On-Site Completion of Construction of Manufactured Homes, 35902-35918 [2010-15088]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 75, Number 120 (Wednesday, June 23, 2010)]
[Proposed Rules]
[Pages 35902-35918]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-15088]



[[Page 35901]]

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Part IV





Department of Housing and Urban Development





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24 CFR Parts 3282 and 3285



On-Site Completion of Construction of Manufactured Homes; Proposed Rule

Federal Register / Vol. 75 , No. 120 / Wednesday, June 23, 2010 / 
Proposed Rules

[[Page 35902]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 3282 and 3285

[Docket No. FR-5295-P-01]
RIN 2502-AI83


On-Site Completion of Construction of Manufactured Homes

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would establish a procedure whereby 
construction of new manufactured housing can be completed at the 
installation site, rather than in the factory. Under current HUD 
regulations, a manufacturer must obtain HUD approval for on-site 
completion of each of its designs. This rule would simplify the 
process, by establishing uniform procedures by which manufacturers 
could complete construction of their homes at the installation site 
without obtaining advance approval from HUD. This rule would apply only 
to the completion of homes subject to the Manufactured Home 
Construction and Safety Standards, not to the installation of homes 
subject to the Model Manufactured Home Installation Standards. 
Additionally, the proposed rule would not apply when a major section of 
a manufactured home is to be constructed on-site.

DATES: Comments Due Date: August 23, 2010.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Regulations Division, Office of General 
Counsel, Department of Housing and Urban Development, 451 7th Street, 
SW., Room 10276, Washington, DC 20410-0500. Communications must refer 
to the above docket number and title. There are two methods for 
submitting public comments. All submissions must refer to the above 
docket number and title.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street, SW., Room 10276, 
Washington, DC 20410-0500.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
https://www.regulations.gov. HUD strongly encourages commenters to 
submit comments electronically. Electronic submission of comments 
allows the commenter maximum time to prepare and submit a comment, 
ensures timely receipt by HUD, and enables HUD to make them immediately 
available to the public. Comments submitted electronically through the 
www.regulations.gov Web site can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically.

    Note:  To receive consideration as public comments, comments 
must be submitted through one of the two methods specified above. 
Again, all submissions must refer to the docket number and title of 
the rule.

    No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
    Public Inspection of Public Comments. All properly submitted 
comments and communications submitted to HUD will be available for 
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the 
above address. Due to security measures at the HUD Headquarters 
building, an advance appointment to review the public comments must be 
scheduled by calling the Regulations Division at 202-708-3055 (this is 
not a toll-free number). Individuals with speech or hearing impairments 
may access this number via TTY by calling the Federal Information Relay 
Service at 800-877-8339. Copies of all comments submitted are available 
for inspection and downloading at https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: William W. Matchneer III, Associate 
Deputy Assistant Secretary for Regulatory Affairs and Manufactured 
Housing, Office of Housing, Department of Housing and Urban 
Development, 451 7th Street SW., Room 9156, Washington, DC 20410, phone 
number 202-708-6409 (this is not a toll-free number). Persons with 
hearing or speech impairments may access this number via TTY by calling 
the toll-free Federal Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    The National Manufactured Housing Construction and Safety Standards 
Act of 1974 (42 U.S.C. 5401 et seq.) (Act), as amended, authorizes HUD 
to establish and amend the Manufactured Home Construction and Safety 
Standards (construction and safety standards). The construction and 
safety standards established by HUD are codified in 24 CFR part 3280. 
The Act also authorizes HUD to conduct inspections and investigations 
necessary to enforce the standards, to determine that a manufactured 
home fails to comply with an applicable standard or contains a defect 
or an imminent safety hazard, and to direct the manufacturer to furnish 
notification of such failure, defect, or hazard, and, in some cases, to 
remedy the defect or imminent safety hazard through established 
procedures necessary to ensure compliance with the construction and 
safety standards and the related enforcement and monitoring provisions 
of the Act. These procedures are codified in 24 CFR part 3282. As 
stated in Sec.  3282.1(b), HUD's policy is to work in partnership, 
especially with state agencies, in the enforcement of the construction 
and safety standards, consistent with the public interest.
    This proposed rule would establish procedures to permit completion 
of new manufactured housing at the installation site, rather than in 
the factory, under certain circumstances. Currently, Sec.  3282.14(b) 
requires that manufacturers request and obtain HUD approval to permit 
alternative construction (AC) for each model of home that it wants to 
complete construction at the home site, rather than in the production 
facility. In general, this proposed rule would obviate the need for HUD 
approval in certain circumstances and permit construction on-site, 
rather than in the factory, that, upon completion, meets the 
construction safety standards. The on-site work that would be covered 
by this proposed rule would be limited to work required to bring the 
home into conformance with these standards. This rule would simplify 
on-site construction, by establishing uniform procedures to permit 
manufacturers to construct homes at the installation site without 
seeking advance approval. In developing this proposed rule, HUD 
provided a draft version to the Manufactured Housing Consensus 
Committee (MHCC) and incorporated many of the committee's comments. 
MHCC is a Federal Advisory Committee authorized by the Manufactured 
Housing Improvement Act of 2000 (Pub. L. 106-569) (2000 Act). This 
consensus committee was established to provide HUD with periodic 
recommendations regarding Federal manufactured housing construction and 
safety standards and related procedural and enforcement regulations. 
MHCC is composed of 21 voting members representing manufacturers and 
retailers, consumers, organizations with a general interest in 
manufactured housing, and public officials.
    The MHCC considered the new on-site completion process to be an 
improvement on the existing AC process. As recommended by MHCC,

[[Page 35903]]

HUD has modified the text of its original draft of this proposed rule 
to recognize that some aspects of joining sections of multiple section 
homes constitutes installation, rather than construction. HUD has been 
careful to make this distinction in other recent rules it has 
promulgated. On October 19, 2007 (73 FR 59338), HUD published a final 
rule that establishes model installation standards in 24 CFR part 3285. 
In that final rule, several subparts identify particular kinds of work 
done on-site to join section homes as being within the scope of these 
installation requirements.
    In addition to seeking general comments on this rule, HUD requests 
comments on a number of specific questions regarding how to define the 
scope of work that may be permitted under this proposed rule (see 
Section III of this preamble). Commenters are encouraged to consider 
these distinctions as they prepare their submissions on this proposed 
rule.

II. This Proposed Rule

    Section 3282.14 of HUD's Manufactured Home Procedural and 
Enforcement Regulations permits the sale or lease of manufactured homes 
that are not in compliance with the construction and safety standards 
in circumstances where the public interest is not compromised. That 
section establishes specific AC procedures that allow HUD to approve 
such homes to encourage innovation and the use of new technology. The 
procedure expressly applies when manufacturers seek to use innovative 
designs or techniques that are not in conformance with the construction 
and safety standards. In order to obtain an AC approval, the 
manufacturer must show that the construction it proposes provides 
performance that is equivalent or superior to that required by the 
construction and safety standards.
    The AC process is limited to specific circumstances and requires 
the manufacturer to submit a formal request to HUD. This procedure can 
be lengthy, and, when originally implemented, was not intended to 
address the sophistication of the current modern manufactured housing 
construction techniques. Manufactured homes now include home design 
features, such as stucco or brick, that cannot reasonably be completed 
in the factory, and which are currently being completed on-site under 
the AC process. HUD also recognizes that many parts of modern 
manufactured homes, such as components of smoke alarm, heating, 
ventilation, air conditioning, and plumbing systems, are typically 
shipped loose with the home. It is only when these systems are 
completed that the homes comply with the construction and safety 
standards. HUD believes that the individual application and approvals 
required by the AC process limit the availability of safe, durable, and 
affordable manufactured housing.
    This proposed rule would authorize HUD's approved Design Approval 
Primary Inspection Agencies (DAPIAs) and Production Inspection Primary 
Inspection Agencies (IPIAs) (collectively known as PIAs) to approve and 
inspect manufactured homes designed to be completed on-site. The 
proposal is consistent with HUD's policy to expand regulatory 
flexibility and encourage innovation in the construction of 
manufactured homes, and facilitate the timely completion of 
manufactured homes on-site. This proposed rule would also allow HUD to 
better use its existing resources to ensure that manufactured housing 
is durable and safe. This proposed rule would apply only to completion 
of home construction, and thus not apply to the installation of the 
home. Construction of a manufactured home and installation of a 
manufactured home are subject to two separate standards. As noted 
earlier, the HUD standards for the installation of manufactured homes 
are codified at 24 CFR 3285.
    For HUD to allow this variance from the current requirements 
relating to the construction of manufactured housing in the factory, 
manufacturers must establish an adequate quality control and inspection 
process, and must provide for good recordkeeping, in order to ensure 
protection for consumers and the public. In reviewing comments, HUD 
will be responsive to the needs of manufacturers, private inspection 
agencies, state officials, and consumers. HUD emphasizes that the 
procedures that would be permitted under this proposed rule would apply 
only to aspects of construction subject to Federal construction and 
safety standards. Thus, approval of construction completed on-site 
under this new process cannot be extended to requirements imposed under 
state or local authority that are not subject to Federal construction 
and safety standards.
    The Federal manufactured housing program is based upon national 
construction and safety standards that are enforced through the 
manufacturer's quality control systems, in-plant compliance inspections 
by HUD-approved third-party agencies, and performance monitoring of 
those agencies in the plant. Given the objective of the Federal 
manufactured housing program, this rule does not propose to permit 
major portions of a home to be completed beyond the plant, as that 
would avoid the normal inspection and certification process, and may 
frustrate legitimate local and state code enforcement efforts. In 
Section III of this preamble (``Specific Issues for Comment''), 
commenters are invited to respond to a number of questions aimed at 
defining the limits for proposed procedures.
    HUD submits that allowing selected completion of construction after 
the manufactured home is transported to the site, without requiring 
prior AC approval, will encourage the use of designs and techniques 
that will demonstrate the adaptability and versatility of manufactured 
housing. Manufacturers continue to make significant improvements to 
both the quality and the aesthetics of such homes. Easing the process 
for on-site construction could lead to increased recognition of 
manufactured homes as a viable source of unsubsidized affordable 
housing and could encourage zoning policies that do not discriminate 
against manufactured housing.

A. Incorporation of Manufactured Housing Consensus Committee 
Recommendations

    This proposed rule has a lengthy history involving collaboration 
with MHCC during the very beginning stages when the actual objectives 
and the concept of on-site completion were being developed. Starting in 
March 2003, MHCC was first provided with the Department's initial 
proposal concerning on-site completion. The concept evolved beginning 
with the MHCC's response in May 2003 and comments in August 2003. 
Additional discussions with MHCC took place in December 2003. From 2004 
through 2007, the HUD continued to update MHCC on the status of the 
proposed rule, and drafts were exchanged. In February 2008, HUD 
provided MHCC with a prepublication draft and spent several hours 
discussing the draft with MHCC in April, July, and August of 2008. 
Additional changes were made as a result of those discussions, and MHCC 
was provided with its last prepublication draft in April 2009.
    As a result of the comments received from MHCC on HUD's draft 
proposal, HUD modified the text of the draft proposed rule and 
accompanying preamble in several fundamental and substantial ways. One 
significant change recommended by MHCC, which HUD incorporated into the 
model installation standards and installation program, was to include 
several specific aspects of the

[[Page 35904]]

close-up work \1\ done on multiple section homes under the scope of 
installation standards, rather than under the scope of the construction 
and safety standards. While HUD does not propose to subject this work 
to the requirements of this proposed rule, such work would be subject 
to all applicable Federal and state installation requirements. Further, 
as a result of being considered installation rather than construction, 
different procedural and remedial requirements would apply to this 
work.
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    \1\ Close-up consists of the work and activities for completing 
the assembly of the manufactured home. It is the work of joining up 
of all sections of a multi-section manufactured home. (See 24 CFR 
part 3285, subpart I.)
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    Through this rule, HUD seeks to establish a clear basis for 
determining the party responsible for the various activities relating 
to producing and siting a manufactured home. By including the close-up 
of multiple section homes within installation standards, rather than 
construction and safety standards, those limited and specifically 
defined aspects of the placement of a manufactured home at a site would 
not be subject to either the on-site completion or AC processes. For 
example, the final work on Wind Zone I low-pitch hinged roofs that are 
not penetrated would generally be governed by state or Federal 
installation standards. HUD stipulates wind loads and design 
requirements at 24 CFR 3280.305(c)(1) and (2). Each manufactured home 
must be designed according to according to these standards; the home 
must be designed and constructed to conform to one of three wind load 
zones.\2\ The appropriate wind zone used in design is dependent upon 
where the home will initially be installed.
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    \2\ In order to ensure that manufactured homes survive the 
threats of hurricanes and other storms, HUD developed Wind Zone 
construction standards. Manufactured homes may be installed only in 
counties where they meet the Wind Zone construction standards that 
apply to that county. Wind Zone I homes have the least stringent 
construction standards and Wind Zone III homes have the most 
stringent construction standards. Homes designed and constructed to 
a higher Wind Zone can be installed in a lower Wind Zone (a Wind 
Zone III home can be installed in a Wind Zone I or II location). 
However, a Wind Zone I home cannot be installed in either a Wind 
Zone II or III area.
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    Even when close-up work is governed by the installation standards, 
the manufacturer remains responsible for assuring that the sections of 
a multiple section home can be joined in a way that will bring the home 
into conformance with the construction and safety standards. The model 
installation standards require manufacturers to provide instructions 
for close-up in their installation instructions (see Sec.  3285.801). 
Therefore, while the installer is responsible for completing the close-
up work, the manufacturer continues to be responsible for providing 
instructions that are acceptable under the construction and safety 
standards.
    Under this proposed rule, work done to complete the home to the 
construction and safety standards would fall within three categories: 
(1) Work done in the factory in accordance with the construction and 
safety standards and an approved quality assurance manual; (2) work 
done that does not comply with the construction and safety standards, 
but has been approved through the AC process; and (3) work done in 
accordance with procedures proposed to be established by this rule, 
which would cover work done beyond that done in the factory to complete 
certain aspects of the home to the construction and safety standards. 
The designs for construction work to be done on-site in accordance with 
the procedures proposed by this rule would be subject only to Federal 
construction and safety standards; state and local jurisdictions are 
preempted from establishing their own design requirements for these 
aspects of the home, unless the requirements are identical to the 
Federal construction and safety standards.
    Examples of the types of work to which the rule would apply 
include:
    (a) Completion of dormer windows;
    (b) Addition of stucco, stone, or other siding that is subject to 
transit damage;
    (c) Retailer changes to the home on-site (such as add-ons subject 
to requirements established by the local authority having 
jurisdiction), when the home is taken out of compliance with the 
construction and safety standards and then is brought back into 
compliance with those standards;
    (d) Assembly of any multistory design that conforms to the 
construction and safety standards when finished; and
    (e) Certain types of hinged roof and eave construction that are not 
exempted as installation by Sec.  3285.801(f). This exemption would 
include certain roof peak cap construction and peak flip construction 
associated with completing the peak/ridge area of the roof. Conforming 
changes to this regulatory section of the Model Manufactured Home 
Installation Standards are also being proposed to clarify that certain 
design elements, including those examples listed above, are to be 
considered construction and, as such, are also not exempted as 
installation regardless of the roof pitch of the hinged roof.
    On-site completion as proposed by this rule would apply to the 
completion of any high-pitch (i.e., roof pitch equals or exceeds 7:12) 
hinged roof construction that conforms to the construction and safety 
standards when finished. Completion of lower-pitched hinged roofs that 
are not penetrated above the hinge and are designed for Wind Zone I 
would be considered installation, and are not proposed to be covered by 
this rule.
    However, HUD is seeking comments on whether different treatment for 
high pitch roofs with slopes 7:12 or greater is needed because for 
higher roof slopes, a portion of the attic meets the ceiling height/
living space requirements of the construction and safety standards and, 
as such, will require the attic floor to be designed for the floor live 
loads of 40 pounds per square foot (psf), in accordance with Sec.  
3280.305(g) of the construction and safety standards. HUD is concerned 
that under the on-site completion process, these floor live loads may 
not be considered, as is the current practice with the AC process. For 
roof slopes of less than 7:12, the ceiling height of the entire attic 
space will be less than 6'-0'' and, as such, does not meet the minimum 
requirements for living space in Sec.  3280.104 of the construction and 
safety standards.
    Further, the reference standard of the American Society of Civil 
Engineers (ASCE), ASCE 7-88, provides that any uninhabitable attic 
space which can be used for storage be designed for a storage live load 
of 20 psf. Manufacturers should note that they remain responsible for 
assuring that a home with a high-pitch hinged roof complies with all 
applicable construction and safety standards if the home is sold with 
indications that the additional space provided under the roof when 
fully erected is suitable for living space. Therefore, when fixed 
stairway access is provided to the attic space, the floor of the attic 
must comply with structural design requirements for floors, either to 
be used as living space or to withstand a 40 psf live load (rather than 
a storage load). The manufacturer must also provide either insulation 
requirements for the floor of the upper living space area or an 
insulated and, where appropriate, weather-tight attic access panel or 
hatch.
    In the final rule that will follow this proposed rule, HUD may 
further clarify these requirements through conforming amendments to the 
design requirements in the construction and safety standards that must 
be met for high-slope hinged roofs below which living space is likely 
to be created when the roof is fully raised.

[[Page 35905]]

    Examples of designs in which the completed home does not comply 
with the construction and safety standards when finished and would 
therefore require an AC approval include:
    (a) Single-family attached construction;
    (b) Multi-story homes that do not comply with the standards because 
of egress or other requirements; and
    (c) A home installed without floor insulation over a basement; 
i.e., the existence of a basement will not substitute for insulation 
under the construction and safety standards. (However, when the floor 
is properly insulated at the factory, it may be installed over a 
basement without having to use either the on-site or AC approval 
processes.)
    Another change recommended by MHCC and adopted by HUD in this 
proposed rule concerns the labeling system for homes completed under 
the on-site process. Based on MHCC recommendations, HUD has fashioned 
an on-site labeling system that requires only one permanent label, 
rather than both a temporary, preliminary and a permanent final label, 
as HUD had originally drafted.
    HUD did not incorporate several changes the MHCC recommended to the 
consumer notice required as part of this rule, because the 
recommendations were not consistent with the responsibilities otherwise 
established for all parties in this proposed rule. The text of the 
consumer notice and special permanent label were revised to simplify 
the content, while assuring adequate consumer understanding of the 
construction procedure applicable to any manufactured home completed 
on-site under this special approval process.
    This proposed rule also provides that, as part of the on-site 
completion process, the DAPIA will approve a quality control checklist 
provided by the manufacturer. This checklist will then be used in 
verifying that the required on-site work has been completed to the 
construction and safety standards, and may also be used by the IPIA to 
ensure the effectiveness of the manufacturer's quality control system.
    Another significant change recommended by MHCC that HUD 
incorporated was to limit the performance of the on-site inspections 
required by this rule to the IPIA. HUD's draft proposal included a 
section entitled ``State Agency Inspection.'' This section permitted a 
state to elect to conduct the on-site inspections set forth in this 
rule if the state met certain criteria necessary to become an Accepted 
State Agency.
    There was considerable disagreement about whether such a state 
should conduct on-site inspections ``on behalf of the IPIA.'' MHCC's 
recommendation proposed that even though the IPIA was not performing 
the on-site inspection, the IPIA would still retain the responsibility 
of determining whether or not a manufacturer was performing adequately. 
MHCC's proposal also only permitted the IPIA to require red tagging and 
re-inspection when such a determination was made. MHCC's recommendation 
closely tracked the arrangement that is currently used by IPIAs to 
conduct AC inspections whereby IPIAs contract with third parties to 
conduct the final on-site inspection. However, unlike the AC 
arrangement proposed by this rule, the IPIA was not expected to enter a 
contractual arrangement with state governments; rather, HUD would 
authorize state on-site inspections. HUD suggested that any state that 
met the requirements to perform on-site inspections in the state should 
also be responsible for reviewing each manufacturer's final on-site 
inspection report and determining whether to accept that inspection 
report. For the purposes of this proposed rule, the State Agency 
Inspection section was omitted in its entirety.
    HUD nevertheless remains highly interested in this issue and is 
seeking additional comments on the topic, and, based on comments, will 
further consider the appropriateness of its possible inclusion in this 
section in HUD's regulations.
    MHCC also suggested that the requirement for the DAPIAs to retain 
copies of on-site approvals in their permanent records be limited to 5 
years. Because this suggestion is consistent with the current 5-year 
requirement for DAPIA retention of approved designs and design changes, 
HUD has incorporated the MHCC suggestion into the proposed rule.

B. Procedure for Approval of Completion of Non-Compliant Designs 
(Alternative Construction)

    The proposed procedure to allow limited on-site completion of 
manufactured homes would complement the AC procedure by which HUD now 
approves construction using designs and techniques that do not comply 
with the construction and safety standards. These two procedures (HUD's 
proposed procedure and the existing AC procedure) will address 
different aspects of the final product, though both may be utilized on 
the same home. The on-site completion process proposed by this rule is 
for homes that comply with the requirements of the construction and 
safety standards and would eliminate further use of the AC process for 
this same purpose. The AC process would be reserved for homes with use 
of new designs or techniques that do not comply with the construction 
and safety standards.
    The procedures proposed to be established by this rule for on-site 
completion would differ from the AC process in that:
    (a) On-site completion would apply only to homes that can be 
certified as substantially meeting the requirements of the construction 
and safety standards when labeled in the factory and that comply fully 
with those standards when completed on-site;\3\
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    \3\ (Later in this preamble, HUD raises a question about whether 
this proposed process for completion on-site also could apply to 
inspection of transportation damaged homes to which substantial 
repairs are performed outside of the factory. In such a case, the 
manufactured home would have been labeled in the factory, but 
because of damage sustained before sale to the purchaser, or 
alterations made as part of the sale, could not be sold by the 
retailer until significant repairs are made under the authority of 
the manufacturer, as provided in 24 CFR 3282.253.)
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    (b) On-site completion would allow a manufacturer to work directly 
with the DAPIA and IPIA for approval to complete aspects of 
construction at the final home site and avoid submissions for approval 
by HUD. The on-site completion process would also eliminate the direct 
HUD review and approval currently required under the AC process; and
    (c) On-site completion would require the manufacturer's quality 
control manual to extend to the on-site work. The process would require 
the IPIA to concur with the manufacturer's quality control manual and 
to accept responsibility for assuring that the system is working and 
that on-site construction is completed in conformance with the 
construction and safety standards and approved designs. Only persons 
authorized by the manufacturer would complete the construction work on-
site, and only the IPIA in the factory of origin, or another qualified 
independent inspector acceptable to and acting on behalf of the IPIA 
(including, possibly, an IPIA in the state where the home is sited), 
would perform oversight tasks, including inspections.
    The process proposed by this rule would eliminate much of the 
reporting for site inspections of completed homes currently required 
under the AC process. The manufacturer would need only report to HUD or 
its agent the location of the home, its serial number,

[[Page 35906]]

and a brief description of the work done on-site. This information is 
proposed to be included on a modified production form that is based on 
the current HUD Manufactured Home Monthly Production Report (Form 302), 
on which each manufacturer already reports to its IPIA and to HUD (or 
its monitoring contractor) certain completion and shipping information 
on labeled units.
    The on-site completion process does not alter in any manner the 
overriding requirement to construct or complete a home in compliance 
with the construction and safety standards. Taking a home out of 
compliance with these standards, regardless of where completion takes 
place, is a violation of the Act. For example, if a retailer agrees to 
make any major change to the home on-site, the home must meet the 
construction and safety standards when that work is completed. The 
retailer continues to be prohibited from selling a home that does not 
comply with the construction and safety standards, and the manufacturer 
continues to be responsible for assuring correction of a nonconforming 
home before sale. To the extent that the alteration involves an aspect 
of the home that is governed by the construction and safety standards, 
the work must be performed in accordance with a DAPIA-approved design 
and must be inspected in accordance with the on-site completion 
requirements that would be established in this rulemaking. State and 
local jurisdictions continue to be permitted to inspect add-ons and, as 
currently provided in Sec.  3282.303(b) of the regulations, to inspect 
retailer alterations.

C. Discussion of Proposed Regulations

    1. Purpose and applicability (Sec.  3282.601). This rule proposes a 
procedure that would allow manufacturers to deviate from existing 
completion requirements when an aspect of construction cannot 
reasonably be completed in the manufacturer's production facility. For 
example, it might not be possible to completely assemble a dormer 
window until the home arrives on-site. In general, the proposed rule 
permits on-site completion under some circumstances, without requiring 
an AC approval from HUD. These special procedures would be available 
only when the manufacturer, its DAPIA, and its IPIA agree to follow 
them, and can only be used if all affected homes are substantially 
completed in the factory, as defined.
    2. Qualifying Construction (Sec.  3282.602). The on-site approval 
process will be available for work to complete a partial structural 
assembly or system that cannot reasonably be done in the factory. The 
reasons for this difficulty may result from, for example, 
transportation limitations, design requirements, or delivery of an 
appliance ordered by a homeowner. This proposed rule would clarify when 
work on certain hinged roofs could be completed under the installation 
standards, rather than through the on-site process under the 
construction and safety standards.
    3. DAPIA Approval (Sec.  3282.603). The proposed rule provides that 
the manufacturer must request and obtain DAPIA approval to complete, 
on-site, the final, limited aspects of construction of a manufactured 
home that would be substantially completed in the factory (i.e., the 
home leaving the factory must include: (1) A complete chassis; and (2) 
structural assemblies and plumbing, heating, and air conditioning 
systems that are complete except for limited construction that cannot 
reasonably be completed in the manufacturer's production facility and 
that the DAPIA has approved for completion on-site). Among other 
things, in the approval, the DAPIA will identify what work will be 
completed on-site and will authorize a notice that includes a 
description of this work, identify instructions authorized for 
completing the work on-site (including any special conditions and 
requirements), and list all models for which the DAPIA approval is 
applicable.\4\ As part of its approval, the DAPIA will stamp or sign 
each page of any set of designs accepted for completion on-site, and 
will include an ``SC'' designation on each page that includes an 
element of construction that is to be completed on-site.
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    \4\ As with the AC process, an approval for on-site completion 
may be made more flexible when the IPIAs and manufacturer agree that 
the approval is not model-specific, but may be extended to 
additional models. See Sec.  3282.14(c)(3).
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    In addition, the DAPIA must approve the part of the manufacturer's 
written quality assurance manual that is applicable to completing the 
manufactured homes on-site under the construction and safety standards. 
When the part of the quality assurance manual applicable to the on-site 
completion also has received the concurrence of the IPIA, the system 
may be approved as part of the manufacturer's quality assurance manual. 
If this approval is not done as part of the initial approval of the 
entire quality assurance manual, the pertinent part of the 
manufacturer's manual will be deemed a change to be incorporated into 
the manual in accordance with established procedures (see Sec. Sec.  
3282.203(e) and 3282.361(c)(4)). The approval will also include other 
requirements, such as use of an inspection checklist developed by the 
manufacturer and approved by the DAPIA, in the manufacturer's and 
IPIA's final inspections. As with the procedures followed under an 
approval for AC, the manufacturer's IPIA will then be responsible for 
assuring that the homes the IPIA inspects under the new procedures 
proposed by this rule comply with the changes in the quality assurance 
manual, as provided in Sec.  3282.362(a) of the existing regulations, 
and with the approved design or, where the design is not specific, to 
the construction and safety standards.
    4. DAPIA Responsibilities (Sec.  3282.604). In addition to the 
DAPIA's regular duties under Sec.  3282.361, the DAPIA would be 
responsible for:
    (a) Verifying that the manufacturer submits all required 
information, when a manufacturer seeks a DAPIA's approval to complete 
any aspect of construction under on-site under Sec.  3282.603;
    (b) Reviewing and approving the manufacturer's designs, site 
completion instructions, and quality assurance manuals for the site 
work to be performed;
    (c) Determining whether there is complex work involved that 
requires special testing or inspections for IPIA inspectors to perform 
the on-site inspections; and
    (d) Revoking or amending its approvals for on-site construction, as 
provided in Sec.  282.609, after determining that the manufacturer is: 
(1) Not complying with the terms of the approval or the requirements of 
Sec.  3282.611; (2) the approval was not issued in conformance with the 
requirements of Sec.  3282.603; (3) a home produced under the approval 
fails to comply with the Federal construction and safety standards or 
contains an imminent safety hazard; or (4) the manufacturer failed to 
make arrangements for one or more manufactured homes to be inspected by 
the IPIA prior to occupancy. Upon revocation or amendment of a DAPIA 
approval, the DAPIA must immediately notify the manufacturer, the IPIA, 
and HUD.
    5. Requirements Applicable to Completion of Construction (Sec.  
3282.605). After an acceptable final inspection of work completed on-
site, the manufacturer must report to HUD or its agent the serial 
number and a brief description of the work done on-site for each home 
produced under the these procedures. This report must be consistent 
with the DAPIA approval and

[[Page 35907]]

is to be submitted, in part, on the modified production Form 302. A 
copy of this report also must be submitted to the State Administrative 
Agencies (SAAs) of the states where the home is substantially completed 
in the factory and where the home is sited, as applicable. The serial 
numbers as provided by the manufacturer must contain the prefix ``SC'', 
for site construction.
    A home will be shipped from the factory with a special on-site 
completion certification label. This on-site completion certification 
label is in lieu of the traditional manufacturer's certification label 
(see 24 CFR 3280.5 and 3282.362(c)(2)) and will indicate that the 
manufacturer must complete and inspect the authorized on-site work. The 
on-site completion certification label will be a different color, but 
will be the same size as the traditional certification label and will 
be located and affixed in the same manner as required for the 
traditional certification label (see 24 CFR 3280.11). The color green 
has been specified as a requirement for the on-site completion label, 
in order to distinguish it clearly from the traditional red 
manufacturer's label for certification of completion in the factory in 
accordance with the construction and safety standards.
    HUD seeks comment on whether this color distinction between the 
traditional label and the on-site completion label would be helpful to 
state and local regulators or to consumers who might purchase homes 
completed under the on-site completion process.
    Approved designs for completion of aspects of construction outside 
of the manufacturer's plant must be marked with the identification code 
for the appropriate approved set of designs, and must be included as a 
separate part of the manufacturer's approved design package.
    All aspects of construction that are completed on the final home 
site remain the responsibility of the manufacturer, which must ensure 
that the home is properly labeled and, as part of its final on-site 
inspection report provided to the IPIA, certify that the work is 
consistent with DAPIA-approved instructions and conforms with approved 
designs or, as appropriate under Sec.  3282.362(a)(1)(iii), conforms to 
the construction and safety standards. The IPIA would be required to 
review all of the manufacturer's final on-site inspection reports and 
to inspect all on-site work completed pursuant to an approval under 
this new process. If the IPIA determines that the manufacturer is not 
performing adequately in conformance with the approval, the IPIA may 
require reinspections, until it is satisfied that the manufacturer is 
conforming to the conditions included in the approval.
    6. Consumer Information (Sec.  3282.606). In addition to the on-
site completion certification label, the home must be shipped with a 
``NOTICE'' that explains that the home will comply with the 
requirements of the construction and safety standards only after all of 
the limited site work has been completed in accordance with detailed 
instructions provided by the manufacturer, and the home has been 
inspected. The ``NOTICE'' is to be displayed in a prominent and highly 
visible location within the home (e.g., a kitchen countertop or front 
door), and includes information instructions for those aspects of 
construction to be completed on-site and provided with the home. The 
notice may be removed only after the final inspection report is 
completed and the purchaser or lessor is provided with a copy of the 
report.
    The sale or lease of the manufactured home to the purchaser will 
not be considered complete (see Sec.  3282.252(b)) until the purchaser 
has been provided with a copy of the manufacturer's final site 
inspection report, including the certification of completion that has 
been reviewed and accepted by the IPIA. The manufacturer must maintain 
in its labeling records an indication that the final on-site inspection 
report and certification of completion has been provided to the 
purchaser and the retailer.
    7. Responsibilities of the IPIA (Sec.  3282.607). The 
responsibilities of the IPIA will include, in addition to the IPIA's 
regular duties under Sec.  3282.362:
    (a) Working with the manufacturer and the manufacturer's DAPIA to 
ensure that the manufacturer's quality control system has the proper 
procedures and controls to assure that the on-site construction work 
will conform to DAPIA-approved designs and HUD's construction and 
safety standards;
    (b) Providing the special on-site completion certification labels 
that the manufacturer may use to label a home that has been 
substantially completed in the factory;
    (c) Monitoring the manufacturer's proposed system for tracking the 
status of homes built under the approval until the on-site work and 
necessary inspections have been completed, to assure that the work is 
being performed properly on all applicable homes;
    (d) Performing the required inspections of the manufacturer's 
reports and site work, to verify compliance with the manufacturer's 
quality control system, the approved designs, and, as appropriate, the 
construction and safety standards. Only the IPIA, or other qualified 
independent inspector acceptable to and acting on behalf of the IPIA, 
may perform these inspections. The inspector must be free of any 
conflict of interest (see Sec.  3282.359) and not be involved in the 
sale or site completion of the home. When the DAPIA deems it 
appropriate, the DAPIA may establish minimum qualifications for the 
inspector who is to perform the final site inspection responsibilities 
of the IPIA (e.g., inspector must be an engineer); and
    (e) Maintaining a copy of each final site inspection report 
submitted by a manufacturer and each inspection report prepared or 
accepted by the IPIA.
    8. Manufacturer's Responsibilities (Sec.  3282.608). The 
manufacturer's responsibilities will include:
    (a) Certifying the home as required and as evidenced by affixing 
the on-site completion certification label;
    (b) Completing all work performed on a home that is necessary to 
assure compliance with the construction and safety standards, 
regardless of who does the work or where it is completed. Such 
responsibility would not extend to any limited close-up work for 
multiple section homes as would be defined as installation work in a 
final rule establishing model installation standards;
    (c) Working with the DAPIA and IPIA to obtain approval and 
concurrence on the quality control system the manufacturer will use to 
assure that the on-site work is performed according to DAPIA-approved 
designs, and to incorporate this system into the manufacturer's quality 
assurance manual;
    (d) Working with the DAPIA to develop an approved checklist, 
providing the IPIA with the checklist to be used when the IPIA inspects 
the home after completion on-site, and notifying the IPIA that the home 
is ready to be inspected;
    (e) Maintaining a system for tracking the status of homes built 
under the approval, to ensure that each home installed on a building 
lot has the on-site work and necessary inspections completed;
    (f) Paying IPIA costs for performing on-site inspections;
    (g) Providing a copy of the instructions for completing the work 
on-site, inside the home and to the IPIA, for monitoring/inspection 
purposes (the copy provided in the home may be provided with the 
installation instructions in the home). Either before, or at the time 
on-site work commences, the manufacturer must provide the IPIA with a 
copy of any applicable DAPIA-

[[Page 35908]]

approved quality assurance manual for on-site completion changes, the 
approved instructions for completing the construction work on-site, and 
the approved inspection checklist.
    HUD invites commenters to address whether manufacturers should be 
required to comply with this requirement by maintaining these documents 
at the job site;
    (h) Providing a copy of the final site inspection report and 
certificate of completion to the first purchaser or lessor of the home 
prior to occupancy;
    (i) Maintaining a copy of the site inspection report and the 
notification of the IPIA's approval or acceptance of this report; and
    (j) Notifying the appropriate state or local jurisdiction of any 
add-on to the home, as referenced in Sec.  3282.8(j), that is not 
covered by the manufacturer's inspection and certification of 
completion, but about which the manufacturer knows or reasonably should 
have known. The manufacturer is not required to provide this 
notification if the manufacturer knows that the state or local 
jurisdiction has already inspected the add-on.
    9. Enforcement (Sec. Sec.  3282.609, 3282.610, and 3282.611). A 
manufacturer or IPIA found to be in violation of the requirements for 
this procedure may lose the discretion to utilize the on-site 
completion procedure in the future. HUD or the DAPIA also may withdraw 
or amend an approval for on-site construction if the manufacturer does 
not comply with the requirements for the approval or produces a home 
that does not comply with the Federal construction and safety 
standards. Other remedies provided separately under the Act and HUD's 
regulations will also continue to be available, as applicable, but HUD 
would consider a manufacturer or IPIA that complies with the 
requirements for on-site completion to be in compliance with the 
certification requirements of the Act and regulations for aspects of 
construction that are covered by the on-site completion approval.

D. Comparison of Current and Proposed On-Site Construction Approvals

    1. Current Process vs. On-Site Completion. HUD has allowed certain 
details of manufactured homes to be finalized on-site as an extension 
of the siting process, but without imposing specific requirements for 
the on-site inspection of the work. This work has included, to some 
extent: (1) Final framing and decking of certain hinged roofs that are 
not penetrated for windows or connections, including connections for 
heat-producing appliances and plumbing equipment; (2) close-up details 
for multiple sections; and (3) close-up details for single sections 
(e.g., exterior roof coverings and siding for expandable rooms). Under 
this proposed rule, HUD would continue to allow this type of work to be 
finalized at the home site, but would require the work to be subject to 
better quality control processes, either as part of installation, AC, 
or on-site completion. Other details also could be finished on-site 
under this proposed rule or under the AC process in Sec.  3282.14. For 
example, areas that could not be completed in the factory because of 
transportation height restrictions (e.g., incomplete flue pipe 
installations for high roof slope conditions) would require approval to 
be completed on-site.
    2. Activities Qualifying for On-Site Approval. Construction 
activities that could qualify for approval under the procedures set out 
in this proposed rule are the partial completion of structural 
assemblies or systems (e.g., electrical, plumbing, heating, cooling, 
fuel burning, and fire safety systems) and components built as an 
integral part of the home, to the extent warranted because:
    (a) Any hinged roof that is not considered part of the installation 
of the home (See Sec.  3285.801(f));
    (b) The home design involves work that cannot reasonably be 
completed in the factory (e.g., fireplaces at marriage lines and 
designs that involve such finishing aspects as stucco, brick, or tile). 
This could include work that would be performed by a retailer in 
providing an add-on for the home when that work takes the home out of 
conformance with the construction and safety standards and then brings 
it back into conformance; or
    (c) The homeowner is providing a required appliance, such as a 
furnace, water heater, or cooking range.
    3. Activities Not Qualified for On-Site Approval. The manufacturing 
of the following items would not qualify as limited site completion, 
and therefore would not qualify under the procedures set out in this 
proposed rule for approval outside the certified production facility 
and quality assurance program:
    (a) Complete or substantial construction of structural assemblies 
of a home, except pursuant to an approval received by the manufacturer 
under AC (Sec.  3282.14). Examples of structural assemblies include the 
roof, walls, and the floor. An example of construction that would be 
substantial and, therefore, would not qualify for the on-site 
completion process, is single family attached construction;
    (b) Complete or substantial assembly of systems (e.g., electrical; 
plumbing; heating, cooling, and fuel burning systems; transportation; 
and fire safety) and components that are built as an integral part of 
the home during the manufacturing process and are usually completed in 
the factory, except pursuant to an approval received by the 
manufacturer under Sec.  3282.14 or as allowed to be finalized at the 
site as part of installation; and
    (c) Construction that when completed on-site would not conform to 
the manufactured home construction and safety standards. An example of 
this type of construction would be a multi-story home that did not 
comply with the construction and safety standards because of distance 
requirements to reach an exterior door for egress from a bedroom.

E. Conforming Changes

    The proposed rule includes conforming changes to two other sections 
of 24 CFR part 3282. A conforming amendment is made to Sec.  3282.552 
to specify the information that is included on the reports currently 
submitted under 24 CFR part 3282.
    HUD is also using this rulemaking to make a technical correction to 
the heading of Sec.  3282.8(a), which would be updated from Mobile 
homes to Manufactured homes.

III. Specific Issues for Comment

    HUD continues to encourage suggestions to improve its 
responsiveness to technological advancements and innovation that foster 
the use of manufactured housing for affordable housing and to enhance 
affordable homeownership opportunities. To assist in HUD's development 
of this proposed rule, HUD has focused and solicited comments on 
certain features of its proposed on-site completion procedure. Further, 
HUD is very interested in the views of manufacturers, retailers, 
consumers, private inspection agencies, installers, and state and local 
governments on the usefulness and practical aspects of such a 
procedure. Therefore, in addition to commenting on the specific 
provisions of this proposed rule, HUD invites comment on the following 
questions and any other related matters or suggestions:
    (1) How should the rule define the limits of the construction work 
that may be completed on-site? Should the definition of a manufactured 
home that is ``substantially completed'' in the factory be clarified? 
If so, how?

[[Page 35909]]

    (2) Should the proposed requirements applicable to on-site 
completion in accordance with the construction and safety standards be 
extended to repairs of homes in the hands of retailers or distributors 
or to work proposed to be defined as installation, especially close-up 
details for multiple and single sections? How can home purchasers be 
assured that this work conforms to the Federal construction and safety 
standards or does not take the home out of compliance? Should other 
special requirements be attached to any of these construction aspects; 
e.g., should hinged roofs be required to be completed by factory-
certified installers?
    (3) Has HUD drawn the proper lines between aspects of work on the 
home to be finalized as part of installation (and, therefore, under the 
responsibility of the installer, rather than the manufacturer) and 
those aspects that would be considered completion of construction under 
a special approval for either on-site or AC?
    (4) Until recently, few on-site inspections were being conducted 
prior to occupancy under the current AC practice. What is the best 
method for assuring that the on-site construction work is inspected for 
compliance with the construction and safety standards prior to 
occupancy? Is it adequate protection to require the manufacturer to 
prepare a final site inspection report that includes a certification of 
completion as required in this proposed rule? Would using a temporary, 
preliminary and a permanent final label instead of the on-site 
completion certification label be a better way of assuring that the 
inspections are performed? With respect to the financing of 
manufactured homes, HUD seeks comments from lenders on better ways to 
ensure that adequate on-site inspections are conducted prior to 
occupancy.
    (5) Should the IPIA be the only entity permitted to conduct the on-
site inspections required under this rule or should the rule be amended 
to permit a state to conduct the on-site inspections? If yes, what 
criteria should such a state meet in order to perform this function? 
Assuming established criteria were in place, should a state that meets 
the criteria have an exclusive right to perform these on-site 
inspections in its state? If a state were permitted to conduct the on-
site inspections, should the state also review the manufacturer's final 
on-site inspection report and determine whether to accept that 
inspection report, or should the IPIA be responsible for this task? If 
the state is permitted to conduct the on-site inspection, would it 
conduct the inspection independently or on behalf of the IPIA? Is it 
appropriate for a state to be working for an IPIA? Under these 
circumstances should the ability to require red-tagging and re-
inspection of homes rest solely with the IPIA or extend to the state 
performing the on-site inspection?
    (6) Should the IPIA inspect all homes completed on-site, or should 
the IPIA undertake inspections for only a certain number or percentage 
of homes completed on-site? Should there be an initial inspection of a 
certain number of homes and then a random number thereafter? What 
percentage of homes should be inspected to ensure compliance with the 
Federal construction and safety standards for homes completed on-site?
    (7) Should authorized inspectors be limited to state and local 
inspection officials, rather than permitting IPIAs to choose some other 
qualified independent inspector? How should a ``qualified independent 
inspector'' be defined, and should a provision be included to prohibit 
use of inspectors who have been identified as performing inspections 
inadequately?
    (8) Does HUD need to identify those aspects of completion of the 
home that are not subject to Federal construction and safety standards 
(e.g., stairs and handrails) and inform local inspectors that they may 
inspect those aspects? For example, in its request for approval to 
complete construction on-site, should a manufacturer be required to 
identify those design aspects that are not covered by the construction 
and safety standards and, therefore, are subject to local or state 
building codes? Should these design aspects also be listed individually 
on the Notice required to be displayed in the home?
    (9) Section 3282.604 sets forth the DAPIA's responsibilities. In 
addition to determining if there is complex work involved requiring 
special instructions, should the DAPIA be permitted to determine 
whether the complex work also requires special criteria or 
qualifications for the IPIA inspector in order to perform the on-site 
inspections?
    (10) Should the rule establish, or provide that the DAPIA establish 
in its approval, a deadline for completion of the work on-site and 
final inspection? Should protections, in addition to section 622 of the 
Act (42 U.S.C. 5421), be defined for the consumer who has entered into 
an arrangement to purchase a manufactured home that is to be completed 
to the construction and safety standards on-site? How can HUD ensure 
that a purchaser can occupy the home at the earliest time possible, 
consistent with the completion of acceptable inspections? Should 
regulatory protections be defined for a manufacturer or retailer that 
has entered into a contract in which the construction of the home is to 
be completed on-site by a certain date, but where delays have occurred 
outside of the manufacturer's or retailer's control in the construction 
or final inspection?
    (11) Should HUD specify requirements for the retailer to notify the 
manufacturer that a home subject to the on-site completion process is 
ready for the manufacturer's final inspection, or should the 
requirements be left to private arrangements?
    (12) Under subpart F of HUD's regulations in 24 CFR part 3282, a 
retailer that makes alterations of correction on a home before its sale 
to the first purchaser is acting on behalf of the manufacturer. Should 
the regulations in subpart F be extended to provide that some or all of 
the procedures for manufacturer and IPIA inspection of the work on-site 
also apply to repairs, on-site or in retailer lots, of manufactured 
homes that are completed and labeled in the factory, but that are 
substantially damaged before being sold by a retailer? Should the 
regulations in subpart F be extended to provide that some or all of the 
procedures for inspection apply whenever a retailer, in the process of 
providing alterations or add-ons to a new home, takes the home out of 
compliance with the construction and safety standards? If HUD extends 
the on-site construction approval process to retailer corrections, 
should the required inspections apply to only certain kinds of 
corrections? If so, to which?
    (13) Should the rule address more explicitly what happens if the 
manufactured home does not pass the on-site inspection? If so, what 
additional details would be helpful? For example, should the rule 
require that such a home be removed, repaired, or red-tagged?
    (14) Is the proposed labeling procedure, in which a home to be 
completed using the new procedures is labeled with a special label and 
includes a consumer notice referencing the procedures, workable? Would 
additional protections be necessary if, instead of following the 
proposed process for on-site completion, the IPIA would red-tag the 
labeled home at the factory, and would then itself remove the red tag 
at the site when all work is completed and found satisfactory?
    (15) What mechanism can be used to assure that the prospective 
purchaser is provided with the Consumer Information Notice?

[[Page 35910]]

    (16) Should the rule clarify what is the ``date of manufacture'' 
for units completed under this procedure, for purposes of the 
information required to be included on the data plate? If so, what 
should the clarification say? Without such clarification, what date 
would manufacturers use on the data plate?
    (17) Can monthly reporting to HUD of on-site home production be 
achieved better, such as through the use of individual reports, rather 
than combining the required extra information with the existing 
production report (Form 302) information? If so, provide 
recommendations for how to report production information on homes 
completed on-site.
    (18) Are there special concerns about the ability of a state PIA to 
conduct out-of-state inspections and about the costs for those state 
PIA inspections that should be addressed in the rule?
    (19) HUD is proposing to allow the final work on certain simple 
hinged roofs to be completed as part of installation, but would require 
all other hinged roofs to be completed as part of the construction of 
the homes. Under the currently effective requirements, hinged roofs 
that are either penetrated or have slopes of 7:12 or greater must be 
approved using the AC process, while certain unpenetrated lower-slope 
hinged roofs remain the responsibility of manufacturers to complete in 
accordance with the construction and safety standards, but without need 
for any special approval. HUD is proposing more flexibility in using 
designs with such roofs because the proposed rule also would require 
all such work to be inspected and that the manufacturers remain 
responsible for the work on the most complicated designs. If the 
inspection requirements for on-site approvals are changed from the 
levels proposed, should the inspection requirements vary according to 
the kind of work involved? If so, specify the kinds of work and the 
inspection requirements that should apply.
    (20) Similarly, are there any special processing or inspection 
requirements that should be included in a final rule if HUD permits 
completion on-site of multi-story and high-slope roof style homes 
designed to be located in Wind Zones II and III? To date no multi-story 
homes, or single-story homes with high-slope hinged roofs, have been 
approved under AC procedures for installation in high wind areas. In 
responding to this question, commenters should address the effect of 
significantly higher wind forces that such structures must resist, and 
the more complex connections and construction that is required to 
complete these designs on-site.
    (21) Are there other jurisdictional concerns about the monitoring 
of the work completed on-site being the continuing responsibility of 
the manufacturer's IPIA? Should the rule provide that the IPIA 
responsible under these procedures may agree to allow any other IPIA to 
provide the services required of the responsible IPIA? Would such a 
provision conflict with any state requirements relating to the 
inspection of manufactured homes?
    (22) What procedures should be established if an exclusive state 
IPIA is unable to conduct out-of-state inspections on homes approved 
for completion under this new process?
    (23) The proposed rule requires the manufacturer to send a copy of 
identifying information on homes completed under an on-site approval to 
HUD and to the State Administrative Agency (SAA) in the states where 
the factory is located and where the home is sited. Should the 
manufacturer also be required to provide a copy of the final site 
inspection report, or any oth