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Multifamily

Capital Maintenance Plan Requirements

During the term of the Loan, Borrower must maintain a written capital maintenance plan (CMP) for the Project. At a minimum, the CMP must include the following components:
  1. Annual Physical Needs Summary: This summary shall provide an estimate of the repairs, replacements, and significant deferred and other maintenance items that will need to be addressed within 12 months.

  2. Long-Term Physical Needs Summary: This summary shall provide an estimate of the repairs and replacement items beyond the first year that are required to maintain the development’s physical integrity over the term of the Loan, such as major structural systems and interior components that will need to be replaced during this period. Prior to the Loan closing, Borrower shall present to AHFA for review and approval a sample version of the capital maintenance tracking system that it will use over the term of the Loan.

  3. Analysis of Reserves for Replacement: This analysis will provide an estimate of the initial and monthly deposit to the Replacement Reserve Account needed to fund the development’s long-term physical needs during the term of the Loan, accounting for inflation, the existing Replacement Reserve balance, and the Expected Useful Life (EUL) of major building systems. This analysis should include the cost of twelve-month physical needs, but not any work items that would be treated as an operating expense.

*Please note that the Capital Maintenance Plan should be submitted in a size no larger than a legal-sized page. Please do not submit this document in any size larger than legal.