Capital Improvement Policy

Policy Details

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 resale will be no more than 10% of the purchase price of the home).
• All Capital improvements will be depreciated as applicable according to the National Association of Home Builders/Bank of America Home Equity Study of Life Expectancy of Home Components.
• Owners must receive written approval from JTCAH before beginning the work 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 who 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.

Capital Improvement Standards

Approval Required

Owners must receive written approval from the Housing Department before beginning the work in order to receive credit for the capital improvement. To obtain approval, the Request for Capital Improvement form must be submitted along with estimated costs and drawings, and/or plans, and a narrative of the work to be done. Once the improvement is complete, copies of all receipts for materials and labor must be given to the Housing Department. No credit will be given for sweat equity.

Capital Improvement Request Fee

Applicants for Capital Improvement requests will be charged a fee by the Housing Department in accordance with the Housing Department Fee Schedule.

Workmanlike Manner

All improvements whether approved Capital Improvements or other must be built in a workmanlike manner, and according to Town of Jackson or Teton County building codes. All required permits and completion releases must be obtained from the Town or County. Any owner that does capital improvements without obtaining the proper permits or if it is determined at the Housing Department’s sole discretion that the improvements have not been done in a workmanlike manner may be required to make repairs or remove the improvements and return the Restricted Housing Unit to its original condition.

Approved Capital Improvements

A Capital Improvement is an improvement done to the Restricted Housing Unit for which the homeowner can receive credit. The capital improvement requires an expenditure that either increases the value of the property or extends its life expectancy but is not a luxury item. The term “approved capital improvement” shall only include the following:

1. Fixtures erected, installed or attached as permanent, functional, non-decorative improvements to real property, excluding repair, replacement and/or maintenance improvements. May also include blinds or shutters if approved by the Housing Department.

2. For the benefit of seniors and/or handicapped persons.

3. Health and safety protection devices (including radon).

4. Adding and/or finishing of permanent/fixed storage space.

5. Finishing of unfinished space.

6. Landscaping; Adding trees, shrubs, lawn, patio, walkways, or sprinkler systems.

7. Decks and balconies, and any extension thereto.

8. 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 Restricted Housing Unit. 

Improvements Not Approved for Credit

Permitted capital improvements shall not include the following:

1. Jacuzzis, saunas, steam showers and other similar items.

2. Upgrades or addition of decorative items, including lights, window treatments and other similar items.

3. Upgrades of appliances, plumbing and mechanical fixtures, carpets and other similar items included as part of the original construction of a unit, unless replacement is shown to improve the lifespan of the component or the long-term affordability of the Restricted Housing Unit.

4. Repair and Maintenance Items – a repair or maintenance item is an expenditure that restores a property to a sound state.