HUD’s CNA e-Tool Hands-On Training...Certification • – • Notice the Certification wording at...

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HUD’s CNA e-Tool Hands-On Training Office of Multifamily Housing Programs

Transcript of HUD’s CNA e-Tool Hands-On Training...Certification • – • Notice the Certification wording at...

Page 1: HUD’s CNA e-Tool Hands-On Training...Certification • – • Notice the Certification wording at the bottom of the window. Also see MAP Guide Appendix 5G.VII.D.3: I am authorized

HUD’s CNA e-ToolHands-On Training

Office of Multifamily Housing Programs

Page 2: HUD’s CNA e-Tool Hands-On Training...Certification • – • Notice the Certification wording at the bottom of the window. Also see MAP Guide Appendix 5G.VII.D.3: I am authorized

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 requiredThere are no new rules about how a CNA must be conductedThere are, however, new rules about how a CNA must be submitted to HUDEffective November 1, 2017 for FHA mortgage insurance Also used for RAD, Asset Management, and several other programs

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Agenda9:00 Welcome + Introduction + Orientation

Practice SubmissionThe CNA e-ToolPanels and ReportsResource Tour

12:00 Lunch Break1:00 The Assessment Tool

Practice Submission #2 (permitting)The Ask a Question Resource

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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

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Existing financing matures in 18 monthsOwner wants to upgrade the property, make it much more energy-efficient, and raise rents223(f) refinancing is plannedRehab 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

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You are the lenderYou 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:

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The Assessor emailed you the CNA previouslyYou have reviewed the CNA and found it acceptableYou have developed a Reserve funding approach that works for you and that meets HUD’s requirementsYou’ve done the Amortization Test Tool to confirm compliance with MAP Guide

You want to submit the CNA to HUD10

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Log In To Your COMPUTER(First of TWO separate logins)

Find your login credentials (on agenda)––

Enter your COMPUTER usernameEnter your COMPUTER password

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

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

KEEP YOUR LOGIN CREDENTIALS HANDY TODAY!11

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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 1Prepare the Assessment Tool [SAMPLE]

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In the “CNA e-Tool Training” folder, find “Bay View Apartments Assessment Tool sample”Double-click to open itDo a File / Save As, create a short filename that you will remember later (.XLS)Click the “Open Form” buttonOn 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 2Login to the SUBMISSION PORTAL [TEST]

(This is the SECOND login – to the PORTAL)•

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In the “CNA e-Tool Training” folder, find and open “CNA e-Tool Training URLs” documentClick 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 3Validate the Assessment [SAMPLE]

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Notice you are in the CNA Submission tabClick the CHOOSE FILE button, then find the Sample Assessment Tool that you saved with the new short recognizable filename. Select that fileClick ‘Validate’

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Your Practice Submission, Part 4You Are Here

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‘Locate CNA’ Looks Like This

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Your Practice Submission, Part 5Include Attachments [SAMPLES]

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Return to the CNA Submission TabExpand the ‘Flags’ PanelExpand the ‘Attachments’ panel

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Attach the Statement of Energy PerformanceAttach 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 6Certification

Notice the Certification wording at the bottom of 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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CongratulationsYou have submitted a CNA!

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If the CNA Needs to be Revised

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The HUD Reviewer must Return the CNA to youThe Assessment Tool must be revised as neededThe Assessment Tool, and all Attachments, must be Submitted againThe repair results and Reserve funding schedule can be changed only by revising the Assessment Tool and re-Submitting itAttachments 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

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

Open to the publicThe Submission Portal (Web)

Open to credentialed users such as lendersThe 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

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We will have a look at the panels and reportsYou’ll learn how to work with the panelsYou’ll learn what the reports contain

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Resource Tour

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CNA e-Tool Home PageMAP Guide Home PageInstructions for use…User Access Guide(s)Mortgagee LettersHUD Exchange Resources

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Questions?

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The Ask A Question(AAQ) Resource

• Link on CNA e-Tool homepageHUDExchange.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 ToolThis 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

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Use the Forms rather than the WorksheetsUse the Action Button (Add, Update, Change) Issues with two Excel Workbooks (files) openSave 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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AccessibilityFHA Accessibility Requirements

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It’s by buildingFor properties built 1990-1992 applicability depends on building permit date and occupancy permit date

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AccessibilityFederally Assisted Indicator

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Federally Assisted Indicator (in the Property tab)This is for 504 complianceOnce assisted, always assisted

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AccessibilityRE: Units and Common Spaces

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In the Units and Common Spaces Mobility accessible unit = 504 and fully compliantSensory 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 office.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

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Basic entry on the Sites Form Accessible spaces are in addition to other spacesSome parking is entered on the Site FormSome parking is entered on the Buildings FormTwo 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

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Building Envelope Alternatives utility usage can be negativeCopy BuildingGround 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 homepageHUDExchange.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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