Mobile/Manufactured
Home Bills Need More Teeth
(As
reported on in 1999. Since that time, new legislation has
been introduced to help solve this problem - thanks to AARP
- seemingly the only entity taking on this issue)
(Dateline:
1999)
...Hopefully, more protective measurers have been enacted since
this original time frame...
A
recent AARP (American Association of Retired Persons) survey
found that more than three-fourths of new manufactured-housing
owners have had significant problems with their homes. Even
though 95 percent of these homes carried a warranty, only about
a third of the homes with problems were repaired under the warranty,
leaving two-thirds of owners to pay for the repairs out of their
own pockets or not fix the problem.
With
manufactured housing representing more than one-third of all
single family homes being sold today and providing housing for
more than 19 million people (44 percent age 50 or older), Congress
is seeking to update the 1974 Manufactured Housing Act. Yet
the current legislation fails to address key consumer concerns
with regard to safety, quality and warranty protections. Moreover,
it gives individual states exclusive authority over installation
standards.
AARP's
survey shows current federal standards for the manufacturing
of manufactured homes are not adequately enforced nationwide.
AARP believes new legislation must include a comprehensive warranty
and a guarantee of proper installation.
For
many people, manufactured housing is the gateway to the American
dream of owning a home. But without national standards for safety,
quality and installation, plus enforceable warranty protections,
that dream can quickly become a nightmare.
If
you have a complaint against a seller or manufacturer of manufactured
housing, use the following toll-free numbers to call the U.S.
Department of Housing and Urban Development at (800) 927-2891
or the Federal Trade Commission at (877) 382-4357. I urge you
to contact your members of Congress to tell them how important
national standards and enforceable warranty protections are
for consumers.
John
Sisker
Founding Director
Manufactured
Home Owners Network
AARP
to the Rescue
To:
John Sisker, Founding Director:
Manufactured Home Owners Network
From: Martin Corry, Director, Federal Affairs, AARP
Subject: Pending Legislation Affecting Manufactured Housing
Homeowners
Congress
is expected to act soon on legislation to revise and update
the Manufactured Housing Construction and Safety Standards Act
of 1974, which regulates the manufactured housing (mobile home)
industry. The House Banking Subcommittee on Housing will hold
a hearing on HR1776. Title VII of HR1776 contains the same language
as HR710, the "stand-alone" manufactured housing bill that was
introduced by Representative Rick Lazio. A Senate hearing on
S1452, introduced by Senator Richard Shelby, will follow soon
thereafter. The House and Senate bills are very similar to one
another.
AARP
has been monitoring the progress of these proposals. As many
of you are aware, the current Congressional proposals to revise
the Act fall short in addressing the concerns of consumers regarding
safety and quality protections.
As
an organization representing owners of manufactured homes, we
thought you might find our analysis of these bills and our suggestions
for improvement of interest. An information sheet is attached.
If you share our concerns, you may want to contact members of
your association and urge them to contact their US Representative
and Senators as soon as possible. You may have already alerted
your association members to problems in this legislation. Since
Congressional hearings will be taking place soon, there is an
urgent need for Members of Congress to hear from their constituents
about how the proposed legislation will affect them.
If
you have any questions or are in need of further information,
please feel free to contact Debra Alvarez or Roy Green of AARP's
Federal Affairs staff by phone at (202) 434-3800, or by fax
at (202) 434-3758.
Consumer
Concerns Regarding Manufactured Housing Legislation
"Consensus
Committee"
1.
Concern:
HR710, Title VII of HR1776, and S1452 will create a "consensus
committee" to make recommendations to the Secretary of the Department
of Housing and Urban Development (HUD) regarding manufactured
housing construction safety and quality standards. The current
bills heavily weight this committee in favor of the manufactured
housing industry, leaving homeowners with little representation.
Recommendation:
The number of members on the consensus committee representing
homeowners and other consumer interests should be increased
so that there are equal numbers of representatives of 1) homeowners/consumers,
2) industry, and 3) public officials/general interest.
2.
Concern:
HR710, Title VII of HR1776 and S1452 would allow the consensus
committee to recommend enforcement standards to the Secretary
of HUD. This would create a likely conflict of interest by which
a group (the manufactured housing industry) proposes enforcement
standards under which they themselves will be regulated. With
an industry-dominated consensus committee, it would be a clear
case of the fox guarding the hen house.
Recommendation:
The consensus committee should have authority to make recommendations
to the HUD Secretary regarding construction and safety standards
only, not enforcement standards.
Warranties...
1. Warranties for Manufacturing
Concern:
Neither current law nor proposed legislation (HR710, Title VII
of HR1776, and S1452 provide warranties protecting against manufacturing
defects in manufactured housing.
Recommendation:
Manufacturers should be required to provide a 5-year warranty
against all defects, including; those defects in plumbing, electrical,
air distribution, structural systems, parts and labor. These
warranties should be fully enforceable.
2.
Warranties for Installation
Concern:
Neither current law nor proposed legislation (HR710, Title VII
of HR1776, and S1452 provide warranties protecting against defects
resulting from improper installation.
Recommendation:
Retailers should be required to provide a 2-year warranty covering
problems resulting from faulty installation. These warranties
should be fully enforceable.
AARP
NEWS
American Association of Retired Persons
MORE
THAN THREE IN FOUR MANUFACTURED HOMES HAVE PROBLEMS.
NEW AARP SURVEY OF OWNERS FINDS PENDING LEGISLATION
WILL NOT PROTECT CONSUMERS.
For
further inquiry, contact AARP Communications
601 E. Street, NW
Washington, DC 20049
(202) 434-2560
Fax: (202) 434-2588
www.aarp.org
CONTACT:
Nancy Thompson or Dave Nathan
(202) 434-2560
WASHINGTON,
DC -- More than three quarters of owners of manufactured housing
-- often called mobile homes -- have had significant problems
with their home, a new survey commissioned by AARP shows.
Nearly
three-fifths of the owners -- 57 percent -- say that they have
multiple problems involving construction, installation, systems,
or appliances of their homes, the survey finds.
And
while 95 percent state that their manufactured home carried
a warranty, only about one-third of homes with problems were
successfully repaired under that warranty, the owners say. About
one-third of the owners report that they fixed the problem at
their own expense. In the remaining third of cases, nothing
at all was done, and the problem continues, according to the
survey.
The
AARP survey, conducted in May and June, comes against a backdrop
of renewed Congressional interest in manufactured housing. Legislation
now before Congress would update the federal 1974 Manufactured
Housing Act.
According
to the US Census Bureau, 44 percent of mobile home owners are
age 50 and older.
Noting that current federal standards for manufacturing of manufactured
homes are not adequately enforced nationwide, AARP President
Joe Perkins said at a news conference here today:
"Manufactured
housing is affordable housing, but there is more to affordability
than a low price. Manufactured home buyers are not protected
sufficiently now and will not be in the future without tougher
standards."
Perkins
said the new survey dramatically points out the need for new
standards and enforceable warranties. "AARP believes that for
the legislation to adequately protect consumers, it must include,
among other provisions, a requirement for a comprehensive manufactured
housing warranty and a guarantee of properly performed installation,"
Perkins said. He urged Congress to act quickly to protect future
buyers.
Across
the United States, mobile/manufactured homes represent more
than one-third of single-family homes now being sold, the survey
states. Mobile/manufactured homes provide housing for approximately
seven percent of the population, as owners and renters. Census
figures show that, in 1998, 43 percent of all mobile homes were
in the Southeast United States and 23 percent more in the Southwest.
Fourteen percent were in the West, 12 percent in the Midwest,
and eight percent in the Northeast.
Among
the other key findings of the study:
-The
most frequently-mentioned problems home owners had with their
homes were improper fit or finish of interior parts, such as
cabinets (37 percent); improper fit (or leaks) in doors or windows
(35 percent); and problems with actual construction such as
cracks or separation of walls (31 percent). Fifteen percent
say they experienced problems with setup or installation of
the home.
-Most
poll respondents (61 percent) say that the problems of greatest
concern occurred during the first year of ownership. Nearly
30 percent more say that the problems developed in the first
five years.
The
random telephone survey was of manufactured housing owners who
had purchased new homes within the last eight years, and was
conducted for AARP by National Family Opinion Research. The
survey sample was drawn from a nationally representative panel
of approximately 35,000 adults whose mobile home is their primary
residence. Based on a sample of 933 respondents, the survey
had a potential sampling error of plus or minus three percent.
AARP
is the nation's leading organization for people 50 and older.
It serves their needs and interests through information and
education, advocacy, and community services, which are provided
by a network of local chapters and experienced volunteers throughout
the country. The organization also offers members a wide range
of special benefits and services, including Modem Maturity magazine
and the monthly Bulletin.
Disclosure...
