Utilities

Shining Some Light on Architectural Review of Solar Energy Systems

Published on: December 27, 2011 | by Steven J. Tinnelly, Esq.

*New Case Law hoa_solar

More and more homeowners are seeking to utilize the cost-savings and environmental benefits that solar energy systems provide. However, the way in which a homeowner may obtain cheaper and “greener” energy should be balanced against the need for a Homeowners Association (“HOA”) to ensure that such systems will not place additional strain on the Association’s maintenance resources or jeopardize the aesthetic harmony of the community. Civil Code Section 714, a component of the “California Solar Rights Act,” purports to provide for such a balance by imposing additional requirements on an HOA when it evaluates a homeowner application for a solar energy system.

The interpretation of these requirements was central to the ruling in the recent case of Tesoro del Valle Master Homeowners Association v. Griffen. In Tesoro, defendants sought to install a solar energy system at their residence (“the Property”) located within the Tesoro del Valle Master Homeowners Association (“Association”). The dispute arose after the defendants proceeded with installing the solar energy system without the Association’s approval. As is the case with many HOAs, the Association’s CC&Rs prohibited homeowners from performing any “construction, alteration, or removal of any Improvement in the [Association]…without the approval of” the Association’s Architectural Control Committee (“ACC”).

The ruling in Tesoro dealt with many factual and procedural issues regarding the process by which the defendants’ application for a solar energy system was denied by the ACC. However, the most interesting aspects of the holding relate to the court’s interpretation of three issues concerning a HOA’s legal obligations under Section 714 when evaluating an application for the installation of a solar energy system. In general, these issues were:

What factors can establish that, within the meaning of Section 714, a HOA’s CC&Rs and design guidelines allow for an “alternative solar energy system” of “comparable costs and efficiency” that “does not increase the cost or decrease the efficiency” of the proposed system?
May a HOA consider the aesthetic impact of a proposed solar energy system in determining whether to approve the application?, and
If a HOA rejects an application for a solar energy system by requesting that the applicant explore a possible alternative solar energy system, is the HOA responsible for designing or proposing such a system?

Electric Vehicle Charging Stations in Your Community?

Published on: November 4, 2011 | by Steven J. Tinnelly, Esq.

In July of this year, Governor Brown signed Senate Bill 209 (“SB 209”) into law. As a result, beginning January 1, 2012, Section 1353.9 will be added to the California Civil Code to restrict an association’s ability to prohibit the installation of Electric Vehicle (“EV”) charging stations (“Stations”). You may have heard of this new law but, like many of our clients and industry partners, wonder what it means for associations and their members. How will the new law ultimately function? Who pays the cost to run the electricity? Must associations permit the installation of Stations on association property? This post discusses the components and criticisms of SB 209 and in doing so addresses some of the questions which have been raised in the wake of its signing.

Governor Signs Bill Prohibiting HOAs from Unreasonably Restricting EV Charging Stations

Published on: July 26, 2011 | by Steven J. Tinnelly, Esq.

In furtherance of California’s energy conservation goals, Governor Brown has signed Senate Bill 209 (“SB209”) which prohibits Homeowners Associations (“HOAs”) from unreasonably restricting the installation of electric vehicle (“EV”) charging staitons in their communities. SB209 will take effect January 1, 2012.

CAI’s California Legislative Action Committee (“CAI-CLAC”) worked with the author of SB209 to ensure that potential issues regarding an HOA’s responsibility and control over these stations would be adequately addressed.
The work of CAI-CLAC was reflected in Governor Brown’s signing message to the California Senate: “The author has assured me that she will pursue legislation that clearly protects the right of [HOAs] to establish reasonable rules for any use of common areas for charging stations.”

The aesthetic concerns over EV charging stations are easy to understand. However, there may be an incentive for a HOA to voluntarily install the stations for use by its members/tenants:
a new revenue stream. Practically every major Southern California utility company offers discounted rates on electricity used to charge EVs. However, according to a recent decision by the California Public Utilities Commission (“CPUC”), “condominium associations that provide electric vehicle charging on the premises as a service to condominium owners…that have not dedicated their equipment for public use” are not regulated as public utilities and therefore not subject to various rate controls when deciding what price to charge for the use of the stations.Thus, a HOA could install the stations for use by its members/tenants and ultimately profit from them.

HOA To Install CA’s Largest Residential Solar Water Heating Project

Published on: May 11, 2011 | by Steven J. Tinnelly, Esq.

More and more Associations throughout California are considering the implementation of alternative energy sources as a mechanism to reduce their operating expenses. An Association in San Jose will begin construction on the largest solar water heating project in the state later this month in an effort to reduce its water heating bills.

The Association is comprised of 320 residential units and uses an average of 10,000 gallons of hot water per day for showers, dishwashers, laundry and other residential purposes. By switching from natural gas to solar energy for their water heating needs, the Association expects to reduce its water heating bills by as much as 60%.

The project will benefit significantly from the new California Solar Initiative (CSI) Thermal Program which provides the Association with rebates valued at over $185,000. These rebates will help offset the costs of installing a total of 183 commercial grade solar hot water collectors to be mounted on five roofs of the Association’s buildings.

Homeowners Associations in California may want to explore the feasibility of implementing alternative energy within their communities. Some CC&Rs may restrict or prohibit these installations; however, any such restrictions flatly prohibiting solar panels and supporting equipment are null and void in California. If you would like some guidance on this issue, contact our offices to discuss with one of our attorneys the options available to your Association.

To read the original article, click here.
To visit the solar system manufacturer’s website, click here.

Should your Association Permit the Installation of Cell Towers?

Published on: April 18, 2011 | by Steven J. Tinnelly, Esq.

A recent story in the Coast News highlights a situation faced by some HOAs: whether or not to permit the installation of cellular towers on Association property.

In Encinitas, a HOA Board is supporting a ballot measure that would grant Verizon a 20 year lease and allow a cellular tower to be placed on one of the Association’s greenbelts. The fees generated by the agreement would total $800,000 in new revenue for the HOA.

Regardless of the financial incentive, some of the HOA’s members fear that the cell tower would negatively impact their health and property values. Though the health-related argument is speculative, the members in opposition to the measure feel that maintaining property values is a legitimate concern.

To read the full story, click here.

Many of our HOA clients have permitted similar types of cellular installations on Association property without experiencing any negative impact on the community. A HOA Board should always take into consideration the views voiced by its membership when determining what is in the best interest of its community. However, HOA Boards and members should not discount how beneficial new revenue streams can be for an Association.

Homeowners Associations Saving Money with Solar Power

Published on: February 23, 2011 | by Steven J. Tinnelly, Esq.

The rough economic times have encouraged Homeowners Associations to look for ways to reduce their expenditures. In an effort to reduce electricity costs, some Homeowners Associations in Arizona are turning to solar power. An article published in the Arizona Republic highlights one such Homeowners Association, the Sunbird Golf Resort.

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After learning that one owner within the Association was able to reduce his personal electricity expense to approximately $15.00/month by utilizing solar technology, Sunbird’s management became interested in exploring potential opportunities to utilize solar power for the Association at large.

The first application of solar power was the installation of solar-powered heating for the community swimming pool. This application was able to immediately reduce what had been a $26,000 annual expense for the Association.

The Association is now looking for ways to further expand its implementation of solar power, including powering their streetlights and clubhouse.

Homeowners Associations in California may want to explore the feasibility of implementing alternative energy within their communities. Some CC&Rs may restrict or prohibit these installations; however, any such restrictions flatly prohibiting solar panels are null and void in California. If you would like some guidance on this issue, contact our offices to discuss with one of our attorneys the options available to your Association.