PART 3288—MANUFACTURED HOME DISPUTE RESOLUTION PROGRAM Authority: 42 U.S.C. 3535(d), 5422 and 5424. Source: 72 FR 27229, May 14, 2007, unless otherwise noted. Subpart A—General § 3288.1 Purpose and scope. (a) Purpose. (b) Scope Applicability. (2) Warranties not affected. § 3288.3 Definitions. The following definitions apply in this part: Act Appropriate order Date of installation Day Defect Dispute resolution provider Homeowner HUD Installer Manufactured home Manufactured Housing Consensus Committee or MHCC Party or parties State Administrative Agency Timely reporting Timely resolution § 3288.5 Retailer notification at sale. Retailer notice at the time of signing. The U.S. Department of Housing and Urban Development (HUD) Manufactured Home Dispute Resolution Program is available to resolve disputes among manufacturers, retailers, or installers concerning defects in manufactured homes. Many states also have a consumer assistance or dispute resolution program. For additional information about these programs, see sections titled “Dispute Resolution Process” and “Additional Information—HUD Manufactured Home Dispute Resolution Program” in the Consumer Manual required to be provided to the purchaser. These programs are not warranty programs and do not replace the manufacturer's, or any other person's, warranty program. Subpart B—HUD Manufactured Home Dispute Resolution Program in HUD-Administered States § 3288.10 Applicability. The requirements of the HUD Manufactured Home Dispute Resolution Program established in this subpart B apply in each state that does not establish a state dispute resolution program that complies with the Act and has been accepted by HUD as provided in subpart D of this part. § 3288.15 Eligibility for dispute resolution. (a) Initiation of actions. (b) Eligible disputes. § 3288.20 Reporting a defect. (a) Making a report. (b) Form of report. (c) Content of report. (d) Record of report To evidence timeliness. (2) Obligation to retain. (e) Reports made to a State Administrative Agency. http://www.hud.gov. (f) Reports made to HUD. (1) In writing at: HUD, Office of Regulatory Affairs and Manufactured Housing, Attn: Dispute Resolution, 451 Seventh Street, SW., Washington, DC 20410-8000; (2) By telephone at: (202) 708-6423 or (800) 927-2891; (3) By fax at: (202) 708-4213; or (4) By e-mail at [email protected]. (g) Effect of report. § 3288.25 Initiation of dispute resolution. (a) Preliminary effort. (b) Request for dispute resolution. (1) By mailing, e-mailing, or otherwise delivering a written request for dispute resolution to the dispute resolution provider at the address or e-mail address provided either at http://www.hud.gov, (2) By faxing a request for dispute resolution to the fax number provided either at http://www.hud.gov, (3) By telephoning a request for dispute resolution to the number provided either at http://www.hud.gov, (c) Requested information. (1) The name, address, and contact information of the homeowner; (2) The name and contact information of the manufacturer, retailer, and installer of the manufactured home, to the extent available; (3) The date the report of the alleged defect was made; (4) The name and contact information of the recipient or recipients of the report of the alleged defect; (5) The date of installation of the manufactured home affected by the alleged defect; and (6) A description of the alleged defect. § 3288.30 Screening of dispute resolution request. (a) Review for sufficiency. (b) Insufficient information. (c) Denial of a dispute. (d) Determination of unreasonable risk. § 3288.33 Notice of dispute resolution. (a) Once the screening neutral determines that a defect is properly alleged and timely reported, notice about the request will be forwarded to the parties by overnight delivery, commercial carrier, or fax. (b) If the parties have not initiated the Alternative Process in accordance with § 3288.105 of this part within 7 days of the screening neutral's notification, the screening neutral will refer the matter to mediation. § 3288.35 Mediation. (a) Mediator. (b) Time For reaching settlement. (2) Alleged defects presenting an unreasonable risk of injury, death, or significant loss or damage to valuable personal property. (3) For corrective repairs. (c) Denial of dispute. (d) Written settlement agreement. (2) Sample agreements will be made available to the parties as drafting guidance by the dispute resolution provider. (e) Failure of mediation. (f) Confidentiality. et seq. § 3288.40 Nonbinding arbitration. (a) When initiated. (2) In addition, arbitration may be initiated upon referral by the mediator pursuant to § 3288.35(c). (b) Written request Submission to HUD. http://www.hud.gov (2) Contents of request. (i) The name and address of the party making the request; (ii) A brief description of the alleged defect or a copy of the report of the alleged defect; and (iii) A copy of the request for dispute resolution. (c) Appointment and authority of arbitrator. (1) Set hearing dates and deadlines; (2) Conduct on-site inspections; (3) Issue requests for documentation and information necessary to complete the record; (4) Dismiss frivolous allegations; (5) Make proposed findings, including findings of defect and culpability and a disposition recommendation to HUD; and (6) Recommend apportionment of the responsibility of paying for or providing any correction or repair of the home when recommending that culpability be assessed to more than one party. (d) Denial of dispute. (e) Notice to parties. (f) Proceedings. (2) If any party wants to request an in-person hearing, in which the parties or their representatives may personally appear before the arbitrator, the arbitrator will consider such a request if it is made by all of the parties that are participating in the arbitration. Such an in-person hearing will be held at the discretion of the arbitrator, after considering appropriate factors, such as cost. (g) Effect on nonparticipating parties. (h) Completion of arbitration. (2) Unless an extension is granted for good cause by HUD, the arbitrator, within 21 days of the dispute resolution provider's receipt of the request for arbitration, will provide the parties with a copy of the nonbinding recommendation that was delivered to HUD, in accordance with § 3288.40(h)(1). (i) Settlement offers. § 3288.45 HUD review and order. (a) Appropriate order. (b) Contents of order. (1) Assignment of responsibility for the correction and repair of all defects and associated costs; and (2) If the manufacturer, retailer, or installer is responsible for corrective action, a date by which the correction and repair of each defect must be completed, taking into consideration the seriousness of the defect. (c) Failure to comply. Subpart C—Alternative Process in HUD-Administered States § 3288.100 Scope and applicability. The requirements of this subpart C may be followed in lieu of the requirements of subpart B of this part to resolve disputes among manufacturers, retailers, and installers of manufactured homes in any state where subpart B of this part would otherwise apply. In limited circumstances, this subpart C permits manufacturers, retailers, and installers of manufactured homes to use neutrals of their choosing to resolve disputes concerning alleged defects in manufactured homes. § 3288.105 Time when Alternative Process is available. (a) The Alternative Process may be invoked after an alleged defect has been reported, pursuant to § 3288.15(b). However, the Alternative Process may not be invoked more than 7 days after notification of a request for dispute resolution has been received by all of the parties. The notification must be delivered by overnight delivery, commercial carrier, or fax by the screening neutral, in accordance with § 3288.30. If within 7 days of the receipt of notification, the Alternative Process is not initiated, the screening neutral will refer the matter to the mediator. Once the Alternative Process is invoked, neither the parties nor the homeowner may invoke the Mediation and Arbitration Process in the HUD Manufactured Home Dispute Resolution Program for 30 days. (b) No particular form or format is required to provide notification for the Alternative Process, but the party or parties submitting the notification must include a statement from the parties participating in the Alternative Process stating that the homeowner is not responsible for the alleged defect and that one or more of the parties will correct or repair the defect. All required agreements are set forth in § 3288.110 of this part. The parties must also make reasonable efforts to include the following information in the notification: (1) Identification of the case; and (2) Identification of the parties participating in the Alternative Process. (c) The screening neutral will notify the parties if the case is referred to the Alternative Process for resolution. § 3288.110 Alternative Process agreements. (a) Required agreement. (1) That there is a defect in the manufactured home; (2) That the manufacturer, retailer, or installer is responsible for the defect; (3) That the homeowner is not responsible for the defect; (4) To engage a neutral to evaluate the dispute and make an assignment of responsibility for correction and repair; and (5) To notify the homeowner of, and allow the homeowner to be present at, any meetings and to inform the homeowner of the outcome. (b) Additional element of agreement. Subpart D—State Dispute Resolution Programs in Non-HUD Administered States § 3288.200 Applicability. This subpart D establishes the minimum requirements that must be met by a state to implement its own dispute resolution program and therefore not be covered by the HUD Manufactured Home Dispute Resolution Program established in accordance with subpart B. The subpart also establishes the procedure for determining whether the state dispute resolution program meets the requirements of the Act for operating in lieu of the HUD Manufactured Home Dispute Resolution Program. § 3288.205 Minimum requirements. (a) List of requirements. (1) The timely resolution of disputes among manufacturers, retailers, or installers regarding responsibility for correction and repair of defects in manufactured homes; (2) The issuance of appropriate orders for correction and repair of defects in such homes; (3) A coverage period for disputes that includes at least defects that are reported within 1 year after the date of first installation; and (4) Adequate funding and personnel. (b) Applicability to programs in state plans. (2) After February 8, 2008, a state that submits a state plan for approval in accordance with § 3282.302 of this chapter must provide for the requirements of paragraphs (a)(1) through (3) of this section in its state plan. § 3288.210 Acceptance and recertification process. (a) Submission of certification. [email protected]. (b) HUD review and action. (2) A notice of acceptance will include the date of acceptance. (3) If HUD rejects a state's dispute resolution program, HUD will provide an explanation of what is necessary to obtain full acceptance. A revised Dispute Resolution Certification Form may be submitted within 30 days of receipt of such notification. If the revised Dispute Resolution Certification Form is inadequate or if the state fails to resubmit within the 30-day period or otherwise indicates that it does not intend to change its Dispute Resolution Certification Form, HUD will notify the state that its dispute resolution program is not accepted and that it has a right to a hearing on the rejection using the procedures set forth under subpart D of part 3282 of this chapter. (c) Conditional acceptance. (d) Revocation. (e) Recertification of a program not included in state plan. (1) Every 3 years within 90 days of the day and month of the most recent date of HUD's acceptance of the state's program or (2) Whenever there is a significant change to the program. (f) Inclusion in state plan. § 3288.215 Effect on other manufactured home program requirements. A state with an accepted dispute resolution program will operate in lieu of HUD's Manufactured Home Dispute Resolution Program established under subpart B of this part 3288. A state dispute resolution program, even if it is an accepted dispute resolution program under this part, does not supersede the requirements applicable to any other aspect of HUD's manufactured home program. Any responsibilities, rights, and remedies applicable under the Manufactured Home Construction and Safety Standards in part 3280 of this chapter and the Manufactured Home Procedural and Enforcement Regulations in part 3282 of this chapter continue to apply as provided in those parts in all states. Subpart E—Dispute Resolution Program Rulemaking Procedures § 3288.300 Applicability. This subpart establishes special regulatory procedures for issuing or revising dispute resolution program regulations as codified in this part. § 3288.305 Consultation with the Manufactured Housing Consensus Committee. HUD will seek input from the MHCC when revising the HUD Manufactured Home Dispute Resolution Program regulations in this part 3288. Before publication of a proposed rule to revise these regulations, HUD will provide the MHCC with an opportunity to comment on such revision. The MHCC may send to HUD any of the MHCC's own recommendations to adopt new dispute resolution program regulations or to modify or repeal any of the regulations in this part. Along with each recommendation, the MHCC must set forth pertinent data and arguments in support of the action sought. HUD will either: accept or modify the recommendation and publish it for public comment in accordance with section 553 of the Administrative Procedure Act (5 U.S.C. 553), along with an explanation of the reasons for any such modification; or reject the recommendation entirely, and provide to the MHCC a written explanation of the reasons for the rejection. This section does not supersede section 605 of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5404).