Request a proposal In the field. In the documents. On the record.Long-term capital planning
A forward-looking schedule of major repairs and replacements based on observed condition, expected useful life, program requirements, and the planning period.
Request a proposalIn plain terms
A Capital Needs Assessment (CNA) inventories building components, evaluates condition and remaining useful life, and schedules future expenditures. The report and financial model should explain what must be repaired, what is expected to be replaced, and how those needs relate to rehabilitation funding and reserves.
Scope, requirements & reporting
Fieldwork establishes the condition and quantities behind the forecast. Site improvements, envelope, roofs, mechanical systems, interiors, and unit components need a representative record. Review completed replacements and proposed rehabilitation separately; a system’s calendar age alone does not establish its remaining life.
USDA uses a CNA process addendum, statement of work, review process, and repair/replacement schedule. For transfers, rehabilitation and the subsequent 20-year reserve analysis need to be coordinated. Confirm the current RD-approved scope and inspection sample. The loan servicer’s transfer inspection is a separate step—not the consultant’s sampling requirement.
The e-Tool standardizes assessment data, submission, review, and approval across multiple HUD programs. The applicable program and MAP guidance establish the technical requirements. A useful submission needs consistent component inventories, alternatives, repair costs, replacement timing, financial assumptions, and supporting documents; uploading a narrative PDF alone does not complete that workflow.
RD’s published CNA Addendum, Attachment B, specifies at least 50% of dwelling units for properties below 50 units, 45% for 50–99 units, and 40% for 100 or more units, with representative distribution. HUD MAP Appendix A.5.7 specifies, for the listed existing-property programs, at least 10% for properties built and occupied as new construction within ten years of the CNA and at least 25% for others. Vacancy patterns and adverse conditions can require expanded observation. Verify current program instructions and any applicable modifications before setting the access plan.
Identify which components will be replaced using the rehabilitation budget, then reflect their post-rehabilitation condition in the future forecast. Show any later replacement falling within the analysis period. Keep routine operating expenses distinct from capital items and make inflation and cost-date assumptions visible.
These summaries are not interchangeable scopes. Use the current program documents and lender or agency instructions for the assignment.
Decisions supported
What major capital needs are anticipated and when?
Which items require immediate action versus longer-term planning?
Are reserves and planned capital sources aligned with the expected needs?
How should the plan respond to property goals or program requirements?
Typical scope
The final scope follows the property, transaction, program, client requirements, and information available. Typical elements include:
Process
Confirm the property or project, intended use, reliance parties, schedule, available information, and required deliverable.
Review the documents, identify gaps, and coordinate the people and access needed to complete the scope.
Perform the observations, analysis, interviews, and specialist coordination called for by the assignment.
Separate material findings from background information and state the basis, limitations, open items, and follow-up clearly.
Common assignments
Capital planning to support refinancing, rehabilitation, and long-term stewardship.
Consistent capital-needs information across multiple properties.
A structured assessment prepared around the applicable program and decision.
Frequently asked
No. It is HUD’s electronic assessment and review platform. The relevant program determines the fieldwork and technical scope. The consultant and lender should agree on both requirements before engagement.
No. The governing program or owner sets the period. USDA transfer guidance includes a 20-year replacement-reserve schedule; another lender or program may specify a different evaluation period or financial model.
The published RD addendum specifies size-based minimums of 50%, 45%, or 40%, as described above. Confirm the current approved scope and representative distribution. These are the CNA provider’s requirements, not the separate loan-servicer transfer inspection.
A cost schedule needs supporting observations and assumptions. The required package may include a narrative, photographs, component data, repair tables, and an electronic submission. Confirm all deliverables with the receiving program.
No. Funding constraints do not extend equipment life. They may change financing, phasing, or the rehabilitation strategy, but the report should keep the observed need separate from the available money.
The scopes overlap, but a CNA generally places greater emphasis on longer-range repair and replacement planning, reserve needs, and the requirements of a specific owner, lender, housing program, or portfolio.
The client or applicable program typically establishes the planning horizon. Available property records, observed condition, expected useful life, planned work, and stated assumptions inform the schedule.
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