Glossary of Terms for

MANUFACTURED HOMES

PART 7-a 

Inasmuch as the following Glossary of Terms makes for a rather lengthly post we have no choice but to break it up into 3 parts. However, because we've posted so much information about Resident Owned Manufactured Homes during this series we feel that any RE Professional, lender, buyer or seller dealing in a Manufactured Home transaction be as armed and equipped as possible.

Please feel free to use this as your GO-TO RESOURCE anytime. However, do to the complex, technical and often times very confusing termonology please do not hesitate to contact us with any questions or concerns you may have

ABS

Acrylonitrile butadiene styrene. Plastic material used in the fabrication of footers (pads) under manufactured homes and stabilizer plates for auguring ground anchors.

The black square under the pertruding steel footing is a typical ABS PAD

ALTA 7

The ALTA 7 is an endorsement to a title policy whereby the title company agrees to insure a manufactured home as part of the real estate. In most land home transactions, the lender will not complete the loan without the ALTA 7 title endorsement.  

This means different things in each states but generally requires evidence that the home is affixed and assessed as real property.  In some states this might be an Affidavit of Affixture (a paper document ie Arizona) and in other states, it is proof that the home has been installed on a permanent foundation (i.e the 433A in California).

APPRAISAL

A report made by a qualified person setting forth an opinion or estimate of value of the property. The term also refers to the process by which this estimate is obtained often showing the basis for the appraiser's estimate.

ASSESSOR'S PARCEL NUMBER—APN

This website can provide individual information on counties in California.http://www.ciwmb.ca.gov/LEACentral/CIA/Office/APN.htm

Certificate of Occupancy - CO

This is a document issued by a building department inspector when a MH-unit has been properly installed according to code.  As of July 22, 2005, the Department of Housing and Community Development (HCD) amended this definition to mean the subject home has been converted to a fixture.

Certificate of Title:

The title document for a MH-unit.   This document is issued by HCD and evidences the registered owner of the MH-unit and, if applicable, any lenders who have a secured interest in the home (legal owner and junior lienholders).

CHASSIS

The steel trailer frame that carries the weight of the manufactured home. The entire transportation system includes the following subsystems: drawbar and coupling mechanism, frame, running gear assembly (wheels & axles), and lights.

CHATTEL

Personal Property. Manufactured homes are unique in that they can either be classified as personal property (like a car) or real property like real estate depending on the foundation and the local/state installation requirements. In California, manufactured homes remain chattel until a foundation is installed in compliance with Section 18551 of the California Health and Safety Code and a 433A is recorded with the local county recorder's office.

CMHI

California Manufactured Housing Institute—A professional organization that advances information and the improvement of the manufactured housing and factory built housing industry.

CODES: LOCAL AND STATE

As opposed to the HUD code, which is preemptive of local codes and creates uniformity of manufactured home construction across state lines, foundation systems are typically subject to state or local building codes.

So, while the homes themselves may enjoy consistency of design and construction, foundation plans are subject to review by the local code enforcement authorities. All of the retrofit foundation systems must be tailored to the site conditions.

If local building department approval is required, the use of a local engineer to prepare plans for submission is prudent and may be required for HUD/FHA-insured financing. Proprietary systems almost always carry engineering approvals, but some building departments may not approve their design concepts.

CONSUMER COMPLAINTS

HUD has entered into cooperative agreements with 38 State governments to respond to consumer complaints about the performance of manufactured homes. These state governments each designate a State Administrative Agency (SAA). If you have any complaints about the performance of your manufactured home that have not been resolved by the retailer or by the manufacturer, you should first contact the SAA where you live.

CONTRACTORS STATE LICENSE BOARD (CSLB)

The licensing agency that oversees contractors. Contractors that specialize in manufactured homes should have a C-47 specialty classification indicating that they specialize in all phase of manufactured housing construction, including understructures.

CRAWL SPACE

A crawl space incorporates full perimeter wall support together with internal, independent support points; the space itself is not habitable.

DAPIA—DESIGN APPROVAL PRIMARY INSPECTION AGENCY

These are third-party independent agencies that approve manufactured home engineering and designs for compliance with the Federal Manufactured Home Construction and Safety Standards.

DEAD LOADS

The weight of all materials of construction incorporated into the building, including but not limited to walls, floors, roofs, ceilings, stairways, built-in partitions, finishes, cladding, and other similarly incorporated architectural and structural items, and fixed service equipment.

DOH Insignia

This was a predecessor of the HUD label.  This insignia is usually displayed at the rear of the home.  DOH is the acronym for Department of Housing.  The Department of Housing was subsequently replaced by HCD.   A DOH Insignis a found on all mobilehomes built on after September 1, 1958.

ENGINEER

A registered structural engineer. In the case of proprietary foundation systems with an SPA (Standard Plan Approval), each one has an engineer of record. In the case of FHA loans, an engineer is usually required to certify the foundation.

ENGINEER'S CERTIFICATION

A letter issued by a structural engineer certifying the acceptability of a foundation system, generally to meet the HUD Publication, Permanent Foundation Guide For Manufactured Homes dated 1996. Most lenders require that this is wet-stamped, indicating his license number and the date he places the stamp.

EARTHQUAKE RESISTANT BRACING SYSTEMS (ERBS).

Proprietary systems that have been rated to resist seismic events. See Seismic Load Resistance.

EXPANSIVE SOILS

Soils that change volume significantly as their moisture content changes.

FACTORY BUILT AKA MODULAR HOME

A dwelling unit fabricated in an off-site manufacturing facility for installation or assembly at the building site, bearing a label certifying that it is constructed in compliance with local building codes. Unlike MANUFACTURED HOMES that are built to one national preemptive code, factory-built homes are constructed to comply with the local building prescribed codes.

FEMA

Federal Emergency Management Agency.

FHA

Federal Housing Administration within the U.S. Department of Housing and Urban Development.

FHA MORTGAGE

To qualify for FHA insured loans:

• Must have a floor area of not less than 400 square feet.
• Must be classified and subject to taxation as real estate
• Must be built on and remains on a permanent chassis.
• Must be above the 100 year return frequency flood elevation.
• Must be built after June 15, 1976
• The foundation system must meet the guidelines published in the Permanent Foundations Guide for Manufactured Housing, dated September 1996. A certification attesting to compliance must be obtained from a licensed professional engineer.
• The manufactured home must not have been installed or occupied previously at any other site or location.
• Additions or structural modifications must not put the home at risk.

FHA NUMBER

The loan number assigned to a particular borrower and particular property.

FLASHING

Sheet metal or other material used to seal around penetrations to resist moisture intrusion.

FLOOD PLAIN AREA

Any land area susceptible to being inundated by water from any source. In evaluating location suitability, refer to FEMA Map Service descriptions: http://msc.fema.gov/

FOOTERS (SEE PADS)

The parts of a foundation system that actually transmit the weight of the building to the ground.

FORM 433A

Notice of Manufactured Home (Mobilehome) or Commercial Modular Installation on a Foundation System. This is the Department of Housing and Community Development (HCD) Form that specifies that the home meets California Standards of an upgraded foundation system, effectively attaching the home and land, conjoining them as real property. This document is in accordance with California Health and Safety Code Section 18551 (a)

FORM 433C

Notice of Manufactured Home (Mobilehome) Conversion To A Fixture Improvement To Real Property in accordance with California Health and Safety Code, Section 18555. Because of the wording on this form and the use of the term "affixture", many escrow and title companies have mistakenly believed that this form effectively turned the manufactured home into real property. Instead this designates the home for assessment on real property, but the home remains chattel or personal property. Most lenders will no longer accept the 433C since their security interest is

FOUNDATION

The term "foundation" means all components of the support and anchoring system (that might include such features as piers, footings, slabs, walls, ties, anchoring equipment, ground anchors, or any other material or equipment) that supports a home and secures it to the ground.

Foundation System (See photo above)

An assembly of materials designed and enginered by an architect or engineer to resist the imposition of external forces once the MH unit is installed upon it. The installation on a foundation is classified as one of the following:

A.

 Foundation installation - A fixture or improvement to real property, recorded with the County Recorder's office, once recorded is no longer personal property  and which complies with the requirement of Health and Safety Code section 18551 a or

B.

 Chattel installation  - neither a fixture nor an improvement to real property, not recorded with the county recorders's office and remains personal property.

FREDDIE MAC MANUFACTURED HOME LENDING REQUIRMENTS

• Built on a permanent chassis in compliance with HUD.
• Must have a HUD certification label or data plate.
• Must be affixed and attached to a permanent foundation system and the land must be owned by the borrower (unless located in a condominium project)
• Must be permanently connected to sewer or other utilities.
• Must be at least 12 feet wide and have a minimum of 600 square feet.
• Must be built after June 15, 1976.
• The dwelling unit must be legally classified as real property.
• The wheels and axles must be removed.
• Must have a licensed engineer or the local building jurisdictions approve any structural modifications.

GRADE

The finished ground level adjoining the building at all exterior walls.