As a board member, staying informed about legislative updates is crucial for the effective management of your community. Recent policy changes in Michigan have introduced new laws that will significantly impact community associations. Here’s what you need to know about these changes and the important actions required of your board.
Homeowners' Energy Policy Act
Adopt a Solar Energy Policy
One of the critical requirements of the Homeowners' Energy Policy Act is that every community association must adopt a Solar Energy Policy within one year. This policy will guide homeowners on the installation and use of solar energy systems, ensuring that their implementation aligns with community standards.
Establish an Application Process
Your board must also establish an application process for homeowners seeking to install solar energy systems. This process must adhere to specific timelines outlined in the Act, ensuring timely and efficient handling of applications.
Communicate the Policy
Once the Solar Energy Policy is adopted, it must be communicated to the community 30 days before it goes into effect. Clear communication ensures that all homeowners are aware of the new guidelines and can prepare accordingly.
Corporate Transparency Act
File the Report with FinCEN
After your 2024 Annual Meeting, your board will need to approve filing a report with the Financial Crimes Enforcement Network (FinCEN). This step is crucial for compliance with the Corporate Transparency Act, which aims to enhance transparency and combat illicit activities.
Provide Required Information
Each board member must provide the necessary information for the report. This includes personal details that FinCEN requires to track and monitor the association’s activities.
Update on Board Changes
Any resignations or new appointments to the board must be promptly reported to KS Management. This ensures that the information filed with FinCEN remains current and accurate, complying with the Act’s timelines.
Understanding the Impact
Why These Laws Matter
Both the Homeowners' Energy Policy Act and the Corporate Transparency Act have been met with opposition and legal challenges. However, they are currently in effect, and non-compliance can result in significant penalties. These laws aim to promote sustainable energy practices and enhance transparency within community associations, respectively.
Legal Opposition and Compliance
The Community Associations Institute of Michigan and other bodies have opposed these laws, and lawsuits are pending. Nevertheless, it’s essential to comply with the current requirements to avoid potential fines and legal issues should the appeals and lawsuits not succeed in changing the laws.
KS Management Is Here to Help
At KS Management, we are committed to supporting you and your community through these changes. We provide guidance, resources, and seminars to help you understand and implement these new policies effectively. Should you have any questions or need additional assistance, please reach out to us at 734-285-4442 or visit ksmanagementservices.com.
Stay tuned for more updates as we continue to navigate these legislative changes together. Thank you for your dedication to ensuring your community remains compliant and well-managed.
Key Resources
Homeowners' Energy Policy Act: Energy Policy Act Guidance
Corporate Transparency Act: CTA Lawsuit, Seminar, Presentation Deck
Comments