The Appraiser must report known environmental and safety hazards and adverse conditions that may affect the health and safety of the occupants, the property’s ability to serve as collateral, and the structural soundness of the improvements.
If the dwelling or related improvements were built on or before 1978, the Appraiser must note the condition and location of all defective paint and require repair in compliance with 24 CFR 200.810(c) and any applicable Environmental Protection Agency (EPA) requirements. The Appraiser must observe all interior and exterior surfaces, including common areas, stairs, deck, porch, railings, windows and doors, for defective paint (cracking, scaling, chipping, peeling, or loose). Exterior surfaces include those surfaces on fences, detached garages, storage sheds, and other outbuildings and appurtenant structures.
For condominium units built on or before 1978, the Appraiser must observe the interior of the unit, common unit and exterior surfaces and appurtenant structures of the specific unit being appraised and address the overall condition, maintenance and appearance of the condominium project. The Appraiser must note the condition and location of all defective paint in the unit, common area and exterior, and require repair in compliance with 24 CFR 200.810(c) and any applicable EPA requirements.
For additional information see Handbook 4000.1 II.D.3.n.i. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh