Housing and Community Development (HCD) Practice Exam

Eligibility to receive benefits from the Manufactured Home Recovery Fund is extended to both purchasers and sellers who experience losses due to various forms of fraud. This is important because the fund is designed to protect individuals involved in the manufactured home market from fraudulent activities that may result in financial losses.

By including both purchasers and sellers, the fund acknowledges that fraud can affect all parties involved in a transaction. For example, purchasers might face issues like inflated pricing or misrepresentation of a home’s condition, while sellers may encounter fraudulent practices that undermine their ability to complete a sale or receive fair compensation. This dual protection promotes fairness and accountability in the manufactured home market, ensuring that those impacted by fraud have a recourse to recover their losses.

Other options focus solely on one group—either purchasers, sellers, or investors—which limits the fund’s protective scope. By recognizing the broader spectrum of eligibility, the correct answer emphasizes the fund's role in addressing the diverse risks faced by all stakeholders in the industry.