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Posts Tagged ‘exemption’

The RV Industry is Attempting to Amend the HUD Manufactured Housing Code

May 28th, 2014 No comments

The Recreational Vehicle Industry Association (RVIA) is pushing a proposal through the U.S. Congress to change the definition of manufactured home in the National Manufactured Home Construction and Safety Standards Act.  The proposed change would specifically exclude certain “RV trailers,” including Park Model RVs, from the definition of a manufactured home in the federal HUD Code.

The stated purpose of the proposed change is to provide regulatory certainty to lenders, state or local taxation and land use officials that a Park Model RV is a recreational vehicle, not a manufactured home.

Their urgency for this change is that some lenders are apprehensive about making Park Model RV loans in light of the new Dodd-Frank Act requirements.

A concern with the language, as proposed, is that it may allow ANSI Park Model RVs to expand beyond the current 400 square foot size limitation. 

This would be harmful to the HUD-Code RV Park Model industry in states like Florida by encouraging the sale of ANSI Park Models that exceed 400 square feet.

The proposed amendment states, “a park model RV that has a gross area not greater than 400 square feet based on the exterior dimensions of the unit measured at the largest horizontal projections in the set-up mode, including all floor space that has a ceiling height of more than 5 feet” (emphasis added). 

The ceiling height language was inserted to codify a 1997 HUD interpretation that loft areas which are less than 5’0” in height are not considered in determining the size of the structure. The proposed language does not limit the ceiling height exclusion to loft areas, thus allowing for the possibility of “slide-out rooms” or “build-outs” less than 5 feet high.

RVIA is emphatic that the intent is not to increase the size of ANSI Park Model RVs.

According to RVIA, concerns about enlarging the size of Park Model RVs are unfounded because specific rules are in place to measure the size and calculate the square footage of Park Model RVs. Additionally, Park Model RVs are built to standards administered by the American National Standards Institute (ANSI), a national voluntary consensus body. The ANSI A119.5 standards would have to be amended to allow for larger structures.

While these safeguards are in place today, the statute will drive future requirements. If the federal law is ambiguous enough to assert that larger ANSI RV Park Models are allowed, then the rules will change to accommodate this view. 

The RVIA is working hard to get this amendment accomplished during the 2015 HUD appropriations process. RVIA is not looking for industry support, but rather seeks to quell any opposition.

MHI has taken a neutral position on the proposal, while MHARR is adamantly opposed to it.

This proposed change to the National Manufactured Home Construction and Safety Standards Act will have a negative impact on the HUD-Code Park Model industry in Florida. Most Park Models are permanently sited and larger ANSI Park Model RVs will encourage permanent, year round living. ANSI Park Model RVs are designed and intended for recreational use and seasonal living only and are not built to the more stringent HUD building code.

The Florida Manufactured Housing Association (FMHA) has asked RVIA to consider amending its proposal to specify that the 5 foot ceiling height exemption applies to loft areas only. This will ensure that ANSI Park Model RVs are not built in excess of 400 square feet.

Reasserting the current size restriction in the proposed amendment will satisfy the RV industry’s objective of clarifying the differences between ANSI Park Model RVs and HUD manufactured homes for financing and land use purposes, while promoting ANSI Park Model RVs as a desirable option for recreational and seasonal accommodations. ##

james-ayotte-Florida-Manufactured-Housing-Association-posted-on-mhpronewsJames R. Ayotte, CAE
Executive Director
Florida Manufactured Housing Association
3606 Maclay Blvd. South – Suite 200
Tallahassee, FL 32312
Ph:(850) 907-9111
F:850) 907-9119
jayotte@fmha.org
www.fmha.org

ObamaCare: A Different Perspective

December 5th, 2013 No comments

As a retailer for over 30 years and having operated 15 or so locations, I have lost a few sales per year per dealership due to potential buyers having filed personal bankruptcies in the prior 7-14 years.  Most were due to un-insured medical expenses.

A 2007 Harvard study bears me out.  "Half of U.S. bankruptcies, affecting 2 million people annually, were attributable to illness or medical bills." An article by CNN in '09 raises that percentage to 60%.  Medically related bankruptcies have been rising steadily, up from 8% in 1981 (Businessweek).

ObamaCare – with all it's flaws – is designed to eliminate medical bankruptcy by insuring all without exemptions or caps for catastrophic illness.  What is so bad about that concept?

Just think what 3 -5 more sales per year per retailer would add up to, nationally! 

On top of that, all the site builders would also sell more homes.  Every non-commercial real estate agent would sell more existing homes and their sellers could buy a new home!

Multiply all this out, and you have thousands upon thousands of homes built and sold plus the jobs they create, and the trickle down effect on suppliers, lenders, etc.

It is just a fact that ObamaCare – if tweaked and successful – will be good for housing. I don't care about Olive Garden, I care about the Manufactured Housing Industry! 

Dodd/Frank is the looming disaster for housing, not ObamaCare.

frank-woody-republic-manufactured-homes-texas-credit-azlenews-posted-mhpronews-industry-voices-guest-blog-.pngFrank Woody, Owner
Republic Homes
Texas

(Editor's Note1: Frank Woody (r). Photo Credit azlenews. Frank is too modest to do this himself, so we are posting this for him! Weatherford Police Chief Manning presents an award to Frank Woody for going above and beyond to help law enforcement by providing them a place to conduct training.)

(Editor's Note2: this commentary by Frank Woody came as his 'reply' to the article linked below. His comments above are published at his request.)

http://www.MHProNews.com/home/industry-news/industry-in-focus/6659-dodd-frank-fix-hr-1779-preserving-access-to-manufactured-housing-act-of-2013-achieves-growing-bi-partisan-support- )

MHI 2013 Annual Meeting Recap

October 10th, 2013 No comments

IMHA Executive Director Mark Bowersox attended the Manufactured Housing Institute’s (MHI) annual meeting held September 28 – October 1 in Carlsbad, CA. As with most recent industry meetings, speakers and conversations at the event were focused on the impact of the Dodd-Frank consumer protection legislation and reforming the CFPB’s upcoming regulations. MHI and other industry representatives continue to work with the CFBP on three key areas:

Exemption for manufactured housing appraisal requirements

Based on the most recent rules issued by the CFPB loans on all new manufactured homes, regardless of whether or not they included land, are exempt from the appraisal requirement. Loans on existing manufactured homes, not including land, are also exempt from the appraisal requirements. Additionally, all mobile homes (pre-HUD code) home loans are exempt. The CFPB’s rule solidifying these exemptions is still pending. When finalized the rule will go into effect in January.

Key rule clarifications and exclusions

Loan originator compensation guidelines issued by the CFPB this summer provide the industry with key exclusions from the points and fees calculation that lenders must perform and clarifies certain activities that retail sales staff can engage in without being defined as loan originators.

Manufactured home sales price is excluded from the points and fees definition and does not have to be included in calculations performed by lenders unless a creditor has knowledge that the sales price includes compensation for loan origination activities.

 

Retail sales commissions paid to employees is excluded from points and fees calculation requirements unless the salesperson is receiving compensation from a lender for loan origination activities.

According to MHI, activities that do not classify a retailer or its sales personnel as loan originators include:

  • Providing or making available general information about creditors and loan originators that may offer financing for manufactured housing
  • Gathering or collecting supporting information or documentation on behalf of a consumer for inclusion in a credit application
  • Providing general credit application instructions so that a consumer can complete it themselves
  • Financing the sale of no more than three homes in a year.

Activities that will make a retail employee be considered a loan originator include:

  • Filling out a credit application for a customer
  • Discussing particular credit terms with a customer
  • Directing or influencing a customer to select a particular lender or creditor

MHI continues to seek from the CFPB to provide further clarification on what activities retailers can engage in without being defined as loan originators.

MHI is still working with the CFPB and various consumer interest groups on the need to revise the upcoming High Cost Mortgage Loan triggers for manufactured home loans. IMHA will continue to be engaged on this issue, along with MHI and other interested parties. ##

mark-bowersox-imha-posted-industry-voices-guest-blog-mhpronews.com-75x75pxl-.pngMark Bowersox
Executive Director
Indiana Manufactured Housing Association
Recreation Vehicle Indiana Council
3210 Rand Road
Indianapolis, IN  46241

(Editor's Note: You can find more info on the LO Comp Rule and HOEPA from DJ Pendelton's article published in the Industry In Focus Reports module, linked here.

 

You can also find Mark Bowersox's “It's Now or Never” featured article, linked here. )

Follow-up to May 26 Housing Alert

May 27th, 2010 No comments

This Industry Voices post is a follow-up to the May 26 MHI Housing Alert.

MHI members have been working hard on issues related to the SAFE Act, both on the national level and the state level for almost two years, and we appreciate all of your efforts leading up to this point. Based upon some questions MHI is receiving about the Housing Alert of May 26 on the SAFE Act and H.R. 5369, I want to emphasize that the proposed legislation does not seek an outright exemption for retailers of manufactured and modular homes. The language in H.R. 5369 is intended to exempt activities which are administrative and clerical in nature that facilitate the sale of a home to a consumer such as assisting customers in completing paperwork by answering questions, etc. Language in the SAFE Act as originally passed by Congress in 2008 should have accomplished this goal, however, as we all know, the model legislation developed for the states canceled out this exemption.

Initially, our strategy was to advocate for an outright exemption, but Members of Congress indicated that this was not an option. They clearly communicated that the intent of the SAFE Act was to regulate the activities of individuals, not specific professions. The introduction of H.R. 5369 is an important step in bringing the influence of Congressional leadership into the process and will serve as a tool to elevate the need for clarification and relief for this industry before both Congress and HUD. The bill, in combination with over 5,000 comment letters submitted on the proposed rule to implement the SAFE Act, will assist MHI members and states in accomplishing the goal of allowing clerical and administrative tasks to be exempt activities under the SAFE Act.

If you have any questions, please contact us.

Thayer


Thayer Long | Manufactured Housing Institute
2111 Wilson Blvd. Suite 100 | Arlington, VA 22201
Phone: (703) 558-0678 | Fax: (703) 558-0401 | Email: tlong@mfghome.org

Editor’s Note: The Capitol Switchboard, (202) 224-3121 or use:http://www.usa.gov/Contact/Elected.shtml