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RCED-92-91R 1 (1992-01-31)

handle is hein.gao/gaobacjzb0001 and id is 1 raw text is: GAO IUnited States General Accounting Office Washington, D.C. 20548 146065 Resources, Community, and Economic Development Divsion RESTRICTED..Not to be released outside the General Accounting Office unless specifically -246751 approved by the Office of Congressional B- 24 6 5 1Relations. January 31, 1992 REAS ED The Honorable Bob Wise, Chairman Subcommittee on Government Information, Justice, and Agriculture Committee on Government Operations House of Representatives The Honorable Steven Schiff House of Representatives Your February 12, 1991, letter asked us to review the Farmers Home Administration's (FmHA) manufactured housing program operated by one of its approved dealer-contractors in New Mexico. Specifically, some homeowners charged that the manufactured units sold and erected by Day's Mobile Homes had numerous defects and that Day's had not repaired these defects as required by the warranty agreement. As agreed with your offices, this letter summarizes information on (1) corrective actions taken to resolve homeowners' complaints against Day's Mobile Homes and (2) FmHA's efforts to remove Day's Mobile Homes from future participation in government programs. Day's Mobile Homes was approved as a dealer-contractor by FmHA's New Mexico State Office on August 18, 1987, to sell and erect manufactured homes in New Mexico. Day's was one of three dealer-contractors approved to operate in New Mexico. FmHA county supervisors reviewed and inspected the site development designs of Day's Mobile Homes as part of the loan approval process. Furthermore, the county supervisors inspected the manufactured homes after they were installed on-site to ensure compliance with approved design plans as part of the closing process. FmHA processed, approved, and financed loan applications for 41 low-income individuals to purchase homes from Day's between August 1987 and September 1988. However, in September 1988, the president of Day's died and the company went out of business. GAO/RCED-92-91R, Manufactured Housing In New Mexico

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