In: residential housing
February 14, 2015
The Offering Plan of a Cooperative or Condominium is a huge book that is filed with the State at the time the Sponsor / Developer decide to offer their building up for sale to the open public. Being that it is so big, it’s often easy to get lost in the vastness of printed paper. For those looking to view the specifics of how many shares or what the percentage of common area ownership are in a particular unit, it could take while to narrow down the search if it is not known where this information is housed.
If you thumb through the beginning area of your Offering Plan in search of the specifics to either the unit that you own or that you are looking to purchase, the “Schedule A” will be one of the most important areas to verify ownership information. It is on that document that the apartment number, size (bedrooms and bathrooms), share count (% of common interest owned if a Condominium), original purchase price, approx. amount of the mortgage applicable to those shares and projected annual maintenance amounts. These amounts were essentially estimates at the time that the Offering Plan was filed with Attorney General, so it is possible that these amounts have since changed. It would be wise to check with either the Management company or the attorney to verify that these amounts are current and/or applicable to the unit in question.
We’re providing a sample Schedule A (click on this link) so that you can see the breakdown of the apartments and shares. Please note that this is in use for the building specific to this Schedule A and all others will vary accordingly.
Update on 1/15/15: On January 14, 2015, President Obama signed the bill that reauthorized TRIA for another six years, with a new expiration date of December 31, 2020. Although it was renewed, there are some revisions to the TRIA renewal program. These revisions include higher deductibles to insurers.
On December 26, 2007, the President signed into law the Terrorism Risk Insurance Program Reauthorization Act of 2007 (Pub. L. 110-160, 121 Stat. 1839) [TRIPRA]. This signing extended the existing Program through December 31, 2014, a date that is fast approaching.
New York City has some very specific snow removal rules for buildings within its boroughs. We’re concerned about snow removal from a few different standpoints; we want to sure ensure the safety of the residents, employees and passerby’s and we also want to limit the liability and potential exposure to lawsuit of our client buildings.
New York City’s Department of Sanitation requires that snow be removed no later than four (4) hours after the end of the snow fall or not later than 11:00AM, if the snow ended after 9:00PM the night before.
In addition, if the snow can’t be removed due to packed ice or other conditions, the building is allowed to place down cat litter, snow melt or a similar product for traction. Once the snow has melted or is readily able to be removed, we recommend that it is done so right away.
Snow is not permitted to be shoveled into the streets at any time. That practice is illegal. In addition, do not place snow on top of a fire hydrant. Those hydrants do need to be kept clear at all times.
Failure to abide by the rules can subject the building to a fine in the amount of $100 – $350 per infraction.
Keeping the sidewalks clear of snow and ice during and after a snowstorm will be of great benefit to the employees, residents and the general public.
Related Post: What are the Winter Heating Requirements?
New York State, as of December 3, 2014, is requiring that all current subleases acknowledge if there are or aren’t sprinklers in their respective units with a new Fire Sprinkler Acknowledgement Form (EBMG can provide you with a sample Acknowledgement, below). We are now going to include an Acknowledgement Form in all Cooperative sales and sublease applications (sublease only for Condos) for the new tenants to sign and will also be sending out an acknowledgement form to all residents that currently have a lease so that we have them on file.
This new code is for all leased premises, so it does apply to new leases, renewal leases and all Shareholders in a Cooperative with a Proprietary Lease.
Sample Acknowledgement Form (download)
Update for 2017: Click Here For NEW Regulations
In New York City, the winter heating season is from October 1st – May 31st of any given winter. The heating requirements are going to be significantly different from the other times of the year and we’re going to break it down for you so that you can easily understand the requirements.
Each day is split into two different times; there are the Daytime requirements, which last from 6AM – 10PM and there are the Nighttime requirements, lasting from 10PM – 6AM.
The following heat settings are in place during these two times:
Daytime (6AM – 10PM): When the temperature dips below 55 degrees outside, the internal temperature of any given apartment must be kept at or above 68 degrees.
Night (10pm – 6AM): When the temperature falls below 40 degrees outside, it is mandated that the interior temperature of an apartment must be kept at or above 55 degrees.
55 Degrees of an interior temperature sure does sound chilly, so most coop and condo buildings in NYC will keep their indoor temperature settings a little higher. This could be by altering the cycle of heat that the boiler is moving through, or it could be adjusting their complete system if that boiler works off of sensors within the apartment, as was discussed in the building.
If you feel as though you are not being provided with adequate heat (if this is a routine occurrence, and not a result of emergency boiler work or for major work such as a complete boiler replacement), it would behoove the tenants to call Management, and if they do not respond, to alert 311 so that they can step in on what may be a systematic issue.
Excel Bradshaw is pleased to announce that it will assume the management of 205 E. 10th St. Owners, Inc., a 30 unit Cooperative located in New York City. Effective October 1, 2014, this new addition will add to a growing portfolio in Manhattan. 205 E. 10th St. Owners, Inc. will be directly managed by Mark Levine, Vice President of Excel Bradshaw.
In this newest video, Mark Levine of Excel Bradshaw Management Group walks you through the new 2014 New York City Administrative Code Section 27-2051.1, which deals with emergency preparedness and notifications for residential buildings.
Buildings are now required to post specific information about relevant weather events, utility outages that will last more than 24 hours, evacuation details, emergency contact numbers and building specific numbers and contact information in the event of an emergency. The information is to be posted in 11-point type or larger.
We would recommend emailing to all residents in addition to posting in the lobby and/or sliding under doors.
EBMG Template For Memo: https://ebmg.com/wp-content/uploads/2014/08/EMERGENCY-NOTIFICATION-TEMPLATE.docx
Schechter & Brucker Original Memo: https://ebmg.com/wp-content/uploads/2014/08/emergency_preparedness_memo.pdf
NYC Office of Emergency Management: http://www.nyc.gov/oem
Find Your Flood Zone: http://www.floodzonenyc.com/
In Condominiums and Cooperatives, one of the factors that will play into whether your Unit Owners, Shareholders or the building as a whole can easily get financing is the percentage of investor-owned units. Investor-owned, in this case, is a unit that is sublet out. If a building has greater than 15% of their units sublet out by the respective owners / shareholders, the banks will take notice and may give an issue when trying to obtain financing.
There are some buildings that don’t allow subletting at all, but most will at least make it difficult or onerous to do so. A sublet fee based on a per share basis, a flat fee or a sliding scale for different years can be put into place to create soft income for the building. The theory is that the person who is subletting out their unit is making money on the transaction, so why not also create a fee within the building.
In NYC Cooperative buildings (or in all locations, really) adding someone to a stock certificate may seem like something that should be easily approved, but it is often a lengthy process.
The Cooperative Board of Directors is charged with protecting the interests of all of the Shareholders in the buildings, so when someone is being attached to the shares of a particular apartment, it is their fiduciary responsibility to ensure that this person will be able to financially afford to pay for the monthly maintenance, along with all other debts in their lives.
Even if this person has been living with the Shareholder for a lengthy period of time, most Boards will consider this transaction similar to a new purchase of an apartment and will ask for detailed reports on the financial activity of the new person applying.
These processes can also be costly. There are costs for application processing, Board review and then ultimately, the closing of a new stock certificate and proprietary lease.
From time to time a Unit Owner or a Shareholder will place an illegal sublet into their unit without the prior written authorization of the Board of Managers or the Board of Directors in that particular building. One Board Member had inquired if they could take it upon themselves to remove the sublet directly or if they needed to go to bat with the Shareholder in question, first.