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DIVISION 1. HOUSING AND COMMUNITY DEVELOPMENT
2-CCR25div01.txt - CCR - 10/12/2006 0:00:00 - Regulation - CA

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3282.364. Inspection Responsibilites and Coordination

All primary inspection agencies shall be responsible for acting as necessary under their contractual commitment with the manufacturer to determine whether alleged failures to conform to the standards may exist in mobile homes produced under their surveillance and to determine the source of the problems. The DAPIA may be required to examine the designs in question or the quality assurance manual under which the mobile homes were produced. The IPIA may be required to reexamine the quality control procedures which it has approved to determine if they conform to the quality assurance manual, and the IPIA shall have primary responsibility for inspecting actual units produced and, where necessary, for inspecting units released by the manufacturer. All primary inspection agencies acting with respect to particular manufacturer or plant shall act in close coordination so that all necessary functions are performed effectively an efficiently.

3282.365. Forwarding Monitoring Fee.

The IPIA shall, whenever it provides labels to a manufacturer, obtain from the manufacturer the monitoring fee to be forwarded to the Secretary's agent as set out in 3282.210. If a manufacturer fails to provide the monitoring fee as required by 3282.210 to be forwarded by the IPIA under this section, the IPIA shall immediately inform the Secretary; or the Secretary's agent.

Subpart I. Consumer Complaint Handling and Remedial Actions

3282.401. Scope.

(a) This subpart sets out procedures to be followed by parties acting under these regulations, and in particular by manufacturers, State Administrative Agencies, primary inspection agencies, and the Secretary, when they receive a consumer complaint or other information indicating the possible existence of an imminent safety hazard, serious defect, defect, or noncompliance in a mobile home which has been sold or otherwise released by a manufacturer to another party. The information as used herein includes knowledge of an imminent safety hazard or failure to conform to the standards found in the plant which may exist in any mobile home already sold or released by the manufacturer. This subpart governs how the information is to be handles, what remedial actions may be required, and how and by whom those remedial actions shall be taken.

(b) Nothing in this subpart or in these regulations shall limit the rights of the purchaser under any contract or applicable law.

(c) Notwithstanding the provisions of 3282.404-3282.407, no manufacturer may be required to act under those sections with respect to noncompliances or defects until September 15, 1976, except as stated in this paragraph. However, each manufacturer shall retain all consumer complaints and other information received by the manufacturer before that date that indicate the possible existence of noncompliances or defects and maintain complete records of the manufacturer's response, if any. The Secretary and State Administrative Agencies that would act under 3282.404-3282.407 with respect to noncompliances and defects shall forward complaints and other information to the manufacturers as they would under 3282.406(a), but shall not require that any action be taken by the manufacturer until September 15, 1976, if the manufacturer responds under 3282.406(a), but shall not require that any action be taken by the manufacturer until September 15, 1976, if the manufacturer responds under 3282.406(b) that the information does not relate to a serious defect or imminent safety hazard and the SAA or the Secretary agrees. September 15, 1976, shall be considered to be the date on which consumer complaints and other information were received by the manufacturer for purposes of computing the time periods within which actions must be taken under 3282.404-3282.407 with respect to those complaints and other information relating to noncompliances or defects received before September 15, 1976.

3282.402. Purpose.

The purpose of subpart is to establish a system under which the protections of the Act are provided with a minimum of formality and delay in the majority of cases, but in which the rights of all parties are protected.

3282.403. Consumer Complaint and Information Referral.

(a) Consumer complaints or other information relating to possible imminent safety hazards or to possible failures to conform to the Federal standards should be sent directly to the manufacturer of the mobile home in question. It is the policy of these regulations that all consumer complaints or other information indicating the possible existence of an imminent safety hazard, serious defect, defect, or noncompliance should be referred to the manufacturer of potentially affected mobile homes as early as possible so that the manufacturer can begin to take any necessary remedial actions.

(b) When a consumer complaint or other information indicating the possible existence of a failure to conform or imminent safety hazard is received by a State Administrative Agency concerning a mobile home not located in that state or is received by the Secretary, the SAA or the Secretary shall forward the complaint or other information to the SAA of the State in which the mobile home in question is located unless it appears from the complaint or otherwise that the mobile homes containing the same possible failure to conform or imminent safety hazards are located in more than one State. If it appears that possibly affected mobile homes are located in more than one State, the complaint shall be forwarded to the SAA of the State where the homes were manufactured, unless it further appears that the mobile homes were manufactured in more than one State, in which case the complaint shall be forwarded to the Secretary. If the complaint or information concerns a mobile home located in the State, the SAA shall act under this subpart. Where there is no SAA in the state in which the allegedly affected mobile homes are located or manufactured, as appropriate, the complaint shall be sent to the Secretary, and the Secretary shall act under this subpart. In all cases, a copy of the complaint or other information shall simultaneously be sent to the manufacturer of the mobile homes that may be affected.

3282.404. Manufacturer Initiated Response.

(a) Whenever a manufacturer receives from a source other than the Secretary or a State Administrative Agency a consumer complaint or other information which indicates the possible existence of an imminent safety hazard, serious defect, defect, or noncompliance in a mobile home which has been sold or otherwise released by the manufacturer, the manufacturer shall investigate the possible existence of the imminent safety hazard or failure to conform in the mobile home or homes to which the complaint or information relates.

(b) Within 10 days of receipt of the complaint or other information, the manufacturer by investigation of the complaint, inspection of the mobile home, or otherwise shall determine whether or not an imminent safety hazard, serious defect, defect or noncompliance exists in the mobile home.

(1) If the manufacturer determines that no imminent safety hazard, serious defect, or noncompliance exists, the manufacturer shall, on or before the tenth day after receipt of the complaint or other information, mail or otherwise communicate the manufacturer's determination to any complaining or inquiring parties and keep a permanent record of the determination and the action taken.

(2) If the manufacturer determines that an imminent safety hazard, serious defect, defect, or noncompliance exists, the manufacturer shall, within 5 days of making the determination, search its records and take such other steps as may be necessary to determine whether or not the imminent safety hazard or failure to conform is unique to the complaint of mobile home.

(c) The manufacturer may determine that an imminent safety hazard or failure to conform is unique to a mobile home if the cause of the imminent safety hazard or failure to conform is not likely to result in the same or a similar problem in one or more other mobile homes. Each determination that no other mobile homes are affected shall be concurred in or disputed by the IPIA in the plant in which the affected mobile home was manufactured.

(1) If the IPIA disputes the determination of uniqueness, the manufacturer shall proceed as it would under paragraph (d) of this section.

(2) If the IPIA concurs in the determination of uniqueness.

(i) The manufacturer shall correct the imminent safety hazard or failure to conform within 30 days of the date on which the manufacturer determined the existence of an imminent safety hazard or failure to conform to the standards so that the mobile home is brought into conformance with the standards in effect at the time the mobile home was manufactured and any imminent safety hazard or failure to conform is removed, and,

(A) The manufacturer shall keep complete records of all determinations and corrections made under this paragraph (c)(2)(i). These records shall include the date the complaint was received, the action taken and the date the action was completed, and the appropriate statement under 3282.413(b);

(B) These records shall be subject to oversight by an SAA or the Secretary, and an incorrect determination or inadequate repair may subject the manufacturer to a requirement to act further under 3282.405, 3282.406, or 3282.407;

(C) The manufacturer need make no further reports or actions taken hereunder; or

(ii) The manufacturer shall proceed as it would under section (d) of this section.

(d) If the manufacturer determines that the imminent safety hazard or failure to conform may not be unique to one mobile home, the manufacturer shall, within 5 days of the date on which the determination of nonuniqueness is made under paragraph (b)(2) of this section, report the existence of the imminent safety hazard or failure to conform and identity of the units which may be affected. The manufacturer, in determining what mobile homes are affected, shall check mobile homes manufactured in all other plants in which the same factors which caused the original imminent safety hazard or failure to conform may exist or have existed. The manufacturer shall attach to the report a statement from the IPIA in each such plant that it concurs in or disputes the manufacturer's determination of which homes are affected. This report shall be sent to the State Administrative Agency of the State in which the affected mobile homes are located unless they are located in more than one State, in which case the report shall be sent to the State Administrative Agency of the State where the mobile homes were manufactured, except that where the mobile homes were manufactured in more than one State, the report shall be sent to the Secretary. Where there is no State Administrative Agency in the appropriate State under the previous sentence, the report shall be sent to the Secretary. At the same time that this report is being submitted, the manufacturer shall proceed under 3282.405.

3282.405. Notification Pursuant to Manufacturer's Determination.

(a) When a manufacturer determines that an imminent safety hazard, serious defect or defect may exist under 3282.404(b)(2) and does not act under 3282.404(c)(2)(i), the manufacturer shall prepare and submit a plan as set out in 3282.410 to the same agency to which the report required by 3282.404(d) was submitted.

(1) In cases in which the manufacturer has proceeded under 3282.404(c)(2)(ii), this plan shall be submitted within 5 days of the determination of the possible existence of an imminent safety hazard or serious defect and within 10 days of the determination of the possible existence of a defect.

(2) In cases where the manufacturer has proceeded under 3282.404(d), the plan shall be submitted within 5 days of the due date of the report required by that sectionif the plan concerns an imminent safety hazard or serious defect or within 10 days if the plan concerns a defect.

(b) All plans for notification and correction shall meet the requirements of 3282.410 and shall be available for public inspection.

(c) After any necessary consultation with the manufacturer, the SAA or the Secretary to which the plan was sent shall approve the plan as submitted or make whatever modifications the SAA or the Secretary deems necessary, and shall notify the manufacturer of such approval or modification. The manufacturer shall be responsible of such approval or modification. The manufacturer shall be responsible for carrying out the plan as approved or modified by the SAA or the Secretary. If the manufacturer believes that the plan as modified and approved by the SAA or the Secretary is incorrect and wishes to contest the modification, the manufacutrer shall so inform the SAA or the Secretary within 5 days of the SAA or the Secretary approval of the plan as modified. The SAA or the Secretary shall, if it does not accept the manufacturer's position, act as follows:

(1) If the manufacturer contends that the mobile home contains a defect rather than an imminent safety hazard or serious defect as the SAA or the Secretary contends, the SAA or the Secretary shall refer the matter to the Secretary for determination under 3282.407(a).

(2) If the manufacturer contends that the number of units affected is different from that stated by the SAA or the Secretary or that the contents of the notice or the correction are different fromwhat the SAA or the Secretary would require, then:

(i) If the SAA or the Secretary and the manufacturer agree that a defect exists, the SAA or the Secretary shall make Preliminary Determination under 3282.407(b), and the parties shall proceed under that section, or

(ii) If the SAA or the Secretary and the manufacturer agree that an imminent safety hazard or serious defect exists, the SAA or the Secretary shall refer the matter to the Secretary for action under 3282.407(a).

However, in any case in which the only question in dispute is whether more units are affected than the manufacturer has stated in hits plan, the manufacturer shall carry out the plan with respect to those units covered by it if the plan is otherwise acceptable, and time limits applicable to this action shall run from the date of imminent safety hazard, serious defect, or defect.

(d) The manufacturer may undertake any corrections required by this subpart prior to approval of the plan. However, actions taken under this paragraph are subject to review by the agency that approved the plan under paragraph (a)(3) of this section, and if found unacceptable, shall not fulfill the requirement of this section.

(e) The formal notification requirements which would result from any determination by the manufacturer under this section may be waived by the SAA or the Secretary that would otherwise approve the plan under paragraph (a)(3) of this section upon receipt of satifactory assurances from the manufacturer that:

(1) The manufacturer has identified all possibility affected mobile homes which have been sold to purchasers, dealers and distributors;

(2) The manufacturer has corrected, at the manufacturer's expense, all affected mobile homes; and

(3) The repairs, in the SAA or the Secretary's judgment, are adequate to remove the imminent safety hazards or failure to conform. The manufacturer may, before acting under this paragraph (c), to obtain the concurrence in the proposed corrections from the SAA or the Secretary that would otherwise approve the plan under paragraph (a)(3) of this section. All actions taken under this paragraph (b) by the manufacturer shall be completed within 30 days of the decision of the manufacturer to act under this 3282.405 if the problem is an imminent safety hazard or serious defect or 60 days if the problem is a defect unless the SAA or the Secretary which would have approved the plan under paragraph (a)(3) of this section, agrees to a longer period of time in extraordinary circumstances.

3282.406. SAA or Secretarial Initiated Response.

(a) When a consumer complaint or other information indicating the possible existence of an imminent safety hazard, serious defect, defect, or noncompliance is referred to the Secretary or an SAA under 3282.403(b), the Secretary or SAA shall expeditiously contact the manufacturer of the mobile home or homes in question. The Secretary or SAA must provide the manufacturer all information which it has concerning the possible imminent safety hazard or failure to conform and shall inform the manufacturer that the manufacturer shall report to the Secretary or SAA within 10 days of the contact as specified in paragraph (b) of this section. The SAA or the Secretary may extend the time period fo 20 days upon satisfactory indications by the manufacturer that it is diligently investigating the situation, except that such extension shall not be granted if it is not the interest of the purchasers or owners.

(b) The manufacturer shall respond to the SAA or the Secretary which contacted it under paragraph (a) of this section within 10 days of the contact (unless an extension is granted). In this report the manufacturer shall indicate whether it knew of the complaint or information and

(1) If it knew of the complaint or information, or other complaints or information relating to the problem, what actions it has taken and the reasons therefor.

(2) If it did not know of the complaint or information, whether the manufacturer has classified the problem to which the complaint or information relates as an imminent safety hazard, serious defect, defect, or noncompliance, with the reasons for this classification or whether the manufacturer has determined that the problem complained of fits none of these classifications.

(c) If the manufacturer determines and responds under paragraph (b)(2) of this section that there is an imminent safety hazard, serious defect, defect, or noncompliance in the mobile homes, it shall proceed under 3282.404(b)(2), and if the manufacturer further proceeds under 3282.404(d), the manufacturer shall send a copy of the report required by that section to the SAA or the Secretary which forwarded the complaint or information to it under paragraph (a) of this section concerning the same imminent safety hazard or failure to conform.

(d) If the manufacturer determines and reports under paragraph (b)(2) of this section that no imminent safety hazard, serious defect, defect, or noncompliance exists in the complaint of mobile home or homes, the SAA or the Secretary to which the response is made under paragraph (b)(2) shall proceed as follows:

(1) If the SAA or the Secretary on the basis of the information reported by the manufacturer and any other information the SAA or the Secretary may have, agrees with the determination of the manufacturer, the SAA or the Secretary shall so inform the manufacturer and the complainants and shall consider the matter closed.

(2) If the SAA or the Secretary is not convinced by the information submitted by the manufacturer or otherwise believes that further investigation is necessary, the SAA or the Secretary shall investigate and, within day of receipt the manufacturer's report, shall inform the manufacturer of the results of its investigation.

(i) If the SAA or the Secretary agrees with the manufacturer's determination, it shall act as it would under paragraph (d)(1).

(ii) If the SAA or the Secretary believes that an imminent safety hazard, serious defect, defect, or noncompliance exists, it shall so inform the manufacturer, and the manufacturer may act as it would under paragraph (c) of this section. If the manufacturer does not choose to act under that paragraph, the SAA or the Secretary shall proceed under 3282.407, including holding any requested hearing or presentation of views, making any Preliminary or Final Determination, and approving any plan for notification correction.

(e) The manufacturer may obtain from any SAA to which a copy of the response required under paragraph (b)(2) of this section is sent approval of proposed corrections for only those mobile homes located in that state to which the complaint or information forwarded by the SAA to the manufacturer related but only for these mobile homes. If the manufacturer properly effects corrections pursuant to such approval, the manufacturer need not modify the correction at a later time despite the fact that the plan which is approved under 3282.405(a)(3) or 3282.407(a)(3) or (b)(3) contains different specifications for the correction. If a manufacturer provides correction under this paragraph, such correction does not constitute an admission by the manufacturer that an imminent safety hazard, serious defect, defect, or noncompliance exists, and it is not a concession by the manufacturer that the approved corrections are appropriate or necessary in any other mobile home. However, actions taken under this paragraph are subject to review by the SAA or the Secretary that approved the plan under paragraph (a)(3) of this section, and if found unacceptable, shall not fulfill the requirements of this section.

(f) An SAA or the Secretary acting under paragraph (a) of this section or under 3282.407 may, if at any point after contacting the manufacturer it determines that the consumer complaint or other information about which it has contacted the manufacturer (i) relates to a noncompliance of such a minor or technical nature that its existence will not contribute to the deterioration of the mobile home and will not interfere with the use and enjoyment of the mobile home, or (ii) does not constitute a failure to conform or imminent safety hazard, inform the manufacturer and any complainants of this determination and cease further action under this section or 3282.407.

3282.407. Notification Pursuant to Administrative Determination.

(a) Imminent Safety Hazards and Serious Defects. The Secretary shall act under this paragraph upon receipt of the opinion of an SAA that an imminent safety hazard or serious defect exists in one or more mobile homes and upon forming an opinion under 3282.406(d)(2)(ii) that an imminent safety hazard or serious defect exists. The Secretary may also act upon the receipt of any other information indicating the possible existence of an imminent safety hazard or serious defect. Only the Secretary may make Preliminary and Final Determinations that an imminent safety hazard or serious defect exists.

(1) Preliminary Procedures. Upon receipt of any information indicating the possible existence of an imminent safety hazard or serious defect, but where such information is not adequate to support a Preliminary Determination of an imminent safety hazard or serious defect under paragraph (a)(2) of this section, the Secretary shall direct the manufacturer to furnish information with respect to the imminent safety hazard or serious defect, including information about the mobile homes potentially affected, within a time prescribed by the Secretary. If the manufacturer fails to furnish information within such time or if, after a consideration of the manufacturer's reponse or other information the Secretary may receive or obtain, the Secretary is satisfied than an imminent safety hazard or serious defect may exist, the Secretary shall make a Preliminary Determination of an imminent safety hazard or serious defect under paragraph (a)(2) of this section.

(2) Preliminary Determination.

(i) Whenever the Secretary determines that there is reason to believe than imminent safety hazard or serious defect in a mobile home, the Secretary shall make a preliminary determination to that effect. The Secretary shall within 5 days notify the manufacturer of such preliminary determination and inform the manufacturer that it may request a hearing or presentation of views under Subpart D to establish that there is no such imminent safety hazard or serious defect.

(ii) Notice shall be sent by certified mail and shall include:

(A) The preliminary determination made by the Secretary;

(B) The factual basis for the determination;

(C) The date on which the determination was made;

(D) The identifying criteria of the mobile homes that may be affected.

The notice shall inform the manufacturer that the preliminary determination of the Secretary shall become final unless the manufacturer responds within 5 days after the receipt of such notice and requests a hearing or presentation of views to rebut the Secretary's determination. The Secretary shall further notify the manufacturer as to whether such imminent safety hazard or serious defect is one which the manufacturer may be required to correct at the manufacturer's expense pursuant to 3282.408. The manufacturer shall also be advised in the notice that any information upon which the Preliminary Determination has been used, such as test results and records of investigations, shall be available for inspection by the manufacturer.

(iii) Promptly upon receipt of a manufacturer's request for a hearing or presentation of views, one shall be provided pursuant to 3282.152.

(3) Final Determination. If the manufacturer fails to respond to the Secretary's notice of Preliminary Determination or if the Secretary decides that the views and evidence presented by the manufacturer or others are insufficient to rebut the preliminary determination, the Secretary shall make a final determination than an imminent safety hazard or serious defect exists. In the event of a final determination, the Secretary shall direct the manufacturer to furnish notification and, where applicable, to correct the defect or hazards and to submit a plan in accordance with 3282.410. The Secretary's order shall be published in the Federal Register.

(b) Defects and Noncompliances. The SAA or the Secretary identified by 3282.404(d) may make a Preliminary Determination that a defect or noncompliance exists in one or more mobile homes sold or otherwise released by the manufacturer or proceed under this section where an appropriate preliminary determination has been made under 3282.405(a)(3)(ii) or a tentative finding has been made under 3282.406(d)(2)(ii), or where the SAA or the Secretary, as appropriate otherwise has information which indicates the possible existence of a defect or noncompliance.

(1) Preliminary Determination.

(i) Whenever the SAA or the Secretary acting under this paragraph determines that there is reason to believe that one or more mobile homes contain a defect or noncompliance and makes a preliminary determination to that effect, under this section or whenever the SAAor the Secretary acting under this section receives the preliminary determination of another SAA or the Secretary under 3282.405(a)(3)(ii), the SAA or the Secretary shall notify the manufacturer within 10 days of such preliminary determination and inform the manufacturer that it may request a hearing or presentation of views under subpart D to establish that there is no such defect or noncompliance.

(ii) Notice shall be sent to the manufacturer by certified mail and shall include:

(A) The preliminary determination made by the SAA or the Secretary;

(B) The factual basis for the determination;

(C) The date on which the determination was made;

(D) The identifying criteria of the mobile homes known to be affected.

The notice shall inform the manufacturer that the preliminary determination of defect or noncompliance shall become final unless the manufacturer responds within 5 days after receipt of such notice and requests a hearing or presentation of views to rebut the SAA or the Secretary's determination. The notice shall also state that any information upon which the preliminary determination of noncompliance or defect has been based, such as test results and records of investigations, shall be available for inspection by the manufacturer.

(iii) Promptly upon receipt of a manufacturer's request for a hearing or presentation of views, one shall be held pursuant to 3282.152.

(2) Final Determination.

If the manufacturer fails to respond to the notice of preliminary determination, or, if the SAA or the Secretary decides that the views and evidence presented by the manufacturer or others are insufficient to rebut the Preliminary Determination, the agency shall make a final determination that a defect or noncompliance exists. In the event of a Final Determination, the SAA or the Secretary shall direct the manufacturer to furnish notification and to submit a plan in accordance with 3282.410.

(3) Appeals. When an SAA has made a final determination that a defect or noncompliance exists, the manufacturer within 10 days after the receipt of the notice of such final determination, may request an appeal to the Secretary under 3282.309.

(d) Waiver. The formal notification requirements would result from a determination made under this section may be waived by the SAA or the Secretary handling the matter upon receipt of satisfactory assurances from the manufacturer that:

(1) The manufacturer has identified all affected mobile homes which have been sold to purchasers, dealers and distributors;

(2) The manufacturer has performed the correction, at the manufacturer's expense, on all affected mobile homes; and

(3) The repairs, in the SAA or the Secretary's judgment, are adequate to meet the problem.

The manufacturer may, before acting under this subsection (c) obtain the concurrence of the SAA or the Secretary. Any action taken under this subsection (c) shall be completed within 30 days of the date of a final Determination of imminent safety hazard or serious defect or 60 days of the date of a final determination of defect or noncompliance unless the SAA or Secretary agrees to a longer period of time in extraordinary circumstances.

3282.408. Required Manufacturer Correction.

(a) A manufacturer required to furnish notification under 3282.405 or 3282.407 shall correct, at its expense, any imminent safety hazard or serious defect which can be related to an error in design or assembly of the mobile home by the manufacturer, including an error in design or assembly of any component or system incorporated in the mobile home by the manufacturer.

(b) Where the manufacturer questions whether correction is required under paragraph (a) of this section, the Secretary shall provide an opportunity for a hearing or presentation of views at which interested persons may present oral and written views prior to the issuance of an order directing the manufacturer to provide correction at its expense. The procedures of 3282.152 shall apply to any proceedings which may be conducted under this section.

To the maximum extent possible, actions taken under this section shall be coordinated with actions taken under 3282.407 so that only one hearing need be held to determine both whether a defect or imminent safety hazard exists and whether correction is required.

3282.409. Reimbursement for Prior Correction by Owner.

(a) A manufacturer, required to correct under 3282.408, shall provide reimbursement for reasonable cost to an owner of an affected mobile home who chose to make the correction. Any dispute over the amount to be reimbursed shall be referred by the manufacturer to the SAA where the mobile home is located, or the Secretary if there is no SSA in that state, and the decision of the SAA or the Secretary shall be administratively Final.

(b) Whenever a manufacturer who agreed voluntarily to correct under 3282.405(b) or 3282.407(c) finds that the owner of an affected mobile home has already corrected the failure to conform or imminent safety hazard, the manufacturer shall reimburse the owner in an amount equal to the reasonable cost to the manufacturer of making the correction.

3282.410. Manufacturer's Plan for Notification and Correction.

(a) The plan required to be submitted by 3282.405(a) and 3282.407(a)(3) and (b)(3) shall indicate how the manufacturer will fulfill its responsibilities under this section. The plan shall include a copy of the notice which meets the requirements of 3282.411.

(b) Time and manner of notification.

(1) If not waived notification of an imminent safety hazard shall be communicated within 5 days after receipt of the order approving the manufacturer's plan for notification and remedy, except that the notification shall be furnished within a shorter period if there is incorporated in the order a finding that such period is in the public interest.

(2) Notice of serious defects, defects or noncompliances shall be mailed or otherwise communicated within 10 days after receipt of the order approving the manufacturer's plan for notification shall be furnished within a shorter period if there is incorporated in the order a finding that such period is in the public interest.

(3) The plan shall provide for notification to be accomplished:

(i) By mail to the first purchaser (not including any dealer or distributor of such manufacturer) of each mobile home containing the imminent safety hazard, serious defect, defect, or noncompliance, and any subsequent purchaser to whom any warranty provided by the manufacturer or required by Federal, State or local law on such mobile home has been transferred, to the extent feasible;

(ii) By mail to any other person who is a registered owner of each mobile home containing the imminent safety hazard, serious defect, defect, noncompliance and whose name has been ascertain pursuant to 3283.211;

(iii) By mail or other more expeditious means to the dealers or distributors of such manufacturer to whom such mobile home was delivered. Where a serious defect of imminent safety hazard is involved, notification shall be sent by certified mail if it is mailed.

3282.411 Contents of Notice.

The notice shall include the following:

(a) An opening statement: 'This notice is sent to you in accordance with the requirements of the National Mobile Home Construction and Safety Standards Act of 1974.'

(b) The following statement, as appropriate: '(Manufacturer's name or the Secretary, or the appropriate SAA)' has determined that:

(1) An imminent safety hazard may exist in (identifying criteria of mobile home).

(2) A serious defect may exist in (identifying criteria of mobile home).

(3) A defect may exist in (identifying criteria of mobile home).

(4) (Identifying criteria of mobile home) may not comply with an applicable Federal Mobile Home Construction or Safety Standard.

(c) A clear description of the imminent safety hazard, serious defect, defect, or noncompliance which shall include:

(1) The location of the imminent safety hazard, serious defect, defect, or noncompliance in the mobile home;

(2) A description of any hazards, malfunctions, deterioration or other consequences which may result from the imminent safety hazard, serious defect, defect, or noncompliance;

(3) A statement of the conditions which may cause such consequences to arise; and

(4) Precautions if any, that the owner should take to reduce the chance that the consequences will arise before the mobile home is repaired.

(d) An evaluation of the risk to mobile home occupants' safety and the durability of the mobile home reasonably related to such imminent safety hazard, serious defect, defect, or noncompliance, including:

(1) The type of injury which may occur to occupants of the mobile home;

(2) The types of injuries which have occurred, including particularly any deaths, which appear to have resulted from the imminent safety hazard, defect or noncompliance; and

(3) Whether there will be any warning that a dangerous occurrence may take place and what that warning would be, and any signs which the owner might see, hear, smell, or feel which might indicate danger or deterioration of the mobile home as a result of the imminent safety hazard, serious defect, defect, or noncompliance.

(e) A statement of the measures needed to repair the imminent safety hazard, serious defect, defect, or noncompliance, in accordance with whichever of the following is appropriate:

(1) Where the manufacturer must bring the mobile home into compliance with applicable standards and correct the imminent safety hazard, have it corrected at no cost to the owner pursuant to 3282.408, the statement shall include:

(i) A statement that the correction will be made at the manufacturer's expense;

(ii) A general description of the work involved in the repair;

(iii) The manufacturer's estimates of the date on which the cturer's manufacturer's agents will make the repair;

(iv) The method by which the owner will be contacted further when the repair date is to be carried out;

(v) The manufacturer's estimate of the time reasonably necessary to perform the labor required to correct the imminent safety hazard or serious defect;

(vi) Any other information set out in the plan for notification which may be helpful to the owner.

(2) When the manufacturer does not bear the cost of repair, the notifications shall include:

(i) A statement that the manufacturer is not required by the Act to remedy without charge;

(ii) A description, including approximate price, of all material that must be added or replaced;

(iii) A description of any modifications that must be made to existing materials;

(iv) A detailed description, including appropriate illustrations, of each step required for correction;

(v) The manufacturer's estimate of the time reasonably necessary to perform the labor required to correct the defect;

(3) Where a determination has been made that notification is required, but a final determination has not been made as to the manufacturer's responsibility to bear the cost of correction, the Secretary may, after providing an opportunity for a hearing or presentation of views under 3282.152, direct the manufacturer to issue a notification with a statement that the issue is being considered and, that a further notification will be sent when a determination has been made under 3282.408.

(f) A statement informing the owner that he may submit a complaint to the Secretary if the owner believes that:

(1) The notification or the remedy described therein is inadequate; or

(2) The manufacturer has failed or is unable to remedy the problem in accordance with his notification; or

(3) The manufacturer has failed or is unable to remedy within a reasonable time after the owner's first attempt to obtain remedy; or

(g) A statement that any actions taken by the manufacturer under the Act in no way limit the rights of the owner or any other person under any contract or other applicable law and that the owner may have further rights under contract or other applicable law.

3282.412. Time for Implementation of Plan.

The manufacturer's plan submitted under 3282.410 shall provide for implementation of notification and correction actions as follows:

(a) Imminent safety hazards. Implementation of the plan for notification and correction shall be completed within 30 days from the date of discovery or Final Determination of an imminent safety hazard or serious defect.

(b) Defects and Noncompliances. Implementation of the manufacturer's plan for notification shall be completed within 60 days from the date of discovery or final determination of defect or noncompliance.

(c) The Secretary may grant an extension of time for implementing the plan where the manufacturer shows good cause for the delay and the Secretary determines the extension is justified as extraordinary circumstances. When the Secretary grants an extension, the Secretary shall notify the manufacturer and publish notice of such extension in the Federal Register. The manufacturer shall implement its plan for notification and correction as approved by the Secretary.

3282.413. Completion of Remedial Actions and Report.

(a) Where a manufacturer is required to provide notification under this subpart, the manufacturer shall maintain in its files for five years from the date the notification campaign is completed a copy of the notice sent and a complete list of the people and their addresses.

(b) Where a manufacturer is required to provide correction under 3282.408, or where the manufacturer otherwise corrects under 3282.404(c)(2)(i), 3282.405(b) or 3282.407(c), the manufacturer shall maintain in its file, for five years from the date the correction campaign is completed, one of the following, as appropriate:

(1) A statement signed by the owner to the effect that the problem appears to have been corrected and that the owner is satisfied with the correction,

(2) Where the owner refuses to sign such a statement, a certification by the manufacturer that the repair was made to the standards in effect at the time the mobile home was manufactured, that any imminent safety hazard has been eliminated, and that the owner has refused to sign the statement in the previous paragraph, or

(3) Where the owner refuses to allow the manufacturer to repair the home, a certification by the manufacturer that it has informed the owner of the problem which may exist in the mobile home, that it has informed the owner of any risk to safety or durability of the mobile home which may result from the problem, and that the manufacturer has attempted to repair the problems only to have the owner refuse the repair.

(c) If any actions taken under 3282.404(c)(2)(i), 3282.405(b) or 3282.407(c) are found by the SAA of the State in which the home is located or by the Secretary not to meet the standards or otherwise not to be adequate under the approved plan, the manufacturer may be required to provide notification or correction pursuant to this subpart.

(d) If, in the course of making corrections under any of the provisions of this subpart, the manufacturer creates an imminent safety hazard or serious defect the manufacturer shall correct the imminent safety hazard or serious defect under 3282.408.

(e) Upon completion of an approved plan and upon completion of any remedial actions under this subpart except repairs made under 3282.404(c)(2)(i), the manufacturer shall, within 30 days of the time limits set out in 3282.412, provide a complete report of the section taken to the agency which provided the plan under 3282.405 or 3282.410 or which would have approved the plan had one been required and any agency which contacted the manufacturer under 3282.406(a) concerning the problem. This report shall identify by serial numbers the homes affected. The number of homes found to have the failure to conform or imminent safety hazard, and where in the distribution chain (manufacturer, distributor, dealer, purchaser, owner) they were found.

3282.414. Replacement or Repurchase of Mobile Home from Purchaser.

(a) Whenever an imminent safety hazard or serious defect which must be corrected by the manufacturer at his expense under 3282.408 is of such severity that it cannot be repaired within 60 days in accordance with Section 615(i) of the Act, the Secretary may require--

(1) That the mobile home be replaced by the manufacturer with a mobile home substantially equal in size, equipment, and quality, and either new or in the same condition the defective mobile home would have been in at the time of discovery of the imminent safety hazard or serious defect had the imminent safety hazard or serious defect not existed; or

(2) That the manufacturer take possession of the mobile home and refund the purchase price in full, less a reasonable allowance for depreciation based on actual use if the home has been in the possession of the owner for more than one year. Such depreciation shall be based upon an appraisal system approved by the Secretary, and shall not take into account damage or deterioration resulting from the imminent safety hazard or serious defect.

(b) In determining whether to order replacement or refund by the manufacturer, the Secretary shall consider:

(1) The threat of injury or death to mobile home occupants;

(2) Any costs and inconvenience to mobile home owners which will result from the lack of adequate repair within the specified period;

(3) The expense to the manufacturer;

(4) Any obligations imposed on the manufacturer under contract or other applicable law of which the Secretary has knowledge; and

(5) Any other relevant factors which may be brought to the attention of the Secretary.

(c) In those situations where under contract or other applicable law the owner has the right of election between replacement and refund, the manufacturer shall inform the owner of such right of election and shall inform the Secretary of the election, if any, by the owner.

(d) This section applies where an attempted correction of an imminent safety hazard or serious defect relieves the safety problem but does not bring the home in conformity to the standards.

(e) Where replacement or refund by the manufacturer is ordered under this section, it shall be carried out within 30 days of the Secretary's order to replace the mobile home or refund the purchase price unless the Secretary, for good cause shown, grants an extension of time for implementation of such order and publishes notice of such extension in the Federal Register.

3282.415. Mobile Homes in the Hands of Dealers and Distributors.

(a) The manufacturer is responsible for correcting any failures to to conform and imminent safety hazards which exist in mobile homes which have been sold or otherwise released to a distributor or dealer but which have not yet been sold to a purchaser. This section sets out the procedures to be followed by dealers and distributors for handling mobile homes in such cases.

(b) Whenever a dealer or distributor finds a problem in a mobile home which the manufacturer is responsible for correcting under paragraph (a) of this section, the dealer or distributor shall contact the manufacturer, provide full information concerning the problem, and request appropriate action by the manufacturer in accordance with paragraph (c) of this section. Where the manufacturer agrees to correct, the manufacturer shall maintain a complete record of its actions. Where the manufacturer authorizes the dealer to make the necessary corrections on a reimbursable basis, the dealer or distributor shall maintain a complete record of its actions. Agreement by the manufacturer to correct or to authorize corrections on a reimbursable basis under this subsection constitutes a determination of the Secretary for purposes of Section 613(b) of the act with respect to judicial review of the amount which the manufacturer agrees to reimburse the dealer or distributor for corrections.

(c) Upon a final determination by the Secretary or a State Administrative Agency under 3282.407, or upon a determination by a court of competent jurisdiction that a mobile home fails to conform to the standard or contains an imminent safety hazard after such mobile home is sold or otherwise resold by a manufacturer to a distributor or a dealer and prior to the sale of such mobile home by such distributor or dealer to a purchaser, the manufacturer shall have the option either to:

(1) Immediately furnish, at the manufacturer's expense, to the purchasing distributor or dealer the conforming part or parts or equipment for installation by the distributor or dealer on or in such mobile home, and shall reimburse such distributor or dealer for the reasonable value of such installation plus a reasonable reimbursement of not less than one per centrum per month of the manufacturer's or distributor's selling price prorated from the date of receipt by certified mail of notice of noncompliance to the date such mobile home is brought into compliance with the standards, so long as the distributor or dealer proceeds with reasonable diligence with the installation after the part or component is received; or

(2) Immediately repurchase, at the manufacturer's expense, such mobile home from such distributor or dealer at the price paid by such distributor or dealer, plus all transportation charges involved and a reasonable reimbursement of not less than one per cent per month of such price paid prorated from the date of receipt by certified mail of notice of the imminent safety hazard, serious defect, defect or noncompliance to the distributor. The value of such reasonable reimbursements as specified in this paragraph shall be fixed by mutual agreement of the parties or by a court in an action brought under Section 613(b) of the Act.

(d) This section shall not apply to any mobile home purchased by a dealer or distributor which has been leased by such dealer or distributor to a tenant for purposes other than resale. In that instance the dealer or distributor has the remedies available to a purchaser under this subpart.

3282.416. Notices, Bulletins and Other Communications.

Each manufacturer shall, at the time of dispatch, furnish to the Secretary a true or representative copy of all notices, bulletins, and other written communications to the dealers or distributors of such manufacturer or purchasers or owners of mobile homes of such manufacturer regarding any serious defect or imminent safety hazard which may exist in any such mobile homes produced by such manufacturer. Manufacturers shall keep complete records of all other communications with dealers, owners, and purchasers regarding insignificant noncompliances, noncompliances, and defects. (continued)
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