Housing and Community Development (HCD) Practice Exam

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What is the maximum civil penalty that can be imposed for unlicensed activity by a manufactured home dealer?

$1,000
$2,000
$5,000
$10,000

The correct answer is: $2,000

The maximum civil penalty for unlicensed activity by a manufactured home dealer is established to ensure compliance with regulatory standards and to discourage unauthorized operations in the housing market. The amount of $2,000 reflects the seriousness with which regulatory bodies regard the need for licensing, as it protects consumers and promotes fair trade practices within the industry. Penalties higher than this amount, such as $5,000 or $10,000, while they may exist for different types of violations or repeated offenses, are not applicable specifically to the context of unlicensed manufacturing home dealers. Therefore, the figure of $2,000 accurately represents the penalty limit stipulated for this scenario, emphasizing the importance of adhering to licensing laws in manufactured housing.