4 6 5
Assess legal
requirements to deliver solar.
solar installed for an HOA are the multitude of legal factors that need to be addressed to make it happen. Close review of an associa-
STEP
- mining the feasibility and necessary process to and thus, every project differs greatly in the legal steps that need to be addressed. Do you need a full community vote to approve the board to - solar system, often the dollar amount requires a vote of the entire membership. Additionally, the manner in which the HOA holds title to com- mon area property will affect financing. If the HOA holds title to a common area APN, lend- ers may treat it differently than a scenario where all homeowners own common area in equal parts. A qualified legal professional should per- form a review of all governing documents and assess how title of common area is held prior to moving to the next step.
STEP
Homeowner’s associations are not able to take advantage of the sub- stantial tax benefits of solar installation because of their non-profit sta- tus. Despite this, solar can still save associations money.
In order to STEP
- payment what may require HOA dues to be raised for the first several years. An alternate source of financing is a Power Purchase Agreement program (PPA). In a PPA, a third party purchases the solar equipment and takes the tax benefits. Tey sell power back to the HOA at a re- - rable to outright purchase of the solar system by the HOA. Te advan- tage of a PPA program is that it requires little to no maintenance by the Financing can be competitively bid out to multiple lenders to obtain the best “deal” for an HOA.
It is important for the construction man-
ager, and HOA manager, to have a clear scope of work and assessment of legal requirements prior to seeking financing to obtain competitive financing bids and avoid delays in the underwriting process. Once a lender or PPA has been chosen, a final cost savings analysis should be prepared showing how financing affects total savings from solar.
Installation of Solar System
Once financing has been approved and a con- tractor has been selected, construction can start. It is recommended that an HOA en- gage a construction manager for major proj- ects like solar installation. It is also impera- tive that a licensed roofing contractor make all roofing penetrations associated with the solar project.
Construction for an average
weeks. Te construction manager should en- sure that proper safety practices are observed to protect homeowners and limit HOA liability.
you can see, the complicated steps presented above require coordination of multiple highly far more complicated than a reserve roofing or painting project. Despite the complications, the potential savings are definitely worth tack- ling the challenges. Tankfully, there are more resources now than ever to aid both your board and association manager in seeing a potential project through to completion.
is the co-founder of - expert consultation on streamlining the so- lar process for home- owners associations throughout California. Visit
www.ionic.energy for more information on their services.
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