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TALK TO A CERTIFIED, PROFESSIONAL INSPECTOR: 801-694-3171

For Capital Needs Assessments Please Call Jim Oler at 801-694-3207

 

Capital Needs Assessments links to content and resources:

 

Introduction to CNAs
How Realty Check Inspections can help you
Breaking down the CNA
James Oler Curriculum Vitae
USDA Rural Development Statement of Work
USDA RD report format
Fannie Mae Physical Needs Assessment Statement of Work

 

 

 

Introduction to CNAs:
Due to a severe shortage of affordable housing, the US government and government funded agencies are taking steps to ensure a continuous supply of affordable housing by creating new housing projects and upgrading existing properties. This has created the need for Capital Needs Assessments (CNAs), which provide reliable and detailed information of the property’s operating systems, architectural features and overall design as well as a 20 year comprehensive replacement reserve study.

Realty Check Inspections has performed Capital Needs Assessments for more than 400 USDA Rural Development and HUD complexes in 42 states and serviced more than 40 housing authorities nationwide and has become a trusted advisor to housing authorities, finance agencies, developers, and owners. Our capital needs assessments provide a comprehensive report based on the needs of the property and its geographic area. These CNAs were utilized in the management plans, budget recommendations and provided to USDA Rural Development and HUD with requests for repair/replacement of systems or procedures.

Realty Check Inspections' clients include federal and local government organizations, financial institutions, private businesses and multifamily housing organizations. In particular, REALTY CHECK has an extensive relationship with the USDA Rural Development, the Department of Housing and Urban Development (HUD), and many local government housing entities and finance agencies throughout the country.

Realty Check Inspections uses the most up to date pricing guides available, modified to the local area. We make recommendations to upgrade systems where applicable and financially feasible.

Realty Check Inspections was included on the original list of 13 “approved contractors” published by USDA Rural Development in June of 2005 and has completed hundreds of CNAs accepted by USDA Rural Development in many states from Alaska to Louisiana, from California to West Virginia.

Realty Check Inspections has unrivaled experience with USDA Rural Development, HUD, Tax Credit and HUD Mark-to-Market and knowledge of codes and conditions in all geographic areas making us your CNA experts.

 

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How Realty Check Inspections can help you:

Realty Check Inspections’ Physical Condition Assessment reports contain all of the vital information pertaining to structures and their components that are necessary for investment and financing decisions. Our reports provide necessary due diligence for real estate transactions.

While we at Realty Check Inspections have our own extremely strict standards, we also comply with industry standards such as Standard and Poor's and ASTM 2018-01. Our reports go above and beyond the requirements set forth in the industry by providing additional information about the operation of the building and its systems and comprehensive photo layouts.

Realty Check Inspections has the expertise to customize any inspection to suit our clients' specific needs and requirements. Our reports and formats have been accepted by USDA Rural Development http://www.rurdev.usda.gov/rhs/mfh/MPR/MPRhome.htm, HUD, Public Housing Authorities, Property Management Companies, Non-Profit Entities, For-Profit Entities, and Finance Authorities in many areas of the country. Our reports consider current capital needs as well as future capital needs, both near and long term.
For over 20 years, Realty Check Inspections has specialized in providing Capital Needs Assessment and Property Condition Assessments for the Affordable Housing industry. We have become an industry leader in providing CNAs and have earned the respect and acclaim that comes with decades of education and experience.

 

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Breaking down the CNA:

A Capital Needs Assessment is the inspection of a property to identify defects or deferred maintenance of a property’s systems, components, and equipment to provide a cost estimate of maintaining a property over a 20-year time span as well as a 20-year comprehensive reserve study spreadsheet.

Your Realty Check Inspections CNA includes the following:

Site Reconnaissance – A Realty Check Inspections professional will evaluate the age and condition of the property and its components and identify the following: (From Fannie Mae Physical Needs Assessment Guidance)

Critical Repair Items. All health and safety deficiencies or violations of Section 8 Housing Quality Standards (HQS) and HUD REAC Universal Physical Condition Standards (UPCS), including all Federal Lead Based Paint requirements, and FHA's regulatory agreement standards that require immediate remediation if applicable.

Twelve-Month Physical Needs. This will provide a detailed estimate of the repairs, replacements, and significant deferred and other maintenance items that will require attention within twelve months. This includes the minimum market amenities needed to restore the property to a basic standard, making the property attractive to the rental market for which the development was approved. If the standards have changed, due to increased property standards or the expectations of potential tenants, the recommended rehabilitation may include improvements to meet those needs.

Long-Term Needs, up to 20 years. The report includes an estimate of the repair and replacement items beyond the first year that are required to maintain the development's physical integrity and ability to maintain safe and livable housing over a twenty-year period. These items will include structural systems, all building systems (such as heating and electrical systems), appliances, living area furnishings (i.e. carpet, flooring, paint, drywall, lighting and electrical fixtures, etc)

Analysis of Reserves for Replacement. This is an estimate of the needed annual deposit to the Replacement Reserves account to fund the development's long-term physical needs. This analysis includes the cost of twelve-month physical needs, but not the needs that should be treated as an operating expense.

We rely on a comprehensive checklists, visual observations, review of available drawings, and interviews with operations, maintenance, management, and tenants.

Records Review - Available construction drawings and related documentation are reviewed. We also review operations and maintenance procedures with the pertinent personnel, and will assess occupancy levels, tenant input, safety systems and codes, flood plain, and environmental issues.

Property Condition Report – We provide a written report which presents information you need to know in clear and concise language. The property description is comprehensive, supported by photographs and diagrams, and the summary section presents the findings in a user-friendly manner. Supporting data and cost estimates are well organized and easily referenced so you can be confident in your decision and future actions, letting you concentrate on the financial and business aspect of your investment.


In addition to property condition surveys, REALTY CHECK INSPECTIONS can also provide American Disabilities Act (ADA) compliance surveys consulting services nationwide.

*CNAs for USDA Rural Development properties are completed in the current MS Excel report format required by Rural Development (now version 1.5d) and strictly follow the Statement of Work and attachments outlined in the current Un-numbered letter as dictated by USDA Rural Development (now August 20, 2009 ).

 

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James Oler curriculum vitae:

The key to a quality CNA inspection and report is a qualified inspector. Mr. Oler has completed the intensive four-year B.Sc. Building Construction program at Brigham Young University in Utah and numerous Continuing Education courses. In addition, Mr. Oler has over 30 years experience in construction and inspections. He started framing homes at age 16 and worked his way through university as a remodeling contractor. Upon graduation, his emphasis shifted to multifamily buildings and luxury homes. Mr. Oler then joined a large inspection firm where he examined commercial buildings for building deficiencies, safety, and fire hazards.

From there Mr. Oler was recruited as Senior Inspector and Maintenance Administrator for the Alberta Department of Housing. In addition to supervising and training inspectors for many years, he inspected and prepared comprehensive reports on an extensive inventory of multi-family buildings and single-family homes. He has since served as Facilities Management Supervisor for a large school district and as president of Realty Check Inspections since 1992.

Mr. Oler maintains IBC Building Inspector and EPA asbestos inspector and radon measurement certifications, among others. In addition to his B.Sc. in Building Construction, he is a graduate of Inspection Training Associates and Carson and Dunlop’s "hands on" inspection programs. Mr. Oler is a certified member of the American Society of Home Inspectors® (ASHI), Roofing Consultants Institute, the International Association of Building Consultants, IFMA, Environmental Assessment Association, and several other professional organizations. He is certified by HUD’s Real Estate Assessment Center and has conducted over 400 Capital Needs Assessments of USDA Rural Development and HUD multi-family properties in 42 states. Over the years he has personally inspected over 2000 commercial and multi-family properties in various capacities. His practical education and diverse experience enable Mr. Oler to evaluate and report property conditions in the exceptional manner exclusive to REALTY CHECK INSPECTIONS.

 


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