PROPERTY CONDITION ASSESSMENTS
The purpose of the Property Condition Assessment (PCA) is to assess the improvements located on a parcel of commercial real estate and identify the physical deficiencies by performing a walk-through survey and conducting research into building department, FEMA and other readily accessible records of the physical history of the parcel and any buildings. The term physical deficiencies means the presence of conspicuous defects or significant deferred maintenance of the property’s material systems, components, or equipment as observed during the field observer’s walk-through survey. The condition of tenant build outs and equipment specific to a process associated with a tenant are excluded from the PCA.
areas inspected during the pca include:
Structure and foundation
Roof surface including flashings, drainage and chimneys
Exterior wall components including doors, windows and signage
Electrical system
Heating system components
Ventilation system
Insulation
Plumbing
Interior components (concentrating on non-cosmetic considerations)
Landscape components including walkways, driveways (excluding sewers) and retaining walls
Fire protection equipment. Detail of installed equipment (excluding equipment testing and fire regulation compliance)
Americans with Disabilities Act (ADA)
Review of parking, entrance dimensions, curb cuts, ramps, restrooms, signage and elevator controls
gENERALLY CONSIDERED OUT-OF-SCOPE CONSIDERATIONS
Although the following are considered out of scope, the services listed can be incorporated into the PCA Report: capital improvements or upgrades; removing or relocating building components, equipment panels, storage containers or debris; preparing engineering calculations to determine building systems adequacy or compliance to accepted design standards or building code; taking measurements to confirm information provided by owner or tenant; reporting on absence or presence of pests; reporting on subterranean conditions; entering or accessing any area that may pose a threat of dangerous or adverse conditions (e.g. walking on high pitched roofs); evaluating the security of a property and protection of occupants; operating equipment on timers; providing and environmental assessment such as potable water quality, and evaluation of compliance with the American With Disabilities Act.
HUD CApital needs assessment (cna)
PCNA Reports are generally required every 10 years through the life of the loan for GHA multifamily applications. HUD documents in Appendix 5g of the MAP (Multifamily Accelerated Processing) Guide the requirements for a CNA. The CNA characterizes the physical inventory and condition of a multifamily property in order to prepare future capital repair and replacement costs for a future period not greater than 10 years. The Standard Estimated Life Table is organized in categories as outlined in ASTM E 2018-08 Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process. Report format and use of the CNA e Tool for Estimated Useful Life are requirements that may differ from the PCA Report requirements.
The Property Condition Assessment and Report is prepared according to the guidance in ASTM E 2018-08 Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process.
After the site visit, the Remaining Useful Life of the building components is determined by subtracting the current age from the Expected Useful Life. The cost for that component will be included in the Reserve Table at the year when Remaining Useful Life is zero. Reserve Tables typically project costs over a 12 year period from the date of the PCA Report. Costs are estimated for replacement of the existing component or as close as possible if the building technology is no longer available.
For additional information on Property Condition Assessments, please contact ASTI’s Mr. Bruce Bawkon at 800.395.2784 or by email.
