Manufactured Home Solutions. Putting The Pieces of The Puzzle Together

I. Permitting

MH-Processing employs a sliding scale price fee schedule. In other words, the cost of permitting is directly proportionate to each jurisdictions submittal requirements. Essentially, the greater the fees and red tape employed by a building authority creates commensurately higher permit fees.

Upon approval of an estimate to process a permit in conjunction with a 433A, the amount of the permit fee is only subject to change unless there arises a charge or lien that was not disclosed or uncovered prior to authorization and must be satisfied in order perfect completion of permit issuance (i.e. development impact fees, school fees, etc.). Once the building department approves an application to install a foundation system, the said work can commence.

II. The Foundation Process

Because MH-Processing is not a contractor, any portion of the transaction related to construction is contracted directly with a contractor. Therefore, when MH-Processing delivers an itemized estimate, an independent contract from the contractor will also be included.

Each estimate is drafted directly from a contractor. The price of the foundation varies by the size of the home, materials, taxes, drive time, labor and all additional job related expenses.

Additionally, all bids are prepared under the assumption that the foundation is free of any structural deficiencies that would need to be rectified in order to install the foundation system.

If circumstances do not allow for a pre-evaluation by the contractor and repairs are needed beyond the initial contract, all work will cease until additional work has been approved or the project is terminated.

Once the foundation has been installed the overseeing building authority will perform an inspection of the work. In the very rare circumstance that a correction is issued directly related to the work performed, then the contractor will satisfy the repairs free of charge and absorb any re-inspection fees.

However, there are occasions when arbitrary corrections are issued during the inspection that are that are not directly related to the installation of the foundation system.

Although HCD mandates that local building authorities do not impose unnecessary and prohibitive requirements during the 433A process, some municipalities continue to hold the 433A hostage as leverage against the contractor in order to satisfy unrelated compliance concerns.

MH Processing, LLC

Under these circumstances, if no arrangement can be made between the contractor and building authority, then the notice for corrections will be submitted to the client (those enlisting the services of MH-Processing) in conjunction with a price from the contractor in order to rectify the corrections and satisfy the building authority.

If the additional repairs are not completed and the contractor is unable to receive final approval on the permit, then all work that has been completed up to that point is to be remitted immediately.

If the additional repairs are not approved, and the contractor does not receive payment, MH-Processing is not liable for any liens, fees, or litigation that may ensue as a result.

III. 433A Recordation

Provided the inspection process is completed without incident, the 433A is almost always endorsed in the field when the inspector provides his/her final signature on the job card.

In some instances, certain municipalities process the 433A internally, where others require that the 433A be brought back to the building department in conjunction with a signed job card to have the 433A endorsed “in-house.” Depending on each municipality’s protocol, the administrative fee required to record the 433A will adjust accordingly.

Once signed, the 433A is then hand delivered by a member of our staff directly to the recorder of the county in which the foundation system was installed.

Almost all county recorders will provide a certified copy of the recorded 433A upon recordation for an additional fee, which is already included in the 433A processing fee. This allows for a quick and expeditious delivery of the document to the needed parties so the wait time of 1-3 weeks for the original document does not need to be endured.

IV. Surrendering the Title of the Manufactured Home to HCD

The last stage of converting a manufactured home from personal property into real estate is surrendering the manufactured home’s title to the Department of Housing and Community Development (HCD).

In most cases this can be done through the mail, but due to tight timelines and processing errors, a member of our staff deals directly with Titling and Registration in order to complete the detitling process.