[Federal Register Volume 73, Number 120 (Friday, June 20, 2008)]
[Rules and Regulations]
[Pages 35270-35304]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-13289]



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Part III





Department of Housing and Urban Development





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24 CFR Part 3286



Manufactured Home Installation Program; Final Rule

  Federal Register / Vol. 73, No. 120 / Friday, June 20, 2008 / Rules 
and Regulations  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 3286

[Docket No. FR-4812-F-03]
RIN 2502-AH97


Manufactured Home Installation Program

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

ACTION: Final rule.

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SUMMARY: This final rule establishes a federal manufactured home 
installation program, as required by section 605(c)(2)(A) of the 
National Manufactured Housing Construction and Safety Standards Act of 
1974. 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 established through 
this final rulemaking. The new elements required by statute to be 
integrated into an acceptable state manufactured home installation 
program are: The establishment of qualified installation standards; the 
licensing and training of installers; and the inspection of the 
installation of manufactured homes.

DATES: Effective Date: October 20, 2008.

FOR FURTHER INFORMATION CONTACT: William W. Matchneer III, Associate 
Deputy Assistant Secretary for Regulatory Affairs and Manufactured 
Housing, Office of Manufactured Housing Programs, Department of Housing 
and Urban Development, 451 Seventh Street, SW., Room 9164, Washington, 
DC 20410; telephone number 202-708-6401 (this is not a toll-free 
number). Persons with hearing or speech impairments may access this 
number via TTY by calling the toll-free Federal Information Relay 
Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

Requirement for an Installation Program

    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, and was amended on December 27, 2000 (Manufactured 
Housing Improvement Act of 2000, Title VI, Pub. L. 106-659, 114 Stat. 
2997). In order to accomplish those objectives, the Act requires 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. The model manufactured home installation standards 
(``the installation standards'') themselves can be found in a separate 
final rule, which was published on October 19, 2007 (72 FR 59338). Any 
state that wishes to operate its own installation program must contain 
state installation standards that afford residents of manufactured 
homes at least the same protection provided by the federal installation 
standards.
    Although a state that wants to operate its own installation program 
is not required to be a State Administrative Agency (``SAA'') 
established pursuant to HUD's Manufactured Home Procedural and 
Enforcement Regulations (see 24 CFR part 3282), any state that submits 
a new state plan to become an SAA after the implementation of the 
Manufactured Home Installation Program must include a complying 
installation program as part of its plan. As a result, 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.

Proposed Rule

    On June 14, 2006, at 71 FR 34476, HUD published the Manufactured 
Home Installation Program proposed rule with a comment due date of 
August 14, 2006. There were a total of 35 commenters on the June 14, 
2006, proposed rule. Twenty-seven of the commenters were from the 
manufactured home industry, including manufacturers, component 
suppliers, retailers, installers, trade associations, and community 
operators. Five commenters were from SAAs. The remaining commenters 
were a consumer group, the Manufactured Housing Consensus Committee 
(MHCC), and one member of the insurance industry.
    HUD worked closely and participated in several meetings with the 
MHCC in order to obtain their input and suggestions. In response to 
comments from the public and input from the MHCC, HUD has made a few 
significant changes to the proposed rule.

II. General Areas of Interest to Commenters

    This section of the preamble discusses general areas of interest to 
commenters. One of the general recommendations most often made by the 
commenters was to codify the Manufactured Home Installation Program in 
the existing 24 CFR part 3282, rather than in the new part Sec.  3286, 
in the belief that the installation program would thereby become 
``preemptive'' of state and local installation requirements in states 
where HUD administers the installation program.

Preemption

    Commenters requested that the installation program and installation 
standards be made preemptive of state and local requirements in states 
where HUD administers the installation program. However, HUD has 
concluded that a plain reading of sections 604(d) and 605 of the Act 
indicates that Congress did not intend for the installation program or 
the installation standards to be preemptive of more stringent state or 
local government requirements. This conclusion is strengthened by the 
legislative history of the Act. During his section-by-section comments 
on the floor of the House when the Act was being debated, then House 
Financial Services Committee Chairman Jim Leach stated that ``the bill 
would reinforce the proposition that installation standards and 
regulations remain under the exclusive authority of each state.'' (See 
Dec. 5, 2000, 146 Cong. Rec. H11960-01.) In ``Additional Views'' that 
were included in the House Report on the bill, then Ranking Committee 
Member John LaFalce noted that ``for the first time, we will be setting 
a national minimum installation standard * * *'' (H. Rpt. 106-553, pg. 
182). In earlier floor remarks, Rep. LaFalce said, ``[s]tates that wish 
to have their own installation standards may continue to do so, as long 
as they provide protections comparable to the model standards.'' (Oct. 
24, 2000, 146 Cong. Rec. H10685). HUD, therefore, concludes that 
Congress has permitted state governments to implement installation 
standards that are more stringent than the federal installation 
standards, provided that those state standards otherwise offer 
protection that equals or exceeds the minimum protection established by 
the installation standards.

Codification in Part 3286 of 24 CFR

    Commenters, including the MHCC, continued to state that the 
Manufactured Home Installation Program should be codified under 24 CFR 
part 3282, Manufactured Home Procedural and Enforcement Regulations. 
Contrary to the views expressed by these commenters,

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preemption authority can come only from Congress, and no decision that 
HUD makes regarding the codification of the Manufactured Home 
Installation Program could increase or diminish that authority. As 
indicated above, HUD has concluded that Congress did not intend to 
extend preemption authority to the installation of manufactured homes.
    In any event, HUD has chosen, as a matter of administrative 
necessity, to codify the Manufactured Home Installation Program in a 
new 24 CFR part 3286 in order to maintain the clear distinctions that 
the Act makes between installation and construction. The regulatory 
structure that Congress has given HUD for enforcement of the 
Manufactured Home Installation Program is entirely different from the 
enforcement authority it previously gave HUD for the Federal 
Manufactured Home Procedural and Enforcement Regulations. As HUD reads 
sections 613 (42 U.S.C. 5412) and 615 (42 U.S.C. 5414) of the Act, the 
principal sections requiring notification and correction of defects, 
these sections do not apply to the installation of manufactured homes. 
As HUD reads the Act, the primary enforcement authority for the 
installation of manufactured homes, implemented through sections 610 
and 611 (42 U.S.C. 5409 and 5410, respectively), is section 605 (42 
U.S.C. 5404) itself, which not only provides more limited authority for 
the installation of manufactured homes, but adds new requirements 
regarding the licensing and training of installers.
    Given these fundamental differences between the installation and 
construction and safety programs, publication of the Manufactured Home 
Installation Program in a new 24 CFR part 3286 will best allow HUD to 
maintain the regulatory separation necessary to administer two such 
different programs.
    Commenters stated that the purpose of the Manufactured Home 
Installation Program should be to establish HUD's default installation 
program for those states that do not meet the required elements of the 
Act through state law. The rule should not be used to create a 
prescriptive base-line standard for each state-based installation 
program. In order to avoid confusion on this issue, the final rule sets 
out, in discrete subparts: (1) Manufactured home installation 
requirements that are applicable in all states (subpart A) and to all 
manufacturers; (2) requirements that are applicable in only those 
states in which HUD is administering the installation program (subparts 
B through H); 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 final 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.

Installation in Accordance With the Installation Standards

    The MHCC was particularly concerned that the Manufactured Home 
Installation Program proposed rule required compliance with the 
installation standards, and not with the installation design and 
instructions provided by the manufacturer. HUD agreed with the MHCC 
that it would be better for the consumer to require compliance with the 
manufacturer's installation design and instructions, since such designs 
and instructions may differ from the installation standards by 
providing requirements that not only exceed the installation standards, 
but are also specific to the installation requirements of the 
particular home being installed.
    The final rule of the installation program requires that the 
manufactured home be installed in accordance with:
    (1) An installation design and instructions that have been provided 
by the manufacturer and approved by the Secretary directly or through 
review by the Design Approval Primary Inspection Agency (DAPIA); or
    (2) An installation design and instructions that have been prepared 
and certified by a professional engineer or registered architect and 
have been approved by the manufacturer and the DAPIA as providing a 
level of protection for residents of the home that equals or exceeds 
the protection provided by the federal installation standards in part 
3285 of this chapter.

III. Particular Areas of Interest to Commenters

    This section of the preamble discusses specific, section-by-section 
areas of interest to commenters. In response to the comments and the 
MHCC's input, HUD has made a few significant changes to the proposed 
rule.
    Section 3286.2(d)(3) Applicability. Many commenters suggested 
expanding the Manufactured Home Installation Program to cover secondary 
installations of manufactured homes in addition to initial 
installations. It is HUD's position that Congress intended the 
installation program to be applicable only to the initial installation 
of new manufactured homes, as indicated by references in section 623(g) 
of the Act to the date of installation and by the definition of 
``purchaser'' as the first purchaser in section 603 of the Act. A very 
small percentage of manufactured homes are ever relocated after initial 
siting and placement of the homes. The Manufactured Home Procedural and 
Enforcement Regulations encourage States to establish procedures for 
the inspection of used manufactured homes and for monitoring of the 
installation of manufactured homes within each State (Sec.  3282.303), 
indicating the intent of Congress to place the supervision of 
reinstallments in the hands of the States.
    The final rule clarifies that the installation program does not 
prevent State and local governments from regulating subsequent 
installations of manufactured homes. State standards for initial 
installation must meet or exceed HUD's minimum installation standards, 
while state standards for secondary installations do not have to adhere 
to the minimum HUD standards. HUD concludes that any subsequent 
installation of a manufactured home resides with State authority.
    Section 3286.103 DAPIA-approved installation instructions. HUD 
agrees with the commenters who stated that the retailer must provide 
the purchaser with a copy of the DAPIA-approved installation 
instruction manual for each home in states where HUD administers the 
installation program. However, the retailer should not be required to 
provide an installation design and instructions if the retailer has not 
agreed to provide any set up in connection with the sale of the home 
and the installation requires a design that is different than that 
provided by the manufacturer's installation manual for the home. HUD 
agrees that the retailer or manufacturer should provide the 
installation design and instructions for installations that require 
designs that differ from those provided by the manufacturer's 
instruction manual when the retailer or manufacturer agrees to provide 
any set up in connection with the sale of the home. The proposed rule 
placed the entire burden of providing the installation instructions 
upon the retailer.
    Accordingly, the final rule has been revised to require the 
retailer to provide the purchaser with a copy of the DAPIA-approved 
installation instructions for each manufactured home, and to require 
the retailer or manufacturer to provide to the installer the 
installation design and instructions for installations that require 
designs that differ from those provided by the manufacturer when the 
retailer or manufacturer agrees to

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provide any set up in connection with the sale of the home. Although 
either the retailer or the manufacturer now has the responsibility to 
provide instructions to the installer, rather than only the retailer, 
the overall burden associated with the requirement to provide 
instructions has not changed.
    The final rule does not require the retailer or manufacturer to 
provide installation instructions to the installer if the retailer or 
manufacturer has not agreed to provide any set up in connection with 
the sale of the home, since the installer performing the installation 
may not be known by the retailer or manufacturer.
    Section 3286.109 Inspection requirements--generally. HUD agrees 
with commenters who stated that the requirements in the proposed rule 
may delay the completion of sale. The original wording extended the 
completion of sale date to the date that the home was installed. This 
may have had an adverse effect on retailers when they do not provide 
set up in connection with the sale of the home, since the retailer's 
duties would not end until an independent third party completed its 
work. HUD has made appropriate revisions to this section, in order to 
clarify when a sale is complete.
    Section 3286.405 Site suitability. HUD agrees with the many 
commenters who stated that it should be the installer's responsibility 
to verify site suitability for the installation of a home. Subpart C of 
the Model Installation Standards includes many site preparation 
requirements that must be performed during the installation of the 
manufactured home. Accordingly, the licensed installer is responsible 
for determining the suitability of the site with regard to the 
requirements in the Model Installation Standards. The requirements are 
not the responsibility of the retailer or manufacturer.
    Section 3286.803(b) Minimum elements. A majority of commenters 
stated that the provision for a state to prove it has adequate funding 
in order to be approved to run its own installation program should be 
removed and is not a requirement of the Act. HUD, however, believes 
that the requirement is appropriate. The final rule should also include 
an additional item that would allow HUD to approve state installation 
programs, provided the state demonstrates an alternative means for 
achieving the end goal of improved manufactured housing.

IV. Section-by-Section Revisions--Changes to Proposed Rule

    In response to the public comments and subsequent reevaluation by 
HUD, the following is a summary, by subpart, of the section-by-section 
revisions being made to the Manufactured Home Installation Program 
proposed rule.

Subpart A--Generally Applicable Provisions and Requirements

    A new paragraph (b), ``Implementation,'' is added to Sec.  3286.1 
to provide for Federal Register publication of an implementation 
schedule for the various components of the installation program. HUD 
will publish a separate notice setting forth a timetable for 
implementation of the elements of the program, for example, the 
program's installer training and licensing requirements, to provide an 
orderly transition to a fully operational installation program.
    Paragraph (d)(2) of Sec.  3286.2 makes clear that states that 
administer their own installation program may regulate subsequent 
installations of manufactured homes. Further, new paragraph (d)(4) was 
added to Sec.  3286.2 recognizing that HUD does not have the authority 
to regulate the installation of manufactured homes on Indian 
reservations.
    In response to comments, certain definitions, including definitions 
for manufactured housing installation instructions and installation, 
have either been added or modified in Sec.  3286.3 of the final rule in 
order to provide clarity.
    Section 3286.5 was modified to provide an overview of the HUD-
administered installation program and the state-administered 
installation programs. The installer requirements are being moved to 
Subpart C, since these requirements are applicable only in states where 
HUD administers the installation program. The manufacturer must also 
include instructions for protecting the interior of the manufactured 
home or sections of homes from damage, pending the first siting of the 
home for occupancy. The instructions must be adequate to ensure that 
the temporary supports and weatherization used will be sufficient to 
prevent the home and its transportable sections from falling out of 
conformance with the Manufactured Housing Construction and Safety 
Standards (MHCSS) in part 3280 of this chapter, if the home or its 
sections is either:
    (i) Stored at any location for more than 30 days; or
    (ii) In the possession of any entity for more than 30 days.
    Paragraph (b) of Sec.  3286.7 was revised to require the retailer 
to provide the purchaser or lessee with a consumer disclosure prior to 
execution of the sales contract to purchase, or of the lease agreement 
to lease, a manufactured home. This disclosure must be in a document 
separate from the sales or lease agreement.
    Section 3286.9 was revised to ensure that the manufacturer's 
reporting requirements in the installation program are consistent with 
the reporting requirements in Sec.  3282.552. Form HUD-302 will be used 
to collect the information from the manufacturer.
    The final rule has been revised to require retailers to update the 
tracking and installation information only for homes installed in 
states where HUD administers the installation program; therefore, Sec.  
3286.13 is being moved to Sec.  3286.113.

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

    A new Sec.  3286.102, that details the information that the 
manufacturer must provide to retailers or distributors, was added. It 
also requires the manufacturer to include a notice in the installation 
instructions that the home must comply with installation designs and 
instructions that are approved by either the Secretary of HUD or by the 
manufacturer's DAPIA.
    Section 3286.103(a) was revised to require the retailer to provide 
a copy of the manufacturer's DAPIA-approved installation instructions 
for each home. The retailer or manufacturer must also provide an 
installation design and instructions if: (1) the installation requires 
a design that is different from that provided by the manufacturer, and 
(2) the retailer or manufacturer agrees to provide any set up in 
connection with the sale of the home.
    A new paragraph (b) has been added to Sec.  3286.105 that requires 
the retailer or manufacturer to ensure that the installer is licensed 
if the retailer or manufacturer agrees to provide any set up in 
connection with the sale or lease of the home.
    Section 3286.107 has been revised to require installers to comply 
with the manufacturer's installation design, or with alternative 
designs and instructions that were prepared by a professional engineer 
or registered architect, as long as the alternative designs and 
instructions have been reviewed and approved by the manufacturer and 
its DAPIA.
    A new paragraph (a)(4) has been added to Sec.  3286.107 that 
clearly sets out that any installation defect caused by the installer's 
work is the joint responsibility of the installer and of the retailer 
or manufacturer that retained the installer. A new Sec.  3286.107(a)(5) 
also makes them jointly and severally liable for the correction of any 
failures

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to comply with the installation standards.
    Section 3286.109 was revised to require the installer to certify, 
and the inspector to verify, that the home has been installed in 
accordance with the requirements of Sec.  3286.107(a) before the home 
can be occupied.
    Section 3286.113 was revised to delete references to the sale of 
the home and instead require retailers to provide tracking information 
and installation information only for homes installed in states where 
HUD administers the installation program. The proposed rule required 
the tracking information to be provided to HUD for all homes. The 
option of the Internet-based tracking system established by HUD was 
deleted. Retailer record retention requirements were shortened from 5 
to 3 years.
    Section 3286.115 of the proposed rule was revised to include the 
date that the installer certified that all required inspections were 
completed as part of the date of installation.
    Section 3286.117 was modified to redefine the completion of sale 
date.

Subpart C--Installer Licensing in HUD-Administered States

    Section 3286.205(d) was revised to require an applicant for an 
installation license to obtain, when available in the state of 
installation, a surety bond or insurance that will cover the cost of 
repairing all damage to the home and its supports caused by the 
installer during the installation. The value of such bond or insurance 
must cover the costs of repair of any incidents that render the home 
defective, up to and including replacement of the home. The proposed 
rule required the installer to maintain general liability insurance in 
the amount of at least $1 million. This change will link the 
installer's costs more closely to the number of homes installed, rather 
than imposing a level cost regardless of the number of homes installed. 
Smaller installation operations that have a lesser volume of 
installations will benefit from this requirement.

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

    Section 3286.303(d) was revised to shorten the period during which 
trainers and continuing education providers must retain records from 5 
to 3 years.

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

    Section 3286.405(b) was revised to require the installer to 
identify the reasons why a site is unsuitable for installation when the 
installer has found that a site is unsuitable. The installer is also 
required to notify HUD of the site's unsuitability, in addition to 
notifying the retailer when it has made such a finding.
    Two new paragraphs, (c) and (d), were added to Sec.  3286.405. 
These paragraphs make clear that if the installer notices and 
recognizes any failures to comply with the construction and safety 
standards in part 3280 of this chapter prior to beginning any 
installation work, during the course of the installation work, or after 
the installation work is complete, the installer must notify the 
manufacturer and the retailer of each failure to comply. Additionally, 
the retailer must provide a copy of the notification received in 
paragraphs (b) (site suitability) and (c) (construction and safety 
failures) of this section to any subsequent installer.
    Section 3286.409(d) was removed.
    Section 3286.411(c) was modified and moved to Sec.  3286.113.
    Section 3286.413(b) was revised to shorten the period during which 
installers must retain records from the 5 years set out in the 
Manufactured Home Installation Program proposed rule to 3 years.

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

    A new paragraph (c) was added to Sec.  3286.503 requiring the 
installer to provide installation instructions to the inspector.
    Section 3286.507(a) was revised to clarify that the installation 
verification provided by the inspector must be in writing.
    International Code Council-certified inspectors were added to the 
list of qualified inspectors in Sec.  3286.511(a).

Subpart G--Retailer Responsibilities in HUD-Administered States

    A new paragraph (c) was added to Sec.  3286.603 that requires the 
retailer or manufacturer to verify that the installer is licensed when 
the retailer or manufacturer agrees to provide any set up in connection 
with the sale or lease of the home.

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

    The sections in subpart H are the same as in the proposed rule. 
They are not revised by this final rule.

Subpart I--State Programs

    Sections 3286.801 and 3286.803(a) were revised to clarify that 
states that administer their own installation programs may do so either 
as part of their approved state plan or under Subpart I of the 
Manufactured Home Installation Program rule.
    The time frames in Sec.  3286.805(c) were revised to 90 days based 
on a comment from the MHCC that the time frames be consistent and that 
90 days is a reasonable time frame for both actions.
    Section 3286.807 was revised to require states to submit a new 
State Installation Program Certification form to the Secretary for 
review every 5 years after the state's most recent certification as a 
qualified installation program.

V. 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). The docket file is available for public inspection between 8 
a.m. and 5 p.m. weekdays in the Office of the Rules Docket Clerk, 
Office of General Counsel, Department of Housing and Urban Development, 
451 Seventh Street, SW., Room 10276, Washington, DC 20410-0500. Due to 
security measures at the HUD Headquarters building, please schedule an 
appointment to review the docket file by calling the Regulations 
Division at 202-708-3055 (this is not a toll-free number). Hearing-or 
speech-impaired individuals may access this number through TTY by 
calling the toll-free Federal Information Relay Service at 1-800-877-
8339.

Paperwork Reduction

    The information collection requirements contained in this final 
rule have been approved by OMB under the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3520) and assigned OMB Control Number 2502-0253. 
In accordance with the Paperwork Reduction Act, HUD may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information, unless the collection displays a currently valid OMB 
control number.

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 rule does not impose any 
federal mandates on any state, local, or tribal government or the 
private sector

[[Page 35274]]

within the meaning of the Unfunded Mandates Reform Act of 1995.

Environmental Review

    A Finding of No Significant Impact with respect to the environment 
was made at the proposed rule stage 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)) and remains 
applicable to this final rule. 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. Due to security measures at the 
HUD Headquarters building, please schedule an appointment to review the 
docket file by calling the Regulations Division at 202-708-3055 (this 
is not a toll-free number). Hearing-or speech-impaired individuals may 
access this number through TTY by calling the toll-free Federal 
Information Relay Service at 1-800-877-8339.

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 (the Act) (42 U.S.C. 5401-5426). However, in 
accordance with the Act and as set forth in this proposed rule, this 
Manufactured Home Installation Program is not preemptive. Therefore, 
HUD has determined that the Model Installation Standards, if adopted, 
have no federalism implications that warrant the preparation of a 
Federalism Assessment in accordance with Executive Order 13132.

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. 
Agencies must evaluate the impact of a rule on small entities and 
describe their efforts to minimize the adverse impacts.
    As part of the proposed rule, HUD prepared an Initial Regulatory 
Flexibility Analysis (IRFA) that evaluated the potential economic 
impact on the small entities the regulations would affect, including: 
manufacturers, retailers, installers, and trainers. Pursuant to the 
requirements of the Regulatory Flexibility Act (5 U.S.C. 603), HUD 
prepared a Final Regulatory Flexibility Analysis (FRFA), which follows 
in its entirety.

Manufactured Home Installation Program Final Regulatory Flexibility 
Analysis: Reason That the Action Is Being Considered

    On December 27, 2000, the National Manufactured Housing 
Construction and Safety Standards Act of 1974 (42 U.S.C. 5401-5426) was 
amended by the Manufactured Housing Improvement Act of 2000, which, 
among other things, requires 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 the Department.

Objective of the Final Rule

    The objective of the final rule is to establish the Manufactured 
Home Installation Program in each state that does not have an 
installation program established by state law and establish the 
requirements that must be met by a state to implement and administer 
its own installation program. The Manufactured Home Installation 
Program includes:
     Systems for tracking and certifying manufactured home 
installations;
     Licensing requirements for individuals and entities to 
qualify to install a manufactured home, which include required 
experience, training, testing, and proof of liability insurance;
     Requirements for individuals or entities for providing the 
required training;
     Responsibilities of the installer who is accountable for 
the installation of the manufactured home;
     Inspection requirements that must be performed by a 
qualified inspector;
     Responsibilities for retailers of manufactured homes in 
states that do not have qualifying installation programs;
     Enforcement mechanisms to ensure the proper installation 
of manufactured homes; and
     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.

Summary of Significant Issues Raised by Public Comment

    There were a total of 35 commenters on the June 14, 2006, proposed 
rule. Twenty-seven of the commenters were from the manufactured home 
industry, including manufacturers, component suppliers, retailers, 
installers, trade associations, and community operators. Five 
commenters were from State Administrative Agencies (SAAs). The 
remaining commenters included one member of the insurance industry, a 
consumer group, and the Manufactured Housing Consensus Committee 
(MHCC).
    None of the comments received addressed the IRFA. However, the 
Department did receive two general comments regarding the Regulatory 
Flexibility Analysis summary in the preamble of the proposed rule. The 
comments were:
     ``While HUD's proposed rule does include a cost-impact 
estimate under the Regulatory Flexibility Act--showing a projected cost 
increase of $974 for a single-section home and $1,023 for a double-
section home in HUD-administered states--there is no evidence that HUD 
has considered the affordability of the proposed installation program 
as a function of the affordable housing mandates.''
     ``Overall cost impact for installation is a large concern 
for the industry. It is stated that a single-wide will increase 
approximately $974 and multi-section will increase approximately $1,023 
in states where HUD would administer the installation program. In some 
parts of the U.S. this can make the purchase of a manufactured home 
unaffordable.''
    In developing the proposed rule, the Department developed an 
installation program that implemented the statutory requirements 
outlined in the Act, while balancing protection for the consumer with 
the economic impact on small entities. Appendix A of the IRFA indicates 
that the five regulatory requirements in the proposed rule with the 
largest individual economic impact account for approximately 86 percent 
of total estimated cost increase of a manufactured home. The 
information in Table 1 summarizes these findings and a discussion 
follows for each summary:

[[Page 35275]]



                                 Table 1
------------------------------------------------------------------------
                                            Cost impact     Cost impact
    Summary of regulatory requirement       per single       per multi
------------------------------------------------------------------------
Regulation establishing liability                $302.52         $302.52
 insurance for installers in states
 without a qualifying installation
 program................................
Regulation requiring the inspection of            300.00          350.00
 every manufactured home installation in
 states without a qualifying
 installation program...................
Regulation establishing initial training          102.86          102.86
 for installers in states without a
 qualifying installation program........
Regulation establishing continuing                 71.09           71.09
 education for installers in states
 without a qualifying installation
 program................................
Regulation establishing recordkeeping              62.02           62.02
 requirements for installers in states
 without a qualifying installation
 program. Requires that all information
 must be kept for 5 years...............
------------------------------------------------------------------------

    1. Liability Insurance--Section 3286.205(d) of the proposed rule 
required an applicant for an installation license to provide evidence 
of general liability insurance in the amount of at least $1 million. 
The Department received comments suggesting eliminating or reducing the 
limits on the provision. Additional commenters suggested including a 
surety or insurance bond to protect the consumers from faulty 
installation designs or incomplete work.
    The Department agrees with the commenters that surety or insurance 
bonds would provide better protection to the consumer than the 
liability insurance requirement. Therefore, the Department replaced the 
liability insurance requirement in the proposed rule with a surety 
bond/insurance requirement that is sufficient to cover the cost of 
repairing all damage to the home and its supports caused by the 
installer during the installation of the home. (See Sec.  3286.205(d) 
in the final rule). This change also reduced the burden on small 
entities.
    2. Inspections--Section 3286.505 of the proposed rule required each 
manufactured home installed in states where HUD administers the 
installation program to be inspected. Section 605 of the Act (42 U.S.C. 
5404) calls for the establishment of an installation program that 
includes inspection of the installation of manufactured homes. Many 
commenters suggested inspecting less than 100 percent of all 
installations. The Department does not have any evidence that suggests 
such an inspection program would provide sufficient consumer 
protection; therefore, the final rule remains unchanged.
    3. Installer Training--Section 3286.205(b)(1) of the proposed rule 
required an applicant for an installation license to complete 12 hours 
of training in states where HUD administers the installation program. 
Section 605 of the Act (42 U.S.C. 5404) calls for the establishment of 
an installation program that includes installer training. The 
Department did not receive any comments regarding the initial training 
of installers; therefore, the final rule remains unchanged.
    4. Installer Continuing Education--Section 3286.205(b)(2) of the 
proposed rule required the licensed installer in states where HUD 
administers the installation program to complete 8 hours of continuing 
education during the 3-year license period to qualify for renewal of an 
installation license. The Department did not receive any comments 
regarding the continuing education requirement for installers; 
therefore, the final rule remains unchanged.
    5. Installer Records--Section 3286.413 of the proposed rule 
required that installers maintain the required records for 5 years 
after the installer certifies completion of the home in states where 
HUD administers the installation program. Fifteen commenters suggested 
reducing the record retention requirement to 3 years. The Department 
agreed and changed the record retention requirement to 3 years in the 
final rule.

Description and Estimated Number of Small Entities Regulated

    The final rule will apply to any business that manufactures, sells 
or leases, or installs manufactured homes. The rule also contains 
requirements for persons to qualify to provide the training required 
for installers. This rule also establishes 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.
    The rule has differing requirements for the regulated entities 
depending on whether the home is being installed in a state with a 
qualified installation program or a state covered by the HUD-
administered program.
    The information presented in Table 2 was gathered from data 
collected by the Office of Manufactured Housing Programs based on the 
available data for 2006. The number of states expected to administer an 
installation program is estimated based on close correspondence with 
state representatives regarding the state's intentions.

                                 Table 2.--Regulated Entities and Small Entities
----------------------------------------------------------------------------------------------------------------
                                                    Number of     Small Business                   Percentage of
  North American Industrial     Description of      regulated     Administration     Number of       regulated
   Classification Schedule      primary  entity     entities      size standard   small entities     entities
----------------------------------------------------------------------------------------------------------------
                     All States--The requirements in Subpart A are applicable in all states
----------------------------------------------------------------------------------------------------------------
321991.......................  Manufacturers...             222  500 employees..             198              89
453930.......................  Retailers.......            5151  500 employees..            5151             100
----------------------------------------------------------------------------------------------------------------
  States Without Installation Programs--The requirements in Subparts B through H are applicable in these states
----------------------------------------------------------------------------------------------------------------
453930.......................  Retailers.......             340  500 employees..             340             100
238990.......................  Installers......            1021  $12 million....            1021             100
611519.......................  Trainers........              50  $6 million.....              50             100
----------------------------------------------------------------------------------------------------------------

[[Page 35276]]

 
         States With Installation Programs--The requirements in Subpart I are applicable in these states
----------------------------------------------------------------------------------------------------------------
                               States..........              35  50,000                        0               0
                                                                  population.
----------------------------------------------------------------------------------------------------------------

    Description of the projected reporting, recordkeeping, and other 
compliance requirements of the final rule, including an estimate of the 
classes of small entities that will be subject to the requirement and 
the type of professional skills necessary for preparation of the report 
or record.
    The final rule contains information collection requirements, 
installer licensing requirements, installer surety bond/insurance 
requirements, installation inspection requirements, installer trainer 
registration, and certification of states administering an installation 
program. Appendix A provides a detailed cost analysis of each section 
of the final rule.
    Identification, to the extent practicable, of all relevant federal 
rules that may duplicate, overlap, or conflict with the final rule.
    The Department is unaware of any conflicting federal rules. The 
final rule requires similar 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). 
Section 3282.553 (24 CFR 3282.553) requires each IPIA to provide the 
information in the monthly label reports to the Department. This 
information is currently provided on OMB-approved form HUD-302. Section 
3286.9 in the final rule requires the manufacturer to provide similar 
information to the Department for the purposes of installation.
    To eliminate the possible duplication of reporting requirements, 
the Department revised form HUD-302 such that the information required 
in 24 CFR 3282.552 and 3286.9 may be provided in a single form 
completed by the manufacturer. This revised form is part of the 
Department's Paperwork Reduction Act submission.
    Description of any significant alternatives that accomplish the 
stated objectives of applicable statutes that minimize any significant 
economic impact of the proposed rule on small entities, including 
alternatives considered.
    The section Summary of Significant Issues Raised by Public Comment 
discusses the five regulatory requirements in the proposed and final 
rules that have the greatest economic impact on small entities. 
Additional alternatives were also considered during the development of 
the final rule as a result of the public comment.
    Alternative 1. Section 3286.5(b)(2) requires the manufacturer to 
include instructions for supporting the manufactured home temporarily, 
pending the first siting of the home for occupancy.
    Alternative Considered--The Department considered eliminating this 
requirement as the result of public comment; 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 considering the 
small costs associated with this section. Furthermore, the Department 
received additional comments stating the provisions are beneficial and 
should remain in the final rule.
    Alternative 2. Section 3286.7(b) requires the retailer to provide 
the purchaser or lessee with a consumer disclosure prior to the 
purchase or lease of a manufactured home.
    Alternative Considered--The Department considered eliminating this 
requirement as a result of public comment; however, the majority of 
public comment was in favor of the disclosure because of the importance 
of consumer protection during the purchase or lease of a manufactured 
home. This consumer protection justifies the small costs associated 
with this section.
    Alternative 3. Section 3286.9(d) of the proposed rule required the 
manufacturer to include installation instructions in each home 
regardless of state.
    Alternative Considered--A single commenter suggested requiring the 
manufacturer to provide installation instructions only in homes 
installed in states where HUD administers the installation program. 
Section 605 of the Act (42 U.S.C. 5404) requires the manufacturer to 
provide the design and instructions for the installation of each 
manufactured home, that have been approved by a design approval 
inspection agency; therefore, the requirement is consistent with the 
statutory requirement. (See Sec.  3286.9(b) of the final rule.)
    Alternative 4. Section 3286.13(a) of the proposed rule required the 
retailer or distributor to maintain for 5 years a copy of the sales or 
lease record for all homes sold or leased regardless of state.
    Alternative Considered--The Department revised the final rule 
requiring the retailer or distributor to maintain a copy of the sales 
or lease record for homes sold or leased in states where HUD 
administers the installation program for 3 years (See section 
3286.113(e) of the final rule). This reduces the recordkeeping burden 
on retailers and distributors.
    Alternative 5. Section 3286.103(a) of the proposed rule required 
retailers and distributors to provide the purchaser 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. * * *''
    Many commenters agreed that the retailer should provide the 
purchaser with a copy of the DAPIA-approved installation instructions 
for every home in states where HUD administers the installation 
program. However, many commenters said the retailer should not be 
required to provide an installation design and instructions that differ 
from the DAPIA-approved installation instruction if the retailer has 
not agreed to provide any setup in connection with the sale of the home 
and the installation requires a design that is different from that 
provided by the manufacturer for the home. HUD agrees that the retailer 
or manufacturer should provide the installation design and instructions 
only for installations that require designs that differ from those 
provided by the manufacturer when the retailer or

[[Page 35277]]

manufacturer agrees to provide any setup in connection with the sale of 
the home. The proposed rule placed the entire burden of providing the 
installation instructions on the retailer.
    Accordingly, the final rule has been revised to require: (1) The 
retailer to provide the purchaser with a copy of the DAPIA-approved 
installation instructions for each manufactured home, and (2) the 
retailer or manufacturer to provide to the installer the installation 
design and instructions for installations that require designs that 
differ from those provided by the manufacturer, when the retailer or 
manufacturer agrees to provide any setup in connection with the sale of 
the home (See Sec.  3286.103(b) of the final rule).
    Alternative 6. Section 3286.211(a) of the proposed rule set an 
expiration date of 3 years for installation licenses issued in states 
where HUD administers the installation program.
    A single commenter suggested extending the term of the license to 5 
years to reduce the burden on installers. Another commenter suggested 
reducing the licensing term to one year to ensure installers are 
knowledgeable of new installation requirements. The term of the license 
remains 3 years in the final rule to balance the burden on installers 
and HUD, while ensuring installers are kept up to date on updates to 
the Model Installation Standards.
    Alternative 7. Record Retention Requirements--The proposed rule 
requires that installers, retailers, and trainers maintain the required 
records for 5 years in states where HUD administers the installation 
program.
    Alternative Considered--The Department agreed with the 15 
commenters that suggested reducing the record retention requirement to 
3 years. The Department agreed and changed the record retention 
requirement to 3 years in the final rule, thereby reducing record 
retention burden on small entities.

[[Page 35278]]



                          Appendix A.--24 CFR part 3286: Manufactured Housing Installation Program Cost Impact Analysis Matrix
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Cost        Cost       Annual
                                                Number of              impact per  impact per     cost        Total
         Section            Regulated party      parties    Number of    single-     multi-    impact per    annual            Cost impact notes
                                                affected      homes      section     section    regulated     cost
                                                                          home        home        party      impact
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sec.   3286.1...........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section sets forth the
                                                                                                                        purpose of Subpart A. The
                                                                                                                        requirements in Subpart A apply
                                                                                                                        to all manufactured homes
                                                                                                                        regardless of the state of
                                                                                                                        installation. There is no cost
                                                                                                                        associated with this section.
Sec.   3286.2...........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section sets forth the
                                                                                                                        applicability of all subparts.
                                                                                                                        There is no cost associated with
                                                                                                                        this section.
Sec.   3286.3...........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section sets forth terms and
                                                                                                                        definitions in this part. There
                                                                                                                        is no cost associated with this
                                                                                                                        section.
Sec.   3286.5...........  Manufacturer.......         222     135,000       $0.87       $0.87     $527.03    $117,000  This section provides for an
                                                                                                                        overview of the installation
                                                                                                                        program including the HUD
                                                                                                                        installation program, state
                                                                                                                        installation programs, and
                                                                                                                        manufacturer and retailer
                                                                                                                        requirements. There is no
                                                                                                                        associated cost with this
                                                                                                                        section other than in Sec.
                                                                                                                        3286.5(c)(2). Section
                                                                                                                        3286.5(c)(2) requires the
                                                                                                                        manufacturer to include
                                                                                                                        instructions for supporting the
                                                                                                                        manufactured home temporarily
                                                                                                                        and protecting the interior from
                                                                                                                        damage, pending the first
                                                                                                                        installation 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 or its sections if
                                                                                                                        stored on such supports for more
                                                                                                                        than 30 days. This would include
                                                                                                                        costs for third-party design
                                                                                                                        review and approval (4 hours of
                                                                                                                        DAPIA review and approval
                                                                                                                        labor). The installation
                                                                                                                        instructions themselves are
                                                                                                                        already required under 24 CFR
                                                                                                                        3280. However, this review cost
                                                                                                                        is a one-time annualized total
                                                                                                                        cost averaged on a per-home
                                                                                                                        basis. The Department estimates
                                                                                                                        20 hours to review and revise
                                                                                                                        the instructions at $75 per hour
                                                                                                                        for 78 manuals. This cost is
                                                                                                                        averaged for 135,000 homes and
                                                                                                                        the 78 manuals. (20*75*78)/
                                                                                                                        135,000=$0.867/home.
Sec.   3286.7(a)........  Manufacturer.......         222     135,000        2.55        2.55    1,551.89     344,520  Requires the manufacturer to put
                                                                                                                        a notice in the consumer manual
                                                                                                                        for reinstalled homes. There
                                                                                                                        will be a cost to the
                                                                                                                        manufacturer for this notice.
                                                                                                                        This notice must be provided for
                                                                                                                        ALL homes. The cost to the
                                                                                                                        manufacturer would include the
                                                                                                                        one time cost of developing the
                                                                                                                        disclosure (one hour at $75 per
                                                                                                                        hour per manual), the initial
                                                                                                                        placement in the consumer manual
                                                                                                                        (one hour at $15 per hour per
                                                                                                                        manual), and the continued
                                                                                                                        placement of the disclosure in
                                                                                                                        the consumer manual (10 minutes
                                                                                                                        at $15 per hour). This cost is
                                                                                                                        averaged for 135,000
                                                                                                                        homes.{(1*75*78)+(1*15*78)+(0.16
                                                                                                                        67*15*135,000){time} /
                                                                                                                        135,000=$2.55/home.
Sec.   3286.7(b)........  Retailer...........        5151     135,000        5.36        5.36      140.52     723,825  Requires the retailer to provide
                                                                                                                        the purchaser or lessee with a
                                                                                                                        consumer disclosure. The
                                                                                                                        requirements of this disclosure
                                                                                                                        are also provided for in this
                                                                                                                        section. This notice must be
                                                                                                                        provided for all homes. There
                                                                                                                        will be a cost to the retailer
                                                                                                                        associated with this disclosure.
                                                                                                                        The cost to the retailer would
                                                                                                                        include the one-time cost of
                                                                                                                        developing the disclosure (one
                                                                                                                        hour at $75 per hour) and
                                                                                                                        providing the disclosure to the
                                                                                                                        consumer before the sale of each
                                                                                                                        home (10 minutes at $15 per
                                                                                                                        hour). This cost is averaged for
                                                                                                                        135,000 homes.
                                                                                                                        {(1*75*5151)+(0.1667*15*135,000)
                                                                                                                        {/135,000=$5.36/home.

[[Page 35279]]

 
Sec.   3286.9(a)........  Manufacturer.......         222     135,000        2.50        2.50    1,520.27     337,500  This section requires
                                                                                                                        manufacturers to provide the
                                                                                                                        initial tracking information
                                                                                                                        about each home to HUD. This
                                                                                                                        must be done for all homes
                                                                                                                        regardless of state. Much of
                                                                                                                        this information is currently
                                                                                                                        being provided by manufacturers
                                                                                                                        via form HUD-302. The form HUD-
                                                                                                                        302 will be revised to include
                                                                                                                        the anticipated ship date. There
                                                                                                                        is a cost associated to the
                                                                                                                        manufacturer for providing this
                                                                                                                        information. The cost to the
                                                                                                                        manufacturer will be the time
                                                                                                                        required to provide this
                                                                                                                        additional information to HUD,
                                                                                                                        estimated at 10 minutes per home
                                                                                                                        at $15 per hour. This cost is
                                                                                                                        averaged for 135,000 homes.
                                                                                                                        (0.1667x15*135,000)/
                                                                                                                        135,000=$2.50/home.
Sec.   3286.9(b)........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section requires
                                                                                                                        manufacturers to provide a copy
                                                                                                                        of the DAPIA-approved
                                                                                                                        installation instructions with
                                                                                                                        the home. The costs related to
                                                                                                                        the revisions to the
                                                                                                                        manufacturer's installation
                                                                                                                        instructions have been accounted
                                                                                                                        for in the Model Manufactured
                                                                                                                        Home Installation Standards
                                                                                                                        rule; therefore, the cost is not
                                                                                                                        considered here.
Sec.   3286.11..........  Manufacturer,            20,827     135,000       40.00       40.00      259.28   5,400,000  This section deals with the
                           Retailer,                                                                                    temporary storage of units.
                           Installer.                                                                                   There is a cost associated with
                                                                                                                        the provision requiring the
                                                                                                                        temporary installation
                                                                                                                        instructions. This cost was
                                                                                                                        accounted for in Sec.
                                                                                                                        3286.5(c) above. There is a cost
                                                                                                                        to the manufacturer, retailer,
                                                                                                                        or installer associated with the
                                                                                                                        temporary support of the home
                                                                                                                        and protecting the interior of
                                                                                                                        the home from damage. The cost
                                                                                                                        is estimated at one additional
                                                                                                                        hour for the support and
                                                                                                                        protection of the home (one hour
                                                                                                                        at $40 per hour). The estimate
                                                                                                                        includes the extra time for
                                                                                                                        supporting each home (135,000).
                                                                                                                        (one hour*40*135,000)=$5,400,000
                                                                                                                        or $40/home.
Sec.   3286.13..........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides that 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.
                                                                                                                        This section does not have an
                                                                                                                        associated cost impact.
Sec.   3286.15..........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section states that the
                                                                                                                        Secretary will seek input from
                                                                                                                        the MHCC when revising the
                                                                                                                        installation program regulations
                                                                                                                        in this part 3286, by providing
                                                                                                                        the MHCC an opportunity to
                                                                                                                        comment on any revision. This
                                                                                                                        section does not have any
                                                                                                                        associated cost impact.
Sec.   3286.101.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides for the
                                                                                                                        purpose of Subpart B 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. There is no cost
                                                                                                                        associated with this provision.
Sec.   3286.102(a)......  Manufacturer.......         222       6,750        2.50        2.50       76.01      16,875  This section requires
                                                                                                                        manufacturers to provide notice
                                                                                                                        to the retailer that the
                                                                                                                        tracking information is provided
                                                                                                                        to HUD and that the retailer
                                                                                                                        must update the information as
                                                                                                                        required. This must be done for
                                                                                                                        all homes where HUD administers
                                                                                                                        the installation program. There
                                                                                                                        is a cost associated with this
                                                                                                                        requirement to the manufacturer.
                                                                                                                        The cost to the manufacturer
                                                                                                                        will be the time required to
                                                                                                                        provide a copy of the required
                                                                                                                        form HUD-302 to the retailer.
                                                                                                                        This is estimated at 10 minutes
                                                                                                                        per home at $15 per hour. This
                                                                                                                        cost is averaged for 6,750
                                                                                                                        homes. (0.1667x15*6,750)/
                                                                                                                        6,750=$2.50/home.

[[Page 35280]]

 
Sec.   3286.102(b)......  Manufacturer.......         222       6,750        3.54        3.54      107.64      23,895  This section requires
                                                                                                                        manufacturers to include in its
                                                                                                                        installation instructions for
                                                                                                                        the home a notice that the home
                                                                                                                        is required to be installed in
                                                                                                                        accordance with the two
                                                                                                                        acceptable methods. This must be
                                                                                                                        done for all homes where HUD
                                                                                                                        administers the installation
                                                                                                                        program. There is a cost
                                                                                                                        associated with this requirement
                                                                                                                        to the manufacturer. The cost to
                                                                                                                        the manufacturer entity would
                                                                                                                        include the one-time cost of
                                                                                                                        developing the notice (one hour
                                                                                                                        at $75 per hour), the initial
                                                                                                                        placement in the installation
                                                                                                                        manual (one hour at $15 per
                                                                                                                        hour), and the continued
                                                                                                                        placement of the notice in the
                                                                                                                        installation manual (10 minutes
                                                                                                                        at $15 per hour). This cost is
                                                                                                                        averaged for 6,750 homes.
                                                                                                                        {(1x75x78)+(1x15*78)+(0.1667*15*
                                                                                                                        6,750){time} /6,750=$3.54 home.
Sec.   3286.103(a)(1)...  Retailer...........         340       6,750       $2.50        2.50       49.63      16,875  For each manufactured home sold
                                                                                                                        to a purchaser in a state in
                                                                                                                        which HUD administers an
                                                                                                                        installation program, the
                                                                                                                        retailer must ensure that the
                                                                                                                        purchaser is provided with a
                                                                                                                        copy of the installation
                                                                                                                        instructions. This will have an
                                                                                                                        associated cost to the retailer
                                                                                                                        in HUD states. Since the
                                                                                                                        installation instructions are
                                                                                                                        required to be provided by the
                                                                                                                        manufacturer, with the home, the
                                                                                                                        cost to the retailer will be the
                                                                                                                        cost of providing the
                                                                                                                        instructions to the consumer,
                                                                                                                        estimated at 10 minutes per home
                                                                                                                        at $15 per hour. This cost is
                                                                                                                        averaged for 6,750 homes.
                                                                                                                        6,750(0.16667*15)=$16,875.
Sec.   3286.103(a)(2)...  Manufacturer.......         222       6,750       37.50       37.50    1,140.20     253,125  Requires that the manufacturer/
                                                                                                                        DAPIA approve installation
                                                                                                                        designs and instructions if the
                                                                                                                        installation requires a design
                                                                                                                        that is different from the
                                                                                                                        installation instructions
                                                                                                                        required and accounted for in
                                                                                                                        the Model Manufactured Home
                                                                                                                        Installation Standards. There is
                                                                                                                        a cost associated with this
                                                                                                                        requirement to the manufacturer.
                                                                                                                        The cost to the manufacturer
                                                                                                                        entity would include the cost of
                                                                                                                        approving the site-specific
                                                                                                                        designs estimated to occur in
                                                                                                                        20% of installations. The time
                                                                                                                        is estimated at 2.5 hours at $75/
                                                                                                                        hr. This cost is averaged for
                                                                                                                        6,750 homes.
                                                                                                                        0.2*6,750*2.5*75=$253,125.
Sec.   3286.103(b)......  Retailer...........         340       6,750        2.13        2.13       42.19      14,345  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 a
                                                                                                                        sole proprietor, the individual
                                                                                                                        who performs set up or
                                                                                                                        installation work on the home.
                                                                                                                        This will have an associated
                                                                                                                        cost to the retailer in HUD
                                                                                                                        states. Since the installation
                                                                                                                        instructions are required to be
                                                                                                                        provided by the manufacturer
                                                                                                                        with the home, the cost to the
                                                                                                                        retailer will be the cost of
                                                                                                                        providing the installation
                                                                                                                        instructions, estimated at 10
                                                                                                                        minutes per home. Assume the
                                                                                                                        retailer will provide set up in
                                                                                                                        connection with the sale of the
                                                                                                                        home in 85% of all sales as a
                                                                                                                        conservative estimate. This cost
                                                                                                                        is averaged for 6,750 homes.
                                                                                                                        0.85*0.16667*15*6,750=$14,345.
Sec.   3286.105.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section requires that the
                                                                                                                        installer that installs a
                                                                                                                        manufactured home in a state
                                                                                                                        that does not have a qualifying
                                                                                                                        installation program be
                                                                                                                        certified or licensed in
                                                                                                                        accordance with Subpart C. The
                                                                                                                        cost associated with this is
                                                                                                                        evaluated in Subpart C.

[[Page 35281]]

 
Sec.   3286.107.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  These sections set forth
                                                                                                                        requirements that, at a minimum,
                                                                                                                        the installation must comply
                                                                                                                        with the manufacturer's
                                                                                                                        installation instructions or the
                                                                                                                        alternative design by a
                                                                                                                        professional engineer or
                                                                                                                        registered architect approved by
                                                                                                                        the manufacturer and DAPIA. The
                                                                                                                        cost associated with these
                                                                                                                        requirements was evaluated as
                                                                                                                        part of the final rule for the
                                                                                                                        Model Manufactured Home
                                                                                                                        Installation Standards and Sec.
                                                                                                                         3286.103; therefore, is not
                                                                                                                        included here.
Sec.   3286.109.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  The installer or the retailer
                                                                                                                        must arrange for the inspection
                                                                                                                        of the installation work on any
                                                                                                                        manufactured home. 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.
                                                                                                                        3286.109(a). The requirements
                                                                                                                        for installer certification are
                                                                                                                        set and accounted for in Sec.
                                                                                                                        3286.111.
Sec.   3286.111(a)(1)...  Installer..........       1,021       6,750       20.00       20.00      132.22     135,000  When the installation work is
                                                                                                                        complete, an installer must
                                                                                                                        certify that: 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
                                                                                                                        installation standards in part
                                                                                                                        3285 of this chapter and the
                                                                                                                        installation of the home has
                                                                                                                        been inspected as required by
                                                                                                                        part 3286 and an inspector has
                                                                                                                        verified the installation as
                                                                                                                        meeting the requirements of this
                                                                                                                        part 3286. There will be costs
                                                                                                                        associated with the provisions
                                                                                                                        in this section to the installer
                                                                                                                        for homes that are sited in
                                                                                                                        states without a qualifying
                                                                                                                        installation program. The cost
                                                                                                                        to the installer would include
                                                                                                                        the time to complete specific
                                                                                                                        information required for each
                                                                                                                        individual certification (30
                                                                                                                        minutes at $40 per hour). This
                                                                                                                        cost is averaged for 6,750
                                                                                                                        homes. (0.5*40*6,750)=$135,000.
Sec.   3286.111(a)(2)...  Installer..........       1,021       6,750      300.00      350.00    2,214.74   2,261,250  This section provides that 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 to ensure
                                                                                                                        it complies with the
                                                                                                                        requirements of part 3285 of
                                                                                                                        this chapter. This provision
                                                                                                                        will have an associated cost for
                                                                                                                        the installations in that they
                                                                                                                        are subject to the HUD-
                                                                                                                        administered installation
                                                                                                                        program. The cost associated
                                                                                                                        with this provision will be
                                                                                                                        borne by the installer. Many of
                                                                                                                        the homes inspected by local
                                                                                                                        jurisdictions may not incur an
                                                                                                                        additional cost for the
                                                                                                                        inspection beyond the existing
                                                                                                                        permitting and inspection fees
                                                                                                                        already borne by the installer.
                                                                                                                        However, in areas without local
                                                                                                                        jurisdictions, the installer
                                                                                                                        will have to pay a qualified
                                                                                                                        third party to inspect the
                                                                                                                        installation. Estimating that
                                                                                                                        each inspection for a single-
                                                                                                                        wide unit and double-wide unit
                                                                                                                        will take 3 hours and 3.5 hours,
                                                                                                                        respectively, at a rate of $100
                                                                                                                        per hour for each installation
                                                                                                                        in a HUD-administered
                                                                                                                        installation state provides a
                                                                                                                        conservative estimate of the
                                                                                                                        cost.
Sec.   3286.111(b)......  Installer..........       1,021       6,750        2.50        2.50       16.53      16,875  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. There
                                                                                                                        will be costs associated with
                                                                                                                        the provisions in this section
                                                                                                                        to the installer for homes that
                                                                                                                        are sited in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        The cost to the retailer will be
                                                                                                                        the cost of providing the
                                                                                                                        information to HUD, estimated at
                                                                                                                        10 minutes per home at $15 per
                                                                                                                        hour. This cost is averaged for
                                                                                                                        6,750 homes.
                                                                                                                        6,750*(0.16667*15)=$16,875.

[[Page 35282]]

 
Sec.   3286.113(a)......  Retailer...........         340       6,750        3.75        3.75       74.45      25,312  The retailer or distributor of
                                                                                                                        the home must provide HUD with
                                                                                                                        tracking information about the
                                                                                                                        home within 30 days from the
                                                                                                                        time that a purchaser or lessee
                                                                                                                        enters into a contract to
                                                                                                                        purchase or lease a manufactured
                                                                                                                        home. This must be done for all
                                                                                                                        homes in states in which HUD
                                                                                                                        administers the installation
                                                                                                                        program. There is a cost
                                                                                                                        associated with this requirement
                                                                                                                        to the retailer. The cost to the
                                                                                                                        retailer will be the time
                                                                                                                        required to provide this
                                                                                                                        information to HUD estimated at
                                                                                                                        15 minutes per home at $15 per
                                                                                                                        hour. This cost is averaged for
                                                                                                                        6,750 homes. (0.25x15*6,750)/
                                                                                                                        6,750=$3.75/home.
Sec.   3286.113(b)......  Retailer...........         340       6,750        3.75        3.75       74.45      25,312  In addition to the information
                                                                                                                        required to be provided by the
                                                                                                                        retailer pursuant to Sec.
                                                                                                                        3286.113(a), within 30 days from
                                                                                                                        the date of installation, the
                                                                                                                        retailer must provide HUD with
                                                                                                                        additional information regarding
                                                                                                                        the installation. There will be
                                                                                                                        costs associated with the
                                                                                                                        provisions in this section to
                                                                                                                        the retailer for homes that are
                                                                                                                        sited in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        The cost to the retailer would
                                                                                                                        include the time to complete
                                                                                                                        specific information required
                                                                                                                        for each individual concurrence
                                                                                                                        (15 minutes at $15 per hour).
                                                                                                                        This cost is averaged for 6,750
                                                                                                                        homes. (0.25*15*6,750)/
                                                                                                                        6,750=3.75.
Sec.   3286.113(c)......  Retailer...........  ..........  ..........  ..........  ..........  ..........  ..........  This section provides for the
                                                                                                                        method in which the information
                                                                                                                        in Sec.  Sec.   3286.113(a) and
                                                                                                                        (b) can be provided. There is no
                                                                                                                        cost associated with this
                                                                                                                        provision.
Sec.   3286.113(d)......  Retailer...........         340         675        0.38        0.38        7.44       2,531  This section provides for the
                                                                                                                        correction of information in
                                                                                                                        Sec.  Sec.   3286.113(a) and
                                                                                                                        (b). There is a cost associated
                                                                                                                        with this provision to the
                                                                                                                        retailers in states where HUD
                                                                                                                        administers the installation
                                                                                                                        program. The cost to the
                                                                                                                        retailer would include the time
                                                                                                                        to correct the specific
                                                                                                                        information. It is estimated
                                                                                                                        that 10% of the information will
                                                                                                                        have to be corrected taking 15
                                                                                                                        minutes for each response at $15
                                                                                                                        per hour. This cost is averaged
                                                                                                                        for 6,750 homes in HUD states.
                                                                                                                        0.1*(0.25*15*6,750)=$2,531.25.
                                                                                                                        The cost per home=$2,531.25/
                                                                                                                        6,750=$0.38.
Sec.   3286.113(e)......  Retailer...........         340       6,750       41.30       41.30      820.00     278,800  This section requires that
                                                                                                                        retailers must maintain sales
                                                                                                                        records for 3 years. There is a
                                                                                                                        cost associated with this
                                                                                                                        provision to the retailers in
                                                                                                                        states where HUD administers the
                                                                                                                        installation program. The cost
                                                                                                                        is estimated as the required
                                                                                                                        time (filing and organization of
                                                                                                                        files at 4 hours/month at $15
                                                                                                                        hour) and materials to keep such
                                                                                                                        storage (file cabinets and
                                                                                                                        computer disk space $100).
                                                                                                                        340($100+4*12*$15)=$278,800.
Sec.   3286.115.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section defines the date of
                                                                                                                        installation. There is no cost
                                                                                                                        associated with this provision.
Sec.   3286.117.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section defines the
                                                                                                                        completion of sale. There is no
                                                                                                                        cost associated with this
                                                                                                                        provision.
Sec.   3286.201.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section outlines the purpose
                                                                                                                        of Subpart C, which is to
                                                                                                                        establish the requirements for a
                                                                                                                        person to qualify to install a
                                                                                                                        manufactured home in accordance
                                                                                                                        with the HUD-administered
                                                                                                                        installation program. No costs
                                                                                                                        are associated with this
                                                                                                                        section.
Sec.   3286.203.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides when a
                                                                                                                        license is needed and when a
                                                                                                                        license is not needed. No costs
                                                                                                                        are associated with this
                                                                                                                        provision. The cost of the
                                                                                                                        license is addressed in Sec.
                                                                                                                        3286.205 and Sec.   3286.207.

[[Page 35283]]

 
Sec.   3286.205(a)......  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides for the
                                                                                                                        required experience for
                                                                                                                        installers in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        There is no cost associated with
                                                                                                                        this provision.
Sec.   3286.205(b)(1)...  Installer..........       1,021       6,750      102.86      102.86      680.00     694,280  This section provides for the
                                                                                                                        required initial training for
                                                                                                                        installers in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        There is a cost associated with
                                                                                                                        this provision for installers.
                                                                                                                        The cost associated with this
                                                                                                                        requirement is estimated as the
                                                                                                                        cost for the 12-hour training
                                                                                                                        class (approximately $200) and
                                                                                                                        the missed wages (12*$40 per
                                                                                                                        hour) while attending the class.
                                                                                                                        This cost is averaged for 6,750
                                                                                                                        homes.
                                                                                                                        (200+(12*40))*1,021=$694,280.
Sec.   3286.205(b)(2)...  Installer..........       1,021       6,750       71.09       71.09      470.00     479,870  This section provides for the
                                                                                                                        continuing education for
                                                                                                                        installers in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        There is a cost associated with
                                                                                                                        this provision for installers.
                                                                                                                        The cost associated with this
                                                                                                                        requirement is estimated as the
                                                                                                                        cost for the 8-hour continuing
                                                                                                                        education classes (approximately
                                                                                                                        $150) and the missed wages while
                                                                                                                        attending the class (8*40 per
                                                                                                                        hour). These provisions will not
                                                                                                                        be applicable until 3 years
                                                                                                                        after the implementation of the
                                                                                                                        program, i.e., when the initial
                                                                                                                        licenses begin to expire. This
                                                                                                                        cost is averaged for 6,750
                                                                                                                        homes.
                                                                                                                        (150+(8*40))*1,021=$479,870.
Sec.   3286.205(c)......  Installer..........       1,021       6,750        9.66        9.66      130.00     132,730  This section provides for the
                                                                                                                        testing requirement for
                                                                                                                        installers in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        There is a cost associated with
                                                                                                                        this provision for installers.
                                                                                                                        The cost associated with this
                                                                                                                        requirement is estimated as the
                                                                                                                        cost for the testing fee
                                                                                                                        (approximately $50) and the
                                                                                                                        missed wages while attending the
                                                                                                                        exam (2)*$40 per hour. This cost
                                                                                                                        is averaged for 6,750 homes.
                                                                                                                        (50+(2*40))*1,021=$132,730.
Sec.   3286.205(d)......  Installer..........       1,021       6,750      226.89      226.89    1,500.00   1,531,500  This section provides for the
                                                                                                                        surety bond and insurance
                                                                                                                        requirements for installers in
                                                                                                                        states without a qualifying
                                                                                                                        installation program. There is a
                                                                                                                        cost associated with this
                                                                                                                        provision for installers. The
                                                                                                                        cost associated with the premium
                                                                                                                        estimated from insurance company
                                                                                                                        and surety bond companies will
                                                                                                                        be approximately $1,500 per
                                                                                                                        year. This cost is averaged for
                                                                                                                        6,750 homes.
Sec.   3286.207(a)......  Installer..........       1,021       6,750        6.05        6.05       40.00      40,840  This section requires the
                                                                                                                        installer to complete an
                                                                                                                        application for the license in
                                                                                                                        states without a qualifying
                                                                                                                        installation program. There will
                                                                                                                        be costs associated with this
                                                                                                                        provision to installers in
                                                                                                                        states without a qualifying
                                                                                                                        installation program. The cost
                                                                                                                        associated with this requirement
                                                                                                                        is estimated as the cost for the
                                                                                                                        installer to read the
                                                                                                                        instructions and complete the
                                                                                                                        form. The cost is estimated at
                                                                                                                        one hour at $40 per hour.
Sec.   3286.207(b)......  Installer..........       1,021       6,750        6.05        6.05       40.00      40,840  This section requires the
                                                                                                                        installer to provide proof of
                                                                                                                        experience in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        There will be costs associated
                                                                                                                        with this provision to
                                                                                                                        installers in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        The cost associated with this
                                                                                                                        requirement is estimated as the
                                                                                                                        cost for the installer to
                                                                                                                        provide written verification of
                                                                                                                        the experience. The cost is
                                                                                                                        estimated at one hour at $40 per
                                                                                                                        hour.
Sec.   3286.207(c)......  Installer..........       1,021       6,750        1.51        1.51       10.00      10,210  This section requires the
                                                                                                                        installer to provide proof of
                                                                                                                        training in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        There will be costs associated
                                                                                                                        with this provision to
                                                                                                                        installers in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        The cost associated with this
                                                                                                                        requirement is estimated as the
                                                                                                                        cost for the installer to copy
                                                                                                                        the training certificate of
                                                                                                                        completion. The cost is
                                                                                                                        estimated at 0.25 hour at $40
                                                                                                                        per hour.

[[Page 35284]]

 
Sec.   3286.207(d)......  Installer..........       1,021       6,750        1.51        1.51       10.00      10,210  This section requires the
                                                                                                                        installer to provide proof of
                                                                                                                        the surety bond or insurance in
                                                                                                                        states without a qualifying
                                                                                                                        installation program. There will
                                                                                                                        be costs associated with this
                                                                                                                        provision to installers in
                                                                                                                        states without a qualifying
                                                                                                                        installation program. The cost
                                                                                                                        associated with this requirement
                                                                                                                        is estimated as the cost for the
                                                                                                                        installer to copy the
                                                                                                                        appropriate documents and
                                                                                                                        provide proof of payment. The
                                                                                                                        cost is estimated at 0.25 hour
                                                                                                                        at $40 per hour.
Sec.   3286.207(e)......  Installer..........       1,021       6,750        0.50        0.50        3.33       3,403  This section requires the
                                                                                                                        installer to provide a list of
                                                                                                                        states in which they hold or
                                                                                                                        have held installer licenses.
                                                                                                                        There will be costs associated
                                                                                                                        with this provision to
                                                                                                                        installers in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        The cost associated with this
                                                                                                                        requirement is estimated as the
                                                                                                                        cost for the installer to
                                                                                                                        provide the list of states. It
                                                                                                                        is expected that this will only
                                                                                                                        apply to approximately half of
                                                                                                                        the applicants. The cost is
                                                                                                                        estimated at 5 minutes at $40
                                                                                                                        per hour.
Sec.   3286.207(f)(1)...  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides for the
                                                                                                                        issuance or denial of an
                                                                                                                        installation license. No cost is
                                                                                                                        associated with this provision.
Sec.   3286.207(f)(2)...  Installer..........       1,021       6,750        0.09        0.09        0.59         600  This section allows the applicant
                                                                                                                        who is denied an installation
                                                                                                                        license an opportunity for a
                                                                                                                        presentation of views for the
                                                                                                                        purpose of establishing the
                                                                                                                        applicant's qualifications to
                                                                                                                        obtain an installation license.
                                                                                                                        There will be costs associated
                                                                                                                        with this provision to
                                                                                                                        installers in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        The cost associated with this
                                                                                                                        requirement is estimated as the
                                                                                                                        cost for the installer to
                                                                                                                        request the presentation of
                                                                                                                        views. It is estimated that 2%
                                                                                                                        of the applicants applying for
                                                                                                                        an installation license will
                                                                                                                        request such a presentation
                                                                                                                        (approximately 20 installers).
                                                                                                                        The cost is estimated at 45
                                                                                                                        minutes at $40 per hour for 20
                                                                                                                        applicants. (45/60*$40*20)/
                                                                                                                        6,750=$0.09 per home.
Sec.   3286.207(g)......  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section does not allow
                                                                                                                        transfer of licenses to other
                                                                                                                        entities. No cost is associated
                                                                                                                        with this provision.
Sec.   3286.209.........  Installer..........       1,021       6,750        0.09        0.09        0.59         600  This section provides for the
                                                                                                                        oversight of licensed
                                                                                                                        installers; the processes for
                                                                                                                        denial, suspension, or
                                                                                                                        revocation of an installation
                                                                                                                        license; and the reinstatement
                                                                                                                        of an installation license in
                                                                                                                        states without a qualifying
                                                                                                                        installation program. There are
                                                                                                                        no costs associated with the
                                                                                                                        provisions in this section other
                                                                                                                        than paragraph (d) in this
                                                                                                                        section. The cost associated
                                                                                                                        with this requirement is
                                                                                                                        estimated as the cost for the
                                                                                                                        installer to apply for a new
                                                                                                                        license. It is estimated that
                                                                                                                        less than 1% of the applicants
                                                                                                                        (10) will have their licenses
                                                                                                                        denied, suspended, or revoked.
                                                                                                                        The cost is estimated at 90
                                                                                                                        minutes at $40 per hour for 10
                                                                                                                        applicants. (90/60*$40*10)/
                                                                                                                        6,750=$0.09 per home.
Sec.   3286.211.........  Installer..........       1,021       6,750        6.05        6.05       40.00      40,840  This section provides for
                                                                                                                        expiration and the process for
                                                                                                                        renewal of an installation
                                                                                                                        license in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        There are costs associated with
                                                                                                                        the provisions in paragraph (b)
                                                                                                                        in this section to installers.
                                                                                                                        The cost associated with this
                                                                                                                        requirement is estimated as the
                                                                                                                        cost for the installer to read
                                                                                                                        the instructions and complete
                                                                                                                        the form. The cost is estimated
                                                                                                                        at one hour at $40 per hour.

[[Page 35285]]

 
Sec.   3286.301.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section discusses the
                                                                                                                        purpose of Subpart D. The
                                                                                                                        purpose 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. No costs are associated
                                                                                                                        with this provision.
Sec.   3286.303(a)......  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section requires that
                                                                                                                        qualified trainers must
                                                                                                                        adequately address the
                                                                                                                        curriculum and instruction-time
                                                                                                                        requirements established in
                                                                                                                        Subparts C and D of this part.
                                                                                                                        There is no cost associated with
                                                                                                                        this provision.
Sec.   3286.303(b)......  Trainer............          50       6,750       12.30       12.30    1,660.00      83,000  This section requires qualified
                                                                                                                        trainers to maintain records of
                                                                                                                        the times, locations, names of
                                                                                                                        attendees at each session, and
                                                                                                                        content of all courses offered.
                                                                                                                        There is a cost associated with
                                                                                                                        this provision to trainers in
                                                                                                                        states without a qualifying
                                                                                                                        installation program. The cost
                                                                                                                        is estimated as the required
                                                                                                                        time (filing and organization of
                                                                                                                        files at 2 hours a week at $15
                                                                                                                        per hour) and materials to keep
                                                                                                                        such storage (file cabinets and
                                                                                                                        computer disk space $100). This
                                                                                                                        cost will be passed on to
                                                                                                                        installers through the cost of
                                                                                                                        the training class, and it is
                                                                                                                        conceivable that the installer
                                                                                                                        will pass this cost to the
                                                                                                                        consumer.
Sec.   3286.303(c)......  Trainer............          50       6,750        1.51        1.51      204.20      10,210  This section requires qualified
                                                                                                                        trainers to provide completion
                                                                                                                        certificates to course
                                                                                                                        attendees. There is a cost
                                                                                                                        associated with this provision
                                                                                                                        to trainers in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        The cost is estimated at 10
                                                                                                                        minutes per certificate at $60
                                                                                                                        per hour. This cost will be
                                                                                                                        passed on to installers through
                                                                                                                        the cost of the training class,
                                                                                                                        and it is conceivable that the
                                                                                                                        installer will pass this cost to
                                                                                                                        the consumer.
Sec.   3286.303(d)......  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section requires qualified
                                                                                                                        trainers to retain all records
                                                                                                                        for 3 years. There is a cost
                                                                                                                        associated with this provision
                                                                                                                        to trainers in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        The cost is estimated in Sec.
                                                                                                                        3286.303(b) above.
Sec.   3286.303(e)......  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section may allow qualified
                                                                                                                        trainers to administer exams.
                                                                                                                        Since this is not a requirement,
                                                                                                                        there is no cost associated with
                                                                                                                        this provision.
Sec.   3286.305.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides for the
                                                                                                                        installation trainer criteria,
                                                                                                                        including experience and
                                                                                                                        curriculum. There are no costs
                                                                                                                        associated with the provisions
                                                                                                                        in this section other than
                                                                                                                        paragraph (c) of this section.
                                                                                                                        Paragraph (c) requires
                                                                                                                        registration to be considered a
                                                                                                                        qualified trainer. An individual
                                                                                                                        or other training entity must
                                                                                                                        submit to HUD certification that
                                                                                                                        training provided will meet the
                                                                                                                        requirements in Sec.  Sec.
                                                                                                                        3286.308 and 3286.309. The cost
                                                                                                                        associated with this requirement
                                                                                                                        is considered in Sec.
                                                                                                                        3286.307(c)(2).
Sec.   3286.307(a)......  Trainer............          50       6,750        0.44        0.44       60.00       3,000  This section requires the trainer
                                                                                                                        to submit an application. There
                                                                                                                        is a cost associated with this
                                                                                                                        provision. The cost associated
                                                                                                                        with this requirement is
                                                                                                                        estimated as the cost for the
                                                                                                                        trainer to read the instructions
                                                                                                                        and complete the form. The cost
                                                                                                                        is estimated at one hour at $60
                                                                                                                        per hour. This cost will be
                                                                                                                        passed on to installers through
                                                                                                                        the cost of the training class,
                                                                                                                        and it is conceivable that the
                                                                                                                        installer will pass this cost to
                                                                                                                        the consumer.
Sec.   3286.307(b)......  Trainer............          50       6,750        0.44        0.44       60.00       3,000  This section requires the trainer
                                                                                                                        to submit proof of experience.
                                                                                                                        There is a cost associated with
                                                                                                                        this provision. The cost
                                                                                                                        associated with this requirement
                                                                                                                        is estimated as the cost for the
                                                                                                                        installer to provide written
                                                                                                                        verification of the experience.
                                                                                                                        The cost is estimated at one
                                                                                                                        hour at $60 per hour. This cost
                                                                                                                        will be passed on to installers
                                                                                                                        through the cost of the training
                                                                                                                        class, and it is conceivable
                                                                                                                        that the installer will pass
                                                                                                                        this cost to the consumer.

[[Page 35286]]

 
Sec.   3286.307(c)(1)...  Trainer............          50       6,750        0.11        0.11       15.00         750  This section requires the trainer
                                                                                                                        to submit a list of all states
                                                                                                                        where the applicant has had a
                                                                                                                        similar training qualification
                                                                                                                        revoked, suspended, or denied.
                                                                                                                        There is a cost associated with
                                                                                                                        this provision to the trainer.
                                                                                                                        The cost associated with this
                                                                                                                        requirement is the cost for the
                                                                                                                        trainer to provide the list of
                                                                                                                        states. The cost is estimated at
                                                                                                                        0.25 hour at $60 per hour. This
                                                                                                                        cost will be passed on to
                                                                                                                        installers through the cost of
                                                                                                                        the training class, and it is
                                                                                                                        conceivable that the installer
                                                                                                                        will pass this cost to the
                                                                                                                        consumer.
Sec.   3286.307(c)(2)...  Trainer............          50       6,750        0.22        0.22       30.00       1,500  This section requires the trainer
                                                                                                                        to submit a certification that
                                                                                                                        training provided is in
                                                                                                                        accordance with Subpart D and
                                                                                                                        will meet the curriculum
                                                                                                                        requirements established in Sec.
                                                                                                                         Sec.   3286.308 or 3286.309, as
                                                                                                                        applicable. There is a cost
                                                                                                                        associated with this provision
                                                                                                                        to the trainer. The cost
                                                                                                                        associated with this requirement
                                                                                                                        is estimated as the cost for the
                                                                                                                        trainer to provide the
                                                                                                                        certification. The cost is
                                                                                                                        estimated at 0.50 hour at $60
                                                                                                                        per hour. This cost will be
                                                                                                                        passed on to installers through
                                                                                                                        the cost of the training class,
                                                                                                                        and it is conceivable that the
                                                                                                                        installer will pass this cost to
                                                                                                                        the consumer.
Sec.   3286.307(d)......  Trainer............          50       6,750        0.01        0.01        0.90          45  This section provides for the
                                                                                                                        confirmation or denial of
                                                                                                                        trainer qualification. There
                                                                                                                        will be costs associated with
                                                                                                                        this paragraph in states without
                                                                                                                        a qualifying installation
                                                                                                                        program. The cost associated
                                                                                                                        with this requirement is
                                                                                                                        estimated as the cost for the
                                                                                                                        trainer to request the
                                                                                                                        presentation of views. It is
                                                                                                                        estimated that 2% of the
                                                                                                                        applicants applying to be
                                                                                                                        qualified trainers will request
                                                                                                                        such a presentation. The cost is
                                                                                                                        estimated at 45 minutes at $60
                                                                                                                        per hour for 2% of the
                                                                                                                        applicants. (45/60*$60*0.02)(50)/
                                                                                                                        6,750=$0.01 per home.
Sec.   3286.307(e)......  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section prohibits the
                                                                                                                        assignment of trainer
                                                                                                                        qualification to other entities.
                                                                                                                        There is no cost associated with
                                                                                                                        this section.
Sec.   3286.308.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides for the
                                                                                                                        training curriculum
                                                                                                                        requirements. There is no cost
                                                                                                                        associated with the provisions
                                                                                                                        in this section.
Sec.   3286.309.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides for the
                                                                                                                        continuing education trainer and
                                                                                                                        curriculum requirements. There
                                                                                                                        is no cost associated with the
                                                                                                                        provisions in this section.
Sec.   3286.311.........  Trainer............          50       6,750        0.01        0.01        0.90          45  This section provides for the
                                                                                                                        suspension or revocation of the
                                                                                                                        trainer's qualification. There
                                                                                                                        are no costs associated with the
                                                                                                                        provisions in this section other
                                                                                                                        than paragraphs (b) and (d) of
                                                                                                                        this section. Paragraphs (b) and
                                                                                                                        (d) provide for the presentation
                                                                                                                        of views for the qualified
                                                                                                                        trainer prior to suspension or
                                                                                                                        revocation of qualification
                                                                                                                        status. There will be costs
                                                                                                                        associated with this provision
                                                                                                                        to trainers in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        The cost associated with this
                                                                                                                        requirement is estimated as the
                                                                                                                        cost for the installer to
                                                                                                                        request the presentation of
                                                                                                                        views. It is estimated that 2%
                                                                                                                        of the qualified trainers will
                                                                                                                        request such a presentation. The
                                                                                                                        cost is estimated at 45 minutes
                                                                                                                        at $60 per hour for 2% of the
                                                                                                                        qualified trainers. (45/
                                                                                                                        60*$60*0.02)(50)/6,750=$0.01 per
                                                                                                                        home.

[[Page 35287]]

 
Sec.   3286.313.........  Trainer............          50       6,750        0.44        0.44       60.00       3,000  This section provides for the
                                                                                                                        process for renewal of a
                                                                                                                        trainer's qualification in
                                                                                                                        states without a qualifying
                                                                                                                        installation program. There are
                                                                                                                        costs associated with the
                                                                                                                        provisions in paragraph (b) in
                                                                                                                        this section to trainers. The
                                                                                                                        cost associated with this
                                                                                                                        requirement is estimated as the
                                                                                                                        cost for the trainer to read the
                                                                                                                        instructions and complete the
                                                                                                                        form for renewal. The cost is
                                                                                                                        estimated at one hour at $60 per
                                                                                                                        hour. This cost will be passed
                                                                                                                        on to installers through the
                                                                                                                        cost of the class and is a
                                                                                                                        potential increase to the price
                                                                                                                        of the home.
Sec.   3286.401.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section discusses the
                                                                                                                        purpose of Subpart E. The
                                                                                                                        purpose of 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. There is no cost
                                                                                                                        associated with this section.
Sec.   3286.403.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides that an
                                                                                                                        installer of manufactured homes
                                                                                                                        must comply with the licensing
                                                                                                                        requirements set forth in
                                                                                                                        Subpart C of this part. There is
                                                                                                                        no cost associated with this
                                                                                                                        section. The cost of licensing
                                                                                                                        was done in the analysis of
                                                                                                                        Subpart C.
Sec.   3286.405(a)......  Installer..........       1,021       6,750       20.00       20.00      132.22     135,000  This section requires that the
                                                                                                                        installer verify that the site
                                                                                                                        is appropriate for the
                                                                                                                        installation. There will be a
                                                                                                                        cost associated with this
                                                                                                                        requirement. The cost associated
                                                                                                                        with this requirement will
                                                                                                                        require the installer to conduct
                                                                                                                        a site investigation. It is
                                                                                                                        estimated that this
                                                                                                                        investigation will take 0.5 hour
                                                                                                                        at $40 per hour. The cost will
                                                                                                                        be averaged for 6,750 homes.
Sec.   3286.405(b)......  Installer..........       1,021       6,750        0.20        0.20        1.33       1,360  This section requires that the
                                                                                                                        installer notify the retailer,
                                                                                                                        purchaser, and HUD if the site
                                                                                                                        is not appropriate for the
                                                                                                                        installation. There will be a
                                                                                                                        cost associated with this
                                                                                                                        requirement. The cost associated
                                                                                                                        with this requirement is
                                                                                                                        estimated as the cost for the
                                                                                                                        installer to provide the written
                                                                                                                        notification to the retailer.
                                                                                                                        This notification is estimated
                                                                                                                        to take 0.5 hour at $40 per
                                                                                                                        hour. It is estimated that this
                                                                                                                        notification will only be
                                                                                                                        required in 1% of installations.
                                                                                                                        The cost will be averaged for
                                                                                                                        6,750 homes.
Sec.   3286.405(c)......  Installer..........       1,021       6,750        0.20        0.20        1.33       1,360  This section requires that the
                                                                                                                        installer notify the
                                                                                                                        manufacturer and retailer if a
                                                                                                                        failure to comply with the
                                                                                                                        construction and safety
                                                                                                                        standards is noticed during the
                                                                                                                        installation. There will be a
                                                                                                                        cost associated with this
                                                                                                                        requirement. The cost associated
                                                                                                                        with this requirement is
                                                                                                                        estimated as the cost for the
                                                                                                                        installer to provide the written
                                                                                                                        notification to the manufacturer
                                                                                                                        and retailer. This notification
                                                                                                                        is estimated to take 0.5 hour at
                                                                                                                        $40 per hour. It is estimated
                                                                                                                        that this notification will only
                                                                                                                        be required in 1% of
                                                                                                                        installations. The cost will be
                                                                                                                        averaged for 6,750 homes.
Sec.   3286.405(d)......  Retailer...........         340       6,750        0.10        0.10        2.00         680  This section requires that the
                                                                                                                        retailer provide a copy of the
                                                                                                                        notification in (b) and (c)
                                                                                                                        above to any subsequent
                                                                                                                        installers. There will be a cost
                                                                                                                        associated with this
                                                                                                                        requirement. The cost associated
                                                                                                                        with this requirement is
                                                                                                                        estimated as the cost for the
                                                                                                                        retailer to provide a copy of
                                                                                                                        the notification above to any
                                                                                                                        subsequent installer. This
                                                                                                                        notification is estimated to
                                                                                                                        take 15 minutes at $40 per hour.
                                                                                                                        The cost will be averaged for 1%
                                                                                                                        of homes installed in states
                                                                                                                        where HUD administers the
                                                                                                                        installation program.
Sec.   3286.407.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section requires that the
                                                                                                                        installer 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. There is no cost
                                                                                                                        associated with the requirement.
Sec.   3286.409.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides information
                                                                                                                        regarding the inspection
                                                                                                                        requirements. There is a cost
                                                                                                                        associated with the requirement.
                                                                                                                        The cost regarding the
                                                                                                                        inspection is evaluated in Sec.
                                                                                                                         3286.111(a)(2).

[[Page 35288]]

 
Sec.   3286.411(a)......  Installer..........  ..........  ..........  ..........  ..........  ..........  ..........  When the installation work is
                                                                                                                        complete, an installer must
                                                                                                                        certify that: 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
                                                                                                                        installation standards in part
                                                                                                                        3285 of this chapter, and the
                                                                                                                        installation of the home has
                                                                                                                        been inspected as required by
                                                                                                                        this part Sec.   3286 and an
                                                                                                                        inspector has verified the
                                                                                                                        installation as meeting the
                                                                                                                        requirements of this part Sec.
                                                                                                                        3286. There will be costs
                                                                                                                        associated with the provisions
                                                                                                                        in this section to the installer
                                                                                                                        for homes that are sited in
                                                                                                                        states without a qualifying
                                                                                                                        installation program. This
                                                                                                                        provision is the same as Sec.
                                                                                                                        3286.111(a); therefore, the cost
                                                                                                                        is not calculated here.
Sec.   3286.411(b)......  Installer..........  ..........  ..........  ..........  ..........  ..........  ..........  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. There
                                                                                                                        will be costs associated with
                                                                                                                        the provisions in this section
                                                                                                                        to the installer for homes that
                                                                                                                        are sited in states without a
                                                                                                                        qualifying installation program.
                                                                                                                        This provision is the same as
                                                                                                                        Sec.   3286.111(b); therefore,
                                                                                                                        the cost is not calculated here.
Sec.   3286.413.........  Installer..........       1,021       6,750      124.03      124.03      820.00     837,220  This section provides for the
                                                                                                                        record-keeping requirements for
                                                                                                                        installers. It outlines all of
                                                                                                                        the information that must be
                                                                                                                        kept and mandates that it be
                                                                                                                        kept for 3 years. This section
                                                                                                                        will have an associated cost to
                                                                                                                        the installer in states without
                                                                                                                        qualifying installation
                                                                                                                        programs. The cost is estimated
                                                                                                                        as the required time (filing and
                                                                                                                        organization of files at 4 hours
                                                                                                                        a month at $15 per hour) and
                                                                                                                        materials to keep such storage
                                                                                                                        (file cabinets and computer disk
                                                                                                                        space $100). The cost will be
                                                                                                                        averaged for the 6,750 homes.
Sec.   3286.501.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section discusses the
                                                                                                                        purpose of Subpart F. The
                                                                                                                        purpose of 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. There is no cost
                                                                                                                        associated with this section.
Sec.   3286.503(a)......  Installer..........       1,021       6,750       20.00       20.00      132.22     135,000  This section requires the
                                                                                                                        installer to arrange for an
                                                                                                                        inspection and provides for the
                                                                                                                        timing of the inspection. There
                                                                                                                        is a cost associated with this
                                                                                                                        requirement to the installer. It
                                                                                                                        is estimated that the installer
                                                                                                                        will take 0.5 hour at $40 per
                                                                                                                        hour per installation to arrange
                                                                                                                        for the inspection of the
                                                                                                                        installation.
                                                                                                                        0.5*40*6,750=$135,000.
Sec.   3286.503(b)......  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides for the
                                                                                                                        retailer disclosure requirement.
                                                                                                                        There are costs associated with
                                                                                                                        the retailer disclosure
                                                                                                                        requirements; however, this is
                                                                                                                        accounted for in Sec.
                                                                                                                        3286.7(b).
Sec.   3286.503(c)......  Installer..........       1,021       6,750       20.00       20.00      132.22     135,000  This section requires the
                                                                                                                        installer to provide a copy of
                                                                                                                        the installation instructions to
                                                                                                                        the inspector. There is a cost
                                                                                                                        associated with this provision
                                                                                                                        and it is estimated at $20 per
                                                                                                                        installation.

[[Page 35289]]

 
Sec.   3286.505.........  Installer..........  ..........  ..........  ..........  ..........  ..........  ..........  This section provides that 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 to ensure
                                                                                                                        it complies with the
                                                                                                                        requirements of part 3285 of
                                                                                                                        this chapter. This provision
                                                                                                                        will have an associated cost for
                                                                                                                        the installations that are
                                                                                                                        subject to the HUD-administered
                                                                                                                        installation program. The cost
                                                                                                                        associated with this provision
                                                                                                                        is accounted for in Sec.
                                                                                                                        3286.111(a)(2).
Sec.   3286.507(a)......  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section requires that when
                                                                                                                        an inspector is satisfied that
                                                                                                                        the manufactured home has been
                                                                                                                        installed in accordance with the
                                                                                                                        requirements; the inspector must
                                                                                                                        provide verification in writing
                                                                                                                        to the installer. There are
                                                                                                                        costs associated with these
                                                                                                                        provisions which have been
                                                                                                                        included in Sec.
                                                                                                                        3286.111(a)(2).
Sec.   3286.507(b)......  Installer..........  ..........  ..........  ..........  ..........  ..........  ..........  Once an installation has been
                                                                                                                        inspected and verified, the
                                                                                                                        installer is permitted to
                                                                                                                        certify the installation as
                                                                                                                        provided in Sec.   3286.111.
                                                                                                                        There are costs associated with
                                                                                                                        these provisions; however, they
                                                                                                                        have been determined in Sec.
                                                                                                                        3286.111(a).
Sec.   3286.509(a)......  Installer..........       1,021       6,750        2.25        2.25       14.88      15,187  This section provides for the
                                                                                                                        reinspection of the installation
                                                                                                                        upon failure to pass. This
                                                                                                                        section contains procedures for
                                                                                                                        failed inspections, request for
                                                                                                                        review, and cost for
                                                                                                                        reinspection. This section does
                                                                                                                        have costs associated with the
                                                                                                                        provisions. It is estimated that
                                                                                                                        5% of homes will need to be
                                                                                                                        reinspected in accordance with
                                                                                                                        this section. The cost is
                                                                                                                        estimated at 30 minutes for the
                                                                                                                        inspector to notify the
                                                                                                                        installer at $90 per hour.
                                                                                                                        0.05*(30/
                                                                                                                        60*90)*6,750=$15,187.50.
Sec.   3286.509(b)......  Installer..........       1,021       6,750       10.00       10.00       66.11      67,500  This section provides that the
                                                                                                                        cost of reinspection of the
                                                                                                                        installation upon failure to
                                                                                                                        pass must be paid by the
                                                                                                                        retailer or installer. This
                                                                                                                        section does have a cost
                                                                                                                        associated with it and is
                                                                                                                        estimated at $200 for the
                                                                                                                        reinspection and verification.
                                                                                                                        It is estimated that only 5% of
                                                                                                                        homes will require reinspection.
Sec.   3286.511(a) and    ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides the
 (b).                                                                                                                   inspector qualifications and
                                                                                                                        inspector independence clause in
                                                                                                                        states that are subject to the
                                                                                                                        HUD-administered installation
                                                                                                                        program. There is no cost
                                                                                                                        associated with these
                                                                                                                        provisions.
Sec.   3286.511(c)......  Inspector..........       4,000  ..........  ..........  ..........        0.19         750  This section allows the inspector
                                                                                                                        a presentation of views prior to
                                                                                                                        suspension or revocation of an
                                                                                                                        inspector's authority to inspect
                                                                                                                        manufactured home installations.
                                                                                                                        There is a cost associated with
                                                                                                                        this provision. It is estimated
                                                                                                                        that less than five inspectors a
                                                                                                                        year will request a presentation
                                                                                                                        of views. The cost would not
                                                                                                                        have an impact on the cost of
                                                                                                                        manufactured homes. The cost to
                                                                                                                        the inspector is estimated at
                                                                                                                        1.5 hours at $100 per hour for
                                                                                                                        five inspectors. (1.5
                                                                                                                        hours*$100)(5)=$750. This cost
                                                                                                                        will not affect the cost of the
                                                                                                                        manufactured home.
Sec.   3286.511(d)......  Inspector..........       4,000  ..........  ..........  ..........        0.19         750  This section allows the inspector
                                                                                                                        whose qualification has been
                                                                                                                        suspended or revoked to apply
                                                                                                                        for reauthorization. There will
                                                                                                                        be costs associated with this
                                                                                                                        provision to the inspector. The
                                                                                                                        cost associated with this
                                                                                                                        requirement is estimated as then
                                                                                                                        cost for the trainer to apply
                                                                                                                        for qualifications. It is
                                                                                                                        estimated that less than five
                                                                                                                        inspectors will have their
                                                                                                                        qualifications suspended or
                                                                                                                        revoked. The cost is estimated
                                                                                                                        at 90 minutes at $100 per hour
                                                                                                                        for five inspectors. (90/
                                                                                                                        60*$100*5)=$750. This cost will
                                                                                                                        not affect the cost of the
                                                                                                                        manufactured home.

[[Page 35290]]

 
Sec.   3286.601.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section discusses the
                                                                                                                        purpose of Subpart G. The
                                                                                                                        purpose of this subpart 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. There are no costs
                                                                                                                        associated with these
                                                                                                                        provisions.
Sec.   3286.603.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides for
                                                                                                                        retailer requirements at or
                                                                                                                        before sale. Specifically, the
                                                                                                                        retailer disclosure to the
                                                                                                                        purchaser and temporary support.
                                                                                                                        There are costs associated with
                                                                                                                        this section; however, these
                                                                                                                        costs have been calculated in
                                                                                                                        Sec.   3286.7(b).
Sec.   3286.605.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  This section provides for
                                                                                                                        retailer requirements after
                                                                                                                        sale; specifically, the tracking
                                                                                                                        of the installation, retailer
                                                                                                                        concurrence on the
                                                                                                                        certification, and other
                                                                                                                        tracking and compliance
                                                                                                                        requirements. There are costs
                                                                                                                        associated with this section;
                                                                                                                        however, these costs have been
                                                                                                                        calculated for Sec.   3286.113
                                                                                                                        and are not repeated here.
Sec.   3286.607.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  Provides that the retailer is
                                                                                                                        responsible for the reporting
                                                                                                                        and recordkeeping requirements
                                                                                                                        under Sec.   3286.113. There are
                                                                                                                        costs associated with this
                                                                                                                        section; however, they have been
                                                                                                                        determined in Sec.
                                                                                                                        3286.113(e).
Sec.   3286.701.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  Provides the purpose of Subpart
                                                                                                                        H. The purpose of 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. There are no
                                                                                                                        costs associated with this
                                                                                                                        section.
Sec.   3286.703.........  All................      24,927  ..........  ..........  ..........  ..........         450  Provides for penalties and
                                                                                                                        injunctive relief for failures
                                                                                                                        to comply, the presentation-of-
                                                                                                                        views, and the procedures for
                                                                                                                        investigations. These provisions
                                                                                                                        have an associated cost with the
                                                                                                                        presentation-of-views
                                                                                                                        requirement. It is estimated
                                                                                                                        that less that 10 requests for
                                                                                                                        presentation of views will be
                                                                                                                        requested that have not been
                                                                                                                        accounted for in the other
                                                                                                                        specific section. The cost would
                                                                                                                        not have an impact on the cost
                                                                                                                        of manufactured homes. The cost
                                                                                                                        to the inspector is estimated at
                                                                                                                        45 minutes at $60 per hour for
                                                                                                                        10 instances. (45/
                                                                                                                        60*$60)(10)=$450.
Sec.   3286.705.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  Provides for the discussion of
                                                                                                                        the dispute resolution program.
                                                                                                                        These provisions do not have an
                                                                                                                        associated cost.
Sec.   3286.801.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  Provides the purpose of Subpart
                                                                                                                        I. The purpose of 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. There are
                                                                                                                        no costs associated with this
                                                                                                                        section.
Sec.   3286.803.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  Provides for the requirements for
                                                                                                                        a qualified State Installation
                                                                                                                        Program stating that a qualified
                                                                                                                        State installation program
                                                                                                                        supersedes the HUD-administered
                                                                                                                        installation program, a state
                                                                                                                        installation program must
                                                                                                                        include the minimum elements to
                                                                                                                        be approved, and the provisions
                                                                                                                        for conditional acceptance.
                                                                                                                        There are no costs associated
                                                                                                                        with this section.

[[Page 35291]]

 
Sec.   3286.805(a)......  State..............          35  ..........  ..........  ..........       80.00       2,800  This section requires states
                                                                                                                        seeking identification as a
                                                                                                                        qualified installation program
                                                                                                                        to submit a completed State
                                                                                                                        Installation Program
                                                                                                                        Certification Form to the
                                                                                                                        Secretary for review and
                                                                                                                        acceptance. There will be a cost
                                                                                                                        to the state to complete this
                                                                                                                        certification. The estimated
                                                                                                                        cost will include the time of
                                                                                                                        one staff person for 2 hours at
                                                                                                                        $40 per hour. The cost would not
                                                                                                                        have an impact on the cost of
                                                                                                                        manufactured homes.
Sec.   3286.805(b)......  ...................  ..........  ..........  ..........  ..........  ..........  ..........  HUD will review the state plan
                                                                                                                        and contact the state regarding
                                                                                                                        the application. There is no
                                                                                                                        cost associated with this
                                                                                                                        provision.
Sec.   3286.805(c)......  State..............          35  ..........  ..........  ..........        2.29          80  Provides for the presentation of
                                                                                                                        views by the states if rejecting
                                                                                                                        the certification. It is
                                                                                                                        estimated that less than 1% of
                                                                                                                        states applying to administer
                                                                                                                        their own installation program
                                                                                                                        will request a presentation of
                                                                                                                        views. The cost to the state is
                                                                                                                        estimated at 120 minutes at $40
                                                                                                                        per hour for 1 state
                                                                                                                        application. (120/
                                                                                                                        60*$40)(1)=$80. The cost would
                                                                                                                        not have an impact on the cost
                                                                                                                        of manufactured homes.
Sec.   3286.807.........  State..............          35  ..........  ..........  ..........       40.00       1,400  This section requires that states
                                                                                                                        submit a new State Installation
                                                                                                                        Program Certification Form to
                                                                                                                        the Secretary for review every 3
                                                                                                                        years to maintain its status as
                                                                                                                        having a qualified installation
                                                                                                                        program. There will be a cost to
                                                                                                                        the state to complete this
                                                                                                                        certification. The estimated
                                                                                                                        cost will include the time of
                                                                                                                        one staff person for one hour at
                                                                                                                        $40 per hour. The cost would not
                                                                                                                        have an impact on the cost of
                                                                                                                        manufactured homes.
Sec.   3286.809.........  State..............          35  ..........  ..........  ..........        2.29          80  This section states that whenever
                                                                                                                        the Secretary finds 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. There will
                                                                                                                        be a cost to the state to
                                                                                                                        complete this request. The
                                                                                                                        estimated cost will include the
                                                                                                                        time of one staff person for 1
                                                                                                                        hour at $40 per hour for an
                                                                                                                        estimated 2 states.
                                                                                                                        (1*40*2)=$80. The cost would not
                                                                                                                        have an impact on the cost of
                                                                                                                        manufactured homes.
Sec.   3286.811.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  Provides that 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 Sec.   3286. 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.
                                                                                                                        There are no costs associated
                                                                                                                        with this section.
Sec.   3286.813.........  ...................  ..........  ..........  ..........  ..........  ..........  ..........  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. There are no costs
                                                                                                                        associated with this section.
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 35292]]

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.

0
Accordingly, HUD adds 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 Waiver of rights invalid.
3286.15 Consultation with the Manufactured Housing Consensus 
Committee (MHCC).
Subpart B--Certification of Installation in HUD-Administered States
3286.101 Purpose.
3286.102 Information provided by manufacturer.
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 Installation 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.
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 housing 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.

    (a) 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 with 
a qualifying installation program.
    (b) Implementation. This part is effective on October 20, 2008. 
Implementation will be undertaken in accordance with the phased-in 
schedule provided by notice published in the Federal Register.


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; or
    (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 installed 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. State installation programs may regulate 
subsequent installations of manufactured homes.
    (4) Any manufactured home installed on Indian reservations.


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.  3286.111, 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.

[[Page 35293]]

    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 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 completion of work done specified in Sec.  
3286.505 to stabilize, support, anchor, and close up a manufactured 
home and 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 defect means any defect in the performance, 
installation, installation components, installation material, or close-
up of a manufactured home that renders the home or any part thereof not 
fit for the ordinary use for which it was intended or otherwise takes 
the home out of compliance with the Manufactured Home Construction and 
Safety Standards in 24 CFR part 3280.
    Installation design means drawings, specifications, sketches, and 
the related engineering calculations, tests, and data in support of the 
installation configurations and systems to be incorporated in the 
installation of manufactured homes.
    Installation instructions means DAPIA-approved instructions 
provided by the home manufacturer that accompany each new manufactured 
home and detail the home manufacturer requirements for support and 
anchoring systems and other work completed at the installation site to 
comply with the Model Manufactured Home Installation Standards in 24 
CFR part 3285 and the Manufactured Home Construction and Safety 
Standards in 24 CFR part 3280.
    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 or entity 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 the first person who leases a manufactured home from a 
retailer after the initial installation.
    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. 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).
    Resident means any person residing in the manufactured home.

[[Page 35294]]

    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.
    Set up 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) HUD-administered installation program. HUD will administer the 
installation program, as established and set out in subparts A through 
H of this part, in a state unless that state administers its own 
qualifying installation program. The states in which HUD administers an 
installation program can be identified under this part by referring to 
a list on a Web site maintained by HUD or by calling HUD. For 
convenience only, the current URL of the Web site is http://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 1-800-927-2891, extension 57.
    (b) State-administered installation programs. States that have 
qualifying installation 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) 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 or sections of homes temporarily and 
protecting the interior of the manufactured home or sections of homes 
from damage, pending the first siting of the home for occupancy. The 
instructions must be adequate to assure that the temporary supports and 
weatherization 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 either:
    (i) Stored at any location for more than 30 days; or
    (ii) In the possession of any entity for more than 30 days.
    (d) 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. Prior to execution 
of the sales contract to purchase or agreement to lease a manufactured 
home, the retailer must provide the purchaser or lessee with a consumer 
disclosure. This disclosure must be in a document separate from the 
sales or lease agreement. The disclosure must include the following 
information, as applicable:
    (1) When the installation of the home is 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 all state requirements for the installation of the home;
    (2) When the installation of the home is 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, 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 may also be required to comply with 
additional state and 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;
    (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. At or before the time that each 
manufactured home is shipped by a manufacturer, the manufacturer must 
provide HUD, through the Production Inspection Primary Inspection 
Agency (IPIA), in accordance with Sec.  3282.552 of this chapter, with 
information, as applicable, about:
    (1) The serial number and manufacturer's certification label number 
of the home;
    (2) The manufacturer of the home; and
    (3) The name and address of the retailer or distributor that has 
arranged for the home to be shipped.
    (b) Manufacturer's installation instructions. The manufacturer is 
required to provide with each manufactured home, installation designs 
and instructions for the installation of the manufactured home that 
have been approved by a DAPIA. A DAPIA must give approval only if the 
installation designs and instructions provide equal or greater 
protection than the protection provided under the installation 
standards.


Sec.  3286.11  Temporary storage of units.

    Pursuant to Sec.  3286.5(c), the manufacturer is required to 
provide instructions for the temporary support and protection of the 
interior from damage of its manufactured homes or sections of homes. 
Every manufacturer, distributor, retailer, or installer that has 
possession of a home is required to support each transportable section 
of a manufactured home that is temporarily located on a site used by 
that manufacturer, distributor, retailer, or

[[Page 35295]]

installer in accordance with the manufacturer's instructions.


Sec.  3286.13  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.  3286.15  Consultation with the Manufactured Housing Consensus 
Committee (MHCC).

    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 a 120-day 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 Procedure 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 supersede section 605 of the National Manufactured 
Housing Construction and Safety Standards Act.

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.  3286.102  Information provided by manufacturer.

    (a) 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.  3286.113. Such notice must 
include all of the information required in Sec.  3286.9(a). The 
manufacturer is also encouraged to provide notice to the retailer that 
reminds the retailer of its other responsibilities under this part.
    (b) 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 provided 
by the manufacturer and approved by the Secretary directly or through 
review by the DAPIA; or
    (2) An installation design and instructions that have been prepared 
and certified by a professional engineer or registered architect, that 
have been approved by the manufacturer and the DAPIA as providing a 
level of protection for residents of the home that equals or exceeds 
the protection provided by the federal installation standards in part 
3285 of this chapter.


Sec.  3286.103  DAPIA-approved installation instructions.

    (a) Providing instructions to purchaser or lessee. (1) For each 
manufactured home sold or leased to a purchaser or lessee, the retailer 
must provide the purchaser or lessee with a copy of the manufacturer's 
DAPIA-approved installation instructions for the home.
    (2) If the installation requires a design that is different from 
that provided by the manufacturer in paragraph (a)(1) of this section, 
the installation design and instructions must be prepared and certified 
by a professional engineer or registered architect, that have been 
approved by the manufacturer and the DAPIA as providing a level of 
protection for residents 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 or 
manufacturer agrees to provide any set up in connection with the sale 
of the home, the retailer or manufacturer must provide a copy of the 
approved installation instructions required in paragraph (a)(1) of this 
section or, as applicable, installation design and instructions 
required in paragraph (a)(2) of this section 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.

    (a) 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.
    (b) Use of licensed installer. When the retailer or manufacturer 
agrees to provide any set up in connection with the sale or lease of 
the home, the retailer or manufacturer must ensure that the installer 
is licensed in accordance with these regulations.


Sec.  3286.107  Installation in accordance with standards.

    (a) Compliance with installation requirements. (1) For purposes of 
determining installer compliance, a manufactured home that is subject 
to the requirements of this subpart B must be installed in accordance 
with:
    (i) An installation design and instructions that have been provided 
by the manufacturer and approved by the Secretary directly or through 
review by the DAPIA; or
    (ii) An installation design and instructions that have been 
prepared and certified by a professional engineer or registered 
architect, that have been approved by the manufacturer and the DAPIA as 
providing a level of protection for residents of the home that equals 
or exceeds the protection provided by the federal installation 
standards in part 3285 of this chapter.
    (2) If the installation instructions do not comply with the 
installation standards, the manufacturer is responsible for any aspect 
of installation that is completed in accordance with the installation 
instructions and that does not comply with the installation standards.
    (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.
    (4) Except as set out in paragraph (a)(2) of this section, all 
installation defects due to the work of the installer are the 
responsibility of the installer or retailer or manufacturer that 
retained the installer and must be corrected.
    (5) If the manufacturer or retailer retains the installer, they are 
jointly and severally responsible with the installer for correcting 
installation defects.
    (6) Installation defects must be corrected within 60 days after the 
date of discovery of the installation defect.
    (b) Secretarial approval of manufacturer's designs. A manufacturer 
that seeks a Secretarial determination under paragraph (a) 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

[[Page 35296]]

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 at the toll-free telephone 
number 1-800-927-2891, extension 57.
    (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 certified 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 qualifying installation program. Before the home can be 
occupied, 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, 
a licensed installer must visit the jobsite and certify that:
    (1) The manufactured home has been installed in accordance with:
    (i) An installation design and instructions that have been provided 
by the manufacturer and approved by the Secretary directly or through 
review by the DAPIA; or
    (ii) An installation design and instructions that have been 
prepared and certified by a professional engineer or registered 
architect, that have been approved by the manufacturer and the DAPIA as 
providing a level of protection for residents of the home that equals 
or exceeds the protection provided by the federal installation 
standards in part 3285 of this chapter.
    (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.
    (3) All installation defects brought to the installer's attention 
have been corrected.
    (b) Recipients of certification. The installer must provide a 
signed copy of its certification to the retailer that contracted with 
the purchaser or lessee for the sale or lease 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) Tracking information. Within 30 days from the time a purchaser 
or lessee enters into a contract to purchase or lease a manufactured 
home, the retailer or distributor of the home must provide HUD with 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;
    (3) The state and address where the home is to be sited, and, if 
known, the name of the local jurisdiction; and
    (4) The name of the purchaser or lessee.
    (b) Installation information. Within 30 days from the date of 
installation, the retailer or distributor of the home must provide HUD 
with the following information:
    (1) The name, address, telephone number, and license 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; and
    (4) The name, address, and telephone number of the qualified 
inspector who performed the inspection of the installation as required 
by Sec.  3286.109.
    (c) Method of providing information. (1) The retailer or 
distributor must provide a copy of the information set forth in 
paragraphs (a) and (b) of this section to HUD by providing a copy of 
the information to HUD by facsimile, e-mail, 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 e-mail address 
obtained by calling the Office of Manufactured Housing Programs. For 
convenience only, the URL of the Web site is http://www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm and the toll-free telephone number to 
contact the Office of Manufactured Housing Programs is 1-800-927-2891, 
extension 57.
    (d) Correcting information. If the information provided by the 
retailer changes after it has been provided to HUD, the retailer must 
correct the information within 10 business days after the retailer 
learns of the change.
    (e) Record retention requirements. The retailer or distributor must 
maintain a copy of the records required in paragraphs (a) and (b) of 
this section for 3 years from the date of installation, as under Sec.  
3286.115.


Sec.  3286.115  Date of installation.

    The date of installation will be the date the installer has 
certified that all required inspections have been completed, 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 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 all the goods and services that 
the manufacturer, retailer, or distributor agreed to provide at the 
time the contract was entered into have been provided.
    (b) Compliance with construction and safety standards. When a 
retailer or manufacturer is providing the installation and 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, and those issues are discovered during 
the installation of the home, the sale or lease of the home is not 
complete until the home is corrected.

[[Page 35297]]

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. Installers will be required 
to meet licensing, training, and insurance requirements established in 
this part. Licensed installers will self-certify their installations of 
manufactured homes to be in compliance with the Model Manufactured Home 
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.


Sec.  3286.203  Installation license required.

    (a) Installation license required. (1) Any individual or entity 
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 these 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 supervised by a 
licensed installer.
    (4) The installer must display an original or a copy of a valid 
installation license at the site of the installation while performing 
work related to the installation of the home.
    (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, that have 
been approved by the manufacturer and DAPIA as providing a level of 
protection for residents 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:
    (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) of this 
chapter;
    (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 
noninstallation-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)(1)(v) of this section 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 until October 20, 
2009.
    (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.  
3286.308 or Sec.  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) Surety bond or insurance. An applicant for an installation 
license must provide evidence of and must maintain, when available in 
the state of installation, a surety bond or insurance that will cover 
the cost of repairing all damage to the home and its supports caused by 
the installer during the installation up to and including replacement 
of the home. HUD may require the licensed installer to provide proof of 
the surety bond or insurance at any time. The licensed installer must 
notify HUD of any changes or cancellations with the surety bond or 
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

[[Page 35298]]

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 http://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 1-800-927-2891, extension 
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.  3286.308 or Sec.  3286.309.
    (d) Proof of surety bond or insurance. Every applicant for an 
installation license must submit the name of the applicant's surety 
bond or 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.
    (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 any party;
    (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; or
    (vi) Failure to maintain the surety bond or 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

[[Page 35299]]

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 3 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 also 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 
subpart D will meet the curriculum requirements established in Sec.  
3286.308 or Sec.  3286.309, as applicable.


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 e-mail address obtained by calling the Office of Manufactured 
Housing Programs. For convenience only, the URL of the Web site is 
http://www.hud.gov/offices/hsg/sfh/mhs/mhshome.cfm, and the toll-free 
telephone number to contact the Office of Manufactured Housing Programs 
is 1-800-927-2891, extension 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 a certification that 
training provided in accordance with this subpart D will meet the 
curriculum requirements established in Sec.  3286.308 or Sec.  
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:

[[Page 35300]]

    (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) Preinstallation 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.


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  Installation suitability.

    (a) Site appropriateness. Before installing a manufactured home at 
any site, the installer must assure that the site is suitable for 
installing the home by verifying that:
    (1) The site is accessible;
    (2) 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) The data plate required by Sec.  3280.5 of this chapter is 
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) The installation site is protected from surface run-off and can 
be graded in accordance with part 3285.
    (b) Installer notification of unsuitable site. If the installer 
determines that the

[[Page 35301]]

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, identifying the reasons why the 
site is unsuitable;
    (2) Notify the retailer that contracted with the purchaser for the 
sale of the home, identifying the reasons why the site is unsuitable;
    (3) Notify HUD, identifying the reasons why the site is unsuitable;
    (4) 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; and
    (5) Ensure that all unique characteristics of the site have been 
fully addressed.
    (c) Installer notification of failures to comply with the 
construction and safety standards. If the installer notices and 
recognizes failures to comply with the construction and safety 
standards in part 3280 of this chapter prior to beginning any 
installation work, during the course of the installation work, or after 
the installation work is complete, the installer must notify the 
manufacturer and retailer of each failure to comply.
    (d) Retailer notification. The retailer must provide a copy of the 
notification received in paragraphs (b) and (c) of this section to any 
subsequent installer.


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. Ten business days prior to the 
completion of installation, the installer must arrange for a third-
party inspection of the work performed, 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. Such 
inspection must be performed as soon as practicable by an inspector who 
meets the qualifications set forth in Sec.  3286.511. The scope of the 
inspections that are required to be performed is addressed in Sec.  
3286.505.
    (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.


Sec.  3286.411  Certifying installation.

    (a) Certification required. When the installation work is complete, 
a licensed installer must visit the jobsite and certify that:
    (1) The manufactured home has been installed in accordance with:
    (i) An installation design and instructions that have been provided 
by the manufacturer and approved by the Secretary directly or through 
review by the DAPIA; or
    (ii) An installation design and instructions that have been 
prepared and certified by a professional engineer or registered 
architect, that have been approved by the manufacturer and the DAPIA as 
providing a level of protection for residents of the home that equals 
or exceeds the protection provided by the federal installation 
standards in part 3285 of this chapter.
    (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.
    (3) All installation defects brought to the installer's attention 
have been corrected.
    (b) Recipients of certification. The installer must provide a 
signed copy of its certification to the retailer that contracted with 
the purchaser or lessee for the sale or lease of the home, and to the 
purchaser or other person with whom the installer contracted for the 
installation work.


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, including the name, 
address, and telephone number of the professional engineer or architect 
certifying the designs.
    (b) Retention requirement. The records listed in paragraph (a) of 
this section must be maintained for a period of 3 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 
verified by the inspector and certified by the installer under the HUD-
administered installation program.


Sec.  3286.503  Inspection required.

    (a) Timing of requirements. Ten business days prior to 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.
    (c) Providing instructions to inspectors. Installation instructions 
must be made available to the inspector at the installation site by the 
installer.


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 each of the following elements 
complies with the

[[Page 35302]]

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 and grading for drainage;
    (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 in writing 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 of any failures to comply with the 
installation standards and explain the reasons why the inspector 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 or entity 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;
    (4) A HUD-accepted Production Inspection Primary Inspection Agency 
(IPIA) or a Design Approval Primary Inspection Agency (DAPIA); or
    (5) An International Code Council certified inspector.
    (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 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: 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 at the toll-free telephone 
number 1-800-927-2891, extension 57.

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.
    (c) Verification of installer license.When the retailer or 
manufacturer agrees to provide any set up in connection with the sale 
or lease of the home, the retailer or manufacturer must verify that the 
installer is licensed in accordance with these regulations.


Sec.  3286.605  After sale.

    (a) Tracking installation information. The retailer is responsible 
for providing to HUD the information required pursuant to Sec.  
3286.113.

[[Page 35303]]

    (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.  3286.113.

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, the requirements in subparts B 
through H are applicable in states where the HUD-administered 
installation program operates, and the requirements in subpart I are 
applicable in states with qualifying installation programs. 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, HUD may take any actions authorized 
by the Act in order to oversee the system established by the 
regulations in this part.


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, as specified in 
Sec.  3286.115, 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 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, either as part of its approved state plan or under this 
subpart, 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 or in accordance with 
part 3282 of this chapter.
    (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;
    (4) A method for inspecting the initial installations of new 
manufactured homes in the state that is implemented and used to hold 
installers responsible for the work they perform; 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), (4), 
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 having a qualified installation program must submit a completed 
State Installation Program Certification form to the Secretary for 
review and acceptance and indicate if the installation program will be 
part of its approved state plan in accordance with part 3282 of this 
chapter.
    (2) 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

[[Page 35304]]

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 90 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 90-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 when the installation program is not part of the 
approved state plan in accordance with part 3282 of this chapter, a 
state must submit a new State Installation Program Certification form 
to the Secretary for review and action as follows:
    (1) Every 5 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 
required in paragraph (a) of this section must be filed within 90 days 
of, as applicable:
    (i) The 5-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) Failure to Recertify. (1) A state whose certification of its 
installation program, when the installation program is not part of the 
approved state plan in accordance with part 3282 of this chapter, 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.


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 HUD's Manufactured 
Housing Construction and Safety Standards and enforcement programs. 
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 defined in Sec.  3286.115, 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: June 5, 2008.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E8-13289 Filed 6-19-08; 8:45 am]
BILLING CODE 4210-67-P