A.R.S. tit. 41 ch. 37 — Arizona Revised Statutes Title 41 Chapter 37 — Housing

41-3951. Definitions In this article, unless the context otherwise requires: 1. "Department" means the Arizona department of housing. 2. "Director" means the director of the Arizona department of housing. 3. "Low and moderate income" means household income that is insufficient to secure decent, safe and sanitary housing provided by private industry without subsidized financing and that is below respective income limits established by the department, taking into consideration such factors as: (a) The total income of the household available for housing needs. (b) The size of the household. (c) The cost and condition of available housing facilities. (d) The ability to obtain housing for the household in the private housing market and to pay the amounts at which private enterprise is providing decent, safe and sanitary housing. (e) The standards established by various programs of the federal government for determining eligibility based on household or family income. 41-3952. Arizona department of housing; director A. The Arizona department of housing is established. B. The governor shall appoint the director pursuant to section 38-211. The director serves at the pleasure of the governor. C. The director shall administer the department. D. The director and such other employees as the director determines are entitled to receive compensation as determined under section 38-611. E. Subject to chapter 4, article 4 of this title, the director shall appoint a deputy director and, subject to legislative appropriation, may appoint assistant directors as the director deems appropriate. F. Subject to chapter 4, article 4 of this title, the director shall employ, determine the conditions of employment and specify the duties of administrative, secretarial and clerical employees the director deems necessary. G. The director may organize the department into divisions the director deems appropriate. 41-3953. Department powers and duties; definition A. The department is responsible for establishing policies, procedures and programs that the department is authorized to conduct to address the affordable housing issues confronting this state, including housing issues of low-income families, moderate-income families, housing affordability, special needs populations and decaying housing stock. Among other things, the department shall provide to qualified housing participants and political subdivisions of this state financial, advisory, consultative, planning, training and educational assistance for the development of safe, decent and affordable housing, including housing for low and moderate income households. The department is responsible for maintaining and enforcing standards of quality and safety for manufactured homes, mobile homes and factory-built buildings. B. Under the direction of the director, the department shall: 1. Establish guidelines applicable to the programs and activities of the department for the construction and financing of affordable housing and housing for low and moderate income households in this state. These guidelines shall meet or exceed all applicable state or local building and health and safety code requirements and, if applicable, the national manufactured home construction and safety standards act of 1974 and title VI of the housing and community development act of 1974 (P.L. 96-399, as amended by P.L. 95-128, 96-153 and 96-339). Guidelines established pursuant to this paragraph do not apply to the department's activities prescribed in section 35-726, subsection E. 2. Accept and allocate any monies as from time to time may be appropriated by the legislature for the purposes set forth in this article. 3. Perform other duties necessary to administer this chapter. 4. Perform the duties prescribed in sections 35-726 and 35-728. 5. Stimulate and encourage all local, state, regional and federal governmental agencies and all private persons and enterprises that have similar and related objectives and purposes, cooperate with the agencies, persons and enterprises and correlate department plans, programs and operations with those of the agencies, persons and enterprises. 6. Conduct research on its own initiative or at the request of the governor, the legislature or state or local agencies pertaining to any department objectives. 7. Provide information and advice on request of any local, state or federal agencies, private persons and business enterprises on matters within the scope of department activities. 8. Consult with and make recommendations to the governor and the legislature on all matters concerning department objectives. 9. Make annual reports to the governor and the legislature on its activities, including the geographic location of its activities, its finances and the scope of its operations. The annual reports submitted pursuant to this paragraph shall also include all of the following outcome-based metrics for department-funded projects and initiatives: (a) The number of affordable housing units developed in this state. (b) The number of individuals housed in permanent supportive housing environments in the past year and related housing outcomes for those exiting permanent supportive housing for which the department has conveyed funding. (c) Any improvements in housing accessibility for underserved and rural populations in this state. 10. Maintain and enforce standards of quality and safety for manufactured homes, mobile homes and factory-built buildings and enforce rules adopted by the board pursuant to section 41-4010. 11. As a condition of funding for emergency shelter and transitional housing programs that receive grants or other sources of funding from the department, adopt policies and procedures concerning responding to an alleged sale, manufacture or possession of dangerous drugs and narcotic drugs as defined in section 13-3401. These policies shall include clear signage on the facilities denoting a drug-free zone. C. Under the direction of the director, the department may: 1. Assist in securing construction and mortgage financing from public and private sector sources. 2. Assist mortgage financing programs established by industrial development authorities and political subdivisions of this state. 3. Assist in the acquisition and use of federal housing assistance programs pertinent to enhance the economic feasibility of a proposed residential development. 4. Assist in the compliance of a proposed residential development with applicable federal, state and local codes and ordinances. 5. Prepare and publish planning and development guidelines for the establishment and delivery of housing assistance programs. 6. Contract with a federal agency to carry out financial work on the federal agency's behalf and accept payment for the work. 7. Subcontract for the financial work prescribed in paragraph 6 of this subsection and make payments for that subcontracted work based on the expectation that the federal agency will pay for that work. 8. Accept payment from a federal agency for work prescribed in paragraph 6 of this subsection and deposit those payments in the Arizona department of housing program fund established by section 41-3957. 9. Contract for the services of outside advisers, consultants and aides reasonably necessary or desirable to enable the department to adequately perform its duties. 10. Contract for and incur obligations reasonably necessary or desirable within the general scope of department activities and operations to enable the department to adequately perform its duties. 11. Use any media of communication, publication and exhibition in the dissemination of information, advertising and publicity in any field of its purposes, objectives or duties. 12. Adopt rules deemed necessary or desirable to govern its procedures and business. 13. Contract with other agencies in furtherance of any department program. 14. Use monies, facilities or services to provide contributions under federal or other programs that further the objectives and programs of the department. 15. Accept gifts, grants, matching monies or direct payments from public or private agencies or private persons and enterprises for the conduct of programs that are consistent with the general purposes and objectives of this article and deposit these monies in the Arizona department of housing program fund established by section 41-3957. 16. Establish and collect fees and receive reimbursement of costs in connection with any programs or duties performed by the department and deposit the fees and cost reimbursements in the Arizona department of housing program fund established by section 41-3957. 17. Provide staff support to the board of manufactured housing. D. For the purposes of this section, the department is exempt from chapter 23 of this title. E. The department is the designated state public housing agency as defined in the United States housing act of 1937 (42 United States Code sections 1401 through 1440) for the purpose of accepting federal housing assistance monies and may participate in the housing assistance payments program. Federal monies may be secured for all areas of this state subject only to the limitations prescribed in subsection F of this section. F. For areas of this state where an existing public housing authority has not been established pursuant to section 36-1404, subsection A, the department acting as a public housing agency may undertake all activities under the section 8 tenant-based rental housing assistance payment program, except that the department shall not undertake a section 8 tenant-based rental housing assistance payment program within the boundaries of a city, town or county unless authorized by resolution of the governing body of the city, town or county. If the department accepts monies for a section 8 tenant-based rental housing assistance payment program for areas of this state where an existing public housing authority has been established pursuant to section 36-1404, subsection A, the department shall only accept and secure federal monies to provide housing for the seriously mentally ill or other populations with disabilities. The department may accept and secure federal monies for undertaking all contract administrator activities authorized under a section 8 project-based rental housing assistance payment program in all areas of this state and this participation does not require the authorization of any local governing body. G. The department shall not itself directly own, construct, operate or rehabilitate any housing units, except as may be necessary to protect the department's collateral or security interest arising out of any department programs. H. Notwithstanding any other provision of this section, the department may obligate monies as loans or grants applicable to programs and activities of the department for the purpose of providing housing opportunities for low or moderate income households or for housing affordability or to prevent or combat decaying housing stock. Unless otherwise required by federal or state law, any loan repayments shall be deposited in the Arizona department of housing program fund established by section 41-3957. I. For any construction project financed by the department pursuant to subsection C of this section, except for contract administration activities in connection with the project-based section 8 program, the department shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government. The department shall not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations. J. The department has the administrative responsibility through its hearing officer function concerning alleged violations of the Arizona mobile home parks residential landlord and tenant act under title 33, chapter 11. K. The Arizona department of housing shall act consistently with the minimum standards of the United States department of housing and urban development so as to be designated the state inspector for manufactured homes and related industries. The Arizona department of housing shall implement all existing laws and regulations established by the federal government, its agencies and this state for that purpose. L. For the purposes of this section, "permanent supportive housing" means long-term housing assistance paired with supportive services that are aimed at individuals experiencing homelessness or individuals with special needs. 41-3955. Housing trust fund; purpose; annual report A. The housing trust fund is established, and the director shall administer the fund. The fund consists of monies from unclaimed property deposited in the fund pursuant to section 44-313, monies transferred pursuant to section 35-751 and investment earnings. B. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. C. Except as provided in subsection D of this section, fund monies shall be spent on approval of the department for developing projects and programs connected with providing housing opportunities for low and moderate income households and for housing affordability programs. A portion of fund monies shall be used exclusively for housing in rural areas. D. Fund monies may be spent on constructing or renovating facilities and on housing assistance, including support services. Fund monies shall be awarded in the following order of priority for the first four months of each fiscal year: 1. State matching monies for various federally funded programs. 2. Constructing or renovating emergency shelter facilities or for any operational expenses for emergency shelter services. 3. Constructing or renovating transitional housing units. 4. Constructing or renovating other types of shelter or housing as determined by the department to best serve the needs of individuals who have been determined to be seriously mentally ill and chronically resistant to treatment. E. For the purposes of subsection C of this section, in approving the expenditure of monies, the director shall give priority to funding projects that provide for operating, constructing or renovating facilities for housing for low-income families and that provide housing and shelter to families that have children. F. After the four-month period prescribed in subsection D of this section, fund monies that have not been awarded or encumbered pursuant to the priority list prescribed in subsection D of this section may be spent based on stakeholder feedback. G. The department shall submit for review by the joint legislative budget committee all programs established by the department and funded by the housing trust fund pursuant to this section. H. The director shall report annually to the legislature on the status of the housing trust fund. The report shall include a summary of facilities for which funding was provided during the preceding fiscal year and shall show the cost and geographic location of each facility and the number of individuals benefiting from the operation, construction or renovation of the facility. The report shall also include the number of individuals who benefit from housing assistance pursuant to subsection D of this section. The report shall be submitted to the president of the senate and the speaker of the house of representatives, and a copy provided to the secretary of state, not later than September 1 of each year. I. Monies in the housing trust fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. J. An amount not to exceed ten percent of the housing trust fund monies may be appropriated annually by the legislature to the department for administrative costs in providing services relating to the housing trust fund. K. For any construction project financed by the department pursuant to this section, the department shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government. The department shall not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations. 41-3955.01. Seriously mentally ill housing trust fund; purpose; report A. The seriously mentally ill housing trust fund is established. The director of the Arizona health care cost containment system administration shall administer the fund. The fund consists of monies received pursuant to section 44-313 and investment earnings. B. On notice from the director of the Arizona health care cost containment system administration, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. C. Fund monies shall be spent on approval of the Arizona health care cost containment system administration solely for housing projects and rental assistance for seriously mentally ill persons. D. The director of the Arizona health care cost containment system administration shall report annually to the legislature on the status of the seriously mentally ill housing trust fund. The report shall include a summary of facilities for which funding was provided during the preceding fiscal year and shall show the cost and geographic location of each facility and the number of individuals benefiting from the operation, construction or renovation of the facility. The report shall also include the number of individuals who benefited from rental assistance. The report shall be submitted to the president of the senate and the speaker of the house of representatives not later than September 1 of each year. E. Monies in the seriously mentally ill housing trust fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. F. An amount not to exceed ten percent of the seriously mentally ill housing trust fund monies may be appropriated annually by the legislature to the Arizona health care cost containment system for administrative costs in providing services relating to the seriously mentally ill housing trust fund. G. For any construction project financed by the Arizona health care cost containment system administration pursuant to this section, the administration shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government. The Arizona health care cost containment system administration shall not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations. 41-3955.02. Military transitional housing fund; purposes; annual report; definition A. The military transitional housing fund is established consisting of legislative appropriations and monies allocated from any federal sources, including monies provided by affordable housing legislation and unused or undesignated donations and undesignated federal monies for which military transitional housing is eligible. The director shall administer the fund. Monies in the fund are continuously appropriated. Monies shall be deposited in the fund by order of the governor and shall be spent on newly constructed transitional housing, in cooperation with veteran owned and operated nonprofit organizations and for-profit organizations that serve military members who are transitioning to veteran status. Monies may also be used for supportive services and transitional unit rehabilitation for veterans. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. B. Fund monies shall be spent for developing projects and programs to provide transitional housing opportunities for military members separating from the military to be housed in newly constructed housing facilities and rehabilitated housing for veterans. Monies cannot be spent on unoccupied hotels and motels designated for homeless veterans. Fund monies may only be spent for the specific purpose of providing transitional housing for military members who will be separating or who have recently separated from the military or for veterans and may be spent on purchasing and constructing transitional housing facilities for military members who are transitioning into civilian life and rehabilitating housing units for veterans. C. On or before September 1 of each year, the director shall submit a report on the status of the military transitional housing fund, including a summary of facilities for which funding was provided during the preceding fiscal year, the cost and geographic location of each facility and the number of individuals benefiting from the operation, purchase or construction of the facility, to the president of the senate and the speaker of the house of representatives and provide a copy of the report to the secretary of state. D. The department may use not more than ten percent of the fund monies annually to administer the fund. E. For any construction project financed by the department pursuant to this section, the department shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government. The department may not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations. F. For the purposes of this section, "undesignated federal monies" means federal stimulus monies and monies originating from federal affordable housing legislation, the United States department of veterans affairs or the United States department of housing and urban development that have not been allocated or approved for a specific purpose or project within three months after the applicable expenditure deadline for the monies. 41-3956. Comprehensive performance measurement system; tracking system; wire transfer protocols; reporting requirements; definitions A. The department shall: 1. Establish and implement a comprehensive performance measurement system that requires all of the following: (a) Annual goals with measurable benchmarks for each housing program in this state. (b) Mechanisms for data collection and review to assess the effectiveness of the housing programs administered by the department. (c) Quarterly reporting to the president of the senate and the speaker of the house of representatives regarding program performance outcomes, suggested improvements for affordable housing, reductions in homelessness and other key metrics. 2. Establish secure wire transfer protocols to mitigate fraud risks, including all of the following: (a) Dual authorization for all wire transfers that exceed $10,000. (b) Working within the department's authority to implement real-time fraud detection and reporting measures that are integrated into the financial management system. (c) Mandatory reconciliation and auditing of all wire transfers on a monthly basis. 3. Engage the board of manufactured housing established by section 41-4009 to review regulatory fees associated with manufactured housing in this state to ensure alignment with regulatory costs. Any fee changes shall be approved by the board of manufactured housing. All complaints related to manufactured housing must be resolved within the United States department of housing and urban development guidelines pursuant to 24 Code of Federal Regulations part 3288. 4. Establish a tracking system that monitors complaint resolution timelines. The department shall provide quarterly reports regarding any unresolved complaints to the board of manufactured housing, the president of the senate and the speaker of the house of representatives. 5. Require all staff to complete a conflict of interest disclosure form annually, review all forms to determine whether there are any substantial interest disclosures and maintain a special file of all substantial interest disclosures. B. The department shall report any instance of fraudulent activity involving state monies to the governor, the joint legislative budget committee and the auditor general within ten business days. The department shall initiate restitution efforts within thirty days after identifying the fraudulent activity. C. For the purposes of this section: 1. "Comprehensive performance measurement system" means a systematic process for tracking, evaluating and reporting on program outcomes, including establishing goals, performance benchmarks and measurable outcomes. 2. "Wire transfer protocols" means secure processes and standards to prevent unauthorized financial transfers. 41-3957. Arizona department of housing program fund; purpose A. The Arizona department of housing program fund is established, and the department shall administer the fund. The fund consists of monies deposited pursuant to sections 35-726, 35-728 and 41-3953, other monies directed to be deposited in the fund and investment earnings on monies in the fund. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. All monies in the fund are designated as special state funds for all purposes of section 35-142. B. Monies in the fund are continuously appropriated. The department shall use monies in the fund to pay the costs of administering the programs from which the deposits are received and for other department programs. C. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 41-4001. Definitions In this chapter, unless the context otherwise requires: 1. "Accessory structure" means the installation, assembly, connection or construction of any one-story habitable room, storage room, patio, porch, garage, carport, awning, skirting, retaining wall, evaporative cooler, refrigeration air conditioning system, solar system or wood decking attached to a new or used manufactured home, mobile home or factory-built building. 2. "Act" means the national manufactured housing construction and safety standards act of 1974 and title VI of the housing and community development act of 1974 (P.L. 93-383, as amended by P.L. 95-128, 95-557, 96-153 and 96-339). 3. "Alteration": (a) Means the replacement, addition, modification or removal of any equipment or installation after the sale by a manufacturer to a dealer or distributor but before the sale by a dealer to a purchaser, which may affect compliance with the standards, construction, fire safety, occupancy, plumbing or heat-producing or electrical system. (b) Does not include: (i) The repair or replacement of a component or appliance requiring plug-in to an electrical receptacle if the replaced item is of the same configuration and rating as the component or appliance being repaired or replaced. (ii) The addition of an appliance requiring plug-in to an electrical receptacle if the appliance is not provided with the unit by the manufacturer and the rating of the appliance does not exceed the rating of the receptacle to which the appliance is connected. 4. "Board" means the board of manufactured housing. 5. "Broker" means any person who acts as an agent for the sale or exchange of a used manufactured home or mobile home except as exempted in section 41-4028. 6. "Certificate" means a numbered or serialized label or seal that is issued by the director as certification of compliance with this chapter. 7. "Closed construction" means any building, building component, assembly or system manufactured in such a manner that concealed parts or processes of manufacture cannot be inspected before installation at the building site without disassembly, damage or destruction. 8. "Commercial" means a building with a use-occupancy classification other than single-family dwelling. 9. "Component" means any part, material or appliance that is built-in as an integral part of the unit during the manufacturing process. 10. "Consumer" means either a purchaser or seller of a unit regulated by this chapter who uses the services of a person licensed by the department. 11. "Consummation of sale" means that a purchaser has received all goods and services that the dealer or broker agreed to provide at the time the contract was entered into, the transfer of title or the filing of an affidavit of affixture, if applicable, to the sale. Consummation of sale does not include warranties. 12. "Dealer" means any person who sells, exchanges, buys, offers or attempts to negotiate or who acts as an agent for the sale or exchange of factory-built buildings, manufactured homes or mobile homes except as exempted in section 41-4028. A lease or rental agreement by which the user acquired ownership of the unit with or without additional remuneration is considered a sale under this chapter. 13. "Defect" means any defect in the performance, construction, components or material of a unit that renders the unit or any part of the unit unfit for the ordinary use for which it was intended. 14. "Department" means the Arizona department of housing. 15. "Director" means the director of the department. 16. "Earnest monies" means all monies given by a purchaser or a financial institution to a dealer or broker before consummation of the sale. 17. "Factory-built building": (a) Means a residential or commercial building that is: (i) Either wholly or in substantial part manufactured at an off-site location and transported for installation or completion, or both, on-site. (ii) Constructed in compliance with adopted codes, standards and procedures. (iii) Installed temporarily or permanently. (b) Does not include a manufactured home, recreational vehicle, panelized commercial building using open construction, panelized residential building using open or closed construction or domestic or light commercial storage building. 18. "HUD" means the United States department of housing and urban development. 19. "Imminent safety hazard" means an imminent and unreasonable risk of death or severe personal injury. 20. "Installation" means: (a) Connecting new or used mobile homes, manufactured homes or factory-built buildings to on-site utility terminals or repairing these utility connections. (b) Placing new or used mobile homes, manufactured homes, accessory structures or factory-built buildings on foundation systems or repairing these foundation systems. (c) Providing ground anchoring for new or used mobile homes or manufactured homes or repairing the ground anchoring. 21. "Installer" means any person who engages in the business of performing installations of manufactured homes, mobile homes or factory-built buildings. 22. "Installer of accessory structures" means any person who engages in the business of installing accessory structures. 23. "Listing agreement" means a document that contains the name and address of the seller, the year, manufacturer and serial number of the listed unit, the beginning and ending dates of the time period that the agreement is in force, the name of the lender and lien amount, if applicable, the price the seller is requesting for the unit, the commission to be paid to the licensee and the signatures of the sellers and the licensee who obtains the listing. 24. "Local enforcement agency" means a zoning or building department of a city, town or county or its agents. 25. "Manufactured home" means a structure built in accordance with the act. 26. "Manufacturer" means any person that is engaged in manufacturing, assembling or reconstructing any unit regulated by this chapter. 27. "Mobile home" means a structure built before June 15, 1976, on a permanent chassis, capable of being transported in one or more sections and designed to be used with or without a permanent foundation as a dwelling when connected to on-site utilities. Mobile home does not include recreational vehicles and factory-built buildings. 28. "Office" means the office of manufactured housing within the department. 29. "Open construction" means any building, building component, assembly or system manufactured in such a manner that all portions can be readily inspected at the building site without disassembly, damage or destruction. 30. "Purchaser" means a person purchasing a unit in good faith from a licensed dealer or broker for purposes other than resale. 31. "Qualifying party" means a person who is an owner, employee, corporate officer or partner of the licensed business and who has active and direct supervision of and responsibility for all operations of that licensed business. 32. "Reconstruction" means construction work performed for the purpose of restoration or modification of a unit by changing or adding structural components or electrical, plumbing or heat or air producing systems. 33. "Recreational vehicle" means a vehicular type unit that is: (a) A portable camping trailer mounted on wheels and constructed with collapsible partial sidewalls that fold for towing by another vehicle and unfold for camping. (b) A motor home designed to provide temporary living quarters for recreational, camping or travel use and built on or permanently attached to a self-propelled motor vehicle chassis or on a chassis cab or van that is an integral part of the completed vehicle. (c) A park trailer built on a single chassis, mounted on wheels and designed to be connected to utilities necessary for operation of installed fixtures and appliances and has a gross trailer area of not less than three hundred twenty square feet and not more than four hundred square feet when it is set up, except that it does not include fifth wheel trailers. (d) A travel trailer mounted on wheels, designed to provide temporary living quarters for recreational, camping or travel use, of a size or weight that may or may not require special highway movement permits when towed by a motorized vehicle and has a trailer area of less than three hundred twenty square feet. This subdivision includes fifth wheel trailers. If a unit requires a size or weight permit, it shall be manufactured to the standards for park trailers in a 119.5 of the American national standards institute code. (e) A portable truck camper constructed to provide temporary living quarters for recreational, travel or camping use and consisting of a roof, floor and sides designed to be loaded onto and unloaded from the bed of a pickup truck. 34. "Residential" means a building with a use-occupancy classification of a single-family dwelling or as governed by the international residential code. 35. "Salesperson" means any person who, for a salary, commission or compensation of any kind, is employed by or acts on behalf of any dealer or broker of manufactured homes, mobile homes or factory-built buildings to sell, exchange, buy, offer or attempt to negotiate or act as an agent for the sale or exchange of an interest in a manufactured home, mobile home or factory-built building. 36. "Seller" means a natural person who enters into a listing agreement with a licensed dealer or broker for the purpose of resale. 37. "Site development" means the development of an area for the installation of the unit's or units' locations, parking, surface drainage, driveways, on-site utility terminals and property lines at a proposed construction site or area. 38. "Statutory agent" means a person who is on file with the corporation commission as the statutory agent. 39. "Title transfer" means a true copy of the application for title transfer that is stamped or validated by the appropriate government agency. 40. "Unit" means a manufactured home, mobile home, factory-built building or accessory structures. 41. "Used unit" means any unit that is regulated by this chapter and that has been sold, bargained, exchanged or given away from a purchaser who first acquired the unit that was titled in the name of that purchaser. 42. "Workmanship" means a minimum standard of construction or installation reflecting a journeyman quality of the work of the various trades. 41-4002. Office of manufactured housing; purpose The purpose of the office of manufactured housing within the department is to maintain and enforce standards of quality and safety for manufactured homes, factory-built buildings, mobile homes and accessory structures and installation of manufactured and mobile homes, factory-built buildings and accessory structures. The affairs of the office of manufactured housing shall be conducted consistently with minimum standards of the United States department of housing and urban development so as to be designated the "state inspector" for manufactured homes and related industries. The office shall implement all existing laws and regulations mandated by the federal government, its agencies and this state for such purposes. 41-4004. Powers and duties of department; work by unlicensed person; inspection agreement; permit A. The department shall: 1. Establish a state inspection and design approval bureau within the department. 2. Enter into reciprocity agreements and compacts with other states or private organizations that adopt and maintain standards of construction reasonably consistent with those adopted pursuant to this article on determining that such standards are being enforced. The director may void such agreements on determining such standards are not being maintained. 3. Issue a certificate to indicate compliance with the construction requirements of this article. 4. Enter and inspect or investigate premises at reasonable times, after presentation of credentials by the director or personnel of the office or under contract with the office, where units regulated by this article are manufactured, sold or installed, to determine if any person has violated this chapter or the rules adopted pursuant to this chapter. 5. Enter into agreements with local enforcement agencies to enforce the installation standards in their jurisdiction provided the director is monitoring their performance to be consistent with the installation standards of the office. 6. If an inspection reveals that a mobile home entering this state for sale or installation is in violation of this chapter, order its use discontinued and the mobile home or any portion of the mobile home vacated. The order to vacate shall be served on the person occupying the mobile home and copies of the order shall be posted at or on each exit of the mobile home. The order to vacate shall include a reasonable period of time in which the violation can be corrected. 7. If an inspection of a new installation of any mobile home or manufactured home reveals that the natural gas or electrical connections of the installation do not conform to the installation standards promulgated pursuant to this chapter and the nonconformance constitutes an immediate danger to life and property, the inhabitants of the home shall be notified immediately and in their absence a notice citing the violations shall be posted in a conspicuous location. The director may order that the public service corporation, municipal corporation or other entity or individual supplying the service to the unit discontinue such service. If the danger is not immediate, the director shall allow at least twenty-four hours to correct the condition before ordering any discontinuation of service. 8. If construction, installation, rebuilding or any other work is performed in violation of this chapter or any rule adopted pursuant to this chapter, order the work stopped. The order to stop work shall be served on the person doing the work or on the person causing the work to be done. The person served with the order shall immediately cease the work until authorized by the office to continue. 9. Verify written complaints filed with the office by purchasers within one year after the date of purchase or installation of units. Complaints shall be accepted from consumers that allege violations by any dealer, broker, salesperson, installer or manufacturer of this chapter or the rules adopted pursuant to this chapter. 10. On verification of a complaint pursuant to paragraph 9 of this subsection, serve notice to the dealer, broker, salesperson, installer or manufacturer that such verified complaint shall be satisfied as specified by the office. 11. Provide to the board every six months the year-to-date fund balance of and a listing of the year-to-date revenues and expenditures from the mobile home relocation fund established by section 33-1476.02. The information shall be updated and posted on the department's website. B. Any dealer, broker, salesperson, installer or manufacturer licensed by the office shall respond within thirty days to a notice served pursuant to subsection A, paragraph 10 of this section. Failure to respond is grounds for disciplinary action pursuant to section 41-4039. C. If an inspection or an investigation reveals that any work that is required to be performed by a licensee was performed by an unlicensed person required to be licensed pursuant to this chapter, the director, an employee or a person under contract with the office may cite the unlicensed person. The citation may be issued and served pursuant to section 13-3903. The action shall be filed in the justice court in the precinct where the unlicensed activity occurred. D. The director may enter into agreements with acceptable qualified building inspection personnel or inspection organizations for enforcement of inspection requirements provided the director is monitoring their performance to be consistent with this chapter, rules adopted pursuant to this chapter and the established procedures of the office. If the director determines that the person's or organization's performance is not consistent with this chapter, rules adopted pursuant to this chapter and the established procedures of the office, the person or organization may not enforce the contract and the aggrieved person shall be entitled to a refund of the consideration paid under the agreement. E. If a mobile or manufactured home or factory-built building is installed without first obtaining an installation permit, the director shall send a written notice to the purchaser specifying that a permit is required. If a permit is not obtained within thirty days after receipt of the written notice, the department shall issue and serve by personal service or certified mail a citation on the purchaser. Service of the citation by certified mail is complete after forty-eight hours after the time of deposit in the mail. On failure of the purchaser to comply with the citation within twenty days after its receipt, the director shall file an action in the justice court in the precinct where installation occurred for violation of this subsection. 41-4005. Submission of construction, reconstruction or alteration plans by manufacturers; approval; revocation A. Before the construction of any new model of factory-built building, each manufacturer who intends to manufacture for delivery or sell such unit in this state shall submit to the director for approval detailed plans of each model and shall have obtained such approval. B. Before reconstruction of any factory-built building, including those for which the director has not approved plans before construction, the licensee shall submit to the director for approval detailed plans of the factory-built building that indicate conformance with this state's adopted codes as certified by an engineer who is registered pursuant to title 32, chapter 1. C. Before installation of a factory-built building or accessory structure, each licensee who intends to accomplish the construction shall submit to the director for approval detailed plans for each project and shall obtain the director's approval. D. The office or a third-party inspector who is authorized by the director to verify compliance with the approved plans shall inspect the factory-built building. E. A plan approval may be immediately suspended by the written notice of the director if the director has reasonable cause to believe that the licensee is not complying with the plan as approved or that the licensee has used inferior materials or workmanship in construction. This notice shall be served by personal service to an in-state licensee and by certified mail to an out-of-state licensee. Service of process by certified mail is complete after forty-eight hours from the time of deposit in the mail. 41-4006. Preemption of local building codes; responsibility for maintenance of utility connections A. No building code or local enforcement agency or its adopted building codes may require, as a condition of entry into or sale in any county or municipality, that any unit that has been certified pursuant to this chapter be subjected to any local enforcement inspection to determine compliance with any standard covering any aspect of the unit that is inspected pursuant to this article. B. Except where a local enforcement agency participates in the office permit and certificate issuance program for the installation of manufactured homes, mobile homes, factory-built buildings and accessory structures and inspection of such installations, no local enforcement agency shall subject any unit installed to any local inspections or charge a fee for any services provided pursuant to this article. C. A local enforcement agency in any county or municipality shall recognize the minimum standards of the act as equal to any nationally accepted or locally adopted building code standard. D. Nothing in subsection A, B or C of this section shall prevent the application of local codes and ordinances governing zoning requirements, fire zones, building setback, maximum area and fire separation requirements, site development and property line requirements and requirements for on-site utility terminals for factory-built buildings, manufactured homes and mobile homes. E. Notwithstanding any other provision of this section, the owner of a manufactured home or mobile home located in a park subject to title 33, chapter 11 is responsible for the maintenance of utility connections from any outlets furnished by the landlord pursuant to section 33-1434 to the unit, except that the landlord is responsible for the maintenance of connections for any distance greater than twenty-five feet to the point at which the utility connections are the property of the providing utility company if the outlet is located outside the lot line of the owner's unit and is more than twenty-five feet from the unit. A local enforcement agency that determines that local code requirements are not being met or that maintenance or safety activities are needed for utility connections may not require anyone except the responsible party to perform or pay for such activities. 41-4007. Notification and correction of defects by manufacturer; notice to purchaser A. Every manufacturer of units shall furnish notification of any defect in any unit produced by such manufacturer which he determines, in good faith, relates to a construction or safety standard adopted pursuant to this chapter or contains a defect which constitutes an imminent safety hazard to the purchaser of such unit, within sixty days after such manufacturer has discovered the defect. Every manufacturer of units shall maintain a record of the names and addresses of the purchaser of each unit for the purposes of this section. Such information shall be provided by the dealer or broker upon purchase of each unit and reported monthly to the manufacturer. B. The notification required by subsection A shall contain a clear description of such defect or failure to comply with such construction or safety standards, an evaluation of the risk to the occupants' safety reasonably related to such defect and a statement of the measures needed to repair the defect. The notification shall also inform the owner whether the defect will be corrected at no cost to the purchaser of the unit or at the expense of the purchaser. 41-4008. Costs of complying with standards; reimbursement from relocation fund; definition A. The costs of bringing a mobile home into compliance with the requirements of this article may be reimbursed to the owner from the mobile home relocation fund established by section 33-1476.02 if all of the following are true: 1. The mobile home is moved from one mobile home park in this state to another mobile home park in this state. 2. The household income of the owner of the mobile home is at or below one hundred per cent of the current federal poverty level guidelines as published annually by the United States department of health and human services. 3. The mobile home is not being relocated as the result of a judgment in a forcible detainer or special detainer action requiring the owner to vacate the mobile home park in which the mobile home is located. B. The amount of the reimbursement pursuant to this section shall not exceed one thousand five hundred dollars for the costs related to any mobile home. C. The fund shall have a claim for reimbursement of sums received under this section by an individual who fails to reside in the mobile home for six months following its relocation, unless the failure was due to the death or disability of a resident. D. For the purposes of this section, "owner" means an individual whose primary residence has been the mobile home continuously for the six-month period preceding an application for reimbursement, or an individual who has purchased the mobile home and who intends to reside in the mobile home as the individual's primary residence after the relocation. 41-4009. Board of manufactured housing; members; meetings A. The board of manufactured housing is established. The board consists of the following nine members who are appointed by the governor pursuant to section 38-211: 1. One member who represents the manufacturers of manufactured homes. 2. One member who represents the installer industry. 3. One member who represents manufactured home park owners. 4. One member who represents financial institutions. 5. One member who represents the manufacturers of factory-built buildings. 6. One Member who represents the dealers and brokers. 7. Three members of the public, at least one of whom has as his residence a mobile or manufactured home and is a resident of a mobile home park or manufactured home park, who represent who the consumers of this state. B. Each member shall be appointed for a term of three years. The governor may remove any member from the board for incompetency, improper conduct, disability or neglect of duty. Members are eligible to receive compensation pursuant to section 38-611 and are eligible for reimbursement for expenses incurred while attending meetings called by the board pursuant to title 38, chapter 4, article 2. C. The board annually shall select from its membership a chairperson for the board. D. The board shall meet on call of the chairperson or on the request of at least four members. 41-4010. Powers and duties of board A. The board shall: 1. Adopt rules imposing minimum construction requirements for factory-built buildings and components thereof that are reasonably consistent with nationally recognized and accepted publications or generally accepted manufacturing practices pertinent to the construction and safety standards for such item to be manufactured. These standards shall include minimum requirements for the safety and welfare of the public. 2. Adopt rules imposing requirements for body and frame design and construction and installation of plumbing, heating and electrical systems for manufactured homes that are consistent with the rules and regulations for construction and safety standards adopted by the United States department of housing and urban development. 3. Adopt rules relating to plan approvals as to requirements for the design, construction, alteration, reconstruction and installation of units or accessory structures as deemed necessary by the board to carry out this chapter. 4. Establish a schedule of fees, payable by persons, licensees or owners of units regulated by this chapter, for inspections, licenses, permits, plan reviews, administrative functions and certificates so that the total annual income derived from such fees will not be less than ninety-five percent and not more than one hundred five percent of the anticipated expenditures for the administration of the activities described in this subsection. 5. Adopt rules relating to the inspection throughout the state by the department of the installation of manufactured homes, mobile homes, factory-built buildings and accessory structures included as part of a sales contract for a manufactured home, mobile home or factory-built building or included in an agreement to move a manufactured home, mobile home or factory-built building. 6. Establish and maintain licensing standards and bonding requirements for all manufacturers of manufactured homes and factory-built buildings regulated pursuant to this chapter. 7. Establish and maintain licensing standards and bonding requirements for all dealers and brokers of manufactured homes, mobile homes and factory-built buildings thereof who sell or arrange the sale of such products within this state. 8. Establish and maintain licensing standards and bonding requirements for all installers of manufactured homes, mobile homes and accessory structures and certified standards for all persons who repair these homes and structures under warranties and who are not employees of the manufacturer. 9. Establish and maintain licensing standards for all salespersons of manufactured homes, mobile homes and factory-built buildings. These standards shall not include educational requirements. 10. Adopt rules consistent with the United States department of housing and urban development procedural and enforcement regulations and enter into such contracts necessary to administer the federal manufactured home regulations. 11. Adopt rules imposing minimum fire and life safety requirements in the categories of fire detection equipment, flame spread for gas furnace and water heater compartments, egress windows, electrical system and gas system for mobile homes entering this state. 12. Adopt rules for inspections and permits for minimum fire and life safety requirements and establish fees for such inspections and permits for mobile homes entering this state. 13. Adopt such other rules as the board deems necessary for the department to carry out this chapter and, to the extent not authorized by other provisions of this section, adopt rules as necessary to interpret, clarify, administer or enforce this chapter. 14. Adopt rules relating to the installation of manufactured homes, mobile homes, factory-built buildings and accessory structures included as part of a sales contract for a used mobile home, new or used manufactured home or new or used factory-built building or part of an agreement to move a used mobile home, new or used manufactured home or new or used factory-built building. This paragraph does not apply to: (a) Single wide factory-built buildings that are used for construction project office purposes and that are not used by the public. (b) Storage buildings of less than one hundred sixty-eight square feet that are not used by the public. (c) Equipment buildings that are not used by the public. 15. Adopt rules relating to acceptable workmanship standards. 16. Adopt rules relating to issuing permits to licensees, owners of units or other persons for the installation of manufactured homes, mobile homes, factory-built buildings and accessory structures. 17. Adopt rules including a requirement that a permit shall be obtained before the installation of a mobile or manufactured home. 18. Establish standards for the permanent foundation of a manufactured home, mobile home or factory-built building. B. In adopting rules pursuant to subsection A, paragraph 3 of this section, the board shall consider for adoption any amendments to the codes and standards referred to in subsection A, paragraphs 1 and 2 of this section. If the board adopts the amendments to such codes and standards, the department shall notify the manufacturers licensed pursuant to article 4 of this chapter ninety or more days before the effective date of such amendments. C. Chapter 6 of this title does not apply to the setting of fees under subsection A, paragraph 4 of this section. D. Rules adopted pursuant to subsection A, paragraph 14 of this section shall be standard throughout this state and may be enforced by the local enforcement agencies on installation to ensure a standard of safety. The board may make an exception to the standard if, on petition by a local jurisdiction participating in the installation inspection program, local conditions justify the exemption or it is necessary to protect the health and safety of the public. On its own motion, the board may revise or repeal any exception. 41-4023. General powers and duties The director shall appoint the deputy director who shall, under the authority and direction of the director: 1. Establish licensing and regulation procedures in accordance with this article and issue certification documents for compliance with the licensing and bonding requirements of this article. 2. Issue certificates to indicate compliance with the construction requirements of article 3 of this chapter. 3. Provide for investigative support, enforcement, penalty procedures, hearings and rehearings in accordance with this chapter. 4. Establish field offices for the department as required. 5. Issue permits to licensees, owners of units and other persons for the installation of manufactured homes, mobile homes and factory-built buildings and the rehabilitation of mobile homes. 41-4025. Qualifications and requirements for licensure A. A manufacturer, dealer, broker, salesperson or installer license shall be issued by the director. B. The director shall: 1. Qualify applicants for a license. 2. Conduct investigations as the director deems necessary. 3. Establish and administer written examinations for the applicable license classifications. C. The director may establish experience requirements for installers of manufactured homes, mobile homes, factory-built buildings and accessory structures. D. To obtain a license pursuant to this article, the applicant shall submit to the director a notarized application on forms prescribed by the department together with the required license fee. The application shall contain the following information: 1. A designation of the classification of license sought by the applicant. 2. The name, birth date and address of an individual applicant. 3. If the applicant is a partnership, the name, birth date and address of all partners with a designation of any limited partners. 4. If the applicant is a corporation, association or other organization, the names, birth dates and addresses of the president, vice president, secretary and treasurer. 5. For all licenses,