Electric Cars Were Coming ─ Now They’re Here Condo Associations Have to Plan for the Charging Stations Owners Are Going to Demand

One of the benefits of dedicating our practice to representing condominium associations is the ability to see trends develop within communities, anticipating changes before they occur. For the last ten years we have been watching the development of electric vehicles and discussing the possibility that these vehicles and the charging stations they require would become the norm. Judging by the number of inquiries we have been receiving from clients, it appears that the future we’ve been predicting is rapidly approaching. There were about 18,000 electric cars (including hybrids) sold in the U.S.in 2011, the year after they first hit the market.  This year, Bloomberg’s New Energy Finance predicts there will be close to 2 million electric vehicles on U.S. roads, growing to 18 million in the next decade. And a not insignificant number of those cars will be driven by condominium owners and residents, who will need some means of charging them.  How will boards respond to this growing need?

No “Unreasonable” Restrictions in Boston

The Massachusetts legislature has provided a partial answer to that question. Three years ago, lawmakers approved a Boston home rule petition prohibiting condo communities located in the city from barring or “unreasonably” restricting the ability of owners to install charging stations in areas where owners have exclusive use, or in common areas, as long as the stations are located “within a reasonable distance of a dedicated parking space.” 

When that measure, which took effect in 2019, was enacted, some boards panicked, envisioning wires strung crazily from one end of parking lots to another and extension cords dangling from the upper floors of multi-story buildings.  Those fears haven’t materialized, but the law does raise several questions, among them:  What constitutes an “unreasonable” restriction? What qualifies as a “reasonable distance”?  What measures are associations required to undertake to permit the installations?

The most difficult question for many associations will be where to locate the charging stations they are required to approve.  This won’t be an issue when owners have separate garages, but If parking spaces aren’t deeded or assigned, or if parking is limited, solutions become more complicated.   Boards could shuffle spaces that are assigned but not owned – but not without infuriating the owners whose reassigned spaces end up furthest from the entrance rather than closest to it.  Even a deeded or assigned space may be problematic if it is located an unreasonable distance from the electrical source. Owners with better-located deeded spots might be willing to exchange them, but boards couldn’t order them to do so. 

Time, experience and perhaps court decisions will eventually answer these questions, or at least provide guidance on how boards should answer them.  But for now, two points are clear.

Associations in Boston no longer have the absolute right to approve or reject a charging station. If boards deny a request, they must have a good reason for that decision.

The state law currently applies only to condominiums in Boston. Associations elsewhere in the state still have the discretion to reject requests for charging stations. But that is likely to change.  As more condo owners demand charging stations, the state legislature will almost certainly impose the requirements of the Boston ordinance on associations statewide. 

Base Line Requirements

Given that prospect and the likelihood that more condo owners are going to be requesting charging stations, association boards should begin considering the policies they will need to govern them.  We think these baseline requirements make sense: 

Require owners to pay for installation and maintenance costs, along with any structural modifications required for the installations if the system will serve only their space.

Also require owners to pay for the electricity used to recharge their vehicles, including the cost of installing a separate meter, if necessary, to monitor usage;

Require owners to pay for any additional insurance required, if any, and to indemnify the association for any damages resulting from the installation, use or maintenance of the charging equipment.

Insist on reviewing the installation plans and approving the contractors owners use.

Require owners to disclose the existence of charging stations to prospective buyers of their units as the successors will be responsible for the system.

Consider offering licensing agreements rather than granting easements allowing owners to modify common area space for the systems. The licensing agreement should specify that the owner will be responsible for removing the equipment and restoring the area if a future buyer doesn’t want to take over the license.

Charging Stations for All?

Some associations are considering whether to install multiple charging stations or stations with multiple outlets as a common area expense as an alternative to individual installations accessible only to the owners who pay for them. 

We think this makes sense for many communities, not only because it avoids the logistical challenges and legal questions that may arise with individual installations, but also because, as more consumers drive electric cars, more condo residents and prospective buyers will view charging stations as a desirable amenity ─ or an essential one.  Communities with common charging stations may have a marketing advantage over those without them. 

Amenity or Improvement

Boards that make the charging stations a common area expense will have to consider whether they are an amenity, which boards have the authority to approve on their own, or an improvement, requiring the approval of a super majority of owners.  For condominiums located in Boston, boards have a good argument that installing a common charging system does not require an improvement vote. Outside the city, absent a state law barring ‘unreasonable” impediments to charging stations, the issue is less clear and the argument for securing owner approval is stronger. 

The best strategy for all associations, including those in Boston, is to poll owners to gauge their interest in electric cars and to assess the support or opposition proposals for common area charging stations are likely to receive.  Whether boards have the authority to approve charging stations on their own or not, they should be prepared to make the case for a forward-thinking solution, recognizing that electric cars are the future and anticipating rather than reacting to that inevitable trend.  

The best time for associations to begin this planning process would have been 10 years ago, when we began discussing the electric car trend.  The second-best time would be now, because electric cars are no longer ‘coming soon,” they are here.  And how to deal with charging stations is no longer an academic question boards can address at their leisure; it’s a major concern that boards should start addressing today.

Written By

Janet Olousian Aronson (jaronson@meeb.com)

Mark Einhorn (meinhorn@meeb.com)