Publication Date: Summer 2000
RPIE FILING REQUIREMENTS
Commissioner of Finance Andrew S. Eristoff has extended the time for filing
Real Property Income and Expense (RPIE) Forms which were due on September
1, 2000. As a result of this extension, RPIE 1999 forms can be postmarked
by September 15, 2000 and still be accepted as timely. Forms should be
Department of Finance
25Elm Place, 5th Floor
Brooklyn, NY 11201
The Department of Finance has also changed the RPIE requirements this
year, instituting the most significant changes since the program began
in 1986. The primary purposes for the changes were to reduce the time
and effort required for compliance and to facilitate development of further
efficiencies, such as electronic filing. The modifications make it unnecessary
for purely residential cooperatives to file these forms; nor do buildings
with only garage space or less than 1000 square feet of non-residential
space need to file.
Your accountant or managing agent has probably received the RPIE 1999
forms for your cooperative and filed them for you. If you file your own
RPIE Form, the Department of Finance offers you many opportunities to
obtain the form and get help completing it. Download instructions and
forms from the Department of Finance website www.nyc.gov/finance,
or call the Department's Tax Fax Service (718) 935-6114 from a phone connected
to a fax and have the forms and instructions faxed to you immediately
by selecting document code #351 as you follow the automated instructions.
You can have the forms mailed to you by calling Taxpayer Assistance at
(718) 935-6000, or learn from that number the location of your Borough
Assessment Office, where you can pick up a form in person. For answers
to questions these forms may raise, call the Property Division at 212
669-4313 or send e-mail using the RPIE contact form on the DOF website.
In the past, some purely residential cooperatives have preferred to err
on the side of caution by filing RPIE Forms. This is not necessary. To
reassure cooperatives which may question whether they should submit the
RPIE, the Department of Finance has posted on its website the addresses
and block and lot numbers of the compliance status of cooperatives throughout
GOVERNOR SIGNS CLASS SHARE
NOW CITY TAX RATES CAN BE SET
Governor Pataki has signed into law S8029/A11340, which provides for a
2% cap on increase in tax share for the four property classes in New York
City. Designed to protect the single family homeowners in Class 1 and
the utilities in Class 3, this bill has little significant impact on multiple
dwellings in Class 2 (which includes cooperatives and condominiums). However,
until it was passed, the City Council was powerless to establish tax rates
for fiscal 2001. For this reason, property tax bills that were sent out
in June for payment on July 1st, were calculated based on this year's
assessment and last year's rate, with the promise that adjustments will
be reflected on the January tax bill.
Governor Pataki has signed into law S8029/A11340, which provides for
a 2% cap on increase in tax share for the four property classes in New
York City. Designed to protect the single family homeowners in Class 1
and the utilities in Class 3, this bill has little significant impact
on multiple dwellings in Class 2 (which includes cooperatives and condominiums).
However, until it was passed, the City Council was powerless to establish
tax rates for fiscal 2001. For this reason, property tax bills that were
sent out in June for payment on July 1st, were calculated based on this
year's assessment and last year's rate, with the promise that adjustments
will be reflected on the January tax bill.
COMPARATIVE STUDY OF OPERATING
The Comparative Study of 1999 Operating Costs is being prepared. Thanks
to the cooperation of CNYC members and accountants who have provided financial
statements, data from approximately 700 cooperatives and condominiums
will be included. Once ready, the Comparative Study will be sent to all
CNYC member cooperatives and condominiums and professionals affiliated
with CNYC. This annual analysis provides a framework to help you decide
if your own building is operating economically and efficiently by studying
the various costs of operating a building. Code numbers are used to identify
the participants, while preserving their anonymity.
The Comparative Study analyzes all data on a per-room basis, beginning
with the current assessment and mortgage figures for participating buildings
as well as the maintenance cost. It then lists amounts spent per room
on wages, fuel, utilities, repairs and maintenance, insurance, management
costs, admini-strative costs, water & sewer fees, property tax, and debt
service. When possible, elevator maintenance and legal and accounting
costs are each listed separately. The Study also presents summary statistics,
calculating the averages and medians for each item, and the average portion
of total operating budget devoted to each.
CNYC plans to close the 1999 Comparative Study by the end of September
so as to send it to members in time to help with the preparation of their
2001 budgets. To have your financial data included in the Study, please
quickly forward your annual financial statement to CNYC at 250 West 57th Street, NYC 10023-2142. If this is the first time that you will be
participating in the Comparative Study, a room count for your building
will be very helpful.
When the Study is sent to members and subscribers, those that have contributed
are advised of their code numbers so that they can find their own statistic.
Each CNYC member building receives its own copy of the Comparative Study.
Additional copies can be purchased from CNYC for $5.
GARAGE TAX MODIFICATION LEVELS
THE PLAYING FIELD
CNYC thanks Assembly member Denny Farrell and State Senator Guy Velella
who sponsored legislation that was passed this year bringing into line
the taxes paid on garage spaces by all homeowners in cooperatives and
condominiums who garage their vehicles in the buildings where they live
whether the garage is operated by the building or by an independent company.
This amendment was necessary to cure a flaw in legislation passed in 1997
to recognize that homeowners should not pay commercial-type taxes when
garaging their cars at their homes. The law becomes effective in October,
2000. It is beneficial to the homeowners in any cooperative or condominium
with a garage run by a concessionaire who has not previously cooperated
in restoring garage tax payments made by resident homeowners.
ENERGY COSTS ESCALATE
Energy costs have skyrocketed since the dawn of the new millennium. Insufficient
fuel supply caused great fuel cost increases during the winter of 1999/2000
and then the cost of electricity jumped enormously for Con Edison customers
this summer. These events are now wreaking havoc with the budgets of many
cooperatives and condominiums and causing them to return to thoughts of
energy conservation as a means of reducing their energy costs.
Just in time, funding is available from the New York State Energy Research
and Development Authority (NYSERDA), which has never ceased to concentrate
on conservation as the best means of reducing energy costs. NYSERDA is
sponsoring several programs designed to encourage buildings to institute
measures to save on energy costs. Its New York Energy $mart program is
funding $25 million in technical assistance and installation incentives
to help customers make wise electrical energy decisions and improvements.
It currently has six programs available to consumers, which we describe
briefly below. If you would like further information on any of these programs,
you can contact NYSERDA at (518) 862-1090 or consult their website at
- PON564-00: Energy Feasibility Studies for engineering assistance to
identify cost-effective capital improvements that will reduce energy
use and increase economic competitiveness. The application deadline
is November 15, 2000.
- PON 563-00: Energy Operations Management for projects that focus
on improving the energy efficiency of facility operations including
developing an energy strategy for a facility, technical training, and
acquiring data. The application deadline is November 8, 2000.
- PON 562-00: Rate Analysis and Aggregation helps electric customers
prepare to negotiate with electric power marketers by evaluating baseline
energy consumption, load profiles, and rates. Projects may also facilitate
customer aggregation for purchasing electricity and energy services.
The application deadline is November 1, 2000.
- PON 459-99: New Construction Program provides cash back for the installation
of const-effective electric energy efficiency measures in new or renovated
buildings. Also provides technical assistance to evaluate and design
energy-efficient building options. Applications are accepted on a first-come,
- PON 566-00: Standard Performance Contract Program offers financial
incentives paid on a performance basis to contractors implementing cost-effective
electrical efficiency improvements for eligible customers. The incentive
is calculated based on one full year of energy savings. Applications
are accepted on a first-come, first-served basis.
- PON 504-99: New York Energy $mart Loan Fund provides interest reductions
of approximately 4.5% on loans from participating lenders for implementing
energy efficiency improvements and/or installing renewable technologies.
All sectors are eligible. Applications are accepted on a first-come,
At CNYC's 20th annual Cooperative Housing Conference on Sunday, November
12, 2000, there will be three workshops focused on energy issues. In the
morning engineer Herb Hirschfeld will discuss submetering and mastermetering
as means of conserving electrical energy and positioning your building
to take advantage of energy purchase opportunities. Mr. Hirschfeld administers
some of the NYSERDA programs. At midday, Jorge Reyes-Montblanc will present
an energy conservation overview, and in the afternoon Herb Rose will help
participants decide, How Will You Buy Deregulated Electricity? For more
details, click here.