Written By: Kayo Manson-Tompkins
In California, the procedure to permanently affix a manufactured home is very specific; however there are misconceptions of when that occurs. Typically there is a belief that if the manufactured home is on a concrete foundation, or the taxes for the manufactured home are paid with the real property, it is permanently affixed. This is not true. Another misconception is that if you add the description of the manufactured home somewhere on the Deed of Trust or attach a manufactured home rider or some other type of document to the Deed of Trust signed by the borrower that he/she/they intend for the manufactured home to be permanently affixed, that it is permanently affixed. This also is not true.
Another problem existed at the inception of the Department of Housing and Community Development’s (“DHCD” or “HCD”) takeover of the titling of manufactured homes in 1988 from the Department of Motor Vehicles (“DMV”). Paperwork was submitted to HCD so that they reflected the manufactured home being on a permanent foundation, however there was nothing of record with the county recorder; or a document was recorded with the county recorder but not filed with HCD, therefore the manufactured home had not been completely de-titled.
Pursuant to Health & Safety Code Section 18551(a), the proper procedure to affix the manufactured home is for the owner to obtain a building permit to install the unit on a permanent foundation. The owner must provide the building department in the county where the manufactured home is located, with proof that he/she/they are the owner not only of the manufactured home but also the land that they intend to install the manufactured home on. There must be evidence that the manufactured home is either free of liens or that the lien holder consents to the installation. Proper approved plans according to HCD regulations or plans signed by a California licensed architect or engineer must be provided to the building department, who will then prepare a 433(A) and (B), after the appropriate fees are paid. The 433(B) is given to the county assessor so that they can change the manufactured home from being taxed as personal property to being taxed as part of the real property. The 433(A) is sent for recording by the building department, then a conformed copy, the certificate of occupancy, fees, all titles, certificates and plates or decals are sent to HCD, who then changes the title to reflect that the manufactured home is on a permanent foundation.
The 433(A) is entitled Notice of Manufactured Home (Mobile Home) or Commercial Coach, Installation on a Foundation System. When recorded with the county recorder and properly reflected on HCD’s title as on a permanent foundation, it effectively merges the manufactured home with the real property so that a lender may proceed with a foreclosure as they normally would do if it was a “stick built” home on real property.