A Capital Needs Assessment (CNA) is an inspection of the property to provide a cost estimate of maintaining a property over a 20 year time span. The assessment assists the property owner by setting up a budget for the projected amount of years and also informs of immediate needs on the property. By collecting data and inspecting the properties condition, the ‘useful life’ of items is determined. Property owners and non-profit organizations use the assessment to determine future funding needs.
A Project Needs Assessments (PNA) is a variation of a CNA and are formal inspections governed by Fannie Mae and HUD lending guidelines and your lender may require specific forms to be completed. The PNA is an evaluation of a property in terms of existing physical condition, future physical needs, and the estimated timeline and cost of the replacement of systems and components. All of our Physical Needs Assessments are backed by a comprehensive, narrative report of our findings, similar to our standard Commercial Building Inspections.
Pacific Crest Reserves has a staff of licensed inspectors who are also reserve specialists who will perform the assessment tailored to your needs.
Building owners can expect to learn realistic and timely information about their specific building(s), building systems and component life cycles; as well as the total cost of ownership over the life of a building loan or other defined period of time. Capital/ Project Needs Assessment are helpful tools for newly constructed buildings, historic buildings, and everything in between.
What to expect with your Capital/ Project Needs Assessment:
- To identify “keep-up” costs over a specified planning horizon (typically at at 20 years).
- To provide a strategic plan and a tactical plan for the owners / organization.
- To establish the funding liabilities and unfunded liability of the owners / organization.
- To provide a compelling business case to support the establishing of an adequate capital reserve.
The outcome of the CNA is to enable the owners / organization to make an informed decision regarding risks and stewardship of the property.
Call Pacific Crest Reserves to discuss your Capital Needs Assessment.