FNYHC | Federation News

REAL ESTATE TAX ABATEMENT EXTENDED FOR TWO YEARS

In early August, the New York State Legislature adopted the state budget that included a two-year extension of the real estate tax abatement for cooperatives and condominiums at present rates. Those cooperatives and condominiums that are already in the program and have sent its updated information to the New York City Department of Finance, you do nothing. Those buildings, which have not participated in the real estate tax abatement program before, but would like to do so now, call the Department of Finance at 212-669-3212. Information detailing the individual unit various abatements and exemptions (real estate tax abatement, Enhanced STAR, STAR (first time), Veterans, and Senior Housing Exemption) will be mailed to the designated contact person near the end of the year, at this time it is estimated sometime in November. The Real Estate Tax Abatement will be reflected in the revised January 2000 tax bill, retroactive to July 1999. A Cooperative Board must pass the abatement to its' qualified shareholders by June 30, 2000.

The Federation would like to thank all who wrote, called, and visited your Legislators to ensure the passage of this abatement extension. With your help, this important piece of legislation was passed.

FEDERAL: As written previously in the Federation's newsletters, we informed you that as of June 1, 1999, if your building was built before 1978, you fall under the Federal Environmental Protection Agency's (EPA) Renovation Disclosure Compliance. As of June 1, 1999 any renovation (or any persons performing renovations for compensation) must give the affected unit(s) a lead hazard information pamphlet and obtain a signed acknowledgment from each recipient. This new regulation will place another layer of paperwork on the building. Although it is the contractor who must provide the information, the contractor's extra costs will be passed to the building. Additionally, there are some ambiguities in the regulations that EPA officials say they will make clear. Painting over paint in preparation of new tenants, minor spot scraping or sanding (less than two square foot area) is not considered a "renovation". Washing down walls is not surface preparation.

Notices: Renovation activities preformed on a cyclical or recurring basis may be grouped into a single notice. Requirement: list expected starting and ending dates or may group all renovation activities over a sixty-day single notice distributed every 60 days. Any activity held over can be addressed in the next notice.

Dates: Exact dates may not apply, terms like " on or about", "early" or "late" are acceptable.

In large buildings (50 or more units) notices go to "affected units" only ( e.g., a hallway only goes to those on the floor) and posting of placards at renovation work site stating the same information as the individual notices.

Two things are now clear: 1. If an outside contractor is paid, the EPA will be looking to the contractor's records for compliance. 2. If the building's staff or agent's staff does the work, EPA will look to you or your agent for compliance.

Highlights
Lead paint hazard: Peeling paint or deteriorated surface where a child six years or younger resides.

Obligations: You must send out an annual notice to find out if a child six years or younger resides in an effected unit. Upon notification from the resident that a child six years or younger resides in a particular unit that unit must be inspected.

Inspection: If a child six years or younger resides in a unit, an annual visual inspection looking for peeling paint or deteriorated surface must be done.

You have a lead paint hazard- it become a Class C immediate health hazardous violation. Work must be done in a very short prescribed period of time.

Work methods: Some of which are neither dry scrapping nor sanding. Minimizing the generation and spread of dust, covering of furniture and floor areas, vacuuming or wet mopping of all affected areas at the end of each and every day while performing the work. A dust wipe test must be preformed at the end of the job.

Time element: Work must be done 21 days after receipt of violation, an extension for an additional 15 days is allowed after that ãHPDä is required to do the work under more stringent rules.

Vacancies: All peeling paint or deteriorated surface must be wet scraped, hepa vacuumed or washed with detergent and repainted, floors must be smooth and door, windows, and cabinets must be adjusted so that painted surfaces will not bind.

Defenses if sued: Resident never responded to the notification and you had no knowledge of a child six years or younger residing in the unit and no access for doing the work.

HPD and Department of Health: They are promulgated to issue rules and regulations to enforce the legislation.

Is your building mastered metered for electricity? Want to help your City, community, neighbors and building? CONSERVE ELECTRICITY!! Remember this summer? During this period of electric deregulation, do you want to take advantage of the price structure of master meter but still conserve electricity? When residents pay for the electricity they use, consumption in an average building is reduced as much as 30%. Submetering is the answer.

The Federation has joined engineer Herbert Hirschfeld, P.E. in obtaining a grant from the New York State Energy Research and Development Authority (NYSERDA) under its' New York Smart Energy Program. This grant will pay for your building's feasibility study and more. (See last page of this newsletter) Come to a meeting to find out why submetering of electric is for you. The Federation, along with the Council of New York Cooperatives and the Coordinating Council of Cooperatives has joined together to sponsor this important event. The date is Thursday October 14, 1999. Please call the Federation to sign up (718-353-5080) Space is limited!

On June 12, 1999, a fire destroyed the offices of the National Association of Housing Cooperatives (NAHC). Those Federation members who also are members of NAHC have already received a letter to outreach for contributions to the "NAHC Fire Recovery Fundä. The Federation urges our member buildings to contribute whatever you can to help NAHC. In Washington, The NAHC was always in our corner, now its' time to be in theirs. To get more information or to make a pledge please call them at 202-737-0797.

The Federal Communications Commission (FCC), once again is pushing for a proposed rule known as the "forced entry" rule. If adopted this will have a large impact on you. This rule will require you to allow multiple telecommunication service providers to enter freely and use your property to sell services to your residents without your consent. Thus taking away any negotiation leverage the Board may have. The FCC is bowing to the pressure of telecommunication service providers. We have to stop this madness. The Federation is working closely with the National Association of Housing Cooperatives and other National real estate organizations towards this end. You can help by expressing your concerns to your House of Representative legislator and Senators Moynihan and Schumer. Do you want your hallways looking like the back of your entertainment centers (Wiring all over the place) ACT NOW!!

Water rates have increased by 4% on all metered and non-metered in the City of New York effective July 1,1999. The sewer portion of the water and sewer bill remains unchanged at 159% of the water charge.

During June and July of this year the Manhattan District Attorney indicted a number of real estate managers, contractors, architects/engineers and sadly Board members. More to come in the fall of this year. A lot has been written about this sad chapter in the co-op/condo community. Look for the Federation's President, Greg Carlson's editorial in the Cooperator's October issue and find enclosed a copy of his editorial from the Cooperator's November, 1998 issue on bidding. Boards -- remember beware of managing agents bearing low fees.

A BULK OF THE FEDERATION'S TIME HAS BEEN DEDICATED TO OFFERING OUR MEMBERSHIP SERVICES THAT MAY HELP TO SAVE YOU MONEY OR HELP YOUR BUILDING.

The Federation's web-site is now online. The site is in its infancy stage, we will be mailing to all our members an opportunity to list their building's information at our web-site. Right now, the site provides a legal corner, event list with links to other cooperative sites, legislative issues, a question and answer page where you can ask your questions directly to the Federation and the Federation Newsletter. Please visit our site at "FNYHC.ORG", let us know what you think and don't hesitate to ask us questions.

The Federation has signed on to the Durnan Group Managers Workers Compensation Safety Group. One of the line items on all of our member buildings with staffs is workers compensation insurance. The Federation has been studying different workers compensation insurance providers and has concluded that the Durnan Group best fits the needs of our membership. With discounted premiums up-front and a substantial dividend at the end of the year, makes this safety group the best deal around. Each claim is investigated thoroughly, which is why this group can offer the best workers compensation package in the state. To find out more information or to sign up, please call the Durnan Group Managers at 1-212-768-9191 and make sure to tell them you are a Federation member.

With all the confusion concerning electric deregulation, a new Energy Service Company (ESCO) is consumer oriented. 1st Rochdale Cooperative is an energy company that is owned by buildings who belong to 1st Rochdale. They are not just an energy provider, as the other ESCO's. Similar to what happens when you belong to a cooperative, there are no investors, so the consumers are the owners. In addition, they will do energy audits on your building to see what can be done to diminish or reduce your demand side electric bill, which will save you kilowatts and money. Now is the time to think about the next phase in the deregulation process, which starts in January 2000. Start now in preparing your building, talk to all the "ESCO's" and talk to 1st Rochdale, you will be surprise in what you hear. For further information, please call 1st Rochdale at 1-212-673-3900.

THE FEDERATION WILL HOLD ITS 43RD ANNUAL SEMINAR AND TRADE SHOW FOR HOUSING COOPERATIVES & CONDOMINIUMS ON SUNDAY, February 6TH, 2000. START THE MILLENNIUM OFF RIGHT, JOIN US!!

The City of New York's Department of Environmental Protection's (DEP) Commissioner Joel A. Miele, Sr.P.E. called a meeting of multi-family real estate leaders concerning the City's Water Meter program. The Federation was there to represent you. The City is under a court order decree to convert all property from frontage charges to water meter billing. The homes with five or fewer units have 85% compliance. The multifamily sector (six units or more) has only 45% compliance. There are many reasons for the number of non-compliance buildings (approximately 60,000 buildings), which the Federation won't go into now. Please take note of the next paragraph:

IF YOUR BUILDING IS CURRENTLY BILLED ON FRONTAGE FOR IT'S WATER AND SEWER AND YOU HAVE NOT INSTALLED A METER BY MAY 2000, YOUR FRONTAGE BILL WILL HAVE A SURCHARGE ON THE BILL. THIS IS FOR NONCOMPLIANCE IN INSTALLING A METER. THE SURCHARGE WILL DOUBLE YOUR FRONTAGE BILL.

If you install a meter you can still be billed on your frontage system. Unfortunately, this only lasts a year and must be renewed by the Water Board for all building under this category each year. The Commissioner told the attendees that the Water Board intends to work on a program to ease any upward cost to a building. (The key word here is intends).

Shortly, DEP will mail a letter to those properties that have not yet complied with the mandatory water meter installation. One problem is who will get this notice, if it's the escrow companies or lenders, how will a building know if they do not pass it along to property owner.

The Federation has invited DEP to our 43rd Annual Trade show and Seminar to speak to our member about this compliance issue. If this affects you, make every opportunity to attend this workshop.