The room she will be in needs to have 2 replacement windows, painted & carpet. The bathroom needs a walk in shower tub and handicap toilet. She will also need a wheel chair ramp from the front door out to side walk.

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Couple of?'s:
- where is mom going to live while renovation done.
- does she have the funds to personally pay for all the renovations AND for the caregivers she will need for perhaps 3 - 5 years ( based on $15 hr)
- what stage is her dementia, is she likely to actually use all these changes for years & years. Speak with rehab & their social worker about what is the likely reality of her near future needs.
- are you able to physically & emotionally able to provide care & oversight of hired caregivers, and do this without compensation. Or are you planning on going all this solo?
- are there any restrictions or code issues for window & ramps & could there be a problem for those. Ramps have very specific ADA requirements.

If mom should need Medicaid in her future, & the home is yours, the $ she spends on the reno really needs to be clearly for her direct care. Expect to have her payments to the vendors examined as to appropriateness by medicaid. Window replacement & painting probably isn't going to fly as those benefit property owner.

Medicaid tends to follow the guidelines that Medicare has for allowed durable medical putting in a handicapped, high profile toilet isn't covered but a "3 in 1" potty is.
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BTW, make sure the renovations are done in a way that make it apparent that they were not a "gift" from your mother. Keep all your documentation so if she has to apply for Medicaid in the future, the expenditures will be understandable.
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There are some questions I would ask myself. Your mother is 94 and not in good physical health. Her stay at your home may not be long. Would it justify the expense of a walk-in shower? Or do you think that maybe a transfer bench would be good? Is the replacement of the windows necessary or would it improve the heating efficiency? And unless the carpet is really bad, I wouldn't be thinking of it for her room alone. Incontinence can be an issue with many elders, as Babalou mentioned. Rough carpet can also be tricky to use with many walkers.

Painting is good. The ramp is good. The other things I would weigh the cost vs the benefit and the time you anticipate they will be used. And yes, it would be okay for your mother to pay for these renovations, but I would discuss it with her if she is still competent. I would also discuss it with other family members. If everyone is on board, I think the renovations would be fine.
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Be aware that carpeting can become an issue with incontinence, wheelchairs etc. Think about something less trip-inducing and sanitary, just a thought.
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Wait a second, I am not sure about that.

Also, your profile says that she has Alzheimer's, she is in rehab and you have got to get her out of there. Why the big hurry and sense of obligation to get her out of there?

What is she in rehab for?

She needs to stay there until either they are able to get her up and going or it is determined for medical reasons that she needs to be in a nursing home.

How advanced is her Alzheimer's?

If the rehab people are able to accomplish their goals and can release her, they will very likely want to know how handicapped accessible your house is.

If she comes home, will you be able to hire additional caregivers so that the burden of caring for someone with Alzheimer's does not fall completely on you?

My dad has Alzheimer's as well as Parkinson's and he lives in his home with three caregivers 24/7 working in 8 hour shifts.
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As her durable POA, I believe that you can.
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