HUD HOC Reference Guide

The property must be free of those foreseeable hazards and adverse conditions that may:

1. affect the health and safety of the occupants
2. affect the structural soundness of the improvements
3. impair the customary use and enjoyment of the property

The hazards include, but are not limited to soil contamination; operating and abandoned oil and gas wells; abandoned wells; slush pits; heavy traffic; airport noise and hazards; runway clear zones/clear zones; proximity to high pressure gas, liquid petroleum pipe lines or other volatile and explosive products; high-voltage transmission lines; radio/TV transmission towers; excessive smoke, fumes, odors and stationary storage tanks containing flammable or explosive material. Other hazards that must be assessed include potential damage from soil or other differential ground movements, subsidence, ground water, inadequate surface drainage, flood, erosion, excessive noise, defective lead base paint (24 CFR Part 35 -- http://www.gpoaccess.gov/index.html) and other hazards on or off the site. The appraiser is to note the proximity to dumps, landfills and other sites that could contain hazardous wastes. If there is readily observable evidence of on-site contamination, the appraiser will call for further inspection in the ?site section? of the appraisal report.

Primary Reference for articles in this section are Mortgagee Letter 2005-48, Appendix D, HUD Handbook 4150.1 Rev-1 Chapter 4, HUD Handbook 4150.2 Section 2-2, & 24 CFR 200.926d

• 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