Definition of major improvements
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- Major Improvements are defined as discretionary expenditures greater than $5,000 for new or substantial improvements to Association assets, where “discretionary”, “new” and “substantial improvement” are the defining factors.
- Expenditures under $5,000 for improvement to community assets and common properties or the purchase of new assets are treated as operating expense.
- The purchase of tangible assets and real estate solely for investment purposes is not allowed per the Association’s Authority to Commit Funds Policy and therefore cannot be Major Improvements.
- A project to repair or replace an existing asset may have both MRR and MI components. In cases where an existing asset is scheduled for replacement and the replacement is a substantial upgrade from the asset being replaced, the Board will determine whether all or a portion of the expenditure is classified as MI.
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