THE FEDERATION OF NEW YORK HOUSING COOPERATIVES' 43rd ANNUAL SEMINAR AND TRADE SHOW

On Sunday, February 6th, 2000, the Federation of New York Housing Cooperatives (FNYHC) held New York's longest running Seminar and trade Show. In the middle of winter on that Sunday, sunshine and warmth filled the air and Queens College. The show opened its doors at 8:15 in the morning. The well-attended participants snaked thru the aisle of the many trade booths. The vendors at the show reconnected with some old friends and established new leads. All aspects of the building industry from suppliers, service and professional exhibitors were represented. The vendors appreciated a trade show geared to the Directors, or the building decision makers.

The morning seminars opened with such topical subjects as corporate documents to the developing saga of discrimination. After a break, the participants visited the trade booths and then the midmorning seminars were held. Updates on federal legislation and regulations and the first of the very popular, "ask the attorney round table", were given. After the participants received a head full of information, it was time to visit the vendors. Before you could complete your rounds of vendors, it was time for lunch.

Mr. Carlson gave a short speech noting some of the highlights of the previous year, including updates on lead paint, property tax and sub metering of electric and the "FEDERATION WEB SITE" (FNYHC.ORG). He also informed the luncheon attendees of the benefits of both the Federation and our national group NAHC. During the courses of the luncheon, Mr. Carlson spoke about a new ESCO (Energy Provider) 1st Rochdale, represented by Greg Wortham, which is a cooperative energy company for our cooperatives. Your building signs up and YOU are a shareholder of 1st Rochdale. Another new membership service was also previewed when Greg told the audience that the Durnan Group would give our membership the finest and most affordable workman's compensation safety group, with significant discounts and even larger dividends. Your building needs to be part of this family now.

The Federation President remained at the podium to present the "CHARLES RAPPAPORT, DIRECTOR OF THE YEAR" award. This prestigious honor was given as a memorial to the late Charles Rappaport, long acknowledged as a Cooperative leader in New York City. This year there were two recipients, (A tie) the first Cooperative Director to receive the honor was John J. Grimes, President of Dorie Miller Housing Co., Inc. Mr. Carlson spoke of the great accomplishments, both financially and community wise, John has bestowed on this one of the Federations oldest members. The other Cooperative Director to receive the honor was Pearl Margolis; President of Georgetown Mews Owners Corp. Mr. Carlson spoke about saving the sprawling, 930-unit complex from going under during the sponsor’s default. Pearl took the brass ring and thru her negotiating skills, scaled down the underlying mortgage, paid late fees of over $1,200,000 and caught up with the late payments to vendors. Pearl became a boiler expert and despite the recommendation of a new boiler, repaired the old boiler, saving the cooperative again over $1,000,000 and it’s still running – that was seven years ago! All this and more with no maintenance increase in over 13 years. Mary Dubois of Brulene Cooperatives Apartments Inc. was given a certificate of appreciation for her many skills and know- how acting as First Vice-President for the cooperative.

One government official, Assemblyman Mark Weprin, also address the luncheon crowd, supporting the needs of cooperatives and condominiums. After Greg spoke about the challenges facing our communities on all levels of government, federal, state and city, he spoke of the need for continuing contributions to finish up the work on fairness of property taxes. "The road that Charles Rappaport paved must not be forgotten. The Federation will be driven on, in the memory of the ideals of Charlie", echoed Mr. Carlson. He then reminded the Federation's members, Board and guests, of Eva Rappaport's great efforts for the Federation. Greg ended the luncheon by informing the participants that without the exhibitors, the Federation would not be able to put on this great show, so please patronize and support those exhibitors who support the Federation.

The afternoon was capped off with an excellent professional's roundtable. When the afternoon sessions ended, those who attended stayed to see if they won the shows spectacular door prizes. All had a great time and learning experience.

A NEW FEDERATION SERVICE FOR ITS MEMBERSHIP

The Federation of New York Housing Cooperatives, in collaboration with the engineering firm of Herbert E. Hirschfeld, P.E., has received funding from the State of New York (The New York State Energy Research & Development Authority) to provide direct assistance to master metered residential buildings interested in evaluating the technical and economic feasibility of electrical submetering.

These services include a building survey and preparation of a study specific to your building and a meeting with your Board of Directors to review this report, answer questions and address all pertinent submetering issues.

All Fees for these services are paid by NYSERDA and there is NO COST nor obligation to your building.

The Federation urges you to take advantage of this opportunity to reduce your building operating costs now as funding is limited and buildings will be accommodated on a first come, first serve basis.

Interested buildings may contact Herbert E. Hirschfeld, P.E. at (516) 759-2400 or Greg Carlson at (718) 271-1378.

NEW FIRE SAFETY PLANS AND NOTICES GO INTO EFFECT OCTOBER 1, 2000

In late January, the New York City Fire Department held a public hearing on their new rules and regulations regarding "fire safety" in residential buildings. This was a result of the legislation passed by the City Council and signed by Mayor Guilani last year. Under the law, the NYC Fire Department has to issue rules and regulations in connection to fire safety. At the time of this writing, the final rules were not issued; the Federation believes they will not change dramatically, as originally proposed. The following are highlights in which we must all follow:

1) Prepare and distribute to all resident a fire safety plan in your building.
2) Prepare, post and maintain fire safety notices.
3) Occupants must allow owners to post a fire safety notices inside the apartment front door. *

*In a cooperative and condominium form of ownership, the Board is responsible for items 1 and 2. The shareholder and/or unit owner are responsible for posting and maintaining the fire safety notice inside the apartment door.

As the Fire Department finalizes their plan, the Federation will keep its membership up to date with the details of the final rules. We advise all Boards, to keep this on their radar screen.

CIRCLE YOUR CALENDARS – DATES FOR YOUR BUILDING

MARCH 1
Window guard and Lead paint notices are due.
Last day to apply for Real Estate Assessment reduction for the year 2000/2001
Facade inspections (Local Law 11) due.

APRIL 1
New York City quarterly Real Estate Taxes due

MAY 29
Local 32BJ Holiday

May 31
Heating season ends

JULY 1
New York City quarterly Real Estate Taxes due

JULY 4
Local 32BJ Holiday

JULY 31
Water and sewer frontage charges due

SEPTEMBER 1
Last day to file income and expense report for Real Estate assessments 2001/2002

SEPTEMBER 4
Local 32BJ Holiday

SEPTEMBER 30
Annual elevator inspection due

OCTOBER 1
New York City quarterly Real Estate Taxes due. Heating season begins

OCTOBER 11
Local 32BJ Holiday

NOVEMBER 7
Local 32BJ Holiday

NOVEMBER 23
Local 32BJ Holiday

DECEMBER 25
Local 32BJ Holiday

DECEMBER 31
Boiler inspection due

This is not a complete list for every cooperative and/or condominium. Please consult your professional (managing agent, attorney, accountant and engineer) for specifics in your building.

WHAT’S ON THE FEDERATION’S RADAR SCREEN

Union Local 32B-32J contract expires April 20, 2000 – it’s never too early to start to plan, in an event of a strike!

Real estate assessments for cooperatives and condominiums for the year starting July 2000 increased an average of 6%.

Along with our National Association (National Association of Housing Cooperatives), monitor Washington for legislation and regulations affecting our membership such as, 80/20 rules, section 216 IRS code, reverse mortgages and the satellite dish regulations.

With the price of Number six oil over a dollar a gallon, the Federation advises to keep maximum efficiency in your boilers.

DRAFT REPORT ON TAX EQUITY ALMOST READY

At the "Action Committee for Reasonable Real Estate Taxes" meeting on February 10, the Commissioner of Finance, Andrew S. Eristoff, revealed the department will be ready in a few week to issue a "draft" report exploring several options for bringing equity between unit home owners, shareholder home owners and one, two and three family home owners. If approved by the Mayor, the report will be released and made official. If a report is made official, there is a long legislative road we will travel (City Council and Albany). The Federation will reach out to our membership when we need that extra push!

NEW YORK CITY’S NEW LEAD BASED PAINT RULES HAVE ALREADY STARTED FOR PRE – 1960 BUILT BUILDINGS

Local Law 38 of New York City has started. If your building started occupancy before 1960, your building falls under this Law. "Owner" shall mean the Cooperative Corporation and/or the Condominium Association for the purpose of this Law. What do I do?

1. YOU SHOULD HAVE ALREADY SENT OUT NOTICES INQUIRING WHETHER A CHILD SIX YEARS OF AGE OR UNDER RESIDE IN THE APARTMENT.
2. Notices are due back by March 1, 2000
3. When a resident has sent back the form indicating in the affirmative that a child of six years of age or under lives in the apartment or the "Owner" has knowledge (That means a Board person, managing agent or building staff known or should have known), the "Owners must inspect the apartment for peeling paint or deteriorating subsurface (e.g. old leak behind the wall).
4. If there is an inspection, every painted surface must be inspected (including closets, walls behind furniture and wall units, kitchen and bath drawers, doors and windows) and a report must be made and kept for three years. When the inspection is being conducted, draws, doors and windows are of a particular interest because the painted surfaces may not bind, in other words, the painted surfaces can not friction against one other (This causes paint dust, the real culprit in lead poisoning).
5. If a condition exists, correction must be made under the New York City Department Housing Preservation and Development (HPD) Interim Control Practices (To get a copy of the HPD’s Interim Control Practices – call 212-BAN-LEAD).

For Cooperatives and Condominiums, the big headache and the biggest gray area in the law are turnovers. Sale, resale and sublet (whenever you have a change of resident), the "Owner" must inspect and if a correction is needed the "Owner" must do so immediately under the Interim Control Practices. In some cooperatives, the corporation gains control of the apartment and inspects and repairs the unit. For a majority of cooperatives and condominiums, this is a private transaction between buyer, seller or shareholder, unit owner and lessee. The cooperation or association never inspected units; this may prove to be a big problem for some Boards. Can you get an affidavit and/or certification from the two parties in the transaction or both? The Federation recommends before you do anything in regards to Local Law 38, you consult you corporate or association’s attorney. It has been recommended that in case of divorce or child custody where there is a shared custody, the child is considered residing in the apartment, if only on a part time basis.

PLEASE KEEP IN MIND THREE THINGS IN REGARD TO LOCAL LAW 38

1. The City will look to the "Owner" or Board for compliance of the Law.
2. Look to your corporate or association documents. The Law allows for cooperatives and condominiums to shift correction responsibility to the unit owner or shareholder (Again, only if your documents allow)
3. Please consult your cooperative/condominium attorney before you embark on a lead base paint policy.

ELECTRIC DEREGULATION

In early February of this year, the Public Service Commission that oversees the electrical rates and the transition in "Electrical Deregulation" decided to move up the timetable on deregulation. On April 1, 2000 the third phase takes effect and on November 1, 2000 the eligibility list expands even further to change their electrical provider. Want to keep abreast on this and related items? To help our members understand the electrical deregulation process and to find out what changes in the new Public Service Commission’s timetable, the Federation has joined together with our two fellow cooperative organizations (Coordinating Council of Cooperatives and the Council of New York Cooperatives and Condominiums) to hold a joint meeting for our members to help clarify and to bring them up to date. The meeting will take place on March 22, 2000 in the Auditorium of the Hunter College School of Social Work at 129 East 79th Street at 7 P.M.. There is no charge for Federation members but reservations are required. Please call to make reservations at 718-353-5080.

NEW MEMBERSHIP SERVICES

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.

THESE SERVICES ARE AS FOLLOWS:

The Federation's web site is now online 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, this makes the 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.

ELECTRIC DEREGULATION

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 this phase in the deregulation process, which starts in April 2000. Start now in preparing your building, talk to all the "ESCO's" and talk to 1st Rochdale, you will be surprised in what you hear. For further information, please call 1st Rochdale at 1-212-673-3900.