HOA Application Process Details and Parameters
Working with Homeowners Associations can be a confusing and frustrating process. Not all neighborhoods are solar friendly, and some require a complicated application process. Some can also be difficult to communicate with throughout. The purpose of this article is to provide a better understanding of how HOAs operate and to answer questions.
| Row | Expectation |
| A |
Please make sure clients understand their participation may be required in the HOA process. We find that keeping an open line of communication is key to success. |
| B |
Please encourage homeowners to communicate with their HOA and follow up on decisions.
|
| C |
Many HOAs do not communicate at all with installers. |
| D |
Many applications also need homeowner participation by requiring their signature, the neighbor’s signatures, a copy of the property survey, or other additional documents. |
| E |
Homeowners should be made aware that Palmetto will not be able to handle the entire process for most accounts. |
| Row | Item | Details |
| A | Solar Friendly Markets | (AZ, CA, CO, D.C., FL, IL, MA, MD, NV, NJ, NM, TX, VA, WI) |
| B | Does Palmetto Apply? |
No, Palmetto does not apply to the HOA for all relevant projects in any solar-friendly market that has enacted legislation to govern renewable energy initiatives. |
| C | Who owns what? |
The Sales Representative, Channel Partner, and/or client are responsible for processing HOA applications, fee payments, and communication of additional requirements with Palmetto when the property address resides within a solar-friendly market and the HOA’s requirements are within reasonable expectations. |
| Row | Item | Details |
| A | Non-Favorable Markets | (CT, GA, MI, MO, NC, OH, PA, RI, SC) |
| B | Does Palmetto Apply? |
Palmetto applies to the HOA for any project that requires HOA approval in order to receive a permit from the local jurisdiction regardless of market conditions. |
| C | Who owns what? |
Palmetto reimburses application fees and handles communications with the client and HOA during the application process for all accounts in non-solar favorable markets or if receiving the permit requires HOA approval. |
| Row | Touchpoint |
| A |
At Contract Received, the HOA Processing Team sends a message by email and/or text to all non favorable market clients with instructions on the specific HOA process for their project |
| B |
At Engineering Design Complete, the HOA Processing Team sends the final design to all non favorable market clients where an HOA will not allow submission by third parties or the HOA Processing Team submits the design and application requirements directly to the HOA if allowable for third party participation |
| C | The HOA Processing Team follows up with clients, representatives, and/or HOAs to confirm application submission or to check for decision updates until receiving the decision |
| Row |
Item |
| A |
If an association issues a denial at any point in the process, Palmetto will assist the customer with appealing the decision if possible. |
| B |
If the denial is due to street- or front-facing panels, a redesign will be requested from the design team for array reorientation according to the HOA direction in order for the sales representative or channel partner to confirm the client’s wishes regarding an appeal or formal redesign and/or change order |
| C |
If the denial is due to an HOA not allowing solar projects in general in non favorable markets, the project will be removed from internal Palmetto project flow and placed on HOLD during an appeals process and/or slated for cancellation by our Retention team |
| D |
Depending on the HOA, the homeowner may have to present the appeal with Palmetto providing information and assistance if possible. |
Q: Are HOAs and Permitting Jurisdictions (AHJ) the same?
A: No, the HOA is the neighborhood where a customer lives. It has its own set of rules and regulations that are typically governed by an elected Board of homeowners. There is sometimes a second board especially for Architectural Reviews and Changes that decide on projects such as solar panels. Often, these boards are managed by an outside management company. The management company does NOT make decisions and only acts as a facilitator between residents and the Board. The AHJ is the Authority Having Jurisdiction where the customer lives and has rules and regulations regarding building and electrical permits for the area it serves. These can be a city, town, or county. The two do not cancel each other out, but if it is not required by the AHJ, it is not required for installation by Palmetto.
Q: What if the AHJ doesn't require approval, but the HOA does?
A: We suggest assisting the homeowner with applying to their HOA for their installation project to avoid any fines or penalties from the HOA. We are happy to send an information packet at the homeowner's request that includes everything needed to apply.
Q: If the homeowner told me they don't want to wait, can I just tell you and we can install?
A: No. If the homeowner chooses to bypass, we need a verbal or, preferably, written confirmation directly from the homeowner. They can answer a text or email, or we can give them a call. We determine eligibility on a case by case basis.
Q: How do I know if the customer has an HOA? Or if they allow solar in the neighborhood?
A: Please ask customers at the point of sale. This is crucial information as HOAs can ultimately stop a project from being installed. Ask the homeowner if they pay dues to an association. Get as much contact information as you can. Request to see a copy of the HOA guidelines if possible. Ask if they have applied for an Architectural Change before, was it an easy process? If there are other solar panels in the neighborhood, it is a good indication they allow panels but is still not a guaranteed approval.
Q: How long will it take to hear back from the HOA?
A: Most applications indicate the Board has up to 30 business days to make a decision. There are some that up to 60 and sometimes even 90 days. Most applications do not take long to process but can take the full 30/60/90 days.
Q: If they have not made a decision in 30 days, is it an automatic approval?
A: Not usually. Unless the application specifically has that verbiage, this is not a standard rule for all HOAs. Furthermore, if approval is required for the permit, we cannot proceed without it regardless of how long it’s been. If it is not required for the permit, the homeowner still may wish to wait for it.
Q: Can my homeowner just sign the indemnification document to move to install if they don’t want to wait for their HOA?
A: This document is already built into the contract the homeowner has signed with Palmetto and there is no need to have them resign it. However, keep in mind we can only proceed to install if approval is not required for permits, regardless of whether or not the homeowner wants to wait. These situations are reviewed on a case by case basis per market.
Q: Other houses in this neighborhood have solar, it shouldn’t be a problem right?
A: Most of the time, other houses nearby with solar is a good indicator that the homeowner’s project will be approved. It’s important to keep in mind a few things, however. As crazy as it sounds, neighbors can actually be in two different HOAs, governed by two different sets of rules. HOAs frequently change management companies and the process may be different now. Depending on the visibility of the panels, homes in different areas of the neighborhood can be treated differently. It’s best not to assume and continue with the application process as normal.
Q: I have already installed this HOA, do we have to wait for approval again?
A: YES. There are usually repercussions if homeowners do not follow the proper procedure for getting approval prior to starting any type of architectural change. In these situations, educating the homeowner on how to submit and getting the application submitted as soon as possible is key. We do not recommend not getting approval, as it almost always causes issues for the homeowner.
Q: The neighbors are never home, what if I can’t get their signatures?
A: Because this is a requirement from the management company, not Palmetto, it is best to reach out directly to the management company for an answer. Most are lenient about the signatures since they are more of a courtesy than anything.
Q: Where can I find a property survey/plat map/plot map?
A: This should have been provided to the homeowner in their closing documents when purchasing the home. If they do not have one, the realtor or HOA may have a copy available. There is also one provided by Palmetto in the engineering packet.
This is a requirement from the management company and should be discussed with them if a copy is not available.
Q: I don’t agree with the HOA’s decision to require a redesign.
A: Palmetto will prepare an appeal, as well as redesign if possible. We also push for the original design, as it was designed to receive optimum solar production and will have the highest economic benefits for the homeowner. Some HOAs will still deny regardless. The best way to fight the decision is for homeowners to get involved with their Board. We encourage homeowners and reps (and Palmetto, if local) to attend meetings and educate Board members about the benefits of solar. Misinformation is one of the biggest reasons for denials. Aesthetics is a close second, and while there is less we can do about that, we have been able to get decisions overturned by going directly to the Board.
Q: Aren't there solar access laws in North Carolina?
A: Yes, and you can read more about them here. Keep in mind the law is a bit vague and does not give solar full rights to override the HOA. They are still allowed to deny panels. It is best to let the homeowner decide if they want to go against the decision of the Board.
Q: Why can’t Palmetto do it all?
A: Many management companies require the homeowner to sign and/or submit the application as part of their process and we have to respect their requirements. They also will often only communicate decisions to the homeowner, so having their involvement from the beginning is ideal.
Q: Who should the homeowner contact with questions or to report a decision?
A: HOA questions and concerns can be directed to the HOA Team at HOA@palmetto.com or by calling (855) 339-1831.
Q: What is the HOA Application Process?
A: Please contact HOA@palmetto.com for any questions on HOA process.
Q: How do I get a Certificate of Insurance?
A: Many HOA's in IL require this for their applications. Please email HOA@palmetto.com to request one.
Q: What if the customer chooses to install without approval and the HOA gets mad?
A: As per the contract signed by customers, they are fully responsible for any fees or removals that the HOA may issue. It is very important your homeowner understands this, and also why we encourage you as the sales rep to assist them with applying for approval in their HOA, whether it's required or not. We are also happy to answer questions so please contact HOA@palmetto.com at any time during the process.
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