Temporary Propane Tank

[Jim Kliegl]

Performing an FHA inspection within an area where propane is typical natural gas source. The property is an REO and vacant that had a leased above ground tank removed. Well, I get there for inspection, and the agents (I believe) attached a 5 gallon tank that you'd typically use for BBQ. Only the water heater and forced air heat unit are powered by nat. gas at the home. Was able to fire each up and verify that each is functional. Is this enough for FHA? I'm leaning towards an "as repaired" value contingent upon the permanent tank being installed (although it's not permanent, technically....just leased). Anyone else run into this in the land of many vacant properties?

 

[EDWARD BERRY]

Works In Arkansas

 

[Mountain Man]

within an area where propane is typical natural gas source.

Which is it... LP or natural gas? If the property is served by natural gas, you can not use LP unless the appliances have been converted. LP has a higher specific gravity and burns almost 3 times hotter. As for the tank, as long as you verify the appliances work, all is good. IMNSHO it is completely unreasonable to require a LP tank, that is personal property, be in place when a call to a local company and $100 will get you a leased tank.

 

[Jim Kliegl]

Thanks for reply......it is LP, not natural gas....

 

[CANative]

People will sometimes do that out here. Usually it's because they didn't pay the bill or don't want to pay for 100 gallons of propane. I don't think it causes an MPR failure. And I don't think it has any effect on value.

How's the weather in CucaLoma?

 

[timd354]

Performing an FHA inspection within an area where propane is typical natural gas source. The property is an REO and vacant that had a leased above ground tank removed. Well, I get there for inspection, and the agents (I believe) attached a 5 gallon tank that you'd typically use for BBQ. Only the water heater and forced air heat unit are powered by nat. gas at the home. Was able to fire each up and verify that each is functional. Is this enough for FHA? I'm leaning towards an "as repaired" value contingent upon the permanent tank being installed (although it's not permanent, technically....just leased). Anyone else run into this in the land of many vacant properties?

Yes, I have run into this a couple of times. I just disclose this situation to the lender and let the DEU make the call. One lender required a "permanent" larger tank to be installed, while the other lenders accepted the property "as is".

 

[Michael Tipton]

Propane tanks must be a safe distance from the dwelling. Leased tanks are acceptable when not offered for sale. Propane fired furnaces located in a crawl space area is not acceptable.

http://www.HUD.gov/offices/hsg/sfh/ref/sfhp1-26.cfm

 

[Mountain Man]

Propane tanks must be a safe distance from the dwelling.

Only if over 100 gallons. Small tanks can be right up against the house. Larger tanks must be 10 feet away from any structure, power service, or potential ignition sources.