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235.02.1-501. Claims, Eligibility and Administration of Fund

AR ADC 235.02.1-501Arkansas Administrative CodeEffective: August 17, 2020

West's Arkansas Administrative Code
Title 235. Arkansas Department of Labor and Licensing
Division 2. Arkansas Manufactured Home Commission
Rule 1. Rules Including General Installation & Anchoring Specifications
Chapter V. Manufactured Housing Recovery Fund
Effective: August 17, 2020
Ark. Admin. Code 235.02.1-501
Formerly cited as AR ADC 066.00.1-5
235.02.1-501. Claims, Eligibility and Administration of Fund
A. Complaints/Claims
All consumer, licensee, installer, retailer or manufacturer complaints shall be filed with the Commission. The Commission shall determine by hearing or whatever procedure it establishes first, if any, standard adopted by the Commission has been violated and, if so, the actual cost of repairs to the manufactured home, if any, suffered by the aggrieved party or parties.
B. Eligibility
For a claim against the fund to be considered, the Commission must determine the following:
1. That the home in question is located and occupied in the state of Arkansas;
2. That, at the time of the claim, the manufacturer, retailer or installer involved in the claim has an assessment on deposit in the fund; and
3. That the manufacturer, retailer or installer is unwilling or unable to take corrective action as directed by the Commission.
C. Amount of Damages Awarded
1. The amount of damages awarded by the Commission shall be limited to the actual cost of repairs to the manufactured home and shall not include attorneys' fees. On appeal to Circuit Court from an award of the Commission, the jurisdiction of the Circuit Court shall be limited to the actual cost of repairs to the manufactured home. The Circuit Court shall not have jurisdiction to award punitive or exemplary damages for claims covered by the provisions of Act 419 of 1977 as amended, attorneys' fees or costs.
2. Upon a finding by the Commission that a standard has been violated, the Commission shall direct the respondent licensee, retailer, installer or manufacturer to correct the violation within a reasonable time, not to exceed ninety (90) days following the written decision of the Commission. If the violation is not corrected within ninety (90) days following the written decision of the Commission and no appeal has been filed in Circuit Court of the decision, the Commission shall, upon request, pay from the Manufactured Housing Recovery Fund the actual cost of repairs to the manufactured home, if:
(a) The amount is not in excess of $10,000.00 for any one violation of the respondent licensee, installer, retailer or manufacturer;
(b) The fund balance is sufficient to pay the award;
(c) The complainant has assigned to the Commission all rights and claims that they have against the respondent; and,
(d) The complainant agrees to subrogate the Commission to all rights of the complainant to the extent of the payment.
3. The question of what constitutes a continuing series of violations shall be a matter solely within the discretion and judgment of the Commission.
4. Nothing herein shall obligate the fund for any amount in excess of the following with respect to the actions of any one licensee, installer, retailer or manufacturer:
(a) $12,500.00 per installer;
(b) $25,000.00 per retailer; and
(c) $75,000.00 per manufacturer.
D. Appeals
1. Appeals from a decision of the Commission shall be to the Circuit Court in accordance with the Arkansas Administrative Procedure Act. Such appeal shall stay that portion of the Commission order which directs payment of the damage. Neither the respondent nor the Commission shall be required to pay damages to the complainant until such time as a final order of the Circuit Court, Court of Appeals or Supreme Court is issued.
2. On appeal, the Circuit Court jurisdiction in awarding damages to be paid from the fund shall be limited in amount to:
(a) the amount determined by the Commission, or
(b) the limits set forth herein. The Court shall not award attorneys' fees or court costs to be paid by the fund.
E. Suspension
1. The Commission shall suspend the license or certificate of each licensee, installer, retailer or manufacturer until such time as same reimburses award amounts paid on its behalf to the fund plus interest at a rate to be determined by the Commission but not to exceed ten percent (10%) per annum.
2. The Commission may permanently suspend the license or certificate of the respondent upon failure to pay an order of the Commission or court.
3. The Commission may move the Circuit Court to suspend the license or certificate of the respondent during pendency of an appeal from a Commission order.
F. Establishment of Training and Educational Programs
On January 1 of any year, if the fund established in this chapter exceeds four hundred thousand dollars ($400,000.00), the Arkansas Manufactured Home Commission may approve the use of up to five percent (5%) of the fund balance above that amount for training and education programs; including but not limited to: workshops, instruction manuals, audio and video tapes, and presentations.

Credits

Amended Oct. 20, 2013; Aug. 19, 2016; Jan. 29, 2017; Aug. 17, 2020.
Current with amendments received through May 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 235.02.1-501, AR ADC 235.02.1-501
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