Our board is considering securing a 5-year loan for the purpose of installing
solar panels to generate electricity and solar heating for our pools. We
estimate the costs will be almost completely off-set by the savings in our gas
and electric expenses. We plan to submit a ballot to all home owners to confirm
approval from a majority before we proceed. Is this required? And how will this
indebtedness impact individual home owners?
If the loan requires a special assessment of more than 5% of the budget, you need
homeowner approval. The indebtedness should have no
effect on owners' credit since the loan will be to the association and not to individual
options include Solar Leases and Power Purchase Agreements (PPA). Under a Solar
Lease or PPA, a third party pays for and owns the solar installation, taking advantage of the tax benefits and
selling the electricity generated to the association. The advantages to the association are (a) no or minimal up-front costs, (b) lower energy rates and
(c) certainty about the rates/tariffs the association will be paying for energy
for years to come (typically 15-20 years).
: Associations needing legal assistance can contact us
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