Capital Improvements and Special Assessments

The Mayor’s Office of Housing and Community Development (MOHCD) encourages homeowners to maintain the quality of their housing units under Below Market Rate (BMR), City Second loan programs (CSLP) and former San Francisco Redevelopment Agency (SFRA) programs.
 
Homeowners may only begin claiming capital improvements made ten (10) years after the unit was originally occupied. The general guidelines of capital improvements are based on the definition of capital improvements provided by the IRS: add value to the property, prolong its useful life, or adapt it to new uses or any structural changes to a building. For specific guidelines and requirements of the eligible capital improvement costs, staff shall refer to the Capital Improvements Policy in the City loan documents that govern the individual unit, as these polices may be amended from time to time for the purposes of resale affordability.
 
Furthermore, Homeowner’s Association (HOA) initiated special assessments are considered capital improvements and will be added to the resale price of the home. Regular HOA dues are not eligible under this policy.
 
Required Documentation
 
Capital Improvements
 
For capital improvements consideration, please submit the following:

  • A list of capital improvements with description using the Office spreadsheet iconCapital Improvements Spreadsheet provided by MOHCD.
  • The receipt and invoice for each eligible improvement.
  • Proof of Payment for each listed capital improvement, such as a cancelled check, bank account statement or credit card bill statement.
  • A copy of site or building permits, if required by SF Department of Building Inspection.
  • Contractor’s license number for Projects exceeding $500.
  • Photos of "before remodel" and "after remodel" (recommended).

HOA Special Assessments

For special assessment consideration, please submit the following:

  • A list of special assessments with description using the Office spreadsheet iconCapital Improvements Spreadsheet provided by MOHCD.
  • An Invoice from the homeowner’s association verifying the amount and date the assessment was billed to the homeowner.
  • Proof of Payment for each listed special assessment, such as a cancelled check, bank account statement or credit card bill statement.

For any submission, MOHCD reserves the right to request additional documentation as deemed appropriate.

Capital Improvements Policy
 
Once the housing unit becomes eligible for capital improvements credit, homeowners may begin submitting documentation of completed work in accordance with the timeframe requirement outlined in their capital improvement policy that regulates their unit.
 

Capital Improvements Policies under homeownership programs are listed below:

2013 Inclusionary Housing Program

2007 Inclusionary Housing Program

1992 Inclusionary Housing Program

BMR Limited Equity Homeownership Program (SFRA – LEHP)

City Second Loan Program

 

 

 

Contact Information:
Capital Improvements Request
Mayor’s Office of Housing and Community Development
1 South Van Ness Avenue, 5th Floor
San Francisco, CA 94103
(415) 701-5500