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Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Rules and Regulations
the housing sector. Further, HUD also failed to provide any evidence that a consumer market even exists for townhome-style developments made out of manufactured homes. Additionally, HUD also failed to describe any interest that would validate the above statement for the type of developments that are considered by this new provision on the part of the Opportunity Zone funds, or their managers, or even those local officials representing the Opportunity Zone areas.
The commenter was also concerned about the number of state and local authorities that the proposed rule would preempt, if finalized in its current form.
The commenter stated there are at least four major preemptions that should be considered more fully through a Federalism Consultation, consistent with Executive Order 13132. The commenter believed that the authority granted to manufactured housing producers under this provision should have triggered a proper consultation process, irrespective of the additional preemptions provided by the proposed rule for building code-related authorities affecting stairways, landings, handrails, guards and stairway illumination, siting of and installation standards for carbon monoxide alarms, and indoor ventilation requirements.
The commenter suggested that prior to finalizing the rule, HUD should pause to complete a Federalism Consultation and more robust cost-benefit analysis, especially as it relates to disaster preparedness and recovery.
HUD Response: HUD reviewed the public comment regarding the justification for this new Subpart. In response, HUD found that the standards promulgated in this Final Rule are within the scope and authority provided by the Manufactured Home Construction and Safety Standards Act of 1974, as amended by the Manufactured Housing Improvement Act of 2000. Further, HUD believes that the future design, construction and installation of attached manufactured homes may create affordable housing opportunities and may allow manufactured homes to be placed in more urban areas where land and space restrictions have historically limited the use of manufactured housing and because the design and construction of such homes historically required specific HUD approvals creating a more burdensome and costly oversight process. These areas may include locations within Opportunity Zones.
HUD is aware of a nationwide trend that recognizes increased focus on efficient land use in many areas. HUDs Construction and Safety Standards
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allow for the industry to provide safe, decent, sanitary, and affordable housing, as the need develops.
HUD also noted that the aspects of installation would still be subject to state and local authority, as is the same for all other manufactured home installations, provided manufacturer installation instructions and state and local requirements at a minimum comply with HUDs Model Manufactured Home Installation Standards. However, HUDs Construction and Safety Standards as promulgated through this Final Rule would preempt state and local requirements for the same aspects of construction, the same as for all other manufactured homes.
3280.1002 Definitions Two commenters suggested changes to HUDs proposed regulatory text.
Another commenter stated that HUD
should reject the proposed changes to 3280.1002. Manufactured homes are designed to be transportable during the intended life of the home and allowing multi-family manufactured homes to be constructed and installed affects homeownership and the adjacent home.
Another commenter opposed the proposed rule due to its unwarranted intrusion into the modular housing construction sector. Subpart K would allow two or more adjacent manufactured homes that are structurally independent from foundation to roof and with open space on at least two sides. . . definition of Attached manufactured home at 3280.1002. In addition to federal preemption and safety risks associated with manufactured housing, the commenter asserted that HUD has not considered additional factors that make modular homebuilding preferable to manufactured housing, including:
Durability, resiliency, long-term value and resale market, access to conventional financing without the limits FHA places on manufactured home loans, and fewer zoning restrictions.
HUD Response: HUD reviewed comments that include specific text changes and has integrated those comments to the maximum extent deemed necessary to effect the appropriate changes. HUD has changed the definition for fire separation wall by removing the language that the walls be structurally independent as that requirement is already included in the definition of attached manufactured home. Further, HUD reviewed the comments suggesting intrusion into the modular housing sector and disagreed with the comments. These standards
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apply to manufactured housing and contain many of the same or similar requirements as other similar structures or similar design features and considerations.
3280.1003 Attached Manufactured Home Unit Separation Two commenters provided a significant number of suggested changes to HUDs proposed regulatory text. The commenters suggested several editorial and substantive changes to the unit separation requirements and have suggested exceptions to the requirements under certain conditions.
Some commentors have also suggested substantive changes to requirements for fire separation wall penetrations.
HUD Response: HUD reviewed comments that include specific text changes and has integrated those comments to the maximum extent deemed necessary to effect the appropriate changes that remain in line with the MHCCs recommendations.
The changes made by HUD within this standard remove reference to two attached manufactured homes and more generically requires unit separation between any attached manufactured homes. HUD has also modified the requirement that 1 hour fire-resistive rating be based on testing in accordance with ASTM E 11905, without including language stating with exposure from both sides on each attached manufactured home unit.
HUD has not integrated substantive changes to include new exceptions and HUD has not accepted substantive changes to fire separation penetrations.
HUD will consider exceptions through the Alternative Construction process, should a manufacturer be unable to meet the requirements of the standards and be able to demonstrate an equivalent level of safety. Further changes, such as those proposed by some commenters, should be proposed for review by the MHCC so that consensus review of those proposed changes is made as envisioned by the Act. It is not appropriate for HUD to integrate these changes at the final rule stage.
3280.1004

Exterior Walls
Two commenters proposed that in paragraph b, or separation wall should be added after fire separation wall and before on each manufactured home.
HUD Response: HUD reviewed comments that include specific text changes and has decided not to incorporate the change to ensure all exterior walls contain insulation.

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