By this time, all Agency clients know that we encourage you to invest in—or update—a building condition assessment (BCA). If you are refinancing, your co-op will also need environmental testing and an appraisal from a firm acceptable to the lender you are approaching. What you may not know is that you can count on the Agency to give approval if you want to charge these studies to your capital replacement reserve, assuming it’s big enough.
If your reserve can’t take the added strain, you can pay for these studies through the loan you’re applying for, as long as you list them among the items your co-op wants to finance.
Note that even if you fund the studies through your new loan, the expense will appear on your income statement for the year as an operating expense.