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This is the bottom of the vent pipe that the water heater vent connects to about 10" above the bottom of the pipe. It is definitely missing a piece but how would I report this? This is not safe at all, right?
No it is not safe,products of combustion spilling into house.I would definitely flag this and make the owner or occupants of house aware of this.
Report it for what it is.
Missing portion of vent pipe.
Allowing combustion bi-products to enter the living space. - safety hazard
Recommend qualified professional to correct.
This installation is frequently for clean-out purposes and should have a cap with a handle installed.