5.2.2.2 Needs Assessor Responsibilities

A. The Needs Assessor prepares the CNA for existing improvements in refinance and acquisition transactions. The Needs Assessor identifies and describes all deficiencies and proposed improvements at the property. All CNAs must be reported using the method prescribed by HUD, which is the CNA e-Tool.

B. CNAs must be prepared by an independent third party hired and paid by the Lender[5] .

C. For existing properties, except for substantial rehabilitation, the Needs Assessor must conduct onsite physical inspections, including a representative sampling of units, and prepare the CNA in compliance with the instructions at Appendix 5, Section A.5.7.

D. The Needs Assessor may prepare dimensioned sketches or diagrams when needed to illustrate particular repairs and alterations. However, drawings required to describe dimensioned remedies for accessibility deficiencies must be done by a registered Architect who may be an employee of, or consultant to, the Needs Assessor’s firm.

5 The owner may hire and pay the third party when CNAs are required for Asset Management oversight of properties with no insured mortgage, such as budget-based rent increase events where no servicing Lender is involved.

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Chapter 5 Architectural and Construction Analysis 5.2 Consultant Due Diligence Responsibilities

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E. When a Project Architect and/or a General Contractor are engaged, the Needs Assessor needs to engage with these professionals to accurately reflect the scope of work and costs in the CNA e-Tool (see Section 5.3.3.4).

F. If the proposed application is for a green Mortgage Insurance Premium (MIP) rate or proposes adjustments to underwritten operating expenses resulting from reduced utility consumption, the Needs Assessor must report utility costs rates, estimated utility use of components, and sustainable utilityconserving future replacement alternatives for the project in the CNA e-Tool consistent with Chapter 6.