California 2017 2017-2018 Regular Session

California Assembly Bill AB634 Amended / Bill

Filed 05/04/2017

                    Amended IN  Assembly  May 04, 2017 Amended IN  Assembly  March 23, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 634Introduced by Assembly Member EggmanFebruary 14, 2017 An act to amend Sections 714 and 714.1 and 4600 of the Civil Code, relating to real property.LEGISLATIVE COUNSEL'S DIGESTAB 634, as amended, Eggman. Real property: solar energy systems.Existing property law prohibits any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, and any provision of a governing document from effectively prohibiting or restricting the installation or use of a solar energy system.Existing law also exempts from that prohibition provisions that impose reasonable restrictions on solar energy systems that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance. Existing law specifies that whenever approval is required for the installation or use of a solar energy system, the application for approval must be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property. If the approving entity is an association created for managing a common interest development, and is not a public entity, the approval or denial of an application must be in writing and if the application is not denied in writing within 45 days of its receipt, the application must be deemed approved, except in limited circumstances.This bill would require the approval process for associations to include a requirement that an applicant notify each owner of units in the building on which the installation will be located of the application to install a solar energy system and to ensure equal allocation of usable solar space.Existing property law permits an association to impose reasonable provisions that restrict the installation of solar energy systems installed in common areas, as defined, to those systems approved by the association.This bill additionally would permit an association to impose reasonable provisions that require an applicant to notify each owner of a unit in the building on which a solar installation will be located of the application to install a solar energy system, to require the applicant to submit a solar suitability survey to determine usable solar roof area, and to require equitable allocation of usable solar space, as specified. The bill would specify that an association may not prohibit establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides and also may not require approval of the membership of the association by a vote of members owning separate interests in the common interest development in those circumstances. The bill also would specify that any action by an association that contravenes these provisions is void and unenforceable, and would make nonsubstantive and clarifying changes.The Davis-Stirling Common Interest Development Act defines and regulates common interest developments. The act requires an affirmative vote of members owning at least 67% of the separate interests in the common interest development before the board may grant exclusive use of a portion of the common interest development to a member, unless the governing documents specify a different percentage. Existing law exempts from this requirement certain actions, including, among others, a grant of exclusive use to eliminate or correct engineering errors in recorded documents, to accommodate a disability, and to install and use an electric vehicle charging station through a license granted by the association.This bill also would exempt from that vote requirement an action to install and use a solar energy system on the common roof of a residence that meets specified requirements.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1.Section 714 of the Civil Code is amended to read:714.(a)Any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document, as defined in Section 4150 or 6552, which effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable.(b)This section does not apply to provisions that impose reasonable restrictions on solar energy systems. However, it is the policy of the state to promote and encourage the use of solar energy systems and to remove obstacles thereto. Accordingly, reasonable restrictions on a solar energy system are those restrictions that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance, or that allow for an alternative system of comparable cost, efficiency, and energy conservation benefits.(c)(1)A solar energy system shall meet applicable health and safety standards and requirements imposed by state and local permitting authorities, consistent with Section 65850.5 of the Government Code.(2)Solar energy systems used for heating water in single family residences and solar collectors used for heating water in commercial or swimming pool applications shall be certified by an accredited listing agency as defined in the Plumbing and Mechanical Codes.(3)A solar energy system for producing electricity shall also meet all applicable safety and performance standards established by the California Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability.(d)For the purposes of this section:(1)(A)For solar domestic water heating systems or solar swimming pool heating systems that comply with state and federal law, significantly means an amount exceeding 10 percent of the cost of the system, but in no case more than one thousand dollars ($1,000), or decreasing the efficiency of the solar energy system by an amount exceeding 10 percent, as originally specified and proposed.(B)For photovoltaic systems that comply with state and federal law, significantly means an amount not to exceed one thousand dollars ($1,000) over the system cost as originally specified and proposed, or a decrease in system efficiency of an amount exceeding 10 percent as originally specified and proposed.(2)Solar energy system has the same meaning as defined in paragraphs (1) and (2) of subdivision (a) of Section 801.5.(e)(1)Whenever approval is required for the installation or use of a solar energy system, the application for approval shall be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property, and shall not be willfully avoided or delayed.(2)For an approving entity that is an association, as defined in Section 4080 or 6528, and that is not a public entity, all of the following shall apply:(A)The approval or denial of an application shall be in writing.(B)If an application is not denied in writing within 45 days from the date of receipt of the application, the application shall be deemed approved, unless that delay is the result of a reasonable request for additional information.(C)The approval procedures shall include the following:(i)Require an applicant to notify each owner of units in the building on which the installation will be located of the application to install a solar energy system.(ii)Ensure equal allocation of usable solar space.(f)Any entity, other than a public entity, that willfully violates this section shall be liable to the applicant or other party for actual damages occasioned thereby, and shall pay a civil penalty to the applicant or other party in an amount not to exceed one thousand dollars ($1,000).(g)In any action to enforce compliance with this section, the prevailing party shall be awarded reasonable attorneys fees.(h)(1)A public entity that fails to comply with this section may not receive funds from a state-sponsored grant or loan program for solar energy. A public entity shall certify its compliance with the requirements of this section when applying for funds from a state-sponsored grant or loan program.(2)A local public entity may not exempt residents in its jurisdiction from the requirements of this section.SEC. 2.SECTION 1. Section 714.1 of the Civil Code is amended to read:714.1. (a) Notwithstanding Section 714, an association may impose reasonable provisions that:(1) Restrict the installation of solar energy systems in common areas to those systems approved by the association.(2) Require the owner of a separate interest to obtain the approval of the association for the installation of a solar energy system in a separate interest owned by another.(3) Provide for the maintenance, repair, or replacement of roofs or other building components.(4) Require installers of solar energy systems to indemnify or reimburse the association or its members for loss or damage caused by the installation, maintenance, or use of the solar energy system.(5) Require an applicant to notify each owner of a unit in the building on which the installation will be located of the application to install a solar energy system.(6) Require the applicant to submit to the association a solar suitability survey prepared by a licensed contractor knowledgeable in the installation of solar energy systems, for the association to determine usable solar roof area.(7) Require equitable allocation of the usable solar roof area among all owners sharing the same roof, if the association determines that the roof is suitable for solar installation pursuant to paragraph (6).(b) An association shall not:(1) Prohibit Establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides.(2) Require approval of the membership of the association, by a vote of members owning separate interests in the common interest development, including that specified by Section 4600, for installation of a solar energy system for household purposes on the roof of the building in which the owner resides.An action by an association that contravenes paragraph (1) or (2) shall be void and unenforceable.(c) For purposes of this section:(1) Association has the same meaning as defined in Section 4080 or 6528.(2) Common area has the same meaning as defined in Section 4095 or 6532.(3) Separate interest has the same meaning as defined in Section 4185 or 6564.SEC. 2. Section 4600 of the Civil Code is amended to read:4600. (a) Unless the governing documents specify a different percentage, the affirmative vote of members owning at least 67 percent of the separate interests in the common interest development shall be required before the board may grant exclusive use of any portion of the common area to a member.(b) Subdivision (a) does not apply to the following actions:(1) A reconveyance of all or any portion of that common area to the subdivider to enable the continuation of development that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report.(2) Any grant of exclusive use that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report or in accordance with the governing documents approved by the Real Estate Commissioner.(3) Any grant of exclusive use that is for any of the following reasons:(A) To eliminate or correct engineering errors in documents recorded with the county recorder or on file with a public agency or utility company.(B) To eliminate or correct encroachments due to errors in construction of any improvements.(C) To permit changes in the plan of development submitted to the Real Estate Commissioner in circumstances where the changes are the result of topography, obstruction, hardship, aesthetic considerations, or environmental conditions.(D) To fulfill the requirement of a public agency.(E) To transfer the burden of management and maintenance of any common area that is generally inaccessible and not of general use to the membership at large of the association.(F) To accommodate a disability.(G) To assign a parking space, storage unit, or other amenity, that is designated in the declaration for assignment, but is not assigned by the declaration to a specific separate interest.(H) To install and use an electric vehicle charging station in an owners garage or a designated parking space that meets the requirements of Section 4745, where the installation or use of the charging station requires reasonable access through, or across, the common area for utility lines or meters.(I) To install and use an electric vehicle charging station through a license granted by an association under Section 4745.(J) To install and use a solar energy system on the common roof of a residence that meets the requirements of Section 714 and 714.1.(J)(K) To comply with governing law.(c) Any measure placed before the members requesting that the board grant exclusive use of any portion of the common area shall specify whether the association will receive any monetary consideration for the grant and whether the association or the transferee will be responsible for providing any insurance coverage for exclusive use of the common area.

 Amended IN  Assembly  May 04, 2017 Amended IN  Assembly  March 23, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 634Introduced by Assembly Member EggmanFebruary 14, 2017 An act to amend Sections 714 and 714.1 and 4600 of the Civil Code, relating to real property.LEGISLATIVE COUNSEL'S DIGESTAB 634, as amended, Eggman. Real property: solar energy systems.Existing property law prohibits any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, and any provision of a governing document from effectively prohibiting or restricting the installation or use of a solar energy system.Existing law also exempts from that prohibition provisions that impose reasonable restrictions on solar energy systems that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance. Existing law specifies that whenever approval is required for the installation or use of a solar energy system, the application for approval must be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property. If the approving entity is an association created for managing a common interest development, and is not a public entity, the approval or denial of an application must be in writing and if the application is not denied in writing within 45 days of its receipt, the application must be deemed approved, except in limited circumstances.This bill would require the approval process for associations to include a requirement that an applicant notify each owner of units in the building on which the installation will be located of the application to install a solar energy system and to ensure equal allocation of usable solar space.Existing property law permits an association to impose reasonable provisions that restrict the installation of solar energy systems installed in common areas, as defined, to those systems approved by the association.This bill additionally would permit an association to impose reasonable provisions that require an applicant to notify each owner of a unit in the building on which a solar installation will be located of the application to install a solar energy system, to require the applicant to submit a solar suitability survey to determine usable solar roof area, and to require equitable allocation of usable solar space, as specified. The bill would specify that an association may not prohibit establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides and also may not require approval of the membership of the association by a vote of members owning separate interests in the common interest development in those circumstances. The bill also would specify that any action by an association that contravenes these provisions is void and unenforceable, and would make nonsubstantive and clarifying changes.The Davis-Stirling Common Interest Development Act defines and regulates common interest developments. The act requires an affirmative vote of members owning at least 67% of the separate interests in the common interest development before the board may grant exclusive use of a portion of the common interest development to a member, unless the governing documents specify a different percentage. Existing law exempts from this requirement certain actions, including, among others, a grant of exclusive use to eliminate or correct engineering errors in recorded documents, to accommodate a disability, and to install and use an electric vehicle charging station through a license granted by the association.This bill also would exempt from that vote requirement an action to install and use a solar energy system on the common roof of a residence that meets specified requirements.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO 

 Amended IN  Assembly  May 04, 2017 Amended IN  Assembly  March 23, 2017

Amended IN  Assembly  May 04, 2017
Amended IN  Assembly  March 23, 2017

 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION

Assembly Bill No. 634

Introduced by Assembly Member EggmanFebruary 14, 2017

Introduced by Assembly Member Eggman
February 14, 2017

 An act to amend Sections 714 and 714.1 and 4600 of the Civil Code, relating to real property.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 634, as amended, Eggman. Real property: solar energy systems.

Existing property law prohibits any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, and any provision of a governing document from effectively prohibiting or restricting the installation or use of a solar energy system.Existing law also exempts from that prohibition provisions that impose reasonable restrictions on solar energy systems that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance. Existing law specifies that whenever approval is required for the installation or use of a solar energy system, the application for approval must be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property. If the approving entity is an association created for managing a common interest development, and is not a public entity, the approval or denial of an application must be in writing and if the application is not denied in writing within 45 days of its receipt, the application must be deemed approved, except in limited circumstances.This bill would require the approval process for associations to include a requirement that an applicant notify each owner of units in the building on which the installation will be located of the application to install a solar energy system and to ensure equal allocation of usable solar space.Existing property law permits an association to impose reasonable provisions that restrict the installation of solar energy systems installed in common areas, as defined, to those systems approved by the association.This bill additionally would permit an association to impose reasonable provisions that require an applicant to notify each owner of a unit in the building on which a solar installation will be located of the application to install a solar energy system, to require the applicant to submit a solar suitability survey to determine usable solar roof area, and to require equitable allocation of usable solar space, as specified. The bill would specify that an association may not prohibit establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides and also may not require approval of the membership of the association by a vote of members owning separate interests in the common interest development in those circumstances. The bill also would specify that any action by an association that contravenes these provisions is void and unenforceable, and would make nonsubstantive and clarifying changes.The Davis-Stirling Common Interest Development Act defines and regulates common interest developments. The act requires an affirmative vote of members owning at least 67% of the separate interests in the common interest development before the board may grant exclusive use of a portion of the common interest development to a member, unless the governing documents specify a different percentage. Existing law exempts from this requirement certain actions, including, among others, a grant of exclusive use to eliminate or correct engineering errors in recorded documents, to accommodate a disability, and to install and use an electric vehicle charging station through a license granted by the association.This bill also would exempt from that vote requirement an action to install and use a solar energy system on the common roof of a residence that meets specified requirements.

Existing property law prohibits any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, and any provision of a governing document from effectively prohibiting or restricting the installation or use of a solar energy system.

Existing law also exempts from that prohibition provisions that impose reasonable restrictions on solar energy systems that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance. Existing law specifies that whenever approval is required for the installation or use of a solar energy system, the application for approval must be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property. If the approving entity is an association created for managing a common interest development, and is not a public entity, the approval or denial of an application must be in writing and if the application is not denied in writing within 45 days of its receipt, the application must be deemed approved, except in limited circumstances.

This bill would require the approval process for associations to include a requirement that an applicant notify each owner of units in the building on which the installation will be located of the application to install a solar energy system and to ensure equal allocation of usable solar space.



Existing property law permits an association to impose reasonable provisions that restrict the installation of solar energy systems installed in common areas, as defined, to those systems approved by the association.

This bill additionally would permit an association to impose reasonable provisions that require an applicant to notify each owner of a unit in the building on which a solar installation will be located of the application to install a solar energy system, to require the applicant to submit a solar suitability survey to determine usable solar roof area, and to require equitable allocation of usable solar space, as specified. The bill would specify that an association may not prohibit establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides and also may not require approval of the membership of the association by a vote of members owning separate interests in the common interest development in those circumstances. The bill also would specify that any action by an association that contravenes these provisions is void and unenforceable, and would make nonsubstantive and clarifying changes.

The Davis-Stirling Common Interest Development Act defines and regulates common interest developments. The act requires an affirmative vote of members owning at least 67% of the separate interests in the common interest development before the board may grant exclusive use of a portion of the common interest development to a member, unless the governing documents specify a different percentage. Existing law exempts from this requirement certain actions, including, among others, a grant of exclusive use to eliminate or correct engineering errors in recorded documents, to accommodate a disability, and to install and use an electric vehicle charging station through a license granted by the association.

This bill also would exempt from that vote requirement an action to install and use a solar energy system on the common roof of a residence that meets specified requirements.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1.Section 714 of the Civil Code is amended to read:714.(a)Any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document, as defined in Section 4150 or 6552, which effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable.(b)This section does not apply to provisions that impose reasonable restrictions on solar energy systems. However, it is the policy of the state to promote and encourage the use of solar energy systems and to remove obstacles thereto. Accordingly, reasonable restrictions on a solar energy system are those restrictions that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance, or that allow for an alternative system of comparable cost, efficiency, and energy conservation benefits.(c)(1)A solar energy system shall meet applicable health and safety standards and requirements imposed by state and local permitting authorities, consistent with Section 65850.5 of the Government Code.(2)Solar energy systems used for heating water in single family residences and solar collectors used for heating water in commercial or swimming pool applications shall be certified by an accredited listing agency as defined in the Plumbing and Mechanical Codes.(3)A solar energy system for producing electricity shall also meet all applicable safety and performance standards established by the California Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability.(d)For the purposes of this section:(1)(A)For solar domestic water heating systems or solar swimming pool heating systems that comply with state and federal law, significantly means an amount exceeding 10 percent of the cost of the system, but in no case more than one thousand dollars ($1,000), or decreasing the efficiency of the solar energy system by an amount exceeding 10 percent, as originally specified and proposed.(B)For photovoltaic systems that comply with state and federal law, significantly means an amount not to exceed one thousand dollars ($1,000) over the system cost as originally specified and proposed, or a decrease in system efficiency of an amount exceeding 10 percent as originally specified and proposed.(2)Solar energy system has the same meaning as defined in paragraphs (1) and (2) of subdivision (a) of Section 801.5.(e)(1)Whenever approval is required for the installation or use of a solar energy system, the application for approval shall be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property, and shall not be willfully avoided or delayed.(2)For an approving entity that is an association, as defined in Section 4080 or 6528, and that is not a public entity, all of the following shall apply:(A)The approval or denial of an application shall be in writing.(B)If an application is not denied in writing within 45 days from the date of receipt of the application, the application shall be deemed approved, unless that delay is the result of a reasonable request for additional information.(C)The approval procedures shall include the following:(i)Require an applicant to notify each owner of units in the building on which the installation will be located of the application to install a solar energy system.(ii)Ensure equal allocation of usable solar space.(f)Any entity, other than a public entity, that willfully violates this section shall be liable to the applicant or other party for actual damages occasioned thereby, and shall pay a civil penalty to the applicant or other party in an amount not to exceed one thousand dollars ($1,000).(g)In any action to enforce compliance with this section, the prevailing party shall be awarded reasonable attorneys fees.(h)(1)A public entity that fails to comply with this section may not receive funds from a state-sponsored grant or loan program for solar energy. A public entity shall certify its compliance with the requirements of this section when applying for funds from a state-sponsored grant or loan program.(2)A local public entity may not exempt residents in its jurisdiction from the requirements of this section.SEC. 2.SECTION 1. Section 714.1 of the Civil Code is amended to read:714.1. (a) Notwithstanding Section 714, an association may impose reasonable provisions that:(1) Restrict the installation of solar energy systems in common areas to those systems approved by the association.(2) Require the owner of a separate interest to obtain the approval of the association for the installation of a solar energy system in a separate interest owned by another.(3) Provide for the maintenance, repair, or replacement of roofs or other building components.(4) Require installers of solar energy systems to indemnify or reimburse the association or its members for loss or damage caused by the installation, maintenance, or use of the solar energy system.(5) Require an applicant to notify each owner of a unit in the building on which the installation will be located of the application to install a solar energy system.(6) Require the applicant to submit to the association a solar suitability survey prepared by a licensed contractor knowledgeable in the installation of solar energy systems, for the association to determine usable solar roof area.(7) Require equitable allocation of the usable solar roof area among all owners sharing the same roof, if the association determines that the roof is suitable for solar installation pursuant to paragraph (6).(b) An association shall not:(1) Prohibit Establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides.(2) Require approval of the membership of the association, by a vote of members owning separate interests in the common interest development, including that specified by Section 4600, for installation of a solar energy system for household purposes on the roof of the building in which the owner resides.An action by an association that contravenes paragraph (1) or (2) shall be void and unenforceable.(c) For purposes of this section:(1) Association has the same meaning as defined in Section 4080 or 6528.(2) Common area has the same meaning as defined in Section 4095 or 6532.(3) Separate interest has the same meaning as defined in Section 4185 or 6564.SEC. 2. Section 4600 of the Civil Code is amended to read:4600. (a) Unless the governing documents specify a different percentage, the affirmative vote of members owning at least 67 percent of the separate interests in the common interest development shall be required before the board may grant exclusive use of any portion of the common area to a member.(b) Subdivision (a) does not apply to the following actions:(1) A reconveyance of all or any portion of that common area to the subdivider to enable the continuation of development that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report.(2) Any grant of exclusive use that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report or in accordance with the governing documents approved by the Real Estate Commissioner.(3) Any grant of exclusive use that is for any of the following reasons:(A) To eliminate or correct engineering errors in documents recorded with the county recorder or on file with a public agency or utility company.(B) To eliminate or correct encroachments due to errors in construction of any improvements.(C) To permit changes in the plan of development submitted to the Real Estate Commissioner in circumstances where the changes are the result of topography, obstruction, hardship, aesthetic considerations, or environmental conditions.(D) To fulfill the requirement of a public agency.(E) To transfer the burden of management and maintenance of any common area that is generally inaccessible and not of general use to the membership at large of the association.(F) To accommodate a disability.(G) To assign a parking space, storage unit, or other amenity, that is designated in the declaration for assignment, but is not assigned by the declaration to a specific separate interest.(H) To install and use an electric vehicle charging station in an owners garage or a designated parking space that meets the requirements of Section 4745, where the installation or use of the charging station requires reasonable access through, or across, the common area for utility lines or meters.(I) To install and use an electric vehicle charging station through a license granted by an association under Section 4745.(J) To install and use a solar energy system on the common roof of a residence that meets the requirements of Section 714 and 714.1.(J)(K) To comply with governing law.(c) Any measure placed before the members requesting that the board grant exclusive use of any portion of the common area shall specify whether the association will receive any monetary consideration for the grant and whether the association or the transferee will be responsible for providing any insurance coverage for exclusive use of the common area.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:





(a)Any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document, as defined in Section 4150 or 6552, which effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable.



(b)This section does not apply to provisions that impose reasonable restrictions on solar energy systems. However, it is the policy of the state to promote and encourage the use of solar energy systems and to remove obstacles thereto. Accordingly, reasonable restrictions on a solar energy system are those restrictions that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance, or that allow for an alternative system of comparable cost, efficiency, and energy conservation benefits.



(c)(1)A solar energy system shall meet applicable health and safety standards and requirements imposed by state and local permitting authorities, consistent with Section 65850.5 of the Government Code.



(2)Solar energy systems used for heating water in single family residences and solar collectors used for heating water in commercial or swimming pool applications shall be certified by an accredited listing agency as defined in the Plumbing and Mechanical Codes.



(3)A solar energy system for producing electricity shall also meet all applicable safety and performance standards established by the California Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability.



(d)For the purposes of this section:



(1)(A)For solar domestic water heating systems or solar swimming pool heating systems that comply with state and federal law, significantly means an amount exceeding 10 percent of the cost of the system, but in no case more than one thousand dollars ($1,000), or decreasing the efficiency of the solar energy system by an amount exceeding 10 percent, as originally specified and proposed.



(B)For photovoltaic systems that comply with state and federal law, significantly means an amount not to exceed one thousand dollars ($1,000) over the system cost as originally specified and proposed, or a decrease in system efficiency of an amount exceeding 10 percent as originally specified and proposed.



(2)Solar energy system has the same meaning as defined in paragraphs (1) and (2) of subdivision (a) of Section 801.5.



(e)(1)Whenever approval is required for the installation or use of a solar energy system, the application for approval shall be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property, and shall not be willfully avoided or delayed.



(2)For an approving entity that is an association, as defined in Section 4080 or 6528, and that is not a public entity, all of the following shall apply:



(A)The approval or denial of an application shall be in writing.



(B)If an application is not denied in writing within 45 days from the date of receipt of the application, the application shall be deemed approved, unless that delay is the result of a reasonable request for additional information.



(C)The approval procedures shall include the following:



(i)Require an applicant to notify each owner of units in the building on which the installation will be located of the application to install a solar energy system.



(ii)Ensure equal allocation of usable solar space.



(f)Any entity, other than a public entity, that willfully violates this section shall be liable to the applicant or other party for actual damages occasioned thereby, and shall pay a civil penalty to the applicant or other party in an amount not to exceed one thousand dollars ($1,000).



(g)In any action to enforce compliance with this section, the prevailing party shall be awarded reasonable attorneys fees.



(h)(1)A public entity that fails to comply with this section may not receive funds from a state-sponsored grant or loan program for solar energy. A public entity shall certify its compliance with the requirements of this section when applying for funds from a state-sponsored grant or loan program.



(2)A local public entity may not exempt residents in its jurisdiction from the requirements of this section.



SEC. 2.SECTION 1. Section 714.1 of the Civil Code is amended to read:714.1. (a) Notwithstanding Section 714, an association may impose reasonable provisions that:(1) Restrict the installation of solar energy systems in common areas to those systems approved by the association.(2) Require the owner of a separate interest to obtain the approval of the association for the installation of a solar energy system in a separate interest owned by another.(3) Provide for the maintenance, repair, or replacement of roofs or other building components.(4) Require installers of solar energy systems to indemnify or reimburse the association or its members for loss or damage caused by the installation, maintenance, or use of the solar energy system.(5) Require an applicant to notify each owner of a unit in the building on which the installation will be located of the application to install a solar energy system.(6) Require the applicant to submit to the association a solar suitability survey prepared by a licensed contractor knowledgeable in the installation of solar energy systems, for the association to determine usable solar roof area.(7) Require equitable allocation of the usable solar roof area among all owners sharing the same roof, if the association determines that the roof is suitable for solar installation pursuant to paragraph (6).(b) An association shall not:(1) Prohibit Establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides.(2) Require approval of the membership of the association, by a vote of members owning separate interests in the common interest development, including that specified by Section 4600, for installation of a solar energy system for household purposes on the roof of the building in which the owner resides.An action by an association that contravenes paragraph (1) or (2) shall be void and unenforceable.(c) For purposes of this section:(1) Association has the same meaning as defined in Section 4080 or 6528.(2) Common area has the same meaning as defined in Section 4095 or 6532.(3) Separate interest has the same meaning as defined in Section 4185 or 6564.

SEC. 2.SECTION 1. Section 714.1 of the Civil Code is amended to read:

### SEC. 2.SECTION 1.

714.1. (a) Notwithstanding Section 714, an association may impose reasonable provisions that:(1) Restrict the installation of solar energy systems in common areas to those systems approved by the association.(2) Require the owner of a separate interest to obtain the approval of the association for the installation of a solar energy system in a separate interest owned by another.(3) Provide for the maintenance, repair, or replacement of roofs or other building components.(4) Require installers of solar energy systems to indemnify or reimburse the association or its members for loss or damage caused by the installation, maintenance, or use of the solar energy system.(5) Require an applicant to notify each owner of a unit in the building on which the installation will be located of the application to install a solar energy system.(6) Require the applicant to submit to the association a solar suitability survey prepared by a licensed contractor knowledgeable in the installation of solar energy systems, for the association to determine usable solar roof area.(7) Require equitable allocation of the usable solar roof area among all owners sharing the same roof, if the association determines that the roof is suitable for solar installation pursuant to paragraph (6).(b) An association shall not:(1) Prohibit Establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides.(2) Require approval of the membership of the association, by a vote of members owning separate interests in the common interest development, including that specified by Section 4600, for installation of a solar energy system for household purposes on the roof of the building in which the owner resides.An action by an association that contravenes paragraph (1) or (2) shall be void and unenforceable.(c) For purposes of this section:(1) Association has the same meaning as defined in Section 4080 or 6528.(2) Common area has the same meaning as defined in Section 4095 or 6532.(3) Separate interest has the same meaning as defined in Section 4185 or 6564.

714.1. (a) Notwithstanding Section 714, an association may impose reasonable provisions that:(1) Restrict the installation of solar energy systems in common areas to those systems approved by the association.(2) Require the owner of a separate interest to obtain the approval of the association for the installation of a solar energy system in a separate interest owned by another.(3) Provide for the maintenance, repair, or replacement of roofs or other building components.(4) Require installers of solar energy systems to indemnify or reimburse the association or its members for loss or damage caused by the installation, maintenance, or use of the solar energy system.(5) Require an applicant to notify each owner of a unit in the building on which the installation will be located of the application to install a solar energy system.(6) Require the applicant to submit to the association a solar suitability survey prepared by a licensed contractor knowledgeable in the installation of solar energy systems, for the association to determine usable solar roof area.(7) Require equitable allocation of the usable solar roof area among all owners sharing the same roof, if the association determines that the roof is suitable for solar installation pursuant to paragraph (6).(b) An association shall not:(1) Prohibit Establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides.(2) Require approval of the membership of the association, by a vote of members owning separate interests in the common interest development, including that specified by Section 4600, for installation of a solar energy system for household purposes on the roof of the building in which the owner resides.An action by an association that contravenes paragraph (1) or (2) shall be void and unenforceable.(c) For purposes of this section:(1) Association has the same meaning as defined in Section 4080 or 6528.(2) Common area has the same meaning as defined in Section 4095 or 6532.(3) Separate interest has the same meaning as defined in Section 4185 or 6564.

714.1. (a) Notwithstanding Section 714, an association may impose reasonable provisions that:(1) Restrict the installation of solar energy systems in common areas to those systems approved by the association.(2) Require the owner of a separate interest to obtain the approval of the association for the installation of a solar energy system in a separate interest owned by another.(3) Provide for the maintenance, repair, or replacement of roofs or other building components.(4) Require installers of solar energy systems to indemnify or reimburse the association or its members for loss or damage caused by the installation, maintenance, or use of the solar energy system.(5) Require an applicant to notify each owner of a unit in the building on which the installation will be located of the application to install a solar energy system.(6) Require the applicant to submit to the association a solar suitability survey prepared by a licensed contractor knowledgeable in the installation of solar energy systems, for the association to determine usable solar roof area.(7) Require equitable allocation of the usable solar roof area among all owners sharing the same roof, if the association determines that the roof is suitable for solar installation pursuant to paragraph (6).(b) An association shall not:(1) Prohibit Establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides.(2) Require approval of the membership of the association, by a vote of members owning separate interests in the common interest development, including that specified by Section 4600, for installation of a solar energy system for household purposes on the roof of the building in which the owner resides.An action by an association that contravenes paragraph (1) or (2) shall be void and unenforceable.(c) For purposes of this section:(1) Association has the same meaning as defined in Section 4080 or 6528.(2) Common area has the same meaning as defined in Section 4095 or 6532.(3) Separate interest has the same meaning as defined in Section 4185 or 6564.



714.1. (a) Notwithstanding Section 714, an association may impose reasonable provisions that:

(1) Restrict the installation of solar energy systems in common areas to those systems approved by the association.

(2) Require the owner of a separate interest to obtain the approval of the association for the installation of a solar energy system in a separate interest owned by another.

(3) Provide for the maintenance, repair, or replacement of roofs or other building components.

(4) Require installers of solar energy systems to indemnify or reimburse the association or its members for loss or damage caused by the installation, maintenance, or use of the solar energy system.

(5) Require an applicant to notify each owner of a unit in the building on which the installation will be located of the application to install a solar energy system.

(6) Require the applicant to submit to the association a solar suitability survey prepared by a licensed contractor knowledgeable in the installation of solar energy systems, for the association to determine usable solar roof area.

(7) Require equitable allocation of the usable solar roof area among all owners sharing the same roof, if the association determines that the roof is suitable for solar installation pursuant to paragraph (6).

(b) An association shall not:

(1) Prohibit Establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides.

(2) Require approval of the membership of the association, by a vote of members owning separate interests in the common interest development, including that specified by Section 4600, for installation of a solar energy system for household purposes on the roof of the building in which the owner resides.

An action by an association that contravenes paragraph (1) or (2) shall be void and unenforceable.

(c) For purposes of this section:

(1) Association has the same meaning as defined in Section 4080 or 6528.

(2) Common area has the same meaning as defined in Section 4095 or 6532.

(3) Separate interest has the same meaning as defined in Section 4185 or 6564.

SEC. 2. Section 4600 of the Civil Code is amended to read:4600. (a) Unless the governing documents specify a different percentage, the affirmative vote of members owning at least 67 percent of the separate interests in the common interest development shall be required before the board may grant exclusive use of any portion of the common area to a member.(b) Subdivision (a) does not apply to the following actions:(1) A reconveyance of all or any portion of that common area to the subdivider to enable the continuation of development that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report.(2) Any grant of exclusive use that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report or in accordance with the governing documents approved by the Real Estate Commissioner.(3) Any grant of exclusive use that is for any of the following reasons:(A) To eliminate or correct engineering errors in documents recorded with the county recorder or on file with a public agency or utility company.(B) To eliminate or correct encroachments due to errors in construction of any improvements.(C) To permit changes in the plan of development submitted to the Real Estate Commissioner in circumstances where the changes are the result of topography, obstruction, hardship, aesthetic considerations, or environmental conditions.(D) To fulfill the requirement of a public agency.(E) To transfer the burden of management and maintenance of any common area that is generally inaccessible and not of general use to the membership at large of the association.(F) To accommodate a disability.(G) To assign a parking space, storage unit, or other amenity, that is designated in the declaration for assignment, but is not assigned by the declaration to a specific separate interest.(H) To install and use an electric vehicle charging station in an owners garage or a designated parking space that meets the requirements of Section 4745, where the installation or use of the charging station requires reasonable access through, or across, the common area for utility lines or meters.(I) To install and use an electric vehicle charging station through a license granted by an association under Section 4745.(J) To install and use a solar energy system on the common roof of a residence that meets the requirements of Section 714 and 714.1.(J)(K) To comply with governing law.(c) Any measure placed before the members requesting that the board grant exclusive use of any portion of the common area shall specify whether the association will receive any monetary consideration for the grant and whether the association or the transferee will be responsible for providing any insurance coverage for exclusive use of the common area.

SEC. 2. Section 4600 of the Civil Code is amended to read:

### SEC. 2.

4600. (a) Unless the governing documents specify a different percentage, the affirmative vote of members owning at least 67 percent of the separate interests in the common interest development shall be required before the board may grant exclusive use of any portion of the common area to a member.(b) Subdivision (a) does not apply to the following actions:(1) A reconveyance of all or any portion of that common area to the subdivider to enable the continuation of development that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report.(2) Any grant of exclusive use that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report or in accordance with the governing documents approved by the Real Estate Commissioner.(3) Any grant of exclusive use that is for any of the following reasons:(A) To eliminate or correct engineering errors in documents recorded with the county recorder or on file with a public agency or utility company.(B) To eliminate or correct encroachments due to errors in construction of any improvements.(C) To permit changes in the plan of development submitted to the Real Estate Commissioner in circumstances where the changes are the result of topography, obstruction, hardship, aesthetic considerations, or environmental conditions.(D) To fulfill the requirement of a public agency.(E) To transfer the burden of management and maintenance of any common area that is generally inaccessible and not of general use to the membership at large of the association.(F) To accommodate a disability.(G) To assign a parking space, storage unit, or other amenity, that is designated in the declaration for assignment, but is not assigned by the declaration to a specific separate interest.(H) To install and use an electric vehicle charging station in an owners garage or a designated parking space that meets the requirements of Section 4745, where the installation or use of the charging station requires reasonable access through, or across, the common area for utility lines or meters.(I) To install and use an electric vehicle charging station through a license granted by an association under Section 4745.(J) To install and use a solar energy system on the common roof of a residence that meets the requirements of Section 714 and 714.1.(J)(K) To comply with governing law.(c) Any measure placed before the members requesting that the board grant exclusive use of any portion of the common area shall specify whether the association will receive any monetary consideration for the grant and whether the association or the transferee will be responsible for providing any insurance coverage for exclusive use of the common area.

4600. (a) Unless the governing documents specify a different percentage, the affirmative vote of members owning at least 67 percent of the separate interests in the common interest development shall be required before the board may grant exclusive use of any portion of the common area to a member.(b) Subdivision (a) does not apply to the following actions:(1) A reconveyance of all or any portion of that common area to the subdivider to enable the continuation of development that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report.(2) Any grant of exclusive use that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report or in accordance with the governing documents approved by the Real Estate Commissioner.(3) Any grant of exclusive use that is for any of the following reasons:(A) To eliminate or correct engineering errors in documents recorded with the county recorder or on file with a public agency or utility company.(B) To eliminate or correct encroachments due to errors in construction of any improvements.(C) To permit changes in the plan of development submitted to the Real Estate Commissioner in circumstances where the changes are the result of topography, obstruction, hardship, aesthetic considerations, or environmental conditions.(D) To fulfill the requirement of a public agency.(E) To transfer the burden of management and maintenance of any common area that is generally inaccessible and not of general use to the membership at large of the association.(F) To accommodate a disability.(G) To assign a parking space, storage unit, or other amenity, that is designated in the declaration for assignment, but is not assigned by the declaration to a specific separate interest.(H) To install and use an electric vehicle charging station in an owners garage or a designated parking space that meets the requirements of Section 4745, where the installation or use of the charging station requires reasonable access through, or across, the common area for utility lines or meters.(I) To install and use an electric vehicle charging station through a license granted by an association under Section 4745.(J) To install and use a solar energy system on the common roof of a residence that meets the requirements of Section 714 and 714.1.(J)(K) To comply with governing law.(c) Any measure placed before the members requesting that the board grant exclusive use of any portion of the common area shall specify whether the association will receive any monetary consideration for the grant and whether the association or the transferee will be responsible for providing any insurance coverage for exclusive use of the common area.

4600. (a) Unless the governing documents specify a different percentage, the affirmative vote of members owning at least 67 percent of the separate interests in the common interest development shall be required before the board may grant exclusive use of any portion of the common area to a member.(b) Subdivision (a) does not apply to the following actions:(1) A reconveyance of all or any portion of that common area to the subdivider to enable the continuation of development that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report.(2) Any grant of exclusive use that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report or in accordance with the governing documents approved by the Real Estate Commissioner.(3) Any grant of exclusive use that is for any of the following reasons:(A) To eliminate or correct engineering errors in documents recorded with the county recorder or on file with a public agency or utility company.(B) To eliminate or correct encroachments due to errors in construction of any improvements.(C) To permit changes in the plan of development submitted to the Real Estate Commissioner in circumstances where the changes are the result of topography, obstruction, hardship, aesthetic considerations, or environmental conditions.(D) To fulfill the requirement of a public agency.(E) To transfer the burden of management and maintenance of any common area that is generally inaccessible and not of general use to the membership at large of the association.(F) To accommodate a disability.(G) To assign a parking space, storage unit, or other amenity, that is designated in the declaration for assignment, but is not assigned by the declaration to a specific separate interest.(H) To install and use an electric vehicle charging station in an owners garage or a designated parking space that meets the requirements of Section 4745, where the installation or use of the charging station requires reasonable access through, or across, the common area for utility lines or meters.(I) To install and use an electric vehicle charging station through a license granted by an association under Section 4745.(J) To install and use a solar energy system on the common roof of a residence that meets the requirements of Section 714 and 714.1.(J)(K) To comply with governing law.(c) Any measure placed before the members requesting that the board grant exclusive use of any portion of the common area shall specify whether the association will receive any monetary consideration for the grant and whether the association or the transferee will be responsible for providing any insurance coverage for exclusive use of the common area.



4600. (a) Unless the governing documents specify a different percentage, the affirmative vote of members owning at least 67 percent of the separate interests in the common interest development shall be required before the board may grant exclusive use of any portion of the common area to a member.

(b) Subdivision (a) does not apply to the following actions:

(1) A reconveyance of all or any portion of that common area to the subdivider to enable the continuation of development that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report.

(2) Any grant of exclusive use that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report or in accordance with the governing documents approved by the Real Estate Commissioner.

(3) Any grant of exclusive use that is for any of the following reasons:

(A) To eliminate or correct engineering errors in documents recorded with the county recorder or on file with a public agency or utility company.

(B) To eliminate or correct encroachments due to errors in construction of any improvements.

(C) To permit changes in the plan of development submitted to the Real Estate Commissioner in circumstances where the changes are the result of topography, obstruction, hardship, aesthetic considerations, or environmental conditions.

(D) To fulfill the requirement of a public agency.

(E) To transfer the burden of management and maintenance of any common area that is generally inaccessible and not of general use to the membership at large of the association.

(F) To accommodate a disability.

(G) To assign a parking space, storage unit, or other amenity, that is designated in the declaration for assignment, but is not assigned by the declaration to a specific separate interest.

(H) To install and use an electric vehicle charging station in an owners garage or a designated parking space that meets the requirements of Section 4745, where the installation or use of the charging station requires reasonable access through, or across, the common area for utility lines or meters.

(I) To install and use an electric vehicle charging station through a license granted by an association under Section 4745.

(J) To install and use a solar energy system on the common roof of a residence that meets the requirements of Section 714 and 714.1.

(J)



(K) To comply with governing law.

(c) Any measure placed before the members requesting that the board grant exclusive use of any portion of the common area shall specify whether the association will receive any monetary consideration for the grant and whether the association or the transferee will be responsible for providing any insurance coverage for exclusive use of the common area.