What is a Capital Needs Assessment?

A Capital Needs Asessment (CNA) is similar to Property Condition Assessment, but it is specifically formulated to meet the 10-year inspection requirements for HUD/FHA multifamily loans. These include the HUD 221(d)(4), HUD 223(f), HUD 223(a)(7), and HUD 232 (for senior healthcare facilities). The 2023 memorandum is here, and the training tool is linked here.

Several states as well, including require and advise HOA's and apartment communities to perform a regular capital reserve study, with rotating inspections. Our CNA exceeds those requirements.

As with the PCA, the goal of the CNA is to forecast future costs of maintaining a commercial property and identify any urgent repair or maintenance needs.

Often, your maintenance and operations costs can be included with a Capital Needs Assessment (CNA), Project Capital Needs Assessment (PCNA), Physical Needs Assessment (PNA), Property Condition Report (PCR), and RAD Physical Condition Assessment (RPCA), or Physical Condition Assessment (PCA). OM Plans help schools, churches, HOA's, and institutions understand and communicate their building needs in real-time.

Can Your Institution Use a Capital Needs Assessment?

Use this simple questionnaire:

1. Do you have a maintenance plan for every major system on campus?
2. Do you have a ticketing system for repeating building problems?
3. Do you have a written plan for major renovations and capital improvements?
4. Are you certain about the quality of your hotel's infrastructure?

If you answered "no" to any of these four question, a capital needs assessment may well be a good use of your time and resources.

WBTreece Consultants is fully trained and certified to assess multi-family properties in Raleigh, Charlotte, Greensboro, and Wilmington NC, and provide a comprehensive CNA. We even have staff up and down the East Coast. We follow the industry accepted standards of HUD CNA, ASTM E2018 and CCPIA.

Read more about how to get started with a CNA, or download a copy of the ASTM E2018 and CCPIA Standards.