CSI to the PNA Rescue!
Fannie Mae continues to fine tune the revised Physical Needs Assessment (PNA) requirements issued in October. Several significant changes were introduced in Version 1.1 of the PNA Instructions (released 1/24/14), including changes to the number of units to be walked, modifications to the guidance related to problematic materials and dropping the requirement for a registered engineer or architect to sign the report. At the recent PNA Roundtable held at the MBA CREF Conference, CSI was asked to present the findings of several actual assessments we performed under the new guidelines. Using a strict adherence to the originally issued PNA standard, the annual inflated reserves were well over $400 per unit. CSI has continued to work with Fannie on this issue and is happy to report that Fannie’s expectations for reserve levels has been clarified and tempered.
Based on data available at CREF, CSI is the industry leader in preparation of PNAs under the new requirements. We have been working hard with Fannie to smooth out the kinks and resolve interpretation issues which could negatively impact deal flow. To ensure that you are benefitting from the most recent implementation of the new PNA guidelines, we urge you to make CSI part of your team as you proceed with your next transaction.