5.2.1 General

A. HUD requires both the Lender and the Borrower to retain professional consultants with qualifications appropriate for the due diligence required for each loan application. In general, these due diligence requirements are:

1. The preparation of a Capital Needs Assessment (CNA) by a Needs Assessor;

2. The preparation of construction documents (plans and specifications) by a Project Architect for new construction, substantial rehabilitation, and significant alterations at existing properties;

3. The review of construction documents and cost estimates for compliance and acceptability by a Construction Analyst;

4. For certain utility conservation incentive programs, the evaluation of utility consumption and energy conservation measures (ECMs) by an energy professional (see MAP Guide Chapter 6, Section 6.4);

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Chapter 5 Architectural and Construction Analysis 5.2 Consultant Due Diligence Responsibilities

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5. Occasional specialized reports as needed (e.g., structural engineers for seismic analysis); and,

6. The preparation of HEROS Environmental Report and the Phase I Environmental Site Assessment (and Phase II Environmental Site Assessments if needed) required by HUD (see MAP Guide Chapter 9, Section 9.2.4 for qualifications of environmental professionals).