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Just bought a new house and there was a newer addition that had a shallow ditch on all sides. The yard slightly slopes towards the house. I was going move some soil to properly grade, but discovered that the siding goes below grade and there is also foam board below grade surrounding the foundation walls (not extending above grade). Now, I don't know what to do. In the picture, the top of the cinderblock foundation wall is at the bottom of the siding and plywood with tivek is directly above that. That foam board seems like a bad idea; just asking to trap water between it and the foundation wall. And I know I shouldn't bury the siding below grade, right? Any suggestions to remedy this.

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In my area there has to be 6”or more from the siding to dirt. In cases like this I have dug a trench around the high areas regrading away from the house the best I could. The few times I could not regrade I installed pavers. The requirement here only states 6” yes it should be vertical but is not specified and 6” horizontal will pass inspection.

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