Property Condition Assessments
EFA conducts Property Condition Assessments (PCA) in accordance with the ASTM E2108 Standard.
EFA’s Due Diligence Services include:
- Debt & Equity Side Property Condition-Physical Needs Assessments (PCA/PNA)
- HUD Project Capital Needs Assessments (PCNAs)
- Green PCAs & Rental Assistance Demonstration (RAD) PCAs
- Construction Loan Monitoring
- Building Energy Use Disclosure (California AB 1103, City of San Francisco, etc)
EFA provides these services for many different financial institutions including commercial banks and lenders, life insurance companies, HUD, Fannie Mae, and Freddie Mac. EFA’s staff of licensed Architects and Engineers has the experience required to accurately diagnose building conditions and prepare accurate reports and cost estimating. Reports can be tailored to a client’s specific needs including specialized or in-depth assessment to fit specific situations.
Property Condition Assessments & Physical Needs Assessments
A Property Condition Assessment is typically conducted to report on the condition of a building during a property transaction. The PCA report provides an analysis of current conditions, work that has been deferred, and recommendations for replacement of systems during the evaluation period. The report also includes observations on potentially life threatening situations that must be remedied. An important part of the Property Condition Assessment is the Immediate Repairs List and Replacement Reserves that help the client understand how the condition of the building will impact the financial pro-forma.
The PCA Scope of work typically includes the following:
- Construction plans, repairs/renovation proposals, records of capital expenditures and historical repairs, and estimated budgets for improvements.
- Site features including parking and flatwork, landscaping, site topography, and drainage.
- Roof coverings, flashing, expansion joints, drainage, and parapet walls.
- Building material and finishes including construction framework, foundation, interior/exterior walls and doors, finishes, and windows.
- Mechanical systems including heating, cooling, and ventilation systems.
- Electrical systems including transformers, switchgear, distribution and emergency power.
- Plumbing systems including distribution and waste piping, water heaters, and drainage.
- Conveyance systems including lifts, elevators, and escalators.
- Fire protection systems including suppression systems and alarms.
- Utility connections and refuse disposal.
- ADA accessibility including parking, interior/exterior routing, restrooms, and elevators. Including HUD Section 504 & Uniform Federal Accessibility Standards (UFAS) and Federal Fair Housing Act standards (FFHA).
EFA’s Property Condition Report is a compilation of findings during the analysis and includes the following elements:
- Lists of specific deficiencies classified as immediate or deferred maintenance items and recommended actions with budgetary costs.
- Immediate Needs (Critical) and Short-term (Non-Critical) tables listing life safety and code violation issues as well as short-term repairs required within one year.
- Capital Needs/Replacement Reserves schedule within a client specified term length and budgetary costs.
- Descriptive text describing site components and building construction types, materials, and systems.
- Color photographs depicting major building components and systems, deficiencies, and general property appearance.
HUD Project Capital Needs Assessments
EFA has extensive experience working with HUD Multifamily Accelerated Processing (MAP) underwriting guidelines and preparing Project Capital Needs Assessments (PCNAs). EFA has worked on HUD projects through many different HUD HUBs located throughout the US. EFA’s PCNA reports conform to the HUD MAP Underwriting guidelines and include the HUD-92329 Property Insurance Form and the HUD-92264 Appraisal Report.
A PCNA may also involve an Americans with Disabilities Act (ADA), UFAS, or FFHA reviews, depending on the project type and year constructed. Accessibility issues that are identified are included in the Critical Repair tables.
HUD Programs requiring PCNAs include:
- 223(f) - purchase or refinancing of existing multifamily rental housing.
- 231 - mortgage loans to facilitate the construction and substantial rehabilitation of multifamily rental housing for the elderly and/or persons with disabilities.
- 232 - construction and substantial rehabilitation of nursing homes, intermediate care facilities, board and care homes, and assisted-living facilities.
- 232/223(f) - purchase or refinancing of nursing homes, intermediate care facilities, board and care homes and assisted-living facilities with or without repairs of existing projects not requiring substantial rehabilitation.
- 241(a) - insures mortgage loans to finance repairs, additions, and improvements to multifamily rental housing and health care facilities with FHA insured first mortgages or HUD-held mortgages.
EFA’s trained Architectural staff can perform architectural cost reviews for HUD projects:
- 221(d4) – insures mortgage loans for multifamily properties consisting of single-room occupancy apartments.
Green PCAs & Rental Assistance Demonstration (RAD) PCAs
A Green PCA is typically offered as a supplemental service to our traditional Property Condition Assessments. EFA can provide energy auditing services, US Green Building Council LEED Gap Analysis, and sustainable recommendations to improve standard building systems.
EFA’s staff of professionals is experienced in green building and sustainability issues. Our professionals carry accreditations as licensed Architects and Engineers as well as LEED Accredited Professionals and Certified Energy Managers (CEM). Our team provides practical and cost-effective solutions to help you achieve your sustainability and energy goals.
EFA’s team of experienced professionals enables clients to achieve their energy efficiency goals by offering energy performance assessments and energy saving recommendations. Awareness of energy performance will help customers improve the energy performance of their facilities, leading to improvements to the company’s
Construction Loan Monitoring
EFA provides Construction Loan Monitoring (CLM) services that evaluate a construction project through pre-construction, bidding and award, site observation and job completion. Funding of new construction, land development, building renovation, and adaptive re-use of existing properties present unique risks to lending professionals and real estate investors. In support of our clients, our staff examines documentation, budget and work schedules, investigates compliance requirements, prepares on-site progress and observation reports, prepares disbursements and monitors invoices and draws. EFA’s written reports are well-organized and make for easier, fact-based risk management decisions. EFA has Licensed Professional Architects, Engineers, and Builders on staff.
EFA’s construction loan services include:
- Monitoring of the borrower and/or its general contractor’s compliance with the lender’s construction loan and payment procedures.
- Reports on the adequacy of funds needed to complete the project.
- Reports on the borrower’s cost invoices and review of construction progress against the budget line items. Review of project status reports, draw requests and recommendations for funding.
- Review stored materials and funding requests in accordance with the construction loan documents.
- Submit monthly reports tracking all indirect and direct cost line items.
- Verify payment of property taxes and receipt of lien waivers.
Building Energy Use Disclosure
Energy disclosure regulations are becoming more prevalent in certain areas of the United States. Cities like San Francisco, Austin, Seattle and States like California have now begun to require the disclosure of building energy use as part of real estate transactions or for yearly reporting requirements.
EFA provides energy disclosure reports based on the ASTM E2797-11 Standard Practice for Building Energy Performance Assessment (BEPA). Our team has extensive experience with this new standard as members of our staff were involved with the ASTM work committee that created this standard.
The purpose of the BEPA is to document a building’s energy use, identify the different ranges of building energy use and costs, and provide a pro forma energy use and cost based on different occupancy characteristics of the building.
A typical BEPA study has many similar components to a PCA including:
- Site Visit - The building and its energy consuming systems are observed and documented and interviews are conducted with site representatives to further understand building characteristics, occupancy and use patterns, and energy sources.
- Interviews - With site representatives, property managers, owners, and other key contacts.
- Record collection - All pertinent data is compiled including energy bills, building plans, occupancy characteristics, and usage information.
- Records review and analysis - The data is compiled and normalized for the BEPA format.
- Report - A completed report is presented with key findings and information related to the buildings energy use.
The BEPA report format is a standardized tool for building owners to show compliance with regulatory energy disclosure requirements.