Capital Needs Assessments: A Plan For Maintaining the Future of Multifamily Properties

Capital Needs Assessments are a financial plan for a multifamily property. It is a plan to address existing deferred maintenance, 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 CNAs for:

• Annual budgets
• Funding applications
• Rehab Planning
• Handicapped accessibility issues
• Refreshing Unit Interiors (Cabinets, Appliances, etc.)
• E-Tool Submissions for HUD Properties

For HUD, Tax Credit, and USDA RD properties, we can put together reports with a fast turnaround and at a price that fits within your budget.

What Exactly is a Capital Needs Assessment?

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 outlining 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 a Critical Function of Property Ownership

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 replacements 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.

When it comes to replacement reserves, we know that the owner is ultimately the best resource. So we make sure that our reports are all created with the collaboration of the owner and management agent to ensure that the replacement reserve report creates a realistic plan for the future.

Contact us to discuss your next CNA today.