Modification To Regulations Of Factory-built Structures

The act makes the following modifications to the regulations of factory-built structures, manufactured housing, and installers and sellers of manufactured housing:

• Clarifies that the division of housing (division) has enforcement powers over the installation and sale of manufactured homes and over the safety of hotels and multi-family structures where no other construction standards exist;
• Clarifies that a manufacturer who violates applicable law is subject to registration revocation or any other measures prescribed by the division or applicable law;
• Clarifies that a local government may enforce local rules governing the installation of factory-built housing that are approved by the division of housing;
• Clarifies that authority granted to the division is over work related to factory-built structures that is completed offsite or completed onsite with components shipped with the factory-built structure;
• Clarifies that a local government's authority is over work completed onsite and is not over work performed offsite or work that is completed onsite using components shipped with the factory-built structure;
• Allows the division to authorize a local government to inspect and charge fees related to work that is completed onsite using components shipped with a factory-built structure;
• Clarifies that a factory-built structure bearing an insignia of approval issued by the division complies with applicable state codes and local government installation requirements approved by the division;
• Clarifies that an insignia of approval affixed to the factory-built structure does not expire unless the design and construction of the factory-built structure has been modified by approved plans;
• Clarifies that a homeowner who installs a manufactured home for their own personal use is not required to register with the division;
• Allows the division to set the surety bond, insurance, and educational requirements for a registered installer of a manufactured home by rule-making;
• Creates disclosure requirements relating to financial instruments and legal actions for installation contracts;
• Requires installers to contact the division if the installer is not able to strictly comply with the manufacturer's instructions;
• Clarifies that a manufacturer must receive an installation authorization unless the installation is occurring in a jurisdiction where a local government is acting as an independent contractor;
• Clarifies that an installation insignia must be affixed to the manufactured home by the division or the local government independent contractor upon the completion of the installation;
• Clarifies what costs the installer may be required to pay if a manufactured home was not completely installed;
• Requires an insurer or financial institution to pay the division the amount of a claim against the letter of credit, certificate of deposit, or surety bond filed with the division by a registered installer if there has been a finding that the installer failed to perform as required by applicable law;
• Clarifies that a local government may only enact installation rules related to geographic or climatic conditions and any such rules cannot federal law;
• Allows a local government to require onsite mitigation addressing public safety requirements applicable to manufactured homes that comply with the federal manufactured home construction and safety standard;
• Clarifies that a person who is employed by a registered seller to negotiate for the sale of manufactured homes is not considered a seller for purposes of the applicable registration requirements;
• Allows the division to set escrow requirements and the minimum amount of a financial instrument filed by a registered seller of a manufactured home through rule-making;
• Removes the requirement that the division send the attorney general a monthly list of all persons registered and bonded with the division;
• Removes the restriction that any financial instrument filed with the division is only revocable upon the written consent of the attorney general;
• Clarifies the disclosures that are required to be made in contracts for the sale of manufactured homes;
• Clarifies that any fines paid to the division by a seller must be credited by the state treasurer to the building regulation fund;
• Clarifies the types of homes that may not be excluded by counties and municipalities; and
• Clarifies that a county or municipality must comply with the state requirements for local installation standards when enacting building code provisions for a manufactured home.
  (Note: This summary applies to this bill as enacted.)