[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR3560.70]



[Page 495-496]

 

                          TITLE 7--AGRICULTURE

 

     CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 3560_DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS--Table of Contents

 

               Subpart B_Direct Loan and Grant Origination

 

Sec. 3560.70  Supplemental requirements for manufactured housing.



    (a) Design requirements. Manufactured housing must meet the 

requirements of 7 CFR part 1924, subpart A applicable to manufactured 

housing.

    (b) Eligible properties. The manufactured housing must include two 

or more housing units. The applicant will become the first owner 

purchasing the manufactured homes for purposes other than resale. The 

following exceptions may be made to this provision:

    (1) A housing proposal may include the purchase of the real property 

with existing manufactured housing which will be redeveloped with the 

placement of new manufactured homes.

    (2) A housing proposal may include the rehabilitation of existing 

manufactured housing only if the units to be rehabilitated are currently 

financed by the Agency. The proposal will include the results of the 

applicant's consultation with the manufacturer to determine if the 

proposed rehabilitation work will affect the structural integrity of the 

unit and, if so, the statement will include an explanation as to how.

    (c) Terms. The maximum loan amount will be determined in accordance 

with the requirements of Sec. 3560.63. The amortization period and term 

of loans for manufactured housing will not exceed the lesser of the 

economic life of the housing being financed or 30 years.

    (d) Security. A mortgage or deed of trust will be taken on the 

entire property purchased or improved with the loan. The encumbered 

property must be covered under a standard real estate title insurance 

policy or attorney's



[[Page 496]]



title opinion that identifies the housing as real property and insures 

or indemnifies against any loss if the manufactured home is determined 

not to be part of the real property. The property must be taxed as real 

estate by the jurisdiction where the housing is located if such taxation 

is permitted under applicable law when the loan is closed.

    (e) Special warranty requirements. The general contractor or dealer-

contractor, as applicable, must provide a warranty in accordance with 

the provisions of 7 CFR part 1924, subpart A.

    (1) The warranty must establish that the manufactured homes, 

foundations, positioning and anchoring of the units to their permanent 

foundations, and all contracted improvements, are constructed in 

conformity with applicable approved plans and specifications.

    (2) The warranty must include provisions that the manufactured homes 

sustained no hidden damage during transportation and, for double-wide 

units, that the sections were properly joined and sealed.

    (3) The general contractor or dealer contractor must warrant that 

the manufacturer's warranty is in addition to and does not diminish or 

limit all other warranties, rights, and remedies that the borrower or 

lender may have.

    (4) The seller of the manufactured homes must deliver to the 

borrower the manufacturer's warranty with an additional copy for RHS. 

The warranty must identify the units by serial number.