Housing and Community Development (HCD) Practice Exam

What penalty may be issued if a dealer fails to notify the Department of the sale of a Mh-Unit?

1. A warning with no penalty

2. An assessment of a $100.00 civil penalty

3. A revocation of the dealer's license

4. Referral to the commission for further actions

The correct answer is: An assessment of a $100.00 civil penalty

When a dealer fails to notify the Department of the sale of a manufactured housing unit (MH-Unit), the specific consequences outlined by regulatory guidelines often include the imposition of a civil penalty. In this scenario, the civil penalty is set at $100. This penalty is established as a means to ensure compliance and encourage dealers to fulfill their notification obligations regarding sales. By requiring this notification, the Department can maintain accurate records, monitor the housing market, and protect consumers. Options such as a warning with no penalty do not serve to uphold the enforcement of regulatory measures, and revocation of the dealer's license would typically be reserved for more severe violations or repeated offenses. Likewise, referral to the commission for further actions may indicate a more complex or severe issue rather than addressing a straightforward failure to notify. Therefore, the assessment of a $100 civil penalty serves as a balanced approach, allowing for accountability while not being excessively punitive for a single oversight.