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LEGISLATIVE
ALERT!!! INTRO
967
On
Friday, May
22, 2009 Greg
Carlson, Mona
Shyman and
Geoffrey Mazel,
represented
the Federation
in a private
meeting with
Jim Gennaro,
City Councilman
who is a Primary
Sponsor of
this legislation.
Also in attendance
was Warren
Shreiber, President
of the Bay
Terrace Community
Alliance and
Jay Shusteroff,
President of
the Bay Club
Condominiums.
The purpose
of the meeting
was to emphasize
to Mr. Gennaro
the possible
devastating
effect this
legislation
could have
on Cooperatives
and Condominiums.
First, briefly
summarized,
the proposed
law imposes
the following
requirements:
1) The law
will apply
to owners
of buildings,
including
condominiums
and cooperatives,
with more
than 50,000
square feet.
2)
Owners
would be
required
to retain
an approved
energy professional
to perform
a comprehensive
and systematic "Energy
Audit" of
the building's
central operating
systems that
use energy
or which
impact energy
consumption,
including
the building
envelope.
3)
The Energy
Audit shall
identify
a) all reasonable
non-capital
operational
repairs and
adjustments
("Retro-Commissioning
Measures")
and
b) all reasonable
capital alterations
involving
the installation
of new equipment,
insulation,
or other
proven energy
efficient
technologies
("Retrofit
Measures")
c) which,
if implemented,
would reduce
energy use
and/or the
cost of operating
the building.
4) With
certain limited
exceptions,
building
owners would
be obligated
to perform
all of the
repairs and
all of the
capital installations
identified
in the Energy
Audit for
which there
is a projected
7 year payback.
5) There
is no cap
on the amount
of money
an owner
would be
required
to spend.
6) The
bill allows
for a 3 year
period of
time between
the completion
of the Energy
Audit and
the completion
of all required
work.
7)
An "Energy
Efficiency
Report" certifying
the completion
of the work
required
by the Energy
Audit, along
with copies
of approved
construction
documents
and sign-offs,
must be filed
with the
city.
8) The
city will,
by rule,
assign due
dates for
the completion
of work and
the filing
of the first
Energy Efficiency
Report pursuant
to a staggered
schedule
over a 10
year period.
The City
will designate
10% of the
buildings
to complete
their work
each year,
with the
first 10%
of the buildings
required
to complete
their work
by December
31, 2013.
9)
Owners
may apply
for a 1 year
extension,
but no more
than 2 extensions
will be granted.
Owners may
also request
extensions
if they are
unable to
secure loans
to finance
the work
or if the
building
is deemed "financially
stressed".
10) Energy
Audits and
Energy Efficiency
Reports must
be completed
every ten
years.
Mr.
Gennaro was
extremely receptive
to our concerns
and suggestions
as to how to
modify the
legislation,
including:
- There
is a vast
difference
in the financial
means of
a luxury
coop on Fifth
Avenue and
a middle-class
building
in one of
the outer
boroughs.
- Coops
and Condos
will generally
not have
sufficient
funds in
their reserve
accounts
to pay for
the extensive
alterations
and installations
identified
in the Energy
Audit.
- Coops
and Condos
may be faced
with other
non-green
major repairs
and capital
improvements
that demand
immediate
attention
to ensure
the sound
and safe
operation
of the building
or which,
in the judgment
of the Board,
warrant a
higher priority.
- Coop
shareholders
and Condo
unit owners
may not be
able to easily
afford the
substantial
assessments
that in all
likelihood
would be
necessary
to pay for
the required
work.
- If
financing
is sought
in lieu of
a large assessment,
Coops may
be unable
to refinance
their underlying
mortgage
or to obtain
a second
mortgage,
especially
since property
values have
declined
in recent
years. Even
those coops
with considerable
equity may
find it difficult
to obtain
financing
in today's
tight lending
environment.
- We
suggested
that the
payback should
be 5 years,
not 7.
- A
cap should
be placed
on the amount
of money
a condo or
coop would
be obligated
to spend
during a
specified
period of
time.
- Inasmuch
as it is
not unlikely
that the
Energy Audit
would identify
more than
1 building
system for
upgrading,
perhaps coops
and condos
should not
be required
to complete
work on all
of the building
systems within
the specified
3 year period
of time.
- Even
if only 1
building
system needs
upgrading,
coops and
condos should
be given
a period
of time longer
than 3 years
to perform
the work.
- Less affluent
coops and
condos with
less annual
income or
fewer reserves
should be
treated differently
than those
with more.
A
public hearing
before the
Environmental
Committee that
is scheduled
for June 18
at City Hall.
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