HUDs CNA e-Tool Hands-On Training Office of Multifamily Housing - - PowerPoint PPT Presentation

HUD’s CNA e-Tool Hands-On Training

Office of Multifamily Housing Programs

The CNA e-Tool

…an important step in Multifamily toward a more efficient and consistent underwriting approach …

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Welcome to the Field Office

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Quick Overview

• There are no new rules about when a CNA is

required There are no new rules about how a CNA must be conducted There are, however, new rules about how a CNA must be submitted to HUD Effective November 1, 2017 for FHA mortgage insurance Also used for RAD, Asset Management, and several other programs

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Agenda

9:00 Welcome + Introduction + Orientation Practice Submission The CNA e-Tool Panels and Reports Resource Tour 12:00 Lunch Break 1:00 The Assessment Tool Practice Submission #2 (permitting) The Ask a Question Resource 4:00 End

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Why Are We In A HUD Computer Room?

• So you can practice in the Submission Portal
• This is HUD’s “test environment”, and it’s

available only on HUD computers

– When you submit a CNA in the “production environment”, it is for real – Some functions you’re about to see can be used within the “production environment” prior to actually submitting, though

• So let’s take full advantage of your time in the

Submission Portal today

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The Sample Project

• Hypothetical project

– 1990s market rate project – 3 story, breezeway – 12 unit buildings – 240 units total

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The Planned Transaction

• Existing financing matures in 18 months

Owner wants to upgrade the property, make it much more energy-efficient, and raise rents 223(f) refinancing is planned Rehab budget $4.0 million ($16,628 per unit) Pursuing the Green MIP reduction through LEED Bronze and utility benchmarking

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Your Role

• You are the lender

You have received and reviewed the CNA. You have completed ‘Financial Factors’ and developed an RfR approach. You are ready to submit your 223(f) firm commitment package.

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As the Lender:

• The Assessor emailed you the CNA previously

You have reviewed the CNA and found it acceptable You have developed a Reserve funding approach that works for you and that meets HUD’s requirements You’ve done the Amortization Test Tool to confirm compliance with MAP Guide You want to submit the CNA to HUD

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Log In To Your COMPUTER

(First of TWO separate logins)

• Find your login credentials (on agenda)

– – Enter your COMPUTER username Enter your COMPUTER password

Your computer’s desktop should have a “CNA e-Tool Training” folder, which includes:

– – – “CNA e-Tool Training URLs” (MS Word document) MS Excel files One PDF file

KEEP YOUR LOGIN CREDENTIALS HANDY TODAY!

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If Your COMPUTER Goes to Sleep, You Unlock it With This ID and PW

• Find the Windows Key on your keyboard:

Do Windows-L to lock your computer

– Now unlock it with CTL+ALT+DEL, then enter these credentials again

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Your Practice CNA Submission

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Your Practice Submission, Part 1

Prepare the Assessment Tool [SAMPLE]

• In the “CNA e-Tool Training” folder, find “Bay

View Apartments Assessment Tool sample” Double-click to open it Do a File / Save As, create a short filename that you will remember later (.XLS) Click the “Open Form” button On the “Property Information” Form, create a new property name and random iREMS # Click ‘Update’ Do File / Save

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Your Practice Submission, Part 2

Login to the SUBMISSION PORTAL [TEST]

(This is the SECOND login – to the PORTAL)

• In the “CNA e-Tool Training” folder, find and
• pen “CNA e-Tool Training URLs” document

Click on Submission Portal [Test Environment] Enter the MCNTxx ID and password from your agenda (password is case sensitive!) You should see a Legal Warning; click ‘accept’ at the bottom of the screen. You will see a Main Menu; Select ‘CNA eTool’ Notice you start in the ‘CNA Submission’ tab

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Your Practice Submission, Part 3

Validate the Assessment [SAMPLE]

• Notice you are in the CNA Submission tab

Click the CHOOSE FILE button, then find the Sample Assessment Tool that you saved with the new short recognizable filename. Select that file Click ‘Validate’

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Your Practice Submission, Part 4

You Are Here

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‘Locate CNA’ Looks Like This

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Your Practice Submission, Part 5

Include Attachments [SAMPLES]

• Return to the CNA Submission Tab

Expand the ‘Flags’ Panel Expand the ‘Attachments’ panel

– –

• Attach the Statement of Energy Performance

Attach the Seismic Factors In real life, you would attach other items too, such as photos. We won’t do that now.

Now find the ‘Submit’ button, and the certification wording.

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Your Practice Submission, Part 6

Certification

• –
• Notice the Certification wording at the bottom
• f the window. Also see MAP Guide Appendix

5G.VII.D.3:

I am authorized to bind my firm and to submit Capital Needs Assessments via the web portal for the CNA e-Tool. We have reviewed the Capital Needs Assessment and all relevant attachments submitted with it. [etc.]

Now Click ‘Submit’

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Congratulations

You have submitted a CNA!

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If the CNA Needs to be Revised

• The HUD Reviewer must Return the CNA to you

The Assessment Tool must be revised as needed The Assessment Tool, and all Attachments, must be Submitted again The repair results and Reserve funding schedule can be changed only by revising the Assessment Tool and re-Submitting it Attachments can be revised only by re- Submitting the entire package

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Morning Break

• Be back at…

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The Four Tools in the CNA e-Tool Toolbox

• –
• –
• –

The Assessment Tool (Excel) The Validation Engine (Web)

Open to the public

The Submission Portal (Web)

Open to credentialed users such as lenders

The Reviewer Tool (Web)

Open only to HUD Reviewers and supervisors

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Validation, Submission, Review, Approval

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Exploring Panels and Reports

• We will have a look at the panels and reports

You’ll learn how to work with the panels You’ll learn what the reports contain

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Resource Tour

• CNA e-Tool Home Page

MAP Guide Home Page Instructions for use… User Access Guide(s) Mortgagee Letters HUD Exchange Resources

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Questions?

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The Ask A Question (AAQ) Resource

• Link on CNA e-Tool homepage

HUDExchange.info > Program Support > Ask A Question

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Lunch Break

• Be back at…

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Highlights of the Assessment Tool

• We will explore key aspects of the Assessment

Tool This is a selection of key inputs, not a comprehensive tour. The comprehensive reference is the “Instructions for Use of the CNA Assessment Tool v1.2” (as amended).

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Use the Forms

• Use the Forms rather than the Worksheets

Use the Action Button (Add, Update, Change) Issues with two Excel Workbooks (files) open Save the Assessment Tool periodically, the Action Button does not save the Assessment Tool, and the Forms block the normal Auto- Save process.

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Building the Project Electronically

(Property > Units and Common Spaces)

• Detailed guidance exists in the “Instructions for

use of the CNA e-Tool”

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Components, Alternatives, Recommendations, and Decisions

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Financial Factors Form

• ‘Initial rates’ for inflation and interest are

current and external (e.g. President’s budget, WSJ) (MAP Guide, Appendix 5G, VII.C.) ‘Next rates’ for inflation and interest are long- term average and external (e.g. President’s budget, WSJ) Escalation of annual RfR deposit is up to the Lender but is capped at the inflation rate.

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Duration (spreading)

• Duration (Assessment Tool / Repair Replace

Decision) allows the user to spread out the replacements. Any input in ‘Duration’ spreads the replacements out for that number of years before and after the replacement year. If the RUL is 5, and the Duration is 2, the replacements occur evenly in years 3 (RUL – 2) through 7 (RUL +2)

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Accessibility

FHA Accessibility Requirements

• It’s by building

For properties built 1990-1992 applicability depends on building permit date and

• ccupancy permit date

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Accessibility

Federally Assisted Indicator

• Federally Assisted Indicator (in the

Property tab) This is for 504 compliance Once assisted, always assisted

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Accessibility

RE: Units and Common Spaces

• In the Units and Common Spaces

Mobility accessible unit = 504 and fully compliant Sensory accessible unit = 504 and fully compliant

Public Accommodation (in the Common Spaces sub-tab of Units and Common Spaces)

A common area that’s open to the public, e.g. the leasing

• ffice.

This is for ADA

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Additional Tests

• Is there any test that was done by a third

party (such as a seismic engineer)?

If yes, HUD will expect a corresponding attachment. Examples: structural engineering report, sewer scoping report

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Parking

• Basic entry on the Sites Form

Accessible spaces are in addition to other spaces Some parking is entered on the Site Form Some parking is entered on the Buildings Form Two types of parking are entered on the Units and Common Spaces Form

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The Inspection Sample

• The actual sample is entered on the Inspected

Sample worksheet. HUD recommends determining the sample in advance of the site visit, and also making plans for identifying substitute units when a selected unit isn’t available for inspection. The Validation software checks that the % of units sampled for each building (Flag DU 001) and by the Unit types (Flag DU-009) meet the MAP requirements.

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Other Important Topics

• Building Envelope Alternatives utility usage can

be negative Copy Building Ground Floor Naming the Component IDs Seismic Unit Types Utility Benchmarking

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Afternoon Break

• Be back at…

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Submit CNA with a Flag and Notes

• Step 1—we will upload a CNA with a Severe

Flag, then go to the Assessment Tool and correct the issue, resave, and resubmit.

– Be sure to create a different, random iREMS #

Step 2—we will demonstrate inserting Flag Notes.

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The Ask A Question (AAQ) Resource

• Link on CNA e-Tool homepage

HUDExchange.info > Program Support > Ask A Question

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Training Evaluation Form

• Please complete, your feedback is helpful

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Thank you!

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