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Local Law 84: Benchmarking - Eric Michaels Mar 10, 2011


There are several reputable and highly qualified companies capable of Benchmarking your multi-family building. It is essential to work with one who offers Benchmarking as one of their core services. Depending on the size and scope of your building there will be times when using EPA's Portfolio Manager will suffice. It is free and relatively simple...the down side: what do you do with the information from the EPA report or the info from your benchmarking company for that matter.

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My question is what will The City do with the benchmarking information they gather?

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I will get specific info for you shortly. Here is what I can tell you now:

1)Buildings whose Tax Block # ends in a “3” must comply with Audit & Retro-Commissioning by 2013. If it ends in a “4” then compliance is due in 2014. If your building has maintained an Energy Star rating of 75 or higher for 2 of the 3 years prior to a due date, you will be exempt from performing a Level II Audit. Thus, the city will monitor your Energy Star rating in order to determine if you need to move on the level II audit.

2) Your buildings "score" will be made public thus potential clients, investors, supporters etc will have the ability to see just how energy efficient or "green" you are and I imagine base to some degree business decisions on your rating.

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The city will make buildings across the city change their fixtures and boiler components in order that they become more energy efficient. As of now the city requires all the info to be compiled and entered into the EPAs website. this data will be available on dept of finances web site in 2012. Our Coop has contracted with GoingGreen NYC to do the benchmarking. you can contact them at info@goiggreennyc.net, they seem to be very reasonable.

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improper/fraudulent process service - Anonymous Mar 08, 2011


This is an open post to Larry Simms, Assemblymember Rosenthal, Senator Liz Krueger regarding improper process service by a legal firm. Mr. Simms and Ms. Rosenthal, I have had contact with you regarding my situation and Mr. Simms, I attended a meeting on Park and 23rd in 2006, of which you reminded me in a recent email (at an old address) announcing your forum last week. Ms. Rosenthal, I requested your help regarding a building situation in February 2009. I would like to be able to call Mr. Simms and speak about the situation, which is dire and complicated. Please post your current contact number and let me know it's okay to call.

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You can reach Larry Simms at ACCO: lsimms@condocoopowners.org

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terrace - true? Mar 05, 2011


In our condop building, there are 4 apts with terraces with pavers. The condop has place the responsibility and cost on the owner should there be any leaks that develop to the apts underneath them. Is that so? Now, the building is charging additional for the super to clean underneath the pavers. While these are private terraces, the board has the right via the condop lease to access the terraces in order to maintain the building. So, with that in mind, why is there a charge now? The owner with the terraces are paying monthly maintenance already, which is based on the shares. The terraces are already part of the shares allocation.

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It all depends. If this is a co-op, the proprietary lease and its amendments must be consulted to find out about terrace structural responsibilities. Since the terrace is part of the structure of the building, responsibilites usually stays with the co-op. Consequently, the co-op may dictate how terraces shall be protected,used and what can be placed in them, i.e., planters, rugs, pavers, hammocks, dish antenna, etc., in order to prolong the life of the structure. Also, the co-op retains access to the terrace and will demand cleaning, pavement or planter removal or other objects attached to railings, etc. and would retain rights to enter and back charge the shareholder if noncompliance with request. Maintenance of the terrace is the shareholder's responsibility including cleaning of drains, sweeping and snow reoval(if necessary) However, there might be instances in which the structural responsibility was delegated to the shareholder. This is why the PL and amendments must be reviewed.


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Heating (HVAC) - Chilled Mar 05, 2011


In our Condo building on the 2nd fl. our apts cannot reach a temperature over 65 degrees with HVAC blasting all day. Below the 2nd fl there is empty very cold retail spaces and the external ceiling piping leading into the apts have 2in. space all around if one unscrews their drains they can see into the retail space, The apts over the service entrance and entrance vestibules are very cold too. The apt flooring is placed onto concrete and the walls facing outside have flimsy insulation. The floors are always icy cold. Can someone give advice.

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Who is responsible for the HVAC? Building Management or are their multiple HVAC units that each Shareholder is responsible for (i.e. self contained)?

If the Building is responsible you need to hold your management company (and board)responsible for getting a licensed HVAC contractor to assess why this is happening. The building may also possibly have to retain an engineer to determine why this is happening and in some areas.

They should want to resolve it because I'm sure that the cost of the units running like that all day is driving up the utility costs for the building. Another route you can try is one of those energy audits where someone through your utility provider comes out and does an assessment and can determine how you can save energy on your heating/cooling as well as other things. Some of them perform really sophisticated tests that determine how much heat/cold air you are losing or using unecessarily.

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Full Disclosure - Eric Michaels Mar 03, 2011


I want to be completely up-front and honest. I have been posting and responding to several threads and I want it to be clear that I am a contractor. I am the Director of Green Building Technologies with the Platinum Energy Group (the umbrella company of SNS Energy and Bain Mechanical). We are both NYSERDA MPP and Con Edison MFEEP Partners. We are the only MPP & MFEEP Partner approved to provide the entire scope of these programs. We are the leading gas conversion team for National Grid and are recognized as approved contractors for nearly every utility and state rebate and incentive program. I will NEVER compromise my firms integrity and will NEVER slander or bad mouth another company. I don't have to and this is not the forum for that. I hope to hear from anyone and will do my best to provide accurate and smart information. Feel free to email me, challenge me or question my postings.
Thank you,
Eric

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I want out as Pres. - Jeff V. Feb 25, 2011


I really want out as Pres. and possibly even off the board completely. However, I am concerned about what would then happen as no one seems to be interested in the position and it is needed for direction, oversight etc.

Has this happened to you or your property. What did you do? What happened?

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Begs the question as to why.

Another Pres

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Good question. Are the building's financial or physical-plant issues too daunting? Is it simple apathy? Is there board in-fighting?

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Jeff V.
I don't know your situation specifically but as President of a small condo, I can empathize. It is a thankless job with a lot of responsibility especially without full management. What has helped for me is to have other Board members take on the responsibilities I find most difficult-- dealing with difficult owners for example, and thankfully for us our back office management company has taken on more responsibility to preserve my sanity. I feel obligated to stay on to support the Board members who have been persevering with me and to continue to protect my investment. The few people I would trust in the position of President don't want it ... so here I stay. Can you appoint more people on the Board? They don't have to be elected to serve. Good relations between Board members is important too. We decided after a difficult email session to limit our disagreements to face-to-face conversation since we all like each other and don't want there to be bad feelings. Good luck!
Janies

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Home Based Business - DavidG Feb 20, 2011


Home Based Business

We have several shareholders who run businesses from their apartments – speech therapy/occupational therapy, and a small daycare.
Several shareholders on the floor of those running the business are raising concerns about safety, traffic, and objections of having a business being run from a co-op - which according to our prop lease should be for housing.
Have you experienced this matter? What are you suggestions? We have reviewed our prop lease, by laws and house rules, but we want to hear others suggestions or experiences.

Thanks

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We had this potential situation in our co-op; a board member wanted to open a small daycare situation in his apartment. The board decided that it was too great a liability for the corporation; the board member decided to move to a freestanding home, no hard feelings.

What does your PL say?

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We have. Check your prep lease and bylaws. Our Board frist had the MangAgent send certified letters notifying the Owner that his Business (with employees) was illegal according to the lease and bylaws.
The Board was ignored, and had the lawyer send notification -- the frist were ignored, but as the threts grew more serious -- finally the Owner closed his business.

You have serious Insurance/libility and personal safty isses -- Also, if they are running a business -- the CofO would have to be changed to reflect a business. Also -- check the tax code -- the IRS might be intrested in a property used for a business -- not not paying property taxes...Also, his workers are not bonded, and prbably spend more time in the building than the residents -- this presents safty issues for the other Shareholders -- Subletters have to go though a vetting process....whereas you have total strangers spending more time in the building, with complete access -- without knowing who they are.

The big complaint from neigabors -- was the traffic -- and strangers roaming around the building. His employees used the Stairwell for smoking and the halls as thier personal Phone booth.
The Board has to be consistant and determined. Good luck.VP

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Other posters have correctly pointed out some of the problems involved, and you are certainly within your rights to prohibit any business operations in a cooperative residence. However, it's worth noting a special case that won't get you into trouble, at least as far as zoning and tax laws are concerned: a "Home Occupation." Here's the definition from http://www.nyc.gov/html/dcp/html/zone/glossary.shtml --

"A home occupation is a business operated by the occupant(s) of a home, which is accessory to the residential use. It is generally restricted to no more than 25 percent of the residential floor area (with a cap of 500 square feet). Specific occupations that may generate excessive noise, odors or pedestrian traffic are not permitted."

A classic example would be a psychotherapist using one room of a primary residence to see patients. Your Board should certainly consult with your attorney before permitting any such arrangement, but such a Home Occupation is not intrinsically a bad idea.

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Point of information on definition of home occupation. Pedestrian traffic is often defined as people visiting the site for the purpose of doing business. The example of a therapist would be excluded from allowable use because patients could be defined as pedestrian traffic. Another point to remember is that many businesses require permits which list the address of the business. Usually, this address must be zoned for the applicable business with some restrictions. As an example, a real estate broker can only operate from a location where they can post a sign. This must contain the name of the company and broker and residential zoning doesn't permit this. Therefore, an apartment or residentially zoned home would not be acceptable real estate office locations unless the sign can be posted on the door of the apartment or front of the house. Boards should ascertain the legality of the location and then act accordingly.

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Dianne, from what our attorney has told us, the pedestrian traffic issue for a psychotherapist (or similar low-traffic business) isn't a problem if the home office is on the first floor of the building. For higher floors, it's more debatable, but still often permitted. Also, to emphasize, the board has the final say in the matter and is never obligated to permit such an arrangement.

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The "first floor" exception is usually in buidings which have a building permit for this type of occupancy. You are absolutely correct in stating that the board has the final say. However, my point was that in many professions licenses require zoning which permits the business at hand. Therefoe, the board has to make certain that whatever permits or licenses are required are in order.

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Dianne, you've raised some interesting points. It's true that many buildings are already zoned for commercial activity on the first floor, but our building is zoned residential top to bottom. Nonetheless, our attorney told us that a first-floor "home occupation" with low pedestrian traffic would be allowed without a change in zoning.

We went one step farther and drafted a Letter of Understanding that all prospective buyers must sign and submit with their purchase application. Here's an excerpt:

"We understand and agree that purely commercial use of apartments in the Building is not permitted. Notwithstanding the foregoing, we understand that with the written consent of the Board, a resident shareholder may be permitted to work from his/her apartment if such work is in compliance with the requirements of a 'home occupation' under the New York City Zoning Resolution. Moreover, should any governmental agency issue a violation based upon any commercial use of the Apartment, we acknowledge responsibility for and indemnify [the coop corporation] with respect to the payment of any fines associated with such violation and we agree to undertake the necessary action in order to vacate such violation."

Your point about the board validating any permits for the home occupation is a good question. I don't know whether this is required, but it seems like it would put an undue burden on the board -- especially since such permits typically require periodic renewal.

HabitatReporter, if you're reading this, it seems like a good subject to pose to an attorney. What are some Yes/No/Maybe examples of legitimate home occupations? What steps should a board take when deciding whether to allow a specific home occupation or other commercial use? And does the board have an obligation to validate a shareholder's commercial permits and the like?

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What if the building in which the home occupation takes place doesn't have a Certificate of Occupancy?
Building predates CO. compliance.
Would a home occupation then fall under the Propietary Lease or ByLaws and not be considered a NYC zoning issue?

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Special assessment - malamu Feb 16, 2011


Hi everyone...I am a bit confused about how to levy a special assessment. Does that assessment have to be done on a percentage basis per shareholder or can it be a sum that all shareholders pay equally? I am in NYC; our prospectus does not make that very clear. Thanks.

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In a coop, all assessments must be on a per-share basis. You can't assess a flat rate per shareholder, unless by some miracle everyone has the same number of shares.

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It can be handled either way, the Board can make that decision if your Offering Plan or By-Laws do not state how. Generally it is levied on how many shares per apartment, but that's your decision.

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It's on a per share basis on all shareholders of the corporation according to the law.

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new nameless bank for maint checks - escapefrmyonker Feb 11, 2011


the bank that was within our area was changed to a bank out on long island, we are in Westchester.
the auto debit form that was mailed out to people who wished to continue using it and to encourage new payments via this direct method seemed a bit shady to me. The spaces for the bank name and all identifying information of this bank in long island were left blank, with instructions that the management company will fill it out. There was no mention on this form where the bank was or the bank name or account.
However on the monthly maint bill there was an account # and po box in long island, but no bank name. The maint bills for the last 25 plus years had the bank name and account number.
i asked my electronic check writing service to see which bank cancelled the check, they said there was no bank name just an account number.
I told them this seemed weird, They said they couldn't tell me anymore info, all they had was an account number. i forget how i did it, but i found out the bank name, i must have used a web search. i found out that this bank has offices in Westchester, it is a commercial bank.
The board president lives on long island, in violation of the proprietary lease for shareowners.
so this seemed something that i had to look into, especially after the mortgage bs, where the coop president was an investor in the mortgage bank and the managing company owner was on the board of directors of the bank. They swore that it was perfectly legal, even did so in the annual minutes, because i raised the question. however i posted the circumstances to the cooperator magazine and they printed my poorly worded question, and stated, no/negative, that this was not proper and could even be worse.
the key issue was whether he recused himself from the dealings. since i had asked other board members what was going on with the new mortgage a couple weeks before, they stated they knew zero, even though they were the treasure.
So the whole loan was worked out by the president/investor, from the bank that the managing company owner sat on the board.
The president is super controlling and refuses to fill in the other BOD on what is going on until it is ready for a vote, no due diligence here, but the BOD is ?, i did ask a couple BOD members why the bank was transferred to long island, what the name of the bank was , and who had check signing powers.
They said they didnt know and even said they didnt see any reason why there was a need to know.
The president and managing company{investor relatioship} disregarding the by-laws, changed the voting method that had been in place for over 15 years. It was the voting where you could get a opposition member in by having supporters give all their voted to this one person, and not vote for any other members running or vacant spaces. I dont want to quote the incorrect name, since it gets confusing, and i know and have the bylaws. the one or two other owner occupiers from day 1/vote 1 , remember the old way, and too wonder how this happened. i asked this question at last years annual meeting and the managing agent said they would look into it. nada since, not in minutes, and the managing agent refuses to digital or tape record minutes of annual meeting, even though i brought up a bunch of discrepancy, obvious they like the untracked method.
The topper is that the BOD has allowed the building to become about 50/50 owner occupied, so i cant find anyone to take an interest.
The people that are interested and see the wrongs, are like me, too old, too many other issues, too sick, to get involved with becoming a board member, and the few new owners that actually live here, i guess are planning on moving as soon as they can. I am thinking of doing the same , since this is not how i want to be spending my time,especially without any support. However i still am going to look out for fraud and make a paper trail of violations .

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NYS Registered Sex Offender Residing in Coop - Anonymous Feb 10, 2011


I'm a shareholder residing in a coop within Westchester County. I was made aware, through a friend in law enforcement, that a NYS registered sex offender is residing in the cooperative for some time now. This came as a complete shock to not only myself but to other shareholders in the building. What made it more surprising is that the mother of the offender is on the Board of Directors.

My question is does the Board have a LEGAL obligation to inform the shareholders that a NYS registered sex offender is residing in the building? If so, is there any recourse, by means of a shareholder vote, to determine if the offender is allowed to reside in the cooperative? Shouldn't the shareholders have been notified before he took residence in the coop? Any assistance or guidance from anyone is appreciated. Thanks in advance!!

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does he own an apartment or is he living with his mother. What level of sex offender? Was the crime one that involved children.
every state has different criteria for sex offender.
In many states, teenagers sexting their boyfriend /girlfriend would by law be considered sex offenders. A lot of FU laws out there with grave consequences.
The exact crime should be posted on a web database, a follow-up to the police station should answer any other unanswered questions.
more info is needed, it could be a legal liability, and moral.

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He's a level 2 registered sex offender; living with his mother, who is a board member. Not sure if it involved childern. I will follow up with the police station. The Board has mentioned NOTHING to the shareholders of his residence within the cooperative.

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I think you need to seek legal advice, rather than solicit comments here. Remember, even when you post "anonymously" the site registers your IP.

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It's about before-the-fact checking, rather than after-the-fact response, but it might have some helpful links/advice.

http://www.habitatmag.com/Publication-Content/2010-October/Featured-Articles-from-Our-Print-Magazine/Performing-Background-Checks

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Was there an incident? But, if this was a shock to many, maybe this person was living without incident. How did it come to be that you and your cop friend were investigating people in the building?

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