CAPS Maintenance and Capital Improvements 3

Question 1

Under the Americans with Disabilities Act (ADA) and Fair Housing Act, what is a 'reasonable modification' in an existing apartment?

Accepted Answer

A structural change a resident can request at their expense to accommodate a disability

Answer

A rent reduction provided to disabled residents

Answer

A landlord-funded upgrade to common areas

Answer

An exception to pet policy for service animals

Question 2

What is the role of a preventive maintenance (PM) schedule in reducing long-term capital expenditures?

Accepted Answer

Regular PM extends equipment life, delaying costly replacements and reducing emergency repair frequency

Answer

PM schedules increase short-term operating costs with no long-term benefit

Answer

PM eliminates the need for capital reserve funds

Answer

PM schedules are primarily for regulatory compliance purposes

Question 3

A portfolio property has aging elevator systems requiring replacement. How should the CAPS manager fund this capital project?

Accepted Answer

Draw from established capital reserves or arrange a capital improvement loan

Answer

Raise rents immediately to cover the full cost

Answer

Defer the project until the next fiscal year regardless of safety condition

Answer

Charge all current residents a one-time special assessment

Question 4

What is the difference between a 'unit renovation' and a 'value-add renovation' in multifamily portfolio strategy?

Accepted Answer

Value-add renovations are specifically designed to justify rent premiums and improve asset value; unit renovations may be purely cosmetic or maintenance-driven

Answer

Unit renovations are limited to kitchens; value-add renovations include all rooms

Answer

Value-add renovations are funded by residents; unit renovations are owner-funded

Answer

There is no material difference between the two terms

Question 5

What is the purpose of a warranty management program in a multifamily portfolio?

Accepted Answer

To track and exercise manufacturer and contractor warranties, ensuring repairs are completed at no cost during the warranty period

Answer

To offer extended warranties to residents on their appliances

Answer

To insure the portfolio against natural disaster damage

Answer

To manage vendor performance bonds

Question 6

How does a scope of work (SOW) document protect a CAPS manager during a capital improvement project?

Accepted Answer

It defines exactly what work will be done, enabling apples-to-apples vendor bids and accountability during execution

Answer

It guarantees the project will be completed on time

Answer

It transfers liability from the owner to the contractor

Answer

It satisfies local permit requirements automatically