Rd instruction 1924-a table of Contents




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70

(Added 03-16-94, SPECIAL PN)


RD Instruction 1924-A

§1924.13 (e)(2)(ix)(B) (Con.)

documents certifying that the public records have been searched and that there are no liens of record. When the District Director has reason to believe that partial payments may not be applied properly, checks will be made payable to persons who furnish materials and labor for eligible purposes in connection with the project.
(x) Under no circumstances shall funds be released for final payment or to pay any items of the builder's profit until the project is 100 percent complete, ready for occupancy, and the owner-builder has completed and properly executed Form RD 1924-13 or complied with the cost certification procedures of §1924.13 (e)(2)(viii) of this subpart.
§§1924.14 - 1924.48 [Reserved]
§1924.49 State supplements.
State supplements or policies will not be issued or adopted to either supplement or set requirements different from those of this subpart, unless specifically authorized in this subpart, without prior written approval of the National Office.
§1924.50 OMB control number.
The reporting and recordkeeping requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0042. Public reporting burden for this collection of information is estimated to vary from 5 minutes to 4 hours per response, with an average of 37 minutes per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to U.S. Department of Agriculture, Clearance Officer, OIRM, AG Box 7630, Washington, DC 20250; and to the Office of Management and Budget, Paperwork Reduction Project (OMB# 0575-0042), Washington, DC 20503.

Attachments: Exhibits A, B, C, D, E, F, G, H, I, J, K, L and M

Automation Supplement (Attached to Exhibit D)

Guides 1, 2, 3 and 4



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71

(Added 03-16-94, SPECIAL PN)


(05-12-87) SPECIAL PN

RD instruction 1924-A

Exhibit A

ESTIMATED BREAKDOWN OF DWELLING COSTS

FOR ESTIMATING PARTIAL PAYMENTS

With With With

Slab on Grade Crawl Space Basement
% % %

__________________________________


1. Excavation 3 5 6

2. Footings, foundations, columns 8 8 11

3. Floor slab or framing 6 4 4

4. Subflooring 0 1 1

5. Wall framing, sheathing 7 7 6

6. Roof and ceiling framing, sheathing 6 6 5

7. Roofing 5 5 4

8. Siding, exterior trim, porches 7 7 6

9. Windows and exterior doors 9 9 8

10. Plumbing - roughed in 3 2 3

11. Sewage disposal 1 1 1

12. Heating - roughed in 1 1 1

13. Electrical - roughed in 2 2 2

14. Insulation 2 2 2

15. Dry wall or plaster 8 8 7

16. Basement or porch floor, steps 1 1 6

17. Heating - finished 3 3 3

18. Flooring 6 6 5

19. Interior carpentry, trim, doors 6 6 5

20. Cabinets and counter tops 1 1 1

21. Interior painting 4 4 3

22. Exterior painting 1 1 1

23. Plumbing - complete fixtures 4 4 3

24. Electrical - complete fixtures 1 1 1

25. Finish hardware 1 1 1

26. Gutters and downspouts 1 1 1

27. Grading, paving, landscaping 3 3 3

__________________________________


100 % 100 % 100 %

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Page 1

REQUIREMENTS FOR MODULAR/PANELIZED HOUSING UNITS

For the benefit of Rural Development this Exhibit prescribes evaluation, acceptance, inspection and certification procedures for modular/panelized housing units proposed for use in Rural Development Rural Housing programs. It applies to proposed development packages provided either under a contract between an Rural Development borrower and a single contractor or under a conditional commitment. This Exhibit also describes the use of background information available through the Department of Housing and Urban Development (HUD) for analysis of manufactured products. This Exhibit also applies to the evaluation of manufactured farm service buildings in paragraph XI, below. For the purpose of this Exhibit, County Supervisor and County Office also mean District Director and District Office, respectively.


I. Applicable Standards and Manuals.
A. The HUD Handbook 4950.1, Technical Suitability of Products Program Technical and Processing Procedures, must be followed by housing manufacturers to obtain acceptance of their products. Acceptance documents issued by HUD include: Structural Engineering Bulletins (SEB) on a national basis, Area Letters of Acceptance (ALA) which when accepted by all Area HUD Offices in a HUD region will, in essence, become Regional Letters of Acceptance (RLA), Truss Connector Bulletins (TCB): and, Mechanical engineering Bulletins MEB). These documents as well as the Use of Material Bulletins (UM) and Materials Release Bulletins (MR) are addendum to the HUD Minimum Property Standards (MPS). Under handbook guidelines, HUD also examines state agency regulations concerning design, construction and labeling of modular/panelized housing units and designates those states having procedures acceptable for use under HUD programs. Modular/panelized housing produced in these states is called Category III and is considered technically suitable for use without further structural analysis.
B. All State Rural Development Offices should maintain a close working relationship with each HUD office in their jurisdiction to assure coordination. Any deviations in structure, materials or design from HUD acceptance documents must comply with one of the other applicable development standards.
II. Modular Housing Units that Require Factory Inspections.
Only those types which cannot be completely inspected on site are required to obtain acceptance from HUD. Those that receive acceptance will be periodically factory inspected by HUD or HUD's designated agency, usually about every 6 months.
(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Page 2


III. Panelized Housing Units that Do Not Require Factory Inspections.
A. Housing completely assembled on the building site does not require HUD acceptance. This includes housing that is manufactured but is assembled on the site such as: Precut pieces, log wall houses, trussed roof rafters or floor trusses; open panel walls, and other types that can be completely inspected on site.

B. Housing that is assembled in local materials dealers' yards for moving to local sites and to be purchased by an Rural Development applicant, will be inspected during construction in the yard by the local Rural Development County representative. These units must be constructed according to the applicable development standard and not transported out of the local Rural Development County Office jurisdiction. The inspection must be recorded on Form RD 1924-12 "Inspection Report."


IV. Manufacturer's Actions Required for Submissions to Rural Development are listed in Attachment 1 to this Exhibit B.
V. State Rural Development office Actions when Manufacturing Facilities are in its Jurisdiction. The State Office, upon receipt of manufacturer's submission, must:
A. Determine that the unit structural system has been accepted by HUD as appropriate under HUD Handbook 4950.1 requirements.

B. Review the thermal characteristics and approach of the calculations to determine actions to be taken in compliance with paragraph IV C of Exhibit D of this subpart.

C. Review the proposal for compliance with §1924.5 (d) (1) of this subpart.

D. Determine that the prerequisites for consideration of acceptance by Rural Development are met. The prerequisites include all of the following:


1. A current acceptance document from HUD (SEB, RLA, ALA), Except for Category III housing modular/panelized housing that does not have to have a Structural Engineering Bulletin as designated by HUD). In Category III states, the state government requirements for manufactured housing must be followed.
2. A current HUD Factory Inspection Report, Form No. 2051m, or in the case of Category iii housing, a copy of the inspection report from the state government or accepted third party performing the factory inspection. Each report must be made by HUD or a HUD authorized agency, and must be no older than 6 months.
3. A letter from the manufacturer requesting a review for acceptance. Enclosed with the letter shall be all the information listed in Attachment 1 to this Exhibit B.

RD instruction 1924-A

Exhibit B

Page 3


(Revision 1)
E. Issue acceptance letters to the manufacturer stating the conditions of acceptance in the format of Attachment 2 to this Exhibit B. The letter shall have an attachment listing all models accepted in the format of Attachment 3 to this Exhibit B. A copy of the acceptance letter and list of models shall be sent to each County Office in the state and, when requested by the manufacturer, to each other Rural Development State Office in which the product is to be marketed.
F. After initial review of a submission, maintain a master file of accepted manufacturers and models and review the file twice yearly to determine the currency of the factory inspection reports and HUD or state government acceptance documents.
G. Notify manufacturers of overdue factory inspection reports, for acceptance of documents review and updating, using the format of Attachment 4 to this Exhibit B. Accompanying the notification will be a temporary acceptance sheet (Attachment 3 to this Exhibit B) indicating to the manufacturer that the company models have temporary acceptance for 60 days. If the manufacturer provides evidence that a review is being processed by HUD, a maximum of an additional 90 days may be granted. Otherwise, the acceptance shall terminate on the last extension date and it will be necessary for the manufacturer to resubmit as if for initial acceptance.
H. Distribute a list of added models, deleted models, or notice of deletion of any manufacturer's product to the County Offices and other State Rural Development Offices as necessary.
I. Issue an initial supply of Manufacturer's and Builder's Certification forms (Attachment 5 to this Exhibit B) to each existing and newly accepted manufacturer. Manufacturers are to duplicate this form as necessary in their market areas.
J. Resolve any problems with the manufacturer, as reported by the County Office. Action may include coordination, Rural Development plant inspections or cancellation of acceptance letters when problems persist.
VI. County Office Actions:
A. When an application is received involving any of the manufacturer's products on the accepted list, the County Office Rural Development authorized personnel will:
1. Review the drawings and description of materials described in paragraphs A and B of Attachment 1 to this Exhibit B. The floor plans and elevations must be identifiable with the model listed in the accepted list issued by the State Office.
(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Page 4


(Revision 1)

2. Require the builder/dealer or manufacturer to provide any drawings necessary to adapt the house to the site conditions where the house will be located. .


3. Require site plan drawing such as those illustrated in Attachments 1 and 2 to Exhibit C of this subpart (available in any Rural Development office).
4. Inspect and identify the model delivered against the manufacturer s certification and the accepted drawings and description of materials before the unit has been set on the foundation.
5. Require the builder/dealer to certify that the work for which the builder/dealer is responsible has been erected in compliance with the applicable development standard. This certification will be completed on a copy of Attachment 5 to this Exhibit B, and filed in County Office case file.
6. Observe any noncompliance with the applicable development standard or with paragraphs IV and V of this Exhibit B. In this respect:
a. Minor noncompliance will be resolved by the manufacturer through the builder/dealer. In cases where there is no builder/ dealer, the County Office may resolve such issues with the manufacturer directly.
b. Noncompliance that cannot be resolved at the County Office level will be reported to the State Office.
7. Inspect manufactured housing according to § 1924.8(d) of this subpart.
8. Be aware that the accepted list may include many models from which loan applicants may choose. No changes from accepted model designs are permitted. The model selected by an applicant should be appropriate to the needs of that particular family in accordance with 7 CFR part 3550. (Revised 01-23-03, SPECIAL PN.)
VII. Noncompliance Issues.
A. When minor issues are noted, the County Office will attempt to resolve them as described above. If they cannot be resolved locally, they will be referred to the State Office. When any issues cannot be resolved at State Office level, the National Office Program Support Staff (PSS) will be contacted for guidance.

RD Instruction 1924-A

Exhibit B

Page 5


B. The National Office PSS, coordinating with HUD, will take the appropriate actions to resolve the issues reported.
C. Manufacturers and builder/dealers must be aware that if the Rural Development inspector finds any of the following conditions, the inspector may refuse to accept the construction until corrections have been made:
1. Evidence of noncompliance with any option of the method described in the HUD - SEB, RLA, or ALA.
2. Faulty shop fabrication, including surface defects.
3. Damage to shop fabricated items or materials due to transportation, improper storage, handling or assembly operation.
4. Unsatisfactory field or site workmanship.
VIII. Actions by Other State Offices. When a State Office receives a copy of the accepted list from the State Office in which a manufacturing plant is located, it will:
A. Maintain a file, by manufacturer, of each accepted list of models.
B. Provide copies of the accepted list of models to each County Office in the state.
C. Request a copy of the drawings, description of materials, and thermal calculations to determine compliance with the thermal requirements for the county in which the house is to be located according to Exhibit D of this subpart.
D. Check to see that County Offices within the state will act as prescribed in paragraph VI of this Exhibit B.
E. When two or more State Offices have different interpretations of the acceptability of a particular model, there must be an agreement between the states so that they will have the same requirements. If the states cannot 1 agree, the National Office PSS will be consulted for guidance.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Page 6

IX. Subsequent Review.


Rural Development will make periodic reviews of houses, both site-built and houses manufactured offsite, to determine acceptability of the finished product. If, in the judgment of the Rural Development, the product has failed to perform satisfactorily, acceptance may be withdrawn. The State Director will notify the manufacturer and/or the builder/dealer of the reasons for the withdrawal no later than the rime of withdrawal. Negotiations for corrections will be carried our by the County Office with the assistance of the State Office or National Office, as necessary.
X. Materials and Products Acceptance - Material Release Bulletins, Use of Materials Bulletins, Manufacturer's Instructions.
A. The Materials Release (MR) and Use of Materials Bulletins (UM) provide for the national acceptance of specific nonstandard materials and products not covered in the current HUDMPS.
B. When contractors or builders intend to use products or materials not listed as approved in the MPS, the Rural Development personnel reviewing or concerned with the approval of construction in which the product is to be used, will require the contractor or builder to furnish a Materials Release Bulletin or Use of Materials Bulletin on the materials or products. If the product has been accepted, the supplier should be able to obtain the bulletin for the contractor or builder from the manufacturer. These bulletins describe the products or materials limitations to use, method of installing or applying, approved type of fasteners, if used, etc. and will provide the contractor with instructions as to proper installation or application.
C. When Rural Development personnel are unfamiliar with any materials or products which have been accepted in the MPS, they will request the contractor or builder to furnish the manufacturer's instructions to assure that the materials or products are properly installed or applied. Any questions on any product that cannot be resolved in the County Office should be referred to the State Office. When the question cannot be resolved at the State Office level, the National Office PSS should be consulted for guidance.
XI. Manufactured Farm Service Buildings.
A. When a loan application is received that involves a manufactured building or special equipment that cannot be completely inspected on the site, the local State Land Grant University recommendations should be requested.

RD Instruction 1924-A

Exhibit B

Page 7


B. When the County Office questions the advisability of making a loan on a manufactured building, the State Office should also be consulted.
C. The State Office should review and make recommendations to the County Office. If doubt still exists, the National Office PSS should be consulted for guidance.

(5-12-87) SPECIAL PN

RD Instruction 1924-A

Exhibit B

Attachment 1

Page 1


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