Capital Needs Assessments
The Capital Needs Assessment will:
- Review the physical condition of each site and structure within the development.
- Determine the capital improvement needs of facilities, equipment, systems and structural elements over a 15-year period, including non-dwelling components such as parking lots, landscaping, and common areas.
- Incorporate resident and staff concerns and recommendations with regard to capital improvement needs.
- Estimate the projected costs of recommended capital improvements, major repairs, and replacement of appliances, taking into account such variables as regional price differences and standard rate of inflation.
The On-Site Inspection will:
- Evaluate the overall condition of the site and structures and to identify deficiencies involving life safety, replacement, and maintenance issues.
- Include the review each representative type of rental unit sufficient to identify individual interior improvement needs
- Include a review of all common areas and building exteriors.
- Incorporate information from blueprints, project manuals, personal recollection and other forms of historical data.
The Written Review will:
- Present work items as they relate to the current status and condition of the property.
- Incorporate descriptive text with supporting spreadsheets, graphs and summaries.
- Include Site Conditions, Interior and Exterior Architectural Elements, Mechanical & Electrical Systems, and Dwelling Units.
- Reserve first priority for those expenditures that benefit the health and safety of tenants.
- Assign second priority to expenditures for previously deferred cost of maintenance or replacement.
- Give third priority to those expenditures that would help to reduce operating expenses.
The Written Review will also:
- Project the anticipated repair or replacement costs, with inflation, to assist in developing an appropriate budget.
- Project major maintenance expenses as well as capital expenses for replacement and improvements.
- Forecast the year-end amount of the Replacement Reserve for each year based upon the anticipated funding structure and expenditures.
- Include a schedule of forecasted expenses entitled “Exhibit I – List of Work Items” which lists the anticipated year that replacement or maintenance is to be performed.
- Include as Exhibit II a “Yearly Cost Form Summary” showing the annual expenditures for the term of the report.