The Manufactured Home Recovery Fund (MHRF) (PDF), provided by Housing and Community Development, is available to reimburse actual and direct losses up to $75,000 for any person who has sold or purchased a manufactured home/mobilehome for personal or family residential use or investment purposes, and who has suffered a loss due to:
- Failure to honor warranties or guarantees;
- Fraud or willful misrepresentation related to any financial provision;
- Fraud or willful misrepresentation of the kind or quality of the product sold or purchased;
- Conversion (the unlawful appropriation of the property of another);
- A willful violation of any other provision of the Health and Safety Code, Part 2 – Mobilehomes-Manufactured Housing Act of 1980, including the provisions regulating escrow accounts;
- A violation of the Civil Code, Title 1.7, Chapter 3, beginning with section 1797 – Mobilehome Warranties (for new manufactured homes).
The MHRF is considered a last resort recovery for consumers. It is only available after applicants have obtained a final court judgment against the violator, or after being harmed by a Department licensed salesperson, dealer, manufacturer, or an individual or entity who is, or has been, the subject of a bankruptcy proceeding or is or has been otherwise deemed judgment proof. Download additional information on collecting your judgment in Small Claims Court and Restitution Orders (PDF).
The Occupational Licensing Program provides information and claim forms (PDF) with instructions (PDF) to the public regarding the MHRF. Each claim is reviewed/investigated by the program staff. Approved claims are forwarded to the Department’s Legal Affairs Division for final approval. Approved claims are then submitted to the State Controller’s Office for payment.