“Electric Car Charging Stations in Community Associations: 5 Things to Consider” – KSN attorney David Savitt discusses electric car charging stations in community associations. He reviews five factors including what to consider when reviewing a request to install an electric car charging station, costs, and more. (12 mins.)

The KSN Podcast examines various aspects of association law, landlord/tenant issues, property tax appeals, and more. In each episode, KSN attorneys share their experience and knowledge as they discuss legal updates, best practices, industry trends, and more. KSN Podcast episodes are available at www.ksnlaw.com/podcast.

Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collectionslandlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.

For more info about our law firm and legal services, please visit www.ksnlaw.com

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Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collectionslandlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.

For more info about our law firm and legal services, please visit www.ksnlaw.com.

 

Episode Transcription

Bernie: You’re listening to the KSN podcast and today we’re talking about electric car charging stations in community associations. Welcome to the KSN podcast where you will hear from KSN attorneys as they share their experience and insight on legal issues surrounding community associations, collections, property tax appeals, and landlord tenant law. I’m Bernie and today we’re joined by KSN attorney David Savitt. David practices condominium townhome and homeowner association law in the state of Illinois. Welcome to the podcast David.

David: Hi, great to be here.

Bernie: All right. So our topic today is electric car charging stations in community associations. It’s becoming much more commonplace to find yourself next to a Chevy Volt, Nissan Leaf, maybe a Tesla Model S in traffic and perhaps in the parking lot of your condo homeowner or townhome associations. So you have a lot of reports talking about how the sales of electric cars are only going to continue to grow but the feasibility of supplying that growing number of electric vehicles with fuel is a significant issue. So you have public electric charging stations that are massively outnumbered by gas stations and it only makes sense that electric vehicle car owners would just find it more convenient to charge their vehicle at home. And it only gets more complicated if you live in a community association where residents share parking areas and you start looking at what the cost of supplying electricity actually looks like.

David: That’s right, Bernie. Considering the rising ownership of electric cars, board members and property managers may be approached with proposals to install an electric charging station. As these requests become more common you may be wondering whether your association is obligated to accommodate such a request. The answers depend on a variety of factors, which include, but are not limited to analyzing your state’s law and the capabilities of your associations electrical grid.

Bernie: All right, so David and I are going to discuss the five factors that association leadership property board members should consider when reviewing a request to install an electric car charging station within their association. So let’s jump right in. David, what exactly is the law that corresponds with these types of car charging stations?

David: Well, some States like California, Colorado, Florida, Hawaii, New York, and Oregon are subject to what are called right to charge laws and these laws prevent associations from blocking proposals for charging stations. Specifically these laws state that the associations governing documents cannot restrict charging stations or give board members the power to deny all proposals outright. Associations, however, in these States do retain the power to evaluate charging station proposals and recommend changes before they are implemented. Nevertheless, these laws do require owners’ proposals to meet certain conditions and the requesting homeowner is expected to take responsibility for the cost to install and remove their respective charging station.

Bernie: All right. So when we’re checking governing documents, rules, regulations, what do you recommend that an association should do?

David: Due to the recent popularity of electric cars, associations with older governing documents may have little to no guidance in their covenants by-laws declaration and or rules that explicitly reference electric charging stations. Nevertheless, since charging stations can be considered exterior alterations or modifications that are typically installed within the common elements of the property associations still retain significant power over the installation of electric charging stations, even if they are not explicitly referenced within the documents. That said there are a number of factors such as whether the parking space at issue is deeded to the requesting owner that can affect your associations ability to restrict and or regulate the installation of electric charging stations.

Bernie: And that’s where you can come in, the association’s legal counsel can help.

David: Exactly. It’s important for board members and property managers to work with their legal counsel to review all aspects of any plans or specifications submitted that pertain to the installation of an electric vehicle charging station so that your association is well aware of its rights and obligations.

Bernie: All right, David and I are going to take a quick break. When we get back, we’ll continue discussing electric car charging stations in community associations.

Kelly: I’m attorney Kelly Elmore and I’d like to ask you if you’ve downloaded the KSN app. Here’s some of the apps features: 24/7 real-time access to KSN collection status online CSO portal featuring updates on active collection, foreclosure and landlord tenant matters, articles and booklets authored by KSN experienced association tax and landlord tenant attorneys, access to our schedule of upcoming educational events and you can view snapshot profiles of all KSN attorneys with contact info and mobile accessibility. The KSN app is now available for free download in the iTunes app store for your iPhone and iPad. The app is also available for free download in the Google play store for your Android phone or Android tablet, just search for Kovitz Shifrin Nesbit. We invite you to download the KSN app and learn what our law firm can do for you. We look forward to demonstrating how Kovitz Shifrin Nesbit has earned the trust of thousands of clients for over 30 years.

Bernie: And we’re back here with attorney David Savitt and we’re talking about the factors to consider when reviewing a request to install an electric car charging station within your association. So David, these charging stations are naturally going to draw a large amount of electricity to them. How does an association determine their properties electric capacity?

David: Well, it goes without saying that charging an electrical vehicle requires more than just a simple outlet. Building codes, weather conditions and the existing electrical capacity are just some of the issues that really need to be reviewed before approving a charging station. An electrician can present viable options but it’s also a possibility that the infrastructure of an older building may not support the demands of a charging station.

Bernie: And with the increase in electricity being drawn to the association, so who takes ownership, who manages the dynamics that come along with installing this charging station?

David: Your association can choose to own and or manage the charging station that is installed within the common areas allowing for control over billing and operations. Some community members might be concerned that electric charging stations will negatively impact their own electrical bills. As a result, your association may want to consider installing a charging station equipped with software that could track users separate electrical costs and bills them directly. Further, it may also be prudent to determine whether the electricity supply and the charging station can be sub-metered such that the costs of that electricity will be separate and apart from supplying the building as a whole. This will, again, help to ensure that individuals using the charging stations are the ones paying for the additional electricity.

Bernie: And then alternatively, you might have a condition where the person who actually needs it, who owns the electric car can essentially install their own electric car charging station but in a different agreement with the association.

David: That’s correct. Your association may condition its assent to the electrical charging station in exchange for the owner’s agreement to pay something like a monthly or yearly fee to the association to defray the additional costs. In any event it’s important to keep in mind that an electrical vehicle service provider or what’s known as an EVSP can handle the maintenance and collection of payments from owners that utilize charging stations. There’s also the option of allowing the homeowner to own, manage and pay all costs related to their charging station directly. This works well if the demand for charging stations is limited to one owner, however, given the rise in electric vehicles it’s likely that multiple owners will be using an electric charging station so that may make that format not viable.

Bernie: Yeah, you might as well just put it under the same management umbrella.

David: Correct.

Bernie: All right. So in order to effectively handle homeowners looking to purchase an electric car is there a proposal process, something formalized steps that should be taken to outline the procedure in the event that a board member is being approached with a request to install a charging spot?

David: Well, as you alluded to electric car owners and homeowners that are contemplating installing a vehicle charging station will often look to their board for guidance on how that process should be handled. In order to ensure that the board is handling these matters consistently, the board should have a written policy in place.

Bernie: And we’re talking about a similar policy in the event that say, for example, I wanted to install a certain color of aluminum siding or a certain type of fence. If you’re looking to install this electric car charging station for your use, you would just be looking to the board for similar guidance.

David: Exactly. And this gets back to the point we made earlier about these being exterior modifications and alterations. So as part of that policy, the board may require a homeowner to submit a detailed installation plan created by a licensed insured contractor. The proposal should also reflect the owners understanding that depending on the association’s rules, they are accountable for funding the project. Installation should not begin as with any exterior modification and alteration before the board has reviewed the project and granted permission.

Bernie: This reminds me very much of the episode we recorded on the same podcast about solar panels, where a board member is very unlikely to be a general contractor, electrician, or a subject matter expert in installing solar panels. In the same way it’s very unlikely that the board or let alone the unit owner is going to be an electric vehicle service provider or a charging station installer. So the board and the resident are going to have to get outside help. They’re going to have to get guidance from people who actually know about electrical grids, what can be managed and what can’t be.

David: That’s right and to your point these are both futuristic type exterior alterations and modifications that we’re going to be seeing more and more of as time goes on.

Bernie: That makes sense. Especially as you see more electric cars on the road, you have more owners, but again, for an association, it can be an opportunity. These charging stations can be an amenity. They can enhance desirability of living within that association and they promote that modern environmental, going green image for the association.

David: Correct.

Bernie: So, David, it seems like technology is always changing, something new is out there. What do you recommend for association board members, property managers who are looking for more guidance regarding this issue?

David: Well, the first step is really to educate yourself about the technologies that are out there but once you’ve done that and you get a request from an owner to install a charging station, I’d recommend contacting council to understand the associations rights and obligations. KSN can walk you through the process of understanding what information to request and what the impact on the association may be by granting or denying a request.

Bernie: So it’s just as much a technology issue as it is a legal issue.

David: That’s correct. And to my point earlier, this is one of those things that’s going to become more and more common in the future and is an area of the law, as well as technology that we’re just beginning to understand

Bernie: That was KSN attorney David Savitt. He practices in the area of condo, homeowner and townhome association law. KSN is an experienced legal resource, ready to provide you with quality advice and exceptional service. We look forward to demonstrating how we’ve earned the trust of thousands of clients over the past 35 years. If you’d like to reach David or any of KSN experienced attorneys, please visit ksnlaw.com, complete the contact message and said us a message. Thanks for listening. The music for the show is brought to you by freepodcastthemes.com. Please note that the material contained on the KSN podcast is for informational purposes only and does not constitute legal advice. No attorney client relationship is established by your review or receipt of the information contained on the KSN podcast. You should not act on the information discussed on the KSN podcast without first obtaining legal advice from an attorney duly licensed to practice law in your state. While Kovitz Shifrin Nesbit has made every effort to include up-to-date information on the KSN podcast the law can change quickly. Accordingly, please understand that information discussed on the podcast may not yet reflect the most recent legal developments. Material is not guaranteed to be correct, complete or up to date. Kovitz Shifrin Nesbit reserves the right to revise or update the information and statements of law discussed on the podcast at any time without notice and disclaims any liability for your use of information or statements of law discussed on the podcast or the performance of the podcast generally. KSN podcast may be considered advertising in some jurisdictions under applicable laws and or ethical rules and regulation.

 

Please note the material contained on the KSN Podcast is for informational purposes only and does not constitute legal advice. No attorney-client relationship is established by your review or receipt of the information contained on the KSN Podcast. You should not act on the information discussed on the KSN Podcast without first obtaining legal advice from an attorney duly licensed to practice law in your State. While KSN has made every effort to include up-to-date information on The KSN podcast, the law can change quickly. Accordingly, please understand that information discussed on the podcast may not yet reflect the most recent legal developments. Material is not guaranteed to be correct, complete, or up to date. KSN reserves the right to revise or update the information and statements of law discussed on the podcast at any time, without notice, and disclaims any liability for your use of information or statements of law discussed on the podcast, or the performance of the podcast generally. The KSN Podcast may be considered advertising in some jurisdictions under applicable law/s and/or ethical rules/regulations. © 2020 Kovitz Shifrin Nesbit, A Professional Corporation.