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?

(more…)

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.

(more…)

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.

(more…)

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).

(more…)

**Update on 5/8/15: The NYC Water Board voted to raise the water rates for FY2016 (effective 7/1/15) by 2.97%.**

The New York City Water Board has recently received a formal recommendation from the Department of Environmental Protection that the water rates should be increased for 2016. The increase that has been noted is 3.24%, which would also mark the second annual increase under Mayor de Blasio (3.35% last year).

(more…)

As we’ve covered before, Local Law 11 is one of the critical inspections and filing procedures for buildings that are large than six (6) stories within the confines of New York City. We’re now in Cycle 8 (info on that here). But if your building never filed for Cycle 7, and was required to, that would usually lead to harsh fines and penalties from the City. An Amnesty Program was just announced that should ease the burden and help the city stay safe at the same time.

(more…)

We have covered the heating requirements in multi-family buildings (link here) in the past, but what do we know about the required hot water temperature within an apartment that is located in the New York City area? That’s pretty easy, so long as you know the law.

WHO DOES THE LAW APPLY TO? Under New York State law, the law applies to all owners of buildings with three (3) or more apartments that are built after April 18, 1929, and before January 1, 1951 that are three (3) stories or more in height AND all owners of buildings with three (3) or more units that are built after January 1, 1951.

Under a more specific New York City hot water law, the law applies to all owners of buildings with three (3) or more units built before April 18, 1929, all owners of buildings with three (3) or more units built after April 18, 1929 and before January 1, 1951 that have fewer than three (3) stories AND all owners of tenant-occupied 1 or 2-family dwellings in NYC.

WHAT DOES THE LAW REQUIRE? The New York State hot water law requires that all residents in a building that falls under the jurisdiction be given hot water that is at least 120 degrees Fahrenheit in every shower, bath and sink, 24-hours per day. Building owners in New York City must provide hot water that is at least 120 Fahrenheit in every shower, bath and sink between 6am – Midnight, every day of the year.

NEW YORK CITY LAW ONLY: Owners that fall within the NYC hot water law must install an anti-scald feature on any valve that controls the water supply to bathtubs and showers when renovating the water supply in the bathroom or when installing a new bathroom. An anti-scald feature will prevent the temperature from reaching above 120 degrees Fahrenheit, to prevent burns. If an anti-scald device is used, the minimum temperature that it can have water coming out is 110 degrees Fahrenheit.

WHAT FINES CAN MY BUILDING BE SUBJECT TO FOR NOT PROVIDING HOT WATER? Should your building fail to provide adequate hot water to residents as prescribed by State law, the building owner may be fined $500 and/or imprisoned for up to 30 days, per offense. Owners who violate the City hot water law could be fined between $250 – $500 for a 1st violation and between $500 – $1,000 per day for each violation that occurs during the same year. If renovating a bathroom or installing a new bathroom, the fine for not installing a proper anti-scald device can see a $500 penalty per violation.

Hot water and heat are two of the most important services that a landlord / building owner can provide. While it’s understandable that from time-to-time there will be boiler issues and repairs are warranted, a systematic problem that sees residents out of hot water on a consistent basis is a problem that will need to be resolved.

If you are in a building with a systematic hot water or heat issue, please call 311 (after calling your building management company) to report the building and to have an inspector visit and issue a violation, if needed.