Cardinal Capital Management, Inc. — Delivering financial and social value

Capital Needs Assessment

architect and business man discussing building needs

Mark Klann, our Construction Manager, is WHEDA approved to develop 20-year CNAs for use with any tax credit application. Mark will create a detailed plan of what and when your property will need improvement. This analysis is invaluable for all long range planning.

CCM Capital Needs Assessments include the following items:


  1. 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 any/all Federal Lead Based Paint requirements, and FHA's regulatory agreement standards that require immediate remediation.
  2. Twelve-Month Physical Needs. CCM provides a detailed estimate of the repairs, replacements, and significant deferred and other maintenance items that will need to be addressed within twelve months. Includes the minimum market amenities needed to restore the property to a basic standard adequate for the rental market for which the development was originally approved. If the standards have changed over time, either due to increased property standards in the area or upgrade in standard housing expectations, the rehabilitation may include improvements to meet current standards.
  3. Long-Term Physical Needs, up to 20 years.CCM will include 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 term. These items will include structural systems, all building systems (such as heating and electrical systems), appliances, living area accoutrements (i.e. carpet, flooring, paint, drywall, lighting and electrical fixtures.
  4. Analysis of Reserves for Replacement. An estimate of the annual deposit to the Reserves for Replacement account needed to fund the development's long-term physical needs, accounting for inflation. This analysis includes the cost of twelve-month physical needs, but not any work items that would be treated as an operating expense.

View our sample Capital Needs Assessment file.