TMHA Met with Resistance at TDLR IHB Meeting: Watch our Testimony

Watch the video below to see TMHA testify at the Dec. 1 TDLR IHB Code Council Meeting in support of improved modular housing regulation

TMHA SPEAKER TIMESTAMPS
   0:28.05  |  DJ Pendleton, TMHA Executive Director
     57:1.2  |  Wes Hayes, member, Advantage Housing Corp.
1:12:52.5  |  Martin Montgomery, member, RCS Enterprises
1:15:35.8  |  Rhonda McAllen, member, American Homestar
1:20:47.7  |  Keith Alexander, TMHA Board, Palm Harbor Homes

BACKGROUND: Modular Housing, TMHA & TDLR
Modular housing is a smaller yet important component of our industry and association. While the numbers of modular homes sold remains relatively small when compared to manufactured housing, it is a viable housing option for hundreds of Texans.

Legislatively, TMHA works to advance modular interest, preserve modular rights such as the ability to place homes within city limits, and find additional avenues to see the sale of modular homes continue to grow as a consumer housing option.On a regulatory front, TMHA is here to ensure a fair, balanced and equitable regulatory environment. This role spans many state agencies, from the Texas Department of Housing and Community Affairs (TDHCA) to the Texas Finance Commission to the General Land Office. 

The regulatory state entity for modular housing is the Texas Department of Licensing and Regulation (TDLR). Specifically, the modular industry in Texas is regulated by the Industrialized Housing Division of TDLR with an 11 member, Governor-appointed Advisory Council and the TDLR Commission.

TMHA EFFORTS, ISSUES
For over one and a half years, TMHA has worked to address specific industry issues related to TDLR. The list of concerns encompasses a wide range of topics, but the overall issues can be broken down as follows:
Concern over the liability timeframe a manufacturer and builder have on a modular home
The department’s current process of investigating consumer complaints, inspecting homes without the industry being present, and assigning responsibility for items the inspectors determine are “violations”
The lack of opportunity to address regulators and to discuss the complaint with the compliance division who issues the violations in tandem with the enforcement division who pushes for administrative penalty; and
Circumventing Texas Open Government legal requirements by implementing “Technical Bulletins"
2011: RECENT DEVELOPMENTS
At the April 29 Advisory Council meeting, I brought to attention several ares of concern. (watch: April 29 TDLR IHB video). I was encouraged to present areas of concern, ideas for improvements and general suggestions for the Council to consider in detail. I presented the requested detailed list of questions and suggestions for the Council to review at their August 3 meeting. (watch: August 3 TDLR IHB video)

Click to read TMHA's suggested topics for TDLR. TDLR addressed our compiled comments prior to the Dec. 1 IHB Meeting - see below.

Click to read TDLR's response to TMHA's suggested topics

The culmination of this ongoing effort occurred at the most recent Council meeting on Dec. 1.  For a third time I testified before the Council regarding the issues I had previous brought to their attention. I encourage all TMHA members with any interest in the modular housing industry to watch the archived video online of what turned into a contentious meeting.

TIMELINE
April 29:  TMHA initial testimony | video
Aug. 3:    TMHA testifies regarding submitted comments | video
Dec. 1:    TMHA testifies regarding TDLR response to our comments | video

TMHA REACTION
Unfortunately, the Council was unable to come to many definitive conclusions regarding the issues raised by TMHA at the Dec. 1 IHB Meeting. Despite previous encouragement to bring forward issues and ideas, we heard many comments at the Dec. 1 meeting that TMHA brought forward mere “hypotheticals.” The Council seemingly implied it could not make policy changes based on anything hypothetical. Fortunately, we had specifics and personal experience instantly available to present. I, along with several additional witnesses and TMHA members, had specific cases and examples from which each issue previously presented originated.  In another unfortunate turn, we were then told the Council forum was not the appropriate place to discuss specific complaint files.

At a loss as to the Council's role and proper manner in which the public and industry should address issues - since it had been made obvious neither hyoptheicals nor specifics were to be used to rationalize assertions - I asked the Council for direction yet again. The Council informed me their role was limited to recommending Administrative Rule and construction code changes to the higher TDLR Commission for approval. I was encouraged to bring forward, in future meetings, proposed rule changes for the Council to consider.

TMHA will be present in all future Council meetings with recommended rule changes. The outcome of these recommended changes will determine if improvements to the current modular housing regulatory environment can be made, as well as shape our future legislative goals related to modular housing.

DJ'S SUMMARY
In all honesty, my experience at the Dec.1 IHB Council Meeting was contentious, confusing and disappointing. I believe an eventual breakthrough was made with many Council members when additional industry witnesses shared specific stories. Of particular note are the instances of inspections occurring without industry presence, and “violation” responsibility placed on the builder and/or manufacturer without an opportunity to defend oneself. Other egregious examples presented included instances of subjective opinions utilized as the basis for industry “violations.” In compelling testimony one industry and TMHA member shared with the Council an incident in which a cited “violation” was due to the state inspector’s subjective declaration that a house had dropped in transport based on a consumer-supplied photo of a cracked toilet lid.

Please see the top of this message for the key time stamps within the meeting footage. I again encourage TMHA members to spend a few moments watching the various excerpts of this meeting.

Additionally, I’d like to hear our members' input and experiences with TDLR. E-mail me at dpendleton@texasmha.com with your comments, issues or concerns.

I would also like to thank those members who attended and those who testified alongside me at the Dec. 1 meeting. Having more than 85 percent of the modular home builders in the state represented, along with compelling examples from those adversely impacted by the current flawed system projected a powerful, unified message to the Council members.

Despite having worked on these efforts for many years, our advocacy efforts for the modular housing industry will continue. In fact, some might say we have really just begun.

Sincerely,
DJ Pendleton
Executive Director
Texas Manufactured Housing Association