This property was clad with composition wood-fiber siding. Various manufacturers (e.g. Louisiana Pacific, Weyerhaeuser and Masonite) have produced this type of siding, which is made from oriented strand board (OSB) or "hardboard." It is prone to deteriorate and/or fail prematurely due to moisture penetration, especially when the paint coating is substandard or has not been maintained. Failure is typically visible in the form of swelling, cracking, buckling, wafer pops, delamination and fungal growth.
Some areas of siding on this structure showed symptoms described above and need replacement and/or maintenance. Some manufacturers (e.g. Louisiana Pacific) recommend a repair process for this siding where affected areas are sealed with Permanizer Plus, a flexible primer made by Pittsburgh Paint, followed by two coats of 100% acrylic latex paint. This sealant must be applied to the bottom edges using a brush. The face of the siding can be sprayed. The Permanizer Plus sealer isn't required for edges that aren't swollen, cracked or deteriorated, but the acrylic latex should still be brushed on these edges.
Recommend that a qualified contractor evaluate and replace siding as necessary, and/or seal and repaint as necessary. Repairs should be made per the siding and/or sealant manufacturer's installation instructions, and per standard building practices.