2) When the home is to be sited in a state that does not 
administer its own qualifying installation program, the consumer 
disclosure must clearly state that the home will be required to comply 
with federal requirements for

[[Page 34487]]

the installation of the home, including installation in accordance with 
federal installation standards set forth in 24 CFR part 3285 and 
certification by a licensed installer of installation work, regardless 
of whether the work is performed by the homeowner or anyone else, and 
when certification includes inspection by an appropriate person;
    (3) For all homes, the home might also be required to comply with 
additional local requirements for its installation;
    (4) For all homes, additional information about the requirements 
disclosed under paragraphs (b)(1) through (b)(4) of this section is 
available from the retailer and, in the case of the federal 
requirements, is available in part 3286 of Title 24 of the Code of 
Federal Regulations and from the U.S. Department of Housing and Urban 
Development (HUD);
    (5) For all homes, compliance with any additional federal, state, 
and local requirements, including a requirement for inspection of the 
installation of the home, may involve additional costs to the purchaser 
or lessee; and
    (6) For all homes, a recommendation that any home that has been 
reinstalled after its original installation should be professionally 
inspected after it is set up, in order to assure that it has not been 
damaged in transit and is properly installed.


Sec.  3286.9  Manufacturer shipment responsibilities.

    (a) Providing information to HUD. Except as provided in paragraph 
(b) of this section, at or before the time that each manufactured home 
is shipped by a manufacturer, the manufacturer must provide HUD with 
information, as applicable, about:
    (1) The serial number and manufacturer's certification label number 
of the home;
    (2) The manufacturer of the home;
    (3) The name and address of the retailer or distributor that has 
arranged for the home to be shipped, and the retailer's identification 
number; and
    (4) Where different from the retailer's or distributor's address, 
the location to which the home is being shipped and the purchaser's 
name.
    (b) Method of providing information. (1) The manufacturer must 
provide this information by either:
    (i) Entering the data into an Internet-based tracking system 
established by HUD; or
    (ii) Providing a copy of the information to HUD by facsimile, e-
mail, first-class, or overnight delivery.
    (2) If the information is provided to HUD by facsimile, e-mail, 
first-class, or overnight delivery, the manufacturer must send the 
information to HUD no later than 10 business days after the date the 
manufactured home is shipped by the manufacturer. The information must 
be sent to: Administrator, Office of Manufactured Housing Programs, 
HUD, 451 Seventh Street, SW., Room 9164, Washington, DC 20410-8000, or 
to an alternative address, fax number, or e-mail address obtained by 
calling the Office of Manufactured Housing Programs. For convenience 
only, the URL of the Web site is www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm and the toll-free telephone number to contact the Office of 
Manufactured Housing Programs is (800) 927-2891, ext. 57.
    (c) Shipment of home to retailer or distributor. At the time the 
manufactured home is shipped to a retailer or distributor, the 
manufacturer must provide notice to the retailer or distributor that 
tracking information for the home is being provided to HUD, and the 
information must be updated by the retailer or distributor in 
accordance with the requirements in Sec.  3286.13. Such notice must 
include at least all of the information required in paragraph (a) of 
this section. The manufacturer is also encouraged to provide notice to 
the retailer that reminds the retailer of its other responsibilities 
under this part.
    (d) Manufacturer's installation instructions. The manufacturer is 
required to include in its installation instructions for the home a 
notice that the home is required to be installed in accordance with:
    (1) An installation design and instructions that have been reviewed 
and approved by the manufacturer and either its DAPIA or the Secretary; 
or
    (2) An installation design and instructions that have been 
certified by a professional engineer or registered architect as 
providing a level of protection for occupants of the home that equals 
or exceeds the protection provided by the federal installation 
standards in part 3285 of this chapter.


Sec.  3286.11  Temporary storage of units.

    Pursuant to Sec.  3286.5(d), the manufacturer is required to 
provide instructions for the temporary support of its manufactured 
homes or sections of homes. Every manufacturer, distributor, and 
retailer is required to support each transportable section of a 
manufactured home that is temporarily or permanently located on a site 
used by the manufacturer, distributor, or retailer in accordance with 
the manufacturer's instructions.


Sec.  3286.13  Tracking of homes sold by retailer or distributor.

    (a) Record retention requirements in all states. The retailer or 
distributor must maintain a copy of a sales or lease record for each 
home sold or leased to a purchaser for 5 years from the date of sale 
under Sec.  3286.117(a). The sales or lease record must contain the 
following information:
    (1) The home's serial number and manufacturer's certification label 
number;
    (2) The name and address of the retailer or distributor that is 
selling or leasing the home, and the retailer's identification number;
    (3) The state and address where the home is to be sited, and, if 
known, the name of the local jurisdiction;
    (4) The name of the purchaser or lessee of the home.
    (b) Tracking information in HUD-administered states. At the time 
that a purchaser or lessor enters into a contract to purchase or lease 
a manufactured home to be sited in a state in which HUD administers its 
installation program, the retailer or distributor of the home must 
provide HUD with the information set forth in paragraph (a) of this 
section.
    (c) Method of providing information. (1) When required, the 
retailer or distributor must provide the information in paragraph (a) 
of this section by either:
    (i) Entering the data into an Internet-based tracking system 
established by HUD; or
    (ii) Providing a copy of the information to HUD by facsimile, e-
mail, first-class, or overnight delivery.
    (2) If the information is provided to HUD by facsimile, e-mail, 
first-class, or overnight delivery, the retailer or distributor must 
send the information to: Administrator, Office of Manufactured Housing 
Programs, HUD, 451 Seventh Street, SW., Room 9164, Washington, DC 
20410-8000, or to a fax number or e-mail address obtained by calling 
the Office of Manufactured Housing Programs. For convenience only, the 
current URL of the Web site is www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm and the current toll-free telephone number to contact the 
Office of Manufactured Housing Programs is (800) 927-2891, ext. 57.
    (d) Compliance with HUD-administered installation program. A 
retailer or distributor that sells or leases a home to be sited in a 
state in which HUD administers an installation program under this part 
must also comply with the applicable requirements set forth in subparts 
B through G of this part. Any person can

[[Page 34488]]

identify the states in which HUD administers an installation program 
under this part by referring to a list on a website maintained by HUD 
or by calling HUD. For convenience only, the current URL of the Web 
site is www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm and the current 
toll-free telephone number to contact the HUD Office of Manufactured 
Housing Programs is (800) 927-2891, ext. 57.


Sec.  3286.15  Waiver of rights invalid.

    Any provision of a contract or agreement entered into by a 
manufactured home purchaser that seeks to waive any recourse to either 
the HUD installation program or a state-qualifying installation program 
is void.


Sec.  3286.17  Consultation with the Manufactured Housing Consensus 
Committee.

    The Secretary will seek input from the MHCC when revising the 
installation program regulations in this part 3286. Before publication 
of a proposed rule to revise these regulations, the Secretary will 
provide the MHCC with an opportunity to comment on such revision. The 
MHCC may send to the Secretary any of the MHCC's own recommendations to 
adopt new installation program regulations or to modify or repeal any 
of the regulations in this part. Along with each recommendation, the 
MHCC must set forth pertinent data and arguments in support of the 
action sought. The Secretary will either: accept or modify the 
recommendation and publish it for public comment in accordance with 
section 553 of the Administrative Procedures Act (5 U.S.C. 553), along 
with an explanation of the reasons for any such modification; or reject 
the recommendation entirely, and provide to the MHCC a written 
explanation of the reasons for the rejection. This section does not 
supercede section 605 of the National Manufactured Housing Construction 
and Safety Standards Act (42 U.S.C. 5404).

Subpart B--Certification of Installation in HUD-Administered States


Sec.  3286.101  Purpose.

    The purpose of this subpart B is to establish the systems for 
tracking and certifying a manufactured home installation that is to be 
completed in accordance with the HUD-administered installation program.


Sec.  3286.103  DAPIA-approved installation instructions.

    (a) Providing instructions to purchaser. For each manufactured home 
sold to a purchaser, the retailer must ensure that the purchaser is 
provided with a copy of either:
    (1) The manufacturer's DAPIA-approved installation instructions for 
the home; or
    (2) If the installation requires a design that is different from 
that provided by the manufacturer, an installation design and 
instructions that do not take the home out of compliance with the 
construction and safety standards in part 3280 of this chapter and that 
have been reviewed and certified by a professional engineer or 
registered architect as providing a level of protection for occupants 
of the home that equals or exceeds the protection provided by the 
federal installation standards in part 3285 of this chapter.
    (b) Providing instructions to installer. When the retailer agrees 
to provide any set-up in connection with the sale of the home, the 
retailer must provide a copy of the same DAPIA-approved installation 
instructions or, as applicable, installation design and instructions to 
each company or, in the case of sole proprietor, to each individual who 
performs set-up or installation work on the home.


Sec.  3286.105  Requirement for installer licensing.

    The installer that installs a manufactured home in a state that 
does not have a qualifying installation program must be certified or 
licensed, in accordance with the requirements in subpart C of this 
part.


Sec.  3286.107  Installation in accordance with standards.

    (a) Compliance with installation standards. (1) A manufactured home 
that is subject to the requirements of this subpart B must be installed 
in accordance with, at a minimum, the installation standards set forth 
in part 3285 of this chapter. If the manufacturer's installation 
instructions do not comply with such installation standards, the 
manufacturer is responsible for any aspect of installation that is 
completed in accordance with its instructions and that does not comply 
with the installation standards.
    (2) For purposes of determining installer compliance with this 
paragraph (a), an installer will be deemed to have installed a 
manufactured home as required if the home is installed in accordance 
with installation design and instructions that are:
    (i) Provided by the manufacturer and are either:
    (A) Approved by the DAPIA; or
    (B) Determined by the Secretary to provide protection to residents 
of manufactured homes that equals or exceeds the protection provided by 
the HUD federal installation standards in part 3285 of this chapter; or
    (ii) Certified by a professional engineer or registered architect 
as providing a level of protection for occupants of the home that 
equals or exceeds the protection provided by the federal installation 
standards in part 3285 of this chapter.
    (3) All installation work must be in conformance with accepted 
practices to ensure durable, livable, and safe housing, and must 
demonstrate acceptable workmanship reflecting, at a minimum, journeyman 
quality of work of the various trades.
    (b) Secretarial approval of manufacturer's designs. A manufacturer 
that seeks a Secretarial determination under paragraph (a)(2)(i)(B) of 
this section that its installation designs and instructions provide 
protection to residents of manufactured homes that equals or exceeds 
the protection provided by the HUD federal installation standards in 
part 3285 of this chapter must send the request for such determination 
and a copy of the applicable designs and instructions to: 
Administrator, Office of Manufactured Housing Programs, HUD, 451 
Seventh Street, SW., Room 9164, Washington, DC 20410-8000, or to a fax 
number or e-mail address obtained by calling the Office of Manufactured 
Housing Programs.
    (c) Compliance with construction and safety standards. The 
installer must not take the home out of compliance with the 
construction and safety standards applicable under part 3280 of this 
chapter.
    (d) Homeowner installations. The purchaser of a home sited in a 
state in which HUD administers the installation program may perform 
installation work on the home that is in accordance with paragraph (a) 
of this section, provided that the work is inspected as required under 
this part and a licensed installer certifies the installation in 
accordance with Sec.  3286.111.
    (e) Compliance with construction and safety standards. This rule 
does not alter or affect the requirements of the Act concerning 
compliance with the construction and safety standards, and the 
implementing regulations in parts 3280 and 3282 of this chapter, which 
apply regardless of where the work is completed.


Sec.  3286.109  Inspection requirements-- generally.

    The installer or the retailer must arrange for the inspection of 
the installation work on any manufactured home that is sited in a state 
without a

[[Page 34489]]

qualifying installation program. Before the sale of the home is 
considered complete, the installer must certify, and the inspector must 
verify, the home as having been installed in conformance with the 
requirements of Sec.  3286.107(a). The requirements for installer 
certification are set out in subpart E of this part.


Sec.  3286.111  Installer certification of installation.

    (a) Certification required. When the installation work is complete, 
an installer must certify that:
    (1) The manufactured home has been installed in compliance with the 
manufacturer's installation instructions or with an installation design 
and instructions that have been certified by a professional engineer or 
registered architect as providing a level of protection for occupants 
of the home that equals or exceeds the protection provided by the 
federal installation standards in part 3285 of this chapter; and
    (2) The installation of the home has been inspected as required by 
Sec.  3286.503 and an inspector has verified the installation as 
meeting the requirements of this part.
    (b) Recipients of certification. The installer must provide a 
signed copy of its certification to the retailer that contracted with 
the purchaser for the sale of the home, and to the purchaser or other 
person with whom the installer contracted for the installation work.


Sec.  3286.113  Information provided by retailer.

    (a) Installation information required. In addition to the 
information required to be provided by all retailers or distributors by 
Sec.  3286.13 and upon receiving the installer's original certification 
of installation pursuant to Sec.  3286.111, the retailer must provide 
HUD with:
    (1) The name, address, and telephone number of the licensed 
installer;
    (2) The date of installer certification of completion of the 
installation;
    (3) The date a qualified inspector verified the installation as 
being in compliance with the requirements of this part;
    (4) The name, address, and telephone number of the qualified 
inspector who performed the inspection of the installation as required 
by Sec.  3286.109; and
    (5) The type of support, anchoring, or foundation system that is 
being used in the installation of the home, if known.
    (b) Method of providing information. (1) The retailer or 
distributor must provide the information set forth in paragraphs (a) 
and (b) of this section as soon as practical by either:
    (i) Entering the data into an Internet-based tracking system 
established by HUD; or
    (ii) Providing a copy of the information to HUD by facsimile, 
email, or first-class or overnight delivery.
    (2) The information must be sent to: Administrator, Office of 
Manufactured Housing Programs, HUD, 451 Seventh Street, SW, Room 9164, 
Washington, DC 20410-8000, or to a fax number or email address obtained 
by calling the Office of Manufactured Housing Programs. For convenience 
only, the URL of the website is www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm and the toll-free telephone number to contact the Office of 
Manufactured Housing Programs is (800) 927-2891, ext. 57.
    (c) Correcting information. If the information provided by the 
retailer changes after it has been entered into the tracking system or 
provided to HUD, the retailer must correct the information within 10 
business days after the retailer learns of the change.


Sec.  3286.115  Date of installation.

    For purposes relating to the HUD dispute resolution program 
established in part 3288 of this chapter, the date of installation will 
be the date all utilities are connected and the manufactured home is 
ready for occupancy as established, if applicable, by a certificate of 
occupancy, except as follows: if the manufactured home has not been 
sold to the first person purchasing the home in good faith for purposes 
other than resale by the date the home is ready for occupancy, the date 
of installation is the date of the purchase agreement or sales contract 
for the manufactured home.


Sec.  3286.117  Completion of sale date.

    (a) Date of sale defined. For purposes relating only to determining 
violations of the procedural and enforcement regulations for the 
construction and safety standards, the date the sale of a manufactured 
home will be considered complete will be the later of:
    (1) The date of the retailer's concurrence under Sec.  3286.113; or
    (2) The date that the purchaser receives a copy of the installer's 
completed certification, as set forth in Sec.  3286.111.
    (b) Compliance with construction and safety standards. If an 
installer installs a home in such a way as to create an imminent safety 
hazard or cause the home to not comply with the construction and safety 
standards in part 3280 of this chapter, the sale or lease of the home 
may not be completed until the home is corrected.

Subpart C--Installer Licensing in HUD-Administered States


Sec.  3286.201  Purpose.

    The purpose of this subpart C is to establish the requirements for 
a person to qualify to install a manufactured home in accordance with 
the HUD-administered installation program.


Sec.  3286.203  Installation license required.

    (a) Installation license required. (1) Any individual or company 
that engages in the business of directing, supervising, or controlling 
initial installations of new manufactured homes in a state without a 
qualifying installation program must itself have, or must employ 
someone who has, a valid manufactured home installation license issued 
in accordance with the requirements of this subpart C. For each 
installation covered under the requirements the licensed installer, and 
any company that employs the licensed installer, will be responsible 
for the proper and competent performance of all employees working under 
the licensed installer's supervision and for assuring that the 
installation work complies with this part.
    (2) A business that employs a licensed installer to represent the 
business and hold the installer's license retains primary 
responsibility for performance of the installation work in compliance 
with the requirements of this part.
    (3) A license is not required for individuals working as direct 
employees of a licensed installer or for the company that employs a 
licensed installer, provided that those individuals are covered by the 
licensed installer's or employer's general liability insurance and are 
supervised by a licensed installer.
    (4) The installer must display an original or copy of a valid 
installation license at the site of the installation at all times until 
the installer certifies the installation as required in Sec.  3286.411.
    (5) The installer is responsible for understanding and following, 
as applicable, the approved manufacturer installation instructions and 
any alternative installation design and instructions that have been 
certified by a professional engineer or registered architect as 
providing a level of protection for occupants of the home that equals 
or exceeds the protection provided by the federal installation 
standards in part 3285 of this chapter.
    (b) Installation license not required. An installation license is 
not required for:

[[Page 34490]]

    (1) Site preparation that is not subject to the requirements of 
part 3285 of this chapter;
    (2) Connection of utilities to the manufactured home;
    (3) Add-ons subject to the requirements of Sec.  3282.8(j);
    (4) Temporary installations on dealer, distributor, manufacturer, 
or other sales or storage lots, when the manufactured home is not 
serving as an occupied residence;
    (5) Home maintenance, repairs, or corrections, or other non-
installation-related work performed by the home manufacturer under 
warranty or other obligations or service agreements;
    (6) Installations performed by authorized representatives of the 
Federal Emergency Management Agency in order to provide emergency 
housing after a natural disaster; or
    (7) Work performed at the home site that is not covered by the 
federal installation standards in part 3285 of this chapter or the 
requirements of this part.


Sec.  3286.205  Prerequisites for installation license.

    (a) Required experience. (1) In order to obtain an installation 
license to perform manufactured home installations under the HUD-
administered installation program, an individual must meet at least one 
of the following minimum experience requirements:
    (i) 1,800 hours of experience installing manufactured homes;
    (ii) 3,600 hours of experience in the construction of manufactured 
homes;
    (iii) 3,600 hours of experience as a building construction 
supervisor;
    (iv) 1,800 hours as an active manufactured home installation 
inspector;
    (v) Completion of one year of a college program in a construction-
related field; or
    (vi) Any combination of experience or education from paragraphs 
(a)(1)(i) through (a)(5)(v) that totals 3,600 hours.
    (2) An installer who is certified or licensed to perform 
manufactured home installations in a state with a qualifying 
installation program may be exempted by the Secretary from complying 
with these experience requirements, if the Secretary determines that 
the state requirements are substantially equal to the HUD experience 
requirements.
    (b) Required training--(1) Initial applicant. An applicant for an 
installation license must complete 12 hours of training, at least 4 
hours of which must consist of training on the federal installation 
standards in part 3285 of this chapter and the installation program 
regulations in this part. An installer who is licensed to perform 
installations in a state with a qualified installation program may 
postpone the training requirements of this section for a period of one 
year from the effective date of this rule.
    (2) Renewal applicant. In order to qualify for renewal of an 
installation license, the licensed installer must complete 8 hours of 
continuing education during the 3-year license period, including in any 
particular subject area that may be required by HUD to be covered in 
order to assure adequate understanding of installation requirements.
    (3) The training required under this paragraph (b) must be 
conducted by trainers who meet the requirements of subpart D of this 
part and must meet the curriculum requirements established in 
Sec. Sec.  3286.308 or 3286.309, as applicable.
    (c) Testing. An applicant for an installation license must have 
successfully received a passing grade of 70 percent on a HUD-
administered or HUD-approved examination covering the Manufactured Home 
Installation Program and the federal installation standards in part 
3285.
    (d) Liability insurance. An applicant for an installation license 
must provide evidence of, and must maintain, general liability 
insurance in the amount of at least $1 million. HUD may require the 
licensed installer to provide proof of insurance at any time. The 
licensed installer must notify HUD of any changes or cancellations in 
liability insurance coverage.


Sec.  3286.207  Process for obtaining installation license.

    (a) Where to apply. An applicant for an initial or renewed 
installation license must provide the applicant's legal name, address, 
and telephone number to HUD. The application, with all required 
information, must be sent to: Administrator, Office of Manufactured 
Housing Programs, HUD, 451 Seventh Street, SW, Room 9164, Washington, 
DC 20410-8000, or to a fax number or email address obtained by calling 
the Office of Manufactured Housing Programs. For convenience only, the 
current URL of the website is www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm, and the current toll-free telephone number to contact the 
Office of Manufactured Housing Programs is (800) 927-2891, ext. 57.
    (b) Proof of experience. Every applicant for an initial 
installation license must submit verification of the experience 
required in Sec.  3286.205(a). This verification may be in the form of 
statements by past or present employers or a self-certification that 
the applicant meets those experience requirements, but HUD may contact 
the applicant for additional verification at any time. The applicant 
must also provide to HUD employment information relevant to the 
applicant's experience as an installer, including the dates and type of 
such employment. An installer who is certified or licensed to perform 
manufactured home installations in a state with a qualifying 
installation program may seek an exemption from the experience 
requirement by submitting proof of such certification or license.
    (c) Proof of training. Every applicant for an initial installation 
license, or the renewal of an installation license, must submit 
verification of successful completion of the training required in Sec.  
3286.205(b). This verification must be in the form of a certificate of 
completion from a qualified trainer that the applicant has completed 
the requisite number of hours of a qualifying curriculum, as set out in 
Sec. Sec.  3286.308 or 3286.309.
    (d) Proof of insurance. Every applicant for an installation license 
must submit the name of the applicant's general liability insurance 
carrier and the number of the policy required in Sec.  3286.205(d).
    (e) Other application submissions. (1) Every applicant for an 
installation license must submit a list of all states in which the 
applicant holds a similar installation certification or license, and a 
list of all states in which the applicant has had such a certification 
or license revoked, suspended, or denied.
    (2) When the examination is not administered by HUD, every 
applicant for an initial installation license must submit certification 
of a passing grade on the examination required by Sec.  3286.205(c).
    (f) Issuance or denial of an installation license. (1) When HUD 
confirms that an applicant has met the requirements in this subpart C, 
HUD will either:
    (i) Provide an installation license to the applicant that, as long 
as the installation license remains in effect, establishes the 
applicant's qualification to install manufactured homes in a state 
subject to the HUD-administered installation program; or
    (ii) Provide a written explanation of why HUD deems the applicant 
to not qualify for an installation license, including on grounds 
applicable under Sec.  3286.209 for suspension or revocation of an 
installation license and any other specified evidence of inability to 
adequately meet the requirements of this part.

[[Page 34491]]

    (2) An applicant who is denied an installation license under this 
subpart C, other than for failure to pass the installation license 
test, may request from HUD an opportunity for a presentation of views 
in accordance with subpart D of part 3282 of this chapter for the 
purpose of establishing the applicant's qualifications to obtain an 
installation license.
    (g) Assignment of license prohibited. An installation license 
issued under this part may not be transferred, assigned, or pledged to 
another entity or individual.


Sec.  3286.209  Denial, suspension, or revocation of installation 
license.

    (a) Oversight. The Secretary may make a continuing evaluation of 
the manner in which each licensed installer is carrying out his or her 
responsibilities under this subpart C.
    (b) Denial, suspension, or revocation. After notice and an 
opportunity for a presentation of views in accordance with subpart D of 
part 3282 of this chapter, the Secretary may deny, suspend, or revoke 
an installation license under this part. An installation license may be 
denied, suspended, or revoked for, among other things:
    (1) Providing false records or information to HUD;
    (2) Refusing to submit information that the Secretary requires to 
be submitted;
    (3) Failure to comply with applicable requirements of parts 3285, 
3286, or 3288 of this chapter;
    (4) Failure to take appropriate actions upon a failed inspection, 
as provided in Sec.  3286.509;
    (5) Fraudulently obtaining or attempting to obtain an installation 
license, or fraudulently or deceptively using an installation license;
    (6) Using or attempting to use an expired, suspended, or revoked 
installation license;
    (7) Violating state or federal laws that relate to the fitness and 
qualification or ability of the applicant to install homes; or
    (8) Engaging in poor conduct or workmanship as evidenced by one or 
more of the following:
    (i) Installing one or more homes that fail to meet the requirements 
of Sec.  3286.107;
    (ii) An unsatisfied judgment in favor of a consumer;
    (iii) Repeatedly engaging in fraud, deception, misrepresentation, 
or knowing omissions of material facts relating to installation 
contracts;
    (iv) Having a similar state installation license or certification 
denied, suspended, or revoked;
    (v) Having the renewal of a similar state installation license or 
certification denied for any cause other than failure to pay a renewal 
fee;
    (vi) Failure to maintain the insurance required by Sec.  
3286.205(d).
    (c) Other criteria. In deciding whether to suspend or revoke an 
installation license, the Secretary will consider the impact of the 
suspension or revocation on other affected parties and will seek to 
assure that the sales and siting of manufactured homes are not unduly 
disrupted.
    (d) Reinstating an installation license. An installer whose 
installation license has been denied, suspended, or revoked may submit 
a new application in accordance with this subpart C. Installers whose 
installation licenses have been suspended may also reinstate their 
installation licenses in any manner provided under the terms of their 
suspensions.


Sec.  3286. 211  Expiration and renewal of installation licenses.

    (a) Expiration. Each installation license issued or renewed under 
this subpart C will expire 3 years after the date of its issuance or 
renewal.
    (b) Renewal. An application for the renewal of an installation 
license must include the information required by, and must be submitted 
to, HUD in accordance with Sec.  3286.207, and must be submitted at 
least 60 days before the date the license expires. Any person applying 
for a license renewal after the date the license expires must apply for 
a new installation license following the requirements established under 
this subpart C for application for an initial installation license.

Subpart D--Training of Installers in HUD-Administered States


Sec.  3286.301  Purpose.

    The purpose of this subpart D is to establish the requirements for 
a person to qualify to provide the training required under subpart C of 
this part. This training is required for manufactured home installers 
who want to be licensed in accordance with the HUD-administered 
installation program.


Sec.  3286.303  Responsibilities of qualified trainers.

    (a) Curriculum and hours. In providing training to installers for 
the purpose of qualifying installers under the HUD-administered 
installation program, qualified trainers must adequately address the 
curriculum and instruction-time requirements established in subparts C 
and D of this part.
    (b) Attendance records. Qualified trainers must maintain records of 
the times, locations, names of attendees at each session, and content 
of all courses offered. When an attendee misses a significant portion 
of any training session, the trainer must assure that the attendee 
makes up the missed portion of the instruction.
    (c) Certificates of completion of training. Qualified trainers must 
provide certificates of completion to course attendees that indicate 
the level of compliance with the applicable curriculum and time 
requirements under subparts C and D of this part.
    (d) Record retention. All records maintained by trainers and 
continuing education providers must be retained for 5 years, and must 
be made available to HUD upon request.
    (e) Testing of installers. Qualified trainers may be authorized to 
administer the installation license testing required for initial 
licensing of installers, as set forth in Sec.  3286.205(c).


Sec.  3286.305  Installation trainer criteria.

    (a) Trainer qualification required. (1) All classes that provide 
manufactured home installation education classes used to satisfy the 
requirements for the initial issuance and renewal of installation 
licenses under subpart C of this part must be taught by trainers who 
are registered with HUD as qualified trainers. In order to register 
with HUD as a qualified trainer, a person must meet the experience 
requirements of this section.
    (2) Any entity other than a natural person may provide initial 
training and continuing education, as long as such entity establishes 
its qualification as a trainer by providing evidence and assurance that 
the entity's individual trainers meet the requirements of this section.
    (b) Experience prerequisites. In order to qualify as a trainer, an 
individual or other training entity must provide to HUD evidence that 
each individual who will be responsible for providing training:
    (1) Has a minimum of 3,600 hours of experience in one or more of 
the following:
    (i) As a supervisor of manufactured home installations;
    (ii) As a supervisor in the building construction industry;
    (iii) In design work related to the building construction industry; 
or
    (2) Has completed a 2-year educational program in a construction-
related field.
    (c) Certification of curriculum. In order to register as a 
qualified trainer, an individual or other training entity must submit 
to HUD certification that training provided in accordance with this

[[Page 34492]]

subpart D will meet the curriculum requirements established in Sec.  
3286.309.


Sec.  3286.307  Process for obtaining trainer's qualification.

    (a) Where to apply. An applicant for qualification as a trainer 
must provide the applicant's legal name, address, and telephone number 
to HUD. The application, with all required information, must be sent 
to: Administrator, Office of Manufactured Housing Programs, HUD, 451 
Seventh Street, SW, Room 9164, Washington DC 20410-8000, or to a fax 
number or email address obtained by calling the Office of Manufactured 
Housing Programs. For convenience only, the URL of the website is 
www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm, and the toll-free 
telephone number to contact the Office of Manufactured Housing Programs 
is (800) 927-2891 ext. 57.
    (b) Proof of experience. (1) Every individual applicant for initial 
qualification as a trainer must submit verification of the experience 
required in Sec.  3286.305. This verification may be in the form of 
statements by past or present employers or a self-certification that 
the applicant meets those experience requirements, but HUD may contact 
the applicant for additional verification at any time. The applicant 
must also provide to HUD employment information relevant to the 
applicant's experience as a trainer, including the dates and type of 
such employment. A trainer who is licensed, or otherwise certified, to 
provide manufactured home installation training in a state with a 
qualifying installation program may seek an exemption from the 
experience requirement by submitting proof of such license or other 
certification. An individual who applies for renewal qualification as a 
trainer is not required to submit additional proof of experience.
    (2) An entity that seeks to be designated as a qualified trainer 
must provide evidence and assurance that the entity's individual 
trainers meet the experience requirements in Sec.  3286.305.
    (c) Other qualification information. (1) An applicant for initial 
or renewal qualification as a trainer must submit to HUD a list of all 
states in which the applicant has had a similar training qualification 
revoked, suspended, or denied.
    (2) An applicant also must submit to HUD certification that 
training provided in accordance with this subpart D will meet the 
curriculum requirements established in Sec. Sec.  3286.308 or 3286.309, 
as applicable.
    (d) Confirmation or denial of qualification. (1) When HUD confirms 
that an applicant has met the experience and curriculum requirements in 
this section, HUD will either:
    (i) Provide to the applicant a written confirmation that the 
applicant is a qualified trainer under this part, and will add the 
applicant's name to a list maintained by HUD of qualified trainers; or
    (ii) Provide a written explanation of why HUD deems the applicant 
to not qualify as a trainer, including on grounds applicable under 
Sec.  3286.311 for suspension or revocation of a qualification and any 
other specified evidence of inability to meet the requirements of this 
part.
    (2) An applicant whose qualification is denied by HUD may request 
an opportunity for a presentation of views in accordance with subpart D 
of part 3282 of this chapter for the purpose of establishing the 
applicant's qualifications to be a qualified trainer or the adequacy of 
any training curriculum that is challenged by HUD.
    (e) Assignment of qualification prohibited. A qualification issued 
under this subpart D may not be transferred, assigned, or pledged to 
another entity or individual.


Sec.  3286.308  Training curriculum.

    (a) Curriculum for initial installer licensing. The training 
provided by qualified trainers to installers to meet the initial 
requirements of the HUD-administered installation program must include 
at least 12 hours of training, at least 4 hours of which must consist 
of training on the federal installation standards in part 3285 of this 
chapter and the installation program regulations in this part. The 
curriculum must include, at a minimum, training in the following areas:
    (1) An overview of the Act and the general regulatory structure of 
the HUD manufactured housing program;
    (2) An overview of the manufactured home installation standards and 
regulations established in parts 3285 and 3286 of this chapter, and 
specific instruction including:
    (i) Pre-installation considerations;
    (ii) Site preparation;
    (iii) Foundations;
    (iv) Anchorage against wind;
    (v) Optional features, including comfort cooling systems;
    (vi) Ductwork and plumbing and fuel supply systems;
    (vii) Electrical systems; and
    (viii) Exterior and interior close-up work.
    (3) An overview of the construction and safety standards and 
regulations found in parts 3280 and 3282 of this chapter;
    (4) Licensing requirements applicable to installers;
    (5) Installer responsibilities for correction of improper 
installation, including installer obligations under applicable state 
and HUD manufactured housing dispute resolution programs;
    (6) Inspection requirements and procedures;
    (7) Problem-reporting mechanisms;
    (8) Operational checks and adjustments; and
    (9) Penalties for any person's failure to comply with the 
requirements of this part 3286 and parts 3285 and 3288 of this chapter.
    (b) Updating curriculum. Qualified trainers must revise and modify 
course curriculum as needed to include, at a minimum, any relevant 
modifications to the Act or the implementing standards and regulations 
in this chapter, as well as to provide any training further mandated by 
HUD.


Sec.  3286.309  Continuing education'trainers and curriculum.

    (a) HUD-mandated elements. Only qualified trainers are permitted to 
provide any training on particular subject areas that are required by 
HUD to be an element of the continuing education requirement set out in 
Sec.  3286.205(b)(2) for the renewal of an installer's license. In 
implementing this requirement, HUD will:
    (1) Establish the minimum number of hours and the required 
curriculum for such subject areas, according to experience with the 
program and changes in program requirements; and
    (2) Provide information about the hours and curriculum directly to 
qualified trainers and licensed installers, or through general 
publication of the information.
    (b) Other training. (1) The remainder of the 8 hours required to 
meet the continuing education requirement may be met through training 
provided either by qualified trainers or by any combination of the 
following:
    (i) Accredited educational institutions, including community 
colleges and universities;
    (ii) A provider of continuing education units who is certified by 
the International Association for Continuing Education and Training;
    (iii) Agencies at any level of government; and
    (iv) State or national professional associations.
    (2) The curriculum for the remainder of the 8 hours of continuing 
education training must relate to any aspect of manufactured home 
installation or construction, or to the general fields of building 
construction or contracting.

[[Page 34493]]

Sec.  3286.311  Suspension or revocation of trainer's qualification.

    (a) Oversight. The Secretary may make a continuing evaluation of 
the manner in which each qualified trainer is carrying out the 
trainer's responsibilities under this subpart D.
    (b) Suspension or revocation of qualification. After notice and an 
opportunity for a presentation of views in accordance with subpart D of 
part 3282 of this chapter, the Secretary may suspend or revoke a 
trainer's qualification under this part. A trainer's qualification may 
be suspended or revoked for cause, which may include:
    (1) Providing false records or information to HUD;
    (2) Refusing to submit information required to be submitted by the 
Secretary in accordance with the Act;
    (3) Certifying, or improperly assisting certification of, a person 
as having met the training requirements established in this part when 
that person has not completed the required training;
    (4) Failing to appropriately supervise installation training that 
is used to meet the requirements of this part and that is provided by 
other persons; and
    (5) Any other failures to comply with the requirements of this 
part.
    (c) Other criteria. In deciding whether to suspend or revoke a 
trainer's qualification, the Secretary will consider the impact of the 
suspension or revocation on other affected parties and will seek to 
assure that the sales and siting of manufactured homes are not unduly 
disrupted.
    (d) Reinstating qualification. A trainer whose qualification has 
been suspended or revoked may submit a new application to be qualified 
in accordance with this subpart D no sooner than 6 months after the 
date of suspension or revocation. A trainer whose qualification has 
been suspended may also reinstate the qualification in any manner 
provided under the terms of the suspension.


Sec.  3286.313  Expiration and renewal of trainer qualification.

    (a) Expiration. Each notice of qualification issued or renewed 
under this subpart D will expire 5 years after the date of its issuance 
or renewal.
    (b) Renewal. An application for the renewal of a trainer 
qualification must be submitted to HUD in accordance with Sec.  
3286.307, and must be submitted at least 60 days before the date the 
trainer's term of qualification expires. Any person applying for a 
qualification renewal after the date the qualification expires must 
apply for a new qualification, following the requirements established 
under this subpart D for application for initial qualification as an 
installation trainer.

Subpart E--Installer Responsibilities of Installation in HUD-
Administered States


Sec.  3286.401  Purpose.

    The purpose of this subpart E is to set out the responsibilities of 
the installer who is accountable for the installation of a manufactured 
home in compliance with the requirements of the HUD-administered 
installation program.


Sec.  3286.403  Licensing requirements.

    An installer of manufactured homes must comply with the licensing 
requirements set forth in subpart C of this part.


Sec.  3286.405  Site suitability.

    (a) Site appropriateness. Before installing a manufactured home, 
the installer must:
    (1) Verify that the site is accessible;
    (2) Verify that the site is appropriate for the foundation or 
support and stabilization system that is to be used to install the home 
in accordance with the federal installation standards or alternative 
requirements in part 3285 of this chapter;
    (3) Verify, by checking the data plate required by Sec.  3280.5 of 
this chapter to be affixed to the home, that the home is designed for 
the roof load, wind load, and thermal zones that are applicable to the 
intended site; and
    (4) Verify that the installation site is protected from surface 
run-off and can be graded in accordance with part 3285.
    (b) Notification of inappropriate site. If the installer determines 
that the home cannot be installed properly at the site, the installer 
must:
    (1) Notify the purchaser or other person with whom the installer 
contracted for the installation work;
    (2) Notify the retailer that contracted with the purchaser for the 
sale of the home; and
    (3) Decline to install the home until the site and the home are 
both verified by the installer as suitable for the site under this 
section.


Sec.  3286.407  Supervising work of crew.

    The installer will be responsible for the work performed by each 
person engaged to perform installation tasks on a manufactured home in 
accordance with the HUD-administered installation program.


Sec.  3286.409  Obtaining inspection.

    (a) Inspection obligations. Within 5 business days of the 
completion of installation work, the installer must arrange for a 
third-party inspection in accordance with subpart F of this part, 
unless the installer and retailer who contracted with the purchaser for 
the sale of the home agree in writing that during the same time period 
the retailer will arrange for the inspection. The inspection must be 
performed by an inspector who meets the qualifications set forth in 
Sec.  3286.511.
    (b) Contract rights not affected. Failure to arrange for an 
inspection of a home within 5 business days will not affect the 
validity or enforceability of any sale or contract for the sale of any 
manufactured home.
    (c) State or local permits. The licensed installer should obtain 
all necessary permits required under state or local laws.
    (d) Completion of sale. For purposes of determining the 
responsibilities of a manufacturer, retailer, or distributor under 
subpart I of part 3282 of this chapter, the sale of a manufactured home 
will not be considered complete until:
    (1) Following the procedures established in Sec.  3286.507, a 
qualified inspector approves the home as having been installed in 
conformance with part 3285 of this chapter; and
    (2) The installer certifies the installation as set forth in Sec.  
3286.111.


Sec.  3286.411  Certifying installation.

    (a) Certification required. Upon completion of the installation 
work, a licensed installer must visit the job site and certify that:
    (1) It has installed the manufactured home in compliance with the 
manufacturer's installation instructions or with an installation design 
and instructions that have been certified by a professional engineer or 
registered architect as providing a level of protection for occupants 
of the home that equals or exceeds the protection provided by the 
federal installation standards in part 3285 of this chapter; and
    (2) The installation of the home has been inspected as required by 
this part.
    (b) Recipients of certification. The installer must provide its 
original certification to the retailer, and must provide a copy of the 
certification to the purchaser.
    (c) Retailer to update records. Upon receiving the installer's 
original certification of installation, the retailer must enter the 
following additional information into the retailer's records on the 
home:
    (1) The date of installer certification of completion of the 
installation;
    (2) The date a qualified inspector approved the installation as 
being in

[[Page 34494]]

compliance with the requirements of this part; and
    (3) The name, address, and telephone number of the qualified 
inspector who performed the inspection of the installation.


Sec.  3286.413  Recordkeeping.

    (a) Records to be retained. The installer must retain:
    (1) A record of the name and address of the purchaser or other 
person with whom the installer contracted for the installation work and 
the address of the home installed;
    (2) A copy of the contract pursuant to which the installer 
performed the installation work;
    (3) A copy of any notice from an inspector disapproving the 
installation work;
    (4) A copy of the qualified inspector's verification of the 
installation work;
    (5) A copy of the installer's certification of completion of 
installation in accordance with the requirements of this part; and
    (6) A copy of foundation designs used to install the home if 
different from the designs provided by the manufacturer, including 
evidence that the foundation designs and instructions were certified by 
a professional engineer or registered architect.
    (b) Retention requirement. The records listed in paragraph (a) of 
this section must be maintained for a period of 5 years after the 
installer certifies completion of installation.

Subpart F--Inspection of Installations in HUD-Administered States


Sec.  3286.501  Purpose.

    The purpose of this subpart F is to provide additional detail about 
the inspection that must be performed by a qualified third-party 
inspector before the installation of a manufactured home may be 
approved by the inspector and certified by the installer under the HUD-
administered installation program.


Sec.  3286.503  Inspection required.

    (a) Timing of requirements. Within 5 business days of the 
completion of the installation of each manufactured home, the installer 
must arrange for a third-party inspection of the work performed, unless 
the installer and retailer who contracted with the purchaser for the 
sale of the home agree in writing that during the same time period the 
retailer will arrange for the inspection. Such inspection must be 
performed as soon as practicable by an inspector that meets the 
qualifications set out in Sec.  3286.511. The scope of the inspections 
that are required to be performed is addressed in Sec.  3286.505.
    (b) Disclosure of requirement. At the time of sale, the retailer 
must disclose to the purchaser, in a manner provided in Sec.  3286.7, 
that the manufactured home must be installed in accordance with 
applicable federal and state law, including requirements for a third-
party inspection of the installation. If the cost of inspection of the 
home's installation is not included in the sales price of the home, the 
sales contract must include a clear disclosure about whether the 
purchaser will be charged separately for the inspection of the home's 
installation and the amount of such charge.


Sec.  3286.505  Minimum elements to be inspected.

    The installation of every manufactured home that is subject to the 
HUD-administered installation program is required to be inspected for 
each of the installation elements included in a checklist. The 
checklist must include assurance that all permits needed to place the 
manufactured home on the site have been obtained, and that each of the 
following elements complies with the requirements of part 3285 of this 
chapter:
    (a) Site location with respect to home design and construction;
    (b) Consideration of site-specific conditions;
    (c) Site preparation;
    (d) Foundation construction;
    (e) Anchorage;
    (f) Installation of optional features;
    (g) Completion of ductwork, plumbing, and fuel supply systems;
    (h) Electrical systems;
    (i) Exterior and interior close-up;
    (j) Skirting, if installed; and
    (k) Completion of operational checks and adjustments.


Sec.  3286.507  Verifying installation.

    (a) Verification by inspector. When an inspector is satisfied that 
the manufactured home has been installed in accordance with the 
requirements of this part, the inspector must provide verification of 
the installation and return the evidence of such verification to the 
installer.
    (b) Certification by installer. (1) Once an installation has been 
inspected and verified, the installer is permitted to certify the 
installation as provided in Sec.  3286.111. The installer must provide 
a signed copy of the certification to:
    (i) The retailer that contracted with the purchaser for the sale of 
the home;
    (ii) The purchaser; and
    (iii) Any other person that contracted to obtain the services of 
the installer for the installation work on the home.
    (2) The installer must retain records in accordance with Sec.  
3286.413.


Sec.  3286.509  Reinspection upon failure to pass.

    (a) Procedures for failed inspection. If the inspector cannot 
verify the installation of the manufactured home, the inspector must 
immediately notify the installer and explain the reasons why the 
installer cannot issue verification that the installation complies with 
the requirements of this part. After the installation is corrected, it 
must be reinspected before verification can be issued.
    (b) Cost of reinspection. If there is any cost for the reinspection 
of an installation that an inspector has refused to verify, that cost 
must be paid by the installer or the retailer and, absent a written 
agreement with the purchaser that specifically states otherwise, that 
cost cannot be charged to the purchaser of the manufactured home.


Sec.  3286.511  Inspector qualifications.

    (a) Qualifications. Any individual who meets at least one of the 
following qualifications is permitted to review the work and verify the 
installation of a manufactured home that is subject to the requirements 
of the HUD-administered installation program:
    (1) A manufactured home or residential building inspector employed 
by the local authority having jurisdiction over the site of the home, 
provided that the jurisdiction has a residential code enforcement 
program;
    (2) A professional engineer;
    (3) A registered architect; or
    (4) A HUD-accepted Production Inspection Primary Inspection Agency 
(IPIA) or a Design Approval Primary Inspection Agency (DAPIA).
    (b) Independence required. The inspector must be independent of the 
manufacturer, the retailer, the installer, and any other person that 
has a monetary interest, other than collection of an inspection fee, in 
the completion of the sale of the home to the purchaser.
    (c) Suspension or revocation of inspection authority. After notice 
and an opportunity for a presentation of views in accordance with 
subpart D of part 3282 of this chapter, the Secretary may suspend or 
revoke an inspector's authority to inspect manufactured home 
installations under this part in HUD-administered states. An 
inspector's authority may be suspended or revoked for cause. In 
deciding whether to suspend or revoke an inspector's authority to 
conduct such installation inspections, the Secretary will consider the 
impact of the suspension or revocation on other affected parties and 
will seek to assure that the sales and

[[Page 34495]]

siting of manufactured homes are not unduly disrupted.
    (d) Reinstating inspection authority. An inspector whose authority 
to inspect manufactured home installations in HUD-administered states 
has been suspended or revoked under this section may apply for 
reauthorization by contacting the Administrator of HUD's Office of 
Manufactured Housing Programs.

Subpart G--Retailer Responsibilities in HUD-Administered States


Sec.  3286.601  Purpose.

    The purpose of this subpart G is to set out the requirements that 
apply to a retailer with respect to the federal installation 
requirements applicable to new manufactured homes that the retailer 
sells or leases and that will be installed in states that do not have 
qualifying installation programs. These requirements are in addition to 
other requirements that apply to retailers of manufactured homes 
pursuant to other parts of this chapter.


Sec.  3286.603  At or before sale.

    (a) Before contract. (1) The retailer is required to support each 
transportable section of a manufactured home that is temporarily or 
permanently located on a site used by a retailer in accordance with the 
manufacturer's instructions.
    (2) Before a purchaser or lessee signs a contract of sale or lease 
for a manufactured home, the retailer must:
    (i) Provide the purchaser or lessee with a copy of the consumer 
disclosure statement required in Sec.  3286.7(b); and
    (ii) Verify that the wind, thermal, and roof load zones of the home 
being purchased or leased are appropriate for the site where the 
purchaser or lessee plans to install the home for occupancy; and
    (iii) If the cost of inspection of the home's installation is not 
included in the sales price of the home, provide the disclosure 
required in Sec.  3286.7(b).
    (b) Occupancy site not known. When at the time of purchase the 
purchaser does not know the locale for the initial siting of the home 
for occupancy, the retailer must advise the purchaser that:
    (1) The home was designed and Constructed for specific wind, 
thermal, and roof load zones; and
    (2) If the home is sited in a different zone, the home may not pass 
the required installation inspection because the home will have been 
installed in a manner that would take it out of compliance with the 
construction and safety standards in part 3280 of this chapter.


Sec.  3286.605  After sale.

    (a) Tracking installation information. The retailer is responsible 
for providing to HUD the information required pursuant to Sec. Sec.  
3286.13 and 3286.113.
    (b) Other tracking and compliance requirements. The retailer 
continues to be responsible for compliance with the tracking and 
compliance requirements set out in subpart F of part 3282 of this 
chapter, which are related to HUD construction and safety standards.


Sec.  3286.607  Recordkeeping.

    The retailer is responsible for the reporting and recordkeeping 
requirements under Sec. Sec.  3286.13, 3286.113, and 3286.411, as 
applicable.

Subpart H--Oversight and Enforcement in HUD-Administered States


Sec.  3286.701  Purpose.

    The purpose of this subpart H is to set out the mechanisms by which 
manufacturers, retailers, distributors, installers, and installation 
inspectors will be held accountable for assuring the appropriate 
installation of manufactured homes. The requirements in subpart A of 
this part are applicable in all states, and the requirements in 
subparts B through G of this part are applicable in states where the 
HUD-administered installation program operates. It is the policy of the 
Secretary regarding manufactured home installation program enforcement 
matters to cooperate with state or local agencies having authority to 
regulate the installation of manufactured homes. In addition to actions 
expressly recognized under this subpart H and other provisions in this 
part, however, in order to oversee the system established by the 
regulations in this part, HUD may take any actions authorized by the 
Act.


Sec.  3286.703  Failure to comply.

    (a) Penalties and injunctive relief. Failure to comply with the 
requirements of this part is a prohibited act under section 610(a)(7) 
of the Act, 42 U.S.C. 5409(a). Any person who fails to comply with the 
requirements of this part is subject to civil and criminal penalties, 
and to actions for injunctive relief, in accordance with sections 611 
and 612 of the Act, 42 U.S.C. 5410 and 5411.
    (b) Presentation of views. When practicable, the Secretary will 
provide notice to any person against whom an action for injunctive 
relief is contemplated and will afford such person an opportunity to 
request a presentation of views. The procedures set forth in Sec. Sec.  
3282.152 through 3282.154 of this chapter shall apply to each request 
to present views and to each presentation of views authorized in 
accordance with this section.
    (c) Investigations. The procedures for investigations and 
investigational proceedings are set forth in part 3800 of this chapter.


Sec.  3286.705  Applicability of dispute resolution program.

    (a) Generally. Regardless of any action taken under Sec.  3286.703, 
for any defect in a manufactured home that is reported during the one-
year period beginning on the date of installation, any rights and 
remedies available under the HUD dispute resolution program as 
implemented in part 3288 of this chapter continue to apply as provided 
in that part.
    (b) Waiver of rights invalid. Any provision of a contract or 
agreement entered into by a manufactured home purchaser that seeks to 
waive any recourse to either the HUD or a state dispute resolution 
program is void.

Subpart I--State Programs


Sec.  3286.801  Purpose.

    The purpose of this subpart I is to establish the requirements that 
must be met by a state to implement and administer its own installation 
program in such a way that the state would not be covered by the HUD-
administered installation program. This subpart I also establishes the 
procedure for determining whether a state installation program meets 
the requirements of the Act for a qualifying installation program that 
will operate in lieu of the HUD-administered installation program.


Sec.  3286.803  State qualifying installation programs.

    (a) Qualifying installation program supersedes. The HUD-
administered installation program will not be implemented in any state 
that is identified as fully or conditionally accepted under the 
requirements and procedures of this subpart I.
    (b) Minimum elements. To be accepted as a fully qualifying 
installation program, a state installation program must include the 
following elements:
    (1) Installation standards that meet or exceed the requirements of 
Sec.  3286.107(a) and that apply to every initial installation of a new 
manufactured home within the state;
    (2) The training of manufactured home installers;
    (3) The licensing of, or other method of certifying or approving, 
manufactured home installers to perform the initial installations of 
new manufactured homes in the state;

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    (4) Inspection of the initial installations of new manufactured 
homes in the state; and
    (5) Provision of adequate funding and personnel to administer the 
state installation program.
    (c) Conditional acceptance. (1) A state installation program that 
meets the minimum requirements set forth under paragraphs (b)(1) and 
(5) of this section may be conditionally accepted by the Secretary if 
the state provides assurances deemed adequate by the Secretary that the 
state is moving to meet all of the requirements for full acceptance. If 
the Secretary conditionally accepts a state's installation program, the 
Secretary will provide to the state an explanation of what is necessary 
to obtain full acceptance.
    (2) A conditionally accepted state will be permitted to implement 
its own installation program in lieu of the HUD-administered program 
for a period of not more than 3 years. The Secretary may for good cause 
grant an extension of conditional approval upon petition by the state.
    (d) Limited exemptions from requirements. A state installation 
program may be accepted by the Secretary as a qualifying installation 
program if the state can demonstrate that it lacks legal authority, as 
a matter of federal law, to impose the minimum requirements set forth 
under paragraph (b) of this section in certain geographic areas of the 
state, but that the minimum requirements do apply in all other 
geographic areas of the state.


Sec.  3286.805  Procedures for identification as qualified installation 
program.

    (a) Submission of certification. (1) A state seeking identification 
as a qualified installation program must submit a completed State 
Installation Program Certification form to the Secretary for review and 
acceptance.
    (2) On or after December 27, 2006, a state must include a qualified 
installation program as part of any State Plan Application submitted 
for approval under Sec.  3282.302 of this chapter, if the state does 
not have a fully or conditionally approved state plan in effect at the 
time of submission of the State Plan Application. In all other cases, a 
qualified installation program is permitted, but is not required, to be 
submitted as a part of a state plan approved in accordance with Sec.  
3282.305 of this chapter.
    (b) HUD review and action. (1) The Secretary will review the State 
Installation Program Certification form submitted by a state and may 
request that the state submit additional information as necessary. 
Unless the Secretary has contacted the state for additional information 
or has conditionally accepted or rejected the state installation 
program, the state installation program will be considered to have been 
accepted by the Secretary as a fully qualifying installation program as 
of the earlier of:
    (i) Ninety days after the Secretary receives the state's completed 
State Installation Program Certification form; or
    (ii) The date that the Secretary issues notification to the state 
of its full acceptance.
    (2) A notice of full or conditional acceptance will include the 
effective date of acceptance.
    (c) Rejection of state installation program. (1) If the Secretary 
intends to reject a state's installation program, the Secretary will 
provide to the state an explanation of what is necessary to obtain full 
or conditional acceptance. The state will be given 120 days from the 
date the Secretary provides such explanation to submit a revised State 
Installation Program Certification form.
    (2) If the Secretary decides that any revised State Installation 
Program Certification form is inadequate, or if the state fails to 
submit a revised form within the 60-day period or otherwise indicates 
that it does not intend to change its form, the Secretary will notify 
the state that its installation program is not accepted.
    (3) A state whose State Installation Program Certification form is 
rejected has a right to a presentation of views on the rejection using 
the procedures set forth under subpart D of part 3282 of this chapter. 
The state's request for a presentation of views must be submitted to 
the Secretary within 60 days after the Secretary has provided 
notification that the state's installation program has been rejected.


Sec.  3286.807  Recertification required.

    (a) Recertification. To maintain its status as a qualified 
installation program, a state must submit a new State Installation 
Program Certification form to the Secretary for review and action as 
follows:
    (1) Every 3 years after the state's most recent certification as a 
qualified installation program; and
    (2) Whenever there is a change to the state's installation program 
or a change in the HUD requirements applicable to qualifying 
installation programs such that the state's installation program no 
longer complies with the minimum requirements set forth in Sec.  
3286.803(b), regardless of when the state's next regular 
recertification of its installation program would be due.
    (b) Due date of recertification. (1) A state's recertification must 
be filed within 90 days of, as applicable:
    (i) The 3-year anniversary of the effective date of the Secretary's 
acceptance of the state's most recent certification as a qualified 
installation program; and
    (ii) The effective date of the state or HUD action that makes a 
significant change to the state's installation program.
    (2) Upon petition by the state, the Secretary may for good cause 
grant an extension of the deadline for recertification.
    (c) Effect of recertification failure. (1) A state whose 
certification of its installation program has been accepted by the 
Secretary is permitted to administer its installation program in lieu 
of the HUD-administered installation program until the effective date 
of a notification by the Secretary that the state's certification of 
its installation program is no longer approved.
    (2) A state whose recertification of its installation program is 
rejected by the Secretary has a right to a presentation of views on the 
rejection using the procedures set forth under subpart D of part 3282 
of this chapter. The state's request for a presentation of views must 
be submitted to the Secretary within 60 days after the Secretary has 
provided notification that the state's recertification of its 
installation program has been rejected.


Sec.  3286.809  Withdrawal of qualifying installation program status.

    (a) Voluntary withdrawal. Any state that intends to withdraw from 
its responsibilities to administer a qualifying installation program 
should provide the Secretary with a minimum of 90 days notice.
    (b) Involuntary withdrawal. Whenever the Secretary finds, after 
affording notice and an opportunity for a hearing in accordance with 
subpart D of part 3282 of this chapter, that a state installation 
program fails to comply substantially with any provision of the 
installation program requirements or that the state program has become 
inadequate, the Secretary will notify the state of withdrawal of 
acceptance or conditional acceptance of the state installation program. 
The HUD-administered installation program will begin to operate in such 
state at such time as the Secretary establishes in issuing the finding.

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Sec.  3286.811  Effect on other manufactured housing program 
requirements.

    A state with a qualifying installation program will operate in lieu 
of HUD with respect to only the installation program established under 
subparts B through H of this part. No state may permit its installation 
program, even if it is a qualified installation program under this 
part, to supersede the requirements applicable to any other aspect of 
HUD's manufactured housing program. Regardless of whether a state has a 
qualified installation program:
    (a) Construction and safety standards. Any responsibilities, 
rights, and remedies applicable under the Manufactured Home 
Construction and Safety Standards Act in part 3280 of this chapter and 
the Manufactured Home Procedural and Enforcement Regulations in part 
3282 of this chapter continue to apply as provided in those parts; and
    (b) Dispute resolution. For any defect in a manufactured home that 
is reported during the one-year period beginning on the date of 
installation, any responsibilities, rights, and remedies applicable 
under the HUD dispute resolution program as implemented in part 3288 of 
this chapter continue to apply as provided in that part.


Sec.  3286.813  Inclusion in state plan.

    If a state installation program is included in a state plan 
approved in accordance with Sec.  3282.302 of this chapter, the state 
installation program is subject to all of the requirements for such a 
state plan, including annual review by HUD.

    Dated: May 23, 2006.
Brian D. Montgomery,
Assistant Secretary for Housing-Federal Housing Commissioner.
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[FR Doc. 06-5389 Filed 6-9-06; 1:27 pm]
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