What is an HOA capital improvement?
A capital improvement is a major, one-time upgrade to common property that increases its value or extends its life, replacing a roof, resurfacing a tennis court, that kind of project. It’s different from routine maintenance, which just handles regular wear and tear.
Why does an HOA capital improvement matter?
Capital improvements are usually the biggest single expenses a community faces, and they’re exactly the kind of cost that turns into a painful special assessment when a board hasn’t planned for it years in advance.
When You’ll Run Into This
These projects tend to surface the moment a reserve study flags something as nearing the end of its useful life. Our guide to how HOA reserve funds protect community finances covers how boards fund improvements like this without a surprise bill.
