Bill
SB 398
Louisiana SB 398 creates a state-wide regulatory framework for factory-built housing, licenses providers, sets warranties and installation standards, and centralizes enforcement.
Date: 2026; Bill: SB 398; Sponsor: Senator Foil
Purpose
- Establishes a comprehensive regulatory framework for manufactured and modular housing in Louisiana, creating a Uniform Standards Code and a new statutory structure to oversee factory-built housing, installation, warranties, and related activities.
- Creates a centralized Residential Subcommittee within the Louisiana State Licensing Board of Contractors to license, regulate, inspect, and enforce standards for manufacturers, contractors, developers, salespersons, transporters, installers, and related entities.
Key Provisions and Changes
1) Establishment and Structure
- Creates the Residential Contractors Subcommittee within the licensing board to regulate factory-built housing activities.
- Organizes into Parts II–IV of Chapter 24 of Title 37 (Uniform Standards Code for Manufactured and Factory-Built Housing) and adds Part II-A and Part III–IV with detailed definitions, duties, and procedures.
2) Definitions and Scope
- Defines terms: factory-built housing, manufactured housing, modular housing, contractor, developer, salesman, transporter, installer, seal/label, and related concepts.
- Distinguishes between manufactured homes, modular homes, and other factory-built housing types, aligning with federal (HUD) and state standards.
3) Licensing and Regulation
- Requires licenses for manufacturers, factory-built housing residential contractors, factory-built housing developers, and salesmen.
- Licenses issued by the Residential Subcommittee; specifics on qualifications, age (18+), background checks (criminal history), and bond/financial prerequisites.
- Provides for license transfers, branch offices, and separate licenses for multiple places of business.
- Establishes renewal requirements, staggered renewal rules, penalties for non-renewal, and continuing education obligations.
- Sets license fees (e.g., Manufacturer $250; Renewal $250; Retailer $150; Contractor renewal $150; Salesman $50; etc.) and allows the subcommittee to adjust by rule.
- Requires proof of financial solvency (net worth or irrevocable letter of credit) and a mandatory pre-licensing training program and testing.
4) Warranties and Manufacturer-Contractor Relationships (Part II)
- Creates mandatory warranties for new manufactured and modular homes:
- 1-year: defects due to noncompliance with building standards or workmanship.
- 2-year: defects in plumbing, electrical, heating, cooling, and ventilating systems (excluding appliances/fixtures).
- 5-year: major structural defects.
- Excludes items not part of the home (landscaping, driveways, etc.) and sets various other warranty exclusions.
- Establishes procedures for warranty notice, inspections, and repair timelines; authorizes the subcommittee to oversee and enforce warranty compliance.
- Allows transfer of warranties and insurance benefits with title but does not extend warranty duration.
- Provides exclusive remedies for warranties in this Part; arbitration allowed per law.
5) Installation Standards (Part III)
- Sets minimum installation standards for setup, anchoring, piers, foundations, and site preparation.
- Requires compliance with manufacturer installation instructions or the International Residential Code if instructions are unavailable.
- Establishes specific anchor, pier, and footing requirements (size, materials, depth, and testing standards), including flood-prone area considerations and optional higher floodplain protections.
- Requires proper inspection and testing by regulatory authorities and ensures certifications and permits, including installation permits and stickers.
- Introduces requirements for proper site preparation, grading, drainage, and avoidance of mold and other defects.
6) Fees and Funds
- Creates the Residential Subcommittee Manufactured Housing Fund as a dedicated state treasury fund to support regulatory activities.
- Fee collection and deposit provisions are specified, with funds used to implement and enforce the manufactured housing provisions.
7) Enforcement and Procedures
- Grants the Subcommittee authority to issue cease-and-desist orders, subpoena records, conduct hearings, and impose penalties for violations.
- Provides venue and process for civil actions and injunctions related to violations.
- Establishes penalties for violations (civil penalties up to $2,500 per violation, potentially up to $5,000 for aggravated cases; caps $1 million for related series of violations in a year).
- Establishes severability and supremacy provisions; supersedes local standards to ensure uniform state-wide standards for manufactured and modular housing.
Impact and Who Is Affected
Timelines and Effective Date
Notes
In summary, SB 398 creates a comprehensive state-regulated framework for manufactured and modular housing in Louisiana, instituting new licensing, warranties, installation standards, and enforcement mechanisms intended to standardize practice, protect consumers, and centralize regulatory authority.
Compiled from official sources — confirm details with the bill’s official record.
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