5.10.3 Capital Needs Assessment

A. Except for properties receiving new tax credits, a CNA based on existing conditions is required for all applications submitted under Sections 223(a)(7) and 223(f). The Lender must retain a qualified Needs Assessor who must complete the assessment in accordance with Appendix 5, Section A.5.7 not earlier than 180 days prior to the application for Firm Commitment. The CNA prepared for properties receiving new tax credits should be prepared to describe future replacement needs consistent with the procedure described in Section 5.6.2.A.4.

B. A previously completed CNA may be accepted if:

1. It is dated not more than three years prior to the date of application for Firm Commitment;

2. The MF Regional Center/Satellite Office Director approves the use of the existing CNA for purposes of the application;

3. The CNA contents and scope conform to the requirements of Appendix 5, Section A.5.2 and Section A.5.7, and the CNA is prepared in the CNA e-Tool; and

4. The mortgagor and Lender are required to provide a new CNA not later than 10 years after the date of the CNA accepted with the application.

B. If the date of the CNA is more than 180 days from the submission date of an acceptable Firm Commitment application, HUD will return the CNA to the Lender and the Lender must order an updated CNA. The Needs Assessor must re-inspect the subject property, updating any structure and/or site conditions observed, and submit the new CNA in the CNA e-Tool.

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Chapter 5 Architectural and Construction Analysis 5.10 Standard Processing for Section 223(a)(7) and 223(f)

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