ENVIRONMENTAL & BUILDING DUE DILIGENCE SERVICES

Building Due Diligence

CNAs / PCNAs / PCAs

Capital Needs Assessments (CNA), Project Capital Needs Assessments (PCNA), and Property Condition Assessments (PCA) are conducted for existing multifamily and residential healthcare facilities.

CNAs & PCNAs are required for HUD-FHA mortgage insurance programs while PCAs are required by Fannie Mae and Freddie Mac. These assessments are based on ASTM E2018-15, however they include additional requirements which are detailed in the corresponding documents noted below:

CNA: U.S. Department of Housing and Urban Development Multifamily Accelerated Processing (MAP) Guide, Chapter 5, using the CNA eTool.

PCNA: HUD Handbook 4232.1, Healthcare Mortgage Insurance Program Handbook.

PCA: Fannie Mae Multifamily Selling and Servicing Guide; and Freddie Mac Multifamily Selling and Servicer Guide.

Our inspection services are customized to fit the scope of work detailed by the insurance program.

Our Needs Assessors perform assessments for projects that require Alterations or Repairs. Substantial Rehabilitation and New Construction projects require architectural reviews and cost estimates based on the borrower’s construction documents.

Architectural & Cost Reviews

AZ-RI provides pre-construction architectural and cost reviews for substantial rehabilitation and new construction projects. Our team consists of licensed design professionals, professional estimators and needs accessors.

Architectural Reviews: Our architectural reviews evaluate the architectural design, specifications, construction materials, methods, building codes and contract documents as required by the program’s scope of work and lender’s requirements.

Cost Reviews: Our estimators review the construction documents to develop a third party cost analysis, which is used to confirm the reasonableness of the borrower’s costs including design, specification, construction, contract administration and supervision. AZ-RI uses the latest construction cost data from R.S. Means, Marshall and Swift, local vendors and contractors, as well as our knowledge and experience to provide accurate cost reviews.

Construction Progress Monitoring

AZ-RI provides construction progress monitoring for lenders, which includes site visits to review the level of completion, adequacy of materials and workmanship, verify conformance with the provisions of the construction loan agreement and to review the contractor’s payment application.