---
kind: "section"
citation: "24 C.F.R. § 401.450"
title: "24"
number: "401.450"
heading: "Owner evaluation of physical condition."
url: "https://uscodex.org/cfr/24/401.450"
---

# §401.450. Owner evaluation of physical condition.

- (a) **Initial evaluation.** The owner must evaluate the physical condition of the project and provide the following information to the PAE in a form acceptable to the PAE:
  - (1) All work items required to bring the project to the standard in [§ 401.452](/cfr/24/401.452.md), including any work items needed to ensure compliance with applicable requirements of [part 8 of this title](/cfr/24/part8.md) concerning accessibility to persons with disabilities;
  - (2) The capital repair or replacement items that will be necessary to maintain the long-term physical integrity of the property;
  - (3) A plan for funding the rehabilitation work included in [paragraph (a)(1)](#a-1) of this section, which work must be completed in a timely manner after closing the restructuring transaction, that identifies the source of the required owner contribution of non-project funds; and
  - (4) An estimate of the initial deposit, if any, and the estimated monthly deposit to the reserve for replacement account for the next 20 years.
- (b) **Use of CNA.** An owner may comply with [paragraph (a)](#a) of this section by submitting a comprehensive needs assessment in accordance with title IV of the Housing and Community Development Act of 1992 ([12 U.S.C. 1715z-1a](/usc/12/1715z-1a.md) note) if the CNA:
  - (1) Was completed or updated within 1 year; and
  - (2) **Contains all of the matters required by paragraph (a) of this section.**
- (c) **Reconsideration and modification of evaluation.** If the PAE, after its independent review under [§ 401.451](/cfr/24/401.451.md), determines that the owner's evaluation either fails to address specific necessary work items or fails to propose a cost-effective approach to rehabilitation, the owner may modify its evaluation to satisfy the concerns of the PAE.

## Notes

### Amendments

[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000]

### Authority

Authority: 12 U.S.C. 1715z-1 and 1735f-19(b); 42 U.S.C. 1437(c)(8), 1437f(t), 1437f note, and 3535(d).

### Source

Source: 65 FR 15485, Mar. 22, 2000, unless otherwise noted.

### Amendments

[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000]