The HOA Bill - HB 1270

For many Coloradoans, installing an energy efficiency or renewable energy device on their home is perhaps the most immediate way that they can participate in the New Energy Economy. Recognizing the burgeoning interest in energy efficiency and renewable energy, The Governor's Energy Office (GEO) has prepared this section to assist homeowners, commercial property owners, homeowners' associations (HOA's) and contractors in implementing House Bill (HB) 08-1270, also known as "The HOA Bill".

This section is by no means meant to be exhaustive and will not necessarily guarantee that a project will go through smoothly; however GEO hopes it will mitigate the confusion that can arise when projects are not organized or communicated clearly between parties.

HB 08-1270 went into effect on August 6th, 2008 to extend and clarify Colorado citizens' existing right to do two separate but related things on their own property:

• To make their homes more energy-efficient
  
• To install renewable energy generation devices (solar- and wind-powered electric or thermal generators) wherever safe and practical

The law applies to most residential and many commercial properties, including those in "common interest communities" subject to neighborhood covenants and governed by HOA’s the installation of energy efficiency measures such as evaporative coolers and shade structures may be reasonably regulated by an HOA, but may not be prohibited outright. In this way, Colorado law now recognizes the value of energy efficiency measures as a matter of public policy, along with a citizen's right to display American flags, military flags, and political signs.

Regarding Energy Efficiency Measures
HB 08-1270 creates a new category of "energy efficiency measures" which may not be banned outright but may be subject to reasonable aesthetic considerations governing the dimensions, placement, or external appearance of an energy efficiency measure, taking into account the impact on its price, operating cost, and performance. "Energy efficiency measures" are defined to include:

• An awning, shutter, trellis, ramada, or other shade structure
  
• A garage or attic fan and any associated vents or louvers
  
• An evaporative cooler ("swamp cooler")
  
• An energy-efficient outdoor lighting system such as those that use fluorescent bulbs, solar recharging panels, motion detectors, etc
  
• A retractable clothesline
  

As with solar and wind generation devices, a homeowner who installs energy efficiency measures must meet all bona fide safety and building code requirements.

Regarding Renewables
Under prior law dating from the 1970s, neither an HOA nor a covenant or restriction in any deed could "effectively prohibit" solar energy devices. HB 08-1270 extends this same protection to wind-electric generators. However, wind-electric generators may be required to meet reasonable noise restrictions in residential areas, and both solar and wind energy generation devices must conform to all applicable safety and interconnection requirements.

As with energy efficiency measures, a homeowner who installs solar and wind generation devices must meet all bona fide safety and building code requirements.

What the Law Does Not Do
It is also important to note what HB 08-1270 does not do. It does not give any person the right to build or install anything on property they do not own, including leased property, the "common elements" of an HOA, or commercial property that is subject to a security agreement.

It also does not leave HOA’s powerless to enforce reasonable aesthetic standards. Instead, it discourages excessive litigation. The law provides that the party that wins in a dispute over whether an aesthetic standard unreasonably increases the cost or reduces the efficiency of a renewable energy generation device, is entitled to recover reasonable attorney fees and legal costs from the losing party.

Please use the section guide above to learn more about HB 08-1270. You can also read the law in the 2008 Legislation section.

* The Governor’s Energy Office (GEO) provides this information as a public service and does not endorse individuals, companies, services or products and cannot be held liable for content found on any of the websites listed here. These answers are general guidelines and are not intended for specific HOA’s, Commercial or Residential Property Owners. These opinions are not legal opinions and should not be substituted for such.  In the event of specific questions, an experienced attorney should be contacted.