New York City just introduced Neighborhoods.nyc, a website that is devoted to bringing together the communities that make up the boroughs of the City and hosting a place where people can organize, communicate and learn more about their area.

(more…)

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:

(more…)

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…)

**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…)

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.

Did you know that if you reside in a building in New York City that is between 5 and 75 residential units and a customer to either ConEd gas or electric service, you are qualified to obtain a FREE ConEd Green Team Survey by a Green Team energy professional? As part of a program to incentivize buildings, and residential occupants, to save energy by using more energy efficient products, the Green Team professionals will evaluate all of your lighting and heating equipment and will offer energy-saving recommendations throughout your property.

The survey will arrive to the building owner or manager and will provide all of the information that you need in order to make a decision, based on their recommendations. There is no requirement to abide by their recommendations at any time.

In addition to the free survey report and recommendations, a Green Team professional will also install free CFL’s, water saving devices and smart strips in residential units. There is also the possibility of building owners receiving rebates for eligible upgrades to common area equipment, including lighting fixtures, LED exit signs, HVAC and building management systems.

To sign up for the survey or to obtain information on the process, you can call ConEd directly at 877-634-9443

Have you run into this scenario before; a Board member resigns during their term and the Board of Directors (or Managers), collectively, appoints a replacement to the position that was just vacated? It should be smooth sailing and without issue, but if this is a cooperative or condominium with an opinionated ownership base, they’ll want to know why the new Board member wasn’t appointed by the shareholders or owners, as a whole.

While it would seem that putting it out to all shareholders or unit owners would be a great idea, it’s not often done, for a variety of reasons. One reason is that it is difficult to get all shareholders and owners to another meeting that is not the Annual Meeting and it is much quicker to appoint someone who is interested in serving on the Board for the remainder of this term. In some cases, there may be a committee member who has been serving on the periphery of the Board and this is a great opportunity to increase their level of participation, if it has been shown that they have something to offer, beyond just filling an open seat.

The reason that the Board will have the final say of who to appoint, in most cases, is provided for in the Bylaws of the building. For instance, below is a partial section of the Bylaws from a NYC cooperative, as it pertains to Vacancies:

When any vacancy exists or occurs among the directors by death, resignation or otherwise, the same shall be filled for the remainder of the term by a majority of votes cast at a special meeting of the remaining directors duly called for the purpose or at any regular meeting of the directors, even though a quorum shall not be present at such special or regular meeting.

As you can see in the above paragraph, the Board has complete control over who they appoint to fill the remainder of the term that was vacated. This could be a period of only a few months or it could be a multi-year term that the new appointment will fulfill.

Just because an appointment was made to the Board does not mean that the shareholders or unit owners are completely without hope if they absolutely disagree with the new appointment. If for any reason they are completely unhappy with this appointment, or the Board in general, the could also look to their bylaws to remove either one or more persons from the Board. They would have to follow the passage in the Bylaws that pertains to removal. From the same NYC cooperative bylaws on Removal:

Any director may be removed from office at any time with or without cause and at the pleasure of the shareholders, upon affirmative vote of the shareholders of record taken at a shareholders’ meeting duly called for that purpose; provided, however, that the directors elected by the holders of Unsold Shares can be removed without cause by such holders of Unsold Shares who alone will have the right to designate a replacement.

There’s no way that each and every shareholder or unit owner will be appeased in each situation, and this is a great example of this. More often than not, the Board will have someone in mind to fill a space on the Board if one should become vacant for any reason during the term of service. It’s up to the shareholders or unit owners to take matters into their own hands if they feel their interests are not being properly represented by the existing Board members.

As I always say, if you’re unhappy with the Board you have, throw your name into the ring the next time around and get on the Board to make a change.

In January 2014, NYC enacted a new rule for those properties that had a retaining wall that is greater than 10-feet high and located on a public right of way. Local Law 37 of 2008 now dictates that all of those properties that fall into that category have their retaining walls inspected every five (5) years to determine if they are Safe, Safe with a Repair and Maintenance or Unsafe.

If you’re familiar with Local Law 11 for the facade, then you’ll be familiar with this as well. Depending on where your building is located, you will need to file in the year that is attributed to your borough.

2014: Bronx
2015: Manhattan
2016: Staten Island
2017: Queens
2018: Brooklyn

The DOB provides civil penalties of $1,000 per year for failure to file, plus $250 per month penalty until the property owner is in compliance. Failure to repair an unsafe condition carries a $1,000 per month fine until corrected.

We would recommend that all properties that are now required to inspect and file their properties talk to a local engineer that is qualified to perform the inspection and file on your behalf.

Beginning on March 1, 2015, New York City has a new law on the books that will require residential buildings to post a “Housing Information Guide For Tenants and Owners” that will alert residents in both english and spanish that there is a “ABC’s of Housing” guide located on the HPD website at www.hpd.gov/hpd.

For buildings that don’t post these new notices in the common area (such as a vestibule or mail area), the building could be subject to a fine of $250 for the infraction. If you would like to grab the text of the new law, you can download our PDF by clicking here or by downloading via the PDF at the beginning of this post.