5 PROPOSED ADMINISTRATIVE RULES

 

 

ORR # 2001-050

 

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES DIRECTOR’S OFFICE

MANUFACTURED HOUSING

 

Filed with the Secretary of State on  These rules take effect on August 1, 2003

 

(By authority conferred on the director of the department of consumer and industry services by sections 4, 5, 9, 22 to 24, and 38 of 1987 PA 96, MCL 125.2304, 125.2305, 125.2309, 125.2321 to 125.2324,

125.2327, 125.2338, and Executive Reorganization Order No. 1996-2, MCL 445.2001)

 

R 125.1101, R 125.1120, R 125.1125, R 125.1130, R 125.1185, R 125.1192, R 125.1202b, R 125.1204, R 125.1209, R 125.1211a, R 125.1212, R 125.1213a, R 125.1214c, R 125.1214d, R 125.1214e, R 125.1214f, R 125.1214g, R 125.1214h, R 125.1214i, R 125.1214k, R 125.1214l, R 125.1214n, R

125.1302, R 125.1401, R 125.1402, R 125.1403, R 125.1404, R 125.1405, R 125.1407, R 125.1408, R

125.1409, R 125.1410, R 125.1411, R 125.1413, R 125.1415, R 125.1417, R 125.1419, R 125.1503, R

125.1504, R 125.1505, R 125.1507, R 125.1508, R 125.1601, R 125.1602, R 125.1602a, R 125.1603, R

125.1604a, R 125.1605, R 125.1607, R 125.1701, R 125.1702, R 125.1702a, R 125.1704, R 125.1705, R

125.1708, R 125.1901, R 125.1902a, R 125.1904a, R 125.1905, R 125.1908, R 125.1912, R 125.1918, R

125.1920, R 125.1922, R 125.1925, R 125.1926, R 125.1928, R 125.1929, R 125.1934, R 125.1935, R

125.1936, R 125.1937, R 125.1940, R 125.1940a, R 125.1941, R 125.1944, R 125.1947, R 125.1947a, R

125.1948, R 125.1950, R 125.2001, R 125.2003, R 125.2005, R 125.2005a, R 125.2006, R 125.2006a, R

125.2006b, R 125.2007 and R 125.2009 of the Michigan Administrative Code are amended, R125.1106, 125.1192a, 125.1202c, R 125.1501a, R 125.1503a and R 125.2001a are added to the Code, and R 125.1201, R 125.1202a, R 125.1203, R 125.1210, R 125.1211, R 125.1214j, R 125.1214m, R 125.1310, R 125.1320, R 125.1416, R 125.1604b, R 125.1606, R 125.1608 and R 125.1913 of the Code are

rescinded as follows:

 

PART 1. GENERAL PROVISIONS

 

R 125.1101 Definitions.

Rule 101. (1) As used in these rules:

(a)      “Accessory” means anything which is joined to a home, which renders it more complete, which accompanies it, which is connected to it, or which performs a function incident to the safety or convenience, or both, of the occupant, such as an attached or detached carport or garage, steps, or decks. An accessory shall be constructed pursuant to the standards set forth in the provisions of R 408.30101 et seq. of the Michigan Administrative Code.

(b)      “Act” means Act No. 96 of the Public Acts of 1987, as amended, being §1987 PA 96, MCL 125.2301 et seq. of the Michigan Compiled Laws, and known as the mobile home commission act.

 

 

(c)    “Advertising” means the publication of, or causing to be published, by any means of communication, all material that is prepared for public distribution and consumption, including any sign used by a licensee. A licensee may shall use its true the name or assumed name, or both names under which it’s doing business in its all advertisements. The term does not include applications for licensing or stockholder communications, such as any of the following:

(i)    Annual reports.

(ii)    Interim financial reports.

(iii)    Proxy materials.

(iv)    Registration statements.

(v)    Securities.

(vi)    Business or financial prospectuses.

(d)    “Certificate of manufactured home ownership” means a document which is issued by the department or its authorized representative and which establishes lawful transfer and ownership of a home.

(e)    “Closing” means the procedure in which final documents are executed.

(f)    “Commission” means the manufactured housing commission.

(g)     “Common sidewalk” means a sidewalk in a community that is intended for the common use of all residents in the community.

(h)    “Community” means both a “mobile home park” as defined in section 2(i) of the act and a “seasonal mobile home park” as defined in section 2(m) of the act.

(i)    “Consumer” means a retail purchaser.

(j)     “Consumer deposit” means all payments of cash or by personal check, money order, certified or cashier’s check, credit card or similar instrument, or other collateral or security paid to a retailer prior to closing by the consumer for the right to purchase a home subject to return upon cancellation of the purchase agreement. A consumer deposit includes a down payment as defined in subdivision (m) of this subrule. A consumer deposit shall be placed in an escrow account and remain there until the closing. After the closing, the deposit can be transferred to a general account.

(k)    “Department” means the Michigan department of consumer and industry services.

(l)    “Director” means the director of the Michigan department of consumer and industry services.

(m)     “Down payment” means all payments, whether made in cash or otherwise, received by or for the benefit of the seller. “Final documents” include termination statements, or releases of lien, purchase agreements, installment loan contracts, manufacturer’s invoices, closing statements, shipping records, delivery receipts, and escrow disbursement documents.

(n)     “Home” has the same meaning as “manufactured home,” which has the same meaning as “mobile home” as defined in section 2(g) of the act. A new home is a home for which a certificate of manufactured home ownership has not should have been issued under section 30 of the act.

(o)    “Homeowner” means the person or persons listed on the certificate of manufactured home ownership and on the security agreement, if one exists, for the home.

(p)    “Home site” means the entire area that is designated to be used for a specific home.

(q)       “Individual  sidewalk”  means  a  private  sidewalk  which  extends  from  the  common  sidewalk, driveway, or internal road to the home site and which is intended for the use of the home site resident.

(r)     “Installer and servicer” has the same meaning as “installer and repairer” as defined in section 2(e) of the act.

(s)     “Internal road” means a road which is contained within the boundaries of a community and which is under the care, custody, and control of the community.

(t)    “Location” means a staffed sales office that lists or sells, or lists and sells, new or pre-owned homes.  (t)(u) “Manufactured housing commission” has the same meaning as “commission” as defined in section 2(c) of the act.

 

 

(u)(v) “Operator” means an individual 18 years of age or older who is an officer of a corporation, a manager or member, if member managed, of a limited liability company, a general partner, a copartner, or a sole proprietor. who is directly responsible for the operation of a licensee and who is designated as such for licensure purposes

(v)(w) “Optional improvement” means an amenity in new community construction or existing licensed community expansion that is not required under the community construction rules contained in these rules.

(x) “Payments” does not include payments collected by a retailer on behalf of either a lender, in order for financing to be approved, or a state or local governmental agency, in order to apply for permits, and forwarded by the retailer to the lender or governmental agency.

(w)(y) “Permanent foundation” means a base upon which a home is placed that is not subject to excessive movement caused by changes in weather or home weight distribution.

(x)(z) “Purchase agreement,” for the purpose of records maintained under these rules, means an express written agreement in which a person agrees to buy, and another person agrees to sell, a home and includes specific home identification information, which shall include all of the following information:

(i)    Year of manufacture or year on previous certificate of manufactured home ownership.

(ii)    Serial number if available.

(iii)    Name of manufacturer.

(iv)    Model name or number.

(v)    The agreed to price of the home.

(vi)    Each buyer-selected option and accessory. not listed on the manufacturer’s invoice

(vii)     Other costs to the buyer, such as taxes and certificate of manufactured home ownership fees.  (y)(aa) “Purchaser” means a retail purchaser.

(z)(bb) “Retailer” has the same meaning as “mobile home dealer” as defined in section 2(h) of the act. A community that rents or leases homes within the community is not required to be licensed as a retailer, but shall comply with the retailer business practices rules. A lender that only sells homes it has repossessed is not required to be licensed as a retailer.

(aa) “Retail sale” means the sale, exchange, or offering of a home, accessory, or item of equipment for a home directly to a consumer.

(bb) “Salesperson” means either of the following:

(i) An individual who, for direct or indirect compensation, negotiates the purchase, sale, or exchange of a home through a licensed retailer.

(ii) An individual who, for direct or indirect compensation, engages in the business of listing, offering,  or attempting to list, selling or offering to sell, buying or offering to buy, appraising or offering to appraise, or leasing or offering to lease a home through a licensed retailer.

(cc) “Seasonal community” has the same meaning as “seasonal mobile home park” as defined in section 2(m) of the act.

(dd) “Successor” means a person who obtains all of the assets and liabilities of a former owner.

(ee) “Terminate” means ceasing activities authorized under the terms and powers of a license specified in the act.

(ee)(ff) “Year of manufacture” means the calendar year in which a home is manufactured.

(2) Terms defined in the act have the same meanings when used in these rules.

 

R 125.1106 Commission; conflict of interest.

Rule 106. A commissioner or commission committee member shall not participate in a decision or discussion leading to a decision relating to a business entity in which the commissioner or commission

 

 

committee member has a financial or personal interest. However,  a commissioner  or commission committee member may be present in the meeting room during the discussion and decision.

 

R 125.1120 Proposed higher standard; filing; approval and disapproval; adoption by ordinance. Rule 120. (1) Under section 7(1) of the act, local governments proposing a higher standard than specified in these rules shall, after public hearing, file the proposed standard with the department for the commission’s review and approval.

(2)    The filing shall be in letter form and shall contain, but not be limited to, all of the following information:

(a)    The current specific standard for which a higher standard is being proposed.

(b)    The proposed higher standard.

(c)     A statement or statements setting forth the reasons for a standard that is higher than the existing standard.

(d)     A statement or statements that the proposed higher standard is not designed to generally exclude homes or persons who engage in any aspect pertaining to the business of homes.

(e)     A statement or statements comparing the proposed higher standard with the standard applicable to other types of housing. The standard applicable to other types of housing shall be submitted with the statement or statements.

(f)    Any other information and data that provides justification for the proposed higher standard.

(3)   The commission shall approve or disapprove the proposed higher standard within 60 days after the standard is filed with the commission and shall notify the local government, in writing, of its decision. If the commission denies the request, then the local government is entitled to a hearing before the commission or its designated representative under sections 71 to 87 of 1969 PA 306, MCL 24.271 ET SEQ. Act No. 306 of the Public Acts of 1969, as amended, being §§24.271 to 24.287 of the Michigan Compiled Laws, and known as the administrative procedures act.

(4)   If the commission does not approve or disapprove the proposed higher standard within 60 days after the standard is filed with the commission at the department, then the standard shall be considered approved unless the local government has granted the commission additional time to consider the proposal.

(5)   After receipt of approval, or if the 60 days or extended time limit has lapsed, the local government may adopt the standard by ordinance.

 

R 125.1125 Proposed higher standard; intent to deny; order.

Rule 125. (1) The commission may deny a proposed higher standard by local government under the provisions of section 7(1) of the act. The department shall notify the local government by certified mail or personal delivery of the preliminary order of intent to deny. The preliminary order of intent to deny constitutes notification within the 60-day time limit, and extension if any, under the act.

(2) The preliminary order of intent to deny shall automatically be final 15 days after the date of receipt of the order by a local government, unless the local government requests, in writing, a hearing before the commission or its designated representative under the provisions of section 71 of 1969 PA 306, MCL

24.271 ET SEQ. Act No. 306 of the Public Acts of 1969, as amended, being §24.271 of the Michigan Compiled Laws, and known as the administrative procedures act.

R 125.1130 Aggrieved persons; hearing.

Rule 130. A person who is aggrieved by a decision of a any local government action that might violate sections 7 and 18 of the act shall be given an opportunity for a hearing by the commission or its designated representative, under section 4(1)(c) and (d) of the act, to review the local decision provided

 

 

that a written request is received by the department not more than 60 days from the date a decision is rendered by the local government.

 

R 125.1185 Home Construction Standards.

Rule 185. (1) All new homes manufactured to be sold in the United States or new homes sold within Michigan shall be in compliance with the construction standards promulgated by the United States department of housing and urban development, 24 C.F.R. part 1700 et seq. and parts 3280 and 3282, under the national manufactured housing construction and safety standards act of 1974, as amended, 42

U.S.C. §601 et seq. The standards are adopted by reference in these rules. Copies of the adopted standards may be obtained from the Superintendent of Documents, United States Government Printing Office, Washington, D.C., 20204, at no cost., or from Copies may also be obtained from, or are available for inspection at, the Department of Consumer and Industry Services, Corporation and Land Development Bureau of Construction Codes, Manufactured Housing and Land Development Division,  P.O. Box 30703,2501 Woodlake Circle, Lansing Okemos, Michigan 4890948864, at no cost.

(2)   All new or pre-owned United States department of housing and urban development-approved homes brought into or sold within the state of Michigan shall be in compliance with the requirements for the appropriate roof load. All homes sited on July 16, 1998, the effective date of this subrule may be sold on the home site. and are not subject to this subrule.

(3)   The dividing line between the south roof load zone (20 pounds per square foot) and the middle roof load zone (30 pounds per square foot) shall be the centerline of highway M-55 west from Tawas City to the intersection of highway M-115 and then northwest along the centerline of M-115 to Frankfort. The beginning and end of the dividing line shall be at waters’ edge.

 

R 125.1192 Posting of complaint notice.

Rule 192. A licensee shall post, in a conspicuous place, the following statement for resolving complaints:

“Under the Mobile Home Commission Act you have the right to file a valid complaint that pertains to violations of that act or rules published under the act. Before a complaint can be filed under this the act or these rules, you must notify the manufactured home manufacturer, community, retailer, or installer and servicer in writing that a problem exists. If it does not provide a reasonable response is not received within 1510 business days of receipt of your complaint, you may file a complaint with the Michigan Department of Consumer and Industry Services, Corporation and Land Development Bureau of Construction Codes, Manufactured Housing and Land Development Division Office of Local Government and Consumer Services, P.O. Box 3070330222, Lansing, Michigan 48909. Please note that only complaints about violations pertaining to of the mobile home commission act or these rules can be accepted by the Division Department. Examples of complaints may regard any of the following:

1.  Purchase of manufactured homes, goods, or services and applicable warranties.

2.  Lease or rental agreements.

3.  Manufactured home communities.

4.  Metering of utilities.

5.  Manufactured home installation and service.

Complaints pertaining to manufactured home community rent costs do not fall under the authority of the act.”

 

R 125.1192a Complaint Process

Rule 192a. (1) The complainant shall send an alleged complaint to the respondent in writing of the alleged violation, giving the respondent 10 business days to respond.

 

 

(2)    A person may file a complaint with the department, on a form prescribed by the department, pertaining to a violation of the act and rules.

(3)   The department shall send the complaint to the respondent if the department determines there is a potential violation of the act or rules.

(4)   The respondent shall respond to the complaint in writing to the department within 10 business days after receipt from the department or attempted delivery of the complaint.

(5)   If the respondent does not respond to the complaint in writing within 10 business days after receipt, the department shall send the complaint to the alleged respondent a second time.

(6)   The respondent shall respond to the complaint in writing to the department within 5 business days after receipt from the department under subrule (5) of this rule.

(7)     If the respondent does not respond to the complaint under subrule (6) of this  rule, then  the department shall send an order to answer via certified mail to the respondent directing a response.

(8)   Under subrule (7) of this rule, the respondent shall respond to the order to answer within 10 business days after receipt from the department or attempted delivery of the complaint.

(9)   If the respondent does not respond to the order to answer under subrule (8) of this rule, then the department shall initiate administrative action against the respondent.

(10)    If the respondent responds to the complaint or order to answer, the department shall send the response to the complainant.

(11)   The complainant shall respond to the response in writing to the department within 10 business days after receipt.

(12)   If the complainant does not respond to the response within 10 business days after its receipt, or notifies the department in writing that the response is satisfactory, then the department shall close the complaint file.

(13)   If the complainant notifies the department in writing that the response is not satisfactory, then the department shall determine whether the respondent has violated the act or these rules.

(14)     If the department determines that the respondent has not violated the act or rules, then the department shall notify the complainant and the respondent in writing and shall close the complaint file.

(15)   If the department determines that the respondent has violated the act or rules, then the department shall notify the complainant and the respondent in writing of the required remedial action and the deadline by which the remedial action shall be completed.

(16)   When the remedial action is complete, the respondent shall notify the department in writing and provide documentation that the remedial action is complete.

(17)   If the department is satisfied that the remedial action is complete, then the department shall notify the respondent and complainant of this determination and then shall close the file.

 

PART 2. LICENSING

 

R 125.1201 Rescinded. Application; form; filing.

Rule 201. (1) An applicant shall file a completed original licensing application with the department on a form prescribed by the department not less than 30 days before the date on which the applicant intends to be a retailer and engage in retail sales or intends to be an installer and servicer and install or service homes.

(2)If a licensing application is for a new community, then the applicant shall file an application with the department, on a form prescribed by the department, after completion of construction of the part of the community to be licensed but before homes are occupied.

 

 

(3) If a licensing application is for a community that was previously owned by another person, then the applicant shall file an application with the department, on a form prescribed by the department, not more than 30 days after the applicant records the deed to the community.

 

R 125.1202a Rescinded. Credit reporting.

Rule 202a. An individual, including all general partners or copartners in a partnership and officers of a corporation applying for an initial license under the act or these rules, shall submit a credit report as part  of the application process, unless the department obtains the report directly from the credit reporting agency. The credit reporting agency shall forward the credit report to the department. Credit reports shall be for the confidential use of the department only and shall not be available for public inspection under section 13(1)(a) of Act No. 442 of the Public Acts of 1976, as amended, being §15.243(1)(a) of  the Michigan Compiled Laws, and known as the freedom of information act.

 

R 125.1202b Disclosure.

Rule 202b. Under section 38 of the act, when if filing an application under the act or these rules, all general partners or copartners in a partnership; officers of a corporation; managers or members, if member managed of a limited liability company; or sole proprietors shall provide all of the following information:

(a)     A conviction or administrative or civil judgment rendered against them within 10 years before the date of the application in connection with any aspect of the business of homes, which includes, but is not limited to, sales, brokering, installation, servicing, financing, and insuring homes or any aspect of community ownership, management, operation, development, or construction.

(b)     A conviction or administrative or civil judgment rendered against them within 10 years before the date of application in connection with a violation of a statute regulating the offering of securities or franchises or regulating builders, real estate brokers, or real estate agents or a violation of 1972 PA 286, MCL 565.801 et seq. Act No. 286 of the Public Acts of 1972, as amended, being §565.801 et seq. of the Michigan Compiled Laws, and known as the land sales act.

(c)    Information necessary to conductA a criminal record check on a form provided by the department.

 

R 125.1202c Operator.

Rule 202c. On the application for licensure, a person shall identify an operator, who shall sign the application and be directly responsible for the operation of the licensee.

 

R 125.1203 Rescinded. Application; filing as successor.

Rule 203. If an applicant files an application for the license as a successor, whether or not the successor  is then in existence, the application shall meet all the requirements of an original application and shall be filed with the department within 10 days after the date the interest was acquired.

 

R 125.1204 Applications; changes. additions, or corrections.

Rule 204. An applicant shall file a change to a licensing application with the department within 1030 days after the change is made.

 

R 125.1209 License issuance licensee’s true and assumed names required to appear on license; duplicate license.

Rule 209. A license may be issued to a person who meets the requirements of the act and these rules. The licensee’s true name and assumed name if applicable, must shall appear on its the license. The

 

 

department shall issue a duplicate license after the licensee submits a verified statement of loss of the original license to the department.

 

R 125.1210 Rescinded. License issuance; age of individual.

Rule 210. An individual shall be 18 years of age or older to be issued a license.

 

R 125.1211 Rescinded. License; issuance to operator.

Rule 211. A license shall be issued only if the individual who applies for the license is the operator.

 

R 125.1211a Use of similar names on license prohibited; exception.

Rule 211a. After the effective date of this rule, a person who receives a A new licensee may not conduct business under a name have a true or assumed name which is so similar to the true or assumed name on under which an existing licensee is conducting business that it would be confusing to the public. This rule does not apply to a person who has an existing licensee and that receives a new license of the same type for, or adds to its existing license, another location if the true or assumed name of the other location is similar to the true or an assumed name on the existing license to its license.

 

R 125.1212 License; request for renewal; fee.

Rule 212. A request for the renewal of An application for license renewal a license shall be on a form provided by the department and shall be accompanied by the following fee, as applicable: fee prescribed by section 21 of the act.

(a) The fee specified in section 21(4) of the act for a retailer license.

(b) The fee specified in section 21(5) of the act for an installer and servicer license. (c) The fee specified in R 125.1305 for a community license.

 

R 125.1213a License; failure to renew; expiration.

Rule 213a (1) If a licensee fails to file a license renewal application with the department before October 1, then the license held shall expire in compliance with sections 16 and 21 of the act.

(2) A license that is issued under the act shall expire annually on September 30October 1.

 

R 125.1214c Return of suspended or revoked license.

Rule 214c. The holder of a license or licenses issued under the act shall return the license or licenses to the department within 5 days of notification of after suspension or revocation. Return shall be made either personally, for which receipt shall be obtained, or by certified mail.

 

R 125.1214d Local government; licensing.

Rule 214d. A local government shall not require a person licensed under the act to obtain a local license or to register  its license unless the requirement is established by ordinance and the ordinance is approved by the commission under the provisions of section 7 (2)of the act.

 

R 125.1214e Original license required to engage in retail sale of homes.

Rule 214e. A retailer shall not engage in the retail sale of homes until the retailer receives an original license from the department An applicant shall submit a completed licensing application to the department on a form prescribed by the department before the date on which the applicant intends to be a retailer.

 

R 125.1214f Surety bonds; cancellation.

 

 

Rule 214f. (1) A surety bond of $10,000.00 or a deposit of $10,000.00 in cash or securities, made out payable to “People of the "State of Michigan," on a forms prescribed by the department, is required for each retailer location. and shall accompany an application for a retailer’s license

(2) Cancellation of the surety bond required by subrule (1) of this rule is cause for suspension or revocation of a retailer license.

(3)(2) If a surety bond is not renewed before the cancellation date in effect, then the retailer shall stop all sales activity.

 

R 125.1214g Master Retailer’s license; master license amendments; application for amendments; “location” defined.

Rule 214g. (1) An applicant shall obtain a master license for each the principal location from which the applicant proposes to operate by filing the completed application form prescribed by the department.

(2)   Separate applications shall be filed for each sales location. If the applicant intends to operate sales locations in addition to the principal location, then the applicant shall, on a form prescribed by the department, apply for an amendment to the master license for each location.

(3) The applicant shall be required to file an application form with appropriate fees for the master license and for each amendment.

(4) When applying for amendments to a master license, an applicant shall comply with the requirement  for a location surety bond under R 125.1214f.

(5) As used in this rule, “location” means a staffed sales office that lists or sells, or lists and sells, new or  pre-owned homes.

 

R 125.1214h Temporary retailer location.

Rule 214h. (1) A retailer ’s license shall notify the department in writing of a temporary sales location is not required for home exhibition and sales at locations such as a shopping centers, public shows, or other similar limited-term general public events for home exhibition and sales.

(2)   The length of the exhibition and sales shall not be more than exceed 20 calendar days at any one time and shall not be more than exceed a total of 60 calendar days within a 12-month period.

(3)   A retailer shall notify the department, in writing, before placing homes at temporary locations. The notice shall include the name of the event, address, and inclusive dates for the exhibition and sales.

 

R 125.1214i Installer orand servicer; licensing required.

Rule 214i. (1) An applicant shall submit a completed licensing application to the department on a form prescribed by the department before the date on which the applicant intends to be an installer and servicer.

(1)(2) A person who, for compensation installs or disassembles the installation of homes, including their nonpermanently affixed steps, skirting, and anchoring systems, or who services homes, for which service another Michigan license is not required, shall be licensed as an installer and servicer.

(2)(3) Before applying for an original or renewed renewal installer and servicer license, an the operator authorized representative of the applicant shall complete a department-approved installation instruction program within the current licensing year.

(3) Pursuant to the provisions of the act, a manufacturer may install and service homes that it manufactured without an installer and servicer license.

(4) An individual who is employed by a manufacturer as an installer and servicer is not required to obtain a license unless the employee engages in the installation and servicing of homes on his or her  own behalf, outside the scope of his or her employment with the manufacturer.

 

 

R 125.1214j Rescinded.Installer and servicers; liability and worker’s compensation insurance;  cancellation.

Rule 214j. (1) As a condition of licensing, an installer and servicer shall maintain liability insurance of  not less than $1,000,000.00 and worker’s compensation insurance. Finished product liability shall not be a condition of the insurance coverage required by this rule.

(2) If an installer and servicer’s liability or worker’s compensation insurance is canceled, then the installer and servicer shall immediately stop all business activity and the department shall be notified within 10 days of the cancellation.

 

R 125.1214k Operation of community; license required Community license application.

Rule 214k. A person shall not operate a community within this state unless the person has a license  issued by the department(1) If a licensing application is for a new community or an expansion to an existing community, then the applicant shall submit a completed application to the department on a form prescribed by the department.

(2)    If a licensing application is for a community that is or was licensed to another person, then the applicant shall submit a completed application to the department on a form prescribed by the department not more than 30 days after the date the community is conveyed by deed or land contract.

(3)   After conveyance, the applicant is responsible for operation of the community.

 

R 125.1214l License; issuance upon receipt of department of environmental quality certification of compliance; conditional license; “conditional license” defined.

Rule 214l. (1) The department may issue a license upon receipt of a Before licensing, a community shall obtain certification of compliance from the department of environmental quality that a community the community is licensable.

(2) If the department of environmental quality issues a conditional certificate certification of compliance to the department, then the department may shall issue a conditional license. All conditions set forth in the conditional certification of compliance shall be filed with the department. A conditional license may  be issued if the applicant or licensee and the department stipulate to a schedule that corrects the deficiencies. Even though the department of environmental quality has issued an unconditional certificate, the department may, after notice of hearing, issue a conditional license if other sections of the act and these rules are not met by the licensee or applicant. As used in this subrule, “conditional license” means a license which is limited by time or terms, or both, and which may be extended by the department within the license year without payment of additional fees.

 

R 125.1214m Rescinded. License; application for renewal; tax payment statement.

Rule 214m. In addition to other information prescribed by these rules to be part of an application for the renewal of a community license, the department shall receive a written and signed statement from the local tax authority stating that all specific taxes are paid to date under Act No. 243 of the Public Acts of 1959, as amended, being §125.1035 et seq. of the Michigan Compiled Laws, and known as the mobile home park act.

 

R 125.1214n New community and additional home sites license; application; issuance; conditions. Rule 214n. (1) An application for a new community license shall be submitted to the department under the provisions of R 125.1201 to R 125.1214d and R 125.1214k to R 125.1214n.

(2) On a form prescribed by the department, the owner or operator of an existing licensed community  who has expanded the community under a plans approval and permit to construct shall apply to add the additional home sites to the community’s existing license.

 

 

(3)(1) Except as provided in subrule (2) of this rule, B before the department issues an initial license for a new community or adds additional home sites to the community’s existing license, all of the following shall be certified to be complete under the provisions of section 14 of the act:

(a)     Internal roads servicing the completed home sites. The owner may construct except the department may allow the final lift of the road to be constructed in the next construction season if a bond covering the cost of constructing the final lift is delivered to the department before licensure. The bond shall be made payable to the “State of Michigan”.

(b)    Home site individual sidewalk.

(c)    Common sidewalks, if provided, servicing the completed home sites.

(d)    Parking servicing the home site.

(e)    Patios, if provided.

(f)    Permanent foundations.

(g)    Internal road lighting servicing the completed home sites.Except in a seasonal community, a licensed and occupied home site or a licensed home site that is unoccupied 24 months or more after licensure shall meet the light intensity standard set forth in R 125.1929.

(h)     At a minimum, the stabilization of the soil on the completed home sites to prevent, as much as possible, erosion and soil runoff.

(4)(2) Upon approval by the department, all of the following may be installed constructed after licensing of a home site for the purpose of customizing the home site to a specific home:

(a)    The home site individual sidewalk.

(b)    Parking on the home site.

(c)    Patio, if provided.

(d)    Light fixture, if on the home site.

(e)    Permanent foundation.

(5) The owner of a community may be required to post a performance bond in an amount that covers the  costs of completion of construction as determined by the department. The bond shall be made payable to the “State of Michigan” and shall be submitted to the department with a community’s application.

(6)(3) The applicant shall fileA all of the following documents shall be filed with the license application for a new community or additional home sites license:

(a)    An affidavit signed by the community owner or operator and an engineer or architect stating that the construction was completed according to the approved plans and specifications under the provisions of section 14 of the act. If the community owner or operator elects to complete the home site under the provisions of subrule (3)(2) of this rule, then the affidavit shall specifically state that the home site construction shall be completed before the home is occupied and shall be completed according to the approved plans and specifications. The affidavit shall cite the specific home sites to be licensed by home site number.

(b)      Certification of the community sewer system by home site number under the provisions of R 325.3391.

(c)    Certification of the community-owned electrical system by home site number under the provisions of R 325.3391.

(7)(4) Before the department may issue a license, the department shall receive Upon certification of the home sites by the Michigan department of environmental quality under the provisions of section  17(1)16(3) of the act, the department may issue a license.

(8)(5) It shall beis a violation of this rule and section 16 of the act if any home that is placed on a home site is occupied by residents before the home site is licensed. In a licensed community, each home site that has a home occupied by residents shall be licensed whether or not it is being offered to the public.

 

 

PART 3. FEES

 

R 125.1302 Certificate of manufactured home ownership; application; fees.

Rule 302. (1) A seller or the seller’s authorized representative shall, on a form prescribed by the department, file a An application for a certificate of manufactured home ownership and the appropriate fee shall be filed on  a form prescribed by  the  department with  the  department or  its authorized representative within 30 days after the closing of the sale transaction. In addition, a late fee of $15.00 shall be charged if the application is filed after the 30-day limit. The payment of a late fee does not preclude administrative action being taken against the sellerpurchaser or the seller’spurchaser’s authorized representative.

(2) An additional fee of $5.00 shall be added to all other fees if a certificate of manufactured home  ownership is requested to be issued expeditiously.

(3) A seller or the seller’s authorized representative shall pay the appropriate amount of sales tax at the time of filing the application.

 

R 125.1310 Rescinded. Late fee.

Rule 310. A nonrefundable late fee equal to the original fee shall be charged for any license issued  under the act if timely application is not made by the applicant pursuant to the submission date contained in these rules or the act. The payment of a late fee does not preclude administrative action being taken against the applicant.

 

R 125.1320 Rescinded. Fees for public documents.

Rule 320. (1) Upon  written  request, the department shall provide to the requestor copies of any document retained by the department that is determined to be a matter of public record.

(2) A minimum fee of $5.00 shall be charged for any request. For requests that exceed the minimum fee, the following schedule of fees applies:

(a) Standard document……………………………………………………………$ .25 per page.  (b) Certified document…………………………………………………………..$ 5.00 per page. (c) Microfiche…………………………………………………………………….$ .50 per fiche. (d) Magnetic tape………………………………………………………………..$ 21.70 per reel. (e) Cassette tape……………………………………………………………..$ 20.00 per cassette. (f) Hearing transcript……………………………………………………………...$ .50 per page. (g) Computer print-out……………………………………………………………….Actual cost.  (h) Postage…………………………………………………………………………...Actual cost. (i) Labor………………………………………………………………………….$ 4.09 per hour.

(3) All fees shall be paid by cash, by check or money order payable to the State of Michigan, or by other means as determined by the department and authorized by law.

 

PART 4. RETAILER BUSINESS PRACTICES

 

R 125.1401 Advertising; prohibited activities.

Rule 401. A retailer, in connection with the sale of homes, equipment, or accessories, shall not, directly or indirectly, engage in any of the following activities:

(a)     Advertise a home for sale if the name of the retailer does not appear in the advertisement. A home committed by a home owner to a retailer for sale may be advertised if the offer visibly states that the home is “offered on consignment.”

 

 

(b)    Advertise a home and falsely offer any year of manufacture, make, type, model, serial number, fixed location, price, equipment, or terms or make a claim or condition to the sale of a home that is not truthful.

(c)     Advertise the phrase “close out,” “final clearance,” or “going out of business” or similar phrases in connection with home sales without clarification if this unless the phrase is true. is not the case A retailer who is going out of business shall comply with the provisions of 1961 PA 39, MCL 442.211 et seq. Act No. 39 of the Public Acts of 1961, as amended, being §442.211 et seq. of the Michigan Compiled Laws, an act which includes regulation of the sales activities of businesses that are going out of business.

(d)    Advertise the term “authorized retailer” if the retailer is not a manufacturer’s authorized retailer or advertise as a franchised retailer when if the retailer is not a registered franchised retailer under 1974 PA 269, MCL 445.1501 et seq. Act No. 269 of the Public Acts of 1974, as amended, being §445.1501 et  seq. of the Michigan Compiled Laws, and known as the franchise investment law.

(e)       Advertise a home by making inaccurate, misleading, or false comparisons with competitors’ services, prices, products, quality, or business methods.

(f)    Use a picture or photograph of a home in advertising if the picture or photograph does not represent a home of the same year of manufacture, make, and model and does not contain all  the  standard equipment of the model that is actually being offered for sale at the price quoted in the advertisement.

(g)     Advertise a home for sale in a manner that conveys or creates an erroneous impression as to which home is being offered at the advertised price.

(h)     Advertise the statement “write your own deal” or “name your own price” or similar statements, unless the statements are true and a buyer can, in fact, negotiate his or her own price.

(i)     Advertise the phrase “at cost,” “below cost,” “below wholesale,” “below invoice,” “above cost,” “above wholesale,” or “above invoice” or similar phrases, in connection with a retail sale unless the phrases are true. As used in this subsection, “cost” means the actual price paid by a retailer to a manufacturer for a specific home as that price appears on the retailer invoice received from the manufacturer.

(j)    Advertise a specified trade-in amount or range of amounts for a pre-owned home without offering the advertised trade-in amount or range of amounts regardless of the condition of the pre-owned home when presented to the retailer for trade-in by a prospective customer, unless the statement “subject  to condition appraisal” is contained in the advertisement.

(k)      Advertise that “no retailer has lower prices,” “the retailer is never undersold,” or statements of similar meaning, unless the statements are true.

(l)     Advertise in a manner that is false or misleading as to what a new home guarantee, warranty, or protection includes.

(m)     Advertise the phrase “manufacturer’s warranty,” unless referring to a new home covered by a bona fide written manufacturer’s warranty.

(n)    Advertise equipment, accessories, or other merchandise as “free” if the cost, or any part of the cost, is included in the quoted price of the home.

(o)     Advertise the phrase “no credit rejected” or “we finance everyone” or similar phrases, unless the phrases are true.

(p)    Advertise the offering of a rebate or referral bonus unless true.

(q)     Advertise a home as new, unless it has never been occupied. A home which is not of a current year of manufacture, but which has never been occupied, may be advertised as new if the year of manufacture is stated in the advertisement.

(r)    Advertise, or infer by advertising, that a home is “repossessed,” unless it is true.

(s)     Advertise in any manner which infers that a purchaser will be receiving benefits of an existing loan on a home if the benefits do not exist.

 

 

(t)     Advertise pre-owned homes as carrying an unused portion of the original manufacturer’s warranty, unless this is true.

(u)     Advertise the terms of financing a home, unless the advertisement is in compliance with all of the requirements of the federal truth in lending act, 15 U.S.C. §601 et seq., and the accompanying regulation Z, 12 C.F.R. part 226 et seq.

(v)    Advertise under any other name than that which appears on the retailer license.

(w)  Advertise in a manner which implies that a retailer represents an entity other than itself, unless it is true.

(x)(w) Advertise for the buying of a home without the telephone number and the name of the retailer.

 

R 125.1402 Accounts and records; record of homes bought, sold, or exchanged; content; application for certificate of manufactured home ownership; purchase agreement; retention of additional records; consumer deposit records; accounts and records inspection; bond, cash, or security deposit records.

Rule 402. (1) In addition to accounts and records that are required by local ordinances, by other laws, or as prescribed elsewhere in these rules, a retailer shall maintain a record of all homes bought, sold, or exchanged for 4 years. The record shall include all of the following entries:

(a)    The date each home is taken into inventory.

(b)    The name and address of the person from whom the home was obtained.

(c)    The purchase or stock number of the home.

(d)    The identification number of the home.

(e)    The manufacturer’s trade name.

(f)    The year of manufacture and model name or number of the home.

(g)    The dates bought, sold, and exchanged.

(h)    The name and address of the purchaser.

(2)   If a retailer is selling or brokering the home, except to another retailer that will be holding the home for resale, the retailer or its authorized representative shall prepare and file an application for a certificate of manufactured home ownership, which shall include any lien held against the home. If a retailer is selling or brokering the sale of a home that it was holding for resale, except to another retailer that will be holding the home for resale, it shall also file the application for a certificate of manufactured home ownership. The application shall be on a form prescribed by the commission and shall be filed with the department.

(3)   All sales of a home shall be executed by purchase agreement.

(4)   A retailer shall retain all of the following documents for 4 years:

(a)    A copy of the manufacturer’s invoice for each new home.

(b)      A copy of each purchase agreement, as defined in these rules, with any attachments needed to complete the purchase agreement for each home bought, sold, and exchanged.

(c)    The retailer’s copy of the validated application for a certificate of manufactured home ownership.

(d)    Service records for each home sold. If the home is pre-owned, all records that the retailer may have knowledge of shall be retained.

(e)     A list of all options purchased with a specific home, unless otherwise contained in the purchase agreement.

(f)    A copy of the retail installment sales agreement for all retailer-arranged financing.

(5)   A retailer that maintains an escrow account shall maintain a separate record of consumer deposits at its principal place of business for 4 years. The records shall consist of all of the following:

(a)      A record that shows the chronological sequence in which consumer deposits are received and disbursed.

 

 

(b)    For consumer deposits received, the record shall include all of the following information:

(i)    The date of receipt.

(ii)    The name of the individual who is giving the consumer deposit.

(iii)    The name of the individual receiving the consumer deposit.

(iv)    The amount.

(c)     If the consumer deposit is in the form of collateral or security other than cash or a cash negotiable instrument, then the record shall specifically identify the collateral or security, and the cash value shall be the same as contained in the purchase agreement.

(d)    For disbursements, the record shall include all of the following information:

(i)    The date.

(ii)    The payee.

(iii)    The check number.

(iv)    The amount.

(e)    A running balance shall be shown after each entry of receipt and disbursement.

(6) All accounts and records that are required by these rules to be retained shall be available for  inspection by an authorized representative of the department during normal business hours.

(7)(6) A retailer who maintains a bond, cash, or security deposits in place of an escrow account shall maintain a record for 4 years consisting of the following:

(a)    For consumer deposits received, the record shall include all of the following information:

(i)    The date of receipt.

(ii)    The name of the individual who is giving the consumer deposit.

(iii)    The name of the individual receiving the consumer deposit.

(iv)    The amount.

(b)    If the consumer deposit is collateral or security other than cash or a cash negotiable instrument, then the record shall specifically identify the collateral or security, and the cash value shall be the same as contained in the purchase agreement.

(c)    For disbursements, the record shall include all of the following information:

(i)    The date.

(ii)    The payee.

(iii)    The check number.

(iv)    The amount.

(8)(7) The retail installment contract shall disclose all arrangements made between the retailer and the consumer regarding the down payment consumer deposit, such as any of the following:

(a)    Trade-ins.

(b)    Rebates.

(c)    Promissory notes.

(d)    Cash.

 

R 125.1403 Consumer deposits; providing consumer with executed purchase agreement; recording amount of down payment consumer deposit; refunds; notice to consumer of intent to cancel purchase agreement; accepting deposits and agreements in name of retailer; escrow accounts; alternative to escrow account; notice of refund on purchase agreement.

Rule 403. (1) Before receiving a consumer deposit, a retailer shall give the consumer an executed purchase agreement.

(2)   Unless the retailer has a consumer deposit bond or cash or security deposits under subrule (9) of this rule, a consumer deposit shall be placed in an escrow account and remain there until the closing. After the closing, the retailer may transfer the deposit to a general account.

 

 

(2)(3) A retailer shall record the exact amount of the down payment consumer deposit on each request for financing that is sent to a lending institution.

(3)(4) A retailer shall refund to a consumer the total amount of a consumer deposit on the purchase of a home not more than 15 banking days after a request for financing has been rejected by the lending institution or if the consumer cancels the purchase agreement before the binding date under subrule  (8)(13) of this rule. The consumer shall notify the retailer, in writing, of his or her intent to cancel the purchase agreement. The notification shall be delivered to the retailer by certified mail postmarked before the close of the business day on the binding date to be eligible for return of the consumer deposit. A retailer has no obligation to refund the consumer deposit if the consumer cancels the purchase agreement of a new or pre-owned home after the binding date. As used in this subsection subrule, “binding date” means either 7 days after the date that a purchaser of a home receives a legible copy of the executed purchase agreement or the time  at which the purchase agreement is executed if an application for certificate of manufactured home ownership is executed within 7 days.

(4)(5) An employee who accepts consumer deposits and purchase agreements in the name of a retailer shall be deemed to be is authorized by the retailer to accept the deposits.

(5)(6) As a condition of licensing, a retailer shall establish an escrow account, post a consumer deposit bond, or deposit cash or other securities in compliance with the provisions of section 24(c) of the act for the protection of consumer deposits received by the retailer.

(6)(7) If a retailer establishes an escrow account, it the retailer shall place all consumer cash deposits or similar negotiable instruments of the consumer’s deposit in the escrow account by the end of the second banking day following receipt. Escrow accounts shall be maintained as checking accounts.

(7)(8) A retailer may maintain more than 1an escrow account at each location where it maintains records. A retailer may maintain not more than $500.00 of its own funds in each deposit escrow account to cover bank service charges and to avoid the account being closed or overdrawn if there are no other funds in the account. The funds shall be accounted for in a bookkeeping system as prescribed in these rules.

(8)(9) In place of an escrow account, a retailer may maintain, for each location, a consumer deposit bond or cash or security deposits in an amount equal to the highest monthly receipts of consumer cash deposits and cash value of other security recorded over the previous 3 years. If the highest monthly receipts formula is used to determine the amount of the bond or deposit, then the amount of the bond or deposit shall be adjusted to reflect the previous 3 years’ experience before a license is renewed. If at any time the consumer deposits received exceed the amount of the bond or deposit established under the formula, then the retailer shall immediately increase the amount of the bond or deposit or escrow the excess amount.

(9)(10) If a retailer posts a bond or deposits cash or other securities, then the retailer who files an initial application shall maintain the bond, cash, or other securities at a minimum of $10,000.00 per location until sufficient data is available to comply with the formula. If the retailer has more than 1 location, then the required bonds or deposits may be combined into 1 bond or deposit.

(10)(11) All bonds shall be made out payable to the “State of Michigan” on a form prescribed by the department and shall accompany an application for a retailer’s license. All cash or security deposits shall be deposited with the State of Michigan upon application for a retailer’s license. If the application is for a renewal license only, and if a copy of the bond is on file and the bond is continuous or if the cash or securities are on deposit, then this subrule shall not apply.

(11)(12) If a retailer establishes an escrow account, then the retailer shall file, with the department, on a form prescribed by the commission department, an affidavit attesting to the fact that account has been established. The affidavit shall be filed as an enclosure to the retailer license application.

(12)(13) The front of each purchase agreement shall contain the following statement in not less than 8- point, Gothic boldfaced, all caps type: