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October 6, 2011

HUD Capital Needs Assessments Require a Different Kind of Approach

By Partner ESI

HUD/FHA Lending Has Been Steady During the Economic Storms of the Past Few Years

HUD’s version of a Property Condition Assessment, called a Project Capital Needs Assessment (PCNA), is a much different beast than the engineering assessments required for other multifamily lenders including Fannie Mae and Freddie Mac.

Low and Slow. HUD/FHA loans will have a lower interest rate but the financing process will take longer, due to a greater level of oversight and coordination. The same goes for HUD Project Capital Needs Assessments. Because many of the integral parts of the PCNA are reliant on various sources of information, it is vital that all parties involved (including the Lender, Appraiser, and Engineering Consultant) coordinate the flow of information, which takes time.

Continue reading the GlobeSt blog here.

About the Authors

Partner ESI

Partner ESI

Founded in 2007, Partner Engineering and Science Inc., is the leading provider of engineering, environmental, energy, and construction consulting for the commercial real estate (CRE) industry. Touching 1 in 5 CRE transactions in the U.S., Partner is widely recognized as the largest and best provider of third-party physical due diligence reports, including Phase I Environmental Site Assessments, Property Condition Assessments, Seismic Risk Assessments, Zoning Reports, ALTA Land Title Surveys, and Construction Risk Management. Partner’s connectedness to the CRE market gives it an unparalleled view into CRE trends and risk management insights. Partner also provides a full suite of consulting services to support the entire real estate lifecycle, including: Geotechnical Consulting; Building Systems Consulting; Capital Management and Project Implementation Support; Environmental Health & Safety Consulting; Energy, Sustainability & Resilience Consulting; and Site Civil Engineering. With a responsive approach scaled for speed and agility, Partner helps clients manage risk, make smart investments, optimize asset performance, and win at their real estate investment strategies. Based in Torrance, Calif., Partner has over 1,400 employees in 40 offices around the globe.

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