2009 April
2009 April Vol. 29, No. 4
Focus on...Real Estate Market/Expo
A Look Back at a Wild Year
The year 2008 is likely to go down in history as one of the most disappointing
(or maybe flat-out alarming) for the U.S. economy in general. To be fair, the
city hasn’t suffered as much as most of the nation has—but the co-op and condo market has not escaped the crisis unscathed.
Read More
New Economic Changes the Game
Despite the collapse in housing prices in much of the country and a definite
slowdown in sales, new residential development in New York City—and Manhattan in particular—continues, though at a much more modest pace than in recent years. The Big Apple
may not be experiencing the all-out freeze on new growth that’s stalled other markets, but the impact of the mortgage crisis and financial
meltdown is definitely being felt in the form of fewer new projects, slow sales
in projects near completion, halts to some new condos in the pipeline, and a
much tougher market for developers trying to get financing for new buildings.
Read More
The Sky is Falling...Prices, Too.
On September 15, 2008, Lehman Brothers investment bank went under in the largest
bankruptcy of all time. The economy was already on the decline, other august
companies had already foundered, and both presidential candidates were
proclaiming the situation as the worst economic crisis to face the U.S. since
the Great Depression.
Read More
Staying Afloat in the Co-op/Condo Market
Bad economic news is pretty much inescapable these days. You can’t turn on the TV without hearing about another round of layoffs or plummeting
consumer confidence. The stock market is a roller coaster, retirement funds are
shedding value, the housing market has gone mad and each day seems more
uncertain than the last.
Read More
Not Everyone In Favor of Flip Taxes
Everyone is feeling the crunch of the ongoing recession and as building
communities look for ways to raise revenue without adding to their residents’ current financial worries with large assessments, flip taxes are becoming a hot
topic.
Read More
Smart Choice In Hard Times? Maybe, Maybe Not
For a building to run in accordance with the law and to deliver its owners and
tenants the rights they deserve, good management is crucial. Most co-ops and
condos hire a management company to provide the guidance they require;
management companies make it their business to know the current rules and
regulations for the buildings they handle, and provide services ranging from
cleaning the lobby to signing off on multi-million dollar service contracts.
Read More
Problems with Persians, Parakeets and Pooches
Oh how we love our pets! From common household pets—dogs, cats, birds and fish to even rodents and reptiles, Americans looks to
their pets as a source of companionship and entertainment.
Read More
A Look at Green Roofs
It’s such a simple idea—covering your roof with plants—that it’s no surprise people have been doing it for millennia. From the hanging gardens
of ancient Babylon to the terraced farmsteads of the Andes, working greenery
into everyday architecture is a tradition that predates our modern “green” consciousness and repeats itself across cultures.
Read More
The Recession's Impact on Buildings' Borrowing
The mortgage crisis has been felt throughout the country, and markets and
individuals alike have moved from denial and bargaining to acceptance of the
recession and its attendant challenges. And while New York City’s co-op and condo market has not been affected in the same way as many other
areas of the country, it is most definitely experiencing the effects of a
deeply-troubled economy.
Read More
Keeping Balconies Safe and Attractive
Ever since “Romeo and Juliet” made them famous, balconies have been popular additions to our homes and living
spaces. For co-op and condo communities, balconies can add an extra perk, a few
more feet of living space that allow us to enjoy the outdoors and some time in
the sun.
Read More
What to Do Before the Emergency
You’ve been notified of a cardiac (or other) medical emergency in your co-op or
condo building. Someone has called 911, someone else is administering cardio-pulmonary
resuscitation (CPR) and someone else is bringing the automatic external
defibrillator (AED).
Read More
What You Need to Know About Mechanic's Liens
Mechanic’s liens are one of the topics I am most often consulted about. This is
especially true at the present time with the state of the economy. It is not
that the economy brings new kinds of issues, there are just a lot more of the
same kinds of issues. Contractors, subcontractors, architects and suppliers are
all worried about not being paid and what will happen if co-op and condominium
clients or individual shareholders and unit owners cannot pay their loans and
in turn, pay them. Similarly, co-ops and condominiums are worried about
foreclosures on those mechanic’s liens and how these issues will affect the building.
Read More
A Green Lining in a Down Market
The realities of a depressed real estate market have finally settled upon New
York City. We’ve seen a significant drop in sale prices over just the past few months. This
has been coupled with a rapid increase in inventory levels as units stay on the
market longer, further exacerbating this downward spiral in price. While there
are many reasons for the slump in the housing market that can and have filled
many other articles and columns, the real question is what can a building do to
attract new buyers and to keep existing owners in their units in the future.
Green design and energy efficiency improvements provide an opportunity for
buildings to address demand for and price of their units on the market.
Read More
What You Must Know
It’s amazing how good building owners and managers are at increasing and garnering
revenue from residential tenants while at the same time leaving themselves to
the will and whim of laundry room operators who impose contracts lasting for
decades with automatic renewals, rights of first refusal and other one-sided
provisions. The fault is with the owner and owner’s counsel for failing to exercise even rudimentary due diligence. This article
attempts to equip boards with the a few tools to negotiate a better and more
lucrative agreement.
Read More
Legal Cases Your Board Should Know
While not everyone who serves on his or her co-op or condo board needs to be an
attorney or have an encyclopedic knowledge of the law, it never hurts to be
aware of the important, often precedent-setting legal decisions being handed
down by the courts. Some of these cases offer useful insights to boards, while
others may ultimately have an impact on how buildings are run from day to day.
Over the past few months there have been several such decisions—here are a few that may provide building administrators with some helpful ideas
and information.
Read More
Answering the Day-to-Day Questions
Your roof terrace leaked and the neighbor below you sued for damages. The
heating system in your apartment failed to work and the managing agent sent you
the bill for its repair. You bought a dog for your child, and six months later
the board has demanded that the animal be removed from the building. What are
your options in these scenarios?
Read More
Training for Building Personnel
On the infamous evening of September 11, 2001, Battery Park City resident Hank
Wisner was unable to go home to his smoke- and ash-filled apartment across the
street from the World Trade Center. As he watched the day’s events play over and over on a friend’s TV, he realized that the average civilian is unprepared to handle an emergency
situation of that magnitude. In the months following 9/11, Wisner began
shopping around for a program his building community could implement to address
emergency rescue issues.
Read More
Sustainable South Bronx
As a neighborhood, the South Bronx has struggled for nearly three decades under
the negative connotations of its name as a flash point for violent crime,
drugs, and unchecked urban decay. For many of those who live there, life is
bounded on all sides by pollution and poverty.
Read More
Q&A: Is Seller Allowed at Prospective Buyer Interview?
We are a small co-op building of 28 units in Jackson Heights, Queens. We would like to know if during an interview of the prospective buyer a seller is allowed to be present, where he/she might intervene during the process favoring the prospective buyer and influencing shareholders, before and during the voting for approval of the buyer. Read More
Q&A: Buying Into Building with Low Reserves
My offer on a co-op was accepted and the co-op sent some of the financials to my attorney. I’m told that the building’s financials are “OK,” not terrific and not terrible. My attorney said that the reserves are $140,000 or approximately $2,000 per person (I’m assuming per unit) but he would have expected $250,000 to $300,000 in reserves. The apartment is located in a nice section of the Bronx (Riverdale), but I am clueless as to what the average cash reserve should be, if it depends on where the co-op is located, if building amenities impact reserve, etc. I cannot afford to buy a co-op that I will have difficulty to resell, due to the co-op’s financials, even though I plan to live there for many years. Is there any specific information that you can provide to help me determine whether this would be a sound investment? Is there a place where I could discover neighborhood average reserves? Read More
Q&A: Charging Shareholders for Washing Machine Usage
In a previous issue of The Cooperator, attorney C. Jaye Berger discusses the matter of allocation of costs by shares for services such as electricity and water, as opposed to person adjusted usage. I do not take issue with her comments, but would like to raise a related issue, one in which the discrepancy is not random, but based on board policy. Read More
Q&A: Foreigners in Flats
We live in a medium-sized co-op in Chelsea with seven apartments per floor. It is clear to me that a woman who lives on our floor is using one or two of her bedrooms as a bed and breakfast (B&B). She must advertise on something like European Craigslist because there are always foreigners coming in for a long weekend or a week at a time. I have mentioned this to the board of directors, but they are not planning to do anything because there are people who have girlfriends and boyfriends living with them long term. The board is not sure where to draw the line on guests (the policy is no more than a month), and they cannot be sure this woman is charging people to stay with her. I feel this is more of a safety issue. My daughter is always running out into the hallway when she hears people, but it’s never people we know going into this apartment. It makes me very uncomfortable. You’d like to think that an owner knows their visitors. I also think the building staff might be complicit although I cannot be certain of this. Anytime I’ve complained to the super or asked a doorman, who is visiting the apartment, I’m always told it’s a relative. Please give me some advice that I could take to the board. I have no problem with legitimate visitors, but I do have an issue with new people coming almost every weekend. Read More
