[Federal Register Volume 64, Number 170 (Thursday, September 2, 1999)]
[Rules and Regulations]
[Pages 48083-48085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22902]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency
7 CFR Part 1924
RIN 0575-AC11
Manufactured Housing Thermal Requirements
AGENCIES: Rural Housing Service, Rural Business-Cooperative Service,
Rural Utilities Service, Farm Service Agency, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Housing Service (RHS), a part of the former Farmers
Home Administration (FmHA), and now an agency within the Rural
Development mission area of the U.S. Department of Agriculture, is
amending its regulations regarding the thermal requirements for
manufactured homes. The intended effect is to make the references to
thermal requirements for manufactured homes consistent with
requirements for the U.S. Department of Housing and Urban Development
(HUD) zones that correspond to the RHS climatic zones. This will reduce
the burden on the manufactured housing industry, RHS field personnel,
and most importantly RHS customers.
EFFECTIVE DATE: October 4, 1999.
FOR FURTHER INFORMATION CONTACT: Samuel J. Hodges III, Architect,
Program Support Staff, Rural Housing Service, U.S. Department of
Agriculture, Stop 0761, Washington, DC 20250-0761, Telephone: (202)
720-9653.
SUPPLEMENTARY INFORMATION:
Classification
This rule has been determined to be significant and was reviewed by
the Office of Management and Budget under Executive Order 12866.
Environmental Impact Statement
This document has been reviewed in accordance with 7 CFR part 1940,
subpart G, ``Environmental Program.'' It is the determination of the
issuing agency that this action does not constitute a major Federal
action significantly affecting the quality of the human environment,
and in accordance with the National Environmental Policy Act of 1969,
Pub. L. 91-190, an Environmental Impact Statement is not required.
Intergovernmental Consultation
This action affects the following programs as listed in the Catalog
of Federal Domestic Assistance:
10.405 Farm Labor Housing Loans and Grants
10.410 Very Low to Moderate Income Housing Loans
10.415 Rural Rental Housing Loans
All of the affected programs, except 10.410 Very Low to Moderate
Income Housing Loans, are subject to the provisions of Executive Order
12372 that requires intergovernmental consultation with State and local
officials prior to making individual loans.
Civil Justice Reform
The final rule has been reviewed under Executive Order 12998, Civil
Justice Reform. In accordance with this rule:
(1) Unless otherwise specifically provided all state and local laws
and regulations that are in conflict with this rule will be preempted;
(2) no retroactive effect will be given to this rule except as
specifically prescribed in the rule: and (3) administrative proceedings
of the National Appeals Division (7 CFR part 11) must be exhausted
before bringing suit.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act (44 U.S.C. 3507),
the information collection requirements included in this rule have been
approved through 7 CFR part 3550. The assigned OMB number is 0575-0172.
This rule does not impose any new information collection or
recordkeeping requirements from those approved by the Office of
Management and Budget.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA),
establishes requirements for Federal agencies to assess the effects of
their regulatory actions on State, local, and tribal governments and
the private sector. Under section 202 of the UMRA, RHS generally must
prepare a written statement, including a cost-benefit analysis, for
proposed and final rules with ``Federal mandates'' that may result in
expenditures to State, local, and tribal governments, in the aggregate,
or to the private sector, of $100 million or more in any one year. When
such a statement is needed for a rule, section 205 of the UMRA
generally requires RHS to identify and consider a reasonable number of
regulatory alternatives and adopt the least costly, more cost-effective
or least burdensome
[[Page 48084]]
alternative that achieves the objectives of the rule.
This rule contains no Federal mandates (under the regulatory
provisions of Title II of the UMRA) for State, local, and tribal
governments or the private sector. Thus today's rule is not subject to
the requirements of sections 202 and 205 of the UMRA.
Background
Subsection 502(e)(1) of the Housing Act of 1949, 42 U.S.C.
1472(e)(1), establishes standards for manufactured homes which will be
financed with RHS single family housing loans under section 502 of the
Housing Act of 1949. Subsection 502(e)(1)(C) provides that manufactured
homes must meet the energy conservation requirements applicable to
other non-manufactured housing financed by RHS single family housing
loans until the agency established energy conserving requirements under
section 502(e)(2). The purpose of this regulation is to establish
energy conserving requirements specifically designed for manufactured
homes pursuant to section 502(e)(2).
The section 502(e) criteria for energy conserving requirements for
RHS financed manufactured housing require that the requirements: ``(A)
reduce the operating costs for a borrower by maximizing the energy
savings and be cost-effective over the life of the manufactured home or
the term of the loan, whichever is shorter, taking into account
variations in climate, types of energy used, the cost to modify the
home to meet such requirements, and the estimated value of the energy
saved over the term of the mortgage; and (B) be established so that the
increase in the annual loan payment resulting from the added energy
conserving requirements in excess of those required by the standards
prescribed under title VI of the Housing and Community Development Act
of 1974 [42 U.S.C. 5401 et seq.] shall not exceed the projected savings
in annual energy costs.''
The agency is adopting the energy conserving standards established
by HUD under title VI of the Housing and Community Development Act of
1974 and, as hereinafter discussed, has determined that these zoned
standards maximize energy savings and are cost-effective to the
borrower. Under this final rule manufactured homes will no longer be
required to meet the RHS thermal requirements applicable to non-
manufactured single family housing financed by RHS. Exhibit D of 7 CFR
part 1924, subpart A, adopts the HUD thermal design zone requirements
for the Federal Manufactured Home Construction and Safety Standards
(FMHCSS) that correspond to the RHS climatic zones.
The existing RHS requirements for a manufactured unit are: (1) The
unit must meet the FMHCSS, and (2) the unit must meet the same RHS
thermal requirements as are applicable to other, non-manufactured
single family housing, financed by RHS prior to the National Energy
Policy Act of 1992. Since HUD increased its energy requirements for
manufactured homes (58 FR 54975, Oct. 25, 1993, effective Oct. 25,
1994), RHS has compared these new requirements with the RHS thermal
requirements to evaluate the differences.
Our analysis indicates that the thermal performance of a unit built
to the HUD requirements is roughly comparable to the thermal
performance of a unit built to the requirements of the corresponding
RHS climatic zones. The table below lists the HUD zones that are
roughly comparable to the RHS climatic zones.
------------------------------------------------------------------------
HUD zones
RHS climate zone (degree-days) (state
boundary)
------------------------------------------------------------------------
0-1000..................................................... 1
1001-2500.................................................. 2
2501-4500.................................................. 2
4501-6000.................................................. 3
>6000...................................................... 3
------------------------------------------------------------------------
The HUD increases in the thermal requirements of the building
envelope are substantial. However, HUD's requirements are not based on
climatic region; instead, they are based on state boundary. As an
example, in the State of California there are 5 RHS climatic zones;
whereas, HUD has identified the entire state as a single zone (HUD Zone
2). In California, the HUD-code home would be acceptable to RHS in
climatic zones with 4500 or less heating degree days. However, in
colder climates of California, the HUD Zone 2 unit would not be
adequate. The HUD Zone 3 requirements are roughly comparable to the RHS
requirements for climatic zones with 4501 or more heating degree days.
Similar comparisons can be made in other states.
On this basis, in order to simplify requirements we are amending
our current energy requirements for manufactured housing to adopt the
design requirements for the HUD zones that correspond to the RHS
climatic zones.
These are the benefits to the manufactured housing industry, RHS,
and most importantly, RHS customers:
1. Manufacturers will no longer have to conform with the energy
requirements of two Federal agencies. As required by federal law,
manufacturers will continue to follow the FMHCSS for non-thermal
requirements.
2. Manufacturers will not have to retain qualified consultants to
certify that designs conform with the existing RHS thermal
requirements.
3. Manufacturers will no longer have to substantiate design
conformance to RHS thermal standards.
4. Loan processing will be expedited since less paperwork will have
to be reviewed by RHS loan approval officials.
5. RHS will reduce its regulatory requirements.
6. This will simplify on-site inspection by the RHS Community
Development Managers (CDM). Since each local office already knows their
climatic zone, and since HUD requires the thermal zone for which a unit
is built to be posted on a sticker in the unit, a CDM could quickly
determine if a unit is acceptable by simply inspecting the HUD required
sticker. RHS's current requirement for a separate certification sticker
would be deleted.
7. The RHS customer will have a wider selection of manufactured
homes to chose from.
8. The energy efficiency of the manufactured home will be roughly
the same and in some cases exceed existing RHS thermal requirements.
9. The elimination of a separate energy efficiency requirement
applicable only to RHS manufactured homes will make lending
institutions more willing to make loans to guarantee RHS customers for
manufactured homes.
Discussion of Comments
On October 6, 1998 RHS published a proposed rule in the Federal
Register, 63 FR 53616. The five comments received were from persons
representing organizations that are directly affected by the rule. The
commenters included a housing developer and rural development
consultant, an engineer with a manufactured housing producer and
representatives from federal agencies involved in financing
manufactured homes.
All commenters approved or supported the adoption of the FMHCSS
thermal design zone requirements that correspond to RHS climatic zones.
The positive comments on the proposed rule included such statements as
it ``is a positive measure'', ``reduce paper work'', ``improves loan
processing'', ``streamlines lending procedure for manufactured housing
in rural areas'', ``eliminates the need for manufacturers
[[Page 48085]]
and RHS staff becoming familiar with different standards'', ``will
reduce the cost of housing for low and moderate income applicants'',
``will give loan applicants a greater range of choices of housing
design, style and size for their family needs'', ``improves the
agencies relationship with the manufactured housing industry and
lending community'' and ``improves the services to the customer.'' The
Agency has not changed the basic structure or content of the proposed
rule.
Finally, one commenter suggested that a requirement be added to
Rural Development (RD) Form 1924-25, ``Plan Certification'', that would
require the dealer-contractor to certify the unit meet the FMHCSS
thermal design zone requirements that correspond to RHS climatic zones.
The FMHCSS requires that the manufacturer permanently affix a ``Heating
Certificate'' that certifies the design zone that the manufactured home
complies with. This Heating Certificate is affixed to an interior
surface of the home that is readily visible to the Agency staff and the
homeowner. It is the Agency's position that the determination as to
which FMHCSS thermal design zone requirement corresponds to the
appropriate RHS climatic zones is best covered early in the loan making
process and will be addressed at or before the pre-construction
conference. Therefore, the Agency has not changed RD Form 1924-25.
List of Subjects in 7 CFR part 1924
Agriculture, Construction and repair, Construction management,
Energy conservation, Housing, Loan programs--Agriculture, Low and
moderate income housing.
Therefore, chapter XVIII, title 7, Code of Federal Regulations is
amended as follows:
PART 1924--CONSTRUCTION AND REPAIR
1. The authority citation for part 1924 continues to read as
follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.
Subpart A--Planning and Performing Construction And Other
Development
2. Exhibit D of subpart A to part 1924 is amended by adding
paragraph IV. G to read as follows:
Exhibit D to Subpart A--Thermal Performance Construction Standards
* * * * *
IV. Minimum Requirements
* * * * *
G. New Manufactured Housing
The Uo Value Zone indicated on the ``Heating Certificate'' for
comfort heating shall be equal to or greater than the HUD Zone listed
in the following table:
------------------------------------------------------------------------
FMHCSS (HUD
RHS climate zones (winter degree days) code) Uo
value zones
------------------------------------------------------------------------
0-1000..................................................... 1
1001-2500.................................................. 2
2501-4500.................................................. 2
4501-6000.................................................. 3
> 6000..................................................... 3
------------------------------------------------------------------------
Example: If a manufactured home is to be located in a geographic
area having between 2501 and 4500 RHS winter degree days, the Agency
will accept a Uo value Zone 2 unit or Zone 3 unit constructed to the
HUD FMHCSS.
If a central air conditioning system is provided by the home
manufacturer, a ``Comfort Cooling Certificate'' must be permanently
affixed to an interior surface of the unit that is readily visible.
This certificate may be combined with the heating certificate on the
data plate.
* * * * *
Dated: August 26, 1999.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 99-22902 Filed 9-1-99; 8:45 am]
BILLING CODE 3410-XV-P
