lis 217 stemming the tide - LISC

5. PROPERTY CONDITIONThe property’s physical condition, includingcapital needs and deferred maintenance, willaffect its market value and conversion potentialas well as the feasibility of a preservation transaction.PROPERTY CONDITION ISSUES AT A GLANCEIssueWindshield SurveyCapital NeedsAssessmentImplications for Preservation StrategyProvides valuable overview of property maintenance, design, site and neighborhoodissues. May provide clues to predict owner behavior.Needed for property appraisal, assessment of purchase feasibility, rehab planning.Windshield SurveyA review of the property’s exterior, while superficialand incomplete, can provide a valuableoverview of the project's design, overallupkeep, and surrounding neighborhood. It mayalso offer clues about the owner's intentions.Without a direct view from the street, the realitybehind the written reports may be obscured.Building Style. Is the property a mid-rise, lowrise,townhouse, or garden-style development?Single or scattered site? Are there privateentries or hallways? These features may affectoperating costs as well as marketability.Curb Appeal. Is the property attractive? Howdoes it compare with the competition?Site. Does the site have, or lack, any notableamenities—community room, playground, parking,laundry?Units. What is the mix and distribution of unittypes and bedroom sizes? Are all family unitslocated together? What amenities are includedin the units (e.g., dishwasher, AC, cable TVaccess, updated appliances)?Accessibility. Is the site handicap-accessible?Are there accessible units?Deficiencies. Are there obvious maintenanceissues? Evidence of potential structural or environmentalproblems?Fix-Up. Are there obvious signs of fix-up? If so,the owner may be preparing the property forsale or conversion.Overall Condition. What is the property's overallcondition in relation to the neighborhood? Abad property in a good neighborhood may be ahigher conversion risk than a good property inbad neighborhood.Improvement Potential. What is the potentialfor improvement? Is there space to add a communitycenter or additional parking? Whatwould it take to match the condition of comparablemarket properties?Capital NeedsEvery property has building systems with finiteuseful lives, necessitating repair and replacementover time. Changing code requirementsand livability standards also require periodicupgrades and capital improvements. Capitalneeds may reduce the value of the property andaffect its conversion potential as well as thefeasibility of a preservation transaction.39chapter four: Researching the Property: Towards a Preservation Strategy 45