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Capital Needs Inspections

Capital Needs Assessment

A Capital Needs Assessment is an inspection of the property to provide a cost estimate of maintaining a property over a 5 to 20 year time span. The assessment assist the property by setting up a budget for the projected amount of years and also informs of immediate needs on the property. By collecting data and inspecting the properties condition, the 'useful life' of items is determined.

The FANNIE MAE USEFUL LIFE TABLES were developed by Fannie Mae with the latest version dated August 17, 1992. They are intended to provide owners with an estimate of what funds will be required, based on average useful lives, for replacement of components. Placement of percentages will not always coincide with a straight deduction of average age from the anticipated useful life. There are several variables which must be taken into account, i.e., a property which does not sustain a well planned and practiced preventive maintenance schedule as discussed above may have components that will not last as long as the average life span. Conversely, if a property sustains a well planned and practiced preventive maintenance schedule components may be placed in the next higher range. Another factor which may affect placement of percentages in the following table is the condition of the component versus age at the time of inspection, i.e., a component showing more wear than should be present based on age may be an indication of improper installation or abuse.

Sample From the FANNIE MAE USEFUL LIFE TABLE

Site Systems — EXPECTED USEFUL LIFE TABLES (Fannie Mae 8/17/92)
Component Family Development Elderly Development Action = Replace unless otherwise noted
Basketball Courts 15 25  
Built Improvements (Playgrounds / Site Furniture, etc.) 20 20  
Catch Basin 40 40  
Cold Water Lines 40 40  
Compactors 15 15  
DHW Supply and Return Lines 30 30  
Dumpsters 10 10  
Dumpster Enclosures 10 10 Fence Only
Earthwork 50+ 50+  
Electrical Distribution Center 40 40  
Emergency Generator 15 15  
Fencing Chain Link 40 40  
  Wrought Iron 50+ 50+  
  Stockade / Basket weave 12 12  
  Post and Rail 25 25  
Gas Lines 40 40  
Heating Supply / Return 40 40  
Incinerators 50+ 50+  
Irrigation System 30 30  
Lift Station 50 50  
Mail Facilities 10 10  
Landscaping 50+ 50+  
Parking Asphalt 25 25 Resurface
  Gravel 15 15 Resurface
  Concrete 15 15 Resurface
Pedestrian Paving Bituminous 15 15  
  Concrete 30 30  
Retaining Walls Concrete 20 20 Fill Cracks / Repaint
  Masonry 15 15 Fill Cracks / Repaint
  Wood 15 15 Replace
  Stone 15 15 Fill Cracks / Repaint
Roadways Asphalt (Sealing) 5 5 Seal
  Asphalt 25 25 Resurface
  Gravel 15 15 &Resurface (Grade and Gravel)