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Panel advances bill to clear title issues for manufactured homes lacking HUD tags
Summary
The committee voted 21-0 to pass House Bill 785, which directs the Department of Revenue to provide a form and process allowing owners to register manufactured homes as real property when title or HUD tag records are missing, aimed at improving financing and sales options for affected homeowners.
The House Taxation Committee voted unanimously, 21-0, to advance House Bill 785, a bill from Representative Terry Falk designed to help owners of manufactured homes that lack titles or HUD tags to establish those units as real property for financing and sale.
Representative Falk described how manufactured homes that have been placed on permanent foundations can be detitled and treated as real property, which can allow buyers to use FHA, VA, RD and conventional loans with lower down payments. He told the committee that when tags or title information is lost—sometimes during agency transfers—owners can be left unable to obtain financing or to sell at market value.
John Sinrude of the Montana Landlord Association and Stewart Doggett of the Montana Land Title Association testified in support, describing situations in which records were lost and title companies and lenders need a clear recorded statement from DOR. Sinrude urged the committee to “do pass,” saying the bill would allow homeowners to “go through and get an official document from Department of Revenue… and now the banks and title will be able to… consider it real property.”
Representative Falk told the committee the bill references an existing detitling process that formalized this option in October 2005 and that the measure seeks to fill gaps where the tags or title records are missing.
Ending: The unanimous committee vote advances HB 785; proponents said the change will ease financing and sales for owners of manufactured homes with missing records.
