Capital Improvement Policy
Units that have Special Restrictions or Ground Leases allowing for improvement credits will receive them based on the following policy, approved capital improvements can be added to the maximum resale price at the time of re-sale.
Capital improvements will be allowed as follows:
- For Units with deed restrictions or ground leases allowing for capital improvements, an owner will be allowed a 10% capital improvement allowance (Credit given at re-sale will be no more than 10% of the purchase price of the home).
- All Capital improvements will be depreciated as applicable according to the Marshall and Swift Residential Cost Handbook.
- Owners must receive written approval from JTCAH prior to beginning the work in order to receive credit for the Capital Improvement.
- Once the improvement is complete, copies of all receipts for materials and labor must be given to JTCAH.
- No credit will be given for sweat equity.
- All improvements must be built according to Town of Jackson or Teton County building codes, and all required permits and completion releases must be obtained. Any owner that does Capital Improvements without obtaining the proper permits, may be required to remove the Capital Improvement and return the home to its original condition.
- Upon resale, a site visit by JTCAH staff will also be required before credit is added to the maximum resale price of the unit.
Permitted Capital Improvements
The term Permitted Capital Improvement as used in the agreement shall only include the following:
- Fixtures erected, installed or attached as permanent, functional, non-decorative improvements to real property, excluding repair, replacement and/or maintenance improvements.
- For the benefit of seniors and/or handicapped persons.
- Health and safety protection devices (including radon).
- Adding and/or finishing of permanent/fixed storage space.
- Finishing of unfinished space.
- Landscaping; Adding trees, shrubs, lawn, patio, walkways, or sprinkler systems.
- The cost of adding decks and balconies, and any extension thereto.
Partial credit may be given for upgrade improvements that will increase the life of the component as compared to the original product, or increase the long term affordability of the home.
Improvements Not Permitted for Credit
Permitted Capital Improvements as used in this agreement shall not include the following:
- Jacuzzis, saunas, steam showers and other similar items.
- Upgrades or addition of decorative items, including lights, window treatments and other similar items.
- Upgrades of appliances, plumbing and mechanical fixtures, carpets and other similar items included as part of the original construction of a unit.
- Improvements required in order to repair and maintain existing fixtures, appliances, plumbing and mechanical fixtures, painting, and other similar items.
If replacement, maintenance, or repairs can be shown to increase the lifespan of the component as compared to the original product, or increase the long term affordability of the home, they may be considered for Capital Improvement credit.
- Capital Improvement Credit: A Capital Improvement is an expenditure that either increases the value of the property or extends its life expectancy.
- Repair or Maintenance: A Repair or Maintenance item is an expenditure that restores a property to a sound state.