Massachusetts capital improvements: What your association should know

What is a capital improvement?

A capital improvement is a project that adds value, extends an asset’s useful life, or adapts property for a new use. For community associations, capital improvements in Massachusetts may include things like replacing major building systems, adding amenities, improving accessibility, or upgrading common areas.

They are generally different from routine maintenance, which keeps existing property in working condition without substantially changing it.
 

Examples of capital improvements

Common examples of capital improvement projects in Massachusetts include:

• Roof replacement: Installing a new roofing system rather than completing a small repair
   
• Building systems: Replacing boilers, chillers, elevators, or major electrical equipment
   
• Accessibility: Adding ramps, lifts, automatic doors, or accessible common areas
   
• Energy upgrades: Installing solar panels, heat pumps, insulation, or efficient building controls
   
• Amenities: Adding or substantially renovating a pool, clubhouse, fitness room, or playground
   
• Security: Installing new access controls, security cameras, or entry systems

Capital improvements vs. repairs

A repair restores an existing component to working condition, while an improvement generally adds something new or expands the common elements.

For example, patching a roof leak may be a repair, while adding a new rooftop deck is generally a capital improvement. The distinction can affect accounting, owner approval, funding, and how the association’s governing documents apply.
 

Who approves capital improvements?

Approval depends on the property type, governing documents, project, and funding method:

• For condominiums, payment rules depend on how many unit owners approve an improvement to the common areas. If 50%–75% agree, only the owners who agree must pay. If 75% or more agree, the cost may be shared by all owners as a common expense (Mass. Gen. Laws ch. 183A, §18).
   
• Non-condominium HOAs do not have one statewide rule, so approval usually depends on their declaration, bylaws, and other governing documents.

Learn more about the differences in our guide to MA condo laws.
 

How to plan capital improvements in Massachusetts

Every property and association is unique, but there are a few general steps to consider when planning a capital improvement:

1. Assess the property: Begin with a clear review of the building or common area so the board understands what needs attention and how urgent the work may be.
    
2. Define the project: Use professional reports and site findings to create a clear scope. This helps contractors price the same work and makes proposals easier to compare.
    
3. Build the budget: Estimate the full project cost, including design work and possible contingencies, then identify how the association may fund it.
    
4. Confirm approvals: Review the governing documents and applicable law with help from qualified legal counsel to understand whether the board can approve the work or whether owner approval is needed.
    
5. Plan for resident impact: Consider how construction may affect access, parking, utilities, or daily routines, then communicate those changes before work begins.

How to fund capital improvements in MA associations

1. Use your reserve funds

   You may be able to use your reserve funds for certain capital improvements. However, reserve funds typically have restrictions around what they are used for. Your governing documents should provide clear guidelines on when and where they can be spent. A current reserve study can help the board confirm whether the project was anticipated, how much has been set aside, and whether using those funds could leave the association short for other upcoming repairs.
   
   Learn more in our guide to 2026 condo reserve requirements in Massachusetts.
    

2. Collect a special assessment

   If your reserves are insufficient to pay for what your community or building needs, this may mean levying a special assessment, an additional HOA fee that helps finance the project's cost. While a special assessment allows the community to avoid taking on debt, it is also the least popular option among homeowners.
   
   Large, unexpected assessments can create hardship for residents, who may challenge the decision or file a lawsuit against the community for neglecting its fiduciary responsibilities. Before imposing a one-time special assessment on your community, check your governing documents and consult with your legal counsel to support compliance with Massachusetts HOA laws.
    

3. Association loans

   An association loan can spread the cost of a major project over several years, which may be more manageable than a large one-time assessment. For communities managed by FirstService Residential, our affiliate company FirstService Financial can help explore financing options and support the application process.

   "One of our communities needed a loan for an unexpected project. Working with FirstService Financial’s recommendations, they were able to borrow $850,000 at a great interest rate and with only $500 in closing costs.
   
   The process took less than 30 days, start to finish, and the board was pleased to have this option rather than depleting their reserves or levying an assessment."
   
   Jorge Dominguez, regional director at FirstService Residential

How can associations prepare for unexpected costs?

Even a carefully planned project can uncover hidden damage, code requirements, material delays, or price changes. A contingency amount gives the association some room to respond without immediately changing the funding plan.

The board should also agree on how change orders will be reviewed and approved. Clear authority, organized records, and regular financial updates can help prevent a project change from becoming a larger source of confusion.
 

How FirstService Residential can help

Managing capital improvements in Massachusetts involves more than hiring a contractor. A professional management team can help boards organize inspections, proposals, budgets, HOA meetings, invoices, board communication, and project records.

FirstService Residential works alongside boards and their engineers, attorneys, financial professionals, and a network of trusted vendors. This coordinated support helps keep the project organized, residents informed, and everyday community operations moving while the project is underway.
 

About FirstService Residential

As North America’s leading property management company, FirstService Residential supports Massachusetts board members and owners with local expertise backed by national resources. Our teams help with meetings, recordkeeping, financial management, resident communication, and 24/7 customer care.

This way, boards and owners can focus on long-term goals instead of day-to-day administration.

Contact a member of our team today to learn more about how we can serve your community.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.