Services FAQ Retailer
This web page provides answers to some FAQs regarding manufactured housing retailer and distributor responsibilities under the Federal Manufactured Housing Program. Please refer to the Manufactured Home Procedural and Enforcement Regulations (24 CFR Part 3282) for specific requirements.Q: How do I know what my responsibilities are under the Department of Housing and Urban Development (HUD) Regulations as a manufactured home retailer or distributor?
Retailer and distributor responsibilities are outlined in Subpart F and Subpart I of the Manufactured Home Procedural and Enforcement Regulations. Copies of this document may be purchased through the following:
Institute for Building Technology and Safety
45207 Research Place
Ashburn, VA 20170
703-481-2000
The Standards and Regulations are available for purchase from the Government Printing Office.
Q: Are there penalties for not complying with the Federal Regulations?
YES. Failure to comply with the Federal Regulations may result in a civil or criminal penalty, imposed by HUD or a State Administrative Agency (SAA). Assessed penalties are $1,100 per violation up to a maximum of $1,100,000 for related violations. [3282.10] Furthermore, any person other than an officer or employee of the United States, or a person exercising inspection functions under a State plan, who knowingly and willfully fails to report a violation of any construction or safety standard may be fined up to $1,100 or imprisoned for up to one year or both. [42 USC 5420]
Q: The manufacturer provides a consumer manual in each home. Must I provide it to the purchaser?
YES. The Regulations require the manufacturer to put the consumer manual in a conspicuous place to ensure that only the purchaser removes it. No retailer or distributor may interfere with the distribution of the consumer manual. The retailer shall take any appropriate steps to ensure the purchaser receives a consumer manual. [3282.207(d)]
Q: Do I have to leave the formaldehyde notice displayed in the home?
YES. You may not remove the formaldehyde notice until the sales contract has been completed. In fact, if removed the notice must be replaced according to Section 3280.309(c), 2.7.6.1c 3280
Q: What information am I required to forward to the manufacturer of the home?
Regardless of the home's age, you must, in a timely manner, refer every matter to the manufacturer where the retailer believes or knows that the complaint or other information that indicates the possible existence of an imminent safety hazard, serious defect, defect, or noncompliance is in a new home that you have sold or intend to sell. This applies regardless of who provided the service work or the warranty status of the home. Sources of information include, but are not limited to, consumer complaints, transportation damage, product recall information, and, until the completion of the home's first sale, alterations and repairs. [3282.256]
Q: Am I required to complete the homeowner information card [3282.21] and forward it to the manufacturer?
YES. Each consumer manual should contain three postage paid homeowner information cards. Complete one of these cards at the time of sale with appropriate owner information and return it to the manufacturer. If the homeowner information card is not available, obtain the information the card requires and forward it to the manufacturer. [3282.255]
Q: May I sell or lease a 'new' home that contains an imminent safety hazard or failure to conform to the Standards?
NO. You may not sell, offer for sale, lease, or offer for lease a new home that you know contains an imminent safety hazard or failure to conform to the Standards. [3282.252(a)]
Q: May I sell or lease a 'used' home that does not contain a manufacturer certification label (red metal tag on exterior of each floor) or that contains a failure to conform to the Federal Standards?
A class of homes is a group of homes that share or may share the same failure to conform or imminent safety hazard because these problems were systematically introduced during production. A manufacturer must investigate the existence of a possible class of homes if it even suspects that a defect, serious defect, or imminent safety hazard might exist. This class determination can be based on, but is not limited to, information from any of the following sources: inspections of homes produced before and after the affected home, complaints that can be traced to the same cause, known defects in supplies of components or parts, employee-related information, and quality control process deficiencies [3282.404 and 3282.407]. If you cannot identify the precise affected homes, all homes that may contain the problem must be included in the class. Your IPIA agency must also concur with your method used to define the class of homes or state why the method was inadequate or incorrect.
Q: May I sell or lease a 'used' home that does not contain a manufacturer certification label (red metal tag on exterior of each floor) or that contains a failure to conform to the Federal Standards?YES. Under the Federal Regulations, the general prohibition of sale does not apply to used manufactured homes that are being sold or leased or offered for sale after the first purchase for purposes other than resale. [3282.252(c)] NOTE: State laws concerning the sale of used homes may apply.
Q: What is my responsibility as a retailer if I know a new home on the lot does not conform to the HUD Standards?
You must contact the manufacturer; provide full information concerning the problem, and request appropriate action. This action may include manufacturer repair or authorization for you to repair on a reimbursable basis. [3282.414(b)] You may not offer to either sell or lease the home until it meets the Standards.
Q: May I make corrections or alterations to a new manufactured home prior to the sale of the home?
YES, as long as the home is not altered in such a way as to create an imminent safety hazard or take it out of conformance. [3282.504] But in order to avoid taking the home out of conformance, you must receive manufacturer authorization, obtain applicable instructions, perform additional testing, and maintain complete records of the work (see definition of Alteration below). The manufacturer is responsible for correcting all non-conformances and imminent safety hazards on homes not yet sold, regardless of the severity. [3282.253(c)]
Q: Am I required to maintain records of alterations or repairs that I have made to a new manufactured home?
YES. You must maintain complete records of all alterations and repairs conducted by your retail operation or service contractor on new manufactured homes. [3282.414(b), 3282.254(c)]
Q: Who do I contact when I forward a complaint or a request for service to the manufacturer but the manufacturer does not adequately respond?
You may refer this matter to the SAA where the home is currently located or to HUD if there is no SAA. [3282.256(a)] A list of all SAA's and HUD's address are included in this brochure and are on HUD's website.
DEFINITIONS
Your state SAA has the authority and responsibility to monitor your records for Subpart I compliance [3282.405(a)]. HUD also has the authority to review records and to conduct inspections and investigations as necessary, and may designate a representative to carry out those responsibilities [42 USC 5413 and 3282.501(b)].Imminent safety hazard
A condition that presents an imminent and unreasonable risk of death or severe personal injury.
Serious defect
A failure to conform that causes a manufactured home or component within to be unfit for ordinary use and that results in an unreasonable risk of injury or death.
Defect
A failure to conform that causes a manufactured home or component within to be unfit for its intended use, but that does not result in unreasonable risk of injury or death.
Noncompliance
A failure to comply with the Federal Standards that does not constitute a defect, serious defect, or imminent safety hazard.
Failure to Conform
A noncompliance, defect, serious defect, or imminent safety hazard that is Standards-related.
Alteration
Replacement, addition, modification, or removal of any equipment (generally plug-in type) prior to sale of the home by a retailer to a consumer, that may affect the construction, fire safety, occupancy, plumbing, or heat-producing or electrical system.
Completion of sale
A sales transaction is considered completed when all the goods and services that the retailer agreed to provide at the time the contract was entered into are provided. This may include delivery and set-up of the home. Retailer
Any person engaged in the sale, lease, or distribution of new manufactured homes for purposes other than resale.
Distributor
Any person engaged in the sale and distribution of manufactured homes for resale. [3282.7 and 3282.252(b)]
NOTE: This web page only addresses responsibilities under the HUD Procedural and Enforcement Regulations. Refer to your responsible State official for any additional requirements.
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