Last Friday, HUD launched its Capital Needs Assessment (CNA) e-Tool and published its mortgagee letter. For HUD Multifamily stakeholders, the CNA e-Tool will be available for voluntary use beginning January 15, 2017. Starting July 1, 2017, use of the CNA e-Tool will become mandatory for each CNA prepared for a HUD multifamily property. During this six-month phase-in period, participants will receive training and other assistance to gain proficiency with using the CNA e-Tool.
This new tool automates and standardizes the preparation, submission and review of a capital needs assessment. In addition, it supports energy conservation and sustainable housing objectives, resulting in cost savings. The tool also provides a specific method for documenting such savings that can be used by both appraisers in valuation and by underwriters in applying mortgage sizing ratios.
All owners, lenders and third-party due-diligence providers participating in Multifamily programs will be effected. The Department has created instructional guides and other informational resources that are now available on the CNA e-Tool webpage.
The CNA e-Tool must be used for capital needs assessments prepared for all applications for FHA mortgage insurance; Rental Assistance Demonstration and Mark to Market transactions; 10-year update capital needs assessments for FHA insured multifamily properties; and other asset management milestones, such as transfers of physical assets and partial payment of claims.
The policy is live on HUDClips and on the Multifamily homepage under “What’s New.” Questions should be directed to David Wilderman.