Manufactured Housing Practice Test

Manufactured/mobile homes intended to be placed on a permanent foundation are:

1. Subject to local property tax and DMV registration

2. Subject to local property tax and HCD registration

3. Registered by the county assessor

4. Subject to local property tax but not HCD registration

The correct answer is: Subject to local property tax but not HCD registration

Manufactured or mobile homes that are placed on a permanent foundation become classified as real property. This classification typically means they are subject to local property tax, similar to traditional site-built homes. Local property tax is assessed based on the value of the property, and the homeowner pays taxes to the local governing authority. However, once these homes are placed on a permanent foundation, they are no longer considered vehicles, which means they do not require registration with the Department of Motor Vehicles (DMV) or the Department of Housing and Community Development (HCD) in the same way that mobile homes still classified as personal property would. Instead, these homes are treated as part of the real property and do not need HCD registration, as they are not mobile in the conventional sense once affixed to a foundation. This understanding is critical for individuals involved in the financing or taxation of manufactured homes, as it impacts how properties are valued and taxed, as well as the legal requirements that homeowners must follow. This distinction is why the chosen answer accurately reflects the conditions associated with manufactured homes on permanent foundations.