Updates on the Corporate Transparency Act: Efforts Underway to Obtain Clarity as to Condominium Associations’ Obligations

Impact of Clean Energy Bill S.2967 on Community Associations

Background:

On November 14, 2024, the Massachusetts state legislature passed S.2967, an act created for the purposes of “promoting a clean energy grid, advancing equity and protected ratepayers,” in order to streamline energy deployment across Massachusetts. On November 22, 2024, Governor Maura Healey signed S.2967 into law. The new law is intended to expand the electronic vehicle (EV) charging network; incentivize innovative technologies such as battery storage, fusion energy, advanced metering and meter socket adapters; and includes measures with the objective of protecting residents from high energy costs.

Now that the bill has become law, community associations are required to adhere to its provisions, which are likely to introduce operational complications.

Sections 84-86 of S.2967 directly impacts condominium associations:

Sections 84-86 of S.2967 amend varying provisions of the Massachusetts Condominium Act, G.L. c. 183A. Specifically:

• Section 84 of S.2967 amends certain language contained in G.L. c. 183A, § 6;

• Section 85 of S.2967 replaces, in its entirety, clause 6 of G.L. c. 183A, § 10(b); and

• Section 86 of S.2967 inserts a wholly new section, G.L. c. 183A, § 10A, in the Condominium Act.

The relevant changes may be reviewed here.

Sections 84 and 85 of the law authorize condominium boards to install energy efficiency devices and EV chargers in common areas and aim to increase the efficiency of heat pumps by allowing the installer to use the most up-to-date refrigerants. The law goes on to state that if the organization of unit owners receives approval of the majority of unit owners in attendance at a meeting for which notice was duly given and which was held for the purpose of voting on the installation of such devices, the cost of installation of such devices installed in the common areas and facilities shall be the expense of the organization of unit owners, which may be passed on to individual unit owners as a special assessment. However, if such device is installed in each individual unit or in substantially all the units in the condominium, the cost may be attributable to each unit owner in the amount of the cost of the item installed.

Section 86 of the law pertains to the installation of electric vehicle charging stations at condominiums, homeowners associations and other community associations. (Notably, Section 86 amends the Condominium Act by inserting a new § 10A, which contains standalone definitions, including a definition for “association” that appears to encompass both condominium and non-condominium associations. As this language is contained within the Condominium Act, the full extent of the amendment appears ambiguous; in any event, it certainly is applicable to condominiums.). Section 86 prohibits association boards from unreasonably restricting an owner from installing electric vehicle supply equipment, both on or in an area subject to an owner’s separate interest, or in an area in which the owner has exclusive use rights. However, in installing such electric vehicle supply equipment, the owner is subject to “reasonable restrictions” imposed by the board. “Reasonable restrictions” are defined under Section 86 as “restrictions that do not significantly: increase the cost of electric vehicle supply equipment, as defined in section 2 of Chapter 25B or the installation thereof; or (ii) significantly decrease its efficiency or specified performance or effectively prohibit the installation.”

Electric vehicle supply equipment that is installed on or in an area subject to an owner’s separate interest or in an area in which the owner has exclusive use rights may be installed at the unit owner’s expense, by a licensed contractor or electrician, and must conform to all applicable health and safety standards, as well as requirements under national, state and local authorities, and zoning and land use requirements.

Under Section 86, boards may require an owner to submit an application to install the supply equipment and may require approval of an architectural modification (if there are architectural standards) to the property. The approval of such application cannot be willfully avoided or delayed and shall be approved if the owner complies with Section 86 and the architectural standards, if any, of the community. Any approval or denial must be in writing within 60 days of receipt of the application.

Further, Section 86 allows the association board to install electric vehicle supply equipment in a common area reserved for the use of all members or residents of the community, provided that the association board develops appropriate terms of use for such supply equipment.

Passage of S.2967:

Before S.2967 was signed into law, CAI-NE’s Massachusetts Legislative Action Committee sent a letter to Governor Maura Healey, opposing Section 86 and asking the Governor to return the bill to the Senate for further discussion and amendment. Instead, the Governor signed S.2967 into law, despite the concerns outlined by CAI-NE. Now that the bill has become law, community associations are required to adhere to its provisions, which are likely to introduce operational complications. Community associations will need to proceed with caution, and MBM will keep our clients apprised of any interpretive decisions and applicable discussions.

Troy Tanzer Condo Law Blog

If you have any need for legal services related to this article, or any similar matter, you can email Troy at ttanzer@mbmllc.com or any of our other attorneys at Moriarty Bielan and Malloy LLC at 781-817-4900 or info@mbmllc.com.

Troy Tanzer