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H0463...............................................by REVENUE AND TAXATION
MANUFACTURED HOMES - Amends existing law to provide that manufactured homes
on leased property may constitute real property; and to provide for
sanctions for the unlawful removal of a manufactured home.
01/21 House intro - 1st rdg - to printing
01/22 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 463
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO MANUFACTURED HOMES; AMENDING SECTION 63-304, IDAHO CODE, TO PRO-
3 VIDE THAT MANUFACTURED HOMES MAY CONSTITUTE REAL PROPERTY IF THE HOME IS
4 PERMANENTLY AFFIXED TO A FOUNDATION ON LAND WHICH IS BEING LEASED BY THE
5 OWNER OR PURCHASER OF THE HOME AND SUBJECT TO CERTAIN FINANCING RESTRIC-
6 TIONS; AND AMENDING SECTION 63-305, IDAHO CODE, TO PROVIDE FOR THE PAYMENT
7 OF COSTS, FEES AND EXPENSES IF A MANUFACTURED HOME IS PHYSICALLY REMOVED
8 UNLAWFULLY AND TO PROVIDE THAT A JUDGMENT MAY BE RECORDED AS A LIEN UPON
9 SUCH HOME.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 63-304, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 63-304. MANUFACTURED HOMES TO CONSTITUTE REAL PROPERTY. (1) A manufac-
14 tured home may constitute real property if the running gear is removed and:
15 (a) If the manufactured home becomes permanently affixed to a foundation:
16 (i) Oon land which is owned or being purchased by the owner or pur-
17 chaser of said manufactured home; or
18 (ii) On land which is being leased by the owner or purchaser of the
19 manufactured home if such home is being financed in accordance with
20 the guidelines of the federal home loan mortgage corporation, the
21 federal national mortgage association, the United States department
22 of agriculture or any other entity or agency that requires, as part
23 of its financing program, similar restrictions on ownership and
24 actions affecting title and possession; and
25 (b) If the owner or purchaser of a manufactured home records with the
26 county recorder in the county in which the manufactured home will be situ-
27 ated a statement of intent to declare the manufactured home as real prop-
28 erty.
29 (2) The exercise of said option shall require all county assessors to
30 treat those manufactured homes whose owners or purchasers have exercised said
31 option as any other site-built residence and shall permit lending institutions
32 to treat said manufactured homes as real property or as any other residence.
33 (3) The form of the declaration shall be prescribed by the state tax com-
34 mission. Any form used shall have attached to it the certificate of origin or
35 the original title to the manufactured home to allow a reversal of the decla-
36 ration as provided in section 63-305, Idaho Code.
37 SECTION 2. That Section 63-305, Idaho Code, be, and the same is hereby
38 amended to read as follows:
39 63-305. REVERSAL OF DECLARATION WHICH TREATS A MANUFACTURED HOME AS REAL
40 PROPERTY. (1) Once a manufactured home has been converted to real property
41 under the provisions of section 63-304, Idaho Code, it shall be deemed a fix-
2
1 ture and an improvement to the real property to which it is affixed. Physical
2 removal shall be prohibited without the consent of all persons or entities
3 who, at the time of removal have an interest in the real property or title to
4 any estate in the real property to which the manufactured home has been
5 affixed. The homeowner shall obtain a title report from a title insurance
6 company which shall establish the identity of those individuals or entities
7 whose consent must be obtained. Consent to removal of the manufactured home
8 shall not be required from the owners of rights-of-way, easements or owners of
9 subsurface rights.
10 (2) Physical removal shall include, without limitation, the separation of
11 the manufactured home from the foundation system, except for the temporary
12 purposes of repair or improvement thereto.
13 (3) At least thirty (30) days before the manufactured home is to be
14 removed, the homeowner shall give written notice of the intended removal to
15 the county assessor in the county in which the real property is located. The
16 county assessor shall require written evidence that the necessary consents
17 have been obtained from those persons or entities identified in the title
18 report as required in the provisions of subsection (1) of this section. In
19 addition, removal shall be prohibited until the county tax collector has given
20 written approval for the removal of the manufactured home by certifying that
21 all property taxes, due and payable, have been paid.
22 (4) The homeowner shall, within five (5) days of removal, make applica-
23 tion for the issuance of a certificate of title for the manufactured home.
24 Prior to the issuance of a certificate of title, the declaration of reversal
25 shall be recorded. Immediately upon issuance of a certificate of title, the
26 manufactured home shall again become personal property for the purpose of
27 financing and for the purpose of taxation shall be assessed pursuant to sec-
28 tion 63-302, Idaho Code.
29 (5) The state tax commission shall prescribe the forms to be used by the
30 county assessor to reverse the option exercised under the provisions of sec-
31 tion 63-304, Idaho Code, which created the real property designation.
32 (6) A homeowner who physically removes a manufactured home in violation
33 of the provisions of this section shall be liable for all legal costs and
34 fees, together with actual expenses incurred to restore the real property to
35 its former condition. Any judgment obtained pursuant to this section may be
36 recorded as a lien upon the manufactured home removed from the property.
STATEMENT OF PURPOSE
RS 11705
Current law allows a manufactured home on a permanent foundation
to be considered real property if the land is owned or being
purchased by the owner of the home. The purpose of this
legislation is to allow similar treatment for a manufactured home
on a permanent foundation on leased land. This change will
provide another housing option for lower and more moderate
residential homes.
FISCAL IMPACT
No fiscal impact for state or local governments.
CONTACT:
Name: Rep. Leon Smith,
332-1000
Jack Lyman
Id Mfg. Housing Assoc.
Phone: 342-0031
STATEMENT OF PURPOSE/FISCAL NOTE H463