Does Sunlight Approve Condominiums?
If your customer's credit is approved they will receive a stipulation email to provide additional documentation before their loan is approved for Notice to Proceed. If the homeowner can provide documentation (Covenant's, Conditions, & Restrictions - CC&R) showing that the homeowner has ownership over the roof, then please instruct them to upload this document using the secure upload button in the email from Sunlight.
We are only able to provide Notice to Proceed for a Condominium if the homeowner can provide documentation that proves that they have full rights over their roof. Any roofs that are considered common space or shared space will not be accepted by Sunlight for a Solar loan.
You may run into this situation even if the property is a detached home that resembles a single family residence. It may be the case that the HOA (homeowners association) has rights over the roof and that may create difficulty with filing of the UCC-1.
What document is the document needed to get an approval?
Typically we need a "CCR" also known as a Covenants, Conditions and Restrictions" document. This is paperwork that documents the responsibilities of the homeowner and HOA (homeowners association). Different HOA's may have different names for this; essentially, the CCR must show that the homeowner has full rights over their roof. Any roofs that are considered common space or shared space will not be accepted by Sunlight for a Solar loan.
How to Resolve the Condominium Stipulation
1. If your customer's credit is approved they will receive a stipulation email to provide additional documentation pertaining to their Condominium.
2. Ask your homeowner to provide the document provided by their HOA that explains the rights and responsibilities of the homeowner and the HOA - this is typically called a "CCR" – Covenants, Conditions and Restrictions" document. You will need to provide a full copy of the CCR to Sunlight.
3. Instruct your customer to find the email from Sunlight that with the subject line "Action Required." Just have them click the Upload Document button to securely upload their document. Once it is submitted our support team will review it.
What does the HOA document need to specify?
The document will specify what the residence consists of - whether it includes just the inner dwelling or whether the exterior is also part of the residence. If the roof is considered part of the residence, then we can approve the property, assuming all other credit criteria are satisfied. If the roof is considered part of the "common area," then we will not be able to finance the project.
Why does the homeowner need to have full rights over their roof?
Sunlight Financial loan agreements require a security interest to be filed with the local county (typically this is referred to as a UCC-1 filing). If the HOA/Condo board has ownership or rights over the roof it will prevent the loan provider from being able to file for the security interest.
Additionally, HOA/Condo Boards may have requirements for periodic roof cleaning or repairs, which may create difficulty if the system must be removed at their request.
Once the documentation is submitted, what's next?
Once the documentation is submitted one of our team members will review it and make a determination to either approve it or leave it as denied. If it is approved you will see that update in the portal. You are welcome to call back same day to find out the result of the review.