Went to look at an addition for a resi job and found the service in a basement bathroom the H.O. installed sometime years ago. I called wire inspector but have not heard from him yet. Can I wire to this panel or does H.O. need new service?
I had a similar problem. I had a homeowner build a clothes closet around his panel. The inspector made me take out the rod and shelf. He let me slide on the working clearance....I think your bathroom issue is an existing problem that a good inspector will demand be corrected.
Sounds to me like someone did some work without a permit. The electrical inspector may actually be required by law (varies wildly from area to area) to force the homeowner to remove this code violation. Best to wait for the authoritative answer from your AHJ.
Few things are harder to put up with than the annoyance of a good example.