New block house in Green Cove Springs: the stucco crew ran the finish coat down to 2 inches below grade so it 'looks clean,' the insulation guy put 2-inch foam board on the outside of the stem wall below grade, and the landscaper piled mulch up to the sill and added 6 inches of fill against the house after the termite treatment.

Everything is wrong. You have created a "perfect storm" for concealed termite entry, moisture intrusion, and code violations. Here is the breakdown by trade:

1. Stucco Below Grade (FBC R703.7.2.1 / IRC R703.7.2.1)

• Code: Exterior stucco must terminate minimum 4 inches above grade (6 inches above soil if not paved).
• Defect: At 2 inches below grade, the stucco wicks ground water directly into the block cores and interior slab edge. It bridges the termiticide barrier, allowing subterranean termites to tunnel behind the stucco undetected (no visible shelter tubes).
• Fix: Remove stucco to 4"+ above final grade. Install a weep screed (FBC R703.7.2.1) at the termination point.

2. Exterior Foam Below Grade (FBC R318.4 / IRC R318.4)

• Code: Foam plastic insulation shall not be installed below grade unless specifically approved for ground contact and a termite inspection gap is maintained.
• Defect: The 2" foam covers the stem wall exterior. Termites tunnel behind the foam, invisible to inspectors. In Florida (Heavy Termite Infestation Probability Map), this voids most termite bonds.
• Fix: Remove foam below grade. If insulation is required, use rigid mineral wool or install foam interior side of stem wall only.

3. Mulch/Fill Against Sill (FBC R317.1 / IRC R317.1 & R404.1.6)

• Code: Wood framing/sill must be minimum 8 inches above exposed earth (6 inches if paved). Final grade must slope away (≥5% for 10 ft).
• Defect: Mulch + 6" fill = 0 inches clearance to sill plate. This traps moisture against untreated wood (sill plate), guarantees rot, and provides a direct "bridge" for termites over the chemical soil barrier.
• Fix: Re-grade immediately. Establish 8" minimum clearance from bottom of sill plate to top of mulch/soil. Pull mulch back 12–18" from foundation.

The "Termite Treatment" is Now Void

Florida Statute 482.226 and FDACS rules require an unobstructed inspection zone. Stucco below grade + foam + buried sill = concealed access. No licensed WDO inspector will issue a clear Wood Destroying Organism report (WDO/1145) for a mortgage/insurance.

Immediate Action

1. Stop landscaping. Do not sign off on final grade.
2. Hire a licensed GC to coordinate: Stucco cut-back, foam removal, re-grading, and sill plate inspection for rot.
3. Re-treat termite barrier after repairs (trench/rod around exposed footer).
4. Document everything for the subs' liability insurance.

Bottom line:

This is a serious moisture and termite risk — and violates multiple building codes and best practices.

What’s wrong:

1. Stucco below grade (2" below soil): - IRC R703.7.2 requires exterior plaster (stucco) to terminate at least 6 inches above finished grade or an approved water-resistive barrier (WRB) and flashing system. - Running stucco to 2" below grade traps moisture against the wall, promotes wicking, and can lead to rot, mold, and delamination. Stucco is not designed for constant soil contact.

1. Foam board insulation on exterior of stem wall below grade: - While exterior foam insulation (like XPS) is allowed below grade (IRC R318.1, R402.2.9), it must be protected from physical damage and UV. - More critically: foam insulation below grade creates a concealed termite pathway if not treated or inspected. Termites can tunnel behind it undetected. - IRC R318.3 requires a 6-inch inspection gap between the top of exterior foam insulation and any wood framing (like sill plate) to allow for visual termite inspection. Burying foam against the stem wall without this gap violates code and defeats termite treatment.

1. Mulch and fill piled against the house (up to sill, +6" after treatment): - IRC R405.1 requires positive drainage away from the foundation — minimum 6 inches of fall in the first 10 feet. - Piling mulch and fill against the siding or stucco: - Bridges the termite treatment (chemical barrier in soil is now breached). - Holds moisture against the wall, promoting rot and insect infestation. - Violates IRC R318.1 and R405.1 — termite barriers must remain visible and intact. - Mulch should be at least 6–8 inches below siding/stucco and slope away.

Bottom line: All three subs created a “perfect storm”: moisture trapped against the wall, concealed termite access, and a bridged chemical barrier. This invites rot, mold, and undetected termite damage.

Fix:

• Remove stucco, foam, and fill to expose at least 6 inches of concrete stem wall above grade.
• Reapply stucco only above grade with proper weep screed (IRC R703.7.2.1).
• Re-insulate exterior stem wall with foam only if a 6-inch inspection gap is maintained at the top (or use interior insulation).
• Re-grade soil to slope away (≥6" in 10 ft), keep mulch ≥8" below siding, and reapply termite treatment if disturbed.
• Consult a licensed contractor or inspector — this is not DIY-friendly due to structural and pest risks.

This is not just cosmetic — it’s a latent defect waiting to fail.