Missing exterior covering?

I recently finished a house and need to know if and how to call this. This is my first encounter with this siding. The main exterior is stucco with EFIS finishes however the base of the exterior appears to be foamboard(?). Normally I see concrete or metal where the base of the exterior meets the soil. Apart from the paint peeling, can you have foamboard as the finish?

thank you all for your input!

The top of the photo is EFIS, below that is a metal flashing, then below that is the foamboard in contact with the soil.

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Looks like insulation panels for the foundation

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I agree with DenisDiVito, and would say it’s probably insulated concrete forms. Just behind the polystyrene should be concrete.

Good paths for bugs and termites, etc.

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So would you call it a defect or is it working as intended?

Looks like it’s been coated in the past, and it’s current condition is not new. So I’d recommend re-sealing it. Here’s a link to a manufacturers manual on the material https://www.huduser.gov/portal/Publications/PDF/icf_res.pdf
I’ve been reading through, and have yet to find any information on finishes. Hopefully this helps you a little.

Yup, worked with ICF on a few projects in the mid 2000’s. Fun stuff.

Here’s a fun video

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