[Federal Register Volume 80, Number 156 (Thursday, August 13, 2015)]
[Notices]
[Pages 48557-48558]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19858]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5880-N-02]


Notice of Second Extension of Time for Completion of Manufacturer 
Notification and Correction Plan

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, Department of Housing and Urban Development (HUD).

ACTION: Notice of second extension of time.

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SUMMARY: This notice advises the public that HUD received a request 
from Clayton Homes, Inc. (Clayton) for an extension of time to fully 
implement its plan to notify purchasers and correct certain 
manufactured homes that were installed with TruVent plastic range hood 
exhaust ducts, an item that Clayton agreed to recall after a HUD audit 
questioned whether the duct complied with HUD's Manufactured Home 
Construction and Safety Standards. The recall includes homes built by 
the following Clayton manufacturing subsidiaries: CMH Manufacturing, 
Inc.; CMH Manufacturing West, Inc.; Southern Energy Homes, Inc.; Giles 
Industries, Inc.; and Cavalier Homes, Inc. Clayton initiated the recall 
on April 6, 2015. On May 30, 2015, Clayton requested additional time to 
complete repairs on affected homes. After reviewing Clayton's request, 
HUD determined that Clayton had shown good cause and granted its 
request for an extension until August 3, 2015. HUD notified the public 
regarding its determination on June 15, 2015. Due to additional 
difficulties in notifying all affected homeowners, however, Clayton 
requested a second extension on July 23, 2015. After reviewing 
Clayton's second request, HUD determined that Clayton has shown good 
cause and granted its second request for an extension. Clayton's 
extension is granted until September 2, 2015.

DATES: Effective Date: August 3, 2015.

FOR FURTHER INFORMATION CONTACT: Pamela Beck Danner, Administrator, 
Office of Manufactured Housing Programs, Department of Housing and 
Urban Development, 451 Seventh Street SW., Room 9166, Washington, DC 
20410, telephone 202-708-6423 (this is not a toll-free number). Persons 
who have difficulty hearing or speaking may access this number via TTY 
by calling the toll-free Federal Information Relay Service at 800-877-
8339.

SUPPLEMENTARY INFORMATION: The National Manufactured Housing 
Construction and Safety Standards Act of 1974 (42 U.S.C. 5401-5426) 
(the Act) authorizes HUD to establish the Federal Manufactured Home 
Construction and Safety Standards (Construction and Safety Standards), 
codified in 24 CFR part 3280. Section 615 of the Act (42 U.S.C. 5414) 
requires that manufacturers of manufactured homes notify purchasers if 
the manufacturer determines, in good faith, that a defect exists or is 
likely to exist in more than one home manufactured by the manufacturer 
and the defect relates to the Construction and Safety Standards or 
constitutes an imminent safety hazard to the purchaser of the 
manufactured home. The notification shall also inform purchasers 
whether the defect is one that the manufacturer will have corrected at 
no cost or is one that must be corrected at the expense of the 
purchaser/owner. The manufacturer is responsible to notify purchasers 
of the defect within a reasonable time after discovering the defect.
    HUD's procedural and enforcement provisions at 24 CFR part 3282, 
subpart I (Subpart I), implement these notification and correction 
requirements. If a manufacturer determines that it is responsible for 
providing notification under Sec.  3282.405 and correction under Sec.  
3282.406, the manufacturer must prepare a plan for notifying purchasers 
of the homes containing the defect pursuant to Sec. Sec.  3282.408 and 
3282.409. Notification of purchasers must be accomplished by certified 
mail or other more expeditious means that provides a receipt. 
Notification must be provided to each retailer or distributor to whom 
any manufactured home in the class of homes containing the defect was 
delivered, to the first purchaser of each manufactured home in the 
class of manufactured homes containing the defect, and to other persons 
who are registered owners of a manufactured home in the class of homes 
containing the defect. The manufacturer must complete the 
implementation of the plan for notification and correction on or before 
the deadline approved by the State Administrative Agency or the 
Department. Under Sec.  3282.410(c), the manufacturer may request an 
extension of the deadline if it shows good cause for the extension and 
the Secretary decides that the extension is justified and not contrary 
to the public interest. If the request for extension is approved, Sec.  
3282.410(c) requires that the Department publish notice of the 
extension in the Federal Register.
    During a HUD audit of the CMH Manufacturing Savannah, TN, facility, 
the use of TruVent plastic expanding vent pipes for the range hood 
exhaust was questioned as not being in compliance with Sec.  
3280.710(e) of HUD's Construction and Safety Standards. On April 6, 
2015, after reviewing the matter, Clayton agreed to begin a recall of 
homes sold with the plastic expanding vent pipes and repair the homes 
by installing new metal ducts. On May 30, 2015, Clayton requested an 
extension of time to complete the correction process. On June 4, 2015, 
HUD granted the extension until August 3, 2015. HUD notified the public 
regarding its determination on June 15, 2015 (80 FR 34165). However, on 
July 23, 2015, Clayton requested an additional 30 days to complete its 
repairs. With its request, Clayton submitted an update on the 
implementation on its plan of notification and correction. 
Specifically, Clayton stated that it was still attempting to contact 
approximately 162 homeowners that had not responded to its certified 
notification letter. To contact these homeowners, Clayton stated that 
it was attempting to contact these homeowners by telephone based upon 
the purchaser information on record. In addition, Clayton stated that 
it had requested that personnel in its retail locations physically go 
to purchasers' addresses to attempt to contact the homeowner 
personally.
    Given Clayton's continued efforts to contact these homeowners, this 
notice advises the public that HUD determined that Clayton has shown 
good cause for the extension and that the extension is justified and 
not contrary to the public interest. As a result, HUD granted Clayton's 
requested extension until September 2, 2015, to permit it to continue 
its good faith efforts to continue repairs on the remaining homes 
affected by this recall.


[[Page 48558]]


    Dated: August 7, 2015
Pamela Beck Danner,
Administrator, Office of Manufactured Housing Programs.
[FR Doc. 2015-19858 Filed 8-12-15; 8:45 am]
BILLING CODE 4210-67-P