HUD HOC Reference Guide

Basements and Crawl Spaces

Chapter 1
Appraisal & Property Requirements
Page 1-25

A: Basements: Basements must be examined for dampness or wetness, any obvious structural problems and the condition of the furnace, hot water heater or other components located there.

  1. Sump Pumps in Crawl Space and Basement Areas: Sump pumps are acceptable to HUD provided that they are properly functioning at the time of appraisal. A sump pump may be hard-wired by an acceptable wiring method or may have a factory electrical cord which is to be connected to a receptacle suitable for such use. The receptacle must be located to allow connection to the factory wiring without the use of an extension cord. Note: A sump pump is not a cure-all. If there is significant incurable ponding of water in basements or crawl spaces, the underwriter may elect to reject the property.

B: Crawl Spaces: General Requirements HUD Handbooks 4905.1 REV-1, 2-14 & 2-11 and 4150.2, Section 3-6A11 - In order to ensure against conditions which could cause deterioration to the building and seriously affect the marketability of the property, it is required that:

  1. There must be adequate access to the crawl space.
  2. The appraiser will enter the crawl space at a minimum entry of the head and shoulders to observe conditions, except when access is obstructed, when entry could damage the property, or when dangerous and adverse situations are suspected.
  3. It is highly recommended that the minimum height of a crawl space be 18 inches from the bottom of the joists.
  4. The crawl space must be clear of all debris.
  5. The crawl space must not be excessively damp and must not have any water ponding.
  6. The crawl space must be adequately ventilated, providing positive airflow with no dead air space. A vapor barrier is not typically required; however, if moisture problems are evident, a vapor barrier should be required.
  7. Please see: HUD Handbook 4150.2, Section 3-6A.11,& HUD Handbook 4905.1, Rev-1.

Content Archived: November 2, 2012