Capital Item Replacements

Requirements

For replacement of capital items, you must:

• for refinances, obtain:
  • an itemized list of capital items completed within the last 24 months; and
  • for any capital item replacements you cannot independently confirm were completed, the invoices showing the associated actual costs;
• use best efforts to obtain the PCA Consultant’sPCA Consultant’sIndividual or firm conducting a PCA and preparing a PCA Report. written confirmation that capital items were completed;
• evaluate the Property’sProperty’sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). actual condition, considering:
  • the list of capital items reportedly completed within the last 24 months; and
  • their associated actual costs;
• confirm with the AppraiserAppraiserPerson engaged to estimate a Property’s market value per USPAP. that the actual cost of capital items completed within the last 12 months was factored into the Appraised ValueAppraised ValueAppraiser’s opinion of the Property's market value documented in the Appraisal, on an “as is” basis, unless use of an “as completed” basis is specifically permitted per the Guide. ; and
• document your analysis in the Transaction Approval Memo.