Some specialized requirements:
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Operating oil or gas wells
New construction – 75’ is the minimum distance of the dwelling from the oil or gas well site boundary
Existing house – 300’ is the minimum distance of the dwelling from the oil or gas well site boundary -
Abandoned oil or gas wells
With safety letter – 10’ is the minimum distance
Without safety letter – 300’ is the minimum distance -
Overhead high-voltage transmission lines (H-VET)
“No dwelling or related property improvement may be located within the engineering (designed) fall distance of any pole, tower or support structure of a high-voltage transmission line, radio/TV transmission tower, microwave relay dish or tower or satellite dish (radio, TV cable, etc.). For field analysis, the appraiser may use tower height as the fall distance.”
H-VET are defined as 60 kilovolts or greater
High voltage lines are 12-60kv
Low voltage lines are 12kv or less
Low voltage lines may not pass over any structure on subject property -
Stationary Storage Tank
If the subject is within 300 feet of a stationary storage tank of 1000 gallons or more of explosive or flammable materials, the property is not eligible for FHA insured financing
From the 4150.2 “M. STATIONARY STORAGE TANKS
Stationary Storage tanks containing flammable or explosive material pose potential hazards to housing, including hazards from fire and explosions. If the property is within 300 feet of a stationary, storage tank containing more than 1000 gallons of flammable or explosive material, the site is ineligible.”
Foundation
Clearance between the bottoms of the floor joists and the earth is recommended to be 18”. It is “highly” recommended but not required.
If the subject property has a view which is typical of other houses in the neighborhood, you should describe the view: briefly
Certification Label
If the tags are missing, the property should be rejected, but even though HUD does not reissue Certification Labels, all may not be lost. The certification numbers may be verified from different sources including the manufacturer or the in-plant inspection agency; HUD may be able to issue a letter of label tag verification
Provided here is a copy of a January 4, 2006 response to a question submitted to the Santa Ana HOC providing direction to an appraiser who had written asking what to do when he could obtain all the information from the data plate, but was unable to find the certification label; it appeared the label had been covered.
“Response: All manufactured homes must have an affixed HUD seal(s) located on the outside of the home. If the home is a multi-wide unit, each unit must have a seal. They will be numbered sequentially. If for any reason the tags are missing, the Appraiser must recommend ‘rejecting’ the property and notify the Lender. In some states, a manufactured home may not be re-sold if missing a seal. If this is the case, the property is a reject. If this is not the case, then, the Lender may send an E-Mail to the Department’s Manufactured Housing and Standards Division Program office, at (mhs@hud.gov) and request issuance of a letter stating that the home had originally been issued a HUD label. The information, on the data plate inside the home, is not an acceptable alternative. However, the Lender/Home Owner needs to obtain the serial number(s), of the home, from the data plate found inside the home, or the serial numbers found on the front cross member, on the steel chassis under the home; and provide the serial number(s), to the Program office listed above. Additionally, the Department can more easily assist if you provide the following information: Name and Address of the Manufacturer, Date of Manufacture (Month, Day, and Year), Serial and Label Number(s) of the Home, and The Contact Person’s Name, Address, Telephone, and Fax Number. “
What follows is the link to the “Missing HUD Tags (Label)” Website.
http://www.hud.gov/offices/hsg/ramh/mhs/mhslabels.cfm
Section 7 Improvements Addition or Modifications
IMPROVEMENTS, ADDITIONS, or MODIFICATIONS
You are directed to, “Describe any additions or modifications made to the manufactured home since its initial placement on the site…”4150.2 D-59
It is best to ask the homeowner if any additions or modifications were completed in compliance with Manufactured Home Construction and Safety Standards (MHCSS). They probably will look at you with something approximating a “deer caught in the headlights” look, but it never hurts to ask. So that leaves it to you to judge if the additions or modifications present a risk to the structural integrity of the manufactured home. If you suspect the additions or modifications do cause a risk or a threat, then you are to notify your client.
The issue with manufactured houses is that the perimeter foundations are usually not designed to be load bearing. The ends of the structure are supported by the metal runners which rest on the posts. The ends are cantilevered. Many homeowners and even contractors either do not realize or forget this when making additions or improvements. They will unwittingly attach decks or additions to the sides of the manufactured house expecting the foundation of the manufactured house to carry a portion of the load of the addition or modification. As the manufactured home perimeter foundation is not designed to carry any real load at all, the results can be spectacularly unsuccessful.
Again, if you suspect the addition or modification presents a risk to the manufactured home’s structural integrity; call the lender immediately for guidance.
Also, remember that the manufactured house cannot have been moved, other than for its original placement, to qualify for an FHA insured mortgage. There are times when a manufactured house, which has been placed on a permanent foundation, will be moved again. Perhaps it was sold and moved when its sellers were in the process of building a conventional house on their site. When the manufactured house is placed in its new location, the house will not be eligible for FHA insurance because it has been moved.
IMPROVEMENTS – PERMANENT FOUNDATION SYSTEM
“To be eligible for FHA-insured financing, the design of the permanent foundation must be in compliance with FHA criteria as evidenced by an engineer’s certification verifying such compliance.”
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You should ask the lender for a copy of the engineer’s certification verifying compliance. You should indicate in this section of the 1004C if the certificate was provided to you.
In the foundation protocol section, we find: “The appraiser is required to inspect the foundation and basement. The appraiser must address all visible deficiencies and may require a recommendation for an inspection. Consider deferred maintenance and physical deterioration in the valuation process.” 4150.2 D-54
When you look underneath the manufactured house, be sure to check that the towing hitch and running gear have been removed. If they have not, then the subject will not be eligible for FHA insured financing. You are directed to contact your lender. I suspect your lender will ask you to complete your appraisal assignment “subject to the removal of the tow hitch and running gear and an inspection by a qualified inspector to confirm the removal.”
You are asked to report the manufactured home installer’s name, either the person or company, if the information is readily available. If not, just note it is not in your report. Many states have their own requirements for installer’s tags. Often they are found next to or near the HUD tag. Be sure to copy down any serial or other identification numbers from the state label, if there is one. It may be easiest just to photograph it.
MFH COST APPROACH
The cost approach is required if the manufactured house is new construction. New construction is defined as the initial sale from the manufacturer. The cost approach is not required if the manufactured home is less than one year old, but the sale for which you are doing the appraisal is for the resale of the manufactured home. Occasionally you will run into this case. The cost approach is not required if the manufactured home is over a year old.
If the manufactured home is over one year old and the retailer’s invoice showing the purchase price is available, a copy should be included with your report.
Happily, if the manufactured house is new construction, you can use the retail purchase price including delivery, installation and set-up costs instead of relying on a recognized cost service. You must include a copy of the invoice showing the retail purchase price and all the other costs identified. Don’t forget that you will need to reconcile any data used in the development of the cost approach.
To summarize:
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The cost approach is not required – if less than one year old but a resale or MH is over one year old
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If MH is over one year old, if available, a copy of the invoice should be included in your report
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The cost approach is required if the subject is new construction
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If it is an initial sale from the manufacturer and the retail purchase price with delivery, installation and setup costs is available, you may “rely upon the retail purchase price and exclude reliance upon a cost service.” 4150.2 D-61
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Remember – If the subject is new construction and you are employing the retail price, including delivery, installation and set up costs – you must still provide an opinion of the value of the site
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Include a copy of the invoice showing the retail price, delivery, installation and set up costs as an exhibit in your report
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Reconciliation – very important
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Remaining economic life estimate – My best suggestion is to include the remaining economic life in both the Cost Approach and Reconciliation sections of the report.
SALES COMPARISON APPROACH
The completion of the sales comparison approach for a manufactured house is very similar to the sales comparison requirements for a “stick” or conventionally built house sales comparison analysis.
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At least two of the sales are to be manufactured homes.
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Recognize that it may be necessary to expand the search parameters. When you do, be sure to fully explain.
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You may use “stick” built houses as comparables. If you do, be sure that for the purposes of the assessment of the “comparable properties currently offered for sale in the subject neighborhood” and the assessment of the “comparable sales in the subject neighborhood within the past 12 months” you include stick built houses in your assessment.
You are taking in an order for an appraisal of a manufactured home. As part of the assignment, you should ask for: the location of the data plate
In the course of your inspection, you find a data plate that reports the subject manufactured home was built on June 15, 1977. You would: accept the manufactured house because it was built after June 15, 1976
