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ACT No. 112
Regular Session, 2012
HOUSE BILL NO. 1029 (Substitute for House Bill No. 798 by Representative Ponti)
BY REPRESENTATIVE PONTI
AN ACT1
To amend and reenact R.S. 51:911.23, to enact Part XIV-A of Chapter 2 of Title 51 of the2
Louisiana Revised Statutes of 1950, to be comprised of R.S. 51:912.1 through3
912.10, and to repeal R.S. 51:911.25, relative to manufactured housing; to enact the4
New Manufactured and Modular Home Warranty Act; to provide for the purpose of5
the act; to provide for definitions; to provide for warranties for new manufactured6
and modular housing; to provide for exclusions to the warranties; to require an owner7
to provide notice of defects; to require notice of the warranties to be given to the8
owner; to provide for a peremption period for warranties; to allow the use of9
insurance to meet the warranty requirements; to provide for transfer of warranties10
and insurance; to establish a cause of action for actual damages due to violations; to11
authorize attorney fees and court costs; to provide for arbitration; to provide for12
exclusiveness; to repeal existing warranty provisions; and to provide for related13
matters.14
Be it enacted by the Legislature of Louisiana:15
Section 1. R.S. 51:911.23 is hereby amended and reenacted and Part XIV-A of16
Chapter 2 of Title 51 of the Louisiana Revised Statutes of 1950, comprised of R.S. 51:912.117
through 912.10, is hereby enacted to read as follows: 18
§911.23. Establishment of Uniform Standards Code; code preemption19
A. All new manufactured or modular homes, as defined in R.S. 51:911.22,20
which are sold or offered for sale in this state shall be in compliance with the Code21
and the requirements of this Part.22 ENROLLEDHB NO. 1029
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B. In any redhibitory action brought against the seller of a manufactured1
home or mobile home, the standards set forth in the Code shall be considered in2
establishing and determining whether or not a defect exists.3
* * *4
PART XIV-A NEW MANUFACTURED AND MODULAR5
HOME WARRANTY ACT6
§912.1. Purpose7
The legislature finds a need to promote commerce in Louisiana by providing8
clear, concise, and mandatory warranties for the purchasers and occupants of new9
manufactured and modular homes in Louisiana and by providing for the use of10
homeowners' insurance as additional protection for the public against defects in the11
construction of new manufactured and modular homes. This need can be met by12
providing a warranty for a new manufactured or modular home purchaser defining13
the responsibility of the builders to that purchaser and subsequent purchasers during14
the warranty periods provided herein. The warranty, which is mandatory in most15
cases, shall promote uniformity of defined building standards. Additionally, all16
provisions of this Part shall apply to any defect, although there is no building17
standard directly regulating the defective workmanship or materials.18
§912.2. Short title 19
This Part shall be known and may be cited as the "New Manufactured and20
Modular Home Warranty Act". 21
§912.3. Definitions22
For purposes of this Part, the following words, phrases, and terms shall be23
defined and construed as follows:24
(1) "Builder" means a person or an entity that designs, manufactures, or25
constructs homes, including dealers, developers, manufacturers, and installers,26
whether or not the consumer purchased the underlying real estate with the home or27
the builder initially occupied the home as his residence.28
(2)(a) "Building standards" for manufactured housing means the National29
Manufactured Home Construction and Safety Standards Act of 1974, 42 U.S.C. 540130 ENROLLEDHB NO. 1029
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et seq., as amended, and federal regulations promulgated pursuant thereto, along with1
any construction or installation-related standards adopted by the Louisiana2
Manufactured Housing Commission, together with any additional performance3
standards, if any, which the builder may undertake to be in compliance.4
(b) "Building standards" for modular housing means the International5
Residential Code as adopted by the Louisiana State Uniform Construction Code6
Council.7
(3) "Commission" means the Louisiana Manufactured Housing Commission.8
(4) "Home" means a manufactured home or modular home as defined in this9
Section.10
(5) "Initial purchaser" means any person for whom a home is built or the first11
person to whom a home is sold upon completion of construction.12
(6) "Major structural defect" means any actual physical damage to the13
following designated load-bearing portions of a home caused by failure of the14
load-bearing portions which affects their load-bearing functions to the extent the15
home becomes unsafe, unsanitary, or is otherwise unlivable:16
(a) Foundation systems and footings.17
(b) Beams.18
(c) Girders.19
(d) Lintels.20
(e) Columns.21
(f) Walls and partitions.22
(g) Floor systems.23
(h) Roof framing systems.24
(7) "Manufactured home" or "manufactured housing" means a factory-built,25
residential dwelling unit constructed to standards and codes, as promulgated by the26
United States Department of Housing and Urban Development, under the National27
Manufactured Housing Construction and Safety Standards Act of 1974, 42 U.S.C.28
5401 et seq., as amended. Further, the terms "manufactured home" and29
"manufactured housing" may be used interchangeably and apply to structures bearing30 ENROLLEDHB NO. 1029
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the permanently affixed seal of the United States Department of Housing and Urban1
Development or to factory-built, residential dwellings that are mounted on a chassis.2
(8) "Modular home" means a factory-built, residential dwelling unit built to3
the International Residential Code as adopted by the Louisiana State Uniform4
Construction Code Council.5
(9) "Owner" means the initial purchaser of a home and any of his successors6
in title, heirs, invitees, or assigns to a home during the time the warranties provided7
under this Part are in effect.8
(10) "Warranty commencement date" means the date that legal title to a9
home is conveyed to its initial purchaser or the date the home is first occupied,10
whichever occurs first.11
§912.4. Warranties; exclusions12
A. Subject to the exclusions provided in Subsection B of this Section, every13
builder warrants the following to the owner:14
(1) One year following the warranty commencement date, the home will be15
free from any defect due to noncompliance with the building standards or due to16
other defects in materials or workmanship not regulated by building standards.17
(2) Two years following the warranty commencement date, the plumbing,18
electrical, heating, cooling, and ventilating systems exclusive of any appliance,19
fixture, and equipment will be free from any defect due to noncompliance with the20
building standards or due to other defects in materials or workmanship not regulated21
by building standards.22
(3) Five years following the warranty commencement date, the home will23
be free from major structural defects due to noncompliance with the building24
standards or due to other defects in materials or workmanship not regulated by25
building standards.26
B. Unless the parties otherwise agree in writing, the builder's warranty shall27
exclude the following items:28 ENROLLEDHB NO. 1029
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(1) Fences, landscaping, including but not limited to sodding, seeding,1
shrubs, existing and new trees, and plantings, as well as off-site improvements, all2
driveways and walkways, or any other improvement not a part of the home itself.3
(2) After the first year, the concrete floor of a basement and the concrete4
floor of an attached or unattached garage that is built separate from a foundation wall5
or other structural element of the home.6
(3) Damage to real property which is not part of the home covered by the7
warranty and which is not included in the purchase price of the home.8
(4) Any damage to the extent it is caused or made worse by any of the9
following:10
(a) Negligence, improper maintenance, neglect, or improper operation by11
anyone other than the builder or any employee, agent, or subcontractor of the builder.12
(b) Failure by anyone other than the builder or any employee, agent, or13
subcontractor of the builder to comply with the warranty requirements of14
manufacturers of appliances, equipment, or fixtures.15
(c) Failure by the owner to give written notice by registered or certified mail16
to the commission of any defect within the time set forth in this Section; however,17
the provisions of this Subparagraph shall not be construed to change either the18
warranty periods enumerated in Subsection A of this Section or the notice19
requirements provided by this Section.20
(d) Any change of the grading of the ground by anyone other than the21
builder, or any employee, agent, or subcontractor of the builder.22
(e) Any change, alteration, or addition made to the home by anyone after the23
initial occupancy by the owner, except any change, alteration, or addition performed24
by the builder or any employee, agent, or subcontractor of the builder.25
(f) Dampness, condensation, or other damage due to the failure of the owner26
to maintain adequate ventilation or drainage.27
(5) Any loss or damage which the owner has not taken timely action to28
minimize.29 ENROLLEDHB NO. 1029
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(6) Any defect in, or any defect caused by, materials or work supplied by1
anyone other than the builder or any employee, agent, or subcontractor of the builder.2
(7) Normal wear and tear or normal deterioration.3
(8) Loss or damage which does not constitute a defect in the construction of4
the home by the builder or any employee, agent, or subcontractor of the builder.5
(9) Loss or damage resulting from war, accident, riot and civil commotion,6
water escape, falling objects, aircraft, vehicles, acts of God, lightning, windstorm,7
hail, flood, mudslide, earthquake, volcanic eruption, wind-driven water, and changes8
in the level of the underground water table which are not reasonably foreseeable.9
(10) Any damage caused by soil movement which is covered by other10
insurance.11
(11) Insect damage.12
(12) Any loss or damage which arises while the home is being used primarily13
for a nonresidential purpose.14
(13) Any condition which does not result in actual physical damage to the15
home.16
(14) Bodily injury or damage to personal property.17
(15) Any cost of shelter, transportation, food, moving, storage, or other18
incidental expense related to relocation during repair.19
(16) Any defect not reported in writing by registered or certified mail to the20
commission or insurance company, as appropriate, prior to the expiration of the21
period specified in Subsection A of this Section for such defect plus thirty days.22
(17) Consequential damages.23
(18) Any loss or damage to a home caused by soil conditions or soil24
movement if the home is constructed on land owned by the initial purchaser and the25
builder obtains a written waiver from the initial purchaser for any loss or damage26
caused by soil conditions or soil movement.27
(19) Mold and mold damage.28
C. The provisions of Subsection A of this Section establish minimum29
required warranties and shall not be waived by the owner or reduced by the builder30 ENROLLEDHB NO. 1029
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provided the home is a single- or multiple-family dwelling to be occupied by an1
owner as his home.2
§912.5. Required notice3
A. Before undertaking any repair himself or instituting any action for breach4
of warranty, the owner shall give the commission written notice, by registered or5
certified mail, within one year after knowledge of the defect, advising the6
commission of all defects. The commission shall then have the home inspected and7
a determination made on all defects listed by the owner. Thereafter, the commission8
shall give the appropriate builder a reasonable opportunity to comply with the9
provisions of this Part. Once the repairs are made, the commission shall have the10
home reinspected to determine if the repairs have been made in compliance with the11
building standards.12
B. The dealer or developer licensee shall give the owner written notice of the13
requirements of this Part at the time of the closing between the dealer or developer14
and the owner, or if there is no such closing, at the time of the execution of the15
purchase agreement between the dealer or developer and the owner. The16
commission shall adopt and promulgate rules and regulations in accordance with the17
Administrative Procedure Act to implement the provisions of this Subsection.18
§912.6. Peremption19
Any action to enforce any warranty provided in this Part shall be subject to20
a peremptive period of thirty days after the expiration of the appropriate time period21
provided in R.S. 51:912.4.22
§912.7. Insurance 23
All or part of the builder's obligation under any warranty required in this Part24
may be insured by the builder for the benefit of the purchaser through an insurance25
company authorized to transact business in this state.26
§912.8. Transfer of warranty and insurance 27
Any warranty imposed pursuant to this Part and any insurance benefit shall28
automatically transfer without charge to a subsequent owner who acquires title to the29 ENROLLEDHB NO. 1029
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home. Any transfer of the home shall not extend the duration of any warranty or1
insurance coverage.2
§912.9. Violations; limitations3
A. If a builder violates this Part by failing to perform as required by the4
warranties provided in this Part, any affected owner shall have a cause of action5
against the builder for actual damages, including attorney fees and court costs,6
arising out of the violation. The damages with respect to a single defect shall not7
exceed the reasonable cost of repair or replacement necessary to cure the defect, and8
damages with respect to all defects in the home shall not exceed the original9
purchase price of the home. 10
B. The parties may provide for the arbitration of any claim in dispute. Any11
arbitration shall comply with and may be binding only to the extent provided in R.S.12
9:4201 et seq. 13
§912.10. Exclusiveness14
This Part provides the exclusive remedies, warranties, and peremptive15
periods as between the builders and owner relative to the construction of homes as16
defined in this Part, and no other provisions of law relative to warranties and17
redhibitory vices and defects shall apply. Nothing herein shall be construed as18
affecting or limiting any warranty of title to land or improvements.19
Section 2. R.S. 51:911.25 is hereby repealed in its entirety.20
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: