VSCLT Basics Course
Capital Improvements

Capital Improvements

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Homeowners are in charge of regular home maintenance, but capital improvements need to be approved by the VSCLT Board.

Submit a Capital Improvements Request

What is a Capital Improvement?

Capital Improvements fall into 3 categories:

  • Any project that is expected to cost $2,500 or more

  • Any project that requires permits or approval in some manner from the local government

  • Any project that involves a significant upgrade of the home or its components to a level beyond its original condition at the time of purchase by the homeowner. These projects have a potential to greatly alter the home’s character, size and quality

What are some examples?

Examples include:

  • Installing solar panels

    • Often requires approval from the local government

  • Expanding the driveway

    • Often requires approval from the local government

  • Expanding the home to add a bedroom

    • Expected to cost $2,500 or more

  • Replacing carpet with hardwood flooring

    • Expected to significantly upgrade the home’s character from its original condition

  • Finishing the basement

    • Expected to significantly upgrade the home’s character from its original condition

  • Other significant interior remodeling

    • Expected to significantly upgrade the home’s character from its original condition

  • Constructing a deck

    • Often requires approval from the local government

Why does VSCLT need to approve Capital Improvements?

VSCLT’s mission is to maintain permanently affordable homeownership opportunities through the Community Land Trust model for households in Virginia who earn low to moderate incomes. VSCLT has a vested interest in ensuring the homes in trust are affordable to all future buyers, not just the first homebuyer. In some cases, that mission may come into conflict with a capital improvements request. For instance, VSCLT might deny a request for the installation of an inground pool. It is not because VSCLT does not want homeowners to enjoy their home, but rather because such an improvement might add $10,000 or $20,000 in value to a home. This would significantly decrease the home’s affordability and make resale much more difficult.

The VSCLT Board will handle each capital improvements request on a case-by-case basis and attempt to take all extenuating circumstances into account. For example, if a homeowner wanted to expand the home to accommodate an older relative who has accessibility concerns, VSCLT would absolutely work with the homeowner to approve that request and steward that capital improvement to completion. Please do not hesitate to contact VSCLT if you are thinking about a capital improvement. VSCLT would like to be involved as early as possible to work with homeowners to ensure their safety and enjoyment of the home while maintaining its affordability for generations to come.