Measures to deal with the health, economic and social impact of COVID-19 and the need to reduce energy consumption and improve the efficiency of energy, water and renewable systems have affected the horizontal property regime. For this reason, two Decree-Laws have recently been adopted by the Generalitat.
On the one hand, Decree-Law 28/2021, dated 21 December, amends the fifth book of the Civil Code of Catalonia to incorporate regulations on installations for the improvement of energy or water efficiency and renewable energy systems in buildings subject to the horizontal property regime. In addition, it amends Decree Law 10/2020 of 27 March, establishing new extraordinary measures to address the health, economic and social impact of COVID-19 in the field of private-law legal entities subject to Catalan civil law.
The explanatory memorandum argues for the need to reduce energy consumption and improve the habitability of homes through energy retrofitting. It also anticipates the need to guarantee and facilitate the adoption of agreements by the owners' association. Consequently, articles of the fifth book of the Civil Code of Catalonia have been amended.
The new article 553-25 provides for a simple majority of owners and quotas to approve agreements relating to the energy efficiency of buildings, whether installations or works (even if they entail the modification of the title deeds or the bylaws). At the same time, the precept requires the maximum quorum in the participation of renewable energy projects with other communities of owners and in the conclusion of financing contracts.
Regarding the binding nature of agreements, Article 553-30 incorporates a new subsection which provides that agreements aimed at improving energy efficiency are binding on all property owners in the community. However, it safeguards the position of dissenting owners if the cost exceeds three quarters of the community's annual budget (calculated on the basis of common expenses and deducting subsidies and grants).
Regarding the use and enjoyment of the adopted installation, if this proves incompatible with a previously authorised private utility installation or system, the community must bear the cost of removal and compensate the owner for any damage caused.
In this regard, article 553-43 provides for the possibility that owners may install private-use infrastructure and equipment to improve energy efficiency. In such cases, it will be necessary to submit a project 30 days in advance to the presidency of the community, without the need for prior agreement. As regards costs, these shall fall exclusively on the beneficiary owners. Even so, provided the installation allows it, other owners may access it upon payment of the proportional expenses and costs.
At the same time, the Decree incorporates new measures relating to private legal entities subject to the provisions of Catalan civil law. Fundamentally, the standard extends until 31 December 2022 the content provided for in Decree-Law 53/2020 of 22 December, which establishes the possibility for the governing bodies of private legal entities to adopt resolutions by means of video conference or other means, as well as to adopt resolutions without holding a meeting, even if their articles of association do not so provide.
The other provision, Decree-Law 1/2022 of 11 January, provides for extraordinary measures to address the health, economic and social impact of COVID-19 in the context of boards of owners in communities subject to the horizontal property regime. The standard extends the previously adopted measures:
- Firstly, it extends the suspension of the obligation to convene and hold owners' meetings until 30 June 2022. However, they may be held (with the appropriate security measures) on the initiative of the presidency or of at least 25% of owners with the right to vote. And in the event that the meeting cannot be held, agreements may be reached without a meeting, at the request of the person presiding (following the requirements of art. 312-7 CCCat).
- Secondly, the regulation provides for the automatic extension of the annual budget until the next ordinary meeting, together with the approval of the previous accounts and the renewal of positions.
In this article, we have analysed the new developments in two decree-laws regarding horizontal property. If you have any questions, you can use the contact area of our website to consult with our civil and commercial litigation department team. We will be delighted to assist you.