A Capital Needs Assessment (CNA) can provide a number of benefits for owners and developers of HUD multifamily loans, including the HUD 221(d)(4), HUD 223(f), and HUD 223(a)(7) programs, as well as the HUD 232 loan for seniors healthcare properties. These benefits include:
Estimating the future costs of property maintenance
Determining the cost to repair any parts of a property that must be fixed urgently
Calculating the replacement reserve requirements for a loan
Checking the condition of a property to ensure that any critical maintenance issues have been addressed
Re-adjusting the property’s replacement reserve requirements if needed
For more information, please visit www.hud.loans/hud-loans-blog/what-is-a-capital-needs-assessment and hud221d4.loan/hud-221-d4-faqs/cna-capital-needs-assessment-for-hud-221d4-loans.