Simply put, a Capital Needs Assessment (CNA) is a road map to understanding the life expectancy and cost of major items needed to maintain a property. Many public funding sources require non-profit organizations to have CNA’s to prove they have the funds to maintain the properties they have. Our inspectors focus on providing a detailed estimation of how much it will cost to maintain the property in the coming years. In this way, our CNA reports outline urgent fixes and how to best budget predicted replacements. In addition, updated CNAs are generally required on a 10-year basis to check the condition of a property, to ensure that any critical maintenance issues have been addressed, and, if needed, to re-adjust the property’s replacement reserve requirements. In higher inflation periods organizations should update more frequently to maintain the accuracy of the CNA.
Why Use Pacific Crest Reserves?
We have been providing CNA to the Pacific NW since 2008. Our state licensed inspectors deliver easy to read reports on the building’s structure and major items in both the interior and exterior. We note specific improvement requirements and the costs associated with these changes. The CNA reports also estimate the life-cycle of various building systems and gives a year-by-year assessment of when each component may require replacement.
How often should a capital needs assessment be done?
Each CNA must be updated every five years for the life of the project. Updated CNAs should be incorporated into the yearly annual budget process as an integral part of capital planning. The assessment should reflect any changes in federal, state or local codes which may impact on future capital needs.
