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(c) There are two types of primary inspection agencies which perform these functions:

(1) those which approve designs and quality control programs (Design Approval Primary Inspection Agencies--DAPIAs) and

(2) those which approve plants and perform ongoing inspections in the manufacturing plants (Production Inspection Primary Agencies--IPIAs).

(d) States and private organizations whose submissions under this subpart are acceptable shall be granted provisional acceptance. Final acceptance shall be conditioned upon adequate performance, which will be determined through monitoring of the actions of the primary inspection agencies. Monitoring of all primary inspection agencies shall be carried out as set out in Subpart J. HUD accepted agencies can perform DAPIA functions for any manufacturer in any State and IPIA functions in any State except those in which the State has been approved to act as the exclusive IPIA under 3282.352.

(e) Primary inspection agencies approved under this subpart may contract with mobile home manufacturers (see 3282.202) to provide the services set out in this subpart. Any PIA which charges fees which are excessive in relation to the services rendered shall be subject to disqualification under 3282.356.

3282.352. State Exclusive IPIA Functions.

(a) Any State which has an approved State Administrative Agency may, if accepted as an IPIA, act as the exclusive IPIA within the State. A State which acts as an IPIA but is not approved as an SAA may not act as the exclusive IPIA in the State. A State which acts as an exclusive IPIA shall be staffed to provide IPIA services to all manufacturers within the state and may not charge unreasonable fees for those services.

(b) State which wish to act as exclusive IPIAs shall apply for approval to do so in their State plan applications. They shall specify the fees they will charge for IPIA services and shall submit proposed fee revisions to the Secretary prior to instituting any change in fees. If at any time the Secretary finds that those fees are not commensurate with the fees generally being charged for similar services, the Secretary will withhold or revoke approval to act as an exclusive IPIA. States acting as DAPIAs and also as exclusive IPIAs shall establish separate fees for the two functions and shall specify what additional services (such as approval of design changes and full time inspections) these fees cover. As provided in 3282.302(b)(II), each State shall submit fee schedules for its activities and, where appropriate, the fees presently charged for DAPIA and IPIA services, and any fees charged for DAPIA and IPIA services during the preceding two calendar years.

(c) A State's status as an exclusive IPIA in the State shall commence upon approval of the State Plan Application and acceptance of the State's submission under 3282.355, except as provided herein. Where a State was approved to provide IPIA functions under the Title I program, the State's status as an exclusive IPIA shall commence on the date the State submits to the Secretary a statement that it intends to act as an exclusive IPIA, but only if it affirms that the State has the present capacity to provide IPIA services for all manufacturing plants in the State. If the State indicates its desire to act as an exclusive IPIA, though it does not have the present capacity to do so, but affirms that it will within 90 days have the capacity to provide IPIA services to all manufacturers in the State, then the State's status as an exclusive IPIA shall commence on the date the state affirms it will have such capacity. Continuation of such a State's status as an exclusive IPIA is conditioned upon submittal of the State Plan Application as required by 3282.302(e) and upon final approval of that application. It is also conditioned upon the State adequately fulfilling its affirmation to provide IPIA services to all manufacturing plants in the State. Where a private organization accepted or provisionally accepted as an IPIA under this Subpart operating in a manufacturing plant within the State on the date the State's status as an exclusive IPIA would commence under this paragraph, the organization may provide IPIA services in that plant for 90 days after that date.

3282.353. Submission Format.

States and private organizations which wish to act as primary inspection agencies shall submit to the Director, Office of Mobile Home Standards, Department of Housing and Urban Development, 451 Seventh St., S.W., Washington, D.C. 20410, an application which includes the following:

(a) A cover sheet which shall show the following:

(1) Name and address of the party making the application;

(2) The capacity (DAPIA, IPIA) in which the party wishes to be approved to act;

(3) A list of the key personnel who will perform the various functions required under these regulations;

(4) The number of mobile home manufacturers and manufacturing plants for which the submitting party proposes to act in each of the capacities for which it wishes to be approved to act;

(5) The estimated total number of mobile homes produced by those manufacturers and in those plants per year;

(6) The number of years the propose primary inspection agency has been actively engaged in the enforcement of mobile home standards;

(7) A certification by the party applying that it will follow the Federal Mobile Home Construction and Safety Standards set out at 24 CFR Part 280 and any interpretations of those standards which may be made by the Secretary; and

(8) Whether the submitting party is approved to act as a primary inspection agency under the Title I program, and if so, in what capacity.

(b) A detailed schedule of fees to be charged broken down by the services for which they will be charged.

(c) A detailed description of how the submitting party intends to carry out all of the functions for which it wishes to be approved under this subpart, with appropriate cross-references to sections of this subpart, including examples and complete descriptions of all reports, tests, and evaluations which the party would be required to make. Where appropriate, later sections of this subpart identify particular items which must be included in the submission. The Secretary may request further detailed information, when appropriate.

(d) A party wishing to be approved as a DAPIA shall submit a copy of a mobile home design that it has approved (or if it has not approved a design, one that it has evaluated and a deviation report showing where the design is not in conformance with the standards) and a copy of a quality assurance manual that it has approved (or if it was not approved a manual, one that it has evaluated and a deviation report showing where the manual is inadequate).

(e) A party wishing to be approved as an IPIA shall submit a copy of a certification report which it has prepared for a mobile home plant or, if it has not prepared such a report, an evaluation of a manufacturing plant which it has inspected with a description of what changes shall be made before a certification report can be issued. A party that has not previously inspected mobile homes may nevertheless be accepted on the basis of the qualifications of its personnel and its commitment to perform the required functions.

(f) A primary inspection agency which has been approved under the Title I program, shall submit a statement reaffirming all commitments made under Title I, names and resumes of new key personnel, a certification that it will enforce the standard in accordance with these regulations, and a statement of fees as required by 3282.353(b).

3282.354. Submittal of False Information or Refusal to Submit Information.

The submittal of false information or the refusal to submit information required under this subpart may be sufficient cause for the Secretary to revoke or withhold acceptance.

3282.355. Submission Acceptance.

(a) A party whose submission is determined by the Department to be adequate shall be granted provisional acceptance until December 15, 1976, or for a six months period from the date of such determination, whichever is later.

(b) A party that has been accepted as a primary inspection agency under the Title I program shall be granted provisional acceptance for 30 days as of the effective date of these regulations. This provisional acceptance shall be extended to December 15, 1976, when the submission required by 3282.353(f) has been made, within 30 days of the effective date of these regulations.

(c) Final acceptance of a party to act as a primary inspection agency will be contingent upon adequate performance during the period of provisional acceptance as determined through monitoring carried out under Subpart J and upon satisfactory acceptance under 3282.361(e) or 3282.362(e). Final acceptance shall be withheld if performance is inadequate.

(d) Continued acceptance as a primary inspection agency shall be contingent upon continued adequacy of performance as determined through monitoring carried out under Subpart J. If the Secretary determines that a primary inspection agency that has been granted final acceptance is performing inadequately, the Secretary shall suspend the acceptance, and the primary inspection agency shall be entitled to a hearing or presentation of views as set out in Subpart D of this part.

3282.356. Disqualification and Requalification of Primary Inspection Agencies.

(a) The Secretary, based on monitoring reports or other reliable information, may determine that a primary inspection agency which has been accepted under this subpart is not adequately carrying out one or more of its required functions. In so doing, the Secretary shall consider the impact of disqualification on manufacturers and other affected parties and shall seek to assure that the manufacturing process is not unnecessarily disrupted thereby. Whenever the Secretary disqualifies a primary inspection agency under this section, the primary inspection agency shall have a right to a hearing or presentation of views under Subpart D of this part.

(b) Interested persons may petition the Secretary to disqualify a primary inspection agency under the provisions of 3282.156(b).

(c) A primary inspection agency which has been disqualified under paragraph (a) may resubmit an application under 3282.353. The submission shall include a full explanation of how problems or inadequacies which resulted in disqualifications have been rectified and how the primary inspection agency shall assure that such problems shall not recur.

(d) When appropriate, the Secretary shall publish in the Federal Register or otherwise make available to the public for comment a disqualified PIA's application for requalification, subject to the provisions of 3282.54.

3282.357. Background and Experience.

All private organizations shall submit statements of the organizations' experience in the housing industry, including a list of housing products, equipment, and structures for which evaluation, testing and follow-up inspection services have been furnished. They shall also submit statements regarding the length of time these services have been provided by them. In addition, all such submissions shall include a list of other products for which the submitting party provides evaluation, inspection, and listing or labeling services and the standard applied to each product, as well as the length of time it has provided these additional services.

3282.358. Personnel.

(a) Each primary inspection agency shall have qualified personnel capable of carrying out all of the functions for which the primary inspection agency is seeking to be approved or disapproved. Where a State intends to act as the exclusive IPIA in the State,it shall show that it has adequate personnel to so act in all plants in the State.

(b) Each submission shall indicate the total number of personnel employed by the submitting party, the number of personnel available for this program, and the locations of the activities of the personnel to be used in the program.

(c) Each submission shall include the names and qualifications of the administrator and the supervisor who will be directly responsible for the program, and resumes of their experience.

(d) Each submission shall contain the information set out in paragraphs (d)(1) through (d)(9) of this section. Depending upon the functions (DAPIA, or IPIA) to be undertaken by a particular primary inspection agency, some of the categories of personnel listed may not be required. In the cases, the submission should indicate which of the categories of information are not required and explain why they are not needed. The submission should identify which personnel will carry out each of the functions the party plans to perform. The qualifications of the personnel to perform one or more of the functions will be judged in accordance with the requirements of ASTM Standard E-541 except that the requirement for registration as a professional engineer or architect may be waived for personnel whose qualifications by experience or education equal those of a registered engineer or architect. The categories of personnel to be included in the submission are as follows:

(1) The names of engineers practicing structural engineering who will be involved in the evaluation, testing, or follow-up inspection services, and resumes of their experience.

(2) The names of engineers practicing mechanical engineering who will be involved in the evaluation, testing, or follow-up inspection services and resumes of their experience.

(3) The names of engineers practicing electrical engineering who will be involved in the evaluation, testing, or follow-up inspection services and resumes of their experience.

(4) The names of engineers practicing fire protection engineering who will be involved in the evaluation, testing, or follow-up inspection services, and resumes of their experience.

(5) The names of all other engineers assigned to this program, the the capacity in which they will be employed, and resumes of their experience.

(6) The names of all full-time and part-time consulting architects and engineers, their registration, and resumes of their experience.

(7) The names of inspectors and other technicians along with resumes of experience and a description of the type of work each will perform.

(8) A general outline of the applicant agency's training program for assuring that all inspectors and other technicians are properly trained to do each specific job assigned.

(9) The names and qualifications of individuals serving on advisory panels that assist the applicant agency in making its policies conform with the public interest in the field of public health and safety.

(e) All information required by this section shall be kept current. The Secretary shall be notified of any change in personnel or management or change of ownership or state jurisdiction within 30 days of such change.

3282.359. Conflict of Interest.

(a) All submissions by private organizations shall include a statement that the submitting party is independent in that it does not have any actual or potential conflict of interest and is not affiliated with or influenced or controlled by any producer, supplier, or vendor of products in any manner which might affect its capacity to render reports of findings objectively and without bias.

(b) A private organization shall be judged to be free of conflicting affiliation, influence, and control if it demonstrates compliance with all of the following criteria:

(1) It has no managerial affiliation with any producer, supplier, or vendor of products for which it performs PIA services, and is not engaged in the sale or promotion of any such product or material;

(2) The results of its work do not accrue financial benefits to the organization via stock ownership of any producer, supplier or vendor of the products involved;

(3) Its directors and other management personnel and its engineers and inspectors involved in certification activities hold no stock in and receive no stock option or other benefits, financial, or otherwise, from any producer, supplier, or vendor of the product involved, other than compensation under 3282.202 of this part;

(4) The employment security status of its personnel is free of influence or control of any producer, supplier, or vendor, and

(5) It does not perform design or quality assurance manual approval services for any manufacturer whose design or manual has been created or prepared in whole or in part by engineers of its organization or engineers of any affiliated organization.

(c) All submissions by States shall include a statement that personnel who will be in any way involved in carrying out the State plan of PIA function are free of any conflict of interest except that with respect to members of councils, committees or similar bodies providing advice to the designated agency are not subject to this requirement.

3282.360. PIA Acceptance of Product Certification Programs or Listings.

In determining whether products to be included in a mobile home are acceptable under the standards set out in Part 280 of Chapter II of 24 CFR, all PIAs shall accept all product verification programs, labelings, and listings unless the PIA has reason to believe that a particular certification is not acceptable in which case, the PIA shall so inform the Secretary and provide the Secretary with full documentation and information on which it bases its belief. Pending a determination by the Secretary, the PIA shall provisionally accept the certification. The Secretary's determination shall be binding on all PIAs.

3282.361. Design Approval Primary Inspection Agency (DAPIA).

(a) General.

(1) The DAPIA selected by a manufacturer under Section 3282.203 shall be responsible for evaluating all mobile home designs submitted to it by the manufacturer and for assuring that they conform to the standards. It shall also be responsible for evaluating all quality control programs submitted to it by the manufacturer by reviewing the quality assurance manuals in which the programs are set out to assure that the manuals reflect programs whcih are compatible with the designs to be followed and which commit the manufacturer to make adequate inspections and tests of every part of every mobile home produced.

(2) A design or quality assurance manual approved by a DAPIA shall be accepted by all IPIAs acting under 3282.362 who deal with the design, quality assurance manual, or mobile homes built to them, and by all other parties, as, respectively, being in conformance with the Federal standards or as providing for adequate quality control to assure conformance. However, each design and quality assurance manual is subject to review and verification by the Secretary or the Secretary's agent at any time.

(b) Designs.

(1) In evaluating designs for compliance with the standards, the DAPIA will not allow any deviations from accepted engineering practice standards for design calculations or any deviations from accepted test standards, except that the DAPIA, for good cause, may request the Secretary to accept innovations which are not yet accepted practices. Acceptances by the secretary shall be published in the form of interpretive bulletins, where appropriate.

(2) The DAPIA shall require the manufacturer to submit floor plans and specific information for each mobile home design or variation which the DAPIA is to evaluate. It shall also require the submission of drawings, specifications, calculations, and test records of the structural, electrical and mechanical systems of each such mobile home design or variation. The manufacturer need not supply duplicate information where systems are common to several floor plans. Each DAPIA shall develop and carry out procedures for evaluating original mobile home designs by requiring manufacturers to submit necessary drawings and calculations as it deems necessary. Where compliance with the standards cannot be determined on the basis of drawings and calculations, the DAPIA shall require any necessary tests to be carried out at its own facility, at separate testing facilities or at the manufacturer's plant.

(3) Design Deviation Report. After evaluating the manufacturer's design, the DAPIA shall furnish the manufacturer with a design deviation report which specifies in detail, item by item with appropriate citations to the standards, the specific deviations in the manufacturer's design which must be rectified in order to produce mobile homes which comply with the standards. The design deviation report may acknowledge the possibility of alternative designs, tests, listings, and certifications and state the conditions under which they will be acceptable. The design deviation report shall, to the extent practicable, be complete for each design evaluated in order to avoid repeated rejections and additional costs to the manufacturer.

(4) Design Approval. The DAPIA shall signify approval of a design by placing its stamp of approval or authorized signature on each drawing and each sheet of test results. The DAPIA shall clearly cross-reference the calculations and test results to applicable drawings. The DAPIA may require the manufacturer to do the cross-referencing if it wishes. It shall indicate on each sheet how any deviations from the standards have been or shall be resolved. Within 5 days after approving a design, the DAPIA shall forward a copy of the design to the manufacturer and the Secretary or the Secretary's agent (prior to the effective date of the standards the latter copy shall go to the Secretary).

The DAPIA shall maintain a complete up-to-date set of approved designs and design changes approved under paragraph (b)(5) which it can duplicate and copies of which it can furnish to interested parties as needed when disputes arise.

(5) Design Change Approval. The DAPIA shall also be responsible for approving all changes which a manufacturer wishes to make in a design approved by the DAPIA. In reviewing design changes, the DAPIA shall respond as quickly as possible to avoid disruption of the manufacturing process. Within 5 days after approving a design change, the DAPIA shall forward a copy of this change to the manufacturer and the Secretary or the Secretary's agent as set out in paragraph (b)(4) of this section to be included in the design to which the change was made.

(c) Quality Assurance Manuals.

(1) In evaluating a quality assurance manual, the DAPIA shall identify any aspects of designs to be manufactured under the manual which require special quality control procedures. The DAPIA shall determine whether the manual under which a particular design is to be manufactured reflects those special procedures, and shall also determine whether the manuals which it evaluates provide for such inspections and testing of each mobile home so that the manufacturer, by following the manual, can assure that each mobile home it manufactures will conform to the standards. The manual shall, at a minimum, include the information set out in 3282.203(c).

(2) Manual Deviation Report. After evaluating a manufacturer's quality assurance manual, the DAPIA shall furnish the manufacturer with a manual deviation report which specifies in detail any changes which a manufacturer must make in order for the quality assurance manual to be acceptable. The manual deviation report shall, to the extent practicable, be complete for each design in order to avoid repeated rejections and additional costs to the manufacturer.

(3) Manual Approval. The DAPIA shall signify approval of the manufacturer's quality assurance manual by placing its stamp of approval or authorized signature on the cover page of the manual. Within 5 days of approving a quality assurance manual, the DAPIA shall forward a copy of the quality assurance manual to the manufacturer and the Secretary or the Secretary's agent (prior to the effective date of the standards, the latter copy shall go to the Secretary). The DAPIA shall maintain a complete up-to-date set of approved manuals and manual changes approved under paragraph (c)(4) of this section which it can duplicate and copies of which it can furnish to interested parties as needed when disputes arise.

(4) Manual Change Approval. Each change the manufacturer wishes to make in its quality assurance manual shall be approved by the DAPIA. Within 5 days after approving a manual change, the DAPIA shall forward a copy of the change to the manufacturer and the Secretary or the Secretary's agent as set out in paragraph (c)(3) of this section to be included in the manual to which the change was made.

(d) Special provision--Title I approvals. A design that has been approved by an organization accepted by the Secretary prior to June 15, 1976, under the Title I program need not be reevaluated, but it shall be revised to bring it into conformance with the Federal standards. When the DAPIA that approved a Title I design to the ANSI Standard has approved the design changes that bring the design into conformance with the Federal standards, that design shall be considered approved for purposes of these regulations. Quality assurance manuals that have been approved under the Title I program shall be considered approved for purposes of these regulations. The DAPIA that approved the Title I design and any required design changes or the quality assurance manual shall assure that copies of each are distributed as new designs, manuals, and changes will be accomplished under paragraphs (b) and (c) of this section. New copies need not be distributed to parties which already have copies.

(e) Requirements for Full Acceptance--DAPIA.

(1) Before granting full acceptance to a DAPIA, the Secretary or the Secretary's agent shall review and evaluate at least one complete design and one quality assurance manual which has been approved by the DAPIA. These shall be designs and manuals approved to the Federal standards, and they shall be chosen at random from those approved by the DAPIA during the period of provisional acceptance.

(2) If the Secretary determines that a design or quality assurance manual shows an inadequate level of performance, the Secretary or the Secretary's agent shall carry out further evaluations. If the Secretary finds the level of performance to be unacceptable, the Secretary shall not grant full acceptance. If full acceptance has not been granted by the end of the provisional acceptance period, provisional acceptance shall lapse unless the Secretary determines that the failure to obtain full acceptance resulted from the fact that the Secretary or her agent has not had adequate time in which to complete an evaluation.

3282.362. Production Inspection Primary Inspection Agencies (IPIAs).

(a) General.

(1) IPIA Responsibilities. An IPIA selected by a manufacturer under 3282.204 to act in a particular manufacturing plant shall be responsible for assuring:

(i) That the plant is capable of following the quality control procedures set out in the quality assurance manual to be following in that plant;

(ii) That the plant continues to follow the quality assurance manual;

(iii) That any part of any mobile home that it actually inspects conforms with the design, or where the design is not specific with respect to an aspect of the standards, to the standards, and

(iv) That whenever it finds a mobile home in production which fails to conform to the design or where the design is not specific, to the standards, the failure to conform is corrected before the mobile home leaves the manufacturing plant; and

(v) That if a failure to conform to the design, or where the design is not specific, to the standards, is found in one mobile home, all other homes still in the plant which the IPIA's records or the records of the manufacturer indicate might not conform to the design or to standards are inspected and, if necessary, brought up to the standards before they leave the plant.

The IPIA is also generally responsible for reviewing and concurring in or disputing manufacturer determinations of the number of mobile homes affected under 3282.404 and for otherwise fulfilling its responsibilities set out in Subpart I. The IPIA shall also make any reports called for under Subpart I.

(2) No more than one IPIA shall operate in any one manufacturing plant, except that where a manufacturer decides to change from one IPIA to another, the two may operate in the plant simultaneously for a limited period of time to the extent necessary to assure a smooth transition.

(b) Plant Approval.

(1) Each IPIA shall, with respect to each manufacturing plant for which it is responsible, evaluate the quality control procedures being followed by the manufacturer in the plant to determine whether those procedures are consistent with and fulfill the procedures set out in the DAPIA approved quality assurance manual being followed in the plant. As part of this evaluation, and prior to the issuance of any labels to the manufacturer, the IPIA shall make a complete inspection of the manufacture of at least one mobile home through all of the operations in the manufacturer's plant. The purpose of this initial factory inspection is to determine whether the manufacturer is capable of producing mobile homes in conformance with the approved design and, to the extent the design is not specific with respect to an aspect of the standards, with the standards and to determine whether the manufacturer's quality control procedures as set out in the quality assurance manual plant equipment, and personnel, will assure that such conformance continues. This inspection should be made by one or more qualified engineers who have reviewed the approved design and by an inspector who has been carefully briefed by the engineers on the restrictive aspects of the design. The mobile home shall be inspected to the approved design for the home except that where the design is not specific with respect to any aspect of the standards, the inspection shall be to the standards as to that aspect of the mobile home. If the first mobile home inspected fails to conform to the design or, with respect to any aspect of the standards not specifically covered by the design, to the standards, additional units shall be similarly inspected until the IPIA is satisfied that the manufacturer is conforming to the approved design, or where the design is not specific with respect to an aspect of the standards, to the standards and quality assurance manual.

(2) Certification Report. If, on the basis of the initial comprehensive factory inspection required by paragraph (b)(1) of this section, the IPIA determines that the manufacturer is performing adequately, the IPIA shall prepare and forward to the manufacturer, to HUD, and to HUD's agent a certification report as described in this paragraph (b)(2). The issuance of the certification report is a prerequisite to the commencement of production surveillance under paragraph (c) of this section in the plant for which the report is issued. At the time the certification report is issued, the IPIA may provide the manufacturer with a two to four week supply of labels to be applied to mobile homes produced in the plant. The IPIA shall maintain a copy of each certification report which it issues.

(3) The certification report shall include:

(i) The name of the DAPIA which approved the manufacturer's design and quality assurance manual and the dates of those approvals,

(ii) The names and titles of the IPIA engineers and inspectors who performed the initial comprehensive inspection,

(iii) A full report of inspections made, serial numbers inspected, any failures to comply which were observed, corrective actions taken, and dates of inspections, and

(iv) A certification that at least one mobile home has been completely inspected in all phases of its production in the plant, that the manufacturer is performing in conformance with the approved designs and quality assurance manual and, to the extent the design is not specific with respect to any aspects of the standards, with the standards, and the IPIA is satisfied that the manufacturer can produce mobile homes in conformance with the designs, and where the designs are not specific, with the standards on a continuing basis.

(4) Inadequate Manufacturer Performance. Where an IPIA determines that the performance of a manufacturer is not yet adequate to justify the issuance of a certification report and labels to the manufacturer, the IPIA may label mobile homes itself by using such of its personnel as it deems necessary to perform complete inspections of all phases of production of each mobile home being produced and labeling only those determined after any necessary corrections to be in conformance with the design and, as appropriate, with the standards. This procedure shall continue until the IPIA determines that the manufacturer's performance is adequate to justify the issuance of a certification report.

(5) Transition Provision.

(i) Prior to the effective date of the standards, when the IPIA finds that it does not have adequate staff to perform the initial comprehensive inspection in a manufacturing plant soon enough for that manufacturer to be in production on the effective date of the standards, or after the effective date of the standards with respect to a manufacturer which is acting under the transition certification process set out in 3282.207, the IPIA may arrange to have a DAPIA perform the initial comprehensive in-factory inspection under paragraph (b)(1) and issue the certification report under paragraph (b)(2). The IPIA shall then issue a two-to-four-week supply of labels to be used beginning on the effective date of the standards. If the DAPIA is unable to complete the initial comprehensive factory inspection and issue the certification report prior to the effective date of the standards, the DAPIA shall submit a deviation report to the IPIA listing all conditions that shall be corrected in the factory prior to the issuance of the certification report and labels. Upon receipt of the DAPIA's deviation report, the IPIA may initiate full-time inspection in the factory with such personnel as it deems necessary to provide complete inspections of mobile homes in production, and it shall apply labels to those mobile homes that it knows by its own inspections to be in conformance with the design and, as appropriate under paragraph (b)(1), with the standards. The IPIA shall continue its full-time inspection in the plant until all deviations cited by the DAPIA have been corrected and the IPIA is satisfied that the manufacturer is conforming to the approved designs and quality assurance manual and as appropriate under paragraph (b)(1), with the standards. When these conditions have been met the IPIA shall issue the certification report and a two-to-four-week supply of labels to the manufacturer to be used prior to the commencement of production surveillance under paragraph (c) of this section.

(ii) A certification report for a particular plant accepted under the Title I program shall be accepted as a certification report under paragraph (b)(2). The IPIA which originally issued the certification report or a different IPIA acting for the manufacturer under this section shall assure that copies of it are distributed as new reports would be under paragraph (b)(2), except that copies need not be distributed to parties which already have copies.

(c) Production Surveillance.

(1) After it has issued a certification report under subsection (b) of this section, the IPIA shall carry out ongoing surveillance of the manufacturing process in the plant. The IPIA shall be responsible for conducting representative inspections to assure that the manufacturer is performing its quality control program pursuant to and consistent with its approved quality assurance manual and to assure that whatever part of a mobile home is actually inspected by the IPIA is fully in conformance with the design and, as appropriate under paragraph (a)(1)(iii) of this section, with the standards before a label is issued for or placed on that mobile home. The surveillance visits shall commence no later than that date on which the IPIA determines they must commence so that the IPIA can assure that every mobile home to be produced after the effective date of the standards to which a label provided for in paragraph (c)(2) of this section is affixed, is inspected in at least one stage of its production. The frequency of subsequent visits to the plant shall continue to be such that every mobile home is inspected at some stage in its production. In the course of each visit, the IPIA shall make a complete inspection of every phase of production and of every visible part of every mobile home which is at each stage of production. The inspection shall be made to the approved design except where the design is not specific with respect to an aspect of the standards, in which case the inspection of that aspect of the mobile home shall be made to the standards. The IPIA shall assure that no label is placed on any mobile home which it finds fails to conform with the approved design or, as appropriate, the standards in the course of these inspections and shall assure that no labels are placed on other mobile homes still in the plant which may also not conform until those homes are inspected and if necesary corrected to the design or the standards. If an IPIA finds a mobile home that fails to conform to the design, or as appropriate under paragraph (a)(1)(iii) of this section, to the standards, the IPIA may, in addition to withholding the label for the unit, proceed to red tag the home until the failure to conform is corrected. Only the IPIA is authorized to remove a red tag. When mobile homes repeatedly fail to conform to the design, or as appropriate under paragraph (a)(1)(iii), to the standards in the same assembly station or where there is evidence that the manufacturer is ignoring or not performing under its approved quality assurance manual, the IPIA shall increase the frequency of these inspections until it is satisfied that the manufacturer is performing to its approved quality assurance manual. Failure to perform to the approved manual justifies withholding labels until an adequate level of performance is attained. As part of its function of assuring quality control, the IPIA shall inspect materials in storage and test equipment used by the manufacturer at least once a month, and more frequently if unacceptable conditions are observed. With the prior approval of the Secretary, an IPIA may decrease the frequency of any inspections.

(2) Labeling.

(i) Labels Required.

(A) The IPIA shall continuously provide the manufacturer with a two-to-four-week supply (at the convenience of the IPIA and the manufacturer) of the labels described in this subsection, except that no labels shall be issued for use when the IPIA is not present if the IPIA is not satisfied that the manufacturer can and is producing mobile homes which conform to the design and, as appropriate, to the standards. Where necessary, the IPIA shall reclaim labels already given to the manufacturer. In no event shall the IPIA allow a label to be affixed to a mobile home if the IPIA believes that the mobile home fails to conform to the design, or, where the design is not specific with respect to an aspect of the standards, to the standards. Labels for such mobile homes shall be provided only after the failure to conform has been remedied, or after the Secretary has determined that there is no failure to conform.

(B) Except where a manufacturer acts under the transition certification program under 3282.207 a permanent label shall be affixed to each transportable section of each mobile home for sale or lease to a purchaser in the United States in such a manner that removal will damage the label so that it cannot be reused. This label is provided by the IPIA and is separate and distinct from the data plate which the manufacturer is required to provide under Section 280.5 of Chapter II of 24 CFR.

(C) The label shall read as follows:

AS EVIDENCED BY THIS LABEL NO. ABC 000 001, THE MANUFACTURER CERTIFIES THAT THIS MOBILE HOME HAS BEEN INSPECTED IN ACCORDANCE WITH THE REQUIREMENTS OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND TO THE BEST OF THE MANUFACTURER'S KNOWLEDGE AND BELIEF, IS CONSTRUCTED IN CONFORMANCE WITH THE FEDERAL MOBILE HOME CONSTRUCTION AND SAFETY STANDARDS IN EFFECT ON THE DATE OF MANUFACTURE. SEE DATA PLATE.

(D) The label shall be 2 in. by 4 in. in size and shall be permanently attached to the mobile home by means of 4 blind rivets, drive screws, or other means that render it difficult to remove without defacing it. It shall be etched on . 032 in. thick aluminum plate. The label number shall be etched or stamped with a 3 letter IPIA designation which the Secretary shall assign and a 6 digit number which the label supplier shall stamp sequentially on labels supplied to each IPIA.

(E) The label shall be located at the tail-light end of each transportable section of the mobile home approximately one foot up from the floor and one foot in from the road side, or as near that location on a permanent part of the exterior of the mobile home as practicable. The roadside is the right side of the mobile home when one views the mobile home from the tow bar end of the mobile home. It shall be applied to the mobile home unit in the manufacturing plant by the manufacturer or the IPIA, as appropriate.

(F) The label shall be provided to the manufacturer only by the IPIA. The IPIA shall provide the labels in sequentially numbered series. The IPIA may obtain labels from the Secretary or the Secretary's agent, or where the IPIA obtains the prior approval of the Secretary, from a label manufacturer. However, if the IPIA obtains labels directly from a label supplier, those labels must be sequentially numbered without any duplication of label numbers.

(G) Whenever the IPIA determines that a mobile home which has been labeled, but which has not yet been released by the manufacturer may not conform to the design or, as appropriate under paragraph (a)(1)(iii) of this section, to the standards, the IPIA by itself or through an agent shall red tag the mobile home. Where the IPIA determines that a mobile home which has been labeled and released by the manufacturer, but not yet sold to a purchaser (as described in 3282.525(b)) may not conform, the IPIA may, in its discretion, proceed to red tag the mobile home. Only the IPIA is authorized to remove red tags, though it may do so through agents which is deems qualified to determine that the failure to conform has been corrected. Red tags may be removed when the IPIA is satisfied, through inspections, assurances from the manufacturer, or otherwise, that the affected homes conform.

(H) Labels that are damaged, destroyed, or otherwise made illegible or removed shall be replaced by the IPIA, after determination that the mobile home is in compliance with the standards, by a new label of a different serial number. The IPIA's labeling record shall be permanently marked with the number of the replacement label and a corresponding record of the replacement label.

(ii) Label Control. The labels used in each plant shall be under the direct control of the IPIA acting in that plant. They shall be provided to the manufacturer only by the IPIA. The IPIA shall assure that the manufacturer does not use any other label to indicate conformance to the standards. This paragraph (c)(2)(ii) does not apply to transition-certification labels used under 3282.207.

(A) The IPIA shall be responsible for obtaining labels. Labels shall be obtained from HUD or its agent, or with the approval of the Secretary, from a label manufacturer. The labels shall meet the requirements of this section. Where the IPIA obtains labels directly from a label manufacturer, the IPIA shall be responsible for assuring that the label manufacturer, the IPIA shall be responsible for assuring that the label manufacturer does not provide labels directly to the manufacturer of mobile homes. If the label manufacturer fails to supply correct labels or allows labels to be released to parties other than the IPIA, the IPIA shall cease dealing with the label manufacturer.

(B) The labels shall be shipped to and stored by the IPIA's at a location which permits ready access to manufacturing plants under its surveilance. The labels shall be stored under strict security and inventory control. They shall be released only by the IPIA to the manufacturer under these regulations.

(C) The IPIA shall be able to account for all labels which it has obtained through the date on which the mobile home leaves the manufacturing plant, and it shall be able to identify the serial number of the mobile home to which each particular label is affixed.

(D) The IPIA shall keep in its central record office a list of the serial numbers of labels issued from the label producer to the IPIA and by the IPIA to the manufacturing plant.

(E) Failure to maintain control of labels through the date the mobile home leaves the manufacturing plant and failure to keep adequate records of which label is on which mobile home shall render the IPIA subject to disqualification under 3282.356.

(3) Data Plate.

(i) The IPIA shall assure that each mobile home produced in each manufacturing plant under its surveillance is supplied with a data plate which meets the requirements of this section and of Section 280.5 of Chapter II or 24 CFR. The data plate shall be furnished by the manufacturer and affixed inside the mobile home on or near the main electrical distribution panel. The data plate shall contain the following information:

(A) The name and address of the manufacturing plant in which the mobile home was manufactured,

(B) The serial number and model designation of the unit and the date the unit was manufactured,

(C) The statement 'This mobile home is designed to comply with the Federal Mobile Home Construction and Safety Standards in force at the time of manufacture,'

(D) A list of major factory-installed equipment including the manufacturer's name and the model designation of each appliance,

(E) Reference to the structural zone and wind zone for which the home is designed and duplicates of the maps as set forth in Section 280.305(c)(4) of Chapter II of 24 CFR. The information may be combined with the heating/cooling certificate and insulation zone maps required by Sections 280.510 and 280.511 of Chapter II of 24 CFR,

(F) The statement 'design approval by' followed by the name of the DAPIA which approved the design,

(ii) A copy of the data plate shall be furnished to the IPIA, and the IPIA shall keep a permanent record of the data plate as part of its labeling record so that the information is available during the life of the mobile home in case the data plate in the mobile home is defaced or destroyed.

(d) Permanent Records. The IPIA shall maintain the following records as appropriate:

(1) Records of all labels issued, applied, removed, and replaced by label number, mobile home serial number, mobile home type, manufacturer's name, dealer destination, and copies of corresponding data plates.

(2) Records of all mobile homes which are red tagged, and the status of each home.

(3) Records of all inspections made at each manufacturing plant on each mobile home serial number, each failure to conform found, and the action taken in each case.

(4) Records of all inspections made at other locations of mobile homes identified by manufacturer and serial number, all mobile homes believed to contain the same failure to conform, and the action taken in each case.

All records shall specify the precise section of the standard which is in question and contain a clear and concise explanation of the process by which the IPIA reached any conclusions. All records shall be traceable to specific mobile home serial numbers and through the manufacturer's records to dealers and purchasers.

(e) Requirements for Full Acceptance--IPIA.

(1) Before granting full acceptance to an IPIA, the Secretary or the Secretary's agent shall review and evaluate at least one certification report which has been prepared by the IPIA during the period of provisional acceptance. The Secretary or the Secretary's agent shall also review in depth the IPIA's administrative capabilities and otherwise review the IPIA's performance of its responsibilities under these regulations.

(2) Where the Secretary determines on the basis of these reviews that an IPIA is not meeting an adequate level of performance, the Secretary or the Secretary's agent shall carry out further evaluations. If the Secretary finds the level of performance to be unacceptable, the Secretary shall not grant full acceptance. If full acceptance has not been granted by the end of the provisional acceptance period, provisional acceptance shall lapse unless the Secretary determines that the failure to obtain full acceptance resulted from the fact that the Secretary or the Secretary's agent has not had adequate time in which to complete and evaluation.

3282.363. Right of Entry and Inspection.

Each primary inspection agency shall secure from each manufacturer and manufacturing plant under its surveillance an agreement that the Secretary, the State Administrative Agency and the primary inspection agency have the right to inspect the plant and its mobile home inspection, labeling, and delivery records, and any of its mobile homes in the hands of dealers or distributors at any reasonable time. (continued)