Council of New York Cooperatives and Condominiums

On Thursday, January 19, 2012, the New York City tentative tax assessments for fiscal year 2012-2013, which will begin on July 1st were made public. Increases averaged more than 4% citywide with some buildings increases in excess of 30%.

The ever-increasing property tax burden makes it all the more urgent that the long-established property tax abatement program for qualifying home owners in NYC cooperatives and condominiums be extended beyond its June 30, 2012 sunset date.

The Action Committee
for Reasonable Real Estate Taxes
will hold an open meeting in Manhattan
at 7 PM on
Thursday - February 2, 2012

Certiorari attorney Eric Weiss will summarize the trends in the new assessments, particularly as they affect cooperatives and condominiums, and will review the process for protesting your assessment increases. These protests must be filed by March 1st.

Action Committee chairman Jim Rheingrover will outline strategy for helping ensure that the abatement program will be extended this spring, and will discuss the Action Committee’s long term goal of a fair and equitable property tax system for our City.

Your participation in the work of the Action Committee is vital to our success. Please be sure that your cooperative or condominium is represented at this meeting, where everyone is welcome. There is no fee to attend, but advance reservations
are required. To reserve your place and learn the location of this meeting, please call the Action Committee at (212)496-1306 or register by e-mail to workshops@CNYC.coop

Please post this notice and encourage others to attend this important meeting.

1. Date for Penalties: While compliance with Local Law 84, Benchmarking, was due on May 1, 2011, the City will accept the 2010 Benchmarking Compliance Report up to December 31, 2011 without the issuance of a penalty.

2. Warning Letter: A warning letter was sent to all buildings that did not comply by August 1, 2011. If you received this letter and believe you have benchmarked it could be for the following reasons:

3. Benchmarking Help Center: A hotline is available to answer general benchmarking questions and assist with the use of Portfolio Manager. It can be accessed Tuesdays and Thursdays from 10am-5pm and Fridays from 10am-2pm, by dialing 311 or 212-442-7901. If the Help Center is not open, leave a message and they will return your call. This resource has been made available through a partnership between The City University of New York (CUNY), New York State Energy Research and Development Authority (NYSERDA), and the City of New York.

4. Benchmarking Training: The Association for Energy Affordability is offering in person training on the Portfolio Manager tool. The training also covers how to comply with Local Law 84. For class dates and to register visit their website.

5. Updates on the City’s Website: Please regularly visit the Greener, Greater Buildings Plan website for more information and continual updates on Local Law 84: www.nyc.gov/GGBP

CITY MANDATES PHASE OUT OF #6 OIL

Starting in July 2012 the City of New York will not be renewing any triennial permits for boilers that use number 6 oil. The City would like those buildings to switch to natural gas if possible. When it is not economically or geographically possible, affected buildings must switch to #4 oil (which must be phased out by 2030) or #2 oil. In an effort to encourage as many buildings as possible to switch to natural gas, the City has compiled the list that follows of 500 building currently burning #6 or #4 oil that are located near a gas main making it possible at very little cost or no cost for the utility to bring a natural gas connection to the wall of the building. All work inside the building is at building expense. Note that natural gas presently costs much less than oil.

NYC BUILDINGS OF 50,000 SQUARE FEET OR MORE ARE REQUIRED TO COMPLETE BENCHMARKING FORMS BY AUGUST 1ST

1. Date for Penalties: The City will accept the 2010 Benchmarking Compliance Report up to August 1, 2011 without the issuance of any penalty. Failure to benchmark will result in a building violation and a penalty of $500. Continued failure to benchmark will result in an additional penalty of $500 each quarter.

2. Benchmarking Hotline: A hotline is available to answer general benchmarking questions and about the use of Portfolio Manager. It can be accessed Monday through Friday, 10:00am-4:00pm, by dialing 311 or 212-442-7901. This resource has been made available through a partnership between the City University of New York (CUNY), New York State Energy Research and Development Authority (NYSERDA), and the City of New York.

3. Benchmarking Training: The Association for Energy Affordability is offering the last in-person training on the Portfolio Manager tool Tuesday, July 26th. The training also covers how to comply with Local Law 84. To register for the class visit their website: http://www.aeanyc.org/site/c.dhJJJTOzFoH/b.6441573/k.5FCE/Benchmarking_Training.htm

4. Updates on the City’s Website: Please visit the Greener, Greater Buildings Plan website for more information on Local Law 84: http://www.nyc.gov/GGBP

5. Presentations on the Greener, Greater Buildings Plan: The Urban Green Council is providing free presentations on New York’s four new energy efficiency laws. To book a presentation, go to: http://www.urbangreencouncil.org/education/ggbp-education/

At the NYC Dept. of Buildings hearing on proposed rule amendments to Local Law 84, held on March 21, 2011, there were numerous requests for an extension of the energy benchmarking deadline of May 1, 2011. The city has responded favorably to those requests.

While the official deadline is still May 1, the city is allowing a three-month grace period before it will issue violations for non-compliance.

Last summer the Federal Housing Finance Agency (FHFA) which regulates the institutions of the secondary market such as FANNIE MAE and FREDDIE MAC, issued a proposed Guidance which would have prohibited these institutions from purchasing loans where a transfer fee is in place. This provoked an outcry nationwide from supporters of cooperatives, condominiums and home owner associations, where transfer fees go back to the community to help maintain the housing, etc.

FHFA received more than 4000 comments on this proposed Guidance, the vast majority in opposition to this unreasonable attach on transfer fees that benefit the community. Many of these comments were sent by CNYC members in response to our request. Other member buildings sent information on their own transfer fees, enabling CNYC to compile a survey of transfer fee arrangements in more than 400 New York cooperatives and condominiums; this survey was included in the Comments to FHFA.

Today, February 1, 2011, the FHFA sent a prpopsed runt to the Federal Register to begin formal rulemaking on private transfer fees. The proposed rule would exclude private transfer fees paid to homeowner associations, condomiums, cooperatives and certain tax esempt organizations that yse private transfer fee proceeds to benefit the property. (see linksto full FHFA notice and to proposed rule).

CNYC thanks all the members who helped make this imporant turn-around possible.

The Federal Housing Agency insures lenders against defaults. FHA recently implemented a re-certification requirement for all condominiums that were granted Project Approval prior to 2008. Project approval expedites loans for the purchase of individual units within the condominium. An expired FHA Project Approval can have a negative effect on the availability of credit and, therefore, the marketability/price of units for sale in your development.
In that event, FHA insured loan products would not be available to your condominium. Individuals purchasing units would not be able to get a FHA mortgage, reducing the buyer pool. Further, without FHA Project Approval, FHA loan products for refinance, debt consolidation and reverse mortgages would not be available for qualified unit owners in your development.
Today’s FHA insured loan requires full documentation of the borrower’s credit for each individual loan, e.g., the borrower’s tax returns are verified with the IRS. Together with other requirements such as a stable work history and clear credit, FHA requires a high level of due diligence be completed by the lender before insuring the loan, allaying concerns regarding the creditworthiness of the borrower.

Effective February 1, 2010, FHA will only insure loans in condominiums that have Project Approval. Re-certification requires compliance with the guidelines published under HUD Mortgagee Letter 2009-46B. Published on November 6, 2009, this guidance established new standards for Project Approval eligibility that include: budget reserves, percentage commercial space, investor ownership, right of first refusal, insurance, delinquency, pending litigation and more. The process is more onerous for condominiums originally certified prior to the year 2008 Consult your property manager and your attorney to ascertain whether your condominium needs to apply for re-certification.

Green Buildings are a reality, not some far off future concept to be pondered later. More and more CNYC members expect their building to be using the latest green strategies to reduce waste and pollution and maintain a high quality indoor environment. In 2011 City law requires buildings of 50,000 square feet and more to start ‘benchmarking’ their energy and utility use.. And utility costs continue to rise, demanding greater efficiencies to hold down costs; the best way to control these costs involves employing the latest green strategies.

A Fair Contract with Significant Innovations
At midnight on Tuesday, April 20, 2010, Michael Fishman, president of Local 32BJ of the Building Service Employees International Union, and Howard Rothschild, president of the Realty Advisory Board on Labor Relations, Inc. shook hands on a four year contract agreement that includes pay increases of 2.33% per year. for 32BJ’s 3000 residential apartment building workers in Manhattan, Brooklyn, Queens and Staten Island.

Pledged Savings in Health Costs
The contract further provides that the Health Fund, which is jointly administered by trustees from the Union and from the RAB, will commission a study to help implement annual savings of $70,000,000 or 10% of the Health Plan’s current average annual expenditures beginning no later than January 1, 2012.

Employer Contributions Firmly Capped
Caps on employer contributions to the Health and Pension plans during the life of this contract ensure that if, as was the case in 2004, the reserves of either Health or Pension plans should become depleted, employers will not be responsible to make any additional contributions (the opposite was the case in 2004 when employers agreed to substantial, unexpected contributions ($2400 per employee) to rescue the then failing health fund. This dramatic change in the paradigm ensures employers of certainty in their budgeting for labor during the term of this contract. All parties are optimistic that no problems will arise, and that the anticipated economies will be easily achieved.

Reduction In Force
In addition, in recognition of the length and the extent of the economic downturn an important phrase has been added to the contract provision regarding Reduction In Force, enabling a building to reduce staff upon submitting proof of financial hardship, provided that no additional work is added to the job descriptions of remaining employees.

A Fair Agreement
The building service workers who are members of Local 32BJ are the best paid service workers in the world; they also have excellent benefits and training opportunities. And this is as it should be. These workers keep our buildings safe and clean. They are part of the community that is our cooperative or condominium. They watch our children grow up; they help us daily in many ways largae and small. We are all pleased that the current negotiation has produced a contract that is fair to one and all.

Pattern Agreement
The RAB negotiates a pattern agreement, which each of its residential members with 32BJ employees is then invited to sign, Copies of the agreement will shortly be sent to your building (or your managing agent). If your cooperative or condominium has six or more employees, your superintendent is a Resident Manager, subject to an agreement that expires June 20th.

Do not be taken in by the clever marketing ploy of a lead inspection company that may send to your buiding a very official looking notice advising you that you are required to perform inspections for lead paint.

Note that this is an inspection that building staff can perform in your public areas if your building was built prior to 1978, and that cooperatives and condominiums do NOT have any responsibility for inspecting apartments occupied by shareholders or unit owners. While professional inspections may be appropriate in certain situations (in which case, you will seek out a known, reliable company), the law permits inspections by building staff.

The City of New York is deeply committed to energy conservation, a goal which CNYC shares. However, some of the requirements which the City seeks to impose appear to CNYC to be costly to our members. On June 26, 2009, CNYC testified on four proposed bills, supporting two and challenging two on the grounds of cost and of imposing decisions upon boards of cooperatives and condominiums .which should have the right to set priorities for their own buildings. CNYC always prefers incentives to mandates and expressed this view in its testimony.

During much of last fall and spring, the economic crisis was aggravated by the reluctance of lenders to make money available for the purchase of homes, including cooperatives and condominiums. Happily, a number of lenders are now making loans available, but they are hesitant to lend for the purchase of apartments in recently converted buildings or those with a significant sponsor presence, since they want to be sure that the loans will qualify for purchase by institutions of the secondary market.

The 2009 Comparative Study of Building Operating Costs has been mailed to CNYC members, and is also available for purchase in the CNYC office, 250 West 57th Street, Suite 730, New York, NY 10107-0730. The price is $25.

Upper West Side Recycling and Wearable Collections will organize and publicize your textile drive. We’ll also provide a portable clothing bin (5 x 4 x 2 1/2) if your building has over 100 apartments; if it has less than 90 apartments we’ll give you a rack with large bags. Residents won’t have to haul their clothing and other textiles to a collection site—or worse—dump them in the trash. Wearable collections accepts clean clothing (wearable or unwearable), shoes, pocketbooks, curtains, sheets, blankets, comforters, and towels. Carpeting is not accepted. By participating you can do some spring or fall cleaning, keep textiles out of our landfills and recycle in an easy, convenient way.

We also recycle textiles in churches, schools, and other organizations. We also recycle textiles in residential buildings if your members are interested. Pickups are in Manhattan, and Wearable Collections will go to the outer boroughs for large quantities. For further information contact:

CNYC & REBNY PUBLISH CO-OP BOARD ADMISSIONS GUIDE

CNYC and the Real Estate Board of New York have published a new guide designed to explain the anti-discrimination requirements that all Boards must follow. Included are recommendations on how a Board should conduct the application process.

Click to download the guide (PDF Format).

The Gallery is a special section of this website dedicated to displaying newsletters provided by our member buildings, and to giving recognition for all the hard work that goes into creating them.

To submit your building's newsletter for the Gallery, please send a PDF version to info@cnyc.coop, or mail a hard copy of the newsletter to: