BAsement Cold Air return

[Steve A. Rinner]

Is there an issue with having a cold air return in the basement? Does not seem right.

Your thoughts will be appreciated.

Thanks

[Larry D. Kage]

It shouldn't be within 10 feet of the furnace...

[David C. Macy]

Negative pressure can be created and combustion products can be blown throughout the home.

[Greg Veal]

Steve,
If I am seeing/understanding YOUR picture in total, this particular installation would not be a problem (at least in my area of the country) because of the shear volume of the space, and the placement of the WH in the space in relation to the return air opening in the R/A plenum.
The problem(s) will occur when the owner decides to enclose the mechanical equipment. He/She may or may not know how the changes they make will effect the operation and/or safety after the addition. I've seen obvious professional contractors work, when the made mistakes in their design of the enclosure.

[Keith R. Braun]

Ditto to all of the above, plus I don't advise introducing basement air into the circulation. (No return air in kitchens, bathrooms or basements) Maybe there is not a sufficient amount of R.A. grilles, causing the furnace to run hot - this was the installer's solution.