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Title 42, The Public Health and WelfareRelease 119-110

§5412 Noncompliance with Standards or Defective Nature of Manufactured Home; Administrative or Judicial Determination; Repurchase by Manufacturer or Repair by Distributor or Retailer; Reimbursement of Expenses, Etc., by Manufacturer; Injunctive Relief Against Manufacturer for Failure to Comply; Jurisdiction and Venue; Damages; Period of Limitation

Title 42 › CHAPTER 70 — MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS › § 5412

Last updated Sep 22, 2026|Official source

Summary

If a government official or a court finds a manufactured home sold by a maker to a dealer or retailer doesn't meet federal safety or construction rules or has a dangerous defect, the maker must act right away. The maker must either buy the home back from the dealer or retailer for the price they paid, plus shipping costs and at least 1 percent per month interest from the day the dealer got notice by certified mail until the buyback; or the maker must supply and pay to install the parts needed to make the home meet the rules, and pay the dealer for the installation plus at least 1 percent per month interest from the day the dealer got notice by certified mail until the home is fixed. The amount of those payments is set by agreement or, if there is no agreement, by a court. If the maker refuses to follow these rules, the dealer or retailer can sue in a federal district court where the maker lives, does business, or has an agent to force the maker to comply. The dealer can also recover any damages, court costs, and reasonable lawyer fees. Any lawsuit must start within three years after the problem was discovered.

Full Legal Text

Title 42, §5412

The Public Health and Welfare, Source: USLM XML via OLRC

(a)If the Secretary or a court of appropriate jurisdiction determines that any manufactured home does not conform to applicable Federal manufactured home construction and safety standards, or that it contains a defect which constitutes an imminent safety hazard, after the sale of such manufactured home by a manufacturer to a distributor or a retailer and prior to the sale of such manufactured home by such distributor or retailer to a purchaser—
(1)the manufacturer shall immediately repurchase such manufactured home from such distributor or retailer at the price paid by such distributor or retailer, plus all transportation charges involved and a reasonable reimbursement of not less than 1 per centum per month of such price paid prorated from the date of receipt by certified mail of notice of such nonconformance to the date of repurchase by the manufacturer; or
(2)the manufacturer, at his own expense, shall immediately furnish the purchasing distributor or retailer the required conforming part or parts or equipment for installation by the distributor or retailer on or in such manufactured home, and for the installation involved the manufacturer shall reimburse such distributor or retailer for the reasonable value of such installation plus a reasonable reimbursement of not less than 1 per centum per month of the manufacturer’s or distributor’s selling price prorated from the date of receipt by certified mail of notice of such nonconformance to the date such vehicle is brought into conformance with applicable Federal standards, so long as the distributor or retailer proceeds with reasonable diligence with the installation after the required part or equipment is received.
The value of such reasonable reimbursements as specified in paragraphs (1) and (2) of this subsection shall be fixed by mutual agreement of the parties, or, failing such agreement, by the court pursuant to the provisions of subsection (b).
(b)If any manufacturer fails to comply with the requirements of subsection (a), then the distributor or retailer, as the case may be, to whom such manufactured home has been sold may bring an action seeking a court injunction compelling compliance with such requirements on the part of such manufacturer. Such action may be brought in any district court in the United States in the district in which such manufacturer resides, or is found, or has an agent, without regard to the amount in controversy, and the person bringing the action shall also be entitled to recover any damage sustained by him, as well as all court costs plus reasonable attorneys’ fees. Any action brought pursuant to this section shall be forever barred unless commenced within three years after the cause of action shall have accrued.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2000—Subsecs. (a), (b). Pub. L. 106–569 substituted “retailer” for “dealer” wherever appearing. 1980—Subsecs. (a), (b). Pub. L. 96–399 substituted “manufactured home” for “mobile home” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 2000 AmendmentAmendment by Pub. L. 106–569 effective Dec. 27, 2000, except that amendment has no effect on any order or interpretative bulletin issued under this chapter and published as a proposed rule pursuant to 5 U.S.C. 553 on or before Dec. 27, 2000, see section 612 of Pub. L. 106–569, set out as a note under section 5401 of this title.

Effective Date

Section effective upon the expiration of 180 days following Aug. 22, 1974, see section 627 of Pub. L. 93–383, set out as a note under section 5401 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 5412

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110