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Habitat Trim Size: 8.125” w 10.875” h Sky House Urban Glass House Worldwide Plaza Leighton House Condominium

207 East 939 Union Street 101 West 12th Street The Orion 105 East

15th Street 110 East 87th Street Millenium Tower Residences The Lausanne 137

East 66th Street 160 West 86th Street 160 East 91st Street 165 East 72nd Street

166 Duane Street 176 West 87th Street 200 Chambers Street 200

East 58th Street 60 Remsen Street 1 and 2 Northside Piers Strivers Gardens The

Lucida 236 East 247 West 12th Street 269 West

72nd Street 270 WEA 279 CPW

The Atelier 301 East 48th Street

1055 309

East 49th Street 310 West 55th

Street 321 West 78th Street 345 West 345 East 56th

Street 40 Sutton Place 40 West 72nd Street 123 West 23 Street 45 East 62nd Street

400 East 70th Street 415 East 80th Street 430-440 East 56th Street 445 East 86th

Street The Channel Club The Setai 527 - 541 East 72nd Street Gramercy Park Towers

785 Park Avenue 88 West 800 West End Avenue 91 Central Park West

117 East 37 Street 350 West 50 Street (Worldwide Plaza) 360 East 88 Street (Leighton

House) 120 East 87 Street (Park Avenue Court) 1919 (Maple Plaza)

Paul R. Gottsegen, CPM®, President [email protected] t: 212.508.7272 f: 212.508.6230 HalsteadManagement.com

2 HABITAT january 2014 Connect with us on Facebook www.habitatmag.com Sky House Urban Glass House Worldwide Plaza Leighton House Condominium Contents 207 East 57th Street 939 Union Street 101 West 12th Street The Orion 105 East January 2014 15th Street 110 East 87th Street Millenium Tower Residences The Lausanne 137 Writers & Artists

dAle J. degensHeIn is a special East 66th Street 160 West 86th Street 160 East 91st Street 165 East 72nd Street counsel at the law firm of Stroock & Stroock & Lavan.

lIZA dOnnellY, a contributor to Habitat since 1982, is a 6 It Takes a Team 166 Duane Street 176 West 87th Street Alwyn Court 200 Chambers Street 200 cartoonist at The New Yorker. a strong leader is a good thing – 26 Trial By Fire She is the co-author, with her until it’s not. a white Plains cooperative husband, cartoonist michael by Bill Morris gets scorched. East 58th Street 60 Remsen Street 1 and 2 Northside Piers Strivers Gardens The maslin, of A Cartoon Marriage. by Bill Morris VAlerIe HAYes is a board 10 Green Grades Revealed member at her harlem condo. they’re public. they’re online. and 32 The Broker Is In Lucida 236 East 47th Street 247 West 12th Street 269 West JennIfer V. HugHes has written they matter. when the go-to for . by Jennifer V. Hughes sales agent is also rOndA kAYsen writes about real a neighbor, conflicts 72nd Street 270 WEA 279 CPW estate for The New York Times. could arise. BIll MOrrIs, a reporter for 34 16 Business of Management by Ronda Kaysen years, formerly worked for the Exclusive business stats from more Daily News and currently writes than 40 management companies. 36 2014 The Atelier 301 East 48th Street for The New York Times. Source Guide rIcHArd sIegler is of counsel a special advertising at Stroock & Stroock & Lavan. 22 The Curious Journey supplement of suppliers, he teaches a course in real 1055 Park Avenue 309 estate law. of a Bill... contractors, and why does one professionals in the co-op rOBerT d. TIerMAn is a partner invoice get paid in the firm of Litwin & tierman. and condo community. East 49th Street 310 West 55th immediately while another is stalled? by Ronda Kaysen Street 321 West 78th Street 345 West 55th Street 345 East 56th

Street 40 Sutton Place 40 West 72nd Street 123 West 23 Street 45 East 62nd Street Columns 4 Publisher’s Note Projects Around town 400 East 70th Street 415 East 80th Street 430-440 East 56th Street 445 East 86th by Carol J. Ott 48 Ask the AttorNey Deadbeats and devils. Street The Channel Club The Setai 527 - 541 East 72nd Street Gramercy Park Towers by Robert D. Tierman

50 My turN 785 Park Avenue 88 Central Park West 800 West End Avenue 91 Central Park West the integrity of ownership. by Valerie Hayes 117 East 37 Street 350 West 50 Street (Worldwide Plaza) 360 East 88 Street (Leighton 51 CAse Notes may the city install bike share 62 sPotlight oN terminals in front of your building? Briar Oaks, by Richard Siegler 4525 & 4555 Henry Hudson Parkway House) 120 East 87 Street (Park Avenue Court) 1919 Madison Avenue (Maple Plaza) and Dale J. Degenshein 58 ManageMent FroM the editor ® 60 64 CrossWord Puzzle transitions Paul R. Gottsegen, CPM , President the wonderfulness of a specialist. a socialist, a zebra & rS. [email protected] t: 212.508.7272 f: 212.508.6230 by Tom Soter 59 Building loans HalsteadManagement.com 59 advertiser index

Connect with us on Facebook www.habitatmag.com january 2014 HABITAT 3 Publisher’s note

Well, let’s see. Sixty-three East 9th Street did well. They got a grade of A. Whoa, look what Bay Terrace got. They scored a D. Do you know what your building got? Do you even know what I’m talking about? leading property It’s Local Law 84, dear readers, and it’s all management companies. From number of about energy benchmarking. If your building is buildings managed to fees for administering your more than 50,000 square feet, it files a mind- property, this survey offers you an inside look numbing, eye-glazing report with the city into how management manages itself. It’s framed detailing its energy consumption. The point of with a story about how bills get paid, or more the law is, first, to make you aware of the energy importantly, how the process can go awry. you are using. Second, to measure it. And third, Reminding us that it’s the simple things in our to motivate you to reduce it. And now that the co-op/condo lives that are important. scores are public – enough said. Enjoy the issue. Both in print and on your iPad. Speaking of public, look through the results of our annual Business of Management survey to find out all sorts of details about New York’s publisher and editor-in-chief

serVIng new YOrk BOArd MeMBers & PrOPerTY MAnAgers Of cO-OPs & cOndOs JAnuArY 2014 VOluMe 33 nuMBer 305 habitat® (iSSn-0745-0893; uSPS 681- 510) the magazine serving new york co-op/ condo board Directors & building managers, is FounDED 1982 publisher and editor-in-chief published monthly except for a combined issue Carol J. Ott web content editor in july/august by the carol group Ltd., 150 [email protected] Frank Lovece w. 30th St., Suite 902, new york, ny 10001. [email protected] Periodical postage paid at new york, ny and at editorial director additional mailing offices. PoSt maStEr: Send Tom Sober advertising director address changes to: Habitat, 150 w. 30th St., contributing writers Stephen Hanks [email protected] Suite 902, new york, ny 10001. copyright Dale J. Degenshein [email protected] © 2014 by the carol group Ltd. all rights associate editor Jennifer V. Hughes operations manager reserved. reproduction in whole or in part Aparna Narayanan Valerie Hayes without permission is prohibited. the editors [email protected] Jennifer Wu Ronda Kaysen [email protected] assume no responsibility for unsolicited editorial assistant Bill Morris manuscripts or photographs. Postage must collections supervisor Kathryn Farrell Richard Siegler accompany all materials if return is requested. [email protected] Robert D. Tierman Bill Hoover Editorial and advertising Sales offices: 150 w. 30th St., Suite 902, new york, ny 10001; proofreader art director (212) 505-2030 fax: (212) 254-6795. co- Dave Baker Michael Gentile op/condo board corporate subscriptions are [email protected] $70.00 per association, entitling up to 4 board directors to receive their own copies of each contributing artist issue. additional board members’ subscription Liza Donnelly rates can be found at www.habitatmag.com/ contributing photographer subscribe. individual subscriptions are $49.95 Carol J. Ott for one year. canadian and foreign subscribers must contact Habitat for rates. Single copies of most issues are available prepaid at $5.

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Habitat-FP-1113.indd 1 11/14/13 2:09 PM a strong leader is a good thing (until it’s not). It Takes a Team

byby bill morris

ost residents of co-ops and condos in the city yearn for a strong leader petition calling for a special meeting on the board of directors. A catalyst. A spark plug. Someone who to rescind the new shares on his mgets things done and is willing to do the thankless, often tedious, work apartment. She was startled. “His own required to keep a building fiscally and physically fit. agenda,” she says, “was to throw out Well, having is not the same as approved at a special board meeting the directors.” wanting. on June 16, 2006 – a gathering Harvey Roush, who used to work in private By all accounts, the Antoinette, a Goldman did not attend and at which equity, started to ask questions. 58-unit co-op just around the corner he did not cast a vote. Tellingly, the She was told the minutes of board from the Empire State Building, had a board also agreed that “no additional meetings were not available, and the strong president. For a decade, Harvey monthly charges such as maintenance managing agent refused to discuss Goldman led a board that could boast and/or assessments would be charged his conversations with Goldman. Her of many impressive achievements. It to the apartment.” The final alteration unease deepened. negotiated with labor unions, resulting agreement, signed the following May, A few people felt that some board in annual savings of $120,000 further stipulated that the board would members were complacent, says in staff wages. It held the line on not allocate additional shares to the Roush. Goldman, she adds, “disclosure maintenance for six straight years. It Goldmans’ apartment. was scant – that was the culture. We persuaded the super to move from a It wasn’t until late 2010, when thought it was time for a change. New two-bedroom, two-bath apartment the Goldmans decided to sell their blood and new ideas invigorate a into a one-bedroom, one-bath, then expanded apartment, that two new building.” So, last November, in what sold the former, adding nicely to the board members began to question the they now call a “coup,” Roush and co-op’s bottom line. Residents agreed alteration agreement. On June 8, 2012, five like-minded shareholders won that Goldman was a forceful leader. an executive committee decided to election, ousting all but one former Nonetheless, the assessments of his allocate 400 additional shares to the members (who had replaced Goldman, personality were a bit more uneven, Goldmans’ apartment. who resigned in May 2012). ranging from “very strong” to “bully.” The times were changing. Shari Laskowitz, a real estate Then Goldman and his wife, Judith, lawyer, was elected vice president. had an idea. Wouldn’t it be nice, they a new Day “We saw that something wasn’t right,” thought, to enclose our private rooftop Sharon Roush moved into the she says. “I don’t think the former terrace and create a master bedroom building in 2007 but didn’t get board members knew what was suite and an additional bathroom? The involved in board matters until going on, or what their rights were. proposed alteration was unanimously Goldman approached her to sign a Everybody had questions about who

6 HABITAT january 2014 www.habitatmag.com knew what and when they knew it, and how the board allowed this to happen. As a lawyer, I’ve had experience with entrenched boards, and they’re very difficult to [remove]. It takes a community effort. In our building, we had to enlist proxies and votes. People were waking up, and they were thinking maybe they needed to give their support to somebody new.” WINDOW The freshly minted board members got busy. They cleaned house with their professionals, hiring a new managing agent, attorney, and PAINS accountant. They refinanced the mortgage, signing a 10-year loan Stuck. Cracked. Drafty. Rain leakers. agreement at 3.4 percent and securing Heating oil thieves. You want to change them. a $500,000 line of credit. They are undertaking a conversion from an But don’t know where to begin. We do. oil- to a gas-fired boiler, and are Over 80 years we’ve replaced thousands for our clients. planning to install storage lockers in the basement to boost revenues. Every LAWRENCE PROPERTIES contract, from cable TV to the laundry Residential managers room, is under review. But perhaps the since 1925 most important change is the arrival of that elusive thing called transparency. Call Anton C. Cirulli, Managing Director (646) 454-2932 “Timely and transparent 150 West 30th Street, New York, NY 10001 communication [are] very important www.lawrenceproperties.com to this board,” says Roush, now the president. “The lack of those things is what got the old board in trouble.” The new directors also demand candor from their professionals. ROBERT CANE ARCHITECT PLLC “We’re using high-integrity 536 West 111 th s treet N e W YOr K Ne W YOr K 10025 professionals who have some backbone,” Roush says. “I want my designer of distinctive new york lobbies legal counsel to tell me not to do something. I want my managing agent not to do something if it’s shady.” To enhance transparency, the board uses BuildingLink – a web-based property management platform – to communicate news, track maintenance payments, and monitor package shipments. the Lawsuit While all this change was underway, the co-op was busy on another front. In a lawsuit against the corporation and four board members, the Goldmans contended that the original alteration agreement was valid and the board was wrong to rescind it and assess the additional shares. They sought compensatory and punitive damages of at least $100,000. Visit our website at: www.cane-architects.com The defendants countered that the 212•769•9605 [email protected] lawsuit should be dismissed based www.habitatmag.com january 2014 HABITAT 7

Habitat Ad #2 Robert Cane Architect PLLC 400 East 66th Street (1/3 Square, Non-Bleed) January 30, 2012 on Goldman’s “undue influence and Has your laundry company “sold out?” breach of fiduciary duties/self-dealing Why stick with a “Big Box” provider when mid-sized, by which he procured a vote by a co- family-owned and operated companies still exist? op board to not allocate additional shares.” The case hinged on the board’s Co-op and Condo contention that it was unaware that its Boards should have managing agent and lawyer had both the option to pick concluded that it was proper to allocate the laundry-machine additional shares. Instead, for reasons supplier that best suits that remain unclear, they heard only its needs. from Goldman’s personal attorney, With more than 40 who advised them that the original years experience, alteration agreement was proper. At AUTOMATIC INDUSTRIES trial, a cache of e-mails came to light offers the kind of expert that showed Goldman was “aggressive personal attention and and manipulative” in advocating his service you won’t get position to the board’s attorney and from the Big Box boys. managing agent, as well as a fellow Contact us today! board member. The board claimed they had been duped into believing that the opinion of Goldman’s attorney www.automaticindustries.com was shared by their own attorney and [email protected] managing agent. Toll Free: 1-800-THE-WASH In a recent 20-page decision, the Supreme Court of the State of New 1-800-843-9274 York ruled in the Goldmans’ favor. Judge Peter H. Moulton declared that the board “cannot demonstrate fraud because they cannot show that Goldman had a duty to disclose to the board the opinion of their own agents.” The court, however, denied the Goldmans’ request Making a Difference. for monetary damages. Every Day. So, in a sense, both sides lost. But it was more embarrassing for the board: what the court was saying was that, in layman’s terms, the board members weren’t “duped” by a clever con man. They were asleep at the wheel.

Lessons from the Front It was a wake-up call, a reminder that a board can’t just go on the word As New York’s residential property management leader, of one person. That’s the reason, we know what it takes to create great communities that residents are proud to call home. experts assert, why a board has seven people: everyone should weigh in. All Our full-service solutions and exceptional customer service add value and enhance the quality of life for the properties the directors need to pull their own and residents we serve. Exclusive services, like our FS weight – and keep some people in Energy Aggregation Purchasing program, saved our clients over $6.3 million in energy costs in just two years. check. As Theresa Racht, the attorney who now represents the Antoinette’s How may we serve you? Contact us today. board, notes: “This case shows what Dan Wurtzel, President, Property Management can happen if you don’t pay attention Tel 212.634.8904 Email [email protected] – you can lose a major lawsuit and a Web www.fsresidential.com major source of revenue.”

The only New York City management company offering 24/7 live Customer Care Gary Ehrlich, one of the co-op’s lawyers in the lawsuit, adds: “I understand how board members fall into the trap. If one person is willing

8 HABITAT january 2014 www.habitatmag.com to do the dirty work, it’s natural to allow it. Sometimes they make good decisions and do a lot of good things nobody else wants to do. But you have a responsibility and you have to check up on what they’re doing. You can’t turn the other cheek.” Goldman, meanwhile, says the legal “victory” is one in which he takes no pride. “I feel very, very upset,” he says. “This never should have happened. If the board didn’t get the opinions of their counsel, I don’t know why they didn’t. This was a terrible matter to live through. It divided friends and it divided the building. And it was totally unnecessary.” The big question is, why did the board, made up of responsible people, go along with Goldman? An answer comes from Lola Gellman, the only current board member who was serving when Goldman secured the alteration agreement in 2006. She had won election shortly before that – and immediately sensed that Goldman wielded immense power. “Whatever he said, they believed,” says Gellman, a retired art historian. “We never saw the letters or e-mails from our attorney, and the managing agent never said a word. He seemed to agree with Goldman.” Such scenarios are not unheard of. “I don’t want to say it’s common for someone to overstep the boundaries of their position, but it can happen,” says Arthur Davis, a management consultant for corporations, including co-ops. “If someone’s in power long enough and they are respected, there’s an assumption that they are doing what’s best for the building. If other board members turn their heads, in effect they are endorsing that person’s behavior.” Gellman agrees with the Supreme Court’s decision that the board failed to do its job. “It’s true that the board should have investigated,” she says. “But we didn’t because we believed what Goldman said. Since the managing agent didn’t contradict him, we assumed it was the truth.” She adds: “Everyone on the board thought he was great – and in many ways he was. Board members respected him and assumed he wouldn’t put something over on us. But he did.” n www.habitatmag.com january 2014 HABITAT 9 green grades revealed they’re public. they’re online. and they matter. by Jennifer V. hughes

ylVIa SHapIRO’S cond-op scored an “A” from the city for its energy-saving practices. But Shapiro to change. is underwhelmed. “We know the circumstances In an e-mail, John Lee, deputy of our building and it’s just not terribly relevant,” director of Green Buildings and she says. The 229-unit property, Energy Efficiency at at 63 East 9th Street, received what is nYc local law 84? the New York City the grade as part of an energy under the law, signed in 2009, Mayor’s Office of benchmarking initiative every building in new york city Long Term Planning mandated by Local Law 84 of more than 50,000 square feet and Sustainability 2009 (LL84). is required to submit an annual (LTPS), points out Under LL84, large buildings energy benchmark report. that the goal is to must record and keep track of also included are properties educate the energy their energy and water use – with two or more buildings that users. “There are and then the city posts the results for all to see. The letter total over 100,000 square feet costs associated grades are linked to a numerical score called the Energy and are on the same lot or with higher intensity Use Intensity (EUI), which measures the energy used by under the same condo board. energy utilization,” as building per square foot, per year. The median EUI for he writes, “and the multifamily buildings in New York City is 132.1. Score a 109 consumer’s decisions or lower and you earn an A; higher than 160 is a D. should be afforded that information.” Shapiro’s building scored an 84, far better than the average. No matter the The most recent benchmarking score, the cond-op board knew it would pursue an oil-to-gas conversion, an data, collected in 2011, was released ongoing process that has been stymied by issues with Con Edison. “You do this this fall. (Condos and co-ops were benchmarking because it’s required by law,” says Shapiro, a board member, “but required, in 2012, to report their it has zero impact on us to date, and it has just spawned an industry of energy energy usage from data collected in service providers.” 2010, but those results were not made Others argue that critics of the program, like Shapiro, are short-sighted. public.) The results of LL84 are not meant to stand alone but are part of a grand vision The aforementioned letter grades intended to make the Big Apple a healthier place to live. According to the are just one component of the 56- official city website (www.nyc.gov), 75 to 80 percent of New York’s carbon page city benchmarking report emissions come from buildings, compared with 39 percent nationally. That has issued in September under LL84,

10 HABITAT january 2014 www.habitatmag.com When Sandy came to New York, New York came to Castle. which applies to buildings of more than 50,000 square feet. The report – available online (see box below) – also highlights city-wide statistics and trends on how multifamily buildings use energy. Founder Mauro Romita, Sr. knew in 1928 kinks: state of confusion how to build a company with exemplary The bottom line is this: now you service, no matter what it takes. know how well your building has

Greener, astle customers know that, for Greater Buildings Plan over 80 years, we’ve delivered this new york city program C includes information collected the highest quality energy products from: Local Law 84 of 2009 and we’ve been there for them even (benchmarking energy and water usage); Local Law 85 of 2009 under the most difficult conditions. (energy conservation code); Local Law 87 of 2009 (energy audits That’s performance backed by and retro-commissioning); and real people. Local Law 88 of 2009 (lighting and electrical upgrades). according to the city’s official Before the “superstorm” was deemed website (www.nyc.gov/ggBP), over, Castle’s terminals were open “the intention is to transform the building market in nyc for and our trucks were on the road both lease and sale properties by attempting to measure, diagnose, making deliveries to our customers. and develop an informed plan.” That’s what “Customers Rule” is boards may ask: why should we benchmark? the city’s reply: all about. “because you can’t manage what you can’t measure.” you can see the city’s report, check your benchmarking score, and search for other buildings’ Castle Oil Corporation scores by address here: 440 Mamaroneck Avenue http://on.nyc.gov/19jh8mB Harrison, NY 10528 All our customers rely daily on our own www.castle.us on-site testing laboratory, a 40 million Carla Romita, gallon deep-water terminal, a certified Sr. Vice President (914) 381-6506 in-house service department, and a fleet been doing for two years, and you can Joseph W. Colonel, of over 90 vehicles. see how other buildings are doing too. Sr. Vice President (914) 381-6540 But energy experts say there are still kinks to be worked out, the data is not always accurate, and it’s difficult Customers to access. It’s also too early in the game to judge whether a building is Rule, improving. Some critics argue that letter Naturally. grades don’t currently taken into ® account vast differences in building design. A complex with three

www.habitatmag.com january 2014 HABITAT 11

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Insertion Date: January 2013 entrances and three elevators is very different from a tower with one entry and one elevator, observes Professional Stephen Vernon, president of the board at a 111-unit, three-building Results co-op in Washington Heights. The letter grades don’t factor in whether a building has a commercial tenant In that might be using a lot of power, and they don’t consider the type of aily resident – he may be a renter who D cares little about the building’s long- term financial health, or she might Endeavors be a senior citizen who is home more often and therefore uses more power. The city is aware of the problem. “It should be understood that this is a very rough comparative measure and does not normalize for the vast differences in building types and mixed uses,” Lee says. The problem Strong, Reliable, Hands-on Property Management may be solved, he adds, when the For Pride in ownership, call (212) 690-0800 Environmental Protection Agency makes major changes to create a multifamily scoring system for its Pride Property Management, Corp. L 708 , New York, NY 10017 Energy Star ratings. That move is 212-690-0800 • Fax 212-690-1186 expected early in 2014. 11 New Street, Englewood Cliffs, NJ 07632 PRIDE 201-567-2150 • Fax 201-567-1960 PROPER TY MANAGEMENT Cliff Majersik, executive www.pridepropertymanagement.com director of the Institute for Market Transformation, an energy-efficiency think tank, agrees. His group advises the city on the ratings system, and he describes the letter grades as a work in progress. “The city is moving toward an apples to apples comparison,” he says. “Right now all buildings are compared against each other, so you have a luxury high-rise on the Upper East Side compared to a two-story walk-up in the outer boroughs.”

Problematic data? Mitchell Ingerman, president of Aurora Energy Advisors, an energy consultant company that is on track to do 1,500 LL84 submissions this year, says EUI scores are important but some of the data is problematic. For example, he claims that thousands of buildings have probably under- reported energy usage because they only benchmarked common area energy usage, not common areas plus the energy used inside apartments. At the management company FirstService Residential, energy experts used the LL84 data with

12 HABITAT january 2014 www.habitatmag.com their own internal benchmarking to discover trends and problems. One client condo was found to be Kipcon… performing exceptionally well when it came to common areas, reports Decades of Experience Aaron Mehta, director of energy For generations, clients have put their trust information for the company. But in the industry-leading experts at Kipcon, the official benchmarking score where we proudly provide a complete range made it one of the worst performers of engineering services including: in the firm’s portfolio. Mehta says they realized that almost every unit • Structural/Mechanical Design in this condo had large wraparound • Building Exteriors/Roofing balconies, and the likely cause of • Capital Needs Assessments energy loss was owners leaving • Energy Supply Opportunities windows and open. • Local Laww 11 Inspections Overall, FirstService’s multifamily • Life Cycle Costing buildings are performing seven • Reserve Studies percent better than they were in the first year of benchmarking, according to Mehta. “It’s very early in the game, and we’re just getting the chance to look at this data and see what we can do with it,” he says. One of the clear benefits of the LL84 program is that it brings the issues into focus. “The true value of the entire process is to start a conversation among board members 5 Penn Plaza | 23rd Floor | New York | NY 10001 and residents and their managing Call 800.828.4118 to learn more or visit www.kipcon.com

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www.habitatmag.com january 2014 HABITAT 13 agents,” says Ingerman. “It’s about taking a look at the score, whether it’s good or not so good, [and saying,] ‘Let’s talk about our energy consumption and what we should do about it.’” Warren Schreiber, board president at Bay Terrace Co-op Section 1, a 200-unit garden apartment complex in Queens, says he was not surprised by the “D” his co-op earned with an EUI score of 248.2. The board is now considering submetering, which would require unit-owners to pay for the power they use, hopefully convincing them to use less. Schreiber notes that retro- commissioning of the heating system is also under consideration, but the board isn’t ready to pull the trigger on a major job right now.

A greener future Some are optimistic about what the LL84 program can achieve in the future. “Automated utility data uploading would be great,” says Laurie Kerr, the former deputy director for Green Buildings and Energy Efficiency at the LTPS. Kerr, who is now director of the Not all building conditions are visible. City Energy Project at the National Infrared thermography uncovers hidden problems Resources Defense Council, adds: that could threaten your property, including: “Right now, it’s a pain in the neck, but if they hear it from the Water penetration under Heat/cooling loss caused co-op and condo community that roofing membranes by missing insulation they want it automated because it improves accuracy, that would do a

Leaks behind walls Overloaded electrical circuits lot. Everyone has always admitted Blockages in pipes Structural defects that this is a work in progress and two things need to happen for this RAND’s Certified Infrared Thermography Team performs detailed to really get traction: the data needs surveys of interior and exterior conditions, enabling us to devise to be more accurate and more accessible.” effective repair programs tailored to your building. But some think that the whole For information on how infrared thermography can program should be reconsidered. benefit your property, contact RAND at 212.675.8844; Bob Friedrich, the board president of Glen Oaks Village, a 3,000-unit [email protected] or visit randpc.com/infrared. cooperative in Queens, questions the We’ll show you your building’s true colors. law itself. He argues that it is a clear case of the government interfering with the rights of individuals to make their own decisions. “In an ideal world, we would all have new boilers,” he says. “But we don’t live in an ideal world. We have finite resources, and co-ops have to make decisions [about where to allocate

14 HABITAT january 2014 www.habitatmag.com those resources] every day. Unlike the city, we can’t borrow unlimited amounts of money to do these things. Watching over you To say we need a new boiler when what we really need is to put in new for 35 years! ramps for our seniors [is wrong]. That’s for an elected board of representatives to decide.” Others say such criticism misses the point of the program. Majersik believes the best thing a board can do with the benchmarking information is to engage in what he describes as “coopitition,” both cooperating and competing with similar buildings. “Work with a neighboring building or a building that you know is similar to your own, and reach out to their board,” he suggests. “Tell them, ‘I’ll give you my numbers for two years if you give me yours,’ and throw down the gauntlet to see who can improve their scores more.” Concludes Aurora’s Ingerman: “It’s about taking a look at the score, whether it’s good or not so good [and saying], ‘Let’s talk about our energy consumption and what we should do about it.’” n

www.habitatmag.com january 2014 HABITAT 15 Business of Management hen it comes to running your wbuilding, there’s almost nothing as important 2014 as having the right management firm. the size and age of your property, the caliber of your staff, the amount in your operating budget, and the special challenges you face all dictate what type of manager you need. and to get the right fit, you need information. welcome to the 2014 Business of Management survey. if you’re looking to hire – or just want to compare your management company with others – the charts on the following pages offer an information goldmine. you’ll find crucial company stats on fees, properties managed, technology used, and much more. this section is the who’s who and what’s what of the management business, an essential guide to the costs of being managed.

Download the energy benchmarking chart at: bit.ly/boMenergy2014

16 HABITAT january 2014 www.habitatmag.com 2014 METRO AREA WESTCHESTER STATEN ISLAND QUEENS BRONX BROOKLYN ALL OVER THE MAP Who’s Managing What and Where Resigned Added Lost/

Business Profile Properties By Size Location of Properties Years in Business in Years Properties Units Properties Rental Residential Properties Commercial Properties Units Properties Under 30 Units Units 31-100 Units 101-200 Units 201-300 Units 300 Over Manhattan Brooklyn Bronx Queens Staten Island Other Metro Areas

Company

Akam Associates 31 135 24,500 0 0 12 2,200 1 10 32 32 33 28 116 8 0 10 0 1 Alexander Wolf & Company 50 84 6,643 5 0 5 312 2 6 56 12 4 1 14 0 0 6 0 64 All Area Realty Services 6 75 7,670 2 0 8 1,800 3 14 25 22 11 3 12 6 55 2 Andrea Bunis Management 28 70 7,200 3 3 4 400 2 10 40 17 2 1 50 11 2 5 1 1 Blue Woods Management Group 18 47 3,900 46 1 4 150 1 6 22 12 7 1 41 1 5 Buchbinder & Warren 55 51 2,500 67 7 0 0 1 40 76 9 51 Carlton Management 30 31 1,850 12 1 1 20 0 2 29 23 5 3 Century Management Services 42 77 11,000 5 0 8 900 1 5 21 33 7 11 43 10 8 10 6 CFA Management 29 50 1,000 5 0 2 20 1 47 7 0 0 0 55 Delkap Management 21 58 5,850 2 0 1 58 1 16 16 19 3 4 0 4 0 45 0 9 Excel Bradshaw Management Group 19 42 3,000 1 0 3 135 2 13 19 9 2 0 10 12 3 10 3 5 Fairfield Properties 39 65 7,370 75 12 2 146 0 35 17 10 3 2 63 FirstService Residential 28 510 75,000 96 143 158 112 38 59 244 123 20 58 48 17 Garthchester Realty 32 54 5,500 1 0 2 54 1 4 29 18 3 0 0 0 9 0 0 45 Gerard J. Picaso Inc. 31 49 4,650 0 0 2 100 3 12 23 10 1 3 47 2 Gramatan Management 25 60 6,000 2 1 7 500 1 8 35 15 0 2 4 56 Grogan & Associates 32 29 1,650 0 0 3 150 2 10 6 2 0 1 31 HSC Management 36 111 3,365 31 4 7 865 6 90 15 4 2 78 10 19 4 Impact Real Estate Management 17 78 4,700 69 9 9 644 1 18 29 19 5 7 11 21 7 18 5 16 John B. Lovett & Associates 28 65 11,500 3 5 600 1 16 5 1 46 Jordan Cooper & Associates 18 40 3,000 8 2+ 3 0 18 12 8 2 32 4 4 1 Kaled Management 92 31 3,747 28 2 2 202 2 1 14 12 3 1 2 0 0 25 0 4 Lawrence Properties 88 66 6,800 6 1 1 100 1 42 17 3 3 60 3 3 Majestic Property Management 40 13 1,239 0 150 2 168 0 1 8201600403 Maxwell-Kates 27 151 14,892 5 1 18 57 45 21 10 138 9 2 2 Merlot Management 15 33 750 2 0 2 25 2 25 10 0 0 0 35 MGRE/Mark Greenberg Real Estate 33 43 8,000 75 20 4 585 1 0 12 16 8 7 14 5 2 17 1 5 Midboro Management 50 100 9,689 4 10 7 1,107 1 17 61 10 7 5 92 2 2 2 2 NAI Long Island 32 27 3,405 7 55 2 228 0 3 11 7 4 2 0 0 0 2 2 23 New Bedford Management 28 106 7,000 16 7 8 500 1 28 81 13 3 4 50 50 13 15 1 Orsid Realty 58 103 11,700 46 0 11 1,250 0 6 59 26 5 7 89 1 1 12 Pride Property Management 21 36 4,255 2 13 17 3 1 28 3 2 2 Rudd Realty Management 29 35 6,000 30 4 1 150 2 4 15 13 3 0 35 SAM Management 24 48 4,310 13 0 1 0 12 16 16 2 3 48 Sandberg Management 19 60 1,250 2 0 4 60 1 40 12 56 2 2 Sandra Greer Real Estate 43 20 450 25 30 19 1 44 1 Siren Management 20 23 1,800 12 1 1 80 1 9 12 2 18 1 1 3 Stillman Property Management 36 100 ~10,000 97 7 6 700 2 5 50 35 6 4 1 4 1 100 Tudor Realty Services 23 95 11,230 0 0 5 519 5 53 26 6 5 79 13 3 Veritas Property Management 7 77 3,100 13 7 105 1 31 43 2 1 50 1 25 1 Vintage Real Estate Services 17 24 2,218 3 1 216 0 3 15 4 1 1 11 7 3 3 0 Weber-Farhat Realty Management 27 23 498 20 4 3 84 1 17 6 0 0 0 22 1 www.habitatmag.com january 2014 HABITAT 17 2014 THE COST OF EXPERTISE: Fees & Extra Charges

Bank Charges

Building Checking Project Management Fees Lock Boxes Account Filings Management Per Unit Charge Additional Flat Flat Additional Minimum Fee Building Pays Building Pays Minimum Per Per Minimum Per Minimum Fee Charged Fee Method Included in in Included in Included Included in in Included Mgmt Fee Mgmt Fee Mgmt Mgmt Fee Mgmt Monthly Monthly Building Annual

Company Unit Fee

Akam Associates None A C D E B F Yes Sliding scale Alexander Wolf & Company None ✓ ✓ A B C D E F Yes Sliding scale All Area Realty Services None ✓ ✓ A B C D E F Yes % of job cost Andrea Bunis Management Annual $30,000 ✓ ✓ A F B C D E Yes Sliding scale Blue Woods Management Group Annual $20,000 ✓ ✓ A B C D E F No Buchbinder & Warren Annual $30,000 ✓ ✓ A B C D E F Yes % of job cost Carlton Management Monthly $15,000 $1,250 ✓ ✓ A B C D E F No Century Management Services None ✓ ✓ A C D E B F No CFA Management Annual $14,400 ✓ A B C D E F No Delkap Management Annual ✓ A B C D E F No Einsidler Management Annual $15,000 ✓ ✓ A Yes Sliding scale Excel Bradshaw Management Group Annual $20,000 ✓ ✓ A B C D E F Yes Sliding scale Fairfield Properties Annual $25,000 ✓ ✓ A B C D E F Yes Sliding scale FirstService Residential None A B C D E F Yes Sliding scale Garthchester Realty Annual $24,000 ✓ ✓ B C D E F A Yes Sliding scale Gerard J. Picaso Inc. None ✓ A B C D E F No Gramatan Management Monthly $325 ✓ ✓ A B C D E F No Grogan & Associates Annual $20,000 ✓ ✓ A B C D E F Yes Sliding scale HSC Management None ✓ B C D E F A Impact Real Estate Management None ✓ ✓ A B C D E F No John B. Lovett & Associates Annual $26,000 ✓ ✓ A C D E No Jordan Cooper & Associates None A B C D E F No Kaled Management Annual $33,000 ✓ ✓ A B C D E F Yes % of job cost Key Real Estate Associates Annual $25,000 ✓ ✓ A C D E B F No Lawrence Properties Annual $30,000 ✓ ✓ A B C D E Yes Sliding scale Majestic Property Management None ✓ A B C D E F Yes Sliding scale Maxwell-Kates ✓ ✓ A B C D E F Merlot Management Monthly $650 ✓ A C D E No MGRE/Mark Greenberg Real Estate Annual $40,000 $400 ✓ ✓ A B C D E F Yes Sliding scale Midboro Management Annual $36,000 ✓ ✓ A B C D E F Yes Sliding scale NAI Long Island None ✓ ✓ A B C D E F Yes % of job cost New Bedford Management Annual $18,000 ✓ ✓ A C E B D F Yes % of job cost Orsid Realty Annual $45,000 ✓ ✓ A B C D E F Yes Sliding scale Pride Property Management Annual $25,000 ✓ ✓ A B C D E F No Rudd Realty Management Annual $36,000 ✓ ✓ A B C D E F No SAM Management None ✓ ✓ A B C D E No Sandberg Management None ✓ ✓ A B C D E F No Sandra Greer Real Estate Annual $18,000 ✓ A B C D E F Yes Sliding scale Siren Management Annual $15,000 ✓ ✓ C D E A B F No Stillman Property Management Annual $20,000 ✓ ✓ A B C D E F Yes Sliding scale Tudor Realty Services Annual $45,000 ✓ ✓ A B C D E F No Veritas Property Management Annual $18,000 ✓ A B F C D E Yes Sliding scale Vintage Real Estate Services Annual $22,000 ✓ ✓ A B C D E F No Weber-Farhat Realty Management Annual $12,000 ✓ A B C D E F Yes Sliding scale KEY A = 1098 Forms B = Smoke Detector C = Window Guard Notification Letters D = Fire Safety Plan Notices E = Lead Paint Notices F = Carbon Monoxide Detector Notices

18 HABITAT january 2014 www.habitatmag.com 2014 PROFILES: Manager Salaries, Gender & Other Stats Compensation & Benefits Personnel Manages Principal Managers Female Managers Male Hired Fired Range Salary Level Entry Range Salary Level Senior Benefits Employee Company

Akam Associates Yes 16 22 4 1 $56K - $75K $96K - $130K A B C D E F G Alexander Wolf & Company Yes 2 7 2 0 $36K - $55K $66K - $95K A B E F G H

All Area Realty Services No 2 9 3 $36K - $55K $66K - $95K A E F Andrea Bunis Management Yes $36K - $55K $96K - $130K A C D E F G H

Blue Woods Management Group Yes 7 1 0 $36K - $55K $66K - $95K A B D E

Buchbinder & Warren No 8 5 1 1 $56K - $75K $66K - $95K A C D E G

Carlton Management Yes 3 5 1 0 $36K - $55K $66K - $95K A B D E I Century Management Services Yes 5 7 2 0 $76K - $95K $131K - $150K A B C D E F H

CFA Management Yes 3 1 0 0 $56K - $75K $131K - $150K A B D

Delkap Management Yes 4 2 0 0 $36K - $55K $66K - $95K B E G

Einsidler Management Yes Varies Varies A B E H

Excel Bradshaw Management Group Yes 1 7 2 2 $56K - $75K $96K - $130K A F I Fairfield Properties No 13 10 2 0 $76K - $95K $131K - $150K A B C D E F H I FirstService Residential No 74 72 $56K - $75K Over $151K A B C D G Garthchester Realty Yes 1 6 1 0 $56K - $75K $96K - $130K A B C E I KEY A = Medical Gerard J. Picaso Inc. Yes 2 8 A B C D E F G B = Retirement Gramatan Management Yes 3 7 0 0 $36K - $55K $66K - $95K A B D E H C = Life Insurance Grogan & Associates Yes 0 4 $56K - $75K $96K - $130K A B C D E D = Disability Insurance HSC Management Yes 3 6 $36K - $55K $96K - $130K A B E F E = Cell Phone Impact Real Estate Management No 4 7 2 $56K - $75K $66K - $95K A D E F H F = PDAs John B. Lovett & Associates Yes 4 8 1 $36K - $55K $66K - $95K A B C E F H G = Comp Time Jordan Cooper & Associates Yes 2 2 2 0 $36K - $55K $131K - $150K A B C D E F G H H = Car I = Other Kaled Management No 2 5 0 0 $36K - $55K $66K - $95K A B C D E F G H

Key Real Estate Associates Yes 2 3 1 $36K - $55K $96K - $130K A B D E G H I Lawrence Properties No 7 6 1 $56K - $75K $66K - $95K A B C D E G Majestic Property Management No 1 2 0 0 $56K - $75K $96K - $130K A B C D E H Maxwell-Kates Yes 10 20 1 $36K - $55K $131K - $150K A B C D E F G H

Merlot Management Yes 5 1 0 $36K - $55K $96K - $130K

MGRE/Mark Greenberg Real Estate Yes 2 11 1 0 $56K - $75K $131K - $150K A B E G I

Midboro Management Yes 14 8 1 Varies Varies A B C D E F New Bedford Management Yes $56K - $75K $66K - $95K A B D E F

Orsid Realty Yes 8 22 5 1 Varies Varies A B C D E F Pride Property Management Yes 2 5 $36K - $55K $96K - $130K A B D E F G H Rudd Realty Management Yes 3 5 2 1 $56K - $75K $96K - $130K A B E F G I SAM Management Yes 0 4 0 0 $56K - $75K Over $151K Sandberg Management Yes 2 3 1 0 $56K - $75K $96K - $130K A B D E F Sandra Greer Real Estate Yes 3 2 $36K - $55K $96K - $130K D I Siren Management Yes 0 4 0 0 $56K - $75K $96K - $130K A C D E F G Stillman Property Management Yes 7 20 3 0 $56K - $75K $66K - $95K A B C D E F G I Tudor Realty Services No 7 10 0 0 $36K - $55K $96K - $130K A B C D E F Veritas Property Management Yes 2 6 1 2 $36K - $55K $66K - $95K A D E H I

Vintage Real Estate Services Yes 2 3 0 0 $56K - $75K $66K - $95K A B D E Weber-Farhat Realty Management Yes 2 0 0

www.habitatmag.com january 2014 HABITAT 19 2014 COMMUNICATION: Tools & Technology

Time Spent with Clients Website Information Upon Log-In Website n Boards and Primary Primary Texting Face to to Face Log-In for for Log-In Residents Residents Phone Accesible Accesible E-mail Special Face Face Company Use

Akam Associates 35% 40% 25% Yes Yes A B C D E Alexander Wolf & Company 30% 40% 5% 30% Yes Branding Yes A B C All Area Realty Services 20% 55% 25% Yes Branding, Brokerage Yes A B C D E Andrea Bunis Management 75% 95% 50% 50% Yes Branding, Brokerage Yes A B C D E Blue Woods Management Group 20% 70% 10% Yes Branding Yes A B D F Buchbinder & Warren 30% 55% 15% Yes Branding, Brokerage No Carlton Management 25% 50% 25% Yes Branding Yes A B F Century Management Services 30% 60% 10% Yes Branding Yes A B C D E CFA Management 5% 110% 20% No Delkap Management 50% 20% 10% 20% Yes Branding No Einsidler Management Yes Branding F Excel Bradshaw Management Group 10% 75% 5% 10% Yes Branding No Fairfield Properties 25% 50% 5% 20% Yes Branding, Brokerage Yes F FirstService Residential 35% 50% 15% Yes Branding Yes A B C D E F Garthchester Realty 20% 50% 5% 25% Yes Branding, Brokerage No Gerard J. Picaso Inc. 15% 65% 20% Yes Branding Yes A Gramatan Management 35% 35% 20% Yes Branding, Brokerage No Grogan & Associates 20% 60% 20% Yes Branding, Brokerage No HSC Management 25% 60% 5% 10% Yes Branding Yes F Impact R.E. Management 30% 40% 10% 20% Yes Branding, Brokerage Yes F John B. Lovett & Associates 30% 60% 10% Yes Branding, Brokerage Yes A Jordan Cooper & Associates 25% 65% 10% Yes Branding No Kaled Management 25% 40% 5% 30% Yes Branding, Brokerage Yes A B C D Key R.E. Associates 20% 65% 5% 10% Yes Branding Yes A Lawrence Properties 20% 20% 5% 55% Yes Branding Yes A B C D E Majestic Property Management 50% 25% 25% Yes Branding No Maxwell-Kates 20% 75% 5% Yes Branding Yes A D Merlot Management 40% 60% 10% Yes Branding No MGRE/Mark Greenberg R.E. 25% 45% 30% Yes Branding Yes A B C D E Midboro Management 35% 40% 5% 20% Yes Branding Yes A B C D E NAI Long Island 20% 15% 5% 5% Yes Branding, Brokerage Yes A D New Bedford Management 40% 40% 1% 19% Yes Branding, Brokerage Yes A B C Orsid Realty 20% 60% 20% Yes Branding, Brokerage Yes A B C D E F Pride Property Management 5% 80% 15% Yes Branding Yes A B C D E Rudd Realty Management 20% 65% 0% 15% Yes Branding, Brokerage Yes A B C D E F SAM Management 10% 75% 0% 15% Yes Yes A B E Sandberg Management 10% 80% 10% Yes Branding No Sandra Greer R.E. 10% 30% 20% 40% Yes Branding, Brokerage No Siren Management 10% 85% 3% 2% Yes Branding Yes C D F Stillman Property Management 20% 60% 20% Yes Branding, Brokerage Yes A D F Tudor Realty Services 50% 30% 5% 15% Yes Branding, Brokerage Yes A B D E Veritas Property Management 20% 60% 20% Yes Branding, Brokerage Yes A C F Vintage R.E. Services 40% 55% 5% No Weber-Farhat Realty Management 10% 80% 10% Yes Branding Yes A B D KEY A = Documents and Forms B = Building Financial Information (Audited Statements, Tax Deduction Letters, etc.) C = Current Financial Information for Building (Board only) D = Staff Contact Information E = Building Newsletters F = Other

20 HABITAT january 2014 www.habitatmag.com 2014 RESIDENT TRANSACTIONS: Options & Fees

Maintenance Payment Options Processing Fees Applications Transfer Agent Application2 Charge Card Plan Review Plan Pay Online Pay Automatic Automatic Alteration Alteration Financing Transfers Send To Send Sublet Other Company Debit

Akam Associates Bank Lock Box Yes Yes Yes Yes $500 Alexander Wolf & Company Bank Lock Box Yes Yes Yes Yes Varies Varies Varies Varies Varies Varies All Area Realty Services Bank Lock Box Yes Yes Yes Yes $450 $200 $500 $350 $150 Andrea Bunis Management Bank Lock Box Yes Yes Yes Yes $300 $300 $650 $300 $300 Blue Woods Management Group Bank Lock Box Yes Yes No Yes $500-$650 $400-$600 $500-$600 $400-$500 $300-$400 Buchbinder & Warren Bank Lock Box Yes Yes No Yes $250 $250 $800 $350 $500 Carlton Management Bank Lock Box Yes Yes Yes Yes $500 $300 $600 $500 $500 Century Management Services Bank Lock Box Yes Yes Yes Yes $500 $500 $700 $500 $350 CFA Management Management Office Yes No No Yes $500 $500 $600 $500 $500 Delkap Management Management Office Yes Yes No Yes $350-$500 $100 $500 $350 $100 Einsidler Management Bank Lock Box Yes Yes Yes Excel Bradshaw Management Group Bank Lock Box Yes Yes No Yes $450 $250 $450 $250 $250 Fairfield Properties Bank Lock Box Yes Yes No Yes $450 $250 $800 $450 $0 FirstService Residential Bank Lock Box Yes Yes No Yes Garthchester Realty Bank Lock Box Yes Yes No Yes $300 $75 $450 $300 $200 Gerard J. Picaso Inc. Bank Lock Box Yes Yes Yes $350 $350 $650 $350 $350 Gramatan Management Bank Lock Box Yes No No Yes $300 $300 $0 Bank Lock Box Yes Yes Yes Yes $450 $450 $600 Recognition $450 $500 Grogan & Associates Agreement Fee $350 HSC Management Management Office Yes Yes Yes $100-$250 $100-$250 $500 $100-$250 $0 Impact Real Estate Management Bank Lock Box Yes Yes Yes Yes $350 $250 $700 $350 $0 John B. Lovett & Associates Bank Lock Box Yes Yes No Yes $400 $250 $700 $400 $250 Jordan Cooper & Associates Yes Yes Yes Yes Varies Varies Varies Kaled Management Bank Lock Box Yes Yes No Yes $600 $200 $450 $600 $500 Key Real Estate Associates Bank Lock Box Yes No No Yes Lawrence Properties Bank Lock Box Yes Yes Yes Yes $250 $250 $400 $300 $0 Majestic Property Management Management Office Yes Yes Yes Yes Maxwell-Kates Bank Lock Box Yes Yes Yes Yes Yes Yes Yes Merlot Management Management Office No No No Yes $350 $300 $600 $350 $300 MGRE/Mark Greenberg Real Estate Bank Lock Box Yes Yes No Yes $500 $300 $600 $450 $500 Midboro Management Bank Lock Box Yes Yes No Yes $350 $250 $700 $300 $350-$500 NAI Long Island Bank Lock Box Yes Yes Yes Yes $125 $75 $425 $250 $0 New Bedford Management Bank Lock Box Yes Yes Yes Yes $500 $150 $350 $250 $100 Orsid Realty Bank Lock Box Yes Yes No Yes $600 $300 $300 $400 Varies Pride Property Management Bank Lock Box Yes Yes Yes Yes $425 $200 $675 $425 $200 Bank Lock Box Yes Yes Yes Yes $400-$650 $300 $750 Credit $300 $500-$750 Rudd Realty Management Check $100 SAM Management No Yes No Yes $450 $400 $850 $450 $600 Sandberg Management Bank Lock Box Yes No No Yes $350 $150 $500 $350 $350 Sandra Greer Real Estate Management Office No Yes No $250-$450 $150-$300 $600 $150-$300 $500 & up Siren Management Bank Lock Box Yes Yes No Yes $350-$450 $0 $600-$700 $350-$450 $150-$500 Stillman Property Management Bank Lock Box Yes Yes No Yes $150 $200 $400 $150 $150 Tudor Realty Services Bank Lock Box Yes Yes $750 $300 $750 $600 $250 Veritas Property Management Management Office Yes Yes No No $200-$300 $100 $500 $150-$250 $150-$300 Vintage Real Estate Services Bank Lock Box Yes No No Yes $350 $250 $600 $350 $250 Weber-Farhat Realty Management Management Office Yes Yes Yes Yes $750 $100 $500 $200 $200

www.habitatmag.com january 2014 HABITAT 21 payment

Why does one invoice get paid immediately while another gets stalled for weeks?

by ronda kaysen

very day, hundreds of bills Nevertheless, the room for error is vast. intended for the city’s condos Invoices can get waylaid on the desk of a and co-ops arrive at the back distracted co-op or condo board member; offices of property management a check can be cut from the wrong account firms. Delivered in unassuming or, worse, paid to the wrong vendor. In some envelopes, they request payment cases, a building doesn’t have the cash to cover for goods and services as varied its costs, a predicament that leaves property as the buildings themselves. From the price managers doing a juggling act: holding checks Eof a new light bulb to a plumber’s fee to the that can wait while paying only the critical staggering cost of a new roof, the demands that ones. the bills set forth must all be met to keep the For vendors wondering why one invoice wheels turning. might get paid immediately while another gets But it’s not easy being a bill. Management stalled for weeks, the curious life of a bill is as firms employ a complex processing system much a story about co-ops themselves as it is to ensure that vendors are paid correctly. about banking.

22 HABITAT january 2014 www.habitatmag.com “When you’re generating 10,000 checks a month, anything is possible,” It’s a Quality of Life...and a Lifetime of Quality says Alvin Wasserman, director Experience the Fairfield Advantage: of asset management at Fairfield • Premium Property Management Properties. “There is no foolproof • Insurance system and mistakes can be made. • Mortgage But when there are half a dozen eyes • Sales and Leasing looking at every check that goes out • Management That Pays For Itself for payment, it minimizes the chance for errors.” Fairfield Properties www.fairfieldproperties.com All Eyes on Deck Alvin Wasserman, Director [email protected] In general, bills fall into two 718-659-6477 516-482-4934 631-499-6660 Ext. 229 categories: recurring and non- recurring. The vast majority of bills are recurring: they arrive at the same time every month or every quarter and offer few surprises. They cover costs for utilities, insurance, taxes, We invest in and mortgage payments. These bills are paid immediately and with little their fanfare. But the process looks very different Future for a non-recurring bill. These one-off statements – for salt delivery in the winter; for the electrician who fixed faulty wiring in the hallways; or for elevator repairs – require far more oversight from management and the board. This is where the great machine of paying the bills comes to life. At Orsid Realty, which manages over 100 properties, dozens of non- recurring bills arrive at its Manhattan office daily. Andre Kaplan, the company’s chief financial officer, and Neil Davidowitz, its president, sign between 2,000 and 3,000 checks a week. But long before any check is signed, the invoice begins its circuitous journey to approval. Here’s how it works: when an invoice arrives with the mail, it is date stamped and placed in a basket. An employee sorts the invoices, makes a copy of the document, and enters the information into the computer system – assigning the bill with a vendor It’s one of the most important things we do!!! code, invoice number, and building. The bills are then placed in folders There were many factors in our developing a Green Management Program. We wanted to for the property managers to review. reduce dangerous carbon emissions, avoid Once a week, a property manager using toxic chemicals, conserve energy and takes his folder to his building and actually save money. sits down with the superintendent to Most of all, we wanted to create a healthier Management•Brokerage•Consulting discuss the details. Did the plumber environment for our children. really stay for two hours? Did he Please contact us to learn more. really have an assistant with him? Ira Meister, President • 127 East , New York, NY 10022 • T: 212.699.8900 F: 212.699.8939 Was the problem with the boiler [email protected] • matthewadam.com

www.habitatmag.com january 2014 HABITAT 23 resolved? Is the hourly rate correct? original is handed to them. “Some boards are real kooky about For many, involving the super “We encourage boards to sign this.” and the property manager in the their own checks because ultimately billing process is critical. “Even if it’s their property,” says Wasserman What’s In a Name? it is as innocuous as the recurring of Fairfield, which both owns and For the most part, the process is exterminator bill, it opens up a manages properties. “It’s their money a streamlined machine with dozens dialogue regarding what was done and if the president and the treasurer of employees working in the billing and what needed to be done,” says sign checks, they know what’s going office to make sure the bills are Steve Greenbaum, director of on at the property. They can see what processed and paid correctly. But management at Mark Greenberg is happening in the life of the property with scores of apartment buildings Real Estate. “It really makes for by the bills that are getting paid.” and hundreds of vendors, there is much better communication. That Once the bill has been approved, always room for error. On occasion, way if a client calls, you’ve had that it returns to the billing office where a bill intended for one property is discussion.” a check is cut. Timing is key. If an accidentally paid for by its neighbor invoice arrives on the second day of with a similar street address. In these The Board Steps In the month, for example, but the board cases, property managers simply have If a bill is large enough, a board meets on the first, then the invoice one building reimburse the other. member must also see it and has to wait an entire month just to be But when the wrong vendor is sometimes sign the check too, adding approved by the board. And, if the paid – perhaps a check went to days or weeks to a process. If the unfortunate invoice makes its way Superior Cleaning instead of Superior treasurer is traveling, for example, he back to the management office a day Plumbing – the resolution is trickier. may not review it until he returns. Or, after the company cuts checks for the “It’s a little embarrassing,” says Seth if the board wants to review bills at week, the process could be delayed Kobay, president of Majestic Property its monthly meeting, it could further even further. Management. “Even though it’s delay the process. Sometimes, board “Sometimes there’s a hang-up in going through this four-step process, members receive a PDF of the invoice the situation,” says Stuart Halper, [accidents have] happened.” by e-mail, but in other cases the a principal at Impact Management. When the wrong vendor is paid – or if the invoice is mistakenly paid twice – the only solution is to call the vendor. At Impact, a contractor was recently paid twice for a $2,000 bill. “We have to be on our toes,” says LAUREN & CHASE Halper. “They don’t call us if there DESIGN GROUP are mistakes made [in their favor].” Sometimes, vendors send improper invoices. They might make a bill out to the property management company or the building address and not the building corporation. Or they send a work order instead of an invoice. Or they don’t include an invoice number. In these cases, property managers return faulty bills, restarting the entire process before it even begins. “Very frequently vendors screw it up,” says Greenbaum. “They get it wrong even when you tell them five times.”

Financial Tightrope It’s an open secret that many co-op Well-designed interiors are exciting to experience. Let us help you….. and condo buildings operate on the Lauren & Chase is your resource for outstanding, full-service design created specifically for your building. financial edge. An unusually cold winter can send oil bills through Please contact Susan D. Lauren for a complimentary design consultation. the roof and put a building’s cash www.lauren-chase.com • 212-799-6633 • [email protected] flow at risk. Winter is so tough that Licensed NCIDQ – certified LEED Green - certified an invoice that arrives in July has

24 HABITAT january 2014 www.habitatmag.com Hercules 60 East Jefryn Blvd., Deer Park, NY 11729 4.5” x 9.75” Phone 631-595-9100 Fax 631-595-1975 Color 09/2013

a much better chance of being paid quickly than one that arrives in January when oil bills are cutting into a building’s cash flow. But other problems can also drain finances. An unexpected elevator repair at the beginning of the month before maintenance checks arrive can spell chaos. For the bookkeepers toiling in the back offices, reconciling • Instant Service At The Press Of A Button the bills with the balance sheets is a constant headache. • Real Time Laundry Room Monitoring “A lot of these boards run tight,” says Steve Birbach, chairman of • New Smart Card Revaluing Options Carlton Management. “They don’t have any fluff in their budget for unexpected capital expenditures.” Sometimes a vendor will make concessions just to get the business. One contractor recently allowed a Manhattan condo to pay its $200,000 Request Service elevator repair bill over a period of two years – without interest – because the building didn’t have the cash to ReValue Smart Card cover the cost. Patience on the part of a vendor can pay off. The city’s HercAlert property management firms manage scores of buildings and, even if a co-op’s cash flow is tight in the dark days of February, they will continue to bring in maintenance fees to pay their bills. Says Kobay: “It pays to be loyal to some of the vendors, and hopefully they are accommodating.” Slow as the process may be, it is much faster in the digital age. Before office scanners, PDFs, and smartphones were commonplace, companies used to send urgent bills to board members over fax and wait Doing laundry just got for a faxed approval to return. Now, a lot simpler… companies like Carlton Management scan the incoming invoices and Contact Hercules to discuss e-mail them to board members for how new technology can work approval. A treasurer can review the document on her iPhone and respond for your next laundry room within minutes. Carlton uploads property-related records onto its secure website, so board members can review them online. Concludes Greenbaum, the manager: “I think people take for granted that these things get done The Smart Choice in Laundry automatically and correctly.” n 550 West John Street • Hicksville, NY 11801-1039 1-800-526-5760 • www.hercnet.com

_Hercules_(C)_0513.indd 1 9/26/13 11: www.habitatmag.com january 2014 HABITAT 25 by bill morris it all Began on a cold December afternoon in 2008 at the Broadlawn, an elegant Jazz Era compound that houses 121 co-op apartments in White Plains. Workers were repairing the slate roof and repointing the brick façade, and, though the contract stipulated that no acetylene torches were to be used on the job, one worker with the subcontractor was using a torch to speed the drying of mortar before the crew knocked off for the weekend. Trial by The flame ignited the roof. Soon the blaze was spreading out of control and a dark black cloud was boiling into the cold winter sky. This is the story of that devastating fire, which wound up testingFire the residents, educating them, and, finally, making their co-op stronger than ever.

Impelled to Act By the time the fire at the Broadlawn was extinguished, the roof and top floor of one of the complex’s 16 buildings were destroyed. Firefighters had pumped 500,000 gallons of water into the blaze. Seven apartments were uninhabitable, and three had suffered significant water damage. An ordeal that would drag on for more than two years was under way. Even before the fire trucks left the scene, the co-op’s seven board Insurance Company (GNY), and its adjuster. The directors, feeling pressured to members were coming together in full act quickly and decisively, hired the recommended adjuster on the spot. crisis mode – and making their first “There’s a lot of panic and fear at a time like that,” says Chris Vescio, an mistake. The board’s insurance agent accountant who was then the board’s president. “I felt responsible for dealing arrived, along with an insurance with it... But if I had to do it again, I would take time to talk to [more candidates adjuster he had worked with in the before selecting] an adjuster.” past. The agent assured the board that On the Monday after the fire, the board met with the shareholders whose this adjuster was the ideal man for apartments had been damaged or destroyed, as well as the co-op’s managing the impending negotiations with the agent, attorney, architect, insurance agent, and the new adjuster. insurance carrier, Greater New York “The first thing we realized was that communication was going to be the key,”

26 HABITAT january 2014 www.habitatmag.com says James Glatthaar, who has been the board’s attorney since 1992. “We called that meeting to reassure people that we were all over the situation and we would get them back into their apartments as soon as possible.” People who attended the meeting describe it as “hot,” with worried shareholders asking questions about what was covered by insurance – both the co-op’s policy and their own homeowner policies – and two shareholders revealing that they had not renewed their homeowner policies, as required by the house rules. The news was unsettling. The shareholders learned that the co- op’s insurance would pay to restore apartments to their condition at the time of the co-op conversion, in 1982. Any modifications made since A long and illustrious history then would have to be covered by the working with housing developments homeowner policies. The games were just beginning. One factor that would turn the Norris McLaughlin & Marcus (formerly Szold & Brandwen) games into a chess match was the offers full service representation of cooperatives and workmanship of the Broadlawn. Built condominiums, based on over 85 years of experience, in 1928, the co-op’s buildings are including: blessed with architectural details that speak to a past when elegance and • Construction, professional and service contracts artistry mattered — brass hardware, • Commercial, retail and professional leasing plaster crown moldings, lath-and- • Litigation plaster walls, and solid wooden doors. • Landlord/Tenant proceedings and actions On the downside, the 80-year-old • Corporate governance electrical wiring and plumbing were • Shareholder disputes archaic by contemporary standards. • Special expertise drawn from other areas of practice in the firm The board was determined to preserve the building’s integrity and charm; it quickly became apparent The firm’s cooperative and condominium clients range from that integrity and charm were not smaller buildings to large multi-building developments. All covered by the policy. receive timely and responsive service from our team of One thing working in the co- experienced attorneys. op’s favor was that the contractor doing the roof repairs admitted his Cooperative & Condominium Law Group subcontractor caused the fire, and wished to continue on the job and make the building whole. The board, Ezra N. Goodman Dean M. Roberts which had been happy with his Burt Allen Solomon Karol S. Robinson performance until then, decided to Michael T. Reilly Danielle M. Wanglien keep him on rather than hire a new contractor or use one recommended 875 Third Avenue • 8th Floor • New York, NY 10022 by their insurance company. It was t: 212-808-0700 • f: 212-808-0844 • e: [email protected] a question of control. The board had a working relationship with this www.nmmlaw.com

www.habitatmag.com january 2014 HABITAT 27 In THe AfTerMATH contractor – and no knowledge of the What should a board do – and not do – after a disaster? board insurer’s contractor. members, insurance brokers, managing agents, and lawyers “The board didn’t want one-stop who have had experience with calamities offer advice: shopping – the insurance company’s • though there is so you have control of the adjuster bringing in a contractor pressure to act quickly and repair work. he’d worked with in the past,” says decisively, it’s advisable to • similarly, don’t hire Jeffrey Stillman, the co-op’s property weigh all options before professionals unless they manager. making a decision. once have some experience The insurance company and the made, decisions can be dealing with disastrous board were soon wrangling over difficult to reverse. events. “it’s easy to pay their widely divergent cost estimates, • don’t price-shop when bills,” says one board the scope of the work, what was looking for an insurance member. “it’s not so easy covered under the policy, and when carrier. An AAA-rated to deal with an issue like the settlement would be delivered. company will be more this.” Eager to get the job moving forward, expensive, but it’s probably the board announced it was going to • keep detailed records worth the extra cost. begin repairs in July 2009 with the of every invoice, board money offered by the insurer – but • Make sure your meeting, e-mail, and would continue to fight for a larger insurance policy has inspection report. these settlement. Here, a bit of luck worked unlimited coverage for can be invaluable when in the co-op’s favor. “loss of use,” so that negotiating with your “We were sitting on a $1 million displaced residents will insurer. line of credit and we had a $500,000 be taken care of for the • Make sure all residents’ reserve fund because we had duration of repairs. And homeowner policies are up refinanced the mortgage in 2008, check that it allows you to to date. before the fire,” says Vescio. “That hire your own contractor, meant we had the wherewithal to MANAGE SMART RAISE VALUE Rudd Realty Management transforms its cooperative and condominium properties to INCREASE CURB APPEAL We improve how your building looks & operates, raising value and increasing sales prices.

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28 HABITAT january 2014 www.habitatmag.com Specializing in quality management services, move forward on the path we cooperative/condo conversions, cooperative/condo sales, wanted to move on – hiring our general contracting and more. own contractor, and exceeding what the insurance company wanted to pay for – without the insurance MAJESTIC company’s money.” Glatthaar, the attorney, says that PROPERTY MANAGEMENT CORP. allowed them to play hardball with 60 Cutter Mill Road – Suite 303 the insurance company. “It gave Great Neck, New York 11021 the shareholders a better rebuilt apartment than they would have T: 516-466-3100 www.majesticpropertymgt.com gotten if we didn’t have those resources,” he adds. “That built up some good will with the shareholders and gained their support in our fight with the insurance company.” At this point, the board, after disagreeing with the adjuster’s advice, fired the It’s time for insurance agent and started shopping for a replacement. ® The co-op’s architect drew up CROSSOVER plans that brought the damaged apartments into compliance with In a class by itself contemporary building codes. The rebuilt apartments have state-of-the- art electrical wiring, hot and cold water lines, and waste and gas lines. One sticking point, which illustrates the fraught nature of the negotiations, was the walls. The board wanted the insurance company to replace them with the original lath-and-plaster. Too expensive, the company argued, offering to pay for Crossover by Wascomat is built to last 15,000+ cycles Sheetrock walls covered with plaster- – more than double the life of appliance washers! like spackle compound. “The biggest issue was getting • 60% less water and 15 minutes less time in the dryer than materials that were satisfactory to the the average top loader - huge savings! shareholders,” says Stillman. “The • Built to commercial standards with pump, professional building was built one way, and the grade 8-point suspension, and heavy duty SKF bearings insurance company wanted to rebuild • 300 G-force extraction for huge energy savings it another way. It was an everyday • Extra-large load drum—double plus capacity battle for months, the hardest thing • Won’t oversuds and stays in balance I’ve ever had to do. It consumed me for several hours every day for a • Coin, card or central payment system compatible year.” Eventually, the board settled Increase your profits!You will save time and money – on double-thick Sheetrock walls and improve customer satisfaction. Call today to learn more. covered with the spackling compound previously recommended by the reconstruction contractor, which turned out to be even more soundproof than the original walls. (800) 862-1752 • [email protected] The affected shareholders agreed to When laundry means business. accept this. “The important thing is that we

www.habitatmag.com january 2014 HABITAT 29 gave the shareholders the best product we possibly could,” says Glatthaar. After all the wrangling and delays, residents finally moved back into their apartments in the summer of 2010 – a year and a half after the fire. The shareholders’ claims against the insurers of the contractor and subcontractor were settled in September of that year, and payments were made the following month. In the end, GNY paid $1.8 million, while the co-op kicked in about $200,000. Settlement of the co-op’s claims did not occur until December, and it was paid, at long last, in March 2011.

lessons of the Blaze What were the primary lessons that the Broadlawn’s board and professionals took away from the experience? “You have to have a healthy degree of suspicion over all

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30 HABITAT january 2014 www.habitatmag.com the companies that work with your insurance company,” says Glatthaar. “I found that they all have relationships and they’re not going to risk those relationships for one co-op.” He called that web of relations “incestuous,” adding, “We were optimistic as we went in, but we became pugilistic.” A spokesman for GNY Insurance declined to comment. But insurance broker Barbara Strauss, executive vice president of York International Agency, has had extensive dealings with GNY and gives the insurer high marks. “No insurance company is going Are you prepared if an accident happens on your property? to pay a loss that may be deemed unreasonable,” she notes. “GNY For over 25 years, our insurance specialists have been has contractors who can do the providing the expertise to help you plan for the risks work and provide more favorable that tomorrow may bring. pricing when adjusting a loss. It’s very common.” Over 1,000 condominiums, cooperatives & apartment In the end, Strauss advises, buildings rely on us to protect their interests. boards can control their destiny by WEB www.mackoul.com BLOG info.mackoul.com E-MAIL [email protected] PHONE (516) 431-9100 choosing an insurance company wisely. “You get what you pay for,” she says. “If you’re going to cut corners to save money, you may get an inferior product. I advise boards to make sure Managing Your Building’s their broker analyzes coverage differences and knows their carriers. There are some insurance lectricity companies that don’t pay as well as others.” Costs Another lesson in a time Should be Easy! of disaster is to expect the unexpected – and get ready to pay inding a fair way to allocate electricity costs in for it. “This is a hard thing for Fa co-op or condo building can be a challenge. co-op and condo board members Now, Quadlogic will be your partner and make your to understand,” says Glatthaar. job very easy, while being fair to all stakeholders. “Sometimes you’re caught in a Our Advanced Sub-Meters are approved for use situation where you didn’t do Model S-10 in the new NYSERDA Electric Reduction in Master In-unit residential meter anything wrong and you think the Metered Buildings (ERMM) Program, which offers co-op or condo shouldn’t be out payments up to $250 per meter, plus other incentives. In addition, of pocket. But you will be out of Quadlogic will help you untangle the regulations, so you can receive the pocket because your insurance incentive payment faster. What’s more, we offer Reading & Billing Services, company simply will not pay for so you don’t have to. Result: your building saves by conserving electricity, certain things – the managing and you are saved from the hassles of managing it. agent’s time, legal fees, architect’s Call today and ask for Eric Jacobson. It’s that easy! costs.” And the final lesson: don’t kid (212) 930-9300 yourself. If you think disaster [email protected] www.quadlogic.com can’t happen to your building, you need to think again. Right now. n www.habitatmag.com january 2014 HABITAT 31 The Broker Is In when the go-to sales agent is also a neighbor, conflicts could arise. . by ronda kaysen

MICHele KleIeR IS InTIMaTe been selling apartments for a long with the building. Really. time, frequently with few problems. The president of Kleier Residential And your building may have one: the and co-star of the HGTV reality show broker who lives in a building and Selling New York is trying to sell has, over the years, become the “go- Apartment 7A at 1125 Park Avenue. to” salesperson for residents. She describes the unit in this prewar But what happens when this broker co-op as “gracious” and “elegant,” abuses her trust? How, then, does a and the luxury property itself as board deal with the broker who is having great amenities and lovely also a fellow resident? neighbors. She should know. She’s lived in the building for 32 years. Residency Is Good So-called resident brokers like From a board’s point of view, Kleier can be a blessing. Because a resident broker with a rich and the building they represent is also intimate knowledge of the building their home, they know it well and can help vet potential customers, understand the quirks of the board, improving the odds of approval. and thus are more likely to deliver For instance, Kleier, who handles buyers everyone will love. They have 80 percent of her building’s listings,

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32 HABITAT january 2014 www.habitatmag.com has never had a rejection in all the That Was awkward individual from doing business in the time she’s handled sales there. She That said, what happens when a building. has sold 47 apartments in this 72-unit resident broker steps out of line? No board wants to restrict its Carnegie Hill cooperative. She is Although not a widespread problem, residents’ ability to work with brokers known as the unofficial broker of the it can create an awkward situation. they choose (some would – and house. The board must deal with the have – argued that it is a restraint of In addition, a building with a top uncomfortable task of disciplining trade). In fact, you should probably broker living there has the benefit or – as a last resort – forbidding the bend over backward to work things of a professional with a personal commitment to its welfare. If the broker is also a shareholder, she is not likely to sell a unit to a difficult person. “I have a stake as far as who is going to be moving into the building,” says Kleier. “I want to keep the building at a certain level. We want nice people. We want good neighbors.” For the buyer or seller, a resident broker is more likely to ensure that the deal passes muster. The individual representing them can more easily follow up on delays in completing and delivering the package. In cases where a sale can be derailed at the whim of a board, a broker with strings to pull can offer sellers and buyers a measure of relief. “I know people on the board. So, if I see that the management agency is going too slow, I get them to help me,” says Amy Krischer, an independent broker who only sells listings in her condo, the Bromley, a 300-unit luxury building on the Upper West Side. “And they will help me because, remember, I’m also an owner in this building.” On streeteasy.com, Krischer is listed as the condominium’s top broker. Although restricted by anti- discrimination laws from discussing issues like schools, churches, and local demographics, resident brokers also can convey a deep understanding of the building and the neighborhood. They know whether the dry cleaner down the street is reliable or if the local pizzeria is any good. When a unit is in disrepair, they probably know enough to show a prospective buyer a renovated unit in the same line.

www.habitatmag.com january 2014 HABITAT 33 out. Attorney Robert D. Tierman, a Marcus. “A broker who just does a shareholders, because the broker partner at Litwin & Tierman, advises little business in a building probably was selling apartments at too low a boards to give the offending broker won’t sue, but a broker who does price, misrepresenting the property, every opportunity “to clean up his act substantial business in a complex and speaking badly about the before being banned.” might.” building – really about the board. In The reason is simple: forbidding a So be prepared with the facts. short, they said the broker was not broker from working in your property Roberts says that his client, a New operating in the best interests of the will invariably lead to a lawsuit. York City co-op, prevailed against co-op.” “You must realize that there is a a challenge to a ban it had imposed Forbidding a broker from working strong likelihood that [a restriction on a broker by having a clear in your building is an extreme step on a broker] may be challenged in rationale for its actions. When to take – but one that many boards court,” warns attorney Dean Roberts, examined in court, the directors don’t even realize is open to them. a partner at Norris McLaughlin & explained that “it was to protect Attorney Stuart Saft, a partner at Holland & Knight, says: “The board absolutely has the power to ban [any type of] brokers from [doing business] in the building. They can ban for abuse, and any other reason, except for self-dealing, bad faith, Our Properties Tell or discrimination. The board of a co-op has complete control of the co-op.” our story So, what are the areas of discomfort that may force a board to take some sort of action against If buIldIngs could speak, you’d hear a As a broker? These include repeated instances of incompetency or chorus of praIse for kaled ManageMent. building owners dishonesty; constant breaking of ourselves, starting as a family owned-and-operated business in building rules; sending too many we understand the late 1920s, we’ve been providing a comprehensive e-mails to residents trying to get range of real estate management services for four the challenges them to list; and staging open generations, to an ever-growing list of satisfied clients. you face… houses after being told to stop. In the properties we manage, including our own, really short, anything that affects the do tell the story. Listen, and you’ll hear them speak of residents’ “quiet enjoyment” of their apartments and the smooth running our fierce dedication to our clients… our intense of the property. commitment to the highest standards… and our unique approach to management. Conflicts, new Blood & lawsuits We know how to to make your property run as Boards can also become smoothly, efficiently and economically as possible. uncomfortable if their rejection of an apartment sale means the broker involved (who is also a neighbor) loses his income. “If you reject his sale, it hits very close to home,” says Dan Wurtzel, president of property management at FirstService Residential. “You’re telling someone who’s a shareholder, ‘I’m sorry, you’re not Please contact Peter Lehr for a complimentary property going to get paid on this deal.’ That assessment, to evaluate the key areas that can impact can create some uneasiness within a the profitability of your building. building community.” That sense of unease intensifies www.kaled.com • 516.876.4800 • [email protected] when a resident broker actively Corporate NyC 7001 Brush Hollow Road 757 Third Avenue lists in the building while also Westbury, NY 11590 New York, NY 10017 serving on the board – even if this individual recuses himself from

1KALED34 13-0001_4.5x7.25.indd HABITAT january 1 2014 1/22/13 4:06 PM www.habitatmag.com the vote. In 2005, Corcoran Group apartment may feel that if they previously lived in the building. In broker Bruce Robertson sat on the don’t give the listing to [the go-to response, according to The Real board of his Washington Heights broker, a potential buyer] might get Deal, she filed a $20.4 million co-op. When an applicant for an rejected,” explains Robertson. lawsuit. After the board lifted the apartment he listed appeared before Boards should also be wary ban, she withdrew the suit. (An the directors, he recused himself of overreaching. In 2012, the attorney for the Link says the board from the process. However, he Link, a luxury Midtown West declined to comment.) ultimately decided not to run for condo, tried to ban a broker who The unbearable resident broker office again and instead works had sold multiple listings in the may be a rare sight, but if he on various committees for the building, accusing her of running appears – and the relationship turns building. short-term rentals (otherwise sour – boards should realize that Moreover, if the building doesn’t known as “illegal hotels”). The they don’t have to let it be; they appear open to other brokers, broker, Katherine McFarland, had have the power to make it better. n “then it becomes a fait accompli, and it’s not right,” says Ellen Kornfeld, a management executive at the Lovett Company. The arrangement “doesn’t allow for much competition,” which means sale prices may flatten out. Residents could also get the mistaken impression that the sale WHAT SETS US APART: won’t be approved if they don’t use Management has been our focus for over the broker who lives in the building 100 years – the one that everyone uses. We attract the Best Managers—and they “Somebody who is selling their stay with us, sometimes for decades Our Financial Analysts carefully consider your budget and investments Our Central Purchasing Power saves you money on everything from energy to insurance

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www.habitatmag.com january 2014 HABITAT 35 Visit sOurce guIde Online Habitat’s source guide reaches thousands of board decision-makers. the directory is a powerful and efficient search engine for the co-op and condo community, containing videos, PDFs and links to more information. all this exclusive data is available Free in a fun, interactive format.

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36 HABITAT january 2014 www.habitatmag.com special advertising section Source Guide | 2014 | cateGory index Accountants & Auditors Lobby and Hallway Design bollam, Sheedy, torani & co. LLP, cPas Falcon Engineering cesarano & Khan, cPas, Pc Forbes-Ergas Design associates czarnowski & beer, LLP robert cane architect, PLLc Kane & company, Pa Plumbing marin & montanye LLP calray gas heat corp. mindy Eisenberg-Stark, cPa, cFE Fred Smith Plumbing and heating newman, newman & Kaufman LLP Prisand, mellina, unterlack & co. LLP Property Management akam associates Architects/Engineers andrea bunis management cowley Engineering argo real Estate Falcon Engineering barton management Kipcon buchbinder & warren rand Engineering & architecture carlton management Attorneys century management balber Pickard maldonado & Van Der tuin, Pc Delkap management braverman greenspun Douglas Elliman Property management c. jaye berger Law offices Fairfield Properties gallet Dreyer & berkey, LLP FirstService residential ganfer and Shore, LLP gerard j. Picaso inc. hankin & mazel, PLLc hSc management Kagan Lubic Lepper Finkelstein & gold, LLP impact real Estate management norris mcLaughlin & marcus, Pa Kaled management Porzio, bromberg & newman, P.c. Lawrence Properties rosen Livingston & cholst, LLP Lovett group, the Schneider mitola, LLP majestic Property management Smith, buss & jacobs, LLP mark greenberg real Estate tane waterman & wurtzel, Pc matthew adam Properties wolf haldenstein adler Freeman & herz, LLP merlot management metro management Development Boilers midboro management calray gas heat corp. new bedford management Camera Surveillance Systems orsid realty academy mailbox co. Plymouth management group Chute Cleaning Pride Property management rudd realty chutemaster Environmental Stillman management Construction tudor realty Services mamais construction Veritas Property m anagement Consumer Services Reserve Studies time warner cable of nyc Falcon Engineering Electrical Submetering Kipcon Quadlogic controls Security Energy academy mailbox co. Falcon Engineering cambridge Security Services unitED mEtro Energy Steam Heating Systems Energy Auditors g.S. Dunham Falcon Engineering Storage Exterminators/Pest Control bargold Storage Systems team Pest control inc. Spaceguard wirecrafters Finance barrett capital advisors Telephone Intercom Systems academy mailbox co. First Funding of new york hudson Valley bank Water Cost Management meridian capital group alan rothschild/Vantage group ncb new york water management Fire Safety Water Tanks Fred Smith Plumbing and heating Fred Smith Plumbing and heating Insurance Water Treatment mackoul & associates Fred Smith Plumbing and heating Internet/Telecommunications/ Computer Software & Services ciraconnect Laundry Systems automatic industries hercules corporation hi-rise Laundry SEbco Laundry Systems wascomat

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www.habitatmag.com january 2014 HABITAT 45 source guide 11

46 HABITAT january 2014 www.habitatmag.com source guide 12

www.habitatmag.com january 2014 HABITAT 47 Ask the Attorney by robert d. tierman deadbeats & devils My condo in Brooklyn has two unit-owners who don’t pay their monthly maximum pressure on the unit-owner charges. One seems to be having financial problems, but we’re not Q and best assure that, if the case is sure about the other. Our property manager told us that we need to file a lien against the units, but I heard from somebody else that this could be very not resolved, the condo will be able expensive and we still might not get paid. We are not a big condo, so we don’t to recoup the amounts due and its want to waste money, but we also can’t afford to have some unit-owners who expenses from the foreclosure sale are not paying. What should we do? proceeds. If the value of the unit does Collecting arrears on condo units is problematic mainly because the not exceed the value of any first alenders holding first mortgages on condo units, as well as real estate taxing mortgage, then the condo’s task is authorities, have priorities over condos. That means that a condo will suffer far more complex because it has no the time and expense of filing and foreclosing upon its lien on a unit in default, ideal options. The condo must reach but can sell the unit at foreclosure sale only subject to, at the very least, what out to determine first hand precisely could be a very large first mortgage, plus real estate tax arrears, on the unit. If the amounts of those priority claims exceed or even approach the market value of the unit, then there will be little value left to entice a purchaser to pay anything for the unit. And that doesn’t include what is necessary to satisfy the arrears to the condo, as well as the legal and other fees and expenses that the condo incurred when it foreclosed. As an aside, a co-op does not have this problem because its claim to the proceeds of a foreclosure sale of an apartment has priority over a shareholder’s lender. This allows the co-op to sell the apartment at a foreclosure sale not subject to what is properly called the security interest – not the mortgage – of the lender. As another aside, the New Jersey legislature perceived at least some inequity for condos taking a back seat to lenders in 1996 by establishing a “super lien” of condos ahead of unit lenders for six months’ worth of arrears. But, given the time and expense that it takes for a condo to first mortgage lender and the taxing why the unit-owner is not paying and bring a unit foreclosure lawsuit to the authority) who have not yet caused what, if anything, the unit-owner is point of foreclosure sale, this provides the recording of judgments or liens willing to do. The condo also could little relief, or even leverage, to a against the unit. try to induce the unit-owner’s lender condo. If the value of the unit substantially to prosecute foreclosure proceedings The condo should file a lien against exceeds the amount of any first because a default to the condo is a the unit without delay, and indeed mortgage, about which the condo default to the lender even if the unit- the board is typically obligated to do can get a good sense by searching owner is making loan payments to the so under the condo’s bylaws. This the public records for a copy of any lender. The condo also could pursue is not very expensive, and, at the mortgage recorded against the unit, the foreclosure itself even if the loan very least, will establish the condo’s then the condo should proceed with on the unit is close to or exceeds the priority over creditors (other than the haste to foreclose. This will put value of the unit. Then, there is at

48 HABITAT january 2014 www.habitatmag.com Ask the Attorney by robert d. tierman

least hope that, in the foreseeable with the warning that, if it is respond to the co-op’s charges. This future, the condo could strip the unit- repeated, the co-op will consider was implicit in the Pullman case, owner of ownership and occupancy and vote upon a resolution to declare because the shareholder was notified of the unit, so that it can be sold to a the tenancy “undesirable” and thus of the shareholders’ meeting at which unit-owner willing and able to pay. terminate the lease; the co-op conducted the termination In a way that did not legitimately vote. At my co-op, we have a further the corporate purpose, i.e., But for board-only terminations, shareholder who is wreaking Q the co-op seemingly cannot just the co-op must make sure to properly havoc in the building, making nasty statements to staff and residents choose some meaningless conduct, invite the shareholder to attend alike, and loitering in the lobby. She like wearing a purple dress in public the meeting, with an attorney, and is quite unkempt, and we suspected areas, for objection; or present a defense before the vote. that her apartment was unclean In bad faith, i.e., the co-op should Indeed, even for terminations and cluttered. Then we had to enter not have ulterior reasons for acting, requiring shareholder approval, the apartment to repair a leak and like vindicating a personal grudge of I believe that the board should discovered that our worst fears were a board member. consider inviting the shareholder true. We don’t believe that we can There are at least two additional to make a presentation first to the ever get her under control. Is there considerations. The Pullman court board in advance of the board’s vote some way that we can kick her out? seemingly decided to defer to the to ask the shareholders to approve There are two main courses co-op to make the lease termination the termination. They should then Aof action to consider, each decision in part because the court meet again at the shareholders’ of which is potentially potent but was impressed that all shareholders meeting before their vote. not without possible pitfalls. The in attendance at a meeting If the co-op would like to avoid first is an “objectionable conduct” (constituting shareholders owning a shareholder vote (assuming termination of the offending three-quarters of the co-op’s shares) one is required), it could shareholder’s proprietary lease, voted in favor of the termination. forgo “objectionable conduct” following the 2002 New York State That shareholder vote occurred termination, and instead declare high court case of 40 West 67th because that co-op’s proprietary the shareholder in default of the Street v. Pullman. If available and lease demanded it. proprietary lease (including some done properly, this could lead to Most leases require only board house rules) and provide the eviction of the shareholder and (and not shareholder) vote for an shareholder with the standard 30 the sale of her apartment, with “objectionable conduct” termination, days to cure, in the absence of the proceeds first applied to any and a subsequent case of the well- which the co-op could terminate amounts due to the co-op, including respected New York Appellate the lease. One deficiency of this attorneys’ fees. Given the stakes to Division, First Department, Trump route, however, is that, under New the shareholder, however, the court Plaza Owners, Inc. v. Weitzner, held York State Real Property Actions indicated that courts must “exercise (though without discussion) that and Proceedings Law 753(4), even heightened vigilance” in examining this is good enough. I have some after the court awards the co-op whether the board’s action meets reservations about whether New legal possession of the apartment, the standards of the “Business York’s high court would agree, which the shareholder would have at Judgment Rule,” deemed applicable presents the vexing problem about least 10 days to cure the default to co-op board decision-making in whether a co-op considering an and retain possession. One further the ground-breaking case Matter of “objectionable conduct” termination consideration is that, in some cases, Levandusky v. One Fifth Ave. Apt. should seek shareholder approval, it might make sense for the co-op Corp. even if the lease does not require it. to proceed simultaneously under Simply put, a co-op can terminate This would eliminate the possibility both the default and “objectionable a shareholder’s proprietary lease of leaving the open to an conduct” provisions. by this route provided that the appealable issue that could go against The good news is that co-ops shareholder cannot establish that the the co-op after years of expensive have substantial power to respond, board acted: litigation. as they see fit, to nuisance and Outside the scope of its authority, The other consideration is that worse conduct by shareholders and i.e., the typical proprietary lease it is well accepted that the co-op others occupying or visiting their requires the co-op to send notice of must give the shareholder facing apartments. The cautionary note the “objectionable conduct” of the “objectionable conduct” termination is that the courts will hold co-ops shareholder, or those occupying or a full and fair opportunity, with the to high scrutiny in exercising those visiting the shareholder’s apartment, assistance of an attorney, to hear and powers. n

www.habitatmag.com january 2014 HABITAT 49 My turn

The Integrity of Ownership

live in an unusual condominium. situation. We consulted with lawyers. I Consisting of two gut-renovated They always said, “Well, if you were a buildings in central Harlem, the co-op, you could do something.” Not 50-unit property is in the city taking no for an answer, the board Department of Housing, Preservation, has been working to develop a policy and Development (HPD) portfolio for renting. It would possibly limit of affordable housing. It is designed rentals to between 10 and 15 percent for median-income residents. And, of the property at any one time, and it although we’re a condo, HPD rules would require the owner to live in the require the units to be owner- property for two or three years before occupied. That creates an interesting situation: we’re a condo – which generally does not have residency requirements – but we have a rule that is usually found in co-ops. The problem? We don’t have the enforcement powers of a co-op. I didn’t expect this kind of problem when I carol

moved into the building j .

in August of 2004. I ott was able to purchase the apartment through a lottery system, and joined a group of first- Valerie Hayes time homeowners who board member, Morningside Court, harlem all moved in mid- to late 2004. I got on the board the second he or she could rent it out. There year I was there. Many of us saw would also be a fee. that some of the units were bought We haven’t been able to get as investments – in our years there, approval of the plan (yet), but we we never met the owners, only the did manage to impose (with HPD’s renters. As new renters moved in, we blessing) a $1,000 monthly fee on realized we had no control over the any owner who rented. With common situation. I often thought, “We’re not a charges ranging from $300 to $800, dorm,” although that’s a fairly significant amount. it was beginning to seem like one, Since implementing the policy, we with transient tenants coming and have had about four apartments go going regularly. “What can we do?” on the market. That’s a positive sign. said the other board members. But we aren’t going to stop there. The problem was that stipulations We see this as an interim step. We and an agreement for a tax abatement hope to do a lot more. Our goal is to and other subsidies we were receiving do something so that the building is said that the condo had to be owner- managed and maintained properly, occupied. Residents had to submit and has the integrity of ownership. annual certified statements to HPD, And to do that, we’ve got to get swearing that they were owners. control over who lives here. It’s that We decided to try and change this simple. n

50 HABITAT january 2014 www.habitatmag.com case notes by richard siegler and dale J. degenshein

map bearing that date. hell on Wheels A year later, in April 2013, a docking station was installed. ay the city install bike share terminals in front of After receiving complaints from Cambridge, the DOT removed Myour building? That was the issue discussed in an approximately 16-foot section of the station that was directly Cambridge Owners Corp. v. New York City Department of in front of the building entrance. Transportation. no right to Install station The facts of the case The following month, Cambridge commenced the The Department of Transportation (DOT) decided to proceeding challenging DOT’s right to erect any bike station install a bike share station in front of 175 West 13th Street in in front of the building. The agency moved to dismiss. Its first Manhattan. This residential property is owned by Cambridge claim was that the co-op did not have standing to commence Owners Corp., a cooperative housing corporation, which the proceeding. The court explained that in order to establish brought a proceeding to challenge the decision; DOT then standing, Cambridge had to show that it “suffered an injury made a motion to dismiss the petition. in fact, distinct from that of the general Cambridge is a 20-story building with 137 public.” Citing another case, this court apartments. The “Citi Bike” program consists explained: “[P]ersons directly affected of 6,000 bicycles docked in more than 300 self- by a determination that would result in service share stations around the city. Members the diminished aesthetic, recreational, or of the public can rent the bikes from, and return financial value of an area, have standing to them to, any station in the system, which is open challenge the determination.” around the clock, throughout the year. The city The court determined that Cambridge had was legally required to provide a condensed standing because it demonstrated that it was network of bike share stations, so that users directly affected by the bike share station could easily obtain or return a bike. and that its injury was different from any that may have been suffered by the general The Back story public. The court specifically acknowledged The New York City Department of City that Cambridge – a cooperative corporation Planning performed a study before the launch of – comprised hundreds of residents who the bike share program. DOT also affirmed that lived in the building directly in front of the it undertook a multi-year public planning process a bicycle docking station bike share station, and that the residents to determine the location of the stations. It issued goes up. a greenwich claimed to be adversely affected by the a publication – NYC Bike Share, Designed by Village co-op cries foul. location of the station because of, among New Yorkers – explaining the process included other things, garbage accumulation, more than 150 public meetings, presentations, and increased traffic, and issues with emergency demonstrations, as well as more than 200 meetings with elected responders, all of which are different from those experienced officials, property owners, and other stakeholders. by the general public. DOT asserted that in determining individual station sizes, its The court also recognized that quality of life and aesthetic planners used a computer model to analyze surrounding land injuries had been recognized by the courts as a basis for use, population, tourism rates, subway turnstile counts, and standing. other data on transit use. The agency also claimed that it used newly available taxi GPS data on trip origins and destinations. Acted rationally It said many factors were used to make final decisions about DOT next argued that Cambridge’s claim must be dismissed where to place the docking stations, including requests and because it had the absolute right to promote, facilitate, and comments from the public, proximity to transit and other regulate travel on New York City streets and highways. destinations, distance from other bike share stations, and access However, if the city agency’s action is arbitrary and capricious, and proximity to bike lanes. It also considered whether the area contrary to law, or an abuse of discretion, the court may was well lit, its proximity to the corner, the amount of curb intervene to reverse the decision. lane, and inclusion of restricted parking lanes. It specifically Finally, the transportation department argued that its declined to install bike share stations in areas with bus stops, decision to install the docking station in front of Cambridge hydrants, driveways, and parking lanes that switched to driving was rational, i.e., it was not arbitrary, capricious, contrary lanes at specific times of the day. to law, or an abuse of discretion. The court noted, In or around February 2012, the DOT initiated an specifically, that the courts may not overturn a decision of environmental review of the program and its siting guidelines an administrative agency that has a rational basis, unless under the City Environmental Quality Review Act. The agency there was a demonstration that the action was arbitrary and affirmed that it planned to install the bike share station in front capricious. Citing an older case, the court explained: “[t] of Cambridge since at least April 27, 2012, as shown on a site he arbitrary or capricious test chiefly ‘relates to whether a www.habitatmag.com january 2014 HABITAT 51 particular action should have been taken or is justified... and whether the administrative action is without foundation in fact.’ Arbitrary action is without sound basis in reason and is generally taken without regard to facts.” Here, the court found the decision to install the docking station in front of Cambridge’s building fit squarely within DOT guidelines and could not be considered arbitrary or capricious. The agency affirmed that the area in front of Cambridge provided unrestricted public access; ensured maximum visibility; did not impede the use of any existing facilities; was not in a bus stop; was not in a lane that became a driving lane at certain times; and was not within a restricted area. Further, DOT established that it took valid safety concerns into consideration, including the way in which cars turn onto the intersection of West 13th Street and Seventh Avenue.

claims dismissed Cambridge asserted that the

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52 HABITAT january 2014 www.habitatmag.com bike share station should be removed because DOT failed to notify the local community board and the Landmarks Hankin & Mazel PllC Preservation Commission – the Proud to provide personal legal services to co-ops and agency responsible for identifying and condos, large and small, for over 20 years. designating landmarks and buildings in the city’s historic districts – of attorneys at law the location of the station prior to its installation. In making this claim, Cambridge relied on a DOT station map from March 2013 that was only Mark Hankin and Geoffrey R. Mazel, Partners a general map, and which specifically 7 Penn Plaza, Suite 904 • New York, NY 10001 stated “[t]his map is for illustrative 212-349-1668 • [email protected] purposes only. Station placements are neither exact nor final; locations are subject to change... .” In contrast, the bike share station was specifically identified as being in front of the Cambridge building on a map dated April 27, 2012. The co-op also asserted that DOT’s decision to install the dock station in front of the building violated the Americans with Disabilities Act, alleging that the station made the building inaccessible to disabled residents. The court first noted that DOT removed that portion of the station that was directly in front of the building entrance. Moreover, Cambridge failed to assert any specific disturbance. It did not allege that access to a curb ramp was disturbed, for example. The court concluded that DOT had established that it conducted a sufficient review, set guidelines, complied with environmental and other laws, and determined that placement of a bike share station in front of the building did not have a significant adverse impact.

The Takeaway The Citi Bike program, officially launched in May 2013, has been met with enormous controversy. The unofficial, anecdotal opinion of the authors is that people either love the program or hate it – there are very few who have a middle-of-the-road stance. In any event, although this case is not specifically about cooperative and condominium issues (notwithstanding the fact that the petitioner is a co-op), it is important. a Challenging Standard. It is apparent that Cambridge asserted good, solid, and extensive arguments to www.habitatmag.com january 2014 HABITAT 53 challenge the placement of bike share the requirements imposed, i.e., was the apparently complied with its own stations in front of its building. At action of DOT in installing a station guidelines, Cambridge could simply not the end of the day, however, it is very in front of their building arbitrary overcome its burden. difficult for a co-op or condo to meet and capricious? Where, as here, DOT We note that this is a trial-level case, that there are other cases pending, and that we do not know how appellate courts will treat the issue when it is presented to them. Think local. This case also reminds us that co-op and condo boards must be diligent about following local politics and familiarizing themselves with the issues under consideration by their local community boards. We find several situations where an item on a community board’s agenda is belatedly brought to a board’s attention, so that the building has to scramble to present its case. Often, the board is not advised of an item that – in its opinion – may affect its building, so that no director appears at a community board hearing to contest the issue. Boards and managing agents should keep abreast of local issues, all area so that they can identify projects of AFFORDABLE concern and provide timely comment Realty Services, Inc. EFFICIENT on actions for which a city agency or The Cooperative & Condominium Authority ™ a private organization has requested Full Management / Back Office Services permission. n ATTOrneYs 99 Tulip Avenue Floral Park, New York 11001 For Defendant: Department of 866-333-6182 www.aarsny.com Transportation For Plaintiff: Ganfer & Shore

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www.habitatmag.com january 2014 HABITAT 57 Academy Mail Box Co., Inc. stats “Stats” is a listing of important facts, figures, Academy Intercom Co., Inc. and statistics of concern to the co-op/condo world. it is subdivided into “building Loans,” which represents a sampling of cooperative Academy Engravers, LLC underlying mortgage refinancing deals; and “management transitions,” which includes a sampling of buildings that hired new Specializing in Apartment House Security Since 1948 management firms (takeover dates appear in parentheses). all data, covering the past three months, has been voluntarily submitted, and Ask how the omission of any professional from this section is no reflection on his or her business. Academy ▪ Custom / Standard Mail Boxes to have your item published in an upcoming can save you time issue, call (212) 505-2030 ext.3006, fax ▪ Entry Security Intercoms (212) 254-6795, or e-mail: jwu@habitatmag. and money! com. ▪ Access Control keY: (718) 539-1000 Engravings Br bedroom nA not available at www.academymailbox.com ▪ B bathroom press time www.academyintercom.com dr dining room MTnc monthly ▪ CCTV eIk eat-in kitchen maintenance www.academyengravers.com lr living room cc common charge 120-10 15th Ave., Queens, NY 11356 sf square feet re TAXes real estate OTM on the market taxes AUTHORIZED Management DEALER Featuring the GT Series, an www.aiphone.com entry security intercom ideal for apartment and office Transitions buildings. Mix and match modular components to Manhattan customize entrance panels or Morningside Heights www.auth-florence.com choose ready-made options! 3115 HDFC 35-unit co-op. Transition to: Veritas Property Management (11/1/13)

Academy Mailbox Ad_4.5 x 4.75.indd 1 12/15/2011 8:37:28 AM

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58 HABITAT january 2014 www.habitatmag.com stats ADVERTISER INDEX Academy Mail Box ...... 58 AKAM Associates ...... 32 All Area Realty Services ...... 54 Argo Real Estate ...... 33 central Harlem Automatic Industries ...... 8 Maple plaza 1919 Madison avenue Bargold Storage Systems ...... 30 155-unit co-op. Transition to: Halstead Braverman Greenspun ...... Cover 3 Management Company (11/1/13) Buchbinder & Warren ...... 54 BuildingsNY ...... 55 west Village Calray Gas Heat Corp...... 9 385 West 12th Street Condo Castle Oil ...... 11 12-unit condo. Transition to: Century Cesarano & Khan, CPAs ...... 53 Management Services (12/1/13) Chutemaster ...... 52 Crossword Puzzle, Sponsored by Braverman Greenspun ...... 64 Douglas Elliman Property Management ...... 35 Queens Fairfield Property Services ...... 23 FirstService Residential ...... 8 forest Hills G.S. Dunham ...... 5 10 Holder place Gerard J. Picaso Inc...... 15 44-unit co-op. Transition to: Mark Greenberg Real Estate (9/1/13) Habitat Ask the Experts ...... 61 Habitat Source Guide ...... 36-47 Halstead Management Company...... 2 rego Park Hankin & Mazel ...... 53 63-84 Saunders Street 120-unit co-op. Transition to: Majestic Hercules Corporation ...... 25 Property Management (8/1/13) Hudson Valley Bank ...... 13 Impact Real Estate Management ...... 27 JMPB Enterprises ...... 58 Kaled Management ...... 34 Building loans Kipcon ...... 13 Lauren & Chase Design Group ...... 24 3235 Cambridge Owners Lawrence Properties ...... 7 Riverdale, The Bronx Lovett Group, The ...... 53 77-unit co-op, 23% unsold shares Mackoul & Associates ...... 31 loan: $2.5 mil term: 10 years Majestic Property Management...... 29 rate: 3.9% closing: 10/1/13 line of credit: $500K Mark Greenberg Real Estate ...... 63 bank: Valley National Bank Matthew Adam Properties ...... 23 loan officer: Donald Seacrest Midboro Management ...... 52 building rep: Carl Borenstein, Veritas National Grid ...... 1 Property Management NCB ...... Cover 2 New York Water Management ...... 50 20 east 9th Street Corp. Newman, Newman & Kaufman ...... 50 east Village, Manhattan Norris McLaughlin & Marcus ...... 27 324-unit co-op, 0% unsold shares Orsid Realty ...... 15 loan: $3 mil term: 79 months Plymouth Management Group ...... 35 rate: 4.59% closing: 10/2/13 Pride Property Management ...... 12 bank: NCB loan officer: Mindy Goldstein Quadlogic Controls ...... 31 building rep: Orsid Realty Corp. Rand Engineering & Architecture ...... 14 Robert Cane Architect ...... 7 Van Buren Owners Rudd Realty ...... 28, 63 102-21 63rd Road Schneider Mitola ...... 14 Rego park, Queens Time Warner Cable ...... Cover 4 85-unit co-op, 16% unsold shares Tudor Realty Services ...... 30 loan: $3 mil term: 10 years Vantage Group ...... 12 rate: 4.58% closing: 10/15/13 Wascomat ...... 29 line of credit: $300K Wirecrafters ...... 57 bank: NCB loan officer: Edward Howe Wolf Haldenstein Adler Freeman & Herz ...... 54 building rep: Vision Enterprises

www.habitatmag.com january 2014 HABITAT 59 FroM the editor | by tom SotEr

The Specialist our lawyer was dragging his feet. weeks. He was in court, we were told; he’s on a conference He had been with us for about four or five years. call; we just missed him. The excuses became as empty Although he is a sole practitioner, he had always seemed as a politician’s promises. When we finally reached our good for what we needed. He answered our questions attorney, he said his specialist lawyer was in Europe for a in a no-nonsense fashion, drafted letters when we week; he’d talk to us on his return. (infrequently) needed them, and handled closings (which is That’s when we thought, “Well, we’re happy with our where he made most of his money off us, as his hourly rate lawyer on everyday matters. So, why don’t we keep him was very low). to handle that and do Yes, the small what he has been doing firm was for us. Our – hunt for our own previous lawyers had specialist attorney?” On all been with large researching the matter, firms, and although we found that more and those relationships had more small and mid- started off well enough, sized co-ops and condos they eventually went were bypassing their south – because of regular counsel on certain us, or the lawyers, or matters for a specialist circumstances, I’ll never in one area of the law know which. to come in and handle a In one case, we specific case. This is a thought our lawyer was common practice with charging too much. co-ops employing tax When we complained certiorari lawyers, for to him, he said he’d example, who just handle look into it – and then tax challenge cases. charged us for the Sometimes the regular call complaining about being overcharged. In another counsel will suggest hiring a specialist; other times, he will case, a board member spoke sternly to a receptionist at just bless it and say, “Go ahead. He is better equipped for the lawyer’s office. I later got a call from the attorney this than I am.” At yet other times, he doesn’t even know complaining that he had found the receptionist sobbing about it. Fees can be an issue: the hired gun may charge in the bathroom because of the “harsh” language my $300 an hour and the regular counsel gets an additional colleague had used in his conversation with her. (He had $50 fee because he’s the house attorney. simply made a stern-sounding comment about the firm – Attorney Bruce Cholst, a partner in Rosen Livingston which she apparently took to mean her.) & Cholst, calls it an unusual practice, but nonetheless, he Now we needed our current attorney to step up to the has served as a specialist lawyer himself. In such cases, he plate and deal with a situation that had developed. We were thinks there’s often an ulterior motive. “Sometimes, I think unhappy with his approach, however. For two months, we they are trying me out” as a replacement for their current had repeatedly called our lawyer asking him to take some lawyer, he explains. action on a pending matter. He said it would be better if In fact, it’s really a no-brainer. As management executive we got a counsellor who specialized in cases like ours; he Ellen Kornfeld of the Lovett Company says: “I represent said he had one; then he said she had died; then he said boards that frequently hire these specialist attorneys and he had found another, but we would have to communicate it’s really quite logical: you wouldn’t hire a civil lawyer for with him through our lawyer, who would act as liaison. a criminal case, nor would you hire a criminal lawyer to When we said that was unacceptable and we’d have to meet handle a co-op matter.” with the potential lawyer first, he said he would set up a Unless, God forbid, you were under indictment. But meeting. Then we played phone tag with our lawyer for that’s another story. n

60 HABITAT january 2014 www.habitatmag.com Ask The Experts

FINANCE WATER LEAKS BUILDING RESTORATION

Pat Niland George Doukas John Tsampas FIRST FUNDING OF NEW YORK CGI NORTHEAST SKYLINE RESTORATION

LEGAL LAUNDRY

Robert Braverman Bob & Denise Savino BRAVERMAN GREENSPUN AUTOMATIC INDUSTRIES What’s Your Question? Get the answers to your most important co-op and condo board questions when you check out Habitat’s online Ask the Experts video series. Learn all the basics of NYC co-op and condo problem-solving, with straight talk and expertise from heavy hitters of leading companies. Our experts will explain a wide range of co-op- and condo-related challenges through succinct and insightful videos, while offering practical solutions and products that can answer almost any question and solve any problem.

Find your answers today at: www.habitatmag.com

WANT TO JOIN OUR PANEL OF EXPERTS? Please call: Advertising Director, Stephen Hanks at 212-505-2030 ext. 3003 or email [email protected] www.habitatmag.com january 2014 HABITAT 61 Projects Around Town

spotlight on reducing disruption paint: “You could have it completely Briar Oaks, While that work was crucial to abated with lead scarification, which eliminate leaks, the board members is the most costly, or do peel-away.” 4525 & 4555 also decided to kill three birds Peel-away is a process in which a Henry Hudson Parkway with one stone. As long as they had chemical paste is spread over areas It was no surprise that the board at contractors and scaffolding on the containing lead or lead paint. Special Briar Oaks, a Bronx co-op, proposed property, why not renovate the 184 laminated paper then covers the replacing the railings surrounding terraces, a long-discussed dream? paste while the paint dissolves. The the roof. What is surprising is that it With a Local Law 11 inspection paste and the dissolved paint are took them so long. They had actually of the exterior façade due by 2015, removed with the paper, and the been installed when the 145-unit, the renovation could be done at the area is washed clean. At Briar Oaks, two-building property had been same time as the other work, thereby 113 terraces needed the peel-away built in 1953. By 2011, the Riverdale reducing disruption to shareholders. process on the floors, curbs, and cooperative was facing fasciae. a dire situation: the railings’ poor condition finding funds was causing water The board decided that to infiltrate into the assessing shareholders apartments. “They were over the course of a year separating from the to pay for the project cement [of the roof],” would be an unnecessary explains board president financial burden. Instead, Mary Ann Dowling. the co-op took out a “We needed to seal off second mortgage – at an the water.” even better rate than its The problems didn’t first. To help repay the end there. According second mortgage within to project manager five years, the board set Albelisa Kemp of up a “sinking fund” line Rand Engineering item in the 2014 budget. & Architecture, the This sets aside funds building also needed for when the second to install a concrete mortgage matures. “We band running along the felt this would minimize perimeter of the roof, the impact on our where the new railings shareholders,” Dowling would be attached. says. New anchors had to be incorporated After the job began, however, the And to ensure that the work was into the concrete deck to serve the project hit rough waters. Work on the finished in a timely manner, the safety tie-off lines for any future terraces became more complicated board did not pay the contractor repair programs. Kemp says this was when asbestos was found in one. It directly, but instead set up an necessary “due to the roof being flat got worse: they soon discovered that escrow account to hold the project without parapet walls.” some of the terraces contained lead funds. The building would pay the Adds Jamey Ehrman, project paint. “We lost several weeks [in contractor only after the engineer engineer for Rand: “The old railings trying] to determine how we were attested that the work up to that point were hollow and anchored into going to handle it,” says Dowling. had been properly completed. the roof of the spandrel. The new The entire project, scheduled for Despite the setbacks, there railings are solid posts and are completion in November, is now has been little grousing from surface bonded to the spandrel. By estimated to be done in May 2014. shareholders. In fact, an easygoing eliminating the hollow-tube aspect, Board members grappled with the and tolerant atmosphere is the norm a major source of water infiltration issue of ameliorating the lead-paint at Briar Oaks, says Dowling, who [would be] eliminated.” problem while remaining within notes that the co-op contains young budget. Ehrman explains there are singles and couples as well as older generally two ways to remove lead folks who have been there since

62 HABITAT january 2014 www.habitatmag.com Projects Around Town

inception. “It’s a mixture,” she says with evident pride. “It’s a real community.” – Kathryn Farrell

neIgHBOrHOOd • Riverdale, Bronx PrOJecT • Railing replacement on two building roofs • Installation of concrete band along roof perimeter • Renovation of 184 terraces InVesTMenT $2,370,650.80 PArTIcIPAnTs • Skyline Restoration • albelisa Kemp, project manager, and Jamey ehrman, project engineer, Rand Engineering & Architecture • Marshall Kanter and David Guerrero, Garthchester Realty • Mary ann Dowling, board president MANAGE SMART $AVE GREEN Rudd Realty Management is the only property management fi rm to offer RECSS OUR GREEN ENERGY INITIATIVE saving our cooperative and condominium properties tens of thousands of dollars.

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RUDD REALTY MANAGEMENT 641 Lexington Avenue, 10th Floor, New York, NY10022 212.319.5000 • [email protected] • www. ruddrealty.com

www.habitatmag.com january 2014 HABITAT 63 a Socialist, a Zebra & RS Sponsored by as the old year gives way to the new, we offer more (we hope) intriguing clues to puzzle over as you take a break from board duties. good luck! Across 1 2 3 4 5 67

1. Pun genres 89 10 11 (jumble) - partner in a top condo and co- 12 13 14 op law firm 15 5. Short lengthy 16 17 18 lunches? 8. Have a mortgage, 19 20 e.g. 21 22 23 10. Fix an election, 24 say 12. "Your space, 25 26 27 28 29 30 your style, your 31 32 33 home..." would be one 34 35 36 14. NYC Council has lowered this for co-op/condo 37 38 39

properties (two 40 words) 41 42 15. Company that owns and operates for-profit real estate (acronym) 34. Two different the Allman 24. Restraints, often 16. Type of horror movies, one Brothers, for financial apartment recently with Ray Milland, example 25. Portion of purchased by had this title Leonardo DiCaprio 6. American money 35. Restore Socialist 26. Forgot the 18. It makes inferior responsible for wood look good 36. Zebra you don't umbrella result find in any zoo publishing autobio 19. Leading lady in of Malcolm X 27. Environmental 37. Largest co-op essential "Man of Steel," first 7. What Standing name housing 28. Parisian gold development in the Bull never did 20. Lease in world (2 words) 9. Give up a claim 29. Horror writer London 39. It's the Pearl in 11. Preparing (3 30. Offer type from 21. Shade FDR's speech words) stingy buyers 23. "She's so vain" 41. Follow logically 13. Brooklyn 32. He sings with celeb who sold her Borough Hall Beyonce in "Dance co-op recently 42. Banksy's for You" profession? column style 25. John Adams is 15. Initials of 33. TCM's sister on its back Down longtime "Case channel 27. Bed, bath or Notes" columnist 1. Entrance 36. Judge Judy living 17. Dorothy's wear 2. In a fashionable 29. Architect's auntie way 38. He was an creation 20. English "Inc." Uncle and an 3. Word after cutie 31. Apartment epithet or sweetie 22. It's a strong tenant point for the Donald 40. First word of a 4. Bank paper 33. As well Pitt movie 5. Linkin Park and For solution to puzzle: http://bit.ly/janpuzzle

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