FANNIE MAE MULTIFAMILY INSTRUCTIONS FOR PERFORMING A MULTIFAMILY PROPERTY CONDITION ASSESSMENT July 2021 1. Introduction .......................................................................................................................................................................... 1 1.1. Property Condition Assessment ........................................................................................................................................... 1 1.2. Instructions for Performing a Multifamily Property Condition Assessment ....................................................................... 1 1.3. Requirements and Qualifications of PCA Consultant .......................................................................................................... 1 A. PCA Consultant Selection by Lender; Reliance by Users ..................................................................................................... 1 B. PCA Consultant Independent Third-Party Status ................................................................................................................ 2 C. PCA Consultant Qualifications ............................................................................................................................................. 2 D. Field Observer Qualifications ............................................................................................................................................... 2 E. PCA Consultant Insurance Requirements ............................................................................................................................ 3 2. Overview of the Multifamily Property Condition Assessment ............................................................................................. 4 2.1. Base PCA ............................................................................................................................................................................... 4 2.2. Streamlined Property Condition Assessment ...................................................................................................................... 4 2.3. PCA Modules ......................................................................................................................................................................... 4 3. PCA Scope of Work ................................................................................................................................................................ 5 3.1. Phase 1: PCA Preliminary Due Diligence ............................................................................................................................. 5 A. Data Collection and Document Review ............................................................................................................................... 5 B. Special Hazards, Zoning, Building and Fire Code Violations and Regulatory Compliance ................................................ 6 C. Pre-Site Visit Questionnaire ................................................................................................................................................. 6 3.2. Phase 2: Site Visit ................................................................................................................................................................. 6 A. Site Visit Approach ................................................................................................................................................................ 7 B. Interviews .............................................................................................................................................................................. 7 C. Observation of Dwelling Units .............................................................................................................................................. 7 D. Photographic Documentation ............................................................................................................................................. 8 3.3. Phase 3: PCA Report ............................................................................................................................................................. 8 4. Property Condition Assessment Report ............................................................................................................................. 10 4.1. PCA Report Section 1: Executive Summary....................................................................................................................... 10 A. Summation of PCA Findings ............................................................................................................................................... 10 B. Summary of Recommended Repairs and Replacement Cost Estimates .......................................................................... 11 C. Known Problematic Building Materials Identified Table .................................................................................................. 11 D. MBA Standard Inspection Form ......................................................................................................................................... 11 E. Members of PCA Consultant Team ..................................................................................................................................... 11 4.2. PCA Report Section 2: Opinion of Probable Costs - Cost Estimate Schedules for Immediate Repairs and Replacements of Capital Items ............................................................................................................................................................... 11 A. Determination of Probable Costs ....................................................................................................................................... 11 B. Cost Estimates for Immediate Repair ................................................................................................................................ 12 C. Cost Estimates for Replacement of Capital Items ............................................................................................................. 12 © 2021 Fannie Mae. Trademarks of Fannie Mae. Form 4099 – July 2021 Page i 4.3. PCA Report Section 3: Property Characteristics ............................................................................................................... 13 A. Site Components ................................................................................................................................................................ 13 B. Structural Frame and Building Envelope (Architectural Components) ............................................................................ 14 C. Mechanical/Electrical/Plumbing Components .................................................................................................................. 15 D. Interiors; Dwelling Unit Components ................................................................................................................................ 17 4.4. PCA Report Section 4: Moisture and Microbial Growth and Pest Management ............................................................... 18 A. Moisture and Microbial Growth .......................................................................................................................................... 18 B. Pest Management ............................................................................................................................................................... 18 4.5. PCA Report Section 5: Special Hazards, Zoning, Building and Fire Code Violations and Regulatory Compliance ........ 19 A. Specials Hazards ................................................................................................................................................................. 19 B. Zoning ................................................................................................................................................................................. 20 C. Code Violations ................................................................................................................................................................... 20 D. Regulatory Compliance ...................................................................................................................................................... 20 4.6. PCA Report Section 6: Areas of Additional Assessment .................................................................................................... 21 A. Known Problematic Building Materials and Property Design Issues ................................................................................ 21 B. Summary and Evaluation of Historical Repairs and Replacements, Work in Progress, and Planned Capital Improvements .................................................................................................................................................................... 21 4.7. PCA Report Section 7: Report References, Procedures and Limitations ......................................................................... 21 A. References used by the PCA Consultant for Preparation of PCA Report .......................................................................... 21 B. Assessment Methodology ................................................................................................................................................... 21