COURT SAYS HOMEOWNERS HAVE BURDEN OF PROVING HOA RESTRICTIONS ARE UNREASONABLE

This case involved a dispute between two owners of a home (“Owners”) and their homeowners associations (collectively, “the Association”) over owners’ right to install solar panels on their home.

Owners obtained approval for the installation of the solar panels from the Association’s Design Review Board, but the Association imposed conditions on the installation that were in accordance with the requirements detailed in an unrecorded document that was not part of the Associations CC&Rs. The requirements prohibited solar panels on any part of a home where they are visible from the street and limits the total solar panel coverage to 25% of the roof area. Because Owners were informed that compliance with the restrictions would reduce the solar panel system’s energy production by 36 percent, Owners requested a variance, which was denied by the Association.

After the Association denied their request for a variance, Owners filed suit against the Association seeking alleging various claims, including a declaratory judgment that they were entitled to install the solar panels as originally proposed. Owners contended that a state statute permitted the installation of solar panels and permitted homeowners associations to establish “reasonable” restrictions relative to the installation of solar panels. Owners also contended that the Association’s CC&Rs did not contain any restrictions regarding the installation of solar panels. The trial court granted judgment in favor of: