Manufactured Home Inspection and Monitoring Program

 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HOUSING

MANUFACTURED HOME INSPECTION AND MONITORING PROGRAM

PROGRAM HIGHLIGHTS

a/ reflects funding from new authority and carryover authority

SUMMARY OF BUDGET ESTIMATES

1.SUMMARY OF BUDGET REQUEST

There is no discretionary appropriation request for this program which is funded by fees under a mandatory permanent indefinite appropriation. HUD estimates that $16 million in fees will be collected in fiscal year 2000 from manufactured home producers based upon the production of 386,000 manufactured homes and 664,000 transportable sections. The fee charge is $24 per transportable section produced. The fee collections are used to: (1) cover the contractual costs of inspecting and monitoring the manufacturers' quality control procedures; (2) make payments to the States for the costs of investigating purchaser complaints; and (3) cover the Department's direct administrative expenses for those staff having enforcement related responsibilities. Payment for this latter item is made through a transfer to the "Salaries and Expenses, HUD" account. The current S&E transfer estimate for 2000 is $1,083 thousand. The Department will ensure that staffing is sufficient to ensure proper enforcement of standards and respond to questions concerning the uniformity and consistency of code revision.

2.CHANGES FROM 1998 ESTIMATES INCLUDED IN 1999 BUDGET

A total of 439,000 manufactured homes and 603,000 transportable sections were produced in fiscal year 1998. The number of transportable Sections was 51,000 less then estimated reflecting actual industry performance.

3.CHANGES FROM 1999 BUDGET ESTIMATES

The 1999 revised estimates for manufactured homes and transportable sections are less than the projected Budget estimates for 1999. This results in a decrease of $1.9 million in budget authority available from fee collections. This decrease reflects a reduction in demand for manufactured homes.

EXPLANATION OF INCREASES AND DECREASES

The number of manufactured homes and transportable sections produced is expected to increase over the 1999 estimated level of 375,000 homes and 626,000 transportable sections by 3 percent and 6 percent respectively. A $24 fee for each transportable section results in $16 million estimated budget authority. Obligation and outlay increases in fiscal year 2000 reflect an increase for contracts and HUD S&E.

PROGRAM DESCRIPTION

The National Manufactured Housing Construction and Safety Standards Act of 1974, as amended, directed the Secretary of HUD to establish Federal manufactured home construction and safety standards for the construction, design, and performance of manufactured homes. The standards were to govern quality, durability, and safety. The Act took effect June 15, 1976, and all manufactured homes produced since then must meet Federal manufactured home construction and safety standards.

A fee of $24 per transportable section is charged to producers to cover the cost of inspections required under the Act. A single-wide manufactured home has one transportable section, whereas a multiwide home has two or three transportable sections. Therefore, single-wide homes are charged $24, double-wide homes are charged $48 and triple-wide homes are charged $72. HUD estimates that about 52 percent of the sections produced will be multi-wide. In 1980, a permanent, indefinite appropriation account was established for depositing the fees.

Activities authorized by the Act include the following:

    1.Establishment of Standards. Under the Act, the Secretary is directed to establish appropriate Federal manufactured home standards for the construction, design, and performance of manufactured homes which meet the needs of the public, including quality, durability, and safety.

    2.National Manufactured Home Advisory Council. Section 605 of the Housing and Community Development Act of 1974 created a 24-member Advisory Council which consults with the Secretary on manufactured home construction and safety standards. This Council meets as necessary to review and comment on the issuance and/or modification of proposed standards.

    3.Enforcement of Standards. Enforcement of the standards is accomplished mainly by third-party primary inspection agencies. These agencies can be private or State agencies and are approved and monitored by HUD.

    4.Noncompliance with Standards. Title VI of the 1974 Act requires that every company that builds manufactured homes provide HUD with the plans for each model produced. The manufacturer is required to issue a certification that each section built meets the Federal standards in effect at the time of production. If the Department determines that any manufactured home does not comply with standards or contains a defect constituting a significant safety hazard, it may require the producer to notify the purchaser of the manufactured home of the defect. In certain cases, HUD may require repair, replacement or refund of the price of the defective section(s).

    PROGRAM ACTIVITY

    Currently, 36 States have had their State Administrative Agencies approved for participation in the program. Also, 17 Primary Inspection Agencies (7 private and 10 State) are approved as qualified to serve as a Design Approval Primary Inspection Agency and/or Production Inspection Primary Inspection Agency.

    In addition to inspection activities supported directly by fee income, the Department has sponsored research, as needed, relating to manufactured home construction and safety standards which is funded from the Department's Research and Technology appropriation.

 
Content Archived: January 20, 2009