Showing posts with label Janelle H. Dempsey. Show all posts
Showing posts with label Janelle H. Dempsey. Show all posts

Friday, December 7, 2018

Solar Energy and the Potential Impact on Condominiums



With climate change at the forefront of many local and national discussions, some cities and states are
taking decisive actions in order to increase renewable energy capabilities. For example, effective in January 2017, all new buildings in the city of San Francisco with one to ten stories are required to have roof-mounted solar panels, also known as solar photovoltaic (PV) systems. Earlier this year, California became the first state in the US to require PV systems for all new residential buildings—including condominiums—that have fewer than four stories. It is possible that the California mandate, which will go into effect in 2020, could expand the solar market by contributing to the normalization of PV systems. This would not be surprising given the environmental benefits of using a renewable energy source, low maintenance costs, and financial incentives, such as reduced electricity bills and tax credits.

If buyers come to expect (and possibly even prefer) condos with solar power, older associations may feel pressure to consider installing PV systems in order to protect their property values in a competitive market.

While not necessarily one of the current leaders in renewable energy usage, Massachusetts certainly is doing better than some states. In fact, over the summer, a bill was passed by the Massachusetts Senate, but has yet to pass in the House, which would remove the state’s caps on net metering and set a 100% renewable energy mandate, among other things. Given the state’s apparent commitment to addressing climate change, it is conceivable that Massachusetts could pass a law similar to the California solar requirement in the near future.

If Massachusetts were to follow Californian’s lead and enact a solar mandate, new developments could have to absorb the added construction costs of PV system installation. Presumably, such costs could be passed along to buyers, but if solar power becomes the norm and not simply a novelty seen only in so-called “green buildings,” one must consider whether developers will actually see a return on their investment; PV systems could eventually become expected, particularly in smaller buildings, and therefore not something for which buyers are willing to pay a premium. To avoid the higher cost of a unit with solar power, some buyers may opt to purchase units in exempted condominiums, such as larger new construction buildings or existing condos that might be grandfathered in under a new mandate. On the other hand, the cost of PV systems has declined in recent years due to industry advances, so the cost to developers may become relatively minimal.

Even if a Massachusetts solar panel requirement were to apply only to new construction, such legislation also has the potential to impact existing condominiums. If buyers come to expect (and possibly even prefer) condos with solar power, older associations may feel pressure to consider installing PV systems in order to protect their property values in a competitive market. Additionally, even without a Massachusetts version of the California law, given the rise in the number of eco-conscious green buildings in and around the Greater Boston Area, some associations may find it beneficial to install environmentally friendly features like solar panels sooner rather than later.

However, installing a PV system in an existing condominium controlled by the association of unit owners is quite different from—and considerably more complicated than— doing so in a new build that is still under developer control. As such, below are some of the factors an association should address when considering whether to install solar panels:

1. Is the building’s roof suitable for solar panels?
- A PV system requires sunlight. Contact a solar contractor to conduct an onsite assessment to evaluate whether the position of your condominium’s roof receives enough sunlight for solar power.

- Determine the age and condition of the roof. PV systems often come with warranties lasting as long as 25 years. If the roof will need to be replaced before the PV system, it may be prudent to (a) consider replacing the roof prior to installing solar; (b) factor in the additional cost of eventual removal and reinstallation of the PV system; or (c) wait to install solar panels until it is possible to also replace the roof at the same time.

2. Are there technical challenges to installing a PV system?
- Often at no cost, a solar contractor can assess the feasibility of installing a PV system and identify potential technical barriers, including: (a) whether there is sufficient roof space and structural support for the system; (b) zoning requirements that could restrict a PV system; and (c) issues with connecting to the utility grid.

3. Is there sufficient trustee and unit owner support for a PV system?
- As an improvement under the Massachusetts Condominium Act, converting to a PV solar system will require a vote and association approval, as set forth in the condo’s governing documents, and M.G.L. c. 183A § 18.

- Before putting it to formal vote, somewhat early in the planning stages, it may be useful to communicate with members of the association to assess the level of interest in going solar. Share the information you already have and identify the information that will be obtained before a proposal will be submitted to the association.

4. What are the different models of PV systems?
- The association can purchase, install, and maintain its own, on-site solar power system.

- Alternatively, an association could consider a third-party model, such as a solar lease or a power purchase agreement (PPA). Under a solar lease, the condominium makes scheduled, pre-determined rental payments to a solar leasing company which installs and owns the PV system located on the condominium property. Under a PPA, a project developer installs, owns, and operates the PV system on the condominium property, and the condominium agrees to purchase the power generated by the system at a set per-kilowatt-hour cost, which is typically competitive with the condominium’s electric utility rate.

- Another option is community-shared solar (also referred to as community solar, solar farms, or solar gardens). Community solar utilizes a large, off-site, solar farm to supply energy to multiple parties while reducing energy costs. It can be an option where shading and or structural issues render on-site PV solar impossible.

5. How will the association fund the PV system project?
- Depending on the size of the condominium and who will benefit from the PV system, the association may be able to fund the project through reserves and/or special assessments.

- Where the association lacks sufficient reserve funds, or it does not want to levy special assessments against unit owners, consider applying for a condominium association loan, including a solar-specific loan, which is available to condominiums.

- The condominium’s governing documents will set forth the required voting and approval procedures, which will depend on the type and scope of the project.

There are multiple factors for condominiums to consider when navigating the conversion to solar power, and this article barely scratches the surface. As a result, it is important that associations seek professional advice, particularly with regard to approval requirements, easements, and contracts with a solar contractor, lender, leasing company, and/or solar project developer.

Originally posted November 30, 2018 on tlawmtm.com: https://www.lawmtm.com/solar-panels-condominium-law.html
Janelle received her J.D. from Northeastern University School of Law where she was Editor-in-Chief of the Northeastern University Law Review and a teaching assistant for the property law and legal research and writing programs. During law school and prior to joining Moriarty Troyer & Malloy LLC, Janelle was a federal judicial intern for the Honorable Denise J. Casper, U.S. District Court, District of Massachusetts.

Should you have any questions regarding this article, please do not hesitate to contact Janelle Dempsey at 617-934-4550 or via email at jdempsey@lawmtm.com.

Tuesday, March 6, 2018

Making Reasonable Modifications and Accommodations for Residents with Disabilities: What Does the Law Require and How Can Condominium Associations Avoid Violating It?



It seems there has been a recent surge in the number of news stories about travelers bringing exotic animals and other livestock onto
airplanes as emotional support animals. In fact, the popularity of animals on commercial flights has become so great that some airlines have begun taking a proactive approach to the new trend by revisiting and revising their policies on the subject. Making accommodations for those with emotional support animals, however, is by no means limited to the airline industry. As Kim Bielan wrote last fall in her article, Accommodating Reasonable Accommodations for Service and Emotional Support Animals, fair housing laws that provide individuals with disabilities the protection to have emotional support animals—which are distinct from and are not to be confused with trained service animals—also extend to the condominium context. In addition to providing for support animals in private housing, state and federal laws also impose obligations on condominium associations to make certain reasonable accommodations and/or modifications for persons with disabilities. Such obligations are meant to afford everyone the ability to use and enjoy their property, regardless of disability status.

As the number of public discussions surrounding disability accommodations continues to rise, condominium associations will likely receive more requests from residents to make exceptions to policies or to make modifications to the existing premises. For example, requests for additional disabled parking spaces, wheelchair ramps, and automatic doors are not uncommon. This area of law is complex, and it can be confusing for associations. The questions we hear from trustees often relate to what the law requires and who is responsible for the cost. My goal in writing this article is to provide a background of the disability discrimination laws that most often impact condominiums and to give you a blueprint of sorts to use as a starting point if and when a unit owner asks for an accommodation or modification of the property.

Such obligations are meant to afford everyone the ability to use and enjoy their property, regardless of disability status.

Both the state anti-discrimination statute, Massachusetts General Laws Chapter 151B, and the federal Fair Housing Act, 42 USC §3604 (and their respective regulations) prohibit disability-based housing discrimination. Importantly, these laws apply to condominiums to the same extent as other forms of housing. In some cases, and as I’ll explain below, state law imposes even greater responsibilities than the federal statute.

Reasonable Accommodations

Under the state and federal law, it is considered discrimination for a condominium association to refuse to make reasonable accommodations in rules, practices, policies, or services when such accommodations are necessary to afford a disabled person equal opportunity to use and enjoy the premises, including private units and public and common use areas. Whether such an accommodation is reasonable, requires highly fact-specific inquiry and a case-by-case determination, but cost alone is typically not sufficient to render an accommodation unreasonable.

Example 1. A condominium has a “no pets” policy. A deaf resident requests that the association allow him to keep a dog in his unit as a reasonable accommodation. The resident explains that the dog is an assistance animal that will alert him to several sounds, including knocks at the door, sounding of the smoke detector, the telephone ringing, and cars coming into the driveway. The association must make an exception to its “no pets” policy to accommodate this tenant.

Example 2. A condominium has a policy of providing unassigned parking spaces to residents. A resident with a mobility disability, who is substantially limited in her ability to walk, requests an assigned accessible parking space close to the entrance to her unit as a reasonable accommodation. There are available parking spaces near the entrance to her unit that are accessible, but those spaces are available to all residents on a first come, first served basis. The association must make an exception to its policy of not providing assigned parking spaces to accommodate this resident.

Example 3. As a result of a disability, a resident is physically unable to open the dumpster placed in the parking lot by the condominium association for trash collection. The resident requests that the association send a maintenance staff person to his unit on a daily basis to collect his trash and take it to the dumpster. Because the association is a small operation with limited financial resources and the maintenance staff are on site only twice per week, it may be an undue financial and administrative burden for the association to grant the requested daily trash pick-up service. Accordingly, the requested accommodation may not be reasonable.

Reasonable Modifications

State and federal law also prohibit refusing reasonable modifications of existing premises occupied or to be occupied by such person, if the modifications are necessary to afford the individual full enjoyment of the premises. Examples of such modifications could include ramping the main entrance of a condominium, lowering kitchen cabinets inside of a unit, and installing a shower grab bar. There must be an identifiable relationship between the request and the individual’s disability.

Example 1. A tenant, whose arthritis impairs the use of her hands and causes his substantial difficulty in using the doorknobs in his apartment, wishes to replace the doorknobs with levers. Since there is a relationship between the tenant’s disability and the requested modification and the modification is reasonable, the housing provider must allow him to make the modification at the tenant’s expense.

Example 2. A resident with a mobility disability asks the condo association to permit him to change his roofing from shaker shingles to clay tiles and fiberglass shingles because he alleges that the shingles are less fireproof and put him at greater risk during a fire. There is no evidence that the shingles permitted by the association provide inadequate fire protection, and the person with the disability has not identified a nexus between his disability and the need for clay tiles and fiberglass shingles. The association is not required to permit the modification because the resident’s request is not reasonable and there is no nexus between the request and the disability.

While both statutes make it unlawful to refuse to permit reasonable modifications, federal and Massachusetts law differ with respect to who is responsible for the cost of the changes. Under the FHA, reasonable modifications must be allowed at the expense of the disabled resident. However, the FHA, as with all federal law, establishes only the minimum requirements with which state laws must comply. Thus, states can impose additional requirements as long as the federal minimum is met.

The Massachusetts anti-discrimination statute, unlike the FHA, sets forth that reasonable modification could come at the expense of the association, as opposed to the resident. Pursuant to state law, the question of who pays for a reasonable modification begins with: 1) the total number of units in the condominium and; 2) ownership of the area to be modified
Under the Massachusetts statute—and barring undue hardship, which I will explain below—condo associations for properties with ten or more units could be responsible for the cost of making reasonable modifications to parts of the existing premises which are owned by the association as common area. For example, Massachusetts law states that where a condominium contains at least ten units, and the front entrance to the building in which a unit is located consists of no more than five steps, installing a wheelchair ramp for a disabled resident is a reasonable modification that could come at the expense of the association.

As with accommodations to rules or policies, however, whether a modification is reasonable is a case-by-case determination that requires a highly fact-specific inquiry, and the analysis does not end with the individual characteristics of the resident. Indeed, even if the modification is necessary to afford the disabled individual full enjoyment of the premises, it could nevertheless be deemed unreasonable. Under Massachusetts law, for example, modification to condominium common area paid for by the association is not reasonable—and therefore, is not required—if it would cause an undue hardship.

There is no bright-line rule for what constitutes undue hardship, so courts look at a variety of factors. Some of the factors that a court might consider when determining whether the burden caused by paying for an otherwise reasonable modification rises to the level of undue hardship include:

▪ the nature and cost of the modification needed;

▪ the nature and cost of the modification needed;

▪ the extent to which the modification would materially alter the marketability of the property;

▪ the overall size of the property, including but not limited to, the number and type of units, size of budget, and available assets, and;

▪ the ability of the association to recover the cost of the modification through a federal tax deduction.

It is important to understand that these factors and any other relevant information are considered as a whole, rather than in isolation.

Best Practices

▪ Create a procedure for handling reasonable accommodation/modification requests and make residents, and prospective residents, and board members aware of this policy. It should state, at minimum, how a person may request an accommodation or modification, to whom the person should make the request, and the time frame for approvals. This may aid individuals with disabilities in making requests and it may aid associations in handling requests. Further, in the event of a dispute later on down the line, having a procedure in place could help provide records to show that a request received proper consideration. NOTE: A request may not be refused because a resident fails to follow the procedure adopted by the association, and a request need not include the words “reasonable accommodation.”

▪ Seek only information that is needed to evaluate if a requested accommodation/modification may be necessary because of a disability:

- If the individual’s disability is obvious or otherwise known, and if the need for the requested accommodation/modification is also readily apparent or known, the provider (i.e., the condo association) may not request any additional information.

- If the disability is known or readily apparent to the association, but the need for the accommodation/modification is not, the association may request only information that is necessary to evaluate the disability-related need (i.e., whether the accommodation/modification is needed due to the disability). Such information must be kept confidential, and it must not be shared with other persons unless they need the information to make or assess a decision to grant or deny an accommodation/modification request, or unless disclosure is required by law (e.g., a court-issued subpoena requiring discloser).

- If the disability is not known or obvious, the association may request reliable disability-related information that: 1) is necessary to verify that the person meets the definition of being disabled (i.e., she has a physical or mental impairment that substantially limits one or more major life activities); 2) describes the needed accommodation/modification, and; 3) shows the relationship between the person’s disability and the need for the requested accommodation/modification.
Depending on the circumstances, information verifying that the person meets the definition of disabled can usually be provided by the individual herself (e.g., proof that an individual under the age of 65 receives Supplemental Security Income or Social Security Disability Insurance benefits, or a credible statement by the individual). A doctor, a peer support group, a non-medical service agency, or a reliable third party who is in a position to know about the individual’s disability may also provide verification of a disability. In most cases, a resident’s medical records or detailed information about the nature of a person’s disability is not necessary for this inquiry.

▪ Provide prompt responses to reasonable accommodation/modification requests as an undue delay in responding may be deemed to be a failure to provide a reasonable accommodation/modification.

▪ Treat each request on an individual basis.

▪ Engage in an interactive process with the person requesting an accommodation/modification, even when the request would pose an undue burden.

- If the request is unreasonable, it is advisable to discuss with the resident whether there is an alternative accommodation/modification that would effectively address the requester’s disability-related needs.

- If the request is reasonable, but more feasible alternatives exist, the association may discuss with the resident if she is willing to accept an alternative accommodation/modification. However, keep in mind that the resident is not obligated to accept an alternative suggested by the association if she believes it will not meet her needs and her preferred accommodation/modification is reasonable.

- A failure to reach an agreement on an accommodation/modification request is effectively a decision by the association to not grant the request, and the resident could file a complaint to challenge the decision with the Department of Housing & Urban Development (HUD) or the Massachusetts Commission Against Discrimination (MCAD). Alternatively, the resident could file suit in either federal district court or Massachusetts Superior Court.

▪ Finally, it is recommended that when faced with a reasonable accommodation or modification request, the association seek legal advice from its counsel to ensure compliance with the current laws in this complex and ever-changing area.

Originally posted February 26, 2018 on tlawmtm.com:

Janelle is an associate in Moriarty Troyer & Malloy LLC’s litigation and real estate departments and a REBA member. She concentrates her practice in condominium and real estate litigation, permitting matters, and land use litigation, as well as leasing and transactional matters.

Janelle received her J.D. from Northeastern University School of Law where she was Editor-in-Chief of the Northeastern University Law Review and a teaching assistant for the property law and legal research and writing programs. During law school and prior to joining Moriarty Troyer & Malloy LLC, Janelle was a federal judicial intern for the Honorable Denise J. Casper, U.S. District Court, District of Massachusetts.