(a) For a manufactured home to be approved for installation and use as a dwelling in a colonia:
(1) the home must be a HUD-code manufactured home, as defined by § 1201.003, Occupations Code;
(2) the home must be habitable, as described by § 1201.453, Occupations Code; and
(3) ownership of the home must be properly recorded with the manufactured housing division of the department.
(b) An owner of a manufactured home is not eligible to participate in a grant loan program offered by the department, including the single-family mortgage revenue bond program under § 2306.142, unless the owner complies with Subsection (a).