Replacement Reserve Account or Reserve Fund for Replacement is an account required to be established and maintained with the lender with a specified monthly amount to be deposited, for defraying certain costs of replacing major structural elements and mechanical equipment of the insured property, and for other capital expenditures. The balance in the account is a restricted asset and disbursements can only be made with HUD’s consent. HUD currently requires that a Project Capital Needs Assessment (PCNA) be performed every 10 years to determine, among other things, whether the monthly deposits should be adjusted.