HOA’s Failure to Properly Deny Owners’ Application for Solar Panels Results in Approval

This case involved a dispute between two homeowners (“Owners”) and their homeowners association (“Association”) over Owners’ right to install solar panels on the roof of their house.

Association’s Declaration contained a provision prohibiting improvements and exterior additions until the plans and specifications had been submitted and approved in writing by Association’s Board of Trustees (directors), or by Association’s Design Review Committee that consisted of three representatives appointed by the Board of Trustees. The provision also provided that if the Board of Trustees or the committee fail to approve or disapprove the improvement or exterior addition within 14 days after submittal of the plans and specifications, “approval will not be required and the Article will be deemed to have been fully, complied with.”

Owner submitted an application to Association’s Board of Trustees for installation of solar panels on the rear slope of his roof on May 26, 2017. The application was then forwarded to an architect for review. On May 31, 2017, the architect recommended to one of the Trustees that the application be approved on the condition that the panels be installed on the rear slopes of the roof. The Trustee then forwarded both the application and the architectural review to the other two Trustees. Thereafter, the individual Trustees had several email and telephonic communications amongst themselves where they agreed that the application should be disapproved. On June 3, 2017, a letter disapproving Owner’s application was prepared and circulated among the Trustees. The June 3, 2017 denial letter was then sent to Owners.

Upset with the denial of their application, Owners filed suit against Association in which Owners sought a declaration by the court that Association’s disapproval of their application was not in accordance with the Association’s Declaration because Association did not properly act to approve or disapprove Owners’ application within 14 days. Owners contended: