815 KAR 25:060. Licensing of manufactured
RELATES TO: KRS 227.550, 227.570,
227.590, 227.600, 227.610, 227.620
STATUTORY AUTHORITY: KRS 227.590
NECESSITY, FUNCTION, AND CONFORMITY: KRS 227.590
requires the Manufactured Home Certification and Licensure Board to promulgate administrative
regulations governing the standards for the manufacture and sale of
manufactured housing. E.O. 2008-507, effective June 16, 2008, reorganized the
Office of Housing, Buildings and Construction as the Department of Housing,
Buildings and Construction, and established the commissioner, rather than executive
director, as the head of the department. This administrative regulation
establishes standards for licensing persons and companies engaged in the sale
of manufactured and mobile homes.
Section 1. Definitions. (1)
"Established place of business" is defined by KRS 227.550(5).
(2) "Hard-surfaced lot" means
an area open to the public during business hours with a surface of concrete, asphalt
or macadam, compacted gravel or stone, or other material of similar characteristics.
(3) "Offer for sale" means to:
(a) Display, exhibit, sell, transfer,
exchange, or otherwise advertise a manufactured or mobile home; or
(b) Negotiate the purchase, sale, or
exchange of a manufactured or mobile home for a fee, commission, compensation,
or other valuable consideration.
(4) "Office" is defined by KRS
(5) "Registration" means the
transfer of title or other official recording of change of ownership.
(6) "Retailer" is defined by
(7) "Suitable sign" means a
permanently-erected sign with the dealership name and type in letters at least
six (6) inches high and at least one and one-half (1 1/2) inches wide.
Section 2. Exemptions from Licensure as a
Retailer. (1) A manufactured home shall be exempt from licensing and seal requirements
if the unit:
(a) Is brought into Kentucky for
exhibition purposes only;
(b) Is not sold in Kentucky; and
(c) Inspection does not reveal a condition
hazardous to health or safety.
(2) Real estate developer and retailer
venture. A retail license shall not be required of a
developer who purchases new HUD homes from a licensed Kentucky retailer, places
the homes on a parcel of land, and offers the homes for sale to ultimate
consumers, if the following conditions are met:
(a) The developer receives
prior written approval from the office;
(b) The home was installed by
a certified installer;
(c) The developer owns the
homes and the lots upon which the homes are installed;
(d) The manufacturer's
warranty period begins upon possession and shall be transferred from the
developer to the consumer-occupant;
(e) The manufacturer's
warranty support shall be performed in accordance with generally-accepted
standards for retail transactions;
(f) The manufacturer's
documentation contains the name and location of the:
2. Development; and
3. Retailer; and
(g) The retailer and
installer provides the required services as warranted and as required by laws
governing retailer and installer license or certification.
(3) Retailer’s satellite location.
(a) An additional license shall not be
required of a fully-licensed retailer for the display or sale of a manufactured
home located on an individual lot, in a subdivision, land-lease community, or
manufactured or mobile home park located within the same or adjoining county as
(b) A suitable sign identifying the name
and business location of the retailer licensee shall be posted at the location.
Section 3. License Application. (1)
Except as provided in Section 2 of this administrative regulation, a person
shall not engage in the business of selling manufactured or mobile homes within
this state without holding a valid license issued by the office for each location.
(2) Before engaging in business, an
applicant shall provide the office with:
(a) The completed Form HBCMH 2;
(b) A copy of a valid Kentucky sales tax
(c) A check or money order for the annual
license fee, in the amount of $250 for a full year, or a reduced amount
prorated on a monthly basis for a period of less than a full year, payable to
the Kentucky State Treasurer;
(d) Proof of insurance for general
liability coverage that complies with KRS 227.610 in the amount of at least:
1. $200,000 bodily injury or death for
2. $300,000 bodily injury or death for
each accident; and
3. $100,000 for damage to property; and
(e) A verified statement that the
applicant complies with zoning and other requirements of the local government
necessary for a business to operate legally.
(3) A license, unless renewed, revoked,
or suspended, shall expire on:
(a) For individuals, the last day of the
licensee’s birth month in the following year; or
1. The licensee’s
month of incorporation in the following year; and
2. The last day of
the licensee’s birth month in the following year.
(4) A licensed retailer shall maintain at
least minimum general liability insurance and shall notify the office of a
change in insurance coverage.
(5) An applicant whose place of business
is in another state and who possesses a valid retailer license in another state
(a) Be licensed upon completion and
submission of Form HBCMH 2 and compliance with this section;
(b) Not be required to maintain an
established place of business within Kentucky, if the applicant is not offering
a home for sale within Kentucky; and
(c) Provide a Kentucky seal for a used
manufactured housing unit sold for delivery into Kentucky.
(6) The office shall:
(a) Issue a correction notice to an
applicant within thirty (30) days of receiving a defective or incomplete applicant
specifying the defect;
(b) Deem the application abandoned and
the fee forfeited for an applicant who fails to submit a corrected application
in accordance with the information supplied on the application correction
notice, within thirty (30) days of receipt; and
(c) Process as a new application, a
corrected application submitted after the thirty (30) day period.
Section 4. Qualified Personnel Required: The
Certified Manager. (1) Education requirements. A new retailer license or a
renewal of an existing retailer license shall not be issued unless the retailer
employs at least one (1) person in a management position who has successfully completed
the educational training and departmental testing program administered as part
of the Certified Installer Program under 815 KAR 25:080. The proof of
experience in 815 KAR 25:080, Section 2(1)(d), shall not be required.
(2) Certification. The office shall
classify a person qualifying under subsection (1) of this section as a
(3) Exception. A certified manager shall
not be required at each licensed location for a retailer with more than one (1)
in-state location if:
(a) The retailer has only one (1) set-up,
installation, and delivery system located in Kentucky;
(b) A certified manager supervises the
work of the system; and
(c) The arrangement is approved, in
writing, by the office.
Section 5. Notification by Licensees. (1)
A retailer shall notify the office, in writing, within thirty (30) days of a
change in any of the following:
(a) Dealership name;
(b) Location of established business;
(c) Retailer ownership interest of
twenty-five (25) percent or more within a twelve (12) month period; or
(d) A principal officer or chief managing
officer of the firm.
(2) A change in ownership interest of
less than twenty-five (25) percent of the company within a twelve (12) month
period shall be reported at the time of the renewal of the license.
(3) A new license shall be required if an
established business changes location to a different county.
Section 6. Maintenance of Records. A retailer shall:
(1) Maintain the following
information, reported on Form HBCMH 23, for each new or used unit sold:
(a) Unit serial number;
(b) B1 or B2 seal number;
(c) Date manufactured, if
(d) Make and model of unit;
(e) Name and address of
(2) Retain the completed Form
HBCMH 23, for three (3) years; and
(3) Keep the form available
to a field inspector upon request.
Section 7. Incorporation by Reference.
(1) The following material is incorporated by reference:
(a) "Form HBCMH 2, Application for
Manufactured Home Retailer’s License", September 2007; and
(b) "Form HBCMH 23, Monthly
Manufactured Home Retailer Certification Format", September 2007.
(2) This material may be inspected,
copied, or obtained, subject to applicable copyright law, at the Department of
Housing, Buildings and Construction, Division of Building Code Enforcement,
Manufactured Housing Section, 101 Sea Hero Road, Suite 100, Frankfort, Kentucky
40601-5405, between 8 a.m. and 4:30 p.m., Monday through Friday. (27 Ky.R.
2975; Am. 3257; eff. 6-8-2001; 34 Ky.R. 869; 1434; eff. 1-4-2008; 35 Ky.R.
2367; 2746; eff. 7-6-2009.)