Capital Needs Assessment e-Tool Training for PRAC Providers

Regulation | January 31, 2018 | by Colleen Bloom

PRAC properties seeking to increase their deposits to Reserve for Replacement accounts will, as of February 1, need to have a comprehensive needs assessment (CNA) created and submitted using HUD's new electronic format and online submission process.  HUD has created an online training webinar to provide an overview of HUD's Capital Needs Assessment (CNA) e-Tool and requirements for its use in Project Rental Assistance Contracts (PRACs).

Mandatory use of the CNA e-tool already went into effect as of November 1 for all FHA-insured program application,  For the PRAC programs, however, including Section 202 (or 811) with PRAC assistance (but not an insured mortgage transaction), CNA’s prepared by a needs assessor on or after February 1 must use the new electronic format.

HUD's Office of Asset Management and Portfolio Oversight (OAMPO) has clarified that, for PRAC properties, the only routine submission point for a CNA would be as part of a request to increase the reserve for replacement deposits, made in conjunction with a budget based rent increase.

HUD has announced a new webinar training on Thursday, February 8 at 2 pm EST for Project Rental Assistance Contracts (PRAC) owners. You may register for this webinar at https://www.hudexchange.info/trainings/courses/using-hud-s-cna-e-tool-for-project-rental-assistance-contracts/2320/

According to the HUD online learning platform on HUDExchange, this webinar will provide an overview of HUD's Capital Needs Assessment (CNA) e-Tool and requirements for its use in Project Rental Assistance Contracts (PRACs). Emphasis will be on when the CNA e-Tool is required, obtaining a CNA completed in the e-Tool, reviewing and submitting with the e-Tool, and the resources available to assist CNA e-Tool users.

Additional Resources:

is already available for assessors in completing a CNA using the e-Tool. This training includes a high-level overview of the e-Tool's Separate training functionality, but focuses primarily on the role of PRAC owners in determining when the CNA e-Tool is required, reviewing the e-Tool provided by an independent assessor, and submitting the e-Tool to the Asset Management office.

Read Notice H 2016-18 Implementation of the CNA e Tool: Automating Capital Needs Assessments, and Related Policy Changes for a list of all programs covered.

For more details on the notice and to find links to a series of webinars of usage of the e-tool, see LeadingAge's earlier article on the subject.