In another area of enforcement from HPD, Local Law 65 of 2014 now authorizes HPD to impose inspection fees where violations are issued in the same dwelling unit multiple times over the course of a single twelve-month period. HPD began implementing the law on August 20, 2015. The parameters of the new law are described just below:

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More often than not, switching Managing Agents is a daunting task for the existing Board. The Board / Manager relationship is one that is intertwined (almost as intimate as a marriage) and although some are switching after a short period of time, many are leaving behind 10+ years of hand-in-hand relationships.

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At your cooperative closing, if you are obtaining a mortgage to finance the purchase, you’ll notice that the managing agent hands over at least two original copies of a Recognition Agreement to the bank that is lending you the funds, and then an original is also kept by the building’s Property Manager. So, what is the Recognition Agreement and why do we need it?

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In a Cooperative, the Board of Directors has a lot of leeway when approving or rejecting a proposed sale of shares (of course, they can only deny for legal reasons), but in a Condominium, since there is no Proprietary Lease and the apartments are all fee-simple in ownership, the Right of First Refusal plays an important part in how the Board of Managers can impact a pending sale or lease agreement. A Right of First Refusal is the mechanism that gives the Board the option of stepping into the proposed deal on behalf of all unit owners, instead of allowing the deal to go through with the purchaser that has submitted an application to purchase.

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Property Managers often get asked by residents: “I’m only painting my apartment – why do I need to get Board or Management approval”? The answers lies with liability and insurance coverage. We’re not so concerned with the muted shades of gray that you intend to roll on the walls as we are with ensuring that the contractor you’re bringing into the building is properly licensed and insured.

In most Bylaws or Proprietary Leases that you’ll encounter, there is a provision that alterations cannot be undertaken without the consent of the Board or the Lessor. In the painting case above, we want to make sure that your painting company has general liability, auto and umbrella coverage. In addition, if they have a staff that will be working on the project, they have to provide proof of Workman’s Comp protection also. Typically, these policies name both the Cooperative / Condominium and the Managing Agent as additionally insured, just in case something should happen while they are on site (that could be damage to the unit in question, common areas, neighboring apartments or to any individual; an employee or not).

In this case, if an apartment is being painted and it is pre-1978, we can assume that this is an apartment that has lead paint on the walls and as such, an EPA Lead Safe Certified contractor will need to provide proof that they have the certification and will need to follow the guidelines set forth in the framework of those procedures.

Not all alterations are limited in scope to painting. Electrical, plumbing and structural work all need approval from the appropriate parties in your building and once these topics are broached, more information (permits, licenses, sealed drawings, architect review and more) will be required before a formal approval is given. The larger in scope, the more detailed the plans will be needed.

At the end of the day, the work that you do in your apartment, so long as it is represented and filed properly, is the business of the resident, but the property manager has the entire building in its sights to ensure that those who are entering to do the work, and the work itself, will not harm either the occupants or the structural integrity of the building as a whole.

“Limited Common Element” is a term that is thrown out into the wild occasionally but is a characteristic that presents itself in most buildings. Many people are unsure what it means and if they are affected by it, so with the below examples we can dive deeper for a better understanding.

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Property management, particularly in the New York City metro area, is a highly specialized field that handles tremendous, valuable assets. The barrier to entry into our field is pretty low, with a number of fly-by-night companies and inexperienced managers / companies in the field. They’re able to take on clients due to their cheaper pricing, which in many cases is the sole litmus test used by property owners and boards for their management hires. This begs to raise the question; should property managers and management companies be licensed in the State of New York or should it stay as it is; with no major restrictions or hurdles to jump over?

If you look to the state of Florida, real estate management companies are required to be Licensed Community Association Management firms and individual managers are required to possess the Community Association Manager license as well. Both of these licenses are obtained by passing background checks with the Federal Government, taking specialized courses, passing course tests, passing state level tests and then attending continuing education every two years. Once these tests are passed a license is issued through the Florida Department of Business and Professional Regulation and then the licensees and the firms are held accountable for their actions and also held liable for any violations of the state-level regulations. Rules are changing constantly and it is up to the licensee to ensure that they are following the law as it is written. No such laws or oversight exist in New York State.

In New York State, and a reason why so many real estate brokers turn to management in a downturn, a property management firm must be a Licensed Real Estate broker in order to collect rent (or maintenance / common charges) on behalf of the owner. Many companies do not know this law as it is not widely known and as a result do not maintain an active broker’s license for the firm. Other than that provision, there is no obligation by the management company to follow any statutes of law that relate specifically to the management of properties and the fiduciary responsibilities of a managing agent to the owner of the property. Of course all laws have to be followed with regards to the maintenance of a property and each property should be run efficiently in a law-abiding way, but there is no oversight at this time from the state to make sure that those who are running these properties themselves are both with a clean record and properly trained for the position.

Could the various buildings owners and boards in the area benefit from a systematic overhaul of the current system that would ensure that all of the employees managing their accounts be licensed and up-to-date with all current regulations and responsibilities? I think so. It would take a lot of work on both the state end and also with each individual property management company, but in the end it could benefit those who need it the most; the property owners who rely on us, as professionals, to maintain and properly manage their valuable assets.

– Mark Levine, RAM, CAM

On May 6, 2015, Mayor DeBlasio signed into law, Local Law 39 of 2015 (Intro 433 of 2014), which states that all multifamily buildings are required to maintain electrical outlet safety and tamper resistant receptacles in public areas (with the exception of public parts of the building that are used exclusively for mechanical or storage purposes).

Compliance of this law can be done in a few ways. Buildings can choose to install electrical outlets that are listed as tamper-resistant receptacles, in accordance with New York City electrical code, or they can install and maintain protective caps, covers or other safety devices over outlets. Failure to abide by the new law after August 4th will result in a building receiving a Class A violation.

If you have any questions on the implementation of this program and do not want to use protective caps, it would be in the building’s best interest to speak with a licensed and insured electrician to begin the process of installing tamper-resistant receptacles in all common areas of your building.

HPD has just released the 2015 – 2016 MDR’s on their website, allowing building owners and property managers to update before the September deadline to file. If you log onto your online portfolio (link here) you can create a new PDF to print and have signed / dated by the managing agent and the building owner (or officer of the Board).

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