House Bill 5028 – Homeowners’ Energy Policy Act to Affect Residential Association Guidelines Statewide
House Bill 5028 (HB 5028), officially cited as the Homeowners’ Energy Policy Act (“Act”), was signed into law by Governor Whitmer on June 27, 2024. Effective on September 25, 2024 (“Effective Date”), HB 5028 limits the ability of homeowners’ associations (“HOAs”) to control the aesthetics of their communities by invalidating certain provisions of HOA agreements that prohibit certain energy-saving improvements or modifications (“Solar Energy Systems”). This is a broad term under the Act, with examples given including, but not limited to:
- Clotheslines
- Rain Barrels
- Reflective Roofing
- Energy-Efficient Windows
- Solar Panels
- Solar water heaters
- Electric vehicle supply equipment
HOAs must not only allow these items, they must also allow a member to replace, maintain, install, or operate Solar Energy Systems, or “to make auxiliary changes” necessary to do so. This further broadens the scope of the Act by potentially overriding other provisions in HOA documents such as those limiting tree removal or others pertaining to landscaping.
The Act requires HOAs to adopt a written solar energy policy statement (“Solar Statement”) by September 18, 2025, essentially adopting the Act. The Act provides some general guidance as to what is deemed a conforming Solar Statement, including how it can be noticed to members, but it is ultimately up to the HOAs to draft the Solar Statement assure compliance.
The Act does not apply to shared roofs or common areas, so HOAs may continue to prohibit Solar Energy Systems in those areas, however, as an example of the questions the Act offers it is silent on whether that is intended to mean limited or general common areas, and speaks only to shared roofs, and not shared walls or balconies of multi-unit buildings.
The Act does provide HOAs with some control. They may adopt Solar Statements imposing reasonable conditions concerning the maintenance, repair, replacement, or removal of damaged or inoperable Solar Energy Systems, but only if the if those conditions are no more burdensome than those imposed on non-solar energy projects. The only way this is possible is if an HOA also has a policy related to damaged or inoperable non-solar energy projects. HOAs may also limit panels to being installed no more than six inches from and parallel to the roofline of a home, and if on the ground in a fenced-in area to be below the top line of the fence. Further, the Act requires that as of the Effective Date, all members of HOAs who wish to install Solar Energy Systems must submit a written application to their HOA containing their name, address, contact information of the person that will install the Solar Energy System, an image of the proposed layout of the Solar Energy System, and a description of the solar energy system to be installed.
Should you wish to read the Act in its entirety, please click here:
https://www.legislature.mi.gov/Bills/Bill?ObjectName=2023-HB-5028
GGTM has extensive experience in assisting residential associations in drafting and implementing governing documents. Should you wish to consult with an attorney regarding this new legislation or legal matters concerning your Association, contact us.
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