The U.S. Department of Agricultures Rural Development recently released the following unnumbered letter containing updated guidance for the Capital Needs Assessment (CNA) process.
The need for a CNA report arises from numerous property transactions and is intended to record the specific physical conditions of each multifamily housing property. A properly documented report will become the basis for the establishing of a reserve account that is assigned to address the financing for the physical replacement and repair concerns that are projected to occur for the full duration of the CNA cycle. According to Rural Development, by following the guidance of this letter there is a higher probability of acceptance of the application and a higher probability of successful performance of the property during the CNA cycle.
To view this unnumbered letter, please click here