South Carolina Manufactured Housing Board

In 2024, staff for the Manufactured Housing Board performed a review the standing compliance inspection process for actively licensed Manufactured Home Retail Dealers authorized by S.C. Regulation 79-38, and determined that updates should be made to ensure the federal and state compliance of licensed retail dealers in South Carolina.

From 2024-2026, LLR's Office of Investigations and Enforcement staff conducted the compliance inspections as announced visits to ensure that retail dealers could familiarize themselves with the new inspection process and expectations. Following this phased implementation period, the Board voted at their meeting on March 3, 2026 to end announced retail dealer compliance inspections effective June 30, 2026.

Moving forward, compliance inspections of licensed Manufactured Home Retail Dealers will be unannounced, and will be performed at a minimum of every two years for each licensed Manufactured Home Retail Dealer located within South Carolina.

Retail dealers can use the resources provided below to familiarize themselves with the inspection process and prepare for LLR's visit.

Per S.C. Regulation 79-38 below, an inspector may enter any licensee's location during normal working hours to inspect new manufactured homes for compliance with the Uniform Standards Code for Manufactured Housing and Chapter 79 of S.C. Regulations. Inspections will consist of the following:

• Facility Check
• Document Review
• Home Inspection
• Follow-up

The authorized official of record must be present for the inspection. S.C. Code Ann. §40-29-327 states, “Each licensed manufactured housing retail dealer location must have one authorized official representing the dealership.”

79–38. Inspections.

1. An inspector may enter, at any reasonable time, any licensee's premises where manufactured homes are manufactured, sold, or offered for sale, and inspect any documents and records required to be maintained under the Act and Regulations. The Department may determine the times for periodic monitoring of retail dealer locations to ascertain compliance with the Act.
2. An inspector may enter any licensee's location during normal working hours to inspect new manufactured homes for compliance with the Act and Regulations.
3. A manufactured home found by an inspector to contain a violation(s) shall be conspicuously tagged with a ‘‘Red Tag'', which specifies that the sale of the home is prohibited. Upon notification from the licensee that the violation(s) in the manufactured home has been corrected and upon inspection or verification of appropriate corrections, the Department shall authorize the removal of the ‘‘Red Tag''.

Facility Check

The LLR inspector will ensure that retail dealers are complying with state regulatory requirements for record storage, business signage and posting of the license certificate, and verify that all staff performing functions regulated by the Manufactured Housing Board hold the proper license.

Document Review

Retail dealers located in South Carolina must be prepared to provide the following documentation upon request.

• At least one completed file for a new home sold within the last six months, or for the most recent sale if one was not performed within that time. The inspector and authorized official will review the file for required items such as the Purchase Agreement, Installation Certification/Disclosure, applicable Alternative Construction Letters, etc. Retail dealers are expected to be familiar with the federal and state requirements for documentation related to manufactured home sales.
• If available, at least one completed file for a used home manufactured between September 1, 1971 and June 15, 1976, to determine the status of the title and that all information on the data plate is accurate.
• General records for any recent non-conformances and a consumer manual.

Home Inspection

The LLR inspector will select a minimum of five percent of the homes for display on the retail dealer lot, or a minimum of three, whichever is greater, and note the condition of items including, but not limited to, the following.

• Data Plate
• Transportation damage
• Condition of floors, walls, bottom board, etc.
• HUD labels
• Temporary blocking

During this phase, the authorized official will be expected to describe the retail dealer's inspection process for incoming homes to ensure compliance with S.C. Regulation 79-14, and the inspector will verify the proper installation of the display homes selected.

If significant non-conformances, such as Imminent Safety Hazards or Serious Defects, are noted during the inspection of display homes, the inspector has the discretion to schedule an inspection of all homes on the lot to take place within five business days. Any non-conforming homes will be marked with a Red Tag, only to be removed by LLR staff. See below for more information about Red Tags.

Follow-up

Federal regulations require that obvious non-conformances with federal standards found by inspectors will be reported in writing to the Manufactured Housing Board, and to retail dealers, who will be informed in writing that the retail dealer cannot sell a home in which a non-conformance with federal standards exists, when the retail dealer is aware of the same.

Following the inspection, the LLR investigator will prepare a report noting any non-conformances and the required action to bring the retail dealer back into compliance with federal and state requirements. Non-conformances of a minor nature may be verified as compliant at the next inspection; however, serious non-conformances may result in disciplinary action against the license. Such serious non-conformances may include failing to provide a valid Purchase Agreement to a home buyer or failing to properly inspect and report Imminent Safety Hazards or Serious Defects to a home on the lot.

If a Red Tag is issued to a home on the retail dealer lot by the inspector, he/she will furnish the retail dealer with a written report of all deficiencies to be corrected within five business days of the inspection. The Board will keep records of the serial number and label number of units which have been found on the retail dealer lots to contain non-conformances with federal standards. Retail dealers who fail to address the deficiencies in the report may face disciplinary action by the Manufactured Housing Board.

Appeals

A retail dealer who disputes the findings in the LLR inspector's report must submit a written request for a hearing before the Manufactured Housing Board within 10 business days of receipt of such report. The report may be submitted to contact.mh@llr.sc.gov.

At the next scheduled meeting of the Manufactured Housing Board, a hearing will take place where the LLR inspector and retail dealer will each have an opportunity to present their case to the Board for consideration. Upon conclusion of the hearing, the Board will produce a written order outlining its ruling.

Retail Dealer Inspection Report

This form will be completed by the LLR inspector during the Facility Check and Document Review, and retail dealers can use the content to prepare.

Survey of Homes

This form will be completed by the LLR inspector during the Home Inspection. Any non-conformances found during the course of the home inspection will be categorized as one of the following.

• Non-compliance: a failure of a manufactured home to comply with a federal manufactured home construction or safety standard.
• Defect: a failure to comply with an applicable federal manufactured safety and construction standard which renders the manufactured home, or any part or component, no longer fit for the ordinary use for which it was intended, but does not result in an unreasonable risk of injury or death to occupants of the affected home.
• Serious Defect: any failure to comply with an applicable federal manufactured home construction and safety standard which renders the manufactured home, or any part thereof, not fit for the ordinary use for which it was intended, and which results in an unreasonable risk of injury or death to occupants of the affected manufactured home.
• Imminent Safety Hazard: a hazard that presents an imminent and unreasonable risk of death or severe personal injury which may or may not be related to failure to comply with an applicable federal manufactured home construction or safety standard.