Rehoboth Bay Homeowners' Assoc v. Hometown Rehoboth Bay

Summary

The court held that the Bulkhead Stabilization project qualified as a capital improvement or rehabilitation work under the Rent Increase Justification Act because it was a substantial, nonrecurring project that enhanced and extended the useful life of the community's bulkhead. The court also held that a community owner may recover the cost of a capital improvement through rent increases, but may not continue carrying that capital-improvement component into later years after the cost has been fully recovered. The Superior Court's judgment was therefore affirmed in part, reversed in part, and remanded. No separate opinions were filed.