title bar

Helping you Streamline the HUD CNA e-Tool Process

Download the current version of the CNA e-Tool here: https://www.hud.gov/program_offices/housing/mfh/cna/atu

Validate the CNA e-Tool here: https://webapps.hud.gov/CNAeTool/faces/CnaValidation

CNA e-Tool instruction: https://www.hud.gov/sites/documents/INSTRUCTFORCNATOOL.PDF

 

The Value of the CNA e-Tool

The Capital Needs Assessment (CNA) e-Tool automates and standardizes the preparation, submission, and review of a capital needs assessment. As of February 1, 2018, use of the CNA e-Tool is mandatory for all Federal Housing Administration (FHA) multifamily mortgage insurance applications, Rental Assistance Demonstrations (RAD) conversions, and 10-year update capital needs assessments for FHA-insured multifamily properties.

What information does the e-Tool provide?

  1. Insurance Schedule – HUD Form 92329
  2. Apartment Unit Conditions
  3. Financial Factors (Initial Deposit and Annual Deposits over the term)
  4. Assessment Summary Report
    1. Contact information for lenders, owners, needs assessors, energy professionals, and any intrusive testing companies
    2. Summary of the Property
    3. Full 20-year Capital Reserve Table broken down by components (site systems, MEP, structural, common areas, life safety systems, and apartment units)
    4. Critical Needs (Life Safety and ADA)
    5. Non-critical Items (to be completed within 12 months)

 

Helping you Streamline the e-Tool Process

Completing the e-Tool can be overwhelming especially with all the new data that is required.

The delivery of the new Project Capital Needs Assessment (PCNA) Report with e-Tool is 20-25 business days from the date of the site visit.

For properties that are 30 years and older, intrusive testing is now required. Nova recommends, at a minimum, that the electrical breakers, main panels, and switchgears be scanned with an infrared camera to pinpoint any anomalies within the systems that could potentially be a life safety issue to tenants. Nova also recommends that the sanitary sewer cleanouts be scoped for any back-ups, breaks, root intrusion, or other abnormalities within the sewer line. Note that additional testing may be required, based on the construction of the buildings.

Nova can provide the following services for HUD properties:

  1. PCNA Report with CNA e-Tool
  2. Intrusive Testing for buildings older than 30 years
  3. ESA with HEROS Forms
  4. Radon Testing
  5. Lead-Based Paint Testing and O&M Plans
  6. Asbestos Testing and O&M Plans
  7. Energy Benchmarking and ASHRAE Level I, II, and III Energy Audits

 

Information needed at engagement:

  1. Rent Roll: This should include square footage of each unit, whether the unit is vacant or occupied, unit type (1BR/1BA), and building the units are located in
  2. Date of original construction and any rehabilitations
  3. Owner: Name, Address, Phone Number, and Email Address
  4. Lender: Name, Address, Phone Number, and Email Address
  5. Land Title Survey
  6. Completed Questionnaire
  7. Certificate of Occupancy and building permits if the building(s) were constructed between 1990-1992. (This is the transition period of the enactment of the Fair Housing Act established in 1991. Properties constructed within these few years must show when construction began and ended to verify if compliance with the Fair Housing Act was mandatory.)

 

The following items are not required but will assist Nova in completing the PCNA Report and e-Tool:

  1. Floor Plans
  2. Certificates of Occupancy
  3. Elevator, Fire Sprinkler, Fire Alarm, Boiler, Current Inspection Reports
  4. Warranties
  5. CapEx for prior 2-years
  6. Current CapEx
  7. Construction Drawings, if available

 

Changes on the inspection samples:

Needs assessors are now required to look at 25% of the apartments located in each building and 25% of each apartment unit type.

Nova always asks that 100% of the property be put on notice in an instance where a specific unit is not available for inspection.

Feel free to reach out to Kristin Tate with any questions or for more information regarding these new guidelines.

 

Author:

Kristin Tate

Regional Account Manager/HUD Program Manager

Nova Consulting Group, Inc.

Office: (281) 622-4664

Cell: (832) 401-8321

Kristin.Tate@novaconsulting.com

 

Facebooktwitterlinkedinmailby feather
Facebooktwitterlinkedinrssinstagramby feather