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Capital Needs Assessments are a financial plan for a multifamily property. It is a plan to address existing deferred maintenance, to modernize, rehabilitate, and discuss funding for future needs. We listen to the needs of our clients and work with them to develop a plan that ensures the long-term success of each multifamily property.
US Housing Consultants works with developers, managers, and owners of affordable housing properties throughout the country on Capital Needs Assessments. We create CNA’s for:
For HUD, Tax Credit, and USDA RD properties, we can put together reports with a fast turn around and at a price that fits within your budget.
Simply put, a Capital Needs Assessment is a road map to understanding the life expectancy and cost of major items needed to maintain a property. Our inspectors focus on providing a detailed estimation of how much it will cost to maintain your property in the coming years. In this way, our CNA reports outline urgent fixes and how to best budget predicted replacements.
Our inspectors deliver reports on the building’s structure and major items in both the interior and exterior. We note specific improvement requirements and the costs associated with these changes. The CNA reports also estimate the life-cycle of various building systems and gives a year-by-year assessment of when each component may require replacement.
We create all of our Capital Needs Assessments using the ASTM E2108-15 standards. We use this standard for several reasons. Firstly, it is the industry standard for the property condition assessment process. Secondly, it is widely accepted by most state agencies and by HUD for 10-year updates. Most importantly, with this standard, we created an easy to read format for our reports. Because no matter how good a plan is, if it isn’t clearly communicated, it cannot be properly executed.
Capital Needs Assessments are critical to the long-term viability of a multifamily property. Our CNA reports show you much more than a list of things to repair. Above all, it is about a plan to fund future replacement and repairs. Revenue at multifamily properties can be limited, so a property must prepare years in advance. Because without a plan for the future, a property runs the risk of being unprepared.
Our capital needs assessments are beneficial for HUD properties and other multifamily projects. With our CNA reports, we make this process as simple as possible. We work with owners and managers of HUD Projects, particularly HUD 202 PRACs and other HUD properties with budget based rents. These properties need Capital Needs Assessments to ensure correct project rents and replacement reserve accounts. Because without gradual annual increases to rents, properties run the risk of falling behind. So far behind that annual rent increases can’t keep up with the deficits.
Recently, HUD lifted the 5% cap on rent increases on HUD 202 PRAC Properties (subject to local HUD office approval), so CNAs are a vital part of ensuring that properties can get the rent increases they need. With the right plan, budget-based rent properties have the opportunity to get rent changes to correct long-standing issues.
Contact us to discuss your next CNA today.