Manufactured Housing Thermal Requirements

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: Proposed rule.

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SUMMARY: The Rural Housing Service (RHS), a part of the former Farmers

Home Administration (FmHA), and now part of the Rural Development

Mission Area of the U.S. Department of Agriculture, proposes to amend

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. Since HUD increased its energy

requirements for manufactured homes, RHS has compared these new

requirements with the RHS thermal requirements. 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 RHS climatic zones. This will reduce the burden on

the manufactured housing industry, RHS field personnel, and most

importantly RHS customers.

DATES: Comments must be submitted on or before December 7, 1998.

ADDRESSES: Submit written comments via the U.S. Postal Service, in

duplicate, to the Regulations and Paperwork Management Branch,

Attention: Richard Gartman, Rural Development, U.S. Department of

Agriculture, Stop 0742, 1400 Independence Ave., SW, Washington, DC

20250-0742. Submit written comments via Federal Express Mail, in

duplicate, to the Regulations and Paperwork Management Branch,

Attention: Richard Gartman, USDA-Rural Development, 3rd Floor, 300 E

Street, SW., Washington, DC 20546. Also, comments may be submitted via

the Internet by addressing them to ``[email protected]'' and must

contain ``thermal'' in the subject line. All comments will be available

for public inspection during regular work hours at the 300 E Street,

SW. address listed above.

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.

Regulatory Flexibility Act

Pursuant to section 605(b) of the Regulatory Flexibility Act, 5

U.S.C. 605(b), the head of the Agency certifies that this rule will not

have a significant economic impact on a substantial number of small

entities. Manufacturers, large and small, 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

Federal Manufactured Housing Construction and Safety Standard (FMHCSS)

requirements. Notwithstanding the above, a regulatory impact analysis

was prepared and determined that no significant economic impact will

occur on a substantial number of small entities. To the contrary, the

rule will be of substantial benefit by reducing the number of

regulations and different standards the industry must meet.

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

This proposed rule has been reviewed under Executive Order 12998,

Civil Justice Reform. If this proposed rule is adopted: (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 1924, subpart A. The assigned OMB number is

0575-0042. This rule does not revise or 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), Pub.

L. 104-4, 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,

[[Page 53617]]

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 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.

Discussion

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 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 part 1924,

subpart A, adopts the HUD thermal design zone requirements for the

Federal Manufactured Home Construction and Safety Standards (FMHCCS)

that correspond to the RHS climatic zones.

The existing RHS requirements for a manufactured unit are: (1) The

unit must meet the Federal Manufactured Housing Constructions and

Safety Standards, 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.

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HUD zones

RHS climate zone (degree-days) (state

boundary)

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0-1000...................................................... 1

1001-2500................................................... 2

2501-4500................................................... 2

4501-6000................................................... 3

> 6000...................................................... 3

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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

climates with less than 4500 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 greater than 4500 heating degree days. Similar

comparisons can be made in other states.

On this basis, in order to simplify requirements we are proposing

to amend our current energy requirements for manufactured housing to

adopt the design requirements for the HUD zones that correspond to the

RHS climatic zones.

There are many potential 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 guarantee RHS customer loans for

manufactured homes.

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.

[[Page 53618]]

Therefore, chapter XVIII, title 7, Code of Federal Regulations is

proposed to be 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 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:

------------------------------------------------------------------------

FMHCCS

(HUD

RHS climate zones (winter degree days) code) Uo

value

zones

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0-1000........................................................ 1

1001-2500..................................................... 2

2501-4500..................................................... 2

4501-6000..................................................... 3

>6000......................................................... 3

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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 FMHCCS.

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: September 28, 1998.

Jill Long Thompson,

Under Secretary, Rural Development.

[FR Doc. 98-26761 Filed 10-5-98; 8:45 am]

BILLING CODE 3410-XV-P