In one sentence
A lender-held reserve funding future major repairs and replacements, sized from the property condition assessment.
The longer version
Also called a replacement reserve, the capex reserve escrows money over time for roofs, systems, and structure so the collateral does not decay. The property condition assessment sets the funding schedule.
Releases against completed work are recurring servicing requests with documentation requirements, effectively small draw packages that repeat over the loan's life.
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