Capital Improvement

What is a capital improvement in an HOA?

A capital improvement is a major upgrade or addition to common property that increases its value or lifespan, like replacing roofs or resurfacing a tennis court. Unlike routine maintenance, which addresses regular wear and tear, capital improvements involve one-time investments that are often planned and budgeted years in advance.

Why is a capital improvement important?

Capital improvements typically require long-term planning and are often funded through reserves. They maintain property values and reduce emergency repairs.

How can you use “capital improvement” in a sentence?

The HOA voted to use reserve funds for a capital improvement project to repurpose one of our tennis courts for pickleball.