AUTHORITY
Act 419 of 1977 created the Arkansas Manufactured Home Commission and set forth the powers and duties of the Commission, the Director and other personnel of the Agency to: administer the Federal Manufactured Home Construction and Safety Standards; promulgate and enforce state standards for manufactured home installation; require certification and/or licensing of manufacturers, retailers, installers and salespeople; and to promulgate and enforce rules and regulations governing the construction and installation of manufactured homes manufactured, sold or offered for sale in the state of Arkansas.
The following rules and regulations pertaining to the manufacture, sale and installation of manufactured homes are duly adopted and promulgated by the Arkansas Manufactured Home Commission pursuant to the authority expressly conferred by Act 419 of 1977 as amended.
Repealing Clause: All previous rules and regulations pertaining to the manufacture, sale, and installation of manufactured homes are hereby repealed.
DEFINITIONS
The following terms are defined for the purpose of these regulations. No attempt is made to define ordinary words which are used in accordance with the established dictionary meaning except when the word has been loosely used and it is necessary to define its meaning as used in these regulations to avoid a misunderstanding.
Because the purpose is to define terms rather than words, the definitions are alphabetical using the first word of the term rather than by the noun.
Safety Standards Act of 1974 (42 U.S.C. § § 5401 et seq) and applicable regulations promulgated by the United States Department of Housing and Urban Development, as and when adopted by the Commission.
CERTIFICATION AND LICENSING
Any person, firm or corporation which acts in one or more of the following capacities shall be required to certify or license with the Arkansas Manufactured Home Commission:
For certification/licensing and compliance purposes, manufacturers, retailers and installers that occupy more than one location shall have each location treated as a separate entity and adhere to all requirements for certification or licensing.
The Statement of Compliance shall be signed by the person or responsible officer having full authority to commit his firm to the conditions of compliance and shall not be transferable. Violation of the Statement of Compliance shall be considered grounds for suspension of the certification or license.
Any in-state or out of state person, firm or corporation that manufactures homes and offers them for sale or use in the State without being properly certified with the Commission; or any manufacturer selling or offering manufactured homes for sale to a person, firm or corporation not certified as a retailer as required under Section 300 shall be considered to be in violation of this Act.
Any person, firm or corporation acting as a retailer without being properly certified with the Commission; any retailer accepting a manufactured home, directly or indirectly, from a manufacturer not certified with the Commission; any retailer using an installer not licensed with the Commission; or any retailer failing to license a salesperson with the Commission within 30 days of hiring is in violation of this Act.
Any in state or out of state person, firm or corporation that installs manufactured homes for use in the State without being properly certified with the Commission; or any retailer or installer who does not install manufactured homes according to the regulations is in violation of this Act.
manufacturer or retailer. Licenses shall remain the property of the manufacturer or retailer, and shall not be able to be transferred to individuals other than the original licensee.
Any in state or out of state person engaged in selling manufactured homes in the State without being properly licensed with the Commission, shall be considered to be in violation of this Act.
Any person, firm or corporation auctioning homes to the public without being properly certified with the Commission is in violation of this Act.
COMPLAINTS, INSPECTIONS AND DISPUTE RESOLUTION
The Arkansas Manufactured Home Commission, in its capacity as a state administrative agency (SAA) under the Federal standards enforcement program and under authority granted by Arkansas law, may investigate, make determinations relating to, and require correction of noncompliances, defects, serious defects and imminent safety hazards occurring in manufactured homes manufactured or installed in the state of Arkansas.
Implementation of the Commission's inspection programs, complaint resolution programs and dispute resolution programs shall be in accordance with these regulations and applicable laws and regulations governing manufactured homes.
All complaints against manufacturers, retailers or installers shall be submitted to the Commission on forms supplied by the Agency. Information requested on the complaint form shall include, but not be limited to:
When a consumer complaint is referred to the manufacturer and the manufacturer determines that an imminent safety hazard, serious defect, defect or noncompliance may exist and the manufacturer does not correct the imminent safety hazard or failure to conform within thirty (30) days of the date on which the manufacturer determined the existence of an imminent safety hazard or failure to conform, the manufacturer shall prepare and submit a plan as provided for in 24 C.F.R. Section 3282.409, to the Arkansas Manufactured Home Commission.
The plan, including a copy of the Notice as required by 24 C.F.R. Section 3282.410, shall be submitted to the Arkansas Manufactured Home Commission by the manufacturer and shall provide for notification by mail, to the first purchaser of each manufactured home containing an imminent safety hazard, serious defect, defect or noncompliance and any subsequent purchaser to whom any warranty provided by the manufacturer or required by Federal, State or Local Law has been transferred, to the extent feasible; by mail to any other person who is a registered owner of each manufactured home containing an imminent safety hazard, serious defect, defect or noncompliance and whose name has been ascertained pursuant to 24 C.F.R. Section 3282.211.
This section establishes procedures for the investigation and timely resolution of construction or installation defects in manufactured homes that are reported to the Commission during the one-year period beginning on the date of installation of the home, including:
This section establishes procedures for the investigation and timely resolution of disputes among manufacturers, retailers and installers of manufactured homes regarding responsibility for the correction or repair of construction or installation defects in manufactured homes that are reported to the Commission during the one-year period beginning on the date of installation of the home.
Upon receipt of a consumer complaint or other information indicating the possible violation of any provision of the Code or the rules and regulations promulgated thereunder, the Agency shall review the complaint or information and forward the complaint or other information to the manufacturer, retailer and installer of the manufactured home in question.
When the complaint is forwarded, the manufacturer, retailer and installer will be requested, in writing, to investigate the complaint within twenty (20) days after receipt of the information and to carry out any necessary investigations and inspections to determine the origin of the complaint.
When the manufacturer, retailer or installer reports that corrective action has been taken to bring the home into compliance with the Code or the regulations, the Commission will consider the complaint closed and so inform the manufacturer, retailer or installer and the complainants; however, when items included on the original complaint remain unresolved, the Commission may schedule an inspection of the home in order to determine the nature of the violation, if any, and assign responsibility for corrective action. The Commission shall provide notice of such an inspection, including information about the home in question and the date and approximate time of the inspection, in writing, to the manufacturer, retailer and installer.
A copy of the Agency's inspection report, including determinations of unresolved items and responsibility for corrective action will be sent to the manufacturer, retailer, installer and the complainants. In the report, the Director may order the manufacturer, retailer or installer to correct the violation within a reasonable time, not to exceed ninety (90) days. Should the Director determine that the violation poses a serious threat to the health and safety of the purchaser of the home, the Director may order the manufacturer, retailer or installer to correct the violation within five (5) working days.
A manufacturer, retailer or installer may request additional time to correct the violation. The request must be made in writing, and may be granted by the Director only when the extension will not pose a serious threat to the health and safety of the purchaser of the home.
Should a manufacturer, retailer or installer dispute any determination made by the Director or Agency staff, the manufacturer, retailer or installer may appeal that determination to the Manufactured Home Commission. Such an appeal must be received by the Agency in writing, postmarked not more than ten (10) days following receipt of a determination issued by the Director. The determination will be held in effect until a timely hearing by the Commission or a Sub-Committee of the Commission. The Chairman of the Commission may stay the determination after review of the facts pending the hearing.
Should a manufacturer, retailer or installer dispute any decision made or penalty imposed by the Commission, the licensee may appeal that decision to the Circuit Court in accordance with the Arkansas Administrative Procedure Act. Such an appeal shall stay that portion of the Commission order which directs corrective action or the payment of any penalty. The licensee shall not be required to act on the decision until such time as a final order of the Circuit Court, Court of Appeals or Supreme Court is issued.
The Director of the Arkansas Manufactured Home Commission, with the approval of the Commission, shall establish inspection and monitoring fees, and provide for participation in the fee distribution system.
Beginning October 15, 2007, there shall be a fee of $50.00 per home for each new manufactured home shipped into the State of Arkansas. This fee shall be paid to the Commission by the home manufacturer. Manufacturers shall also file a report of all manufactured homes shipped into the state per month. This report shall be filed on a form provided by or approved by the Commission. Shipment reports and payment of required fees shall be made no later than the 15th day of the month following the reporting period. It shall be a violation of these regulations for a manufacturer to fail to comply with the provisions of this paragraph.
Beginning October 15,2007, licensed installers and installing retailers shall be required to affix an installation permit decal to each new manufactured home installed in the State. Permit decals shall be purchased from the Commission and affixed to the home at the point where electrical power is connected to the home. Permit decals shall be affixed to the home within ten (10) days of delivery to the site.
There shall be a fee of $10.00 per each installation permit decal. This fee shall be paid to the Commission by the home installer. Installers and installing retailers shall also file a report of all new homes installed in the state per month. This report shall be filed on a form provided by or approved by the Commission. Installation reports and shall be made no later than the 15th day of the month following the reporting period. It shall be a violation of these regulations for an installer or installing retailer to fail to comply with the provisions of this paragraph.
The Commission shall approve a procedure for the timely inspection and certification of a percentage of the initial installations of new manufactured homes installed in the state on a random-sample basis to assure compliance with installation standards adopted by the Commission. The percentage of homes inspected shall be set by the Commission, and shall be determined based on requirements of the Federal Standards program, as and when adopted by the Commission. The procedure shall place priority on inspecting homes installed in all regions of the state by all participating installers and installing retailers on a fair and equitable basis.
Compliance assurance inspections may be scheduled without notice. Defects found in compliance assurance inspections may be processed in accordance with these regulations, beginning with Section 404(F). Determinations made by an authorized representative of the Commission may be appealed in accordance with Section 404(G).
There shall be a fee of $30.00 per hour for conducting initial 100% inspections at manufacturer locations when the Commission acts as a Production Inspection Primary Inspection Agency for the purpose of certifying the manufacturer as required under Title VI of the Housing and Community Development Act of 1974. This fee shall be paid to the Commission by the manufactured housing manufacturer for whom the inspection is conducted. The manufacturer shall also be charged for reimbursement of mileage and per diem incurred by Commission personnel to and from the location of the manufacturer.
The above procedures will be followed in the event it becomes necessary to withhold HUD labels from the manufacturer because of continued failures to comply with the approved design or when there is evidence that the manufactured housing manufacturer is not performing under its approved quality control manual.
There shall be a fee of $25.00 per unit for the inspection of all manufactured homes manufactured within the State of Arkansas. This fee shall be paid to the Commission. The manufacturer shall also be charged for reimbursement of mileage and per diem incurred by Commission personnel to and from the location of the manufacturer.
When requests are made for inspections other than the regular monitoring plant inspections, a fee of $30.00 per hour shall be charged to the manufacturer and paid to the Commission. The manufacturer shall also be charged for reimbursement of mileage and per diem incurred by Commission personnel to and from the location of the manufacturer.
There shall be a fee of $25.00 per unit for each reinspection for increased frequency inspections. An increased frequency inspection shall be scheduled by the Commission when inspections at a manufacturing facility reveal repeated failures to conform to the approved designs or when there is evidence that the manufactured home manufacturer is not performing under its approved quality control manual. The Commission may advise the manufacturer prior to the date of the scheduled inspection and the manufacturer shall comply with instructions, if any, relative to the increased frequency inspection. The manufacturer shall also be charged for reimbursement of mileage and per diem incurred by Commission personnel to and from the location of the manufacturer.
There shall be a fee established by the Secretary of the Department of Housing and Urban Development in compliance with 24 C.F.R. 3282.302(b)(6) to be paid by each manufacturer in this state for each manufactured home produced in this State. The monitoring inspection fee shall be distributed according to federal regulations.
When special inspections are requested by an unlicensed or uncertified person or company, a fee of twenty dollars ($20.00) per hour may be charged to the company or person requesting the inspection and paid to the Commission. The company or person shall also be charged for reimbursement of mileage and per diem incurred by Commission personnel to and from the location of the inspection.
MANUFACTURED HOUSING RECOVERY FUND
The Manufactured Housing Recovery Fund shall consist of trust fund receipts derived from fees assessed by the Arkansas Manufactured Home Commission under the authority of Arkansas law and shall be used for such purposes as are set out in this section. The Commission shall collect such assessments from manufacturers, retailers and installers.
The Commission shall collect the following assessment fees at the time of submission of initial certification or licensure applications:
If the balance of the Manufactured Housing Recovery Fund falls below two hundred fifty thousand dollars ($250,000), then the Commission may collect an annual assessment from each manufacturer of manufactured homes in this state, manufacturer of manufactured homes in other states selling manufactured homes in this state, and installers and retailers. The annual assessment shall continue until such time as the fund is restored to a minimum level of two hundred fifty thousand dollars ($250,000).
Such annual assessments collected shall not exceed the following amounts:
All consumer, licensee, installer, retailer or manufacturer complaints shall be filed with the Commission. The Commission shall determine by hearing or whatever procedure it establishes first, if any, standard adopted by the Commission has been violated and, if so, the actual cost of repairs to the manufactured home, if any, suffered by the aggrieved party or parties.
For a claim against the fund to be considered, the Commission must determine the following:
On January 1 of any year, if the fund established in this chapter exceeds four hundred thousand dollars ($400,000.00), the Arkansas Manufactured Home Commission may approve the use of up to five percent (5%) of the fund balance above that amount for training and education programs; including but not limited to: workshops, instruction manuals, audio and video tapes, and presentations.
INSTALLATION AND ANCHORING SPECIFICATIONS
The Arkansas Manufactured Home Commission by regulation shall set uniform reasonable standards for the proper initial installation of new manufactured homes installed in this state, provided that such installation standards equal or exceed installation standards promulgated under the Federal standards
The commission by regulation shall set uniform reasonable standards for the proper secondary installation of used manufactured homes installed in this state.
The person, firm or corporation providing the installation of a manufactured home shall be responsible for making sure the installation and anchoring of such manufactured home meets the manufacturer's installation requirements or the Commission's installation regulations, as follows:
New single section and multi-section manufactured homes shall be installed according to the manufacturer's installation instructions.
Used single section and multi-section manufactured homes shall be installed according to the Arkansas Manufactured Home Commission's installation specifications, as set forth in these regulations.
It is not the intent of these regulations to prohibit the installation of any manufactured home in which the methods or materials used in the installation of the support system meets or exceeds the requirements of the manufacturer's installation instructions or the Arkansas Manufactured Home Commission's installation specifications, as set forth in these regulations, as related to foundation stability and/or load bearing capacity.
As used in these regulations, 'Installation' shall include:
Piers shall be constructed of eight inches by eight inches by sixteen inches (8" x 8" x 16") concrete building blocks, open celled, solid, or equivalent which meet or exceed the specifications per ASTM C90. Open celled blocks shall be installed with the open cells vertical.
Anchoring is a mandatory requirement for any manufactured home installed in the State of Arkansas.
All new manufactured homes sold by certified retailers and installed in the State of Arkansas shall be anchored according to the home manufacturer's instructions.
Manufacturers shall file with the Commission the anchoring instructions as approved by the manufacturer's Design Approval Primary Inspection Agency and shall provide prompt notification of changes, modifications or updates relating to installation and anchoring.
Used manufactured homes installed in the State of Arkansas shall be anchored according to the Arkansas Manufactured Home Commission's anchoring specifications, as set forth in this section.
It is not the intent of these regulations to prohibit the anchoring of any manufactured home in which the methods or materials used in the anchoring system meets or exceeds the requirements of the manufacturer's anchoring instructions or the Arkansas Manufactured Home Commission's anchoring specifications, as set forth in these regulations, as related to resistance of overturning or lateral movement as imposed by respective design loads. Such alternative systems shall be certified by a professional engineer, architect or nationally recognized testing laboratory as to their resistance to overturning or lateral movement of the home.
The following criteria shall be used in the anchoring of any manufactured home installed in the state of Arkansas:
066.00.07 Ark. Code R. 001