Clarification of licensing, installation and code laws and rules

Manufactured Structures Bulletin 22

To: Manufactured Home Manufacturers, Dealers, and Installers

From: Richard Brooks Director

Date:
March 1, 1989

Subject: Clarification of Licensing, Installation, and Code Laws and Rules

INSTALLATIONS
Dealers that provide for the installation and/or anchoring of manufactured homes must get the dealer copy of the installation or anchoring certificate from the installer and place it in the dealer's file for that unit. We will be spot checking during dealer lot inspections to determine if the certificates are in the dealer's file. Refer to Rule 1350.8100.
The dealer must also make sure that the consumer has received the certificate from the installer, even though the installation may have been sub-contracted to the installer. Dealers that provide installations for the consumer are responsible for assuring that the home is properly installed and/or anchored, that the installer is currently registered and that the installer is complying with the rules governing installations.

DEALER LOT INSPECTIONS
We will begin dealer inspections again in the spring of 1989. Generally we will be looking at the following on new homes:

1. Transportation damage

2. Seal tampering

3. Dealer recordkeeping - repairs, alterations, installation, etc.

4. Dealer correction or warranty service orders, and an indication that notification was sent to the manufacturer. Determination for corrections made by whom.

5. Formaldehyde Notices posted in homes.

6. Home Owners and Installation Instruction Manuals available.

On used home manufactured after July 1, 1972:

1. Non-complying alterations or repairs.

2. Proper construction labels (State or HUD).

3. Verify that the homes were designed for use in Minnesota.

And with respect to licensing:

1. Proper display of license in conspicuous place clearly visible to the consumer customer. The current license only may be displayed.

2. General discussion with the dealer and assistance in answering questions the dealer may have regarding the program.

3. Review Salesperson List.

4. Locations of Subagencies or Storage Lots. The location of a Dealers Manufactured Home Storage Lots located away from the place of business must be reported to this Division. Rule 1350.7300 subp. 4. If you have a storage lot, notify this Division of its location.

5. Dealer record keeping - repairs, alterations, installations, etc.

The visit to the dealers lot will be done in a business-like, friendly manner. We will appreciate your cooperation and assistance during the visit. If dealers have any questions about the up-coming dealer lot inspection, they may contact Steve Hernick at (612) 284-5848.

DEALERS RECORDS

(Minnesota Statute 327B.06 Subd. 2. EXAMINATION OF RECORDS.)

The commissioner may make examinations within or without this state of each dealer's records at such reasonable time and in such scope as is necessary to enforce the provisions of Sections 327B.01 to 327B.12. Questions have arisen about the examination of records at a dealers place of business. The Statute cited above clearly gives us the authority to examine dealers records without cause and without prior appointment with the dealer. Refusal to permit examination of records is a cause for license revocation or suspension. Refer to Minnesota Statutes 327B.05 Subd. 1(b).

The intent of this law is to permit the commissioner to determine if the dealer is complying with the laws regulating manufactured homes and dealer licensing. Sensitive information contained in the files, that may not be related to the law and rules, will be considered as private and will not be divulged to others.

WARRANTIES

Manufacturers and dealers are jointly and severally required to service or repair manufactured homes when notified of a breech of either the state-implied warranty or the manufacturers express warranty. Refer to Minnesota Statutes 327B.02 through 327B.03. This means that both the manufacturer and dealer have a responsibility to provide warranty service. All items included in the sale of the manufactured home to the consumer customer are covered under the state-implied warranty such as the installation, anchoring, options such as washers, dryers, air-conditioning, and the skirting and utility connections.

Failing or refusing to provide warranty service is a cause for license revocation or suspension and can include a penalty fee and restitution to an injured consumer.

SALE OF REPOSSESSED MANUFACTURED HOMES

Dealers that offer repossessed manufactured homes for sale for others (Lending Institutions included) are in fact brokering the sale of those homes. All of the laws and rules that apply to a brokered sales apply to the sale of brokered repossessed homes, including but not limited to listing agreements, trust accounts, statements of sale, and when the homes is located in a park, the Safety Feature Disclosure.

ALTERATIONS

Alterations are covered in Rule 1350.3800. Please review this rule.

Repairs with approved components or parts replaced in like kind does not constitute an alteration. In municipalities enforcing the State Building Code a permit and inspection will be required.

Recent questions on the replacement of water heaters has generated concerns by this Division. Water heaters must be listed for use in manufactured homes. The burner must be separated from the atmosphere in the home. Older homes have the water heaters in an exterior compartment with combustion air provided by means of louvers to the outside of the home. Newer homes usually have a sealed combustion water heater located in an interior closet. Sealed combustion water heaters have no draft diverter and receive combustion air ducted through the floor to outside the home. In all cases, water heaters must be installed in accordance with the heater manufacturer's installation instructions. Replacement water heaters must match the original installation. Do not replace sealed combustion water heaters with a type designed to be used in a compartment with louvers to the outdoors.

FOUNDATION SYSTEMS AND INSTALLATION SEALS

A foundation system is a foundation constructed in compliance with the Minnesota State Building Code. Installation seals are not required to be placed on manufactured homes installed on a foundation system located within a Municipality that is enforcing the State Building Code. Installation seals are required on manufactured homes installed on typical support systems in code areas. The installer must obtain permits and inspections from the Municipal Building Official for all manufactured home installations in code areas.

All manufactured homes installed in non-code areas must have an installation seal affixed by the installer regardless of the type of foundation it is placed on.

To determine if the installation site is located in a municipality or county enforcing the Minnesota State Building Code the Dealer or Installer must contact the municipality or county having jurisdiction.

Frame removal is permitted when shown in the manufacturers installation instructions, and the foundation system details are provided by the manufacturer. A pending court decision could eliminate frame removal and prohibit the manufacturer from providing this option.

One installation support and/or anchoring seal is required on multiple wide manufactured homes.

INSTALLATION CERTIFICATES

Installation Certificates that are incomplete, improperly filled out, or not legible, will be void and returned to the installer. Make sure all copies are complete and legible. Use a pen on all copies if necessary. Your cooperation is required and will assist in reducing the expense of returning them to you. Failure to comply may require the voiding of seals when certificates are improperly filled out.

You must use temporary certificates during winter months and when weather conditions do not allow a proper setup. Assign a seal number. Give copy to owners, and the dealer. Mail copy to State Building Codes and Standards Division. Temporary certificates must not be used for anchoring.

Temporary and permanent installation certificates must be sent to this Division within 7 days after completion of the installation.

ANCHORING

Manufactured home anchoring, with the use of typical anchors that are required to be turned into the ground, cannot be done when the ground is frozen. Drilling holes through the frost is not permitted. Anchor tests provided by the Anchor Manufacturers require the anchor to be turned into the soil the depth of the shaft. Installers that drill holes for the anchors in place of turning them into the ground will be disqualified from obtaining anchoring seals.