Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
227.550,
227.570,
227.580,
227.590,
227.600,
227.610,
227.620,
227.630,
227.990
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
227.590(1) requires the
department of Housing, Buildings and Construction to promulgate administrative
regulations reasonably required to effectuate the provisions of
KRS
227.550 to
227.660.
KRS
227.580 makes it unlawful for a manufacturer
to manufacture, import, or sell manufactured homes in Kentucky without a
certificate of acceptability.
KRS
227.570(3) requires the
department to promulgate administrative regulations to establish standards for
the certified installer seal program.
KRS
227.570(1)(a) requires the
department to promulgate administrative regulations establishing a process for
licensing retailers and issuing certificates of acceptability.
KRS
227.620(4)(a) requires the
department to establish fees for a retailer's license, manufacturer's
certificate of acceptability, and Class B, Class B1, and Class B2 seals, in
accordance with KRS
227.620(4)(a) 1. to 4. This
administrative regulation establishes the standards for licensing persons and
companies engaged in the sale of manufactured homes and mobile homes,
establishes the standards for certificate of acceptability for manufacturers of
manufactured homes, and establishes the requirements for certified installer
seals and certification of manufactured home installers.
Section 1. Licensed Retailer.
(1) License application.
(a) Except as provided in subsection (2) of
this section, a person shall not engage in the business of selling manufactured
homes or mobile homes within this state without holding a valid license issued
by the department for each location.
(b) Before engaging in business, an applicant
shall submit to the department:
1. The
completed Form HBC MH-2;
2. A copy
of a valid Kentucky sales tax certificate;
3. A check or money order for the annual
license fee, in the amount of $250 for a full year, or a reduced amount
prorated on a monthly basis for a period of less than a full year, payable to
the Kentucky State Treasurer; and
4. Proof of insurance for general liability
coverage that complies with
KRS
227.610 in the amount of at least:
a. $200,000 bodily injury or death for each
person;
b. $300,000 bodily injury
or death for each accident; and
c.
$100,000 for damage to property.
(c) An applicant whose place of business is
in another state and who possesses a valid retailer license in another state
shall:
1. Comply with this section;
2. Not be required to maintain an established
place of business within Kentucky, if the applicant is not offering a home for
sale within Kentucky; and
3.
Provide a Kentucky B seal for a used manufactured home or mobile home unit sold
for delivery into Kentucky.
(2) Exemptions from Licensure as Retailer.
(a) A manufactured home shall be exempt from
seal requirements and a retailer shall be exempt from licensing if the unit:
1. Is brought into Kentucky for exhibition
purposes only;
2. Is not sold in
Kentucky; and
3. Inspection does
not reveal a condition hazardous to health or safety.
(b) Real estate developer and retailer
venture. A retail license shall not be required of a developer who purchases
new HUD homes from a licensed Kentucky retailer, places the homes on a parcel
of land, and offers the homes for sale to ultimate consumers, if:
1. The developer receives prior written
approval from the department;
2.
The home was installed by a certified installer;
3. The developer owns the homes and the lots
upon which the homes are installed;
4. The manufacturer's warranty period begins
upon possession and shall be transferred from the developer to the
consumer-occupant;
5. The
manufacturer's warranty support shall be performed in accordance with generally
accepted standards for retail transactions;
6. The developer's documentation contains the
name and location of the:
a.
Developer;
b. Development;
and
c. Retailer; and
7. The retailer and installer
provide the required services as warranted and as required by laws governing
retailer and installer license or certification.
(3) Retailer's satellite location.
(a) An additional license shall not be
required for a fully licensed retailer for the display or sale of a
manufactured home located on an individual lot, in a subdivision, land-lease
community, or manufactured home or mobile home park.
(b) A suitable sign identifying the name and
business location of the retailer licensee shall be posted at the
location.
(4) Qualified
personnel required.
(a) Education
requirements. A new retailer license or a renewal of an existing retailer
license shall not be issued unless the retailer employs at least one (1) person
in a management position who has successfully completed the educational
training and departmental testing program administered as part of the Certified
Installer Program under Section 3 of this administrative regulation. The proof
of experience in Section 3(1)(a)7. shall not be required.
(b) Certification. The department shall
classify a person qualifying under subsection (1) of this section as a
certified manager.
(c) Exception. A
certified manager shall not be required at each licensed location for a
retailer with more than one (1) in-state location if:
1. The retailer has only one (1) set-up,
installation, and delivery system located in Kentucky;
2. A certified manager supervises the work of
the system; and
3. The arrangement
is approved, in writing, by the department.
(5) Notification by Licensees.
(a) A retailer shall notify the department,
in writing, within thirty (30) days of a change in:
1. Dealership name;
2. Address of business;
3. Retailer ownership interest of twenty-five
(25) percent or more within a twelve (12) month period; or
4. Principal officer or chief managing
officer of the firm.
(b)
A change in ownership interest of less than twenty-five (25) percent of the
company within a twelve (12) month period shall be reported at the time of the
renewal of the license.
(c) A new
license shall be required if an established business changes location to a
different county.
(6)
Maintenance of Records. A retailer shall:
(a)
Complete and maintain Form HBC MH-7 for each new or used manufactured home or
mobile home sold;
(b) Retain the
completed Form HBC MH-7, for three (3) years; and
(c) Keep the form available for a field
inspector upon request.
Section 2. Manufacturer's Certificate of
Acceptability.
(1) Requirements for issuance.
An applicant for a manufacturer's certificate of acceptability shall submit to
the department:
(a) A completed Form HBC
MH/RV-1;
(b) Proof of insurance for
general liability coverage that complies with
KRS
227.610 in the amount of at least:
1. $300,000 bodily injury or death for each
person;
2. $400,000 bodily or
injury or death for each accident; and
3. $100,000 for damage to property;
and
(c) A certificate of
acceptability fee in the amount of $500 for a full year, or a reduced amount
prorated on a monthly basis for a period of less than a full year, by a check
or money order made payable to the Kentucky State Treasurer.
(2) A manufacturer who is also a
retailer shall comply with retailer licensing provisions in Section 1 of this
administrative regulation.
(3) A
manufacturer shall notify the department in writing, within thirty (30) days of
a change in:
(a) Business name;
(b) Company address;
(c) Ownership interest of twenty-five (25)
percent or more of the company within a twelve (12) month period;
(d) Location of the manufacturing
facility;
(e) The number of
facilities by virtue of the establishment of a new manufacturing facility;
or
(f) Principal officer of the
firm.
(4) A change in
ownership interest of less than twenty-five (25) percent of the company within
a twelve (12) month period shall be reported at the time of the renewal of the
certificate of acceptability.
(5)
(a) A manufacturer who considers information
relating to a building or in-plant quality control system to be proprietary
shall designate the information as proprietary at the time of plan
submission.
(b) The designated
information shall be maintained and treated as proprietary by:
1. The department;
2. Inspection and evaluation personnel;
and
3. Local enforcement
agencies.
Section
3. Certified Installers.
(1)
Initial application.
(a) An applicant for
installer certification shall submit to the department:
1. A completed Form HBC MH-3, Certified
Installer Application;
2. An
application fee of $100;
3. Proof
of successful completion of a fifteen (15) hour approved course of
education;
4. A passing score on
the certified installer examination administered by the department;
5. A certificate verifying current worker's
compensation insurance coverage or a notarized waiver of exemption;
6. Proof of general liability insurance
coverage in an amount not less than $250,000; and
7. Proof of experience in the form of:
a. A completed Form HBC MH-3A documenting the
applicant's experience assisting in site preparation and installation of
manufactured homes under the supervision of a certified installer for at least
sixty (60) days and on at least five (5) homes; or
b. An affidavit documenting the applicant's
experience assisting in site preparation and installation of manufactured homes
under the supervision of a certified installer for at least one (1) year, as
attested to by three (3) individuals who are licensed retailers, manufacturers,
manufactured home community managers, manufactured home design professionals,
or certified installers.
(b) An applicant who possesses an active
installation license issued by the United States Department of Housing and
Urban Development pursuant to
24 C.F.R., §
3286.201 through
24 C.F.R., §
3286.211 shall be exempt from the
requirements of subparagraphs 4. and 7. of paragraph (a) of this
subsection.
(c) An applicant who
possesses an active installation license or certification in good standing from
a jurisdiction with which the department has reciprocity shall be exempt from
the requirements of subparagraphs 4. and 7. of paragraph (a) of this
subsection.
(d) If an initial
certificate is for a period of less than twelve (12) months, the fee shall be
prorated pursuant to the schedule provided in Form HBC
MH-3.
(2) An installer
certification shall be issued in the name of the individual qualified under
subsection (1) of this section. The individual may request that the certificate
also bear the name of the employing company.
(3)
(a) If
the certified installer changes his or her business name or is no longer
associated with the company whose name appears upon the certificate, the
certified installer shall inform the department and request an amended
certificate reflecting the individual's status.
(b) If the certified installer is no longer
associated with a company, that company shall not hold itself out as a
certified installer or as having in its employ a certified installer until
another certified person has become associated with that
company.
(4) Certified
Installer Seal. A certified installer who installs a manufactured home or
mobile home in accordance with
KRS
227.570(3) and this
administrative regulation shall place a certified installer seal on the home.
(a) Certified installer seals shall be
obtained from the department.
(b)
The application shall be:
1. Filed on Form HBC
MH-12, Application for Purchasing Seals; and
2. Accompanied by a fee of twenty-five (25)
dollars for each seal.
(5) Application and placement of certified
installer seals.
(a) Each certified installer
seal consists of two (2) parts that shall be affixed as follows:
1. One (1) part shall be placed two (2)
inches above the HUD label on the outside left corner of a manufactured home or
on the outside left corner of a mobile home if a HUD label is not required;
and
2. One (1) part shall be placed
on the inside of the electrical panel in the manufactured home.
(b) Other seals, stamps, covers,
or other markings shall not be placed within two (2) inches of the certified
installer seal.
(6) Lost
or damaged seals.
(a) If a certified installer
seal becomes lost or damaged, the owner shall notify the department
immediately, in writing, specifying:
1. The
manufacturer;
2. The manufactured
or mobile home serial number; and
3. The certified installer seal number, if
known.
(b) A damaged seal
shall be:
1. Promptly returned to the
department; and
2. Replaced by the
department for a fee of twenty-five (25) dollars.
(7) Recordkeeping. A certified
installer shall:
(a) Complete and maintain
Form HBC MH 40-30, Monthly Certified Installer Certification, for each
certified installation;
(b) Retain
the completed Form HBC MH 40-30, Monthly Certified Installer Certification, for
three (3) years;
(c) Make a copy of
the form available to a state inspector upon request; and
(d) Send the department a monthly report of
the information found in HBC MH 40-30 by mail, electronic mail, or
facsimile.
Section
4. Renewals.
(1) Expiration of
licenses and certificates. A license, a certificate of acceptability, and an
installer certification, unless renewed, revoked, or suspended, shall expire
on:
(a) For individuals, the last day of the
licensee's birth month in the following year; or
(b) For business organizations:
1. The last day of the licensee's month of
incorporation in the following year; or
2. The last day of the licensee's birth month
in the following year.
(2) Renewal of licenses and certificates.
(a) A retailer, manufacturer, or certified
installer, wishing to renew a license or certification, shall submit:
1. A completed License and Certification
Renewal, Form HBC MH/RV-3;
2. Proof
of continuing general liability insurance coverage; and
3. A check or money order for the renewal
fee, in the amount of:
a. $250 for a licensed
retailer;
b. $500 for a certificate
of acceptability; or
c. Fifty (50)
dollars for an installer certification.
(b) A retailer, manufacturer, or certified
installer shall renew a license or certificate before the license or
certificate expires pursuant to subsection (1) of this section.
(c) A certified installer shall submit proof
of completion of the continuing education requirements established in
815 KAR 1:030.
(d) A retailer and manufacturer shall
maintain at least minimum general liability insurance and shall notify the
department if there is a change in insurance coverage.
(3) A certified installer may place his or
her certification in inactive status.
(a) To
place an installer certification in inactive status, a certified installer
shall pay an inactive fee of fifty (50) dollars.
(b) An inactive certified installer shall
return any unused certified installer seals to the department within thirty
(30) days of his or her certification becoming inactive.
(c) An inactive certified installer shall not
install manufactured or mobile homes, represent him or herself as a certified
installer, or otherwise engage in the work of a certified installer.
(d) To reactivate an inactive installer
certification, the certificate holder shall complete all renewal requirements
of subsection (2) of this section and pay a fifty (50) dollar renewal
fee.
Section 5.
Incorporation by Reference.
(1) The following
material is incorporated by reference:
(a)
Form HBC MH/RV-1, "Application of Certificate of Acceptability", April
2023;
(b) Form HBC MH-2,
"Application for Manufactured Home Retailer's License", April 2023;
(c) Form HBC MH-3, "Certified Installer
Application", April 2023;
(d) Form
HBC MH-3A, "Installer Training Verification Form", April 2023;
(e) Form HBC MH/RV-3, "License and
Certification Renewal", April 2023;
(f) Form HBC MH-12, "Application for
Purchasing Seals", May 2020;
(g)
Form HBC MH-7, "Monthly Manufactured Home Retailer Certification Form", May
2020; and
(h) Form HBC MH 40-30,
"Monthly Certified Installer Certification", May 2020.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Department of Housing,
Buildings and Construction, Division of Building Code Enforcement, Manufactured
Housing Branch, 500 Mero Street, First Floor, Frankfort, Kentucky 40601, Monday
through Friday, 8 a.m. through 4:30 p.m. and is available online at
https://dhbc.ky.gov.
STATUTORY AUTHORITY:
KRS
227.570(1)(a), (2), (3),
227.580,
227.590,
227.620(4)(a)