Current through Register Vol. 49, No. 9, September, 2024
CHAPTER I.
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
governing the construction and installation of manufactured homes manufactured,
sold or offered for sale in the state of Arkansas.
The following rules 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 pertaining to the
manufacture, sale, and installation of manufactured homes are hereby
repealed.
CHAPTER II.
DEFINITIONS
The following terms are defined for the purpose of these rules.
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 rules 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.
A.
Agency: The
Director of the Arkansas Manufactured Home Commission or other personnel
authorized to act on behalf of the Director.
B.
Anchoring: A combination of
external ties, cables, straps and ground anchors or alternative systems certified
by an engineer used to secure the home to the ground to resist displacement and
movement by natural forces.
C.
Auction: Means the selling or offering for sale of manufactured
homes to manufactured home retailers or to the public, by a person, firm or
corporation not otherwise certified or licensed, in an auction or liquidation
format or on consignment.
D.
Certification: Means the act of certifying or a state of being
certified.
E.
Commission: Means the Arkansas Manufactured Home
Commission.
F.
Defect: Means any defect in the performance, construction,
components or material of a manufactured home that renders the manufactured home
or any part thereof not fit for the ordinary use for which it was
intended.
G.
Director: Means the Director of the Arkansas Manufactured Home
Commission.
H.
Federal
Standards: Means the National Manufactured Housing Construction and
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.
I.
HUD: Means the U.S.
Department of Housing and Urban Development.
J.
Installation: Means work
done to stabilize, support or anchor a manufactured home or to join sections of a
multi-section manufactured home when any such work is governed by rules adopted
by the Commission.
K.
Installer: Means any person, firm or corporation not otherwise
certified, engaged in the business of installing manufactured homes for himself
or on behalf of any other person not certified under this Act.
L.
Manufacturer: Means any
person who manufactures manufactured homes.
M.
Multi-Section: Means more
than one unit of a manufactured home when joined together form a single entity, a
livable home.
N.
Quality
Control: Means in-plant inspection by the manufacturer to assure that
all units meet the National Manufactured Housing Construction and Safety
Standards and the approved DAPIA Manual for each plant.
O.
Retailer: Means any person,
firm or corporation in the business of accepting on consignment, buying for
resale, selling or exchanging manufactured homes or offering same to the public
for sale, exchange or lease-purchase, whether for himself or on behalf of any
other person not certified as a retailer under this Act.
P.
Revocation: Means the
repeal or reversal of the rights of the manufacturer or retailer to sell or
distribute units in the State of Arkansas. Means the repeal or reversal of the
rights of the installer to set-up or anchor manufactured homes.
Q.
Salesperson: Means any
person employed by the retailer or manufacturer who is engaged in either the
wholesale or retail sale of manufactured homes.
R.
Separate Entity: Means each
individual location of a manufacturing plant or each individual retail
location.
S.
Site:
Means the actual location of the manufactured home upon a plot of
ground.
T.
Standards: Means the National Manufactured Housing Construction
and Safety Standards.
U.
Statement of Compliance: Means the manufacturer or retailer
certified and the installer licensed by the Arkansas Manufactured Home Commission
will comply with Act 419 of 1977 as amended, the Arkansas Manufactured Home
Commission's rules, the National Manufactured Housing Construction and Safety
Standards Act of 1974 and the DAPIA Manual approved by HUD.
V.
Suspension: Means to cease
or stop temporarily the right to manufacture, sell, or install manufactured homes
within the State of Arkansas.
CHAPTER
III.
CERTIFICATION AND LICENSING
Section 300.
Certification and
Licensing - GeneralA.
Types of Certification and License
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:
1.
Manufacturer - Each manufacturer, in or out of state, delivering
or shipping manufactured homes into the State for sale.
2.
Retailer - Any person, firm
or corporation in the business of accepting on consignment, buying for resale,
selling or exchanging manufactured homes or offering same to the public for sale,
exchange or lease-purchase, whether for himself or on behalf of any other person
not certified as a retailer.
3.
Installer - Any person, firm or corporation not otherwise
certified, installing and anchoring manufactured homes.
4.
Salesperson - Any person
engaged in the selling of manufactured homes (either as a manufacturer's
representative or retailer salesperson) must apply for a license within 30 days
of beginning to sell manufactured homes in the state of Arkansas.
B.
Annual Certification or
License Renewal Required1. Each
person, firm or corporation certified or licensed by the Commission shall apply
for renewal of their certification or license annually and must meet all criteria
set forth for certification or license renewal.
2. Certifications or licenses shall expire one
(1) year from the date of the original certification or license, and must be
renewed annually.
3. The Director may
authorize the renewal of a certification or license made after the renewal date
upon payment of a late fee of $10.00 per calendar day of delinquency not to
exceed forty-five (45) days. After 45 days, the certification or license shall be
suspended. Suspension of certification or license may be appealed in accordance
with Section 306 (A)(4) of these rules. Continuing to operate after the
suspension of certification or license is in violation of this Act.
C.
Separate Entity
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.
D.
Statement of Compliance
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.
E.
Failure
to Obtain Certification or License
1.
No person, firm or corporation shall act as a manufacturer, retailer or installer
without having first secured the required certification or license from the
Commission.
2. The Commission shall
have the authority to collect fees and assessments from any person, firm or
corporation found to be acting as a manufacturer, retailer or installer without
having first secured the required certification or license from the
Commission.
3. The Commission shall
have the authority to impose a monetary penalty not to exceed one thousand
dollars ($1,000.00) for each violation of any provision of Act 419 of 1977 as
amended or the rules promulgated thereunder.
4. The Commission shall have the authority to
file suit in Circuit Court to enjoin any person, firm or corporation acting as a
manufacturer, retailer or installer without having first secured the required
certification or license from the Commission.
Section 301.
Certification of
Manufacturers
A.
Requirements for Manufacturer Certification
1. Application shall be on forms supplied by
the Agency.
2. Each application shall
be accompanied by the following before certification is granted:
(a) Statement of Compliance;
(b) Fees set forth for certification;
(c) The required deposit in the Manufactured
Housing Recovery Fund; and
(d) A copy
of the Manufacturer's Homeowner and Installation manual(s).
3. Applicant shall be in good standing with the
Commission and shall not have any unpaid civil penalties or outstanding
obligations to the Commission.
B.
Certification Fee and Recovery Fund
Deposit1. Original certification fee
shall be $1,000.00. Annual renewal fee shall be $625.00.
2. An assessment fee of ten thousand dollars
($10,000) per plant location is to be deposited in the Manufactured Housing
Recovery Fund.
C.
Violation
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.
Section
302.
Certification of Retailers
A.
Requirements for Certification of
Retailers1. Application forms shall be
supplied by the Agency.
2. Each
application shall be accompanied by the following before original certification
is granted:
(a) Statement of
Compliance;
(b) Fees set forth for
certification;
(c) The required
deposit in the Manufactured Housing Recovery Fund;
(d) Proof of installation, anchoring and
service capabilities, including compliance with installation testing and
continuing education requirements set forth in Section 303 (A)(3) of these rules
or provision of a written contract with a licensed installer to perform
installation and anchoring of manufactured homes;
(e) Salespersons' license applications with
fees other than the owner(s) of the retail location;
(f) A list of all directors, officers, limited
and general partners, or controlling shareholders if the application is made on
behalf of a corporation or partnership or a list of all principal owner(s) of the
retail location on a form provided by the Agency;
(g) A general business/employment history for
each person identified on the application form, including a sworn statement that
none of the directors, officers, partners, shareholders or owners of the
applicant have:
(i) been found guilty, pleaded
guilty or entered a plea of nolo contendere or suffered a judgement in a civil
action in this state or any other jurisdiction for forgery, embezzlement,
obtaining funds under false pretenses, extortion, conspiracy to defraud, bribery,
fraud, misrepresentation; or
(ii) had
a license, permit or certification suspended or revoked by any government agency
in this state or any other jurisdiction for violation of Federal or state laws or
regulations;
(h) Evidence
of a net worth of at least $100,000;
(i) A financial statement, compiled or reviewed
by an independent, third-party accounting firm, prepared within six (6) months of
the application date, for each owner or partner, if the applicant is a sole
proprietor or partnership or the business, if the applicant is a corporation, LLC
or LLP; and
(j) Evidence of having
at least two (2) years' experience as a licensed retailer or salesperson, working
for a licensed retailer, in this state or any other jurisdiction. Applicants
purchasing a retail location currently licensed by the Commission will be exempt
from the experience requirement.
3. Applicants for original or renewal
certification must maintain:
(a) A business
office, separate and apart from any residence, connected to all applicable public
utilities and in compliance with applicable local zoning regulations;
(b) A public restroom, connected to all
applicable public utilities;
(c) A
valid landline business telephone, with number listed under the name of the
business;
(d) A state sales tax
permit and master certification issued by Arkansas Department of Finance and
Administration;
(e) Proof of at least
$1 million in commercial general liability insurance issued in the name of the
business; and,
(f) A permanent,
all-weather business sign in view of public traffic bearing the name of the firm
and identifying the firm with the housing industry. Sign letters shall be at
least eight inches (8") in height.
4. Applicant shall be in good standing with the
Commission and shall not have any unpaid civil penalties or outstanding
obligations to the Commission.
5. Any
person applying for an initial certification with the Arkansas Manufactured Home
Commission shall be subject to a criminal background check. If the criminal
background check shows that the applicant has been convicted of a felony, the
certification will not be granted without a hearing before the Commission and
approval by the Commission.
6. An
applicant for original or renewal certification may request a waiver of any of
the requirements for certification set forth in this Section. The Commission may
grant an applicant's request for a waiver of any of the requirements set forth in
this section, other than a requirement mandated by statute, following a hearing
before the Commission and approval of the waiver request by the
Commission.
B.
Certification Fee and Recovery Fund Deposit
1. Original certification fee shall be
$1,000.00. Annual renewal fee shall be $250.00.
2. An assessment fee of five thousand dollars
($5,000.00) per location to be deposited in the Manufactured Housing Recovery
Fund.
C.
Sales or
Auction to Retailers1. Any person,
firm or corporation engaged in the sale of manufactured homes to certified
retailers in the State in an auction or liquidation format or on consignment,
other than manufacturers, shall be not be required to become certified, and shall
not be subject to the requirements for certification set forth in these
rules.
2. Any person, firm or
corporation engaged in the sale of manufactured homes to certified retailers in
the State in an auction or liquidation format or on consignment, shall submit to
the Commission, immediately following such auction or sale, a report on forms
provided by the Commission, including the following information:
(a) A complete list of the homes sold,
auctioned or consigned;
(b) The
manufacturer, model and size of each home;
(c) The serial number and HUD label number of
each home; and
(d) The name and
license number of the retailer purchasing the home.
D.
Violation
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.
Section 303.
Licensing of
Installers
A.
Requirements for Installer Licensing
1. Application forms shall be supplied by the
Agency.
2. Each application shall be
accompanied by the following before license is granted:
(a) Statement of Compliance;
(b) Fees set forth for licensing; and
(c) The required deposit in the Manufactured
Housing Recovery Fund.
3.
Testing and Continuing Education
(a) Applicants
for initial license shall complete a training and education course presented or
approved by the Commission and pass an examination presented or approved by the
Commission based on knowledge of laws, rules, and basic skills pertaining to the
installation of manufactured homes. No applicant who has failed to complete such
training and pass such examination shall be eligible to receive an initial
license. Applicants for initial licensure who fail the examination must wait
thirty (30) days before requesting to re-take the exam.
(i) An initial installer's license shall become
a full installer's license only after Agency personnel have inspected a minimum
of three (3) manufactured home installations completed by the installer for
potential violations of the manufacturer's installation standards or these rules
and found the installer's work to be in substantial compliance with applicable
standards or rules.
(ii) It is the
responsibility of an installer who holds an initial installer's license to notify
the Commission of each installation performed within three (3) business days of
completion of the installation.
(iii)
If inspections of installations done by an installer who holds an initial
installer's license reveal violations of the manufacturer's installation
standards or these rules, the initial installer's license may be suspended or
revoked by the Commission, in accordance with Section 306 of these
rules.
(b) Applicants for
license renewal must successfully complete a continuing education course
presented or approved by the Commission once every thirty-six (36) months to be
eligible for license renewal.
4. Applicant shall be in good standing with the
Commission and shall not have any unpaid civil penalties or outstanding
obligations to the Commission.
B.
License Fees and Expiration
1. Original license and annual renewal fees
shall be $250.00.
2. An assessment
fee of two thousand five hundred dollars ($2,500.00) to be deposited in the
Manufactured Housing Recovery Fund.
C.
Violation
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 rules is in violation of this Act.
D.
Reciprocity
1. An applicant applying for reciprocal
licensure as an installer shall meet the following requirements:
(a) hold a substantially-similar license in
another United States jurisdiction;
(b) provide proof of having met similar
educational and testing requirements as set out in Section 303 (A)(3)(a) above to
attain an installer's license in another United States jurisdiction;
(c) provide proof that the installer's license
from another United States jurisdiction is held in good standing, has not been
revoked for an act of bad faith or a violation of law, rule, or ethics, and that
the license is not probationary and has not been suspended.
E.
Required Documentation
for Reciprocal Licensure
1. An
applicant applying for reciprocal licensure as an installer shall submit the
following:
(a) a fully-executed application,
the required fees, and the required deposit in the Manufactured Housing Recovery
Fund;
(b) evidence of current and
active licensure in another United States jurisdiction, verifiable by Commission
staff online or by telephone to the other state's licensing board;
(c) evidence that the educational requirements
for installers in the other United States jurisdiction are substantially similar
to those listed in Section 303 (A)(3)(a), verifiable online or by
telephone;
(d) the names of all
states in which the applicant is licensed or has been licensed; and
(e) letters of good standing or other
information from each state in which the applicant is or has been licensed
showing applicant has not had a license revoked for the reasons listed in Section
303 (D)(1)(c) and does not hold a probationary license or a license that has been
suspended, verifiable online or by telephone.
F.
Reciprocity and State-Specific
Education1. The Commission shall
require an applicant to take an examination presented or approved by the
Commission based on knowledge of Arkansas laws and rules, and on basic skills
pertaining to the installation of manufactured homes, if the applicant is
licensed in another state that does not offer reciprocity to Arkansas residents
that is similar to reciprocity to out-of-state applicants under A.C.A. §
17-1-108.
2. Reciprocity in another state will be
considered similar to reciprocity under A.C.A. §
17-1-108 if the reciprocity
provisions of the other state:
(a) Provide the
least restrictive path to licensure for Arkansas applicants:
(b) Does not require Arkansas applicants to
participate in the apprenticeship, education, or training required as a
prerequisite to licensure of a manufactured home installer in that state, except
that the state may require Arkansas applicants to participate in continuing
education or training that is required for all installers in that state to
maintain licensure.
(c) Does not
require Arkansas applicants to take a state-specified education unless required
under the same conditions described in A.C.A. §
17-1-108.
G.
Provisional
License1. The Commission shall issue a
provisional license immediately upon receipt of an application, Statement of
Compliance, fees set forth for licensing, the required deposit in the
Manufactured Housing Recovery Fund, and the documentation required under Section
303 (E)(1)(a)-(b).
2. The provisional
license shall be effective until the Commission makes a decision on the
application, unless the Commission determines the applicant does not meet the
requirements of Section 303 D(1)(a)-(c), in which case the provisional license
shall be revoked immediately.
3. An
applicant may provide the rest of the documentation required above in order to
receive an initial license, or the applicant may only provide the information
necessary for the issuance of a provisional license, which will be effective for
ninety (90) days.
H.
License for Person from a State That Does Not License
Installers
1. An applicant from a
state that does not license manufactured home installers shall meet the following
requirements:
(a) Shall be sufficiently
competent as a manufactured home installer; and
(b) Shall complete a training and education
course presented or approved by the Commission and pass an examination presented
or approved by the
Commission based on knowledge of laws, rules, and basic skills
pertaining to the installation of manufactured homes. No applicant who has failed
to complete such training and pass such examination shall be eligible to receive
an initial license. Applicants for initial licensure who fail the examination
must wait thirty (30) days before requesting to re-take the exam.
2. An applicant shall
submit a fully-executed application, Statement of Compliance, fees set forth for
licensing, the required deposit in the Manufactured Housing Recovery Fund, and
the documentation described below:
(a) Proof of
a passing grade on an examination presented or approved by the Commission based
on knowledge of laws, rules, and basic skills pertaining to the installation of
manufactured homes.
(b) Letters of
recommendation from prior employer(s) or customer(s) with knowledge of
applicant's experience as a manufactured home installer.
Section 304.
Licensing of Manufactured Home Salespeople
A.
Requirements for Salesperson's
License1. Application forms shall be
supplied by the Agency.
2. Each
application shall be accompanied by the following before the license is granted:
(a) Fees set forth for licensing.
3. The Commission may require an
examination of applicants for manufactured home salespeople based on knowledge of
laws, rules pertaining to manufactured homes.
4. Applicant shall be in good standing with the
Commission and shall not have any unpaid civil penalties or outstanding
obligations to the Commission.
5. Any
person applying for an initial retail salesperson's license with the Arkansas
Manufactured Home Commission shall be subject to a criminal background check. If
the criminal background check shows that the applicant has been convicted of a
felony, the certification will not be granted without a hearing before the
Commission and approval by the Commission.
B.
License Fee
1. Original license and annual renewal fees
shall be $50.00, payable by the 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.
C.
Violation
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.
D.
Reciprocity
1. An applicant applying for reciprocal
licensure as salesperson shall meet the following requirements:
(a) hold a substantially-similar license in
another United States jurisdiction;
(b) provide proof of having met similar
educational and testing requirements as set out in Section 304 (A)(3) above to
attain a salesperson's license in another United States jurisdiction;
(c) provide proof that the salesperson's
license from another United States jurisdiction is held in good standing, has not
been revoked for an act of bad faith or a violation of law, rule, or ethics, and
that the license is not probationary and has not been suspended.
E.
Required
Documentation for Reciprocal Licensure
1. An applicant applying for reciprocal
licensure as a salesperson shall submit the following:
(a) a fully-executed application and the
required fees;
(b) evidence of
current and active licensure in another United States jurisdiction, verifiable by
Commission staff online or by telephone to the other state's licensing
board;
(c) evidence that the
educational requirements for salespeople in the other United States jurisdiction
are substantially similar to those listed in Section 304 (A)(3), verifiable
online or by telephone;
(d) the names
of all states in which the applicant is licensed or has been licensed;
and
(e) letters of good standing or
other information from each state in which the applicant is or has been licensed
showing applicant has not had a license revoked for the reasons listed in Section
304 (D)(1)(c) and does not hold a probationary license or a license that has been
suspended, verifiable online or by telephone.
F.
Reciprocity and State-Specific
Education1. The Commission may require
an applicant to take an examination presented or approved by the Commission based
on knowledge of Arkansas laws and rules, and on basic skills pertaining to the
sales of manufactured homes, if the applicant is licensed in another state that
does not offer reciprocity to Arkansas residents that is similar to reciprocity
to out-of-state applicants under A.C.A. §
17-1-108.
2. Reciprocity in another state will be
considered similar to reciprocity under A.C.A. §
17-1-108 if the reciprocity
provisions of the other state:
(a) Provide the
least restrictive path to licensure for Arkansas applicants:
(b) Does not require Arkansas applicants to
participate in the apprenticeship, education, or training required as a
prerequisite to licensure of a manufactured home salesperson in that state,
except that the state may require Arkansas applicants to participate in
continuing education or training that is required for all salespeople in that
state to maintain licensure.
(c) Does
not require Arkansas applicants to take a state-specified education unless
required under the same conditions described in A.C.A. §
17-1-108.
G.
Provisional
License1. The Commission shall issue a
provisional license immediately upon receipt of an application, the required fee,
and the documentation required under Section 304 (E)(1)(a)-(b).
2. The provisional license shall be effective
until the Commission makes a decision on the application, unless the Commission
determines the applicant does not meet the requirements of Section 304
(D)(1)(a)-(c), in which case the provisional license shall be revoked
immediately.
3. An applicant may
provide the rest of the documentation required above in order to receive a
license, or the applicant may only provide the information necessary for the
issuance of a provisional license, which will be effective for ninety (90)
days.
H.
License
for Person from a State That Does Not License Salespeople
1. An applicant from a state that does not
license manufactured home salespeople shall meet the following requirements:
(a) Shall be sufficiently competent as a
manufactured home salesperson; and
(b) Shall provide proof of having met similar
educational and testing requirements as set out in Section 304 (A)(3) above to
attain a salesperson's license in another United States jurisdiction;
2. An applicant shall submit a
fully-executed application, the required fee, and the documentation described
below:
(a) Letters of recommendation from prior
employer(s) or customer(s) with knowledge of applicant's experience as a
manufactured home salesperson.
Section 305.
Sales or Auctions to
the Public
A.
Sales or
Auctions to the Public1. Any person,
firm or corporation engaged in the auction of five (5) or more manufactured homes
to the public shall be considered a retailer, and shall be subject to the
requirements for certification of retailers set forth in Section 302 of these
rules.
2. Any person, firm or
corporation engaged in the auction of five (5) or more manufactured homes to the
public shall submit to the Commission, at least thirty (30) days prior to any
auction, a notice including the date, time and physical address or location of
any proposed auction. If such auctions are intended to recur on a scheduled
basis, the Commission shall be provided with a schedule of proposed auctions or
consignment sales.
3. Any person,
firm or corporation engaged in the auction of five (5) or more manufactured homes
to the public shall submit to the Commission, immediately following such auction,
a report on forms provided by the Commission, including the following
information:
4.
(a) A complete list of the homes sold or
auctioned;
(b) The manufacturer,
model and size of each home;
(c) The
serial number and HUD label number of each home;
(d) The name, address and phone number of the
consumer purchasing each home; and
(e) A written contract with a licensed
installer to perform installation and anchoring of manufactured homes sold at
auction to the public according to the Arkansas Manufactured Home Commission's
installation specifications, as set forth in these rules.
B.
Violation
Any person, firm or corporation auctioning homes to the public
without being properly certified with the Commission is in violation of this
Act.
Section 306.
Action Against Certification or License
A.
Suspension, Revocation of License
and Other Penalties
1. The Commission
shall have the power to suspend, revoke or refuse to renew the certification of a
manufacturer or retailer or the license of an installer or salesperson who is
found to have been guilty of:
(a) Fraud,
misrepresentation or deception in obtaining a license;
(b) Failure to comply with any valid directive
of the Director or rules of the Arkansas Manufactured Home Commission;
and
(c) Violating any provision of
Act 419 of 1977 as amended or the rules promulgated thereunder.
2. In lieu of suspension,
revocation, or refusal to renew a license or certification, the Commission shall
have the authority to impose a monetary penalty not to exceed one thousand
dollars ($1,000) for each violation and may suspend, refuse to renew, or revoke
the license or certification until the penalty is paid to the Commission. Such a
penalty shall be imposed only if the Commission formally finds that the public
welfare would not be impaired by the imposition of a monetary penalty rather than
suspension, refusal to renew, or revocation and that payment of same should
achieve the desired disciplinary purpose.
(a)
The Commission shall not impose a civil penalty upon any person, firm or
corporation whose certification or license is suspended, revoked or not renewed
under this section.
3. Any
individual who knowingly and willfully violates the provisions of the Act in a
manner which threatens the health or safety of any purchaser shall be deemed
guilty of a misdemeanor and upon conviction therefore fined not more than one
thousand dollars ($1,000.00) or imprisoned for not more than one (1) year or both
for each violation.
4. Suspension
Appeal
(a) Any suspension may be appealed to
the Manufactured Home Commission by a written request within ten (10) days.
Suspension shall remain in effect until a speedy hearing by the Commission or
Compliance Sub-Committee of the Commission. The Chairman of the Commission may
waive the suspension after review of the facts pending the hearing. After the
revocation hearing, the Commission may revoke the certification or
license.
(b) A manufacturer,
retailer, installer or salesperson may be represented by legal Counsel and
present any evidence and/or witnesses in his behalf against any
charges.
(c) The Commission shall not
revoke any manufacturer or retailer's certification, or installer or
salesperson's license without a hearing.
CHAPTER IV.
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 rules and applicable laws and regulations governing manufactured
homes.
Section 400.
Complaints Against Manufacturers, Retailers or
InstallersA.
Standard
Forms Required; Information Requested
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:
1. Name and complete mailing address of
manufactured homeowner;
2. Physical
address of home, if different from mailing address;
3. Telephone number(s) of homeowner;
4. Date of purchase or installation;
5. Year of manufacture and size of
home;
6. Name and location of
manufacturer;
7. Name and location of
retailer;
8. Name and location or
installer, if applicable; and
9.
Specific items of complaint.
Section 401.
Compliance with
Subpart I of HUD RegulationsA.
All complaints concerning units constructed in compliance with the National
Manufactured Housing Construction and Safety Standards Act of 1974 shall be
handled in compliance with Subpart I of the regulation established pursuant to
the Act and state rules.
1. Upon receipt of a
consumer complaint or other information indicating the possible existence of a
noncompliance, defect, serious defect, or imminent safety hazard, the Arkansas
Manufactured Home Commission will review the complaint or information and forward
the complaint or other information to the manufacturer of the manufactured home
in question. When it appears from the complaint or other information that more
than one manufactured home may be involved, the complaint will simultaneously be
forwarded to HUD and to the SAA of the State where the manufactured home was
manufactured.
2. When the complaint
is forwarded to the manufacturer, the manufacturer will be requested, in writing,
to investigate the complaint within twenty (20) days after receipt of the
information and carry out any necessary investigations and inspections to
determine whether the manufacturer is responsible.
3. Where the manufacturer has determined and
reports that no imminent safety hazard, serious defect, defect or noncompliance
exists and the Arkansas Manufactured Home Commission is able to concur from all
available information, the Commission will consider the complaint closed and so
inform the manufacturer and complainants; however, if the Commission is unable to
concur with the manufacturer's report, a SAA investigation will be made and a
copy of the investigation will be sent to the manufacturer and complainants. If
it is found that the manufacturer's report was correct, the Commission will
consider the matter closed.
4. Where,
upon investigation, the Commission determines that an imminent safety hazard,
serious defect, defect or noncompliance may exist, it will notify the
manufacturer and request the manufacturer to take necessary action. Where the
manufacturer does not take action after notification by the Arkansas Manufactured
Home Commission and it appears that an imminent safety hazard or serious defect
may exist, the Commission will inform the manufacturer of its opinion and
simultaneously forward to HUD documentation of the factual basis upon which an
opinion was made, for administrative determination by HUD, pursuant to
24 C.F.R., Section
3282.407(a). Where the
manufacturer does not take action after notification by the Arkansas Manufactured
Home Commission and it appears that a defect or noncompliance may exist, the
Commission will so notify the manufacturer. The notice shall be sent to the
manufacturer by certified mail and will include:
(a) The preliminary determination by the
Arkansas Manufactured Home Commission;
(b) The factorial basis for the
determination;
(c) The identifying
criteria of the manufactured homes known to be affected;
(d) Notice to the manufacturer that a hearing
or presentation of views may be requested pursuant to 24 C.F.R. Part 3282, Subpart D, to establish that there is no such defect or noncompliance;
(e) Notice to the manufacturer that the
preliminary determination shall become final unless the manufacturer responds
within fifteen (15) days after receipt of such notice and requests a hearing or
presentation of views; and
(f) Notice
to the manufacturer that any information upon which the determination has been
based, such as test results, records of inspection, etc., shall be available for
inspection by the manufacturer.
5. Where the manufacturer requests a hearing or
presentation of views, one shall be held pursuant to
24 C.F.R. Section
3282.152.
6. Where the manufacturer fails to respond to
the notice of preliminary determination or if the Arkansas Manufactured Home
Commission decides that the views and evidence presented by the manufacturer or
others are insufficient to rebut the preliminary determination, the Commission
may make a final determination that a defect or noncompliance exists and will
notify the manufacturer to make a notification and submit a plan in accordance
with 24 C.F.R. Section
3282.409. Within ten (10) days after receipt of
the notice of final determination, the manufacturer may appeal to the Secretary
of the United States Department of Housing and Urban Development.
7. The manufacturer's plan for notification and
correction, including contents of notice, time for implementation and completion
of actions and reports, shall be made in accordance with the provisions of
24 C.F.R. Section
3282.409 through
3282.413. When the manufactured home
is in the hands of a distributor or retailer, it shall be handled in accordance
with 24 C.F.R. Section
3282.414.
Section 402.
Notification and
Correction Procedures Required of Manufacturers and IPIAS.
A.
Manufacturer's
Determination.
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.
B.
Notification.
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.
C.
Review.
1. The Arkansas
Manufactured Home Commission will review the plan submitted by the manufacturer,
including the contents of the notice and either approve the plan as submitted or
make modifications to the plan for compliance with the requirements of
24 C.F.R. Section
3282.409 and notify the manufacturer of the
approval or modification. The manufacturer may contest the modification within
five (5) days of the approval of the plan of modification.
2. If the Arkansas Manufactured Home Commission
does not accept the manufacturer's position as to the modification, it shall act
as follows:
(a) If the manufacturer contends
that the manufactured home contains a defect rather than an imminent safety
hazard or serious defect as the Arkansas Manufactured Home Commission contends,
the Arkansas Manufactured Home Commission shall refer the matter to the Secretary
/for determination under 24
C.F.R. 3282.407(a).
3. The formal notification
requirements which would result from any determination by the manufacturer under
24 C.F.R. Section
3282.404 may be waived by the Commission that
would otherwise review the plan upon receipt of satisfactory assurances from the
manufacturer that:
(a) The manufacturer has
identified the class of possibly affected manufactured homes in accordance with
24 C.F.R. Section
3282.409;
(b) The manufacturer will correct at the
manufacturer's expense, all affected manufactured homes; and
(c) The repairs, in the Commission's judgment,
are adequate to remove the imminent safety hazard or failure to
conform.
Section
403.
Compliance with Federal Construction and Safety
Standards Program
A. All
manufactured homes manufactured in the State, sold, or offered for sale in this
state, shall be in strict compliance with the Standards.
1. A HUD Certification label will be affixed to
the home as required.
2. The retailer
shall inspect every new manufactured home unit prior to selling to determine that
all appliances, fixtures and systems are not damaged and are in place and
operable.
3. Whenever a retailer
finds a nonconformance or an imminent safety hazard in a manufactured home, the
retailer shall contact the manufacturer, provide full information concerning the
problem, and request appropriate action by the manufacturer. No retailer may sell
a new manufactured known by the retailer not to be in conformance with the
Standards.
4. If a retailer alters a
manufactured home in such a way as to create an imminent safety hazard or to
create a condition which causes a failure to conform with applicable Federal
Standards, the manufactured home may not be sold, leased or offered for sale.
Retailers shall maintain complete records of all alterations or corrections of
failures to conform or imminent safety hazards made to homes.
B. The manufacturer's quality
assurance program shall be set forth by the plant's Design Approval Primary
Inspection Agency (DAPIA) and its quality assurance manual, and will be monitored
by the plant's Production Inspection Primary Inspection Agency (IPIA).
C. All plans, specifications and engineering
data shall be approved by a qualified Design Approval Primary Inspection Agency
(DAPIA) which has been approved by HUD.
Section 404.
Complaints and
Inspections Under State Authority
A.
Consumer Complaints
This section establishes procedures for the investigation and
timely resolution of alleged construction or installation defects in manufactured
homes that have been reported to the manufacturer, retailer, installer, HUD, or
the Commission in writing by email, written letter, sent by certified mail, or
fax within one-year after the date of the first installation of the manufactured
home, including:
1. Violations of the
National Manufactured Home Construction and Safety Standards Act of 1974, 42 U.S.C. 5401-5425 or regulations promulgated by the United States Department of
Housing and Urban Development; and
2.
Violations of the rules governing the installation of manufactured homes
promulgated by the Commission.
B.
Dispute Resolution
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
alleged construction or installation defects in manufactured homes that have been
reported to the manufacturer, retailer, installer, HUD, or the Commission in
writing by email, written letter, sent by certified mail, or fax within one-year
after the date of the first installation of the manufactured home.
C.
Receipt of Complaint;
Notice Required
Upon receipt of a consumer complaint or other information
indicating the possible violation of any provision of the Code or the rules
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.
D.
Corrective Action and Dispute
Resolution
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.
1. When, upon investigation or inspection, the
manufacturer, retailer or installer finds a violation of the Code or the rules
promulgated thereunder, then the party responsible for the violation shall take
the appropriate corrective action and notify the Agency of any actions taken to
bring the home into compliance with the Code or the rules.
2. When there is a dispute among the
manufacturer, retailer and installer as to which party is responsible for the
violation, then the Agency shall schedule an inspection of the home in order to
determine the nature of the violation and assign responsibility for corrective
action. The Agency 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.
E.
Inspection by
Commission; Notice Required
When the manufacturer, retailer or installer reports that
corrective action has been taken to bring the home into compliance with the Code
or the rules, 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.
F.
Determinations by Commission; Time
Frame for Corrective Action
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.
G.
Appeal of Agency's
Determination
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.
H.
Closing of Complaints
1. When the manufacturer, retailer or installer
reports that corrective action ordered by the Director has been taken to bring
the home into compliance with the Code or the rules, the Commission will consider
the complaint closed and so inform the manufacturer, retailer or installer and
the complainants.
2. When the
manufacturer, retailer or installer reports that the purchaser refuses to allow
corrective action as ordered by the Director to bring the home into compliance
with the Code or the rules, the Commission will consider the complaint closed and
so inform the manufacturer, retailer or installer and the complainants.
I.
Administrative Action by
Commission; Notice of Hearing Required; Penalties
1. When items included in the Agency's
inspection report remain unresolved, the Commission may schedule a hearing to
consider administrative action against the manufacturer, retailer or installer.
The Commission shall provide notice of such a hearing, including information
about the home in question and the date and approximate time of the hearing, in
writing, to the manufacturer, retailer and installer.
2. The Commission shall have the power to
suspend, revoke, or refuse to renew the license or certification under this
chapter of any person who is found to have been guilty of violating any provision
of the Code or the rules promulgated thereunder.
3. In lieu of suspension, revocation, or
refusal to renew a license or certification, the Commission shall have the
authority to impose a monetary penalty not to exceed one thousand dollars
($1,000) for each violation and may suspend, refuse to renew, or revoke the
license or certification until the penalty is paid to the commission. Such a
penalty shall be imposed only if the Commission formally finds that the public
welfare would not be impaired by the imposition of a monetary penalty rather than
suspension, refusal to renew, or revocation and that payment of same should
achieve the desired disciplinary purpose.
4. Each violation of the Code or any rule or
order issued pursuant to it shall constitute a separate violation with respect to
each manufactured home or with respect to each failure or refusal to allow or
perform an act required thereby.
J.
Appeal of Commission Decision or
Penalty
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.
Section 405.
Inspections and Fee
Structure
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.
A.
State Label Fee
Beginning October 1, 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 rules for a manufacturer to fail to comply with the provisions of this
paragraph.
B.
Installation Permit Fee and Random Sample Compliance Assurance
Inspections
Beginning October 1, 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
rules 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 rules, beginning with Section 404 (F). Determinations made by an
authorized representative of the Commission may be appealed in accordance with
Section 404 (G).
C.
Initial 100% Inspection Fees/Certification
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.
D.
Plant Inspection Fee
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.
E.
Special Request for Inspection.
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.
F.
Increased Frequency Inspection
Fee
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.
G.
Monitoring Inspection Fee
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.
H.
Other
Special Inspections
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.
CHAPTER V.
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.
Section 500.
Assessments and
RefundsA.
Initial
Assessments
The Commission shall collect the following assessment fees at the
time of submission of initial certification or licensure applications:
1. Installer - $2,500.00 per location
2. Retailer - $5,000.00 per location
3. Manufacturer - $10,000.00 per
location
B.
Special Assessments
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:
1. Installer - $500.00 per
location
2. Retailer - $1,000.00 per
location
3. Manufacturer - $3,000.00
per location
C.
Refund
1. Any participant shall receive a refund of
its initial assessment after a two (2) year waiting period after it ceases
operation of its business in this State provided there are no claims pending
against such participant, provided:
(a) The
participant shall notify the Arkansas Manufactured Home Commission by certified
mail within forty-five (45) days after the two (2) year waiting period and
request the refund or the assessment fee shall be forfeited; and,
(b) The two (2) year waiting period shall begin
on the participant's next certification or licensing anniversary date after the
participant ceases operation of its business in this state.
2. If the participant fails to satisfy the
provisions found in B(1)(A) and (B), the assessment fee shall remain in the
Manufactured Housing Recovery Fund.
3. No interest will accrue to the benefit of
such participant.
Section
501.
Claims, Eligibility and Administration of
Fund
A.
Complaints/Claims
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.
B.
Eligibility
For a claim against the fund to be considered, the Commission
must determine the following:
1. That
the home in question is located and occupied in the state of Arkansas;
2. That, at the time of the claim, the
manufacturer, retailer or installer involved in the claim has an assessment on
deposit in the fund; and
3. That the
manufacturer, retailer or installer is unwilling or unable to take corrective
action as directed by the Commission.
C.
Amount of Damages Awarded
1. The amount of damages awarded by the
Commission shall be limited to the actual cost of repairs to the manufactured
home and shall not include attorneys' fees. On appeal to Circuit Court from an
award of the Commission, the jurisdiction of the Circuit Court shall be limited
to the actual cost of repairs to the manufactured home. The Circuit Court shall
not have jurisdiction to award punitive or exemplary damages for claims covered
by the provisions of Act 419 of 1977 as amended, attorneys' fees or
costs.
2. Upon a finding by the
Commission that a standard has been violated, the Commission shall direct the
respondent licensee, retailer, installer or manufacturer to correct the violation
within a reasonable time, not to exceed ninety (90) days following the written
decision of the Commission. If the violation is not corrected within ninety (90)
days following the written decision of the Commission and no appeal has been
filed in Circuit Court of the decision, the Commission shall, upon request, pay
from the Manufactured Housing Recovery Fund the actual cost of repairs to the
manufactured home, if:
(a) The amount is not in
excess of $10,000.00 for any one violation of the respondent licensee, installer,
retailer or manufacturer;
(b) The
fund balance is sufficient to pay the award;
(c) The complainant has assigned to the
Commission all rights and claims that they have against the respondent;
and,
(d) The complainant agrees to
subrogate the Commission to all rights of the complainant to the extent of the
payment.
3. The question
of what constitutes a continuing series of violations shall be a matter solely
within the discretion and judgment of the Commission.
4. Nothing herein shall obligate the fund for
any amount in excess of the following with respect to the actions of any one
licensee, installer, retailer or manufacturer:
(a) $12,500.00 per installer;
(b) $25,000.00 per retailer; and
(c) $75,000.00 per manufacturer.
D.
Appeals
1. Appeals from a
decision of the Commission shall be to the Circuit Court in accordance with the
Arkansas Administrative Procedure Act. Such appeal shall stay that portion of the
Commission order which directs payment of the damage. Neither the respondent nor
the Commission shall be required to pay damages to the complainant until such
time as a final order of the Circuit Court, Court of Appeals or Supreme Court is
issued.
2. On appeal, the Circuit
Court jurisdiction in awarding damages to be paid from the fund shall be limited
in amount to:
(a) the amount determined by the
Commission, or
(b) the limits set
forth herein. The Court shall not award attorneys' fees or court costs to be paid
by the fund.
E.
Suspension1. The Commission
shall suspend the license or certificate of each licensee, installer, retailer or
manufacturer until such time as same reimburses award amounts paid on its behalf
to the fund plus interest at a rate to be determined by the Commission but not to
exceed ten percent (10%) per annum.
2. The Commission may permanently suspend the
license or certificate of the respondent upon failure to pay an order of the
Commission or court.
3. The
Commission may move the Circuit Court to suspend the license or certificate of
the respondent during pendency of an appeal from a Commission order.
F.
Establishment of Training
and Educational Programs
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.
CHAPTER VI.
INSTALLATION AND
ANCHORING SPECIFICATIONS
Section
600.
Installation Standards for New Homes, Used
Homes
The Arkansas Manufactured Home Commission by rule 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 rule 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 rules, as follows:
A.
New Manufactured Homes
New single section and multi-section manufactured homes shall be
installed according to the manufacturer's installation instructions.
B.
Used Manufactured
Homes
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 rules.
C.
Alternative Systems Allowed
It is not the intent of these rules 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 rules, as related
to foundation stability and/or load bearing capacity.
Section 601.
Elements
of Installation
As used in these rules, 'Installation' shall
include:
1. The requirements for I-beam, center-line,
and perimeter pier support columns and footings;
2. Marriage line, utility and other cross-over
connections (if applicable);
3.
Anchoring systems and equipment, as prescribed in the manufacturer's installation
instructions or the Arkansas Manufactured Home Commission's installation
specifications; and
4. Any other
installation requirements outlined in the manufacturer's installation
instructions for new homes or the Arkansas Manufactured Home Commission's
installation specifications for used homes.
Section 602.
State Installation
Specifications
A.
Site
Preparation
1. All decayable
materials, including grass, leaves, roots and wood, shall be removed from under
the locations of footings and foundations. Manufactured home purchasers shall
provide a site suitable for the placement of a home.
2. Footings and foundation base blocks shall
rest on undisturbed or minimum ninety percent (90%) compacted soil of uniform
density and thickness or equivalent base material.
3. Soil classification and bearing capacity of
the soil must be determined before the foundation is constructed and anchored.
Soil classification and bearing capacity may be determined by one or more of the
following methods, unless the soil bearing capacity is established as permitted
in (f) of this section:
a. Soil tests in
accordance with generally accepted engineering practices;
b. Soil records of the applicable local
authority having jurisdiction;
c. A
pocket penetrometer; or d. If soil classification or bearing capacity cannot be
determined by test or soil records, the classification, allowable pressures and
torque value shown in the table below may be used.
Soil Classification
|
Classification Number
|
ASTM D
2478-00 or D
2488-00
|
Soil Description
|
Allowable
Soil
Bearing
Pressure
PSF
|
Blow
Count
ASTM D
1586-99
|
Torque Probe Value (inch-pounds)
|
1
|
Rock or Hard Pan
|
4000 +
|
2
|
GW, GP, SW, SP, GM, SM
|
Sandy Gravel & Gravel; Very Dense and/or Cemented
Sands; Coarse
Gravel/Cobbles; Preloaded Silts, Clays &
Corals
|
2000
|
40 +
|
More Than 550
|
3
|
GC, SC, ML, CL
|
Sand; Silty Sand; Clayey Sands; Silty Gravel; Medium
Dense Coarse Sands; Sandy Gravel; and Very Stiff Silt, Sand Clays
|
1500
|
24-39
|
351-550
|
4A
|
CG. MH2
|
Loose to Medium Dense Sands; Firm to Stiff Clays &
Silts; Alluvial Fills
|
1000
|
18-23
|
276-350
|
4B
|
CH, MH2
|
Loose Sands; Firm Clays; Alluvial Fills
|
1000
|
12-17
|
175-275
|
5
|
OL, OH. PT
|
Uncompacted Fill; Peat; Organic Clays
|
0-11
|
Less Than 175
|
e. In
lieu of determining soil bearing capacity by use of the methods listed in this
section, an allowable pressure of 1000 pounds per square foot (psf) may be used,
unless the site-specific information requires the use of lower values based on
soil classification and type.
f. If
the soil appears to be composed of peat, organic clays or uncompacted fill, a
registered geologist, registered professional engineer or registered architect
must determine the soil classification and maximum allowable soil bearing
capacity.
g. The installation shall
not contribute to ponding of water under the home.
B.
Pier Foundations -
Footings1. The foundation
specifications contained in this section are not intended to address flood loads
or special site conditions. Consult the LAHJ or a registered engineer if the home
is to be located in a flood hazard area or has special site
considerations.
2. Support
foundations for each pier shall be concrete, either site built or pre-cast,
having minimum dimensions sixteen inches by sixteen inches by four inches
(16" x 16" x 4"). Other pier support materials may be used if
accepted by the manufacturer and the Commission.
3. The surface texture of poured concrete
footings at each pier location shall be such that the first pier block placed at
these locations shall sit firmly and evenly. If a firm, level contact between the
first pier block and the surface of the footing is not possible because of
surface irregularities in the footing; masonry mortar shall be used between the
entire bottom surface of the first pier block and the footing to establish a
solid interface contact which is level.
4. Pre-cast concrete footings (solid pad
blocks) shall be installed in a level position with the entire bottom surface in
contact with the site surface.
Click here to view
image
Click here to view
image
5. Using the
soil capacity, as described in Section 602(A)(3), footings should be sized
according to the table below
FOOTER SIZING
TABLE
Based on Soil Bearing Capacity
Opening Size
|
1000 PSF
|
1500 PSF
|
2000 PSF
|
4000 PSF
|
4' - 8'
|
400 sq in
|
256 sq in
|
256 sq in
|
256 sq in
|
8' - 16'
|
576 sq in
|
400 sq in
|
256 sq in
|
256 sq in
|
16' - 20'
|
784 sq in
|
576 sq in
|
400 sq in
|
256 sq in
|
20' - 28'
|
1156 sq in
|
784 sq in
|
576 sq in
|
256 sq in
|
I-Beam Footers (8' Max
Spacing)
|
576 sq in
|
400 sq in
|
256 sq in
|
256 sq in
|
C.
Piers - Support Columns
1.
Piers - General
Constructiona. All piers shall be
installed on footings or foundations and shall be centered under the I-beam. All
pier columns shall be centered on the footing or foundation.
b. No manufactured home piers shall be located
more than eight feet (8') apart on center. The first pier shall be located within
two feet (2') from either end of each I-beam.
c. The installation of foundations and piers
shall be constructed in a manner that shall demonstrate acceptable workmanship.
Each course of all piers shall be laid level and true to the vertical and
horizontal line.
d. Upon completion
of the pier support system, the manufactured home shall be reasonably level in
the longitudinal and side-to-side directions.
2.
Piers - Block Requirements
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, ground-contact rated. Open celled blocks shall be installed with the open
cells vertical.
3.
Piers - Height Rulesa. No pier shall
be installed which is less than twelve inches (12") in
height.
b. Piers of three courses of
blocks or less shall be of single block construction. All piers of single block
construction installed under the main I-beam shall be installed perpendicular to
the I-beam.
c. Piers that consist of
more than three courses of blocks shall be of doubled block construction and
alternate courses shall be interlocking.
Click here to view
image
d. When the
total height of a support column, including footing pier blocks, and wood, exceed
fifty-two inches (52"), the interlocking blocks shall be filled
with concrete and reinforced with three-eighths inch (3/8")
rebar.
e. When the footings,
piers and wood exceed eighty inches (80") in height, the pier
construction must be designed by a professional engineer or architect and
submitted to the Arkansas Manufactured Home Commission for approval prior to
installation.
4.
Piers - Cap Blocks, Top Plates and Shims
a. A combination of not more than two
(2) solid concrete cap blocks two inches
(2"),
three inches
(3") or four inches
(4") by eight
inches by sixteen inches (
8" x 16") may be installed on top of
the uppermost pier block. No combination of cap blocks may exceed seven inches
(7") in height.
Click here to view
image
b. A two
inches by eight inches by sixteen inches (2" x 8" x 16")
(nominal) pressure preservative treated wood plate(s) shall completely
cover the top of the uppermost concrete building unit(s) of each pier.
c. Additional pressure preservative treated
wooden shims with a minimum width of five and one-half inches (5 1/2")
and a minimum length of twelve inches (12") and a
minimum thickness of one-quarter inch (1/4") and a maximum
thickness of one inch (1") may be used between the wood plate
and the I-beam.
d. Hardwood wedges
with a minimum width of four inches (4") and a minimum length of
six inches (6") and a maximum installed thickness of one inch
(1") may be used if placed directly between the last wooden
member of the pier and the point of support. Wedges shall be centered and driven
tight from both sides of the I-beam or marriage line perimeter joists.
5.
Piers -
Marriage Line and Perimeter Blocking
a. The marriage line of multi-section
manufactured homes shall be supported by piers located no more than eight feet
(8') apart on center and shall have piers located within two
feet of each end of the marriage line. In addition to these piers, multi-section
homes shall have piers located under the jamb studs or ridge beam column posts
for openings in the marriage wall of four feet (4') or
greater.
b. Piers shall also be
located on each side of any exterior door, fireplace, bay window or any other
opening of forty-eight inches (48") or more.
D.
Multi-Section Homes - Marriage Line and Utility Connections
1.
Multi-Section Homes - Sealing of
Marriage Linea. All weatherproofing
material (fir strips, plastic or vinyl sheeting) shall be removed from floor
joints, marriage walls and end walls.
b. Sill sealer strips, expanding foam or other
insulating material shall be installed along the ceiling, floor and end wall
marriage lines to prevent air infiltration. Such strips or material (other than
foam) shall be secured in place with staples or nails.
c. Gaps between floor sections or ridge beams,
which do not extend the full length of the home, may not exceed two inches (2")
in width and must be sealed with plywood, lumber or other building material. End
wall marriage lines must be covered with exterior siding material to resist the
elements.
2.
Multi-Section Homes - Lag Bolting and Roof Ridge Connections
a. Floor sections shall be connected with lag
bolts of at least five-sixteenths inch (5/16"), and of
sufficient length to penetrate into the opposing floor joist at least
three-quarters inch (3/4"). Lag bolts shall be installed no more
than twenty inches (20") apart on center, alternating sides.
Bolting must not dislodge the rim joist.
b. Holes in bottom board caused by lag bolt
installation must be sealed.
c. The
roof ridge shall be covered with ridge cap or exterior roofing material to resist
the elements and connected with:
1. Lag bolts
installed no more than twenty inches (20") apart on center,
alternating sides, or
2. At least one
and one-half inch (1 1/2") twenty-six gauge (26 Ga.)
metal straps or equivalent, secured with staples, nails or screws. A
strap shall be installed at each truss, extending at least six inches
(6") on each side of the ridge.
3.
Multi-Section Homes - Utility and
Air Conditioning Cross-Over Connections
a. All utility connections made by the
installing retailer or installer shall be protected from weather or other
elements.
b. Electrical connections
shall be made inside a junction box. Cross-over wiring shall be covered with
access panels or be protected by conduit attached with clamps to junction
boxes.
c. The chassis of each section
of the home shall be electrically bonded to one another.
d. Air conditioning cross-over ducts shall be
attached to each plenum with screws and wire ties and taped to prevent air loss.
The duct shall be suspended above the ground and fastened in place. Ties or
straps used to suspend the duct shall not crush or crimp the duct in a manner
that substantially reduces airflow.
Section 603.
Anchoring Standards
for New Homes, Used Homes
Anchoring is a mandatory requirement for any manufactured home
installed in the State of Arkansas.
A.
Anchoring - New Manufactured Homes
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.
B.
Anchoring - Used Manufactured
Homes
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.
C.
Alternative Systems Allowed
It is not the intent of these rules 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 rules, 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.
Section 604.
State Anchoring Specifications
A.
Anchoring Equipment
The following criteria shall be used in the anchoring of any
manufactured home installed in the state of Arkansas:
1. Anchoring equipment shall be capable of
resisting an allowable working load equal to or exceeding 3,150 lbs. and shall be
capable of withstanding a 50% overload (4,725 lbs. total) without failure of
either the anchoring equipment or the attachment point on the home. Ground
anchors shall be capable of resisting these loads in the soil in which the
anchors are installed.
2. Anchoring
equipment exposed to weathering shall have a resistance to weather deterioration
at least equivalent to that provided by a coating of zinc on steel of not less
than 0.30 ounces per square foot of surface coated.
3. Type 1, Finish B, Grade 1 steel strapping,
one and one-quarter inches (1-1/4") wide and 0.035-inch-thick,
conforming with ATSM Standards Specification D3953-91 is judged to conform with
the provisions of this section and paragraph (1) of this section.
5. Cable used as tiedown straps shall be of
either galvanized steel or stainless. Steel cable shall be a minimum of
three-eighths inch (3/8") in diameter. Aircraft cable shall be
one-quarter inch (1/4") or larger in diameter.
5. Protection shall be provided at sharp
corners where the anchoring systems require the use of external cables or
straps.
6. Each manufactured ground
anchor shall be listed and installed in accordance with its listing and the
anchor manufacturer's instructions.
7. All anchors, straps, clips or other
components of anchoring must be new and may not be re-used.
B.
Anchoring - Single Section
Homes1. All single section
manufactured homes shall be anchored with diagonal anchoring straps attached to
the frame in addition to the anchoring of the home by means of the over the top
straps which may be supplied and built in by the manufacturer. The number of
diagonal frame anchors required shall be as follows:
a. The diagonal frame anchors shall be located
no more than two feet (2') from either end of the home on both
I-beams and the additional anchors shall be located no more than ten feet
(10') apart along each I-beam.
b. Frame ties shall be installed according to
the component manufacturer's instructions.
c. If eye bolts are utilized as the frame
attachment component, they shall be at least five-eighths inch (5/8")
in diameter and shall be bolted through the vertical portion of the
I-beam.
d. All the vertical tie
straps that are built into the home by the manufacturer shall be used to anchor
the home in addition to the frame anchors which are required by this
section.
C.
Anchoring - Multi-Section Homes
1. Multi-section manufactured homes require
only diagonal frame ties and anchoring. Such ties shall be installed according to
the manufacturer's DAPIA approved anchoring instructions. In the case of used
multi-section homes, the anchoring shall be done according to the rules and
specifications set forth in this section.
2. The number and spacing of frame ties and
anchors required for multi-section manufactured homes shall be based upon the
length of the home and shall be the same spacing as that specified or single
section manufactured homes in Section (B)(1)(a).
D.
Anchoring - Installation of Ground,
Rock and Concrete Anchors1. All ground
anchor systems and each component as used in each ground system
(soil, gravel, rock, etc.) shall be capable of withstanding
without failure a vertical and diagonal pull of 4,725 pounds at each tie for
single-headed anchors or 9,450 pounds for double-headed anchors. Any anchor
installed shall be used in the ground system for which it was designed and
listed.
2. Ground and rock
anchors shall be at least eleven-sixteenths inch (11/16") thick
and be buried to a depth of at least three feet (3'). If longer
anchors are used, they shall be buried to full depth.
3. Concrete slab anchors shall be installed
according to the anchor manufacturer's instructions and shall be capable of
withstanding without failure a vertical and diagonal pull of 4,725 pounds for
each separate anchoring strap attached.
4. After the anchors have been properly
installed, all anchoring straps shall be tensioned according to the home
manufacturer's installation instructions or the anchor manufacturer's
instructions.
Click here to view
image
PROPER TENSIONING OF STRAP TO ANCHOR HEAD
Click here to view
image