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A very common misconception is that CCTV system installations are considered Capital Improvements. This can muddy the waters when attempting to get approvals for a much needed safety & security system for your community. The law actually states otherwise. CCTV system installations fall under the "Mandatory Changes" clause. The definition of Mandatory Changes is as follows:
Mandatory Changes: Capital improvements that do not require membership approval are (i) those required for safety purposes, and (ii) government mandated improvements.
CCTV cameras are a good idea for the overall safety & security of your community because they contribute to the "Duty of Care" obligation. The definition of Duty of Care is as follows:
Duty of Care: Associations have a duty to exercise due care for the safety of residents and can be liable for failure to take reasonable steps to protect residents from foreseeable criminal activity.
CCTV Cameras are listed among the top ways for associations to fulfill their Duty of Care obligations to the community because the video captured by CCTV systems can be used not only to deter criminal activity, but to assist law enforcement in capturing said criminals if crimes are committed on association property. Overall providing a much safer community environment for your residents to live in.
You may have the one "CPA" homeowner that insists that CCTV is a capital improvement but the homeowner is wrong. They are using a tax-related definition for capital improvement that does not apply to community association reserves. In the business community, a capital improvement is anything that (i) enhances the value of a property, (ii) extends the useful life of an asset, or (iii) adds to its value. If you were to use a CPA's definition, virtually every reserve expenditure is a capital improvement requiring membership approval. This broad definition has no practical application in common interest developments.
Here at CCTV Masters Inc. we are always looking for ways to help our clients & we hope that the information we have just provided is useful to you!
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