IN THIS ISSUE LOWER THE TEMPERATURE WITH EFFECTIVE DISPUTE RESOLUTION PROCEDURES: Minor disputes in a community association can escalate quickly. Don’t let tempers flare! Internal Dispute Resolutions can be an effective tool in resolving disputes. Get an inside perspective on common mistakes boards and associations make and how to avoid them. CONTRACT PROVISIONS & REVIEW: A proposal is not a contract. It does not identify the issues which can arise, nor does it allocate any risk. Be prepared with contracts that don’t leave key issues open for your association to be forced to deal with when things aren’t going well.
FA L L 2 0 1 8
Association Owned Solar Energy Systems: A Checklist of Considerations for California CIDs BY DIRK PETCHUL, ESQ. – BERDING | WEIL, LLP
S
olar energy systems (“SES”) have enjoyed ever-improving cost effectiveness and a simultaneous increase in popularity with California homeowners. A great deal of attention has been paid (by individual Common Interest Developments (“CIDs”), our community management professionals and our state legislators) to association member-installed systems, and, more specifically, the restrictions that have been legislatively
imposed upon California CIDs (by Civil Code §§ 714, 714.1 and 4746), which vary significantly limit a CID’s right/power to prohibit or restrict such installations by an association member.
Important Considerations For Your Community Consider Capital Improvement Restrictions: Unless you are replacing a pre-existing association SES, the
installation of an association SES will almost certainly constitute a “capital improvement.” Review your governing documents carefully to identify restrictions imposed upon capital improvements. The most common is a requirement of membership approval (through balloting) for capital improvements above certain threshold values. Continued on page 2