Housing and Community Development (HCD) Practice Exam

Under what condition can funds for accessories installed in a manufactured home be disbursed from escrow?

1. When the dealer confirms delivery of the accessory

2. Only after the accessory is installed and the dealer submits a written statement

3. Once the accessory is ordered and paid for

4. Immediately, as per the buyer's request

The correct answer is: Only after the accessory is installed and the dealer submits a written statement

The disbursement of funds for accessories installed in a manufactured home typically occurs only after the accessory is installed and the dealer submits a written statement. This requirement ensures that the funds are distributed appropriately and that the buyer receives the necessary verification that the accessory has been properly installed as part of the home. This condition protects both the buyer and the lender by confirming that the accessory is not only ordered but actually in place and functioning. By requiring a written statement from the dealer, it also serves as documentation for the transaction, providing a layer of accountability and assurance that the buyer receives the value they are paying for. In contrast, other options do not offer sufficient verification or completion status of the installation process. For example, confirming delivery does not guarantee that the accessory has been put in place or is operational. Similarly, ordering and paying for an accessory does not mean it has been installed, and fulfilling a request immediately without this verification could lead to misuse of funds. Thus, the condition specified is necessary for responsible financial management in the context of housing and community development.