HUD HOC Reference Guide

Note: Page 1-18h: Insulation was removed from the guide in 2011.

Asbestos Insulation: Asbestos used as roof shingles or siding on a house does not pose a danger as would be if the material were deteriorating within the confines of a home. When used as a wrap for hot water pipes, it is usually covered and poses no danger. When the material is deteriorating into a fine powder and can be inhaled, it may pose a danger to one’s health.

Asbestos wrapping around hot water pipes in the basement of a dwelling may be found in older homes. If an appraiser notices this, he/she should make a note on the appraisal report that there appears to be asbestos insulation wrap around the hot water pipes. If there is not obvious deterioration of the asbestos such as punctures or other damage, it should be left alone. If there is obvious damage, the appraiser should annotate the valuation condition sheet and the lender should require an inspection by a professional in that field to determine the proper course of action that is the most cost effective method of abatement.

Foam Plastic Or Foam Core: Please see: HUD Handbook 4150.1, P. 12-20, Section 20-21.

Please Note: The use of the newly revised Fannie Mae appraisal reporting forms, and elimination of the VC sheet and Homebuyer summary, which have been adopted by FHA via Mortgagee Letter 2005-34, is optional between November 1, 2005 and the mandatory start date of January 1, 2006. The new protocol must be followed when using the new form whether it is done at the lender/client's request or of the appraiser's choosing. This reference guide page will be further updated after January 1, 2006. For further information please contact your local HUD Homeownership Center.

• Airports
• Railroad tracks and other high noise sources
• Flood zones and insurance
• Lead based paint
• Radon
• Overhead high voltage transmission towers and lines
• Operating and abandoned oil and gas wells, tanks and pressure lines
• Insulation materials
• Lava zones
• Avalanche hazards