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HUD/OH RIN: 2502-AI45 Publication ID: Fall 2006 
Title: ●Permanent Foundations for Manufactured Housing (FR-5075) 
Abstract: This rule would amend HUD’s regulations governing manufactured homes erected on a permanent foundation that are to be the security for a title II Federal Housing Administration (FHA) insured mortgage. The current regulations contain prescriptive requirements pertaining to permanent foundations that do not provide for flexibility of design. HUD proposes to remove these requirements for both existing and new construction manufactured homes and instead defer to the requirements established by the Model Manufactured Home Installation Standards (Model Installation Standards). (A separate rule would establish the minimum acceptable standards nationwide for the installation and set-up of manufactured homes.) This rule will not supplant the current installation requirements entirely, but will permit them to be used in cases of FHA refinance transactions for any existing manufactured home that is currently security for an FHA-insured loan and which met FHA requirements at the time of the original endorsement. The rule would also amend HUD’s regulations governing manufactured homes erected on a permanent foundation that are to be security for a title I FHA-insured mortgage. The proposed rule would promote affordable housing and the uniform quality and safety of manufactured homes. 
Agency: Department of Housing and Urban Development(HUD)  Priority: Other Significant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 24 CFR 201    24 CFR 203   
Legal Authority: 12 USC 1703    42 USC 3535(d)    42 USC 5301 to 5320   
Legal Deadline:  None

Statement of Need: The current regulations governing permanent foundations for manufactured housing may be too prescriptive in that they do not allow for flexibility of design. This rule is also necessary to avoid HUD having two inconsistent foundation standards for the installation of manufactured homes. The Manufactured Housing Improvements Act of 2000 amended the National Manufactured Housing Construction and Safety Act of 1974 (the Act) by establishing new requirements pertaining to the installation of manufactured homes. Among the requirements was a provision that HUD must promulgate Model Manufactured Installation Standards. FHA regulations need to be modified to reflect the new installation compliance standards under the Act for manufactured homes that are to be security for title I and title II FHA-insured mortgages.

Summary of the Legal Basis: The National Housing Act at 12 U.S.C. 1703 authorizes the Secretary to insure approved lenders against losses sustained as a result of borrower default on, among other things, manufactured home loans.

Alternatives: The changes made by this proposed rule would modify an existing regulatory requirement and, therefore, must also be promulgated through regulation.

Anticipated Costs and Benefits: This rule would require that the Minimum Property Standards applicable to the installation of manufactured homes meet or exceed the Model Installation Standards, as will be codified at 24 CFR part 3285. This rule would increase flexibility of design, resulting in reduced cost to builders and consumers. Such a change would also serve to protect the health and safety of occupants of manufactured homes and FHA’s interest in the property. Overall, this change would promote affordable housing and conform FHA’s installation requirements to nationwide minimum standards. Further, manufactured homes that already securitize FHA-insured loans would not be affected by the regulatory change, and, therefore, would bear no compliance costs.

Risks: This rule poses no threat to public safety, health, or the environment.

Timetable:
Action Date FR Cite
NPRM  02/00/2007    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
Agency Contact:
Joyce Richardson
Director, Home Valuation Policy Division
Department of Housing and Urban Development
Office of Housing
Phone:202 402-2507