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A Green Physical Needs Assessment (PNA), sometimes knows as a Green Property Condition Report (PCR) or a Green Property Condition Assessment (PCA) essentially combines a standard PNA and a streamlined energy audit with the goal of providing in-depth information about a building’s condition and how to increase operational efficiency.

Green PNAs may look at water-saving measures, renewable energy use, and potential recycled or otherwise “green” materials for renovations or additions. While these items can increase operational efficiency, “green labeled” buildings can also offer increased marketability, potential rent increases, increases in absorption and decreases in vacancy. Green PNAs are highly customizable based on the client’s capital investment goals.

Incentives for Conducting Green PNAs

Some agencies including the Small Business Administration (SBA), Fannie Mae, and Housing and Urban Development (HUD) offer financial incentives for undertaking a Green PCR or implementing the recommended energy efficiency measures (EEMs).  The Federal Housing Administration (FHA) and Fannie Mae recently launched a new Green Refinance Plus program to allow owners of existing affordable rental housing properties to refinance into new mortgages that include funding for energy- and water-saving upgrades, along with other needed property renovations. Under this program, borrowers must obtain a Green Physical Needs Assessment to identify property improvements that will reduce energy use and operating costs.

Energy Disclosure Requirements

Many cities and states are mandating that building owners disclose their building’s energy efficiency or consumption. This energy disclosure information can also be identified during a Green PNA and/or an energy benchmarking study.

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