Manufactured Housing Practice Test

How is the mobile home recovery fund maintained?

1. By charging $5,000 bonds to dealers

2. By a fee for each mobile home sale reported

3. By a one-time fee from issued or renewed dealer licenses

4. All of the above

The correct answer is: All of the above

The mobile home recovery fund is maintained through multiple funding mechanisms, acknowledging that different sources contribute to its sustainability. By charging $5,000 bonds to dealers, a significant upfront cost is established that serves as a form of security and assurance for consumers regarding the business practices of dealers. This bond can be claimed against should the dealer engage in fraudulent activities or fail to meet their obligations. Additionally, a fee for each mobile home sale reported provides a continuous stream of revenue for the fund. This ties the fund’s maintenance to the activity in the manufactured housing market, ensuring that as business increases, the fund is also replenished. Lastly, the requirement of a one-time fee from the issuance or renewal of dealer licenses contributes a more stable, periodic influx of funds crucial for supporting the operational aspects of the recovery fund. Together, these methods create a comprehensive funding structure, allowing the mobile home recovery fund to adequately support consumers in cases of dealer misconduct or financial failure. This multifaceted approach helps ensure that the fund remains robust and capable of fulfilling its purpose.