URGENT MEMO TO MEMBERS
From Mary Ann Rothman, Executive Director
May 9, 2012
PROPERTY TAX ABATEMENT EXTENDER LEGISLATION INTRODUCED IN ASSEMBLY (A.10071) & SENATE (S.7091)
Assembly Speaker Sheldon Silver has introduced A.10071 to extend the property tax abatement for home owners in New York City cooperatives and condominiums to June 30, 2016. Senator Martin Golden has introduced necessary companion legislation– S. 7091 in the State Senate.
For the abatement program to be continued seamlessly into the tax bills for July, 2012, A.10071/S.7091 will have to have been signed into law by the beginning of June, when the NYC Department of Finance begins preparing our tax bills.
TAKE ACTION TODAY IN SUPPORT OF THE EXTENDER
YOUR help is urgently needed to urge your Albany legislators to pass this vital legislation at once. Turn the page for sample letters and instructions on finding your lawmaker. Send a succinct e-mail message urging swift passage of the appropriate bill and follow up with your version of the sample letters (see links below).
TIME IS OF THE ESSENCE!
* * * * * * A Brief History of the Abatement Program
The Action Committee for Reasonable Real Estate Taxes was founded in 1990to work for fair and equitable property taxes for all New York City taxpayers.
*In 1993, a blue-ribbon commission appointed by Mayor Dinkins acknowledged that homeowners in New York City cooperatives and condominiumspay more than their fair share of property taxes.
*In 1996, Mayor Giuliani and the City Council together called for tax reform. A three-year property tax abatement was instituted for homeowners in cooperatives and condominiums, and the City was to produce a long term plan for tax fairness.
*In August, 1999, September 2001, May 2004 and June 2008 the abatement program was extended for two, then three then four years (twice) until June 30, 2012. In 2004 and 2008, extender legislation was passed early enough to provide for a seamless transition (prior extenders were not signed into law until after the start of the fiscal year, so full taxes were collected in July and October, with adjustments made on January and April bills).
With an outpouring of support for A.10071/S.7091, the Action Committee hopes for swift passage of this important extender legislation.
Senator Martin Golden of Brooklyn introduced S.7091 on Friday, April 27, 2012. His legislation calls for a four year extender of the property tax abatement for home owners in New York City cooperatives and condominium to run through June 30, 2016. His legislation further mandates that the City develop the long awaited plan for tax fairness by February of 2016. We are optimistic that a companion bill will soon be introduced in the Assembly and that the two will be passed and signed into law prior to the time when the Department of Finance prepares property tax bills for July 1st payment. Unless there is an abatement program in place at that time, DOF must bill at the full property tax!!!
If Senator Golden represents you, please thank him for championing this important issue. If he is not, please ask your own State Senator to support S. 7091. Explain how vital the property tax abatement is to your cooperative or condominium and the individual home owners who live there.
SENATOR GOLDEN, WE THANK YOU FOR YOUR LEADERSHIP!
BENCHMARKING REMINDER
2011 DATA IS DUE ON MAY 1st
If your New York City building is 50,000 square feet or larger according to the Department of Finance, then you are responsible for annual Bench marking. Information is due on May 1st. Last year, in the first year, there was leniency. This year, fines will be levied against delinquents.
Please note:
That your Benchmarking square footage will likely be different from (and greater than) the Department of Finance figures as all parts of the building must be measured.
Con Edison will send customers’ data for up to 24 months electronically. The cost is $102.50. To be sure that the information arrives in time for the May 1st filing deadline, Con Ed must receive your request and your payment by April 11th.
National grid will send customers’ data electronically at no cost. To be sure that the information arrives in time for the May 1st filing deadline, National Grid must receive your request by April 20th.
This year, for the first time, water use will be recorded in the bench marking. The NYC Department Environmental Protection will forward this information upon receiving a request to do so from the building.
Finally, when data is entered into Portfolio Manager, it requires 24 hours to update its files, therefore to meet the May 1st deadline for submitting your information, all information must be entered by April 30th.
The Real Estate Board of New York (REBNY) recently conducted a detailed class on this important topic. A video of the class can be viewed on the REBNY website.
URGENT PROPERTY TAX FAIRNESS ALERT
On Thursday, January 19, 2012, the New York City tentative tax assessments for fiscal year 2012-2013, which will begin on July 1st were made public. Increases averaged more than 4% citywide with some buildings increases in excess of 30%.
The ever-increasing property tax burden makes it all the more urgent that the long-established property tax abatement program for qualifying home owners in NYC cooperatives and condominiums be extended beyond its June 30, 2012 sunset date.
Benchmarking Information and Resources
Local Law 84
1. Date for Penalties: While compliance with Local Law 84, Benchmarking, was due on May 1, 2011, the City will accept the 2010 Benchmarking Compliance Report up to December 31, 2011 without the issuance of a penalty.
2. Warning Letter: A warning letter was sent to all buildings that did not comply by August 1, 2011. If you received this letter and believe you have benchmarked it could be for the following reasons:
a. You benchmarked after August 1. If you correctly entered your borough, block and lot number (BBL) in Portfolio Manager’s Notes field, and you have a confirmation email from the EPA, then you are in compliance and there is nothing further to do.
b. The BBL was entered inaccurately or not entered at all. If you benchmarked before August 1, please check the confirmation email you received to ensure the BBL entered is correct. If the BBL is inaccurate, then simply enter the BBL correctly and resubmit the report, as you did initially, by 12/31/11. (See instructions on how to enter the BBL)
3. Benchmarking Help Center: A hotline is available to answer general benchmarking questions and assist with the use of Portfolio Manager. It can be accessed Tuesdays and Thursdays from 10am-5pm and Fridays from 10am-2pm, by dialing 311 or 212-442-7901. If the Help Center is not open, leave a message and they will return your call. This resource has been made available through a partnership between The City University of New York (CUNY), New York State Energy Research and Development Authority (NYSERDA), and the City of New York.
4. Benchmarking Training: The Association for Energy Affordability is offering in person training on the Portfolio Manager tool. The training also covers how to comply with Local Law 84. For class dates and to register visit their website.
5. Updates on the City’s Website: Please regularly visit the Greener, Greater Buildings Plan website for more information and continual updates on Local Law 84: www.nyc.gov/GGBP
CITY MANDATES PHASE OUT OF #6 OIL
Starting in July 2012 the City of New York will not be renewing any triennial permits for boilers that use number 6 oil. The City would like those buildings to switch to natural gas if possible. When it is not economically or geographically possible, affected buildings must switch to #4 oil (which must be phased out by 2030) or #2 oil. In an effort to encourage as many buildings as possible to switch to natural gas, the City has compiled the list that follows of 500 building currently burning #6 or #4 oil that are located near a gas main making it possible at very little cost or no cost for the utility to bring a natural gas connection to the wall of the building. All work inside the building is at building expense. Note that natural gas presently costs much less than oil.
NYC BUILDINGS OF 50,000 SQUARE FEET OR MORE ARE REQUIRED TO COMPLETE BENCHMARKING FORMS BY AUGUST 1ST
Benchmarking Information and Resources
1. Date for Penalties: The City will accept the 2010 Benchmarking Compliance Report up to August 1, 2011 without the issuance of any penalty. Failure to benchmark will result in a building violation and a penalty of $500. Continued failure to benchmark will result in an additional penalty of $500 each quarter.
2. Benchmarking Hotline: A hotline is available to answer general benchmarking questions and about the use of Portfolio Manager. It can be accessed Monday through Friday, 10:00am-4:00pm, by dialing 311 or 212-442-7901. This resource has been made available through a partnership between the City University of New York (CUNY), New York State Energy Research and Development Authority (NYSERDA), and the City of New York.
3. Benchmarking Training: The Association for Energy Affordability is offering the last in-person training on the Portfolio Manager tool Tuesday, July 26th. The training also covers how to comply with Local Law 84. To register for the class visit their website: http://www.aeanyc.org/site/c.dhJJJTOzFoH/b.6441573/k.5FCE/Benchmarking_Training.htm
4. Updates on the City’s Website: Please visit the Greener, Greater Buildings Plan website for more information on Local Law 84: http://www.nyc.gov/GGBP
5. Presentations on the Greener, Greater Buildings Plan: The Urban Green Council is providing free presentations on New York’s four new energy efficiency laws. To book a presentation, go to: http://www.urbangreencouncil.org/education/ggbp-education/
Energy Benchmarking Grace Period
Issued Until August 1st
At the NYC Dept. of Buildings hearing on proposed rule amendments to Local Law 84, held on March 21, 2011, there were numerous requests for an extension of the energy benchmarking deadline of May 1, 2011. The city has responded favorably to those requests.
While the official deadline is still May 1, the city is allowing a three-month grace period before it will issue violations for non-compliance.
However, experts advise buildings not to put off their compliance efforts:
Apply for rebates and subsidies now, while they last.
Score high, to bypass energy audits and retro-commissioning later.
Know your score sooner, to avoid backlogs and to give your building an edge in the marketplace.
Last summer the Federal Housing Finance Agency (FHFA) which regulates the institutions of the secondary market such as FANNIE MAE and FREDDIE MAC, issued a proposed Guidance which would have prohibited these institutions from purchasing loans where a transfer fee is in place. This provoked an outcry nationwide from supporters of cooperatives, condominiums and home owner associations, where transfer fees go back to the community to help maintain the housing, etc.
FHFA received more than 4000 comments on this proposed Guidance, the vast majority in opposition to this unreasonable attach on transfer fees that benefit the community. Many of these comments were sent by CNYC members in response to our request. Other member buildings sent information on their own transfer fees, enabling CNYC to compile a survey of transfer fee arrangements in more than 400 New York cooperatives and condominiums; this survey was included in the Comments to FHFA.
Today, February 1, 2011, the FHFA sent a prpopsed runt to the Federal Register to begin formal rulemaking on private transfer fees. The proposed rule would exclude private transfer fees paid to homeowner associations, condomiums, cooperatives and certain tax esempt organizations that yse private transfer fee proceeds to benefit the property. (see linksto full FHFA notice and to proposed rule).
CNYC thanks all the members who helped make this imporant turn-around possible.
IMPORTANT FINANCING ISSUE FOR CONDOMINIUMS
The Federal Housing Agency insures lenders against defaults. FHA recently implemented a re-certification requirement for all condominiums that were granted Project Approval prior to 2008. Project approval expedites loans for the purchase of individual units within the condominium. An expired FHA Project Approval can have a negative effect on the availability of credit and, therefore, the marketability/price of units for sale in your development.
In that event, FHA insured loan products would not be available to your condominium. Individuals purchasing units would not be able to get a FHA mortgage, reducing the buyer pool. Further, without FHA Project Approval, FHA loan products for refinance, debt consolidation and reverse mortgages would not be available for qualified unit owners in your development.
Today’s FHA insured loan requires full documentation of the borrower’s credit for each individual loan, e.g., the borrower’s tax returns are verified with the IRS. Together with other requirements such as a stable work history and clear credit, FHA requires a high level of due diligence be completed by the lender before insuring the loan, allaying concerns regarding the creditworthiness of the borrower.
Effective February 1, 2010, FHA will only insure loans in condominiums that have Project Approval. Re-certification requires compliance with the guidelines published under HUD Mortgagee Letter 2009-46B. Published on November 6, 2009, this guidance established new standards for Project Approval eligibility that include: budget reserves, percentage commercial space, investor ownership, right of first refusal, insurance, delinquency, pending litigation and more. The process is more onerous for condominiums originally certified prior to the year 2008 Consult your property manager and your attorney to ascertain whether your condominium needs to apply for re-certification.
Green” Your Super with 32BJ
Green Buildings are a reality, not some far off future concept to be pondered later. More and more CNYC members expect their building to be using the latest green strategies to reduce waste and pollution and maintain a high quality indoor environment. In 2011 City law requires buildings of 50,000 square feet and more to start ‘benchmarking’ their energy and utility use.. And utility costs continue to rise, demanding greater efficiencies to hold down costs; the best way to control these costs involves employing the latest green strategies.
A Fair Contract with Significant Innovations
At midnight on Tuesday, April 20, 2010, Michael Fishman, president of Local 32BJ of the Building Service Employees International Union, and Howard Rothschild, president of the Realty Advisory Board on Labor Relations, Inc. shook hands on a four year contract agreement that includes pay increases of 2.33% per year. for 32BJ’s 3000 residential apartment building workers in Manhattan, Brooklyn, Queens and Staten Island.
Pledged Savings in Health Costs
The contract further provides that the Health Fund, which is jointly administered by trustees from the Union and from the RAB, will commission a study to help implement annual savings of $70,000,000 or 10% of the Health Plan’s current average annual expenditures beginning no later than January 1, 2012.
Employer Contributions Firmly Capped
Caps on employer contributions to the Health and Pension plans during the life of this contract ensure that if, as was the case in 2004, the reserves of either Health or Pension plans should become depleted, employers will not be responsible to make any additional contributions (the opposite was the case in 2004 when employers agreed to substantial, unexpected contributions ($2400 per employee) to rescue the then failing health fund. This dramatic change in the paradigm ensures employers of certainty in their budgeting for labor during the term of this contract. All parties are optimistic that no problems will arise, and that the anticipated economies will be easily achieved.
Reduction In Force
In addition, in recognition of the length and the extent of the economic downturn an important phrase has been added to the contract provision regarding Reduction In Force, enabling a building to reduce staff upon submitting proof of financial hardship, provided that no additional work is added to the job descriptions of remaining employees.
A Fair Agreement
The building service workers who are members of Local 32BJ are the best paid service workers in the world; they also have excellent benefits and training opportunities. And this is as it should be. These workers keep our buildings safe and clean. They are part of the community that is our cooperative or condominium. They watch our children grow up; they help us daily in many ways largae and small. We are all pleased that the current negotiation has produced a contract that is fair to one and all.
Pattern Agreement The RAB negotiates a pattern agreement, which each of its residential members with 32BJ employees is then invited to sign, Copies of the agreement will shortly be sent to your building (or your managing agent). If your cooperative or condominium has six or more employees, your superintendent is a Resident Manager, subject to an agreement that expires June 20th.
WARNING: BE ALERT TO A NEW SCAM
Do not be taken in by the clever marketing ploy of a lead inspection company that may send to your buiding a very official looking notice advising you that you are required to perform inspections for lead paint.
Note that this is an inspection that building staff can perform in your public areas if your building was built prior to 1978, and that cooperatives and condominiums do NOT have any responsibility for inspecting apartments occupied by shareholders or unit owners. While professional inspections may be appropriate in certain situations (in which case, you will seek out a known, reliable company), the law permits inspections by building staff.
CNYC
TESTIMONY ON
"GREEN BILLS"
The
City of New
York is deeply
committed to
energy conservation,
a goal which
CNYC shares.
However, some
of the requirements
which the City
seeks to impose
appear to CNYC
to be costly
to our members.
On June 26,
2009, CNYC
testified on
four proposed
bills, supporting
two and challenging
two on the
grounds of
cost and of
imposing decisions
upon boards
of cooperatives
and condominiums
.which should
have the right
to set priorities
for their own
buildings.
CNYC always
prefers incentives
to mandates
and expressed
this view in
its testimony.
During much of
last fall and
spring, the economic
crisis was aggravated
by the reluctance
of lenders to
make money available
for the purchase
of homes, including
cooperatives
and condominiums.
Happily, a number
of lenders are
now making loans
available, but
they are hesitant
to lend for the
purchase of apartments
in recently converted
buildings or
those with a
significant sponsor
presence, since
they want to
be sure that
the loans will
qualify for purchase
by institutions
of the secondary
market.
Building Boards Hit by Downturn, featuring CNYC President Marc Luxemburg (courtesy The Real Deal)
Click on video to play
2009 Comparative Study
of Building Operating Costs
now Available
The 2009 Comparative Study
of Building Operating Costs has been mailed to CNYC members, and is also available for purchase in the CNYC office, 250 West 57th Street, Suite 730, New York, NY 10107-0730. The price is $25.
RECYCLE CLOTHING AND OTHER TEXTILES
IN YOUR BUILDING
Upper West Side Recycling and Wearable Collections will organize and publicize your textile drive. We’ll also provide a portable clothing bin (5 x 4 x 2 1/2) if your building has over 100 apartments; if it has less than 90 apartments we’ll give you a rack with large bags. Residents won’t have to haul their clothing and other textiles to a collection site—or worse—dump them in the trash. Wearable collections accepts clean clothing (wearable or unwearable), shoes, pocketbooks, curtains, sheets, blankets, comforters, and towels. Carpeting is not accepted. By participating you can do some spring or fall cleaning, keep textiles out of our landfills and recycle in an easy, convenient way.
We also recycle textiles in churches, schools, and other organizations. We also recycle textiles in residential buildings if your members are interested. Pickups are in Manhattan, and Wearable Collections will go to the outer boroughs for large quantities. For further information contact:
CNYC and the Real Estate Board
of New York have published a new guide designed to explain
the anti-discrimination requirements that all Boards must
follow. Included are recommendations on how a Board should
conduct the application process.
The Gallery is a special section of
this website dedicated to displaying newsletters provided
by our member buildings, and to giving recognition for all
the hard work that goes into creating them.
