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VC-11 Other Health and Safety Deficiencies

This chapter addresses the interior components of the subject property and the effect that their condition may have on the habitability and enjoyment of the property. The appraiser is not required to observe storm windows, storm doors, screens, shutters, awnings and similar seasonal accessories, fencing, garage door remote control transmitters, wallpaper, carpeting, draperies, blinds, household appliances or recreational facilities.

Field

Protocol

Other Health and Safety Deficiencies (Handbook Chapter 3-6 A.14)

Operate a representative number of windows, interior doors and all exterior and garage doors. Verify that the electric garage door opener will automatically reverse or stop when met with reasonable resistance during closing. Note and make a repair requirement for any health or safety deficiencies as they relate to the subject property, including broken windows/doors/steps, inadequate/blocked doors and steps without a handrail. If any of the conditions exist, condition the appraisal on their repair, mark "YES " in the VC and prepare the appraisal "as-repaired" subject to the satisfaction of the condition.

VC-12 Lead-Based Paint Hazard

Field

Protocol

Lead-Based Paint (Handbook Chapter 3-6 A.15)

If the home was built before 1978, note the condition of all defective paint surfaces and their location in the home. Comment on the deterioration of painted surfaces of the subject property Inspect all interior and exterior surfaces, such as walls, stairs, deck porch, railing, windows or doors for defective (chipping, flaking or peeling) paint. (Exterior surfaces include surfaces on fences, detached garages, storage sheds and other outbuildings and appurtenant structures.) If there is evidence of defective paint surfaces, condition the appraisal on their repair, mark "YES" in the VC and prepare the appraisal "as-repaired" subject to the satisfaction of the condition.

VC-13 Condominiums and Planned Urban Developments (PUD)

If the subject property is located in a Planned Unit Development or condominium setting, it must be on FHA's approval list or accepted through reciprocity. The property should meet the owner-occupancy standards and completion standards defined below.

Field

Protocol

This project is not on FHA's approval list

Verify that the approval number exists. The lender must supply the approval number on the appraisal. If the project is not approved, mark "YES" in the VC and condition the appraisal on this information.

The property does not meet owner-and occupancy standards

The project must be at least 51% owner-occupied. If owner-occupancy rates are less than 51%, mark "YES" in the VC condition the appraisal on this information.

This property does not meet completion standards

The project must be at least 2/3 complete. If completion rate is less than 2/3, mark "YES" in the VC and condition the appraisal on this information.

Radon. Currently, HUD does not require radon testing of homes that are to be insured by this agency.

Addenda

Field

Protocol

A. Assessed Market Value

Enter the assessed market value in the VC addenda. (It varies by municipality but is entered only when the value is represented as current.) The total of all taxes should be included. Excessive taxes can have a negative effect and must be reflected in the value. If there is no method to relate the assessment to market value, such as for new construction, mark the assessed market "N/ A".

B. Estimated Repair Costs

Quantify the costs associated with the repairs in the VC. These costs relate strictly to repair and not marketability. Use standard cost information, such as Marshall and Swift, in preparing the estimate.

 

D-3 HOMEBUYER SUMMARY

The Homebuyer Summary intends to protect the homebuyer by informing him/her of any material conditions that typically make the property ineligible for FHA mortgage insurance. If any of the VC's are marked "YES" in the VC form, the appraiser must denote it in the appropriate box of the Homebuyer Summary and explain, in detail, the nature of the problem. The lender is legally bound to address these problems before closing on the property.

Field

Protocol

Site Hazards

Mark "Y " under problem if any of the sections in VC-1 are marked "yes".

Soil Contamination

Mark "Y " under problem if any of the sections in VC-2 are marked "yes".

Grading and Problems Drainage

Mark "Y " under problem if any of the sections in VC-3 are marked "yes".

Well, Individual Water Supply and Septic Problems

Mark "Y " under problem if any of the sections in VC-4 are marked "yes".

Wood Destroying Insects

Mark "Y" under problem if any of the sections in VC-5 are marked "yes".

Private Road Access and Maintenance Problems

Mark "Y" under problem if any of the sections in VC-6 are marked "yes".

Structural Deficiencies

Mark "Y" under problem if any of the sections in VC-7 are marked "yes".

Foundation Deficiencies

Mark "Y" under problem if any of the sections in VC-8 are marked "yes".

Roofing Deficiencies

Mark "Y" under problem if any of the sections in VC-9 are marked "yes".

Mechanical Systems Problems

Mark "Y" under problem if any of the sections in VC-10 are marked "yes".

General Health and Safety Deficiencies

Mark "Y" under problem if any of the sections in VC-11 are marked "yes".

Deteriorated Paint

Mark "Y " under problem if any of the sections in VC-12 are marked "yes".

Glossary of Terms

  • Component: A readily accessible and observable construction element of a system, including a floor, wall, framing or roof construction that can be considered individually - but not individual pieces such as boards or nails.
  • Dangerous or Adverse Situations: Situations that pose a threat of injury and/or require the use of special protective clothing or safety equipment.
  • Dismantle: To take apart or remove any component, device or piece of equipment that is bolted, screwed or fastened by other means and that would not be taken apart by a homeowner for normal household maintenance.
  • Household Appliance: Kitchen and laundry appliances, room air conditioners and similar appliances.
  • HVAC: Heating, ventilation and air-conditioning system - one combined system or separate systems.
  • Normal Operating Controls: Devices used by homeowner in the operation of a system, such as a thermostat, wall switch or safety switch.
  • Observe: The act of making a visual examination.
  • Operate: To cause systems or equipment to function.
  • Recreational Facilities: Spas, saunas, steam baths, swimming pools, tennis courts, playground equipment and other exercise equipment, entertainment or athletic facilities.
  • Representative Number: For multiple identical components such as windows and electrical outlets, one such component per room. For multiple identical exterior components, one such component on each side of the building.
  • Roof Drainage Systems: Components used to carry water off a roof and away from a building such as gutters, downspouts, leaders, splash blocks.
  • System: A combination of interacting or interdependent components, assembled to carry out one or more functions.
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