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CSSB 104(JUD): "An Act relating to manufactured homes, including manufactured homes permanently affixed to land, to the conversion of manufactured homes to real property, to the severance of manufactured homes from real property, to the titling, conveyance, and encumbrance of manufactured homes, and to manufacturers' certificates of origin for vehicles; and providing for an effective date."

00 CS FOR SENATE BILL NO. 104(JUD) 01 "An Act relating to manufactured homes, including manufactured homes permanently 02 affixed to land, to the conversion of manufactured homes to real property, to the 03 severance of manufactured homes from real property, to the titling, conveyance, and 04 encumbrance of manufactured homes, and to manufacturers' certificates of origin for 05 vehicles; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 FINDINGS AND PURPOSE. (a) The legislature finds the legal status of 10 manufactured homes affixed or to be affixed to real property in the state needs to be clarified. 11 (b) The purpose of this Act is to establish a clear statutory procedure for 12 (1) converting to real property manufactured homes that are affixed to real 13 property; and

01 (2) severing manufactured homes from real property. 02 * Sec. 2. AS 06.05.207 is amended by adding a new subsection to read: 03 (c) In this section, "real property" includes a manufactured home that has 04 become real property under AS 34.85.010. In this subsection, "manufactured home" 05 has the meaning given in AS 45.29.102. 06 * Sec. 3. AS 06.15.250 is amended by adding a new subsection to read: 07 (b) In this section, "real property" includes a manufactured home that has 08 become real property under AS 34.85.010. In this subsection, "manufactured home" 09 has the meaning given in AS 45.29.102. 10 * Sec. 4. AS 06.45.060(5)(A) is amended to read: 11 (A) loans to members shall be made in conformity with 12 regulations adopted by the commissioner, except that 13 (i) a residential real estate loan that is made to finance 14 the acquisition of a one- to four-family dwelling for the principal 15 residence of a credit union member that is secured by a first lien on the 16 dwelling may have a maturity not exceeding 30 years; 17 (ii) a loan to finance the purchase of a manufactured 18 [MOBILE] home that is secured by a first lien on the manufactured 19 [MOBILE] home, to be used as the residence of a credit union member, 20 or for the repair, alteration, or improvement of a residential dwelling 21 that is the residence of a credit union member must have a maturity not 22 to exceed 20 years unless the loan is insured or guaranteed under (iii) of 23 this subparagraph; 24 (iii) a loan secured by the insurance or guarantee of the 25 federal government, of a state government, or an agency of either may 26 be made for the maturity and under the terms and conditions specified 27 in the law under which the insurance or guarantee is provided; 28 (iv) a loan or aggregate of loans to a director or member 29 of the supervisory or credit committee of the credit union making the 30 loan that exceeds $20,000 plus pledged shares shall be approved by the 31 board of directors;

01 (v) loans to other members for which directors or 02 members of the supervisory or credit committee act as guarantor or 03 endorser shall be approved by the board of directors when the loans 04 standing alone or when added to an outstanding loan or loans of the 05 guarantor or endorser exceed $20,000; 06 (vi) the rate of interest may not exceed the greater of 15 07 percent a year or the rate specified in AS 45.45.010(b); 08 (vii) the taking, receiving, reserving, or charging of a 09 rate of interest greater than is allowed by this paragraph, when 10 knowingly done, is considered a forfeiture of the entire interest that the 11 note, bill, or other evidence of debt carries with it, or that has been 12 agreed to be paid on the note, bill, or other evidence of debt; if a greater 13 rate of interest has been paid, the person by whom it has been paid or 14 the person's legal representatives may recover back from the credit 15 union taking or receiving it the entire amount of interest paid, but the 16 action must be commenced within two years from the time the usurious 17 collection was made; 18 (viii) a borrower may repay a loan before maturity in 19 whole or in part on any business day without penalty; 20 (ix) loans shall be paid or amortized under regulations 21 adopted by the commissioner that consider the needs or conditions of 22 the borrowers, the amounts and duration of the loans, the interests of 23 the members and the credit union, and other factors established in 24 regulations adopted by the commissioner; 25 (x) the total dollar amount of real estate loans and 26 manufactured [MOBILE] home loans outstanding may not exceed 25 27 percent of the assets of the credit union without the written approval of 28 the commissioner; 29 (xi) a credit union with assets of less than $3,000,000 30 may make real estate loans with maturities in excess of 15 years only 31 with the approval of the commissioner;

01 * Sec. 5. AS 06.45.060 is amended by adding a new subsection to read: 02 (b) In this section, "manufactured home" has the meaning given in 03 AS 45.29.102. 04 * Sec. 6. AS 06.60.990(33) is amended to read: 05 (33) "residential mortgage loan" means a loan that is primarily for 06 personal, family, or household use and that is secured by a mortgage, deed of trust, or 07 other equivalent consensual security interest on a dwelling or residential real estate 08 located in the state; in this paragraph, 09 (A) "manufactured home" has the meaning given in 10 AS 45.29.102; 11 (B) "residential real estate" means real property on which a 12 dwelling is constructed or intended to be constructed, including a 13 manufactured home that has become real property under AS 34.85.010; 14 * Sec. 7. AS 09.45 is amended by adding a new section to read: 15 Article 13. General Provisions. 16 Sec. 09.45.990. Definitions. In this chapter, 17 (1) "manufactured home" has the meaning given in AS 45.29.102; 18 (2) "real property" includes a manufactured home that has become real 19 property under AS 34.85.010. 20 * Sec. 8. AS 28.05.061(a) is amended to read: 21 (a) The Department of Administration shall file, maintain, and appropriately 22 index records of 23 (1) vehicle registrations under AS 28.10.071(a) - (c); 24 (2) stolen, converted, recovered, and unclaimed vehicles under 25 AS 28.10.071(d); 26 (3) titles and documents creating and evidencing liens or 27 encumbrances under AS 28.10.381; 28 (4) abandoned vehicles under AS 28.11.030(c); [AND] 29 (5) driver's license and driving records under AS 28.15.151; 30 (6) applications under AS 28.10.262 for cancellation of a 31 manufacturer's certificate of origin for a manufactured home;

01 (7) applications under AS 28.10.263 for cancellation of a certificate 02 of title to a manufactured home; 03 (8) applications under AS 28.10.264 for confirmation of the 04 nonapplication of AS 28.10 to a manufactured home; 05 (9) applications under AS 28.10.265 for a certificate of title to a 06 severed manufactured home; 07 (10) manufacturer's certificates of origin accepted for cancellation 08 by the department under AS 28.10.262 for a manufactured home; and 09 (11) certificates of title accepted for cancellation by the 10 department under AS 28.10.263 for a manufactured home. 11 * Sec. 9. AS 28.05.061 is amended by adding new subsections to read: 12 (e) For cancelled manufacturer's certificates of origin, cancelled certificates of 13 title, or applications for confirmation filed under (a)(8), (10), or (11) of this section, 14 the department's record must state 15 (1) the name of each owner of the manufactured home; 16 (2) the date the manufacturer's certificate of origin or the certificate of 17 title was accepted for cancellation if the certificate was cancelled under (a)(10) or (11) 18 of this section; and 19 (3) the recording information for the affixation affidavit required by 20 AS 28.10.266. 21 (f) For applications for certificates of title under (a)(9) of this section, the 22 department's record must state the name of each owner of the manufactured home and 23 the recording information for the severance affidavit recorded under AS 40.17.125. 24 (g) In this section, "recording information" means the district where the 25 affidavit was recorded, and the date and serial numbers of the affidavit's recording in 26 the recording district. 27 * Sec. 10. AS 28.10.201(b) is amended to read: 28 (b) The owner of a vehicle described in AS 28.10.011 as being exempt from 29 registration and the owner of a snowmobile or off-highway vehicle may not apply for, 30 nor may the department issue, a certificate of title for the vehicle. However, the 31 department

01 (1) may issue a certificate of title to the owner of a vehicle exempt 02 from registration under AS 28.10.011(3), (6), (7), or (10) only upon application by that 03 owner; and 04 (2) except as provided in (e) of this section, shall issue a certificate of 05 title to the owner of a manufactured [MOBILE] home upon application, display of 06 evidence of ownership satisfactory to the department, and payment of a fee of $100 by 07 the owner; a certificate of title issued under this paragraph must comply with 08 AS 28.10.231. 09 * Sec. 11. AS 28.10.201 is amended by adding a new subsection to read: 10 (e) The department may not issue a certificate of title to a manufactured home 11 if an application for the manufactured home has been filed under AS 28.10.262 - 12 28.10.264. 13 * Sec. 12. AS 28.10.211(c) is amended to read: 14 (c) When an application for title refers to a new vehicle, the application must 15 be accompanied by a "manufacturer's certificate [STATEMENT] of origin" and other 16 information reasonably required by the department. 17 * Sec. 13. AS 28.10.211 is amended by adding a new subsection to read: 18 (f) The holder of a manufacturer's certificate of origin for a manufactured 19 home may deliver the certificate to any person to facilitate conveying or encumbering 20 the manufactured home, and a person who receives the manufacturer's certificate of 21 origin holds it in trust for the person delivering it. 22 * Sec. 14. AS 28.10.221 is amended by adding a new subsection to read: 23 (d) Except as provided in AS 28.10.263, the department may not suspend or 24 revoke a certificate of title to a manufactured home based on the fact that the 25 manufactured home is affixed in any manner to real property. 26 * Sec. 15. AS 28.10.261 is amended by adding a new subsection to read: 27 (c) Notwithstanding another provision of law to the contrary, a certificate of 28 title to a manufactured home issued by the department is prima facie evidence of the 29 facts appearing on it, even if the manufactured home is affixed in any manner to real 30 property. 31 * Sec. 16. AS 28.10 is amended by adding new sections to article 2 to read:

01 Sec. 28.10.262. Cancellation of manufacturer's certificate of origin for 02 manufactured home. (a) If a manufactured home is permanently affixed to real 03 property under AS 34.85.150, or if the owner intends to permanently affix the 04 manufactured home to real property under AS 34.85.150, the owner may submit to the 05 department an application requesting that the department cancel the manufacturer's 06 certificate of origin for a manufactured home and update the department's records 07 under AS 28.05.061. 08 (b) The application under (a) of this section must comply with AS 28.10.266. 09 (c) Subject to AS 28.05.041, if the department is satisfied that the application 10 filed under (a) of this section complies with (b) of this section, the department shall 11 cancel the manufacturer's certificate of origin for the manufactured home, update the 12 department's records under AS 28.05.061, and issue a written acknowledgment that 13 the department has cancelled the certificate of origin under this section. The 14 department shall deliver the written acknowledgment to the owner of the 15 manufactured home and to a person identified under AS 28.10.266(12). 16 (d) When the department has cancelled the manufacturer's certificate of origin 17 under (c) of this section, the manufactured home is not subject to this chapter. 18 Sec. 28.10.263. Cancellation of certificate of title to manufactured home. 19 (a) If a manufactured home is permanently affixed to real property under 20 AS 34.85.150, or if the owner intends to permanently affix the manufactured home to 21 real property under AS 34.85.150, the owner may submit to the department an 22 application requesting that the department cancel the certificate of title to a 23 manufactured home and update the department's records under AS 28.05.061. 24 (b) The application under (a) of this section must comply with AS 28.10.266. 25 (c) Subject to AS 28.05.041, if the department is satisfied that the application 26 filed under (a) of this section complies with (b) of this section and that there are no 27 outstanding liens or encumbrances filed against the manufactured home under 28 AS 28.10.381, the department shall cancel the certificate of title to the manufactured 29 home, update the department's records under AS 28.05.061, and issue a written 30 acknowledgment that the department has cancelled the certificate of title under this 31 section. The department shall deliver the written acknowledgment to the owner of the

01 manufactured home and to a person identified under AS 28.10.266(12). 02 (d) When the department has cancelled a certificate of title under (c) of this 03 section, the manufactured home is not subject to this chapter. 04 Sec. 28.10.264. Confirmation of nonapplication of chapter. (a) The owner 05 of a manufactured home may submit an application to the department requesting that 06 the department indicate on the department's records that the manufactured home is not 07 subject to this chapter if 08 (1) the manufactured home is permanently affixed to real property 09 under AS 34.85.150, or the owner intends to permanently affix the manufactured 10 home to real property under AS 34.85.150; and 11 (2) the manufactured home 12 (A) is not covered by a manufacturer's certificate of origin or a 13 certificate of title; 14 (B) is covered by a manufacturer's certificate of origin, but the 15 owner of the manufactured home, after diligent search and inquiry, is unable to 16 produce the certificate of origin; or 17 (C) is covered by a certificate of title, but the owner of the 18 manufactured home, after diligent search and inquiry, is unable to produce the 19 certificate of title. 20 (b) The application under (a) of this section must comply with AS 28.10.266 21 and be accompanied by a bond or cash deposit described in (c) of this section. 22 (c) The bond that accompanies the application under (b) of this section must 23 be in the form prescribed by the department and executed by the applicant. The 24 amount of the bond or cash deposit that accompanies the application under (b) of this 25 section must be equal to one and one-half times the value of the manufactured home as 26 determined by the department and must be conditioned to indemnify former owners, 27 secured parties, and subsequent purchasers of the manufactured home and their 28 successors against loss resulting from a defect in or undisclosed security interest on 29 the title of the applicant. An injured party may bring a court action against the bond or 30 cash deposit for a breach of the conditions of the bond or cash deposit, but the liability 31 of the bond surety or the department may not exceed the amount of the bond or cash

01 deposit. The department shall return the bond or cash deposit at the end of three years 02 after the submission under (b) of this section, except that service on the department of 03 notice that an action is pending against the bond or cash deposit extends that period 04 until 45 days after a final decision in the action on the bond or cash deposit. 05 (d) If the department is satisfied that the application filed under (a) of this 06 section complies with (b) of this section, the department shall, subject to 07 AS 28.05.041, indicate under AS 28.05.061 on the department's records that the 08 manufactured home is not subject to this chapter and shall provide to the owner a 09 written confirmation that the owner of the manufactured home has submitted an 10 application that complies with (b) of this section and that the manufactured home is 11 not subject to this chapter. The department shall deliver the written confirmation to the 12 owner of the manufactured home and to a person identified under AS 28.10.266(12). 13 (e) When the department has provided a written confirmation under (d) of this 14 section, the manufactured home is not subject to this chapter. 15 Sec. 28.10.265. Certificate of title to severed manufactured home. (a) The 16 owner of a manufactured home may submit an application to the department 17 requesting that the department issue a certificate of title to a manufactured home and 18 update the department's records under AS 28.05.061 if 19 (1) the manufactured home was permanently affixed to real property 20 under AS 34.85.150; 21 (2) an affixation affidavit was recorded for the manufactured home 22 under AS 40.17.125; and 23 (3) after the occurrence of (1) and (2) of this subsection, the 24 manufactured home was severed from the real property to which it was affixed. 25 (b) The application under (a) of this section must comply with AS 28.10.266. 26 (c) Subject to AS 28.05.041, if the department is satisfied that the application 27 filed under (a) of this section complies with (b) of this section, the department shall 28 issue a certificate of title to the manufactured home under AS 28.10.231 - 28.10.241, 29 update the department's records under AS 28.05.061, and issue to the owner and to a 30 person identified under AS 28.10.266(12) a written acknowledgment that the 31 department has issued a certificate of title under this section.

01 (d) When the department has issued a certificate of title under (c) of this 02 section, the manufactured home is subject to this chapter. 03 Sec. 28.10.266. Application provisions. An application under AS 28.10.262 - 04 28.10.265 must provide 05 (1) the name, residence, and mailing address of the owner of the 06 manufactured home; 07 (2) a description of the manufactured home, including the name of the 08 manufacturer, the make, the model name, the model year, the manufacturer's serial 09 number for the manufactured home, and other information required by the department 10 about the manufactured home; 11 (3) whether the manufactured home is new or used; 12 (4) for an application under AS 28.10.262 - 28.10.264, the date of 13 purchase by the owner of the manufactured home and the name and address of the 14 person from whom the home was acquired; 15 (5) for an application under AS 28.10.262 - 28.10.264, the name and 16 address of any person who holds a lien or an encumbrance against the manufactured 17 home and the order of apparent priority; 18 (6) a statement signed by the owner, stating 19 (A) any facts or information known to the owner that could 20 reasonably affect the validity of the title to the manufactured home or the 21 existence or nonexistence of a lien or encumbrance on it; or 22 (B) that the owner does not know any facts or information that 23 could reasonably affect the validity of the title to the manufactured home or the 24 existence or nonexistence of a lien or encumbrance on the manufactured home; 25 (7) subject to AS 28.10.268, for an application under AS 28.10.262 - 26 28.10.264, a certified copy of an affixation affidavit that complies with AS 34.85.060 27 and that has been recorded under AS 40.17.125 for the manufactured home; 28 (8) for an application under AS 28.10.265, a certified copy of a 29 severance affidavit that complies with AS 34.85.120 and that has been recorded under 30 AS 40.17.125 for the manufactured home; 31 (9) for an application under AS 28.10.262, the original manufacturer's

01 certificate of origin; 02 (10) for an application under AS 28.10.263, the original certificate of 03 title; 04 (11) for an application under AS 28.10.264 or 28.10.265, a declaration 05 that complies with AS 28.10.267; 06 (12) if desired by the applicant, the name and mailing address of one 07 person, in addition to the owner, to receive a written acknowledgment from the 08 department under AS 28.10.262, 28.10.263, or 28.10.265 or a written confirmation 09 under AS 28.10.264; and 10 (13) other information and documents the department reasonably 11 requires 12 (A) to identify the owner of the manufactured home; 13 (B) to determine the existence or nonexistence of liens or 14 encumbrances on the manufactured home; 15 (C) for an application under AS 28.10.262 - 28.10.264, to 16 enable the department to determine whether the owner satisfied the applicable 17 requirements of AS 34.85.010; and 18 (D) for an application under AS 28.10.265, to enable the 19 department to determine whether the owner of the manufactured home is 20 entitled to a certificate of title. 21 Sec. 28.10.267. Declaration. (a) The declaration required by 22 AS 28.10.266(11) must be made under oath or affirmation by an attorney authorized 23 under AS 08.08 to practice law in the state or an agent of a title insurance company 24 entitled under AS 21.66 to transact a title insurance business in this state. 25 (b) The declaration must state that the manufactured home is free and clear of 26 all liens and encumbrances and 27 (1) any facts or information known to the attorney or agent that could 28 reasonably affect the validity of the title to the manufactured home or the existence or 29 nonexistence of a lien or encumbrance on the manufactured home; or 30 (2) that the attorney or agent does not know any facts or information 31 that could reasonably affect the validity of the title to the manufactured home or the

01 existence or nonexistence of a lien or encumbrance on the manufactured home. 02 Sec. 28.10.268. Time of satisfaction. If a person delivers an application under 03 AS 28.10.262 - 28.10.264 for a manufactured home to the department within 30 days 04 after an affixation affidavit for the manufactured home is recorded under 05 AS 40.17.125, and if the application is accepted by the department, the requirements 06 of AS 28.10.262 - 28.10.264 are considered to be satisfied on the date the affixation 07 affidavit is recorded, and, if the manufactured home is conveyed or encumbered on 08 and after that date, the manufactured home shall be conveyed and encumbered as real 09 property. 10 Sec. 28.10.269. Definitions. In AS 28.10.201 - 28.10.269, unless the context 11 indicates otherwise, 12 (1) "affixation affidavit" means an affixation affidavit under 13 AS 34.85.060; 14 (2) "severance affidavit" means a severance affidavit under 15 AS 34.85.120. 16 * Sec. 17. AS 28.10.371 is amended by adding new subsections to read: 17 (b) Notwithstanding (a) of this section, a lien on a manufactured home for the 18 purchase of the manufactured home is valid against judicial lien creditors and 19 execution creditors on and after the date the lien attaches under AS 45.29 against the 20 manufactured home. 21 (c) Notwithstanding (a) of this section, the holder of a lien on a manufactured 22 home may deliver a lien release document to a person to facilitate conveying or 23 encumbering the manufactured home. A person receiving the lien release document 24 holds the document in trust for the lienholder. 25 * Sec. 18. AS 28.10.381 is amended by adding a new subsection to read: 26 (c) Except as otherwise provided in AS 28.10.262, 28.10.263, and AS 34.85, 27 after a certificate of title to a manufactured home has been issued and while the 28 manufactured home is subject to a lien or encumbrance under (a) of this section, 29 (1) the department may not cancel the manufacturer's certificate of 30 origin for the manufactured home under AS 28.10.262, or cancel the certificate of title 31 to the manufactured home under AS 28.10.263; and

01 (2) the validity and priority of the lien or encumbrance continues. 02 * Sec. 19. AS 28.10.391 is amended by adding a new subsection to read: 03 (e) Notwithstanding another provision of this section, the creation or 04 termination of a lien or encumbrance with respect to a manufactured home that has 05 been converted to real property under AS 34.85.010 is governed by the laws that apply 06 to real property. 07 * Sec. 20. AS 28.10.661(2) is amended to read: 08 (2) "vehicle" includes mobile homes for the purposes of provisions 09 relating to certificates of title; in this paragraph, "mobile home" means a 10 manufactured home. 11 * Sec. 21. AS 28.10.661 is amended by adding a new paragraph to read: 12 (3) "manufactured home" has the meaning given in AS 45.29.102. 13 * Sec. 22. AS 29.45.070 is amended to read: 14 Sec. 29.45.070. Mobile homes. Mobile homes, trailers, house trailers, trailer 15 coaches, and similar property used or intended to be used for residential, office, or 16 commercial purposes and permanently affixed [ATTACHED] to real property 17 under AS 34.85.150 [THE LAND OR CONNECTED TO WATER, GAS, 18 ELECTRIC, OR SEWAGE FACILITIES] are classified as real property for tax 19 purposes unless expressly classified as personal property by ordinance. This section 20 does not apply to house trailers and mobile homes that are unoccupied and held for 21 sale by persons engaged in the business of selling mobile homes. In this section, 22 "mobile home" has the meaning given to "manufactured home" in AS 45.29.102. 23 * Sec. 23. AS 34.03.360 is amended by adding a new paragraph to read: 24 (23) "mobile home" has the meaning given to "manufactured home" in 25 AS 45.29.102. 26 * Sec. 24. AS 34.70.200(3) is amended to read: 27 (3) "residential real property" means real property whose primary 28 purpose is to provide a single-family dwelling, or two single-family dwellings in one 29 building, including a manufactured home that has become real property under 30 AS 34.85.010; in this paragraph, "manufactured home" has the meaning given in 31 AS 45.29.102;

01 * Sec. 25. AS 34.80.090(6) is amended to read: 02 (6) "residential real property" means real property on which there are 03 one to four attached or detached dwelling units, or any number of apartments if the 04 apartments are in a horizontal property regime formed under AS 34.07 or any number 05 of units if the units are in a common interest community created under AS 34.08; 06 "residential real property" includes a manufactured home that has become real 07 property under AS 34.85.010; in this paragraph, "manufactured home" has the 08 meaning given in AS 45.29.102; 09 * Sec. 26. AS 34 is amended by adding a new chapter to read: 10 Chapter 85. Manufactured Home Property Act. 11 Sec. 34.85.010. Real property characterization. A manufactured home 12 becomes real property if 13 (1) the home is permanently affixed to land under AS 34.85.150; 14 (2) an affixation affidavit has been recorded under AS 40.17.125; 15 (3) the ownership interests in the manufactured home and in the real 16 property to which the manufactured home is permanently affixed are identical, except 17 as provided by AS 34.85.040; and 18 (4) the manufactured home is 19 (A) covered by a manufacturer's certificate of origin that the 20 owner of the manufactured home is able to produce, and the department has 21 cancelled the manufacturer's certificate of origin under AS 28.10.262; 22 (B) covered by a certificate of title that the owner of the 23 manufactured home is able to produce, and the department has cancelled the 24 certificate of title under AS 28.10.263; or 25 (C) not covered by a manufacturer's certificate of origin or a 26 certificate of title, or if the manufactured home is covered by a manufacturer's 27 certificate of origin or a certificate of title but the owner of the manufactured 28 home, after diligent search and inquiry, was unable to produce the 29 manufacturer's certificate of origin or certificate of title, and the department 30 has provided a written confirmation under AS 28.10.264. 31 Sec. 34.85.020. Effect of real property characterization. (a) When a

01 manufactured home becomes real property under AS 34.85.010, a mortgage, deed of 02 trust, lien, or security interest that can attach to land, buildings erected on land, or 03 fixtures affixed to land or buildings attaches to the manufactured home in the same 04 manner as if the manufactured home were built from ordinary building materials on 05 the land where the manufactured home is located. 06 (b) If the title to a manufactured home is transferred after the manufactured 07 home becomes real property under AS 34.85.010, title to the manufactured home, 08 together with the land to which the converted manufactured home is affixed, shall be 09 transferred by deed or other form of conveyance that is effective to transfer an interest 10 in real property. 11 (c) When a manufactured home becomes real property under AS 34.85.010, 12 the manufactured home is governed by the laws applicable to real property in effect on 13 the date the manufactured home satisfies AS 34.85.010. 14 Sec. 34.85.040. Ownership interest exception. If the owner of a 15 manufactured home is not the owner of the real property on which the manufactured 16 home is located, the requirement under AS 34.85.010(3) that the ownership interests 17 be identical is satisfied if the owner possesses the real property under 18 (1) a lease in a recordable form that has a term that continues for at 19 least 20 years after the date of execution of the affixation affidavit; and 20 (2) the lessor of the real property consents. 21 Sec. 34.85.060. Affixation affidavit requirements. An affixation affidavit 22 must provide 23 (1) the name of the manufacturer, the make, the model name, the 24 model year, the dimensions, and the manufacturer's serial number of the manufactured 25 home; 26 (2) whether the manufactured home is new or used; 27 (3) a statement that the person executing the affidavit is 28 (A) the owner of the real property described in the affixation 29 affidavit; or 30 (B) not the owner of the real property described in the 31 affixation affidavit, and the person

01 (i) is in possession of the real property under a lease in 02 recordable form that has a term that continues for at least 20 years after 03 the date of execution of the affidavit; and 04 (ii) the lessor of the real property consents; 05 (4) if (3)(B)(ii) of this section applies, the consent of the lessor of the 06 real property endorsed on or attached to the affidavit and acknowledged or proved in 07 the manner required for the conveyance to be recorded; 08 (5) the street address and the legal description of the real property to 09 which the manufactured home is or shall be permanently affixed; 10 (6) if the manufactured home is not covered by a certificate of title, a 11 statement by the owner to that effect; 12 (7) an owner's statement under AS 34.85.070; 13 (8) a statement whether or not the manufactured home is subject to a 14 lien or encumbrance; 15 (9) if the manufactured home is subject to a lien or encumbrance, a 16 statement giving the name and address of each person who holds a lien or 17 encumbrance on the manufactured home, including each holder of a lien or 18 encumbrance shown on a certificate of title issued by the department, the original 19 principal amount secured by each lien and encumbrance, and a statement that 20 (A) the lien or encumbrance shall be released; or 21 (B) each lien or encumbrance on the manufactured home has 22 been released and proof of the release; 23 (10) if the manufactured home is not covered by a manufacturer's 24 certificate of origin or a certificate of title, a statement by the owner of the 25 manufactured home that the manufactured home is not covered by a manufacturer's 26 certificate of origin or a certificate of title and that the owner of the manufactured 27 home will apply to the department under AS 28.10.264; 28 (11) a statement that the manufactured home is or will be permanently 29 affixed to the real property; and 30 (12) the name and address of a person designated for filing the 31 certified copy of the affixation affidavit with the department.

01 Sec. 34.85.070. Owner's statement for affixation affidavit. (a) An owner's 02 statement for an affixation affidavit must comply with (b) or (c) of this section. 03 (b) If a manufactured home is covered by a manufacturer's certificate of 04 origin, the owner of the manufactured home shall 05 (1) state that the manufactured home is covered by a manufacturer's 06 certificate of origin, provide the date the manufacturer's certificate of origin was 07 issued, provide the manufacturer's serial number, state that the original manufacturer's 08 certificate of origin for the manufactured home is annexed to the affixation affidavit 09 and is endorsed to the owner of the manufactured home, and state that the owner of the 10 manufactured home will surrender the manufacturer's certificate of origin for 11 cancellation under AS 28.10.262; or 12 (2) state that the owner of the manufactured home, after diligent search 13 and inquiry, has been unable to produce the original manufacturer's certificate of 14 origin for the manufactured home and shall apply to the department under 15 AS 28.10.264. 16 (c) If a manufactured home is covered by a certificate of title, the owner of the 17 manufactured home shall 18 (1) state that the manufactured home is covered by a certificate of title, 19 provide the date the title was issued and the title number, and state that the owner shall 20 surrender the title for cancellation under AS 28.10.263; or 21 (2) state that the owner, after diligent search and inquiry, has been 22 unable to produce the certificate of title to the manufactured home and shall apply to 23 the department under AS 28.10.264. 24 Sec. 34.85.080. Effect on liens and encumbrances. Permanently affixing a 25 manufactured home to real property or recording an affixation affidavit under 26 AS 40.17.125 does not impair the rights of a holder of, or the character of, a lien or 27 encumbrance on a manufactured home under AS 28.10.381 unless an application to 28 cancel the title is filed with the department under AS 28.10.263 and the lien or 29 encumbrance is released under AS 28.10.401. 30 Sec. 34.85.090. Filing affixation affidavit with department. When a person 31 designated in an affixation affidavit to file the affixation affidavit with the department

01 receives a certified copy of the recorded affixation affidavit, the person shall deliver 02 the certified copy of the affixation affidavit to the department for filing under 03 AS 28.10.262 - 28.10.264. 04 Sec. 34.85.100. Use of affidavit. (a) Except as provided in AS 34.85.010, 05 34.85.020, 34.85.090, and AS 40.17.125, an affixation affidavit is not necessary or 06 effective to convey or encumber a manufactured home or to change the character of a 07 manufactured home to real property. 08 (b) A conveyance of land on which a manufactured home is located must 09 recite that the conveyance does not affect the title to the manufactured home and that 10 the transfer or encumbrance of the manufactured home can only be made under 11 AS 28.10 if 12 (1) an affixation affidavit has not been recorded for the manufactured 13 home; or 14 (2) a severance affidavit has been recorded for the manufactured home. 15 (c) An agreement that waives the requirements of (a) or (b) of this subsection 16 is void. 17 Sec. 34.85.110. Severance of manufactured home. If an affixation affidavit 18 has been recorded for a converted manufactured home and if the converted 19 manufactured home is severed from the real property to which it was affixed, each 20 person having an interest in the real property shall record a severance affidavit in the 21 recording district where the affixation affidavit was recorded. 22 Sec. 34.85.120. Severance affidavit. The severance affidavit must contain or 23 be accompanied by 24 (1) the name, residence, and mailing address of the owner of the 25 manufactured home; 26 (2) a description of the manufactured home, including the name of the 27 manufacturer, the make, the model name, the model year, the dimensions, and the 28 manufacturer's serial number of the manufactured home; 29 (3) whether the manufactured home it is new or used; 30 (4) the serial numbers and date when the affixation affidavit was 31 recorded;

01 (5) a statement 02 (A) of any facts or information known to the person signing the 03 affidavit that could reasonably affect the validity of the title to the 04 manufactured home or the existence or nonexistence of a lien or encumbrance 05 on the manufactured home; or 06 (B) that the person signing the affidavit does not know any 07 facts or information that could reasonably affect the validity of the title to the 08 manufactured home or the existence or nonexistence of a lien or encumbrance 09 on the manufactured home; 10 (6) a declaration made under oath or affirmation by an attorney 11 authorized under AS 08.08 to practice law in the state or an agent of a title insurance 12 company entitled under AS 21.66 to transact a title insurance business in this state that 13 the manufactured home is free and clear of all liens and encumbrances, and 14 (A) stating any facts or information known to the attorney or 15 agent that could reasonably affect the validity of the title to the manufactured 16 home or the existence or nonexistence of a lien or encumbrance on the 17 manufactured home; or 18 (B) that the attorney or agent does not know any facts or 19 information that could reasonably affect the validity of the title to the 20 manufactured home or the existence or nonexistence of a lien or encumbrance 21 on the manufactured home; and 22 (7) the name and address of the person designated to file the certified 23 copy of the severance affidavit with the department under AS 28.10.265. 24 Sec. 34.85.130. Filing of severance affidavit. On receipt of a certified copy of 25 the severance affidavit by the person designated in the affidavit for filing with the 26 department, the person shall file the certified copy with the department under 27 AS 28.10.262 - 28.10.264. 28 Sec. 34.85.140. Affidavit form and acknowledgment. (a) An affixation 29 affidavit and a severance affidavit must be acknowledged in the same manner as a 30 conveyance of real property and must be in a form that may be recorded under 31 AS 40.17.

01 (b) The department shall establish by regulation the forms for an affixation 02 affidavit and a severance affidavit. 03 Sec. 34.85.150. Permanently affixed. A manufactured home is permanently 04 affixed when it is 05 (1) anchored to real property by attachment to a permanent foundation; 06 (2) constructed in accordance with applicable state and local building 07 codes and manufacturer's specifications as provided in the Model Manufactured Home 08 Installation Standards of the federal Department of Housing and Urban Development 09 (24 C.F.R. 3285); and 10 (3) connected to a residential utility, including water, gas, electricity, 11 sewer, or septic service. 12 Sec. 34.85.190. Definitions. In this chapter, unless the context requires 13 otherwise, 14 (1) "affixation affidavit" means an affixation affidavit under 15 AS 34.85.060; 16 (2) "department" means the Department of Administration; 17 (3) "manufactured home" has the meaning given in AS 45.29.102; 18 (4) "permanently affixed" means when a manufactured home is 19 permanently affixed under AS 34.85.150; 20 (5) "severance affidavit" means a severance affidavit under 21 AS 34.85.120. 22 Sec. 34.85.195. Short title. This chapter may be cited as the Manufactured 23 Home Property Act. 24 * Sec. 27. AS 40.17 is amended by adding a new section to read: 25 Sec. 40.17.125. Recording affidavits related to manufactured homes. (a) A 26 recorder shall record an affixation affidavit and a severance affidavit if the affidavit 27 meets the requirements for recording under AS 40.17.030 and is offered for recording 28 in the recording district where the real property to which the manufactured home 29 affixed is located. 30 (b) A recording officer shall place on the recorded affidavit 31 (1) the indexing information for the recorded affidavit; and

01 (2) an indication that the recorded affidavit was recorded. 02 (c) In this section, 03 (1) "affidavit" means an affixation affidavit or a severance affidavit; 04 (2) "affixation affidavit" has the meaning given in AS 34.85.190; 05 (3) "manufactured home" has the meaning given in AS 45.29.102; 06 (4) "recorded affidavit" means an affidavit recorded under this section; 07 (5) "severance affidavit" has the meaning given in AS 34.85.190. 08 * Sec. 28. AS 45.10.220(2) is amended to read: 09 (2) "goods" means personal chattels purchased primarily for personal, 10 family, or household use and not for commercial or business use, but does not include 11 money or, except as provided in the next phrase, chose in action; "goods" includes 12 [BUT IS NOT LIMITED TO] merchandise certificates or coupons issued by a retail 13 seller to be used in their face amount instead of cash in exchange for goods or services 14 sold by the seller and goods, including a manufactured home, that, at the time of 15 sale or subsequently, are to be so affixed to real property as to become a part of it, 16 whether or not severable from it; in this paragraph, "manufactured home" has the 17 meaning given in AS 45.29.102; 18 * Sec. 29. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 TRANSITION: REGULATIONS. The Department of Administration shall adopt 21 regulations necessary to implement this Act. The regulations must take effect under AS 44.62 22 (Administrative Procedure Act) on January 1, 2013. 23 * Sec. 30. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 SAVING CLAUSE. This Act may not be interpreted to impair a right or claim 26 existing under law before January 1, 2013, of a person claiming an interest in a manufactured 27 home. In this section, "manufactured home" has the meaning given in AS 45.29.102. 28 * Sec. 31. Section 29 of this Act takes effect immediately under AS 01.10.070(c). 29 * Sec. 32. Except as provided in sec. 31 of this Act, this Act takes effect January 1, 2013.