Can an HOA charge fees or claim rebates from a homeowner's cooling system installation under AB 1684?
Short answer
No. If Assembly Bill 1684 becomes law, homeowners associations (HOAs) in California will be prohibited from charging any fees connected to the installation, upgrade, replacement, or use of compliant cooling systems. The bill also explicitly forbids associations from claiming any rebates, credits, or commissions tied to a member’s cooling system.
What the bill or law says
AB 1684 adds Section 4738 to the Civil Code to regulate how common interest developments manage temperature control equipment. The text states that any provision in governing documents or architectural guidelines that restricts compliant cooling systems is void and unenforceable [sourceUrl].
Specifically, subsection (c)(1) lists actions an association cannot take. It prohibits charging any fee to a member in connection with a cooling system [sourceUrl]. It also bars associations from requiring members to use specific products or contractors and from claiming any rebate, credit, or commission related to the installation or use of the system [sourceUrl]. These protections apply to systems like portable air conditioners, window units, and heat pumps that meet state and local building codes [sourceUrl].
How it works in practice
Under this framework, a homeowner wishing to install a window air conditioner would not need to pay an administrative fee to the HOA for approval, provided the unit meets safety standards. If a utility company offers a rebate for installing an energy-efficient heat pump, the HOA cannot claim that money or require the homeowner to share it. The financial benefit remains entirely with the homeowner who made the investment.
However, there are limits. If the installation affects common areas, the HOA can still require the homeowner to hire a licensed contractor and hold them responsible for any damage caused to shared property [sourceUrl]. Additionally, if a local permit is required by law and not granted, the HOA can restrict the installation [sourceUrl]. If an HOA willfully violates these fee and rebate prohibitions, they may be liable for actual damages, a civil penalty of up to $2,000, and the homeowner’s legal costs [sourceUrl].
What the source does not answer
The bill text does not specify how an HOA should verify that a cooling system complies with all applicable building codes without charging an administrative fee. It also does not clarify what constitutes a "willful" violation versus an accidental one in the context of fee collection. Furthermore, the text does not address whether HOAs can charge general assessment increases to cover broader infrastructure changes needed to support increased cooling load, as opposed to direct fees for individual installations.