Common use of Owner Improvements Adjustment Clause in Contracts

Owner Improvements Adjustment. To help assure continued affordability to subsequent Transferees, no price increase or other reimbursement will be allowed for property improvements made by the Owner. The Owner is of course free to make improvements for the Owner's benefit and enjoyment, but the Owner will not be compensated for such improvements upon sale of the property. The Community Development Director or Director’s designee may consider, on a case-by-case basis, exceptions to the policy against price increases for property improvements. The minimum cost threshold for exception consideration is $2,000 and the following shall apply: 1. The improvements must be new, permanent and substantial (maintenance repairs shall not be considered). Only new permanent and substantial improvements to the kitchen and/or bathroom(s) or upgrade of flooring shall be considered. EXAMPLE 2. Improvements that are considered decorative, luxury, nonessential, or maintenance shall not be considered. Examples include, but are not limited to painting, wall coverings, window coverings, replacement of carpeting, and lighting. 3. Owners are required to contact the City to obtain program policy regarding owner improvements prior to the commencement of work. 4. Owners must document that improvements will be completed with all required City permits and that the improvements meet the requirements imposed by their Homeowners Association and recorded CC&Rs. In order for the City to consider an Owner’s request for an exception to allow for a price increase for improvements made by the Owner, the Owner must submit the following documentation: a. Before and after photos; and b. Proof of payment for the work that was completed, such as paid invoices or receipts; and c. A copy of any necessary permits, if required; and d. An approval letter from the HOA, if required The allowed price increase for approved improvements shall not exceed the lower of the following: 1. Fifty percent (50%) of the actual out-or-pocket cost of approved improvements paid by Owner (as verified by paid receipts); or 2. Ten percent (10%) of the Maximum Sale Price as calculated at the time of Owner’s request and prior to improvements. The allowed price increase for approved improvements shall only be added to the owner’s calculated Maximum Sale Price upon resale and not for a refinance.

Owner Improvements Adjustment. To help assure continued affordability to subsequent Transferees, no price increase or other reimbursement will be allowed for property improvements made by the Owner. The Owner is of course free to make improvements for the Owner's benefit and enjoyment, but the Owner will not be compensated for such improvements upon sale of the property. The Community Development Director or Director’s designee may consider, on a case-by-case basis, exceptions to the policy against price increases for property improvements. The minimum cost threshold for exception consideration is $2,000 and the following shall apply: 1. The improvements must be new, permanent and substantial (maintenance repairs shall not be considered). Only new permanent and substantial improvements to the kitchen and/or bathroom(s) or upgrade of flooring shall be considered. EXAMPLE. 2. Improvements that are considered decorative, luxury, nonessential, or maintenance shall not be considered. Examples include, but are not limited to painting, wall coverings, window coverings, replacement of carpeting, and lighting. 3. Owners are required to contact the City to obtain program policy regarding owner improvements prior to the commencement of work. 4. Owners must document that improvements will be completed with all required City permits and that the improvements meet the requirements imposed by their Homeowners Association and recorded CC&Rs. In order for the City to consider an Owner’s request for an exception to allow for a price increase for improvements made by the Owner, the Owner must submit the following documentation: a. Before and after photos; and b. Proof of payment for the work that was completed, such as paid invoices or receipts; and c. A copy of any necessary permits, if required; and d. An approval letter from the HOA, if required The allowed price increase for approved improvements shall not exceed the lower of the following: 1. Fifty percent (50%) of the actual out-or-pocket cost of approved improvements paid by Owner (as verified by paid receipts); or 2. Ten percent (10%) of the Maximum Sale Price maximum affordable sale price as calculated at the time of Owner’s request and prior to improvements. The allowed price increase for approved improvements shall only be added to the owner’s calculated Maximum Sale Price upon resale and not for a refinance.