Hi Jeff:
Could you provide a little more information about the residence? Is this a multiple-occupancy setting? If so, I would probably agree with the AHJ, because of water/gas/excessive lint potential. Plus, laundry rooms at larger facilities can get a lot of traffic and a panel/sub panel would be safer out-of-sight. 240.24 (B) exceptions 1 or 2 may apply here, too, which can allows you to locate the panel in a separate, secured section of the basement. Again, more info would help us help you!
