What is a standard amount that qualifies as 'capital improvement'?
Full Question:
Answer:
In this response, I intend to give legal information, not legal advice. For legal advice, you must consult an attorney who is licensed to practice law in Florida, is free of any conflict of interest, and is available to meet with you regarding the situation.
A capital improvement, in and of itself, is not affected by either the dollar amount of, or the percentage amount of, any capital expenditure. In general, a capital improvement is is defined either by contract or by various state and federal laws, but capital improvement generally is defined as a non-recurring expenditure or any expenditure for physical improvements, including costs for: acquisition of existing buildings, land, or interests in land; construction of new buildings or other structures, including additions and major alterations; construction of streets and highways or utility lines; acquisition of fixed equipment; landscaping; and similar expenditures. It may mean any change, alteration, rearrangement or addition to existing facilities. It is also new construction, acquisition or improvements to sites, buildings, or service systems.
In general, neither the dollar amount nor the percentage amount of a capital improvement is relevant in determing whether a particular expenditure upon an improvement to real property is either an ordinary repair or a capital improvement. That said, the more closely an expenditure approches a total replacement cost of an improvement to real property, then the greater the likelihood becomes that that expenditure may be a capital improvement instead of an ordinary repair.
Your question relates to the meaning or application of the term "capital improvement" in the governing document of a Florida homeowner's association. That specific question about a particular agreement can be fully and appropriately answered only by a Florida attorney who has read the governing agreement in the context of Florida statutory and case law.
Please see the information at the following links:
http://www.myflorida.com/dbpr/re/frec.html
http://www.myflorida.com/
