“Solar Panels Heating Up for Associations” – Attorney Michael Kreibich talks through the benefits and challenges that condominium, townhome, and homeowner’s associations experience when “going green”, with specific focus on solar panels. (12 mins.)
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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, collections, landlord/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.
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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, collections, landlord/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 community-wide sustainability. Welcome to the KSN podcast where you’ll hear from Kovitz Shifrin Nesbit 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 Michael Kreibich. Mike practices condominium, townhome, and homeowner association law. He has extensive background as a litigator. Mike you’ve been practicing law for over 15 years. You handle small to large communities in the Chicago land area, city, suburban. You pretty much create them all right?
Michael: That’s correct. Hi there, Bernie. Great to be here.
Bernie: Awesome. Good to have you here. So our topic today, community-wide sustainability initiatives. Mike, you’ve seen quite a few associations who have adopted some green practices and they’ve even saved some money in the process.
Michael: That’s right, Bernie. There are a lot of reasons that an association might make a shift towards more environmentally friendly practices. There’s the obvious benefit of reducing an association’s impact on the environment but there can be tremendous cost savings involved as well. The associations can benefit from tax credits, rebates, or other financial incentives that come with implementing environmental conservation initiatives.
Bernie: All right, so let’s jump right in, an association wants to go green. What are the first steps Mike?
Michael: Well, first of all, we have to take a look at the associations governing documents. Most associations are governed by rules that prohibit an owner from installing anything on the exterior of a building or in common areas without association approval. As part of these environmentally focused changes some unit owners may request certain items such as solar panels, rain barrels, compost bins, et cetera, that would conflict with such a rule.
Bernie: Makes sense. And we’re going to be talking about solar panels a lot in a second, but what would you say are the easiest green initiatives that an association can adopt to really get the ball rolling?
Michael: Really, it’s a number of outside of the box concepts. The association can switch to energy efficient appliances and fixtures in common areas. These include thermostats, garage doors, parking lot lighting. Saying the association has a clubhouse, these types of upgrades could include energy efficient kitchen appliances, or even low flow toilets.
Bernie: Okay. And many of these changes are what a unit owner might undertake in updating their own unit. Right?
Michael: Sure. Another good example is replacing old windows with double or triple pane models in common areas. Ultimately, the owners are paying for the utilities to heat and cool those spaces and well-insulated windows can go a long way towards cutting energy.
Bernie: And what about recycling? So that seems to be like an easy initiative to adopt.
Michael: It can be. Recycling can include the standard items like paper, glass, plastic, metals, but you can also recycle light bulbs, fabrics, shoes, batteries, and more. Creating recycling drives can also increase engagement and bring out the community spirit between neighbors as they strive to meet a community goal.
Bernie: Mike and I are going to take a quick break but when we get back we’ll get into more specifics about how associations can adopt community wide sustainability efforts and as promised, we’ll be focusing on solar panels.
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Bernie: And we’re back. I’m here with attorney Michael Kreibich and we’re discussing sustainability initiatives for community associations. So Mike, we’ve talked about some easy green initiatives that associations can adopt. What are some of the more challenging initiatives?
Michael: So I would argue the challenging part of these is simply the scale. Anyone can change a light bulb but installing something like solar panels requires a lot more planning and professional contractors but the reward scale as well. You see quite a bit more savings for a solar panel system than you would an efficient light bulb.
Bernie: All right, let’s start talking about solar panels. What are the pros? What are the cons?
Michael: Bernie, this is actually a very hot topic lately. Residential solar technology has gained popularity due to accessible technology, streamlined equipment and decreased installation costs. Even providers like ComEd have begun giving incentives. The biggest concerns we hear are how placement, operation, maintenance, safety and or aesthetics can impact the community.
Bernie: All right, when we’re talking about a community, obviously we’re talking about board members.
Michael: Correct. Board members are not experts regarding solar panel systems but an association’s energy policy statement should generally address architectural requirements. For example, property owners should provide confirmation of local government permits and contractor licensing. One of the biggest issues that I address on a day-to-day basis is placement of solar panels. Board members have the misconception that based on their architectural standards, they have the right to require owners to place the solar panels in very specific locations. Based on the law that may very well not be true.
Bernie: And when we’re talking about the law, Mike, we’re talking about state regulations that actually govern solar panels.
Michael: Yes, the Illinois homeowners solar rights act was adopted in 2011. What that statute does is it gives direction to associations and their board of directors as to what they can restrict, how they can restrict it, where solar panels can be placed and a number of other things that assist the board in dealing with solar panels.
Bernie: And Mike, when we’re talking about solar panel installation, we’re talking about electricity, architectural requirements, roofing constructions, a lot of things that, I mean, truthfully, maybe a board member is not aware of because they may not be subject matter experts on any of those topics.
Michael: Sure. The statute gives guidance to the board but that guidance in the statute can actually sometimes conflict with what the governing documents of the association say. What needs to be understood is that the Illinois statute does override any provisions in the associations governing documents. The installation of solar panels, as you just stated, Bernie is complex. It requires experts. It requires installation on the roofs of homes. And it also may impact the aesthetics of the homes in the community which is generally one of the biggest factors that the boards have or take issue with. What needs to be understood is that the statute itself does contain provisions that address the aesthetics, that address the location but there are very specific requirements that the board follow in order to enforce those requirements against owners. There’s really a two-prong approach. The two-prong approach that you need to follow in order to enforce restrictions against its members of the association is that you need to have a policy statement in place that has the provisions that you intend to enforce and you also need to have those policy provisions in your association’s declaration. So it’s not enough to just have a policy or an energy policy in place. You also then need to have that same language added to the association declaration. So in order for a board of directors to enforce any policy against an individual owner about placement, such as placement on the front of the roof, which is one of the major issues that we face right now, you would have to have, as I stated, the two different things in place, a policy statement and you would have to have an amendment to the declaration. If you have those things in place, you are then in position to be able to enforce certain restrictions against your owners in the installation and placement of solar panels.
Bernie: And I think it’s fair to say, Mike, anytime you were addressing solar panels, sustainability efforts that impact the entire community as a board member, you want to be proactive. I’m sure solar panel technology is becoming more widespread and you have contractors’ representatives that might be going door to door descending information to association members about solar panels. It would only make sense that they might be curious about the technology. They might see the benefits of that but if a board member is reacting to this after the fact that does put them in a difficult position if they don’t have a policy in place.
Michael: Absolutely Bernie. There’s actually a timing provision in the statute as well. It requires within X number of days, the association to have a policy statement in place. It also States that you have to respond to the individual who is requesting the installation within a timeframe. So being proactive is highly important in this case to have all of this in place before a request to install comes in so that the board is not left scrambling at the last minute, which ends up causing additional meetings and more money for the association.
Bernie: All right, Mike, so what do you recommend for association board members or property managers who are looking for more guidance, especially with this complex topic of solar panels and solar panel installation?
Michael: Bernie like any other major issue that a board of directors faces for an association, you need to work with the people that surround you that have expertise. That can be your professional manager, that can be your attorney, but a team effort approach is what is the best to get the best results in this situation. So I would suggest that the association’s board of directors consult with their management if they have management or with their attorneys to make sure that the proper documentation and procedures are in place to make sure that installation of solar panels or any other energy conservation initiatives are handled properly.
Bernie: Mike that’s good guidance and good information. So thanks for joining me on the podcast.
Michael: Thanks for having me Bernie.
Bernie: So that was KSN attorney Michael Kreibich. Again, he practices condominium, townhome, homeowner association law in the city of Chicago and the surrounding suburbs. If you need his help or you want to find out more information about Kovitz Shifrin Nesbit, we are an experienced legal resource, ready to provide you with quality advice and exceptional service. We look forward to demonstrating how we have earned the trust of thousands of clients over the past 35 years. You can reach attorney Michael Kreibich or any of KSN experienced attorneys by calling (855) 537-0500 or you can just visit ksnlaw.com and complete the contact form to send us a message. The music for this show is brought to you by freepodcastthemes.com.
Bernie: 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 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 regulations.
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.