Researcher: JS Page 1 4/3/24
OLR Bill Analysis
sHB 5168
AN ACT CONCERNING SOLAR INSTALLATIONS IN
CONDOMINIUMS AND COOPERATIVES.
SUMMARY
This bill requires common interest communities to assess a unit
owner for any increase in common expenses (e.g., maintenance, repair,
or insurance costs) that result from the owner’s addition, alteration, or
improvement. (Common interest communities include condominiums,
cooperatives, and planned communities.)
Separately, the bill prohibits enforcing any provisions in a common
interest community’s declaration or bylaws that unreasonably restrict
solar generating systems (i.e., solar panels) on the roofs of single-family
detached units or that otherwise conflict with the bill’s solar panel
requirements, beginning January 1, 2025. It also establishes (1) a solar
panel approval process for unit owners and common interest
community associations to follow; (2) terms to which the unit owner
must agree (e.g., to assume certain costs and indemnify the association);
and (3) a period during which associations may opt out of the bill’s solar
panel-related requirements. In doing so, the bill repeals a current,
narrower provision that restricts planned community associations (but
not condominiums or cooperatives) from barring solar panels on units
that do not share a roof.
The bill additionally authorizes associations to install solar panels on
any common elements for all unit owners’ use and develop rules for
their use. It also makes minor and conforming changes.
EFFECTIVE DATE: January 1, 2025, except the provision on increases
in common assessments is effective October 1, 2024.
APPROVAL PROCESS 2024HB-05168-R000225-BA.DOCX
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The bill requires unit owners to get their association’s approval to
install solar panels. The unit owner must apply with the association’s
executive board and do so in the form and way directed by the board.
Upon receiving the unit owner’s application, the board must
acknowledge receipt in writing within 30 days and issue a written
decision, or request additional information, within 60 days. The
application is deemed approved if the board does not deny it or request
more information within this timeframe.
The board must process these applications in the same way
applications for additions, alterations, or improvements are processed
under the association’s bylaws or declaration. And it may not
unreasonably withhold approval if the unit owner complies with the
bill’s requirements.
AGREEMENT TERMS AND OWNER RESPONSIBILITI ES
Under the bill, if the application is approved or deemed approved,
the unit owner and association must enter a written agreement. The
agreement may be recorded in the land records of the town or towns in
which the common interest community is located. The agreement must
require the unit owner to:
1. comply with the declaration or bylaws regarding additions,
alterations, or improvements as applicable;
2. hire a registered and insured contractor to install the solar panels
who must, within 14 days after the unit owner and association
execute the agreement, (a) provide a certificate of insurance for at
least $1 million of liability coverage for the association, its
manager, and the unit owner; (b) provide proof of any legally
required workers’ compensation insurance; and (c) give the
association a mechanic’s lien waiver in its favor;
3. pay any installation costs (e.g., increased master policy
premiums, the association’s attorney’s fees, fees for engineers
and other professionals, and fees for permits and zoning
compliance requirements); 2024HB-05168-R000225-BA.DOCX
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4. indemnify other unit owners and the association, its executive
board, officers, directors, and managers for any damage, loss, or
financial obligation the solar panels cause; and
5. assume full responsibility, including sole financial responsibility,
for maintaining, repairing, and replacing the unit’s roof.
The bill makes the unit owner, or any successive owner who assumed
the unit’s title and the owner’s duties under the bill, responsible for
certain costs, including costs to:
1. repair, maintain, or replace the solar panels;
2. repair damage to the association’s common elements or units due
to installing, using, maintaining, repairing, removing, or
replacing the panels;
3. repair the roof after the panels are removed; and
4. cover common expenses for losses due to the solar panels that are
uninsured under the association’s master policy.
Under the bill, the association may also assess the unit owner for any
uninsured portion of a loss (including deductibles) it incurs due to the
panels. The association may do so regardless of whether it submits an
insurance claim.
Regulatory Requirements
The bill explicitly requires the solar panels to comply with all
applicable state, federal, and local health and safety standards and
requirements.
Attorney’s Fees
Under the bill, if the association initiates a legal action to enforce
compliance with the written agreement or any of the bill’s related
requirements, the prevailing party must be awarded reasonable
attorney’s fees.
SUCCESSIVE OWNERS AND BUYERS 2024HB-05168-R000225-BA.DOCX
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The bill requires the unit owner, or any successive owner, to disclose
to any prospective buyers (1) the existence of the solar panels and any
related agreements with the association, (2) the unit owner’s
responsibilities associated with the solar panels, and (3) that the buyer
will own the solar panels, unless they are removed before the sale.
The association may require the unit owner to remove the panels
before the sale if the buyer does not agree to (1) take ownership of the
solar panels; (2) be bound by the indemnification agreement; and (3) be
responsible for the full costs of maintaining, repairing, and replacing the
unit’s roof.
OPT-OUT
Associations formed by January 1, 2025, may opt out of the bill’s solar
panel prohibition and requirements if they do so by December 31, 2026.
To opt out, at least 75% of the association’s board of directors must vote
to do so. Within 30 days after the favorable vote to opt out, the
association must record notice of it in the land records of the town or
towns in which the association owns real property (e.g., land or
buildings).
COMMITTEE ACTION
Planning and Development Committee
Joint Favorable Substitute
Yea 21 Nay 0 (03/15/2024)