165
(2) in subsection (f), by striking paragraph (1)
and inserting the following new paragraph:
‘‘(1) be made for a period of not less than 25 nor
greater than 40 years from the date the loan was
made and may provide for amortization of the loan
over a period of not to exceed 40 years with a final
payment of the balance due at the end of the loan
term;’’;
(3) in subsection (i)(2), by striking ‘‘(A) convey-
ance to the Secretary’’ and all that follows through
‘‘(C) assignment’’ and inserting ‘‘(A) submission to
the Secretary of a claim for payment under the guar-
antee, and (B) assignment’’;
(4) in subsection (s), by adding at the end the
following new subsection:
‘‘(4) INDIAN ORGANIZATION.—The term ‘Indian
organization’ means the governing body of an Indian
tribe, band, group, pueblo, or community, including
native villages or native groups, as defined by the
Alaska Claims Settlement Act (43 U.S.C. 1601 et
seq.), (including corporations organized by the Kenai,
Juneau, Sitka, and Kodiak) which is eligible for serv-
ices from the Bureau of Indian Affairs or an entity
established or recognized by the governing body for the
purpose of financing economic development.’’;
166
(5) in subsection (t), by inserting before the pe-
riod at the end the following: ‘‘to provide guarantees
under this section for eligible loans having an aggre-
gate principal amount of $500,000,000’’;
(6) by striking subsection (l);
(7) by redesignating subsections (m) through (u)
as subsections (l) through (t), respectively;
(8) by adding at the end the following new sub-
sections:
‘‘(u) FEE AUTHORITY.—
‘‘(1) IN GENERAL.—Any amounts collected by the
Secretary pursuant to the fees charged to lenders for
loan guarantees issued under this section shall be used
to offset costs (as defined by section 502 of the Con-
gressional Budget Act of 1974 (2 U.S.C. 661a)) of
loan guarantees made under this section.
‘‘(2) EXCESS
FUNDS.—Any fees described in
paragraph (1) collected in excess of the amount re-
quired in paragraph (1) during a fiscal year, shall be
available to the Secretary, without further appropria-
tion and without fiscal year limitation, for use by the
Secretary for costs of administering (including moni-
toring) program activities authorized pursuant to this
section and shall be in addition to other funds made
available for this purpose.
167
‘‘(v) DEFAULTS OF LOANS SECURED BY RESERVATION
LANDS.—In the event of a default involving a loan to an
Indian tribe or tribal corporation made under this section
which is secured by an interest in land within such tribe’s
reservation (as determined by the Secretary of the Interior),
including a community in Alaska incorporated by the Sec-
retary of the Interior pursuant to the Indian Reorganiza-
tion Act (25 U.S.C. 461 et seq.), the lender shall only pursue
liquidation after offering to transfer the account to an eligi-
ble tribal member, the tribe, or the Indian housing author-
ity serving the tribe. If the lender subsequently proceeds to
liquidate the account, the lender shall not sell, transfer, or
otherwise dispose of or alienate the property except to one
of the entities described in the preceding sentence.’’.
SEC. 1007. ENFORCEMENT PROVISIONS.
(a) IN GENERAL.—Title V of the Housing Act of 1949
(42 U.S.C. 1471 et seq.) is amended by adding after section
542 the following:
‘‘SEC. 543. ENFORCEMENT PROVISIONS.
‘‘(a) EQUITY SKIMMING.—
‘‘(1) 
CRIMINAL
PENALTY.—Whoever, 
as 
an
owner, agent, employee, or manager, or is otherwise
in custody, control, or possession of property that is
security for a loan made or guaranteed under this
title, willfully uses, or authorizes the use, of any part
168
of the rents, assets, proceeds, income, or other funds
derived from such property, for any purpose other
than to meet actual, reasonable, and necessary ex-
penses of the property, or for any other purpose not
authorized by this title or the regulations adopted
pursuant to this title, shall be fined under title 18,
United States Code, or imprisoned not more than 5
years, or both.
‘‘(2) CIVIL SANCTIONS.—An entity or individual
who as an owner, operator, employee, or manager, or
who acts as an agent for a property that is security
for a loan made or guaranteed under this title where
any part of the rents, assets, proceeds, income, or
other funds derived from such property are used for
any purpose other than to meet actual, reasonable,
and necessary expenses of the property, or for any
other purpose not authorized by this title or the regu-
lations adopted pursuant to this title, shall be subject
to a fine of not more than $25,000 per violation. The
sanctions provided in this paragraph may be imposed
in addition to any other civil sanctions or civil mone-
tary penalties authorized by law.
‘‘(b) CIVIL MONETARY PENALTIES.—
‘‘(1) IN GENERAL.—The Secretary may, after no-
tice and opportunity for a hearing, impose a civil
169
monetary penalty in accordance with this subsection
against any individual or entity, including its own-
ers, officers, directors, general partners, limited part-
ners, or employees, who knowingly and materially
violate, or participate in the violation of, the provi-
sions of this title, the regulations issued by the Sec-
retary pursuant to this title, or agreements made in
accordance with this title, by—
‘‘(A) submitting information to the Sec-
retary that is false;
‘‘(B) providing the Secretary with false cer-
tifications;
‘‘(C) failing to submit information re-
quested by the Secretary in a timely manner;
‘‘(D) failing to maintain the property sub-
ject to loans made or guaranteed under this title
in good repair and condition, as determined by
the Secretary;
‘‘(E) failing to provide management for a
project which received a loan made or guaran-
teed under this title that is acceptable to the Sec-
retary; or
‘‘(F) failing to comply with the provisions
of applicable civil rights statutes and regula-
tions.
170
‘‘(2) CONDITIONS
FOR
RENEWAL
OR
EXTEN-
SION.—The Secretary may require that expiring loan
or assistance agreements entered into under this title
shall not be renewed or extended unless the owner exe-
cutes an agreement to comply with additional condi-
tions prescribed by the Secretary, or executes a new
loan or assistance agreement in the form prescribed
by the Secretary.
‘‘(3) AMOUNT.—
‘‘(A) IN GENERAL.—The amount of a civil
monetary penalty imposed under this subsection
shall not exceed the greater of—
‘‘(i) twice the damages the Department
of Agriculture, the guaranteed lender, or the
project that is secured for a loan under this
section suffered or would have suffered as a
result of the violation; or
‘‘(ii) $50,000 per violation.
‘‘(B) DETERMINATION.—In determining the
amount of a civil monetary penalty under this
subsection, 
the 
Secretary 
shall 
take 
into
consideration—
‘‘(i) the gravity of the offense;
171
‘‘(ii) any history of prior offenses by
the violator (including offenses occurring
prior to the enactment of this section);
‘‘(iii) the ability of the violator to pay
the penalty;
‘‘(iv) any injury to tenants;
‘‘(v) any injury to the public;
‘‘(vi) any benefits received by the viola-
tor as a result of the violation;
‘‘(vii) deterrence of future violations;
and
‘‘(viii) such other factors as the Sec-
retary may establish by regulation.
‘‘(4) PAYMENT OF PENALTIES.—No payment of a
penalty assessed under this section may be made from
funds provided under this title or from funds of a
project which serve as security for a loan made or
guaranteed under this title.
‘‘(5) REMEDIES FOR NONCOMPLIANCE.—
‘‘(A) JUDICIAL INTERVENTION.—If a person
or entity fails to comply with a final determina-
tion by the Secretary imposing a civil monetary
penalty under this subsection, the Secretary may
request the Attorney General of the United States
to bring an action in an appropriate United
172
States district court to obtain a monetary judg-
ment against such individual or entity and such
other relief as may be available. The monetary
judgment may, in the court’s discretion, include
the attorney’s fees and other expenses incurred by
the United States in connection with the action.
‘‘(B) 
REVIEWABILITY
OF
DETERMINA-
TION.—In an action under this paragraph, the
validity and appropriateness of a determination
by the Secretary imposing the penalty shall not
be subject to review.’’.
(b) CONFORMING AMENDMENT.—Section 514 of the
Housing Act of 1949 (42 U.S.C. 1484) is amended by strik-
ing subsection (j).
SEC. 1008. AMENDMENTS TO TITLE 18 OF UNITED STATES
CODE.
(a) MONEY LAUNDERING.—Section 1956(c)(7)(D) of
title 18, United States Code, is amended by inserting ‘‘any
violation of section 543(a)(1) of the Housing Act of 1949
(relating to equity skimming),’’ after ‘‘coupons having a
value of not less than $5,000,’’.
(b) OBSTRUCTION
OF FEDERAL AUDITS.—Section
1516(a) of title 18, United States Code, is amended by in-
serting ‘‘or relating to any property that is security for a
173
loan that is made or guaranteed under title V of the Hous-
ing Act of 1949,’’ before ‘‘shall be fined under this title’’.
TITLE XI—MANUFACTURED
HOUSING IMPROVEMENT
SEC. 1101. SHORT TITLE AND REFERENCES.
(a) SHORT TITLE.—This title may be cited as the
‘‘Manufactured Housing Improvement Act’’.
(b) REFERENCES.—Whenever in this title an amend-
ment is expressed in terms of an amendment to, or repeal
of, an Act, a section, or any other provision, the reference
shall be considered to be made to that section or other provi-
sion of the National Manufactured Housing Construction
and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).
SEC. 1102. FINDINGS AND PURPOSES.
Section 602 (42 U.S.C. 5401) is amended to read as
follows:
‘‘FINDINGS AND PURPOSES
‘‘SEC. 602. (a) FINDINGS.—The Congress finds that—
‘‘(1) manufactured housing plays a vital role in
meeting the housing needs of the Nation; and
‘‘(2) manufactured homes provide a significant
resource for affordable homeownership and rental
housing accessible to all Americans.
‘‘(b) PURPOSES.—The purposes of this title are—
‘‘(1) to facilitate the acceptance of the quality,
durability, safety, and affordability of manufactured
174
housing within the Department of Housing and
Urban Development;
‘‘(2) to facilitate the availability of affordable
manufactured homes and to increase homeownership
for all Americans;
‘‘(3) to provide for the establishment of practical,
uniform, and, to the extent possible, performance-
based Federal construction standards;
‘‘(4) to encourage innovative and cost-effective
construction techniques;
‘‘(5) to protect owners of manufactured homes
from unreasonable risk of personal injury and prop-
erty damage;
‘‘(6) to establish a balanced consensus process for
the development, revision, and interpretation of Fed-
eral construction and safety standards for manufac-
tured homes and related regulations for the enforce-
ment of such standards;
‘‘(7) to ensure uniform and effective enforcement
of Federal construction and safety standards for man-
ufactured homes; and
‘‘(8) to ensure that the public interest in, and
need for, affordable manufactured housing is duly
considered in all determinations relating to the Fed-
eral standards and their enforcement.’’.
175
SEC. 1103. DEFINITIONS.
(a) IN GENERAL.—Section 603 (42 U.S.C. 5402) is
amended—
(1) in paragraph (2), by striking ‘‘dealer’’ and
inserting ‘‘retailer’’;
(2) in paragraph (12), by striking ‘‘and’’ at the
end;
(3) in paragraph (13), by striking the period at
the end and inserting a semicolon; and
(4) by adding at the end the following new para-
graphs:
‘‘(14) ‘administering organization’ means the
recognized, voluntary, private sector, consensus stand-
ards body with specific experience in developing
model residential building codes and standards in-
volving all disciplines regarding construction and
safety that administers the consensus standards devel-
opment process;
‘‘(15) ‘consensus committee’ means the committee
established under section 604(a)(3);
‘‘(16) ‘consensus standards development process’
means the process by which additions, revisions, and
interpretations to the Federal manufactured home
construction and safety standards and enforcement
regulations shall be developed and recommended to the
Secretary by the consensus committee;
176
‘‘(17) ‘primary inspection agency’ means a State
agency or private organization that has been ap-
proved by the Secretary to act as a design approval
primary inspection agency or a production inspection
primary inspection agency, or both;
‘‘(18) ‘design approval primary inspection agen-
cy’ means a State agency or private organization that
has been approved by the Secretary to evaluate and
either approve or disapprove manufactured home de-
signs and quality control procedures;
‘‘(19) ‘production inspection primary inspection
agency’ means a State agency or private organization
that has been approved by the Secretary to evaluate
the ability of manufactured home manufacturing
plants to comply with approved quality control proce-
dures and with the Federal manufactured home con-
struction and safety standards promulgated here-
under;
‘‘(20) ‘installation standards’ means reasonable
specifications for the installation of a manufactured
home, at the place of occupancy, to ensure proper
siting, the joining of all sections of the home, and the
installation of stabilization, support, or anchoring
systems; and
‘‘(21) ‘monitoring’—
178
(B) in subsection (b)(3), by striking ‘‘dealer
or dealers’’ and inserting ‘‘retailer or retailers’’;
and
(C) in subsections (d) and (f), by striking
‘‘dealers’’ each place it appears and inserting
‘‘retailers’’;
(4) in section 616 (42 U.S.C. 5415), by striking
‘‘dealer’’ and inserting ‘‘retailer’’; and
(5) in section 623(c)(9), by striking ‘‘dealers’’
and inserting ‘‘retailers’’.
SEC. 1104. FEDERAL MANUFACTURED HOME CONSTRUC-
TION AND SAFETY STANDARDS.
Section 604 (42 U.S.C. 5403) is amended—
(1) by striking subsections (a) and (b) and in-
serting the following new subsections:
‘‘(a) ESTABLISHMENT.—
‘‘(1) AUTHORITY.—The Secretary shall establish,
by order, appropriate Federal manufactured home
construction and safety standards, each of which—
‘‘(A) shall—
‘‘(i) be reasonable and practical;
‘‘(ii) meet high standards of protection
consistent with the enumerated purposes of
this title; and
179
‘‘(iii) where appropriate, be perform-
ance-based and objectively stated; and
‘‘(B) except as provided in subsection (b),
shall be established in accordance with the con-
sensus standards development process.
‘‘(2) CONSENSUS STANDARDS AND REGULATORY
DEVELOPMENT PROCESS.—
‘‘(A) INITIAL AGREEMENT.—Not later than
180 days after the date of enactment of the Man-
ufactured Housing Improvement Act, the Sec-
retary shall enter into a contract with an ad-
ministering organization. The contractual agree-
ment shall—
‘‘(i) terminate on the date on which a
contract is entered into under subparagraph
(B); and
‘‘(ii) require the administering organi-
zation to—
‘‘(I) appoint the initial members
of the consensus committee under para-
graph (3);
‘‘(II) administer the consensus
standards development process until
the termination of that agreement; and
180
‘‘(III) administer the consensus
development and interpretation process
for procedural and enforcement regula-
tions and regulations specifying the
permissible scope and conduct of moni-
toring until the termination of that
agreement.
‘‘(B) 
COMPETITIVELY
PROCURED
CON-
TRACT.—Upon the expiration of the 4-year pe-
riod beginning on the date on which all members
of the consensus committee are appointed under
paragraph (3), the Secretary shall, using com-
petitive procedures (as such term is defined in
section 4 of the Office of Federal Procurement
Policy Act), enter into a competitively awarded
contract with an administering organization.
The administering organization shall administer
the consensus process for the development and in-
terpretation of the Federal standards, the proce-
dural and enforcement regulations and regula-
tions specifying the permissible scope and con-
duct of monitoring in accordance with this title.
‘‘(C) 
PERFORMANCE
REVIEW.—The
Secretary—
181
‘‘(i) shall periodically review the per-
formance of the administering organization;
and
‘‘(ii) may replace the administering
organization with another qualified tech-
nical or building code organization, pursu-
ant to competitive procedures, if the Sec-
retary determines in writing that the ad-
ministering organization is not fulfilling
the terms of the agreement or contract to
which the administering organization is
subject or upon the expiration of the agree-
ment or contract.
‘‘(3) CONSENSUS COMMITTEE.—
‘‘(A) PURPOSE.—There is established a
committee to be known as the ‘consensus com-
mittee’, which shall, in accordance with this
title—
‘‘(i) provide periodic recommendations
to the Secretary to adopt, revise, and inter-
pret the Federal manufactured housing con-
struction and safety standards in accord-
ance with this subsection;
‘‘(ii) provide periodic recommendations
to the Secretary to adopt, revise, and inter-
182
pret the procedural and enforcement regula-
tions, including regulations specifying the
permissible scope and conduct of monitoring
in accordance with this subsection; and
‘‘(iii) be organized and carry out its
business in a manner that guarantees a fair
opportunity for the expression and consider-
ation of various positions and for public
participation.
‘‘(B) MEMBERSHIP.—The consensus com-
mittee shall be composed of—
‘‘(i) 21 voting members appointed, sub-
ject to approval by the Secretary, by the ad-
ministering organization from among indi-
viduals who are qualified by background
and experience to participate in the work of
the consensus committee; and
‘‘(ii) 1 member appointed by the Sec-
retary to represent the Secretary on the con-
sensus committee, who shall be a nonvoting
member.
‘‘(C) DISAPPROVAL.—The Secretary may
disapprove, in writing with the reasons set forth,
the appointment of an individual under sub-
paragraph (B)(i).
183
‘‘(D) SELECTION
PROCEDURES
AND
RE-
QUIREMENTS.—Each member shall be appointed
in accordance with the selection procedures,
which shall be established by the Secretary and
which shall be based on the procedures for con-
sensus committees promulgated by the American
National Standards Institute (or successor orga-
nization), to ensure equal representation on the
consensus committee of the following interest cat-
egories:
‘‘(i) PRODUCERS.—7 producers or re-
tailers of manufactured housing.
‘‘(ii) USERS.—7 persons representing
consumer interests, such as consumer orga-
nizations, recognized consumer leaders, and
owners who are residents of manufactured
homes.
‘‘(iii) GENERAL INTEREST AND PUBLIC
OFFICIALS.—7 general interest and public
official members.
‘‘(E) BALANCING OF INTERESTS.—
‘‘(i) IN GENERAL.—In order to achieve
a proper balance of interests on the con-
sensus committee—
184
‘‘(I) the administering organiza-
tion in its appointments shall ensure
that all directly and materially af-
fected interests have the opportunity
for fair and equitable participation
without dominance by any single in-
terest; and
‘‘(II) the Secretary may reject the
appointment of any 1 or more individ-
uals in order to ensure that there is
not dominance by any single interest.
‘‘(ii) DOMINANCE
DEFINED.—In this
subparagraph, the term ‘dominance’ means
a position or exercise of dominant author-
ity, leadership, or influence by reason of su-
perior leverage, strength, or representation.
‘‘(F) ADDITIONAL QUALIFICATIONS.—
‘‘(i) FINANCIAL
INDEPENDENCE.—No
individual appointed under subparagraph
(D)(ii) shall have, and 3 of individuals ap-
pointed under subparagraph (D)(iii) shall
not have—
‘‘(I) a significant financial inter-
est in any segment of the manufac-
tured housing industry; or
185
‘‘(II) a significant relationship to
any person engaged in the manufac-
tured housing industry.
‘‘(ii) POST-EMPLOYMENT BAN.—An in-
dividual appointed under clause (ii) or (iii)
of subparagraph (D) shall be subject to a
ban disallowing compensation from the
manufactured housing industry during the
period of, and for the 1-year period after,
membership of that individual on the con-
sensus committee.
‘‘(G) MEETINGS.—
‘‘(i) NOTICE; OPEN TO PUBLIC.—The
consensus committee shall provide advance
notice of each meeting of the consensus com-
mittee to the Secretary and publish advance
notice of each such meeting in the Federal
Register. All meetings of the consensus com-
mittee shall be open to the public.
‘‘(ii) REIMBURSEMENT.—Members of
the consensus committee in attendance at
the meetings shall be reimbursed for their
actual expenses as authorized by section
5703 of title 5, United States Code, for per-
186
sons employed intermittently in Govern-
ment service.
‘‘(H) INAPPLICABILITY OF OTHER LAWS.—
‘‘(i) ADVISORY COMMITTEE ACT.—The
consensus committee shall not be considered
to be an advisory committee for purposes of
the Federal Advisory Committee Act.
‘‘(ii) TITLE 18.—The members of the
consensus committee shall not be subject to
section 203, 205, 207, or 208 of title 18,
United States Code, to the extent of their
proper participation as members of the con-
sensus committee.
‘‘(iii) ETHICS IN GOVERNMENT ACT OF
1978.—The Ethics in Government Act of
1978 shall not apply to members of the con-
sensus committee to the extent of their prop-
er participation as members of the con-
sensus committee.
‘‘(I) ADMINISTRATION.—The consensus com-
mittee and the administering organization
shall—
‘‘(i) operate in conformance with the
procedures established by the American Na-
tional Standards Institute for the develop-
187
ment and coordination of American Na-
tional Standards; and
‘‘(ii) apply to the American National
Standards Institute and take such other ac-
tions as may be necessary to obtain accredi-
tation from the American National Stand-
ards Institute.
‘‘(J) STAFF.—The administering organiza-
tion shall, upon the request of the consensus com-
mittee, provide reasonable staff resources to the
consensus committee. Upon a showing of need,
the Secretary shall furnish technical support to
any of the various interest categories on the con-
sensus committee.
‘‘(K) DATE
OF
INITIAL
APPOINTMENTS.—
The initial appointments of all of the members
of the consensus committee shall be completed not
later than 90 days after the date on which an
administration 
agreement 
under 
paragraph
(2)(A) is completed with the administering orga-
nization.
‘‘(4) REVISIONS OF STANDARDS.—
‘‘(A) IN GENERAL.—Beginning on the date
on which all members of the consensus committee
are appointed under paragraph (3), the con-
188
sensus committee shall, not less than once during
each 2-year period—
‘‘(i) consider revisions to the Federal
manufactured home construction and safety
standards; and
‘‘(ii) submit proposed revised stand-
ards and regulations, if approved in a vote
of the consensus committee by two-thirds of
the members, to the Secretary in the form of
a proposed rule, including an economic
analysis.
‘‘(B) PUBLICATION OF PROPOSED REVISED
STANDARDS.—
‘‘(i) PUBLICATION
BY
SECRETARY.—
The consensus committee shall provide a
proposed revised standard under subpara-
graph (A)(ii) to the Secretary who shall, not
later than 30 days after receipt, publish
such proposed revised standard in the Fed-
eral Register for notice and comment. Un-
less clause (ii) applies, the Secretary shall
provide an opportunity for public comment
on such proposed revised standard and any
such comments shall be submitted directly
to the consensus committee without delay.
189
‘‘(ii) PUBLICATION OF REJECTED PRO-
POSED
REVISED
STANDARD.—If the Sec-
retary rejects the proposed revised standard,
the Secretary shall publish the rejected pro-
posed revised standard in the Federal Reg-
ister with the reasons for rejection and any
recommended modifications set forth.
‘‘(C) PRESENTATION OF PUBLIC COMMENTS;
PUBLICATION OF RECOMMENDED REVISIONS.—
‘‘(i) PRESENTATION.—Any public com-
ments, views, and objections to a proposed
revised standard published under subpara-
graph (B) shall be presented by the Sec-
retary to the consensus committee upon
their receipt and in the manner received, in
accordance with procedures established by
the American National Standards Institute.
‘‘(ii) 
PUBLICATION
BY
THE
SEC-
RETARY.—The consensus committee shall
provide to the Secretary any revisions pro-
posed by the consensus committee, which the
Secretary shall, not later than 7 calendar
days after receipt, cause to be published in
the Federal Register as a notice of the rec-
ommended revisions of the consensus com-
190
mittee to the standard, a notice of the sub-
mission of the recommended revisions to the
Secretary, and a description of the cir-
cumstances under which the proposed re-
vised standards could become effective.
‘‘(iii) PUBLICATION OF REJECTED PRO-
POSED
REVISED
STANDARD.—If the Sec-
retary rejects the proposed revised standard,
the Secretary shall publish the rejected pro-
posed revised standard in the Federal Reg-
ister with the reasons for rejection and any
recommended modifications set forth.
‘‘(5) REVIEW BY THE SECRETARY.—
‘‘(A) IN GENERAL.—The Secretary shall ei-
ther adopt, modify, or reject a standard, as sub-
mitted by the consensus committee under para-
graph (4)(A).
‘‘(B) TIMING.—Not later than 12 months
after the date on which a standard is submitted
to the Secretary by the consensus committee, the
Secretary shall take action regarding such stand-
ard under subparagraph (C).
‘‘(C) PROCEDURES.—If the Secretary—
191
‘‘(i) adopts a standard recommended
by the consensus committee, the Secretary
shall—
‘‘(I) issue a final order without
further rulemaking; and
‘‘(II) cause the final order to be
published in the Federal Register;
‘‘(ii) determines that any standard
should be rejected, the Secretary shall—
‘‘(I) reject the standard; and
‘‘(II) cause to be published in the
Federal Register a notice to that effect,
together with the reason or reasons for
rejecting the proposed standard; or
‘‘(iii) determines that a standard rec-
ommended by the consensus committee
should be modified, the Secretary shall—
‘‘(I) cause the proposed modified
standard to be published in the Federal
Register, together with an explanation
of the reason or reasons for the deter-
mination of the Secretary; and
‘‘(II) provide an opportunity for
public comment in accordance with
192
section 553 of title 5, United States
Code.
‘‘(D) FINAL
ORDER.—Any final standard
under this paragraph shall become effective pur-
suant to subsection (c).
‘‘(6) FAILURE TO ACT.—If the Secretary fails to
take final action under paragraph (5) and to publish
notice of the action in the Federal Register before the
expiration of the 12-month period beginning on the
date on which the proposed standard is submitted to
the Secretary under paragraph (4)(A)—
‘‘(A) the recommendations of the consensus
committee—
‘‘(i) shall be considered to have been
adopted by the Secretary; and
‘‘(ii) shall take effect upon the expira-
tion of the 180-day period that begins upon
the conclusion of such 12-month period; and
‘‘(B) not later than 10 days after the expi-
ration of such 12-month period, the Secretary
shall cause to be published in the Federal Reg-
ister a notice of the failure of the Secretary to
act, the revised standard, and the effective date
of the revised standard, which notice shall be
deemed to be an order of the Secretary approving
193
the revised standards proposed by the consensus
committee.
‘‘(b) OTHER ORDERS.—
‘‘(1) REGULATIONS.—The Secretary may issue
procedural and enforcement regulations as necessary
to implement the provisions of this title. The con-
sensus committee may submit to the Secretary pro-
posed procedural and enforcement regulations and
recommendations for the revision of such regulations.
‘‘(2) INTERPRETATIVE
BULLETINS.—The Sec-
retary may issue interpretative bulletins to clarify the
meaning of any Federal manufactured home construc-
tion and safety standard or procedural and enforce-
ment regulation. The consensus committee may sub-
mit to the Secretary proposed interpretative bulletins
to clarify the meaning of any Federal manufactured
home construction and safety standard or procedural
and enforcement regulation.
‘‘(3) REVIEW BY CONSENSUS COMMITTEE.—Be-
fore issuing a procedural or enforcement regulation or
an interpretative bulletin—
‘‘(A) the Secretary shall—
‘‘(i) submit the proposed procedural or
enforcement regulation or interpretative
bulletin to the consensus committee; and
194
‘‘(ii) provide the consensus committee
with a period of 120 days to submit written
comments to the Secretary on the proposed
procedural or enforcement regulation or the
interpretative bulletin; and
‘‘(B) if the Secretary rejects any significant
comment provided by the consensus committee
under subparagraph (A), the Secretary shall pro-
vide a written explanation of the reasons for the
rejection to the consensus committee; and
‘‘(C) following compliance with subpara-
graphs (A) and (B), the Secretary shall—
‘‘(i) cause the proposed regulation or
interpretative bulletin and the consensus
committee’s written comments along with
the Secretary’s response thereto to be pub-
lished in the Federal Register; and
‘‘(ii) provide an opportunity for public
comment in accordance with section 553 of
title 5, United States Code.
‘‘(4) REQUIRED
ACTION.—The Secretary shall
act on any proposed regulation or interpretative bul-
letin submitted by the consensus committee by ap-
proving or rejecting the proposal within 120 days
195
from the date the proposal is received by the Sec-
retary. The Secretary shall either—
‘‘(A) approve the proposal and cause the
proposed regulation or interpretative bulletin to
be published for public comment in accordance
with section 553 of title 5, United States Code;
or
‘‘(B) reject the proposed regulation or inter-
pretative bulletin and—
‘‘(i) provide a written explanation of
the reasons for rejection to the consensus
committee; and
‘‘(ii) cause the proposed regulation and
the written explanation for the rejection to
be published in the Federal Register.
‘‘(5) EMERGENCY ORDERS.—If the Secretary de-
termines, in writing, that such action is necessary in
order to respond to an emergency which jeopardizes
the public health or safety, or to address an issue on
which the Secretary determines that the consensus
committee has not made a timely recommendation,
following a request by the Secretary, the Secretary
may issue an order that is not developed under the
procedures set forth in subsection (a) or in this sub-
section, if the Secretary—
196
‘‘(A) provides to the consensus committee a
written description and sets forth the reasons
why emergency action is necessary and all sup-
porting documentation; and
‘‘(B) issues and publishes the order in the
Federal Register.
‘‘(6) CHANGES.—Any statement of policies, prac-
tices, or procedures relating to construction and safety
standards, inspections, monitoring, or other enforce-
ment activities which constitutes a statement of gen-
eral or particular applicability and future offset and
decisions to implement, interpret, or prescribe law of
policy by the Secretary is subject to the provisions of
subsection (a) or (b) of this subsection. Any change
adopted in violation of the provisions of subsection
(a) or (b) of this subsection is void.
‘‘(7) TRANSITION.—Until the date that the con-
sensus committee is appointed pursuant to section
1104(a)(3), the Secretary may issue proposed orders
that are not developed under the procedures set forth
in this section for new and revised standards.’’;
(2) in subsection (d), by adding at the end the
following: ‘‘Federal preemption under this subsection
shall be broadly and liberally construed to ensure that
disparate State or local requirements or standards do
197
not affect the uniformity and comprehensiveness of the
standards promulgated hereunder nor the Federal su-
perintendence of the manufactured housing industry
as established by this title. Subject to section 605,
there is reserved to each State the right to establish
standards for the stabilizing and support systems of
manufactured homes sited within that State, and for
the foundations on which manufactured homes sited
within that State are installed, and the right to en-
force compliance with such standards, except that
such standards shall be consistent with the purposes
of this title and shall be consistent with the design of
the manufacturer.’’;
(3) by striking subsection (e);
(4) in subsection (f), by striking the subsection
designation and all of the matter that precedes para-
graph (1) and inserting the following:
‘‘(e) CONSIDERATIONS IN ESTABLISHING AND INTER-
PRETING STANDARDS AND REGULATIONS.—The consensus
committee, in recommending standards, regulations, and
interpretations, and the Secretary, in establishing stand-
ards or regulations, or issuing interpretations under this
section, shall—’’;
(5) by striking subsection (g);
198
(6) in the first sentence of subsection (j), by
striking ‘‘subsection (f)’’ and inserting ‘‘subsection
(e)’’; and
(7) by redesignating subsections (h), (i), and (j),
as subsections (f), (g), and (h), respectively.
SEC. 1105. ABOLISHMENT OF NATIONAL MANUFACTURED
HOME ADVISORY COUNCIL; MANUFACTURED
HOME INSTALLATION.
(a) IN GENERAL.—Section 605 (42 U.S.C. 5404) is
amended to read as follows:
‘‘SEC. 605. MANUFACTURED HOME INSTALLATION.
‘‘(a) PROVISION OF INSTALLATION DESIGN AND IN-
STRUCTIONS.—A manufacturer shall provide with each
manufactured home, design and instructions for the instal-
lation of the manufactured home that have been approved
by a design approval primary inspection agency. After es-
tablishment of model standards under subsection (b)(2), a
design approval primary inspection agency may not give
such approval unless a design and instruction provides
equal or greater protection than the protection provided
under such model standards.
‘‘(b) MODEL MANUFACTURED HOME INSTALLATION
STANDARDS.—
‘‘(1) PROPOSED MODEL STANDARDS.—Not later
than 18 months after the date on which the initial
199
appointments of all of the members of the consensus
committee are completed, the consensus committee
shall develop and submit to the Secretary proposed
model manufactured home installation standards,
which shall, to the maximum extent possible, taking
into account the factors described in section 604(e), be
consistent with—
‘‘(A) the home designs that have been ap-
proved by a design approval primary inspection
agency; and
‘‘(B) the designs and instructions for the in-
stallation of manufactured homes provided by
manufacturers under subsection (a).
‘‘(2) ESTABLISHMENT OF MODEL STANDARDS.—
Not later than 12 months after receiving the proposed
model standards submitted under paragraph (1), the
Secretary shall develop and establish model manufac-
tured home installation standards, which shall be con-
sistent with—
‘‘(A) the home designs that have been ap-
proved by a design approval primary inspection
agency; and
‘‘(B) the designs and instructions for the in-
stallation of manufactured homes provided by
manufacturers under subsection (a).
200
‘‘(3) FACTORS FOR CONSIDERATION.—
‘‘(A) CONSENSUS
COMMITTEE.—In devel-
oping the proposed model standards under para-
graph (1), the consensus committee shall consider
the factors described in section 604(e).
‘‘(B) SECRETARY.—In developing and es-
tablishing the model standards under paragraph
(2), the Secretary shall consider the factors de-
scribed in section 604(e).
‘‘(c) MANUFACTURED
HOME
INSTALLATION
PRO-
GRAMS.—
‘‘(1) PROTECTION OF MANUFACTURED HOUSING
RESIDENTS DURING INITIAL PERIOD.—During the 5-
year period beginning on the date of enactment of the
Manufactured Housing Improvement Act, no State or
manufacturer may establish or implement any instal-
lation standards that, in the determination of the
Secretary, provide less protection to the residents of
manufactured homes than the protection provided by
the installation standards in effect with respect to the
State or manufacturer, as applicable, on the date of
enactment of the Manufactured Housing Improvement
Act.
‘‘(2) INSTALLATION STANDARDS.—
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‘‘(A) ESTABLISHMENT
OF
INSTALLATION
PROGRAM.—Not later than the expiration of the
5-year period described in paragraph (1), the
Secretary shall establish an installation program
that meets the requirements of paragraph (3) for
the enforcement of installation standards in each
State described in subparagraph (B).
‘‘(B) IMPLEMENTATION
OF
INSTALLATION
PROGRAM.—Beginning on the expiration of the
5-year period described in paragraph (1), the
Secretary shall implement the installation pro-
gram established under subparagraph (A) in
each State that does not have an installation
program established by State law that meets the
requirements of paragraph (3).
‘‘(C) CONTRACTING OUT OF IMPLEMENTA-
TION.—In carrying out subparagraph (B), the
Secretary may contract with an appropriate
agent to implement the installation program es-
tablished under that subparagraph, except that
such agent shall not be a person or entity other
than a government, nor an affiliate or sub-
sidiary of such a person or entity, that has en-
tered into a contract with the Secretary to im-
202
plement any other regulatory program under
this title.
‘‘(3) REQUIREMENTS.—An installation program
meets the requirements of this paragraph if it is a
program regulating the installation of manufactured
homes that includes—
‘‘(A) installation standards that, in the de-
termination of the Secretary, provide protection
to the residents of manufactured homes that
equals or exceeds the protection provided to those
residents by—
‘‘(i) the model manufactured home in-
stallation standards established under sub-
section (b); or
‘‘(ii) the designs and instructions pro-
vided by manufacturers under subsection
(a), if the Secretary determines that such
designs and instructions provide protection
to the residents of the manufactured home
that equals or exceeds the protection pro-
vided by the model manufactured home in-
stallation standards established under sub-
section (b);
‘‘(B) the training and licensing of manufac-
tured home installers; and
203
‘‘(C) inspection of the installation of manu-
factured homes.’’.
(b) CONFORMING AMENDMENTS.—Section 623(c) (42
U.S.C. 5422(c)) is amended—
(1) in paragraph (10), by striking ‘‘and’’ at the
end;
(2) by redesignating paragraph (11) as para-
graph (13); and
(3) by inserting after paragraph (10) the fol-
lowing:
‘‘(11) with respect to any State plan submitted
on or after the expiration of the 5-year period begin-
ning on the date of enactment of the Manufactured
Housing Improvement Act, provides for an installa-
tion program established by State law that meets the
requirements of section 605(c)(3);’’.
SEC. 1106. PUBLIC INFORMATION.
Section 607 (42 U.S.C. 5406) is amended—
(1) in subsection (a)—
(A) by inserting ‘‘to the Secretary’’ after
‘‘submit’’; and
(B) by adding at the end the following:
‘‘The Secretary shall submit such cost and other
information to the consensus committee for eval-
uation.’’;
204
(2) in subsection (d), by inserting ‘‘, the con-
sensus committee,’’ after ‘‘public’’; and
(3) by striking subsection (c) and redesignating
subsections (d) and (e) as subsections (c) and (d), re-
spectively.
SEC. 
1107. 
RESEARCH, 
TESTING, 
DEVELOPMENT, 
AND
TRAINING.
(a) IN GENERAL.—Section 608(a) (42 U.S.C. 5407(a))
is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting a semicolon; and
(3) by adding at the end the following new para-
graphs:
‘‘(4) encouraging the government sponsored hous-
ing entities to actively develop and implement sec-
ondary market securitization programs for FHA
manufactured home loans and those of other loan pro-
grams, as appropriate, thereby promoting the avail-
ability of affordable manufactured homes to increase
homeownership for all people in the United States;
and
‘‘(5) reviewing the programs for FHA manufac-
tured home loans and developing any changes to such
205
programs to promote the affordability of manufac-
tured homes, including changes in loan terms, amor-
tization periods, regulations, and procedures.’’.
(b) DEFINITIONS.—Section 608 (42 U.S.C. 5407) is
amended by adding at the end the following new subsection:
‘‘(c) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) GOVERNMENT SPONSORED HOUSING ENTI-
TIES.—The term ‘government sponsored housing enti-
ties’ means the Government National Mortgage Asso-
ciation of the Department of Housing and Urban De-
velopment, the Federal National Mortgage Associa-
tion, and the Federal Home Loan Mortgage Corpora-
tion.
‘‘(2) FHA MANUFACTURED HOME LOANS.—The
term ‘FHA manufactured home loan’ means a loan
that—
‘‘(A) is insured under title I of the National
Housing Act and is made for the purpose of fi-
nancing alterations, repairs, or improvements on
or in connection with an existing manufactured
home, the purchase of a manufactured home, the
purchase of a manufactured home and a lot on
which to place the home, or the purchase only of
a lot on which to place a manufactured home; or
206
‘‘(B) otherwise insured under the National
Housing Act and made for or in connection with
a manufactured home.’’.
SEC. 1108. FEES.
Section 620 (42 U.S.C. 5419) is amended to read as
follows:
‘‘AUTHORITY TO ESTABLISH FEES
‘‘SEC. 620. (a) IN GENERAL.—In carrying out inspec-
tions under this title, in developing standards and regula-
tions pursuant to section 604, and in facilitating the ac-
ceptance of the affordability and availability of manufac-
tured housing within the Department, the Secretary may—
‘‘(1) establish and collect from manufactured
home manufacturers such reasonable fees as may be
necessary to offset the expenses incurred by the Sec-
retary in connection with carrying out the respon-
sibilities of the Secretary under this title, including—
‘‘(A) conducting inspections and moni-
toring;
‘‘(B) providing funding to States for the ad-
ministration and implementation of approved
State plans under section 623, including reason-
able funding for cooperative educational and
training programs designed to facilitate uniform
enforcement under this title; these funds may be
paid directly to the States or may be paid or
207
provided to any person or entity designated to
receive and disburse such funds by cooperative
agreements among participating States, provided
that such person or entity is not otherwise an
agent of the Secretary under this title;
‘‘(C) providing the funding for a noncareer
administrator and Federal staff personnel for the
manufactured housing program;
‘‘(D) administering the consensus committee
as set forth in section 604; and
‘‘(E) facilitating the acceptance of the qual-
ity, durability, safety, and affordability of man-
ufactured housing within the Department; and
‘‘(2) use any fees collected under paragraph (1)
to pay expenses referred to in paragraph (1), which
shall be exempt and separate from any limitations on
the Department of Housing and Urban Development
regarding full-time equivalent positions and travel.
‘‘(b) CONTRACTORS.—When using fees under this sec-
tion, the Secretary shall ensure that separate and inde-
pendent contractors are retained to carry out monitoring
and inspection work and any other work that may be dele-
gated to a contractor under this title.
‘‘(c) PROHIBITED USE.—Fees collected under sub-
section (a) shall not be used for any purpose or activity
208
not specifically authorized by this title unless such activity
was already engaged in by the Secretary prior to the date
of enactment of this title.
‘‘(d) MODIFICATION.—Any fee established by the Sec-
retary under this section shall only be modified pursuant
to rulemaking in accordance with section 553 of title 5,
United States Code.
‘‘(e) APPROPRIATION AND DEPOSIT OF FEES.—
‘‘(1) IN GENERAL.—There is established in the
Treasury of the United States a fund to be known as
the ‘Manufactured Housing Fees Trust Fund’ for de-
posit of all fees collected pursuant to subsection (a).
These fees shall be held in trust for use only as pro-
vided in this title.
‘‘(2) APPROPRIATION.—Such fees shall be avail-
able for expenditure only to the extent approved in an
annual appropriation Act.’’.
SEC. 1109. DISPUTE RESOLUTION.
Section 623(c) (42 U.S.C. 5422(c)), as amended by sec-
tion 5(b) of this Act, is amended by inserting after para-
graph (11) (as added by section 5(b) of this Act) the fol-
lowing:
‘‘(12) with respect to any State plan submitted
on or after the expiration of the 5-year period begin-
ning on the date of enactment of the Manufactured