10 TAC §80.201
The Manufactured Housing Division of the Texas Department
of Housing and Community Affairs (the "Department") adopts with non-substantive
changes §80.201; therefore, the text will be republished. The proposal
was published in the October 29, 2004, issue of the
Texas Register
(29 TexReg 9952).
The effective date of the adoption is thirty (30) days following the date
of publication with the
Texas Register
of
notice that the rule has been adopted.
A public hearing was held on November 30, 2004. The following interested
groups or associations presented comments either at the hearing or in writing:
Texas Manufactured Housing Association ("TMHA").
Set forth below are comments from TMHA and the analysis and recommendations
of staff.
One commenter responded, both in writing and with oral testimony at the
public hearing on November 30, 2004. The commenter pointed out that the proposed
rule overlapped with a portion of the existing rule, 10 TAC §80.207,
dealing with conversion of manufactured homes documented as real property
back into manufactured homes documented as personal property. In connection
with a comprehensive review and proposed revisions to all aspects of these
rules, the staff of the Division will be proposing that §80.207 be deleted.
However, the overlap is noted, and in the event that §80.207 is not deleted,
it will be proposed that this §80.201(e), as amended, be revised consistent
with §80.207 and that §80.207 be revised as appropriate.
Other aspects of the comment focused on the substance of the proposed rule
change, albeit couched in terms of proposed amendments to §80.207(a).
The first comment was to add a provision to §80.207(a)(1) to provide
for a statement by a lender that it consented. The second was to expand §80.207(a)(4)
to require confirmation of a clear chain of title. The third was to require
under a new §80.207(a)(6) that the newly issued Statement of Ownership
and Location, reflecting personal property status, be recorded in the county
real property records, presumably in the county where the home was located
at the time that it was real property. All of these comments make good sense,
and, though already addressed in the proposed language of amended 10 TAC §80.201(e),
have been more clearly stated therein through some additional non-substantive
changes.
Except as noted below, the rules as proposed on October 29, 2004, are adopted
as final rules with the following non-substantive changes.
Corrected the word "reflect" to "reflected" in subsection (b)(2)(C).
New subsection (e) is reworded for clarification.
The following is a restatement of the rules' factual basis:
New subsection (e) explains that an owner acquiring a manufactured home
that is and will remain real property is not required to apply for an updated
Statement of Ownership and Location unless the owner desires a change to personal
property status; the home no longer meets the requirements as real property;
or the home is being moved.
The amended rule is adopted under the Texas Manufactured Housing
Standards Act, Occupations Code, Subtitle C, Chapter 1201, §1201.052,
which provides the Department with authority to amend, add, and repeal rules
governing the Manufactured Housing Division of the Department and under Texas
Government Code, Chapter 2306, §2306.603, which authorizes the director
to adopt rules as necessary to administer and enforce the manufactured housing
program through the Manufactured Housing Division.
No other statute, code, or article is affected by the amended rule.
§80.201.Issuance of Statements of Ownership and Location.
(a)
Initial Statements.
(1)
The Department will issue an initial Statement of Ownership
and Location within ten (10) working days after receipt of a complete application,
accompanied by all documentation necessary to support the application.
(2)
In order to be deemed complete, an application for a Statement
of Ownership and Location must include, as applicable:
(A)
A completed and fully executed Application for Statement
of Ownership and Location on the Department's prescribed form;
(B)
The required fee;
(C)
If one or more liens are to be reflected on the Statement
of Ownership and Location, copies of documentation establishing the creation,
existence, and priority of each such lien;
(D)
If a manufactured home is relocated, satisfactory evidence
that there are no property tax liens on the home or that provision has been
made for them. Satisfactory evidence would include, but would not be limited
to, evidence that the relocation was effected with a TxDOT approved move or
a statement from a title company, lender, or escrow agent, executed by a person
purporting to be its duly authorized officer or representative, that money
sufficient to pay the taxes was being held by them and would be applied to
the payment of those taxes.
(b)
Revised Statements.
(1)
The Department will issue a revised Statement of Ownership
and Location within ten (10) working days after receipt of a complete application,
accompanied by all documentation necessary to support the application.
(2)
In order to be deemed complete, an application for a revised
Statement of Ownership and Location must include, as applicable:
(A)
A completed and fully executed Application for Statement
of Ownership and Location on the Department's prescribed form;
(B)
The required fee;
(C)
If one or more liens are to be reflected on the Statement
of Ownership and Location, copies of documentation establishing the creation,
existence, and priority of each such lien;
(D)
If one or more existing liens are to be released or transferred,
appropriate supporting documentation, including a properly executed and completed
release of lien form;
(E)
If a manufactured home is to be designated for use as a
dwelling after the home has been designated for business use only or salvage,
evidence of a satisfactory habitability inspection by the Department, accompanied
by the required fee;
(F)
If a manufactured home is relocated, satisfactory evidence
that there are no property tax liens on the home or that provision has been
made for them. Satisfactory evidence would include but would not be limited
to, evidence that the relocation was effected with a TxDOT approved move,
a paid taxes certificate from the county tax assessor for the county where
the home was located prior to the move, or an original, signed statement from
a title company, lender, or escrow agent, executed by a person purporting
to be its duly authorized officer or representative, that money sufficient
to pay the taxes was being held by them and would be applied to the payment
of those taxes;
(G)
In instances where title to a manufactured home is conveyed
in a transaction other than a transaction requiring a license under the Standards
Act, such as testamentary and non-testamentary transfers, private sales not
requiring a license, voluntary or court-ordered partitions, etc, originals
or certified copies of appropriate documentation to support any such transfer,
as required by the Department; and
(3)
Any change in a Statement of Ownership and Location shall
result in a new Statement of Ownership and Location being issued, and the
new Statement of Ownership and Location shall specify the effective date which
shall be either the date of the submission of the completed application or
such other date as the Director may determine is appropriately supported by
the information provided.
(c)
Replacing a Document of Title.
(1)
Upon receipt of a written request, applicable fee(s), and
any necessary additional information, including a notarized statement of election
of real or personal property status, the Department will replace a document
of title with a Statement of Ownership and Location.
(2)
If a manufactured home title showed that it was personal
property, that will be presumed to be its status until and unless a revised
Statement of Ownership and Location is applied for and issued. Likewise, if
a manufactured home has had a certificate of attachment issued and had title
cancelled to real property, that shall be presumed to be its status until
and unless a revised Statement of Ownership and Location is applied for and
issued.
(d)
Corrections to Statements of Ownership and Location.
(1)
If a correction is required as a result of a department
error, it will be corrected at no charge.
(2)
If an error was made for another reason, it will be corrected
upon receipt of all documentation needed to support the correction.
(3)
If a correction is requested because of an error made by
a party other than the department, the correction will not be made until the
department receives the following:
(A)
A complete corrected application for Statement of Ownership
and Location,
(B)
Any necessary supporting documentation, and
(C)
The required fee of $25, which can be reduced or waived
by the director for good cause.
(e)
Updating of Statements of Ownership and Location on Manufactured
Homes Transferred as Real Property.
(1)
When a manufactured home has become real property because
the owner elected real property status and their Statement of Ownership and
Location was recorded in the appropriate county records, the home may be sold
or transferred as real property by the customary means used for real property
transactions. As long as the home remains real property at the same location,
ownership of the home is confirmed in the same manner as any other real property,
rather than by verifying Department records. Any buyer or transferee is not
required to apply for a new Statement of Ownership and Location until and
unless:
(A)
the manufactured home is moved to a new location;
(B)
the current owner of the manufactured home wishes to convert
it to personal property status; or
(C)
the manufactured home no longer meets the requirements
to be classified as real property (such as the home being on property subject
to a long term lease which is not assignable to the buyer or transferee).
(2)
To convert the manufactured home back from real property
to personal property, the owner of the home must submit a completed Application
for Statement of Ownership and Location to the Department with supporting
documentation as follows:
(A)
If the applicant is not the owner of record with the Department,
satisfactory proof of ownership under a complete chain of title. Acceptable
evidence would include, but not be limited to, authenticated copies of all
intervening transfer documents, a court order confirming ownership, or a commitment
for title insurance in such owner's name issued by a title insurance company
licensed to do business in Texas.
(B)
Satisfactory evidence that any liens on the manufactured
home have been discharged or that all lienholders have consented to the change.
(3)
Upon receipt of the certified copy of the new Statement
of Ownership and Location that reflects the personal property election of
the home, the owner shall file that certified copy in the county real property
records, at which time the personal property election will take effect.
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of
the Secretary of State on February 14, 2005.
TRD-200500642
Timothy K. Irvine
Executive Director
Texas Department of Housing and Community Affairs
Effective date: March 27, 2005
Proposal publication date: October 29, 2004
For further information, please call: (512) 475-2208