This publication, taken from a Law Office website (http://www.s-f-law.com/u_1298.htm) is intended to provide residents with general information. The material contained herein should not be construed as legal advice or opinion on specific facts or matters.

FCC ISSUES NEW SATELLITE DISH REGULATIONS

- NEW CHALLENGES FOR ASSOCIATIONS

On November 20, 1998, the Federal Communications Commission released revised regulations dealing with the right of consumers - including residents of condominiums and other common interest community associations - to install and use satellite dishes.

These new regulations implement a federal mandate to eliminate restrictions on the ability of U.S. consumers to install and use satellite dishes, including prohibitions on satellite dishes contained in the Declarations and Rules of many associations.

Under the new regulations, if a unit has a private balcony, terrace or deck, the owner or occupant of that unit now has a federally-protected right to install a small satellite dish (less than one meter wide) on that balcony, terrace or deck. However, associations are under no obligation to allow the installation of satellite dishes on roofs, exterior walls or other common areas.

The Telecommunications Act of 1996

In 1996, the U.S. Congress decided, as a matter of federal policy, that all U.S. consumers should have access to video programming offered by means other than cable, such as television services available by satellite dish.

To accomplish that objective, Congress passed the Telecommunications Act of 1996. One of the key provisions of that Act directed the Federal Communications Commission ("FCC") to develop and adopt regulations to abolish governmental and non-governmental restrictions that impair a viewer's ability to receive video programming services through direct broadcast satellite dishes and other over-the-air reception devices ("OTARDS").

This federal mandate to eliminate restrictions on the use of satellite dishes cast serious doubt on the enforceability of satellite dish restrictions contained in many associations' Rules and Declarations and raised other vexing questions:

 Did the new federal law mean that each and every unit owner could have his or her own satellite dish?

 Did every unit owner have a federally protected right to install a satellite dish on the roof, outside walls or other common elements of the association?

 Did unit owners have the unrestricted right to install a satellite dish on a unit's balcony or balcony railing?

 What about renters?

The New FCC Regulations

After two years of deliberation, debate and fine-tuning, the FCC released revised regulations in September and November of 1998 that answer these and other questions. The FCC also explained its new regulations in two major policy pronouncements: an "Order on Reconsideration" released by the FCC on September 25, 1998, and a "Second Report and Order" released by the FCC on November 20, 1998. (The full text of the FCC's September 25, 1998 Order on Reconsideration and November 20, 1998 Second Report and Order can be viewed at or downloaded from the FCC's excellent website at http://www.fcc.gov/Bureaus/Cable/.)

Although the new regulations and the FCC's explanatory comments are lengthy and complex, here are some of the key principles applicable to homeowner associations:

No Federally-Protected Right to Install Satellite Dishes on Common Elements

Unit owners do not have a federally protected right to install a satellite dish on an association's walls, roof or other common elements. Provisions in Declarations and Rules that prohibit the installation of satellite dishes on an association's common elements are lawful and remain fully enforceable.

Unit Owners Have Federally-Protected Right to Install Satellite Dishes on Private Balconies, Terraces and Decks

A unit owner who has "exclusive use" or "exclusive control" of a balcony, deck, terrace or other property does have a federally-protected right to install a small satellite dish (less than one meter wide) on that "exclusive use/control property."

This federally-protected right exists even if the unit already receives (or has ready access to) a full range of television programming services provided by a cable television provider or an association-controlled satellite receiver.

As a result, if a unit has a private balcony, balcony railing, deck or terrace that is a limited common element or is subject to an exclusive use easement, the association can no longer prohibit the installation of a satellite dish, even if the association's Rules and Declarations expressly prohibit satellite dishes.

The same rule will also apply to resident shareholders of a cooperative whose proprietary leases include exclusive use of a balcony, deck or patio.

Limited Association Regulation of Satellite Dishes Still Permitted

Although an association may no longer prohibit owners from installing satellite dishes on their private balconies, terraces and decks, associations may still lawfully adopt and enforce certain types of rules relating to those satellite dishes. According to the FCC, an association can lawfully enforce restrictions on satellite dishes that are necessary to accomplish "a clearly defined safety objective," as well as other reasonable rules that do not impair the viewer's ability to install, maintain or use a satellite dish.

By way of example, a rule establishing reasonable, safety-based installation standards for mounting satellite dishes on balcony railings should be enforceable if the rule does not result in unreasonable delay or expense to the unit owner.

Likewise, a rule requiring that all satellite dishes be of a specific color would be enforceable if that requirement does not impair the unit owner's ability to install, maintain or use a satellite dish.

Unit Renters

Much of the FCC's November 20, 1998, Second Report and Order deals with renters. Although a complete treatment of the satellite dish rights of renters is beyond the scope of this document, the Second Report and Order gives the renter of a unit in a condominium or other common interest community association a federally-protected right to install a satellite dish on the rented unit's private balcony, balcony railing, terrace or deck.

Not only does the renter not have to obtain the unit owner's consent or permission to install a satellite dish, the FCC has declared that any provision in a lease that prohibits the installation of a satellite dish is now void and unenforceable.

(The FCC's decision that renters do not have to obtain permission to install a satellite dish represents an abrupt reversal of policy; the Order on Reconsideration released by the FCC on September 25, 1998 provided that renters did have to obtain the owner's permission before installing a satellite dish.)

Enforcement and Fines Suspended

If a unit owner who installs a satellite dish on a private balcony, balcony railing, deck or terrace is charged with violating an association rule or regulation relating to satellite dishes, the unit owner can suspend the association's enforcement powers by initiating a legal proceeding to determine if the association's rule is unenforceable under federal law.

If the unit owner does initiate such a proceeding, federal law now provides that the association cannot assess or enforce a fine or penalty (including attorneys' fees) against the unit owner until twenty-one days after the validity of the association's restriction has been upheld.

"What Can Homeowners' Associations Do Now?"

These new federal mandates should not have any meaningful impact on associations whose units do not have private balconies or other exclusive use/control areas. Such associations can continue to enforce existing prohibitions on the installation of satellite dishes on roofs, exterior walls and other common elements, just as in the past.

Greater challenges face associations with units that do have private balconies, terraces, decks or other exclusive use/control areas. Although prohibitions on the installation of satellite dishes on common elements remain lawful, the owner (or renter) of each and every unit with an "exclusive use/control area" now has a federally protected right to install a satellite dish.

Such associations should consider adopting reasonable, safety-based installation standards for mounting satellite dishes on balcony railings and other exclusive use/control areas.

In addition, associations may wish to reduce the demand for private satellite dishes by giving residents access to an expanded selection of television programming services, whether provided via a land-based cable or a central satellite receiver dish.

Other solutions and strategies will have to be tailored to address each association's special needs and circumstances.

 

Full Text of FCC Code of Federal Regulations 47, 1.4000(a) and (b)

(a) Any restriction, including but not limited to any state or local law or regulation, including zoning, land-use, or building regulations, or any private covenant, contract provision, lease provision, homeowners' association rule or similar restriction, on property within the exclusive use or control of the antenna user where the user has a direct or indirect ownership or leasehold interest in the property that impairs the installation, maintenance, or use of:

(1) an antenna that is designed to receive direct broadcast satellite service, including direct-to-home satellite services, that is one meter or less in diameter or is located in Alaska;

(2) an antenna that is designed to receive video programming services via multi-point distribution services, including multi-channel multi-point distribution services, instructional television fixed services, and local multi-point distribution services, and that is one meter or less in diameter or diagonal measurement;

(3) an antenna that is designed to receive television broadcast signals; or

(4) a mast supporting an antenna described in subparagraphs (1), (2) and (3) above is prohibited, to the extent it so impairs, subject to paragraph (b).

For purposes of this rule, a law, regulation or restriction impairs installation, maintenance or use of an antenna if it: (1) unreasonably delays or prevents installation, maintenance or use, (2) unreasonably increases the cost of installation, maintenance or use, or (3) precludes reception of an acceptable quality signal.

Any fee or cost imposed on a viewer by a rule, law, regulation or restriction must be reasonable in light of the cost of the equipment or services and the rule, law, regulation or restriction's treatment of comparable devices.

No civil, criminal, administrative, or other legal action of any kind shall be taken to enforce any restriction or regulation prohibited by this rule except pursuant to paragraph (c) or (d).

In addition, except with respect to restrictions pertaining to safety and historic preservation as described in paragraph (b) below, if a proceeding is initiated pursuant to paragraph (c) or (d) below, the entity seeking to enforce the antenna restrictions in question must suspend all enforcement efforts pending completion of review.

No attorney's fees shall be collected or assessed and no fine or other penalties shall accrue against an antenna user while a proceeding is pending to determine the validity of any restriction.

If a ruling is issued adverse to a viewer, the viewer shall be granted at least a 21 day grace period in which to comply with the adverse ruling; and neither a fine nor a penalty may be collected from the viewer if the viewer complies with the adverse ruling during this grace period, unless the proponent of the restriction demonstrates, in the same proceeding which resulted in the adverse ruling, that the viewer's claim in the proceeding was frivolous.

(b) Any restriction otherwise prohibited by paragraph (a) is permitted if:

(1) it is necessary to accomplish a clearly defined, legitimate safety objective that is either stated in the text, preamble or legislative history of the restriction or described as applying to that restriction in a document that is readily available to antenna users, and would be applied to the extent practicable in a non-discriminatory manner to other appurtenances, devices, or fixtures that are comparable in size and weight and pose a similar or greater safety risk as these antennas and to which local regulation would normally apply; or

(2) it is necessary to preserve a prehistoric or historic district, site, building, structure or object included in, or eligible for inclusion on, the National Register of Historic Places, as set forth in the National Historic Preservation Act of 1966, as amended, 16 U.S.C. § 470, and imposes no greater restrictions on antennas covered by this rule than are imposed on the installation, maintenance or use of other modern appurtenances, devices or fixtures that are comparable in size, weight, and appearance to these antennas; and

(3) it is no more burdensome to affected antenna users than is necessary to achieve the objectives described above.