Is the appraiser required to observe and report any defective paint?

If the dwelling or related improvements were built after 1978, the Appraiser must report all defective paint surfaces on the exterior and require repair of any defective paint that exposes the subsurface to the elements. 

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.  Regulation 24 CFR, 200.810(c) is available at http://www.ecfr.gov 

For additional information see Handbook 4000.1 II.D.3.j. & II.D.3.n.i.  at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04161