Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: To establish guidelines for the Manufactured
Housing Consumer Recovery Fund (Recovery Fund) pursuant to section
700.041,
RSMo.
(1) The Recovery Fund
is established for the purpose of paying unsatisfied claims as approved by the
commission under the procedures established by this rule. The commission shall
administer the Recovery Fund, and all monies in the fund shall be used solely
as prescribed in this rule and pursuant to section
700.041,
RSMo.
(2) The advisory committee
shall consist of three (3) members to assist the commission in the
administration and investigation of all claims submitted by consumers under
this rule. The committee members shall include the manager, one (1) person from
the commission's staff counsel's office, and one (1) member of the Missouri
Manufactured Housing Association.
(3) In order to receive a disbursement of
funds from the Recovery Fund, the following criteria shall be met:
(A) A consumer must have purchased a new
manufactured home or residential modular unit as those terms are defined in
Chapter 700, RSMo, and the commission's rules;
(B) The new manufactured home or residential
modular unit must have been purchased from a manufacturer or dealer as those
terms are defined in Chapter 700, RSMo, and the commission's rules;
(C) At the time of purchase, the manufacturer
or dealer must have been registered with the commission pursuant to sections
700.010 to
700.692,
RSMo;
(D) If a consumer is seeking
a disbursement from the Recovery Fund resulting from the actions of an
installer, at the time of installation, such installer must have been licensed
with the commission pursuant to sections
700.650 to
700.692,
RSMo;
(E) A consumer must have an
unsatisfied claim resulting from a violation of-
1. Chapter 700, RSMo; or
2. Any rule adopted by the commission; or
3. The National Manufactured
Housing Construction and Safety Standards in 24 CFR Part 3280 or the
Manufactured Home Procedural and Enforcement Regulations in Part 3282 or the
Manufactured Home Installation Standards and Manufactured Housing Installation
Rules and Regulations in parts 3285 and 3286; or
4. The standards that govern modular units
defined in 4 CSR
240-123.080;
(F) A consumer must have exhausted all legal
remedies as set forth in section (6) prior to submitting a claim
form;
(G) A consumer must file a
claim with the commission on a claim form provided by the commission and within
one (1) year from the date of exhaustion of legal remedies; and
(H) The amount requested by the consumer must
reflect the actual cost of repairs or additional costs incurred because a
manufacturer, dealer, or installer is out-of-business, bankrupt, closed,
dissolved, or no longer subject to the jurisdiction of the commission. In no
event shall a reimbursement amount be made from the Recovery Fund in excess of
five thousand dollars ($5,000) for single section homes and seven thousand five
hundred ($7,500) for multi-section homes. No claim shall include attorney's
fees, double, treble, punitive, or exemplary damages.
(4) Upon receipt of a claim form, the
advisory committee will investigate and determine whether the requirements of
this rule have been met and shall present its findings to the commission in the
form of a recommendation.
(5)
Recommendations of the advisory committee for disbursement of funds from the
Recovery Fund shall be subject to the approval of the commission.
(6) In determining whether an applicant's
legal remedies have been exhausted, the advisory committee may consider any of
the following:
(A) Evidence demonstrating
that the consumer has obtained a judgment from a circuit court against a
manufacturer, dealer, or installer and that the consumer has been unable to
satisfy this judgment; or
(B)
Information indicating that a manufacturer, dealer, or installer, against whom
legal action may be taken, is out-of-business, bankrupt, closed, dissolved, or
no longer subject to the jurisdiction of the commission; or
(C) Information indicating that legal action
against a manufacturer, dealer, or installer is futile or is barred by statute
or equitable principle, or any other relevant factor.
(7) A claim form submitted to the commission
must be completed in its entirety. The claim form shall contain, but may not be
limited to, the following:
(A) The name,
physical address, and telephone number of the consumer who purchased the
home;
(B) A copy of the purchase
agreement or bill of sale;
(C) Any
other information the consumer has regarding the purchase and installation of
the home, including a description of any defect, work orders, invoices, or
other information;
(D) The business
name and physical address of the dealer; and
(E) The business name and physical address of
the manufacturing plant where the home was manufactured and any other
information deemed necessary by the commission.
(8) The advisory committee may request or
obtain estimates from approved or registered industry representatives to
determine the actual repair costs.
(9) The advisory committee, the manager, or
the commission shall not be liable if the Recovery Fund does not have
sufficient funds to cover all the damages and/or repair costs.
(10) Should the Recovery Fund contain
insufficient funds to pay approved claims, claims shall be processed in the
order in which the approved claims have been received.
(11) If the claim arises directly from the
sale, lease-purchase, exchange, brokerage, or installation of a manufactured or
modular home before July 1, 2009, the consumer will not be eligible to file a
claim against the Recovery Fund.
(12) Nothing in this chapter shall limit the
ability of the manager to inspect a manufactured home or modular unit at any
reasonable time before or during pendency of the claim or as directed by the
commission.
*Original authority: 700.040, RSMo 1973, amended 1976,
1978, 1982, 1984, 1989, 1993, 1995, 1999 and 700.041, RSMo
2008.
