Hud Background Information

The Manufactured Housing program is a national program established to protect the health and safety of the owners of manufactured (mobile) homes. Under the program HUD issues, monitors, and enforces Federal manufactured home construction and safety standards. The intent of the program is to: reduce personal injuries, deaths, property damage, insurance costs, and to improve the quality and durability of manufactured homes. The standards preempt State and local laws which are not identical to the Federal standards. The standards may be enforced by HUD directly or by various States which have established State Administrative Agencies (SAAs) in order to participate in the program. HUD has the authority to inspect factories and obtain records needed to enforce the standards. If a manufactured home does not conform to Federal standards, the manufacturer may be required to notify the consumer. If the home contains a defect which presents an unreasonable risk of injury or death, the manufacturer may be required to correct the defect.


Under the program, State or third-party agencies are established to check and approve designs and calculations used in the construction of manufactured homes. Other State or third-party agencies certify and inspect each manufacturing plant to assure construction in compliance with the standards and with approved designs. HUD's monitoring contractor acts as a repository for design packages submitted to HUD under the regulations and reviews a percentage of the approved designs to assure compliance. HUD's contractor also monitors the State or third-party inspection agencies to assure adequate performance.

The program also provides a system for handling consumer complaints relating to failures to conform in the construction of homes. Thirty-seven States have been approved by HUD to participate in the program as State Administrative Agencies. Each of these States agencies handles its own consumer complaints, conducts, inspections, makes enforcement determinations, and conducts hearings. For the remaining non-SAA States, for non-compliances that amount to a serious defect or imminent safety hazard, or for non-compliances occurring in homes manufactured in more than one State, HUD conducts investigations, holds hearings and issues orders requiring remedial action or notification of homeowners.

The Act gives HUD broad investigatory authority to conduct inspections, issue subpoenas and issue orders. HUD may bring administrative actions against manufacturers or inspection agencies for violations of the Act or regulations. The Act also provides for injunctive actions in Federal court and civil money penalties and criminal sanctions.