Texas Manufactured Housing License Bond

Texas Manufactured Housing License Bond

Individuals who work in the manufactured housing industry as a manufacturer, retailer, broker, or installer must be registered with the Texas Department of Housing and Community Affairs (TDHCA) Manufactured Housing Division. To be eligible for a license, a Manufactured Housing License Bond (formally known as the Continuous Manufactured Housing Licensing Surety Bond) is required of the applicant.

APPLY FOR BOND

Jet Insurance Company provides the Manufactured Housing License Bond to act as a financial assurance for the TDHCA Manufactured Housing Division that the licensee will follow industry regulations and fulfill all contractual obligations. If negligence, criminal malfeasance, fraud, or a breach of contract is committed and the licensee does not pay any restitution due, the surety bond will be used to cover any losses incurred by the damaged consumer and/or the Division themselves.

What Is the Bond Limit and Cost of the Manufactured Housing License Bond?

According to the Manufactured Housing Division, the required limit of your Manufactured Housing License Bond is based on your license type (bond amounts are depicted in the chart below). 

At Jet, the cost of the Manufactured Housing License Bond is a very small fraction of the custom bond limit and is based on the creditworthiness of the applicant. For example, installers that qualify for a $25,000 bond amount can pay as little as $250 for a 1-year bond term if they meet Jet’s preferred credit tier. 

In the chart below, you will find a list of manufactured housing license types, the bond amount needed for each, and Jet’s approved rate options.

License TypeBond Limit RequiredMonthly CostAnnual Cost
Installer$25,000$25$250
Broker$50,000$50$500
Retailer$50,000$50$500
Manufacturer$100,000$100$1,000
Texas Manufactured Housing Bond Pricing

If you are a manufacturer that does not have a licensed manufacturing facility in the State of Texas, you will be required to file an additional $100,000 Manufactured Housing Bond with the Division. 

It is also important to note that the Division may require a higher bond limit for any applicant that has caused previous violations and/or claims while working in the manufactured housing industry. So this is a great incentive to not veer from the regulations of your license.

Who Needs the Manufactured Housing License Bond?

Any person that works in the manufactured housing industry, such as a salesperson, must be registered with the Texas Department of Housing and Community Affairs. However, only a select few must be licensed AND bonded with the TDHCA Manufactured Housing Division. Below is a list of each license type that requires a Manufactured Housing License Bond, as well as a brief description of what the job entails.

A manufacturer, retailer, broker, or installer that has more than one place of business must obtain a separate surety bond for each location. This even includes any business property that is located within 300 feet of the bonded business location.

What Is the Purpose of the Texas Bond?

The purpose of the Manufactured Housing License Bond is to protect the consumer from financial harm in cases where the licensee commits a violation. For example, the manufacturer’s warranty for a new manufactured home is effective for a full year following the installation of the home. If the manufacturer fails to fulfill any warranty obligations within that timeline, the consumer has the right to file a claim against the licensee. If the claim is granted, the surety bond will cover any financial damages incurred by the claimant.

The Texas Manufactured Housing License Bond Process With Jet

Jet’s application for the Manufactured Housing License Bond is quick and easy! The application process will begin by asking you to provide us with general information such as your contact details, license type, and personal social security number.

APPLY FOR BOND

Once submitted, a Jet underwriter will run a soft credit check. No need to worry though, this won’t affect your score at all. Once completed, you will receive approved rate options via email. All you need to do is select the best plan for you and fulfill the payment. You’ll then receive a copy of your receipt and bond form right away.

The original signed and sealed Manufactured Housing License Bond, along with your license application paperwork, must be submitted by mail to the Texas Department of Housing and Community Affairs at the following address:

Texas Department of Housing and Community Affairs
Manufactured Housing Division
PO Box 12489
Austin, TX 78711

Forms and any other required paperwork can be found on the TDHCA’s License Holders webpage. Further details regarding what each license type requires in the application can be found on the License Requirements Info Sheet

Manufacturer, retailer, broker, and installer licenses remain in effect for two years with the Manufactured Housing Division. However, this is only the case if you have an active bond on file. Therefore, renewal of your Manufactured Housing License Bond will be required to maintain your license and to renew your license as well. This is not a problem though! Jet will send you a renewal invoice for your surety bond well in advance of its official expiration date by email and mail. Simply complete the standard payment due and your bond will remain active with the Division for another term.

If you need to cancel your Manufactured Housing License Bond for any reason, you may do so at any time with Jet! All we ask is that you send a written cancellation notice to [email protected]. Once received, we will send a termination notice regarding your bond to the Texas Department of Housing and Community Affairs. The liability of your bond will then be released by the TDHCA within 60 days of receiving notice. 

How Does a Licensee Avoid Manufactured Housing Bond Claims?

Manufacturers, retailers, brokers, and installers are expected to comply with all license regulations pursuant to Title 7, Chapter 1201 of the Texas Occupations Code, as well as fulfill all contractual obligations. A violation of such rules may result in a loss of license (suspension or permanent revocation), civil penalties, and/or a bond claim brought on by the Texas Department of Housing and Community Affairs. 

According to the Manufactured Housing Division, claims on the Manufactured Housing License Bond are rare due to the implemented hearing process for license violations. If a consumer feels a licensee has committed a transgression (negligence, criminal malfeasance, fraud, or a breach of contract), a formal complaint must be filed through the Consumer Protection Program. In cases where the complaint is investigated and found to be valid, the Division will order the licensee to attend a mandatory hearing where the violation and possible penalties will be discussed and determined. If the licensee is ordered to make restitution to the claimant for the damages they caused but is unable to do so with their own funds, the Division will fill a claim on the surety bond on behalf of the damaged party. The Manufactured Housing License Bond will cover the financial damages incurred by the claimant, as well as any TDHCA administrative fees.

If you receive an official claim notice from the Texas Department of Housing and Community Affairs, please contact Jet as soon as possible. Once contacted, we will brief you on how the claims process works and ask that you provide us with all available information and documentation regarding the alleged violations. These details are used for our own review and investigation.

Per the Continuous Manufactured Housing Licensing Surety Bond form, Jet Insurance Company is legally required to payout all justified claims up to the bond’s limit. It is important to note that claim payments will never exceed the exact amount of the bond. 

As a licensee of the manufactured housing industry, you will be held responsible for your actions and are required to reimburse Jet for the claim payout made on behalf of your transgression(s). Failure to fulfill this obligation will lead to future difficulties in obtaining a surety bond within the State of Texas? specifically the Manufactured Housing License Bond, which as you know, is required for licensure as a manufacturer, retailer, broker, or installer.

Texas Manufactured Housing License Bond Form

Notary Bond Application:

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: