I have a disagreement with my designer a few minutes ago regarding placing the water heater (gas fired) in the walk out basement of my home.  He states that its not allowed by IBC (heater under living space) and I think he is nuts.  I will resolve but thought I might get a quick comment from some of you.  BTW the house is in New Mexico.

Never heard of that. Here a gas furnace would not be allowed in a Bedroom but are commonly found in basements. Where did he want to put it? Outside?

Thanks thats what I thought.  I have an email in but expect to heard the he is thinking I am using some kind of unvented variety.