A.5.7.3.3 Buildings – Building/Construction Types & Replacement Cost

A. The “Buildings” screen requires the preparer to identify specific characteristics of each building. These include the same characteristics and definitions of characteristics that are used on forms HUD-92013 and HUD-92264.

1. Replacement Cost must be estimated for each building and provided by the user. Replacement cost is expressed as dollars per square foot of building area, including all units and common areas. The e- Tool auto-calculates the building areas and apply the replacement cost per square foot estimate to determine the estimated replacement cost for each building.

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Appendix 5 Architectural and Construction Analysis A.5.7 Capital Needs Assessments

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2. The e-Tool auto-calculates the building area by aggregating the square footages of the unit types and common spaces assigned to the building.

3. The preparer is required to justify or support the estimated replacement cost in the comment box labeled “Source of Replacement Cost Data.” The replacement cost estimate for existing buildings should be based on the current cost of replacing the building with current construction practices and assemblies as nearly comparable to the existing building as possible, but not including any cost of replicating obsolete methods, materials, or historic artifacts.

4. For new construction applications, the Lender’s Construction Analyst should use the estimated per square foot cost of construction excluding site improvements.

5. The CNA e-Tool will use this input to generate results for the form HUD-92329, Schedule of Insurable Values.