Current through Register Vol. 49, No. 9, September, 2024
CHAPTER 1.
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repealed.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 2.
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 3.
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 License1.
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 for
manufactured housing violations which shall not exceed $3,446 per violation and
$4,307,160 per year as of the effective date of these rules based upon the
inflation-adjusted penalty amount prescribed by Act 391 of 2023. The future per
violation and per year maximums shall be the inflation-adjusted amount
prescribed by Act 391 of 2023 as adopted at a regular meeting of the Commission
based upon the recommendation of the Director of the Commission and posted on
the Commission's website.
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
Certification1. 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
(i) 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 Deposit1. 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
Licensing1. 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
Expiration1. 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.
Reciprocity1. 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
Installers1. 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 Fee1. 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 Salespeople1.
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
LicenseA.
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 in accordance
with Section 300(E)(3) 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)
Except as provided in the preceding paragraph, 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.
(b) A monetary penalty imposed under this
section is not abated by a subsequent surrender, suspension, failure or refusal
to renew a license, or revocation of the license or certification.
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 in accordance with Section 300(E)(3) 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 3 282.211.
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 ProgramA. 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 Complaints1. 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 in accordance with Section 300(E)(3) 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
FundA.
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 Awarded1.
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.
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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.
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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
Shimsa. 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.
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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 Connections1.
Multi-Section Homes - Sealing of Marriage Line
a. 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 Connectionsa. 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
Connectionsa. 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
SpecificationsA.
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
Homes1. 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 Anchors
1. 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.
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