Real Estate & Property Law

Solar for Condos and HOAs

Lots of people want to "Go Green" and some to more extremes than others. Even in these tough economic times and given the up front investment, some associations are looking seriously at options for adding solar and other "green" options (electric car plug ins and the like). Unfortunately, it is complicated, Here is some information and reference material from a reader:

"Someone just pointed me to your wonderful condo site. Since you clearly know a lot about condos, I was wondering if you've heard of any condos that have bought or leased solar systems. I've been trying to get one in place at my condo and have run into various issues.

I'm particularly interested in whether it might be possible to do various energy-efficiency improvements, including solar, under a PACE program (assuming they start up again, which many people think they will). As I note in this blog post, our HOA board thinks this would be too complicated legally: http://rfrancescato.wordpress.com/2010/07/07/condoizing-solar-part-2/.

However, my fellow green committee member spent a lot of time talking with the San Francisco Mayor's office about this. They were eager to work with a condo, and he thinks that if they think it could be done, then it must be legal.

Have you encountered this kind of issue? I would love to hear your thoughts on this."

The issue in the blog and the San Francisco loan site and the news article to which the blog refers say that both FNMA and Freddie Mac (FHLMC) the two largest home loan servicers, are saying they will not purchase or service loans that are made under programs like the San Francisco PACE program which was providing funding for home loans for homes that featured "green" options.

So add this to other possible barriers to "going green" on the large scale. Other hurdles include:

Ownership/placement issues
Capacity issues
Up front costs
Raising money
Owner approval

It's too bad it's so hard! But keep the faith. What seems difficult today may be easier in the future as barriers are lifted and solutions are offered. It is likely that need, appreciation of the environment, added competition, legislation, incentives and discussions with the loan servicers might lead to solutions. So do not let the hurdles delay studying the options - associations that want to look at all options can take "baby steps" by choosing improved roofing products, irrigation systems and landscaping options, by choosing improved lighting options, and can prepare to be "poised to propose" large scale solar options when the timing and more substantial and workable programs line up in the universe.

Full post as published by California Condo & HOA Law on August 28, 2010 (boomark / email).