After a bond increase, how long must a dealer wait before they can petition?

The correct answer indicates that a dealer must wait 12 months after a bond increase before they can petition. This waiting period is essential for several reasons, primarily related to ensuring that the bond, which serves as a form of financial security and assurance of compliance with regulations, is maintained at an adequate level for a sufficient duration.

By requiring a 12-month timeframe, the regulatory authority ensures that the dealer demonstrates a consistent pattern of operation under the conditions of the increased bond. This period allows for the assessment of the dealer's business performance, compliance with applicable laws, and the general stability of their operations. It aims to provide a clear perspective on whether the increase in bonding reflects a sustainable business practice and not a short-term measure.

This requirement serves to protect consumers and create a more reliable marketplace for manufactured homes. A shorter waiting period could risk granting petitions without fully understanding the long-term implications, while a longer period, such as 24 months, may unnecessarily restrict a dealer's ability to adapt to their business needs. Therefore, 12 months strikes a balance that supports both regulatory oversight and the operational flexibility of home dealers.