The initial segment of the federal government’s 2013 Semi-Annual Regulatory Agenda (SAR), detailing the pending and anticipated rulemaking activities of the various federal agencies, was published in the January 7, 2013 edition of the Federal Register. As usual, the SAR includes significant information relevant to regulation of the manufactured housing industry. The entries and related MHARR commentary are divided by agency.

I. Department of Housing and Urban Development (HUD)

Although the HUD portion of the SAR was not included in the January 7, 2013 Federal Register publication, it is currently accessible via the internet. The SAR shows four pending HUD regulatory actions pertaining directly to manufactured housing with projected final rulemaking timeframes as follows:

· On-Site Completion of Construction of Manufactured Homes — June 2013

· Manufactured Housing Construction and Safety Standards – June 2013

· Roof Truss Testing Procedures – December 2012 (see below)

· Revision of Notification, Correction and Procedural Regulations in Subpart I – May 2013

The HUD information is significant for several reasons. First, it indicates a continuing slow pace of rulemaking activity (with the roof-truss timeframe already expired), affecting both matters opposed — and supported — by the industry. This is, once again, a reason why the industry must act now to advance the appointment of a properly-qualified non-career federal program Administrator — as provided by the Manufactured Improvement Act of 2000 – with the new Congress and the Administration. An appointed non-career program Administrator, as is universally acknowledged, is essential not only to set the correct priorities for the program and ensure its full and complete compliance with all relevant law, but to raise the profile of the program – and manufactured housing — within HUD and ensure the inclusion of manufactured housing in all of the nation’s housing opportunity and home finance programs as well. It now appears that the entire industry realizes the importance of such an appointment and that this issue will be a top priority with the Administration and 113th Congress.

Second, the HUD list is significant for what it does not include, most importantly any projected rulemaking activity to implement the conditional fire sprinkler standard accepted by the Manufactured Housing Consensus Committee (MHCC) at its October 2011 meeting and officially forwarded to HUD in October 2012. MHARR has consistently opposed the adoption of any such standard on the ground that the current HUD Fire Safety standards – as conclusively shown by the latest National Fire Protection Association (NFPA) study – already meet the standard of protection established by federal law without the use of extremely costly sprinkler systems. MHARR made this case in a comprehensive July 2012 letter and petition to HUD Assistant Secretary Carol Galante, calling on the Department to reject the proposed standard and return the entire matter to the MHCC for full and proper consideration.

Third, the imperative of careful MHCC re-examination of the sprinkler issue and other regulatory matters highlights the urgent need for collective national industry representation on the MHCC. This also appears to be gaining traction within the industry, as the appointment of non-lobbyist staff members from both national industry associations to become voting members of the MHCC is needed to restore the role, status, authority, independence and functionality of the MHCC in full compliance with the 2000 law.

II. Department of Energy (DOE)

At present, the energy conservation rule for manufactured homes mandated by the Energy Independence and Security Act of 2007 (EISA) that was the subject of a February 22, 2010 Advance Notice of Proposed Rulemaking (ANPR) does not appear in either the Federal Register SAR publication or the 2013 internet SAR entries for the DOE and its relevant subsidiary bureau, the Energy Efficiency and Renewable Energy Office. As you know, MHARR, in its ANPR comments, written communications to DOE Secretary Steven Chu and verbal communications with other agency officials, has called upon DOE to refrain from issuing any such regulations – with major potential impacts on the purchase price of manufactured homes and the potential exclusion of large numbers of consumers from the manufactured housing market – until industry production recovers from its current historically low levels. MHARR, in addition, has called on DOE not merely to “consult” with HUD and the MHCC prior to the publication of any proposed rule, as provided by the express provisions of EISA, but to go a step further and involve both HUD and the MHCC at every step of the regulatory process because of the current condition of the industry.

MHARR will continue to carefully monitor this situation and will take further steps as necessary.

III. Environmental Protection Agency (EPA)

In 2010, following action by the California Air Resources Board (CARB), Congress enacted the Formaldehyde Standards for Composite Wood Products Act. This law amends the Toxic Substances Control Act, administered by EPA, to establish specific national formaldehyde emission limits for hardwood plywood, particleboard and medium-density fiberboard that are identical to the California emission limits for the same products. The law required EPA to promulgate implementing regulations by January 1, 2013.

According to EPA, it is “currently evaluating the risks presented by exposure to formaldehyde emissions from composite wood products (hardwood plywood, medium-density fiberboard (MDF), and particleboard) in excess of the statutory limits.” As a result, the SAR simply lists January “00,” 2013 as the action date for a Notice of Proposed Rulemaking (NPRM), which could indicate that no activity on this matter is imminent. Again, MHARR will carefully monitor any activity in this area and follow-up as appropriate.

IV. Architectural and Transportation Compliance Barriers Board (Access Board)

As previously reported by MHARR, the accessibility standards for government-purchased temporary housing units (principally manufactured homes purchased by the Federal Emergency Management Agency (FEMA) for emergency use in responding to natural disasters) developed by a U.S. Access Board advisory committee that included an MHARR representative, were the subject of a public hearing in July 2012 and now, according to the SAR, are slated for publication as a final rule in April 2013. MHARR has already submitted comments in this matter which generally support the recommended standards but warn against any effort to translate those standards – with significant cost implications — into criteria for the private manufactured housing market where affordability is a key statutory objective and concern for both the industry and consumers, particularly since homebuyers can already able to secure any accessibility features they need as optional equipment.

V. Consumer Financial Protection Bureau (CFPB)

Predictably, the CFPB, as it moves forward with the implementation of the Dodd-Frank law, has a large number of entries listed in the 2013 SAR, including proposed rules that will impact manufactured home financing.

As industry members are aware, matters pertaining to the CFPB in general and Dodd-Frank in particular, are currently being addressed by representatives of the industry’s post-production sector and state associations. MHARR has – and will continue to – support such efforts to protect the availability and viability of manufactured home consumer financing.

Manufactured Housing Association for Regulatory Reform (MHARR)