TITLE 10.COMMUNITY DEVELOPMENT

Part 1. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

Chapter 80. MANUFACTURED HOUSING

The Manufactured Housing Division of the Texas Department of Housing and Community Affairs (the "Department") proposes amendments to §80.20 and §80.202, which increase fees in amounts that are reasonable and necessary to defray the costs of administering the Texas Manufactured Housing Standards Act, Occupations Code, Subtitle C, Chapter 1201.

The Department has not revised its fees in approximately 15 years. During that time, operating costs of the Department have increased, in titling, inspections, enforcement, and other areas. The proposed increases are designed to enable the Department to continue to conduct its oversight functions on a fiscally responsible basis.

Tim Irvine, Deputy Executive Director of the Manufactured Housing Division of the Texas Department of Housing and Community Affairs, has determined that for the first five-year period that these sections as proposed are in effect the fiscal implications are expected to be $2,461,935 per year as a result of increasing fees in §80.20 and $2,291,010 per year as a result of increasing fees in §80.202. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the sections.

Section 80.20(b)(1) increases the reporting fee for the installation of a home not installed on a permanent foundation from $20 to $100.

Section 80.20(b)(2) increases the reporting fee for homes installed on a permanent foundation from $100 to $150.

Section 80.20(c) increases the alteration fee from $30 to $60.

Section 80.20(d) increases the fee for issuance of Texas Seals from $15 to $35 per section.

Section 80.20(f) increases the fee for a homeowner’s temporary installer’s license from $40 to $100.

Section 80.20(h)(1) increases the fee for a habitability inspection from $100 to $150 on a home which is to be titled for use as a residence after the title has been previously canceled to business use or to become real estate.

Section 80.20(h)(2) increases the fee for a habitability inspection from $125 to $200 for the plan review and inspection of a salvaged home which is to be rebuilt to determine if the home is habitable for reinstatement of the title.

Section 80.20(i)(1) increases the fee for a consumer complaint inspection from $100 to $150 for the initial inspection when requested by a license holder or party other than a consumer.

Section 80.20(i)(2) increases the fee for a consumer complaint inspection from $100 to $150 for the reinspection of a consumer’s home.

Section 80.202(a)(1) increases the fee for a title transaction from $35 to $55.

Section 80.202(a)(2) increases the fee to provide a certification form for a home that is permanently affixed from $100 to $150.

Section 80.202(a)(3) increases the fee for Quick Title Service from $35 to $55 for each title transaction.

Section 80.202(e) increases the fee for a title search from $10 to $20.

Mr. Irvine also has determined that for each year of the first five years the sections as proposed are in effect the public benefit as a result of enforcing the sections will be: ability to continue providing quality service in title issuance, installation inspections, enforcement activities, and gathering of data to facilitate the administration of the Act. The probable economic costs for each section of the rules are as follows:

Section 80.20(b)(1) is expected to have an economic cost to persons/businesses of an additional $80 per home for reporting the installation of a home that is not installed on a permanent foundation. The increase is necessary to defray the cost of conducting installation inspections. This will benefit the consumer by ensuring that the home is installed properly. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.20(b)(2) is expected to have an economic cost to persons/businesses of an additional $50 per home for reporting the installation of a home that is installed on a permanent foundation. The increase is necessary to defray the cost of conducting installation inspections. This will benefit the consumer by ensuring that the home is installed properly. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.20(c) is expected to have an economic cost to persons/businesses of an additional $30 per hour or a minimum of $60 for the inspection of alterations. The increase is necessary to defray cost of conducting the inspection. This will benefit the consumer by ensuring that alterations on the structure, plumbing, heating, or electrical systems are safely and properly executed. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.20(d) is expected to have an economic cost to persons/businesses of an additional $20 per section for the issuance of Texas Seals. The increase is necessary to defray the cost of issuing the seals. This will benefit the consumer by ensuring that the seals are issued in a timely manner. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.20(f) is expected to have an economic cost to persons/businesses of an additional $60 per section for the issuance of a homeowner’s temporary installer’s license. The increase is necessary to defray the cost of issuing the license. This will benefit the consumer by ensuring that licenses are issued in a timely manner. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.20(h)(1) is expected to have an economic cost to persons/businesses of an additional $50 for the habitability inspection on a home which is to be titled for use as a residence after the title has been previously canceled to business use or to become real property. The increase is necessary to defray the cost of conducting the inspection. This will benefit the consumer by ensuring the home is safe for use as a residence and that the inspections are conducted in a timely manner. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.20(h)(2) is expected to have an economic cost to persons/businesses of an additional $75 for the plan review and inspection of a salvaged home which is to be rebuilt to determine if the home is habitable for reinstatement of the title. The increase is necessary to defray the cost of conducting the plan review and the inspection. This will benefit the consumer by ensuring the home is safe for use as a residence and that the inspections are conducted in a timely manner. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.20(i)(1) is expected to have an economic cost to persons/businesses of an additional $50 for the initial consumer complaint inspection when requested by a license holder or party other than a consumer. The increase is necessary to defray the cost of conducting the inspection. This will benefit the consumer by ensuring the home is or will be repaired to meet HUD-Code Standards and that the inspections are conducted in a timely manner. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.20(i)(2) is expected to have an economic cost to persons/businesses of an additional $50 for the reinspection of a consumer’s home. The increase is necessary to defray the cost of conducting the inspection. This will benefit the consumer by ensuring the home is or will be repaired to meet HUD-Code Standards and that the inspections are conducted in a timely manner. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.202(a)(1) is expected to have an economic cost to persons/businesses of an additional $20 for each title transaction. The increase is necessary to defray the cost of title issuance. This will benefit the consumer by ensuring that titles are issued in a timely manner. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.202(a)(2) is expected to have an economic cost to persons/businesses of an additional $50 to provide a certification form for a home that is permanently affixed. The increase is necessary to defray the cost of conducting installation inspections. This will benefit the consumer by ensuring that the home is installed properly. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.202(a)(3) is expected to have an economic cost to persons/businesses of an additional $20 for Quick Title Service. The increase is necessary to defray the cost of title issuance. This will benefit the consumer by ensuring titles are issued in a timely manner. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Section 80.202(e) is expected to have an economic cost to persons/businesses of an additional $10 for a title search. The increase is necessary to defray the cost of conducing title searches. This will benefit the consumer by ensuring title searches are conducted in a timely manner. There are expected to be no fiscal implications for units of local government as a result of enforcing or administering the section.

Comments may be submitted to Mr. Tim Irvine, Deputy Executive Director of the Manufactured Housing Division, of the Texas Department of Housing and Community Affairs, P. O. Box 12489, Austin, Texas 78711-2489 or by e-mail at the following address tirvine@tdhca.state.tx.us. The deadline for comments is 30 days after publication in the Texas Register .

Subchapter C. FEE STRUCTURE

10 TAC §80.20

The amendment is proposed under the Texas Manufactured Housing Standards Act, Subtitle C, Occupations Code, 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 proposed amendment.

§80.20.Fees.

(a) Annual License Fees and Renewal Fees:

(1) $425 for each manufacturer's plant license;

(2) $275 for each retailer's sales license;

(3) $275 for each rebuilder's license;

(4) $175 for each broker's license;

(5) $175 for each installer's license; and

(6) $100 for each salesperson's license.

(b) Installation Fees:

(1) There is a reporting fee of $100 [ $20 ] for the installation of each manufactured home which is not installed on a permanent foundation.

(2) There is a reporting fee of $150 [ $100 ] for the installation of a manufactured home permanently affixed to real estate or on a permanent foundation.

(3) Installation fees shall be submitted to the department as follows:

(A) When the installation occurs in conjunction with a title transfer, the fee must be submitted to the department along with the application for title and the Notice of Installation Affidavit; or

(B) For secondary moves (when there is no title transfer), the fee must be submitted to the department along with a completed Notice of Installation Affidavit within ten (10) working days following the installation date.

(4) Fee distributions to local governmental entities performing inspection functions pursuant to contract with the department shall be made in accordance with department procedures and the provisions of the contract.

(c) Alteration Fee: There is a fee of $60 [ $30 ] per hour or a minimum fee of $60 [ $30 ] for the inspection of alterations made upon the structure, plumbing, heating, or electrical systems of manufactured homes. The fee is paid to the department by the person making the alterations. The person shall also reimburse the department for mileage and per diem incurred by department personnel to and from the place of inspection.

(d) Seal Fee: There is a fee of $35 [ $15 ] for the issuance of Texas Seals. Any person who sells, exchanges, lease purchases, or offers for sale, exchange, or lease purchase a used HUD-Code manufactured home manufactured after June 15, 1976, that does not have a HUD label affixed, or a used mobile home manufactured prior to June 15, 1976, that does not have a Texas Seal affixed shall file an application to the department for a Texas Seal. The application shall be accompanied by the seal fee of $35 [ $15 ] per section made payable to the department.

(e) Monitoring Fee: There is a fee, as required by HUD, to be paid by each manufacturer in this state for each HUD-Code manufactured home produced. The monitoring inspection fee is established by the secretary of HUD, (pursuant to 24 CFR §3282.307) who shall distribute the fees collected from all manufacturers among the approved and conditionally approved states based on the number of new homes whose first location after leaving the manufacturing plant is on the premises of distributor, retailer, or purchaser in that state, and the extent of participation of the state in the joint monitoring program established under the National Manufactured Housing Construction and Safety Standards Act of 1974.

(f) Homeowner's Temporary Installer's License: There is a fee of $100 [ $40 ] for the issuance of a homeowner's temporary installer's license, which shall also include the cost of the installation inspection. The fee shall be made payable to the department.

(g) Education Fee: Each attendee at the course of instruction in the law and consumer protection regulations for license applicants shall be assessed a fee of $250. If a manufacturer requests the training be performed at his or her facility, the manufacturer shall reimburse the department for the actual costs of the training session (educational fee plus actual cost of travel).

(h) Habitability Inspection:

(1) There is a fee of $150 [ $100 ] for the inspection of a manufactured home which is to be titled for use as a residence after the title has been previously canceled for business use or to become real estate. The inspection is to determine if the home is habitable as defined by §8 of the Standards Act. The fee shall accompany a Form A to apply for reinstatement of the title along with those documents set forth in §80.207 of this title (relating to Reinstatement of Canceled Documents of Title). The person requesting the inspection for the use change of a manufactured home shall be charged for mileage and per diem incurred by department personnel traveling to and from the location of the manufactured home. The inspector shall advise the consumer of the charges incurred and no title shall be issued until all fees have been paid.

(2) There is a fee of $200 [ $125 ] for the plan review and inspection of a salvaged manufactured home which is to be rebuilt to determine if the home is habitable for reinstatement of the title. The fee shall accompany a written request for the inspection. The rebuilder shall also be charged for mileage and per diem incurred by department personnel traveling to and from the location of the home. See §80.66 of this title (relating to Rebuilding or Repairing a "Salvaged" Manufactured Home). The inspector shall advise the rebuilder of the charges incurred and no title shall be issued until all fees have been paid.

(i) Consumer Complaint Inspection:

(1) There is a fee of $150 [ $100 ] for the initial inspection of a consumer's home in accordance with a consumer complaint when requested by a license holder or party other than a consumer. The fee shall accompany a written request for the inspection.

(2) There is a fee of $150 [ $100 ] for the reinspection of a consumer's home. The fee shall be paid by the party deemed responsible by the department.

(j) Titles: Fees relating to titles and title transactions are set forth in §80.202 of this title (relating to Fees for Title Documents).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 16, 2003.

TRD-200303668

Tim Irvine

Deputy Executive Director, Manufactured Housing Division

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: July 27, 2003

For further information, please call: (512) 475-2206


Subchapter G. TITLING

10 TAC §80.202

The amendment is proposed under the Texas Manufactured Housing Standards Act, Subtitle C, Occupations Code, 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 proposed amendment.

§80.202.Fees for Title Documents.

(a) Title Transaction Fees.

(1) There shall be a fee of $55 [ $35 ] for each title transaction. The fee shall be submitted in the form of a cashier's check or money order payable to the Texas Department of Housing and Community Affairs. The fee shall accompany the required documents forwarded to the Manufactured Housing Division of the department at its principal office in Austin. Ten dollars of the fee for each title transaction shall be deposited in the HORF. A title transaction is the issuance, reissuance, reinstatement, cancellation or recordation of:

(A) a document of title;

(B) Certificate of Attachment;

(C) a salvage title;

(D) a Manufacturer's Certificate of Origin;

(E) the filing of an inventory financing lien;

(F) the filing of foreclosure documents or a repossession affidavit; and

(G) the recording of a transfer of ownership from a lienholder to or through a retailer.

(2) There shall be a separate filing fee of $150 [ $100 ] when a certification form is provided for a home that is permanently affixed.

(3) There shall be a separate transaction fee of $55 [ $35 ] for Quick Title Service related to the issuance of titles in addition to the $55 [ $35 ] for each title transaction. Quick Title Service shall be defined as the processing of the documents related to a title transfer within three (3) working days from the day the application is received in the Manufactured Housing Division. Title transfer documents must be received in good order in the department's manufactured housing division in Austin for the issuance of a manufactured housing title on a Quick Title Service basis. Title transfer documents which are not in good transfer order or which are incomplete will be returned to the sender, and the title application will be processed within three (3) working days from the date that correct and completed documents are received. All quick title applications must be submitted by overnight mail or delivered in-person.

(b) If a correction of a document is required as a result of a mistake by the department, the issuance of a new document shall not require a fee.

(c) All persons licensed with the department as a manufacturer, retailer, broker, or installer may submit company or business firm checks in payment of any fee described herein. All state or federally chartered banks, savings banks or savings institutions and all commercial lenders or mortgage bankers who extend credit for the retail purchase of manufactured homes may also pay any fees with company or business firm checks at the discretion of the department. All checks shall be made payable to the Manufactured Housing Division of TDHCA.

(d) One check may be submitted in payment of the aggregate fees for multiple transactions or the issuance of more than one document. When multiple applications are submitted, a form prescribed by the department must be included which shall identify each application and reconcile the fee for each application with the total amount of the check.

(e) There shall be a fee of $20 [ $10 ] for any title search which shall be paid to the department by the requesting party in the form of a cashier's check or money order. The request must be in writing and must state the specific information being requested.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 16, 2003.

TRD-200303669

Tim Irvine

Deputy Executive Director, Manufactured Housing Division

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: July 27, 2003

For further information, please call: (512) 475-2206