Buildings Sloppy in Following Elevator Inspection Regulations

Posted on August 21, 2013 by admin

Ira Meister, founder and CEO of Matthew Adam Properties, says that when his company is retained to take over management of buildings after a board changed management companies, it has found a disturbing number of properties that are not current with elevator inspections either by not having the inspections conducted, or not filing the proper reports. “This raises two issues,” Meister says. “Most importantly, is the need to keep elevators in good working order to prevent accidents. Secondly, the buildings are subject to fines for not complying.”

Elevator accidents have changed the elevator inspection codes

In recent years, several well-publicized elevator accidents have led the city to rework the elevator inspection codes. This also followed a report in 2009 from the Department of Buildings which showed lax compliance. Of 50 elevator inspections and tests that were randomly monitored, the department found that 28 of the inspections were performed late, seven were performed by inspectors who lacked the necessary certifications and 19 were not properly documented. This led to new inspection and testing requirements that went into effect in December 2010.

Under the current code, a basic test must be conducted annually by an approved elevator inspector and witnessed by another company or inspector who is not connected with the company performing the inspection.

“Then, the owner, board or most likely the property manager must file a report with the Department of Buildings with the results. This must be submitted within 45 days of the inspection,” Meister says. “However, very often the responsible party fails to file the report.”

You have 45 business days to repair defects after filing inspection report

If defects are found requiring repair, the work must be done within 45 business days of filing the initial inspection report. A final report, saying the repairs have been done, must be filed within 15 business days of completion of the work.

Failure to perform the inspection, or to correct defects once found, can result in fines of $150/month per elevator. After one year, the fines increase to $3,000. A “full-load” test is required every five years. Fines for this are $250/month for failure to perform the test and $150/month for not correcting violations. After one year the fines increase to $5,000.

“In addition to changes in the inspection requirements,” Meister says, “the new code and recent amendments have added requirements for various safety features in the elevators, which require additional expenses for the owner. “

Having an Annual Meeting

Posted on August 2, 2013 by admin

We’re in the midst of the annual meeting cycle for co-ops and condominiums as most associations hold their meeting in May or June. This is a good time to look at some aspects of the gathering while it is fresh in the minds of the boards and residents who have just met and for those preparing for theirs.

The co-op or condo annual meeting is much like that of public companies when shareholders, both big and small, gather to hear about the company’s performance and its future prospects from the chairman and president and vote on board members and other issues. These meetings, on which many companies spend considerable time and expense, are usually held in the spring of the year for companies whose fiscal year ends on December 31.

While far from as elaborate or attention-grabbing as the meetings of the public companies, the annual meetings of co-op and condos are for many of the shareholders and unit-owners at least of equal importance. For many, the investment in their home is their largest asset. While each meeting has its own rhythm and tone, the basic structure and requirements are similar, and, in fact, mirror to a great extent the corporate sessions.

Annual meetings help inform shareholders and unit owner

There are three main purposes for the annual meeting: to update shareholders and unit-owners on the operations and finances of the property; elect the board as well as vote on other issues, such as amendments to the building’s by-laws; and provide an opportunity for residents to ask questions.

The annual meeting, as with all regulations and rules in a co-op or condominium, is governed by the building’s by-laws. While these are unique to each building, they all call for an annual meeting according to Business Corporate Law of New York State, which govern co-ops and condominiums.

Most meetings follow a standard agenda. A management report is given, usually by the president or managing agent, describing operations in the past year and specific changes and improvements that were made as well as current issues and future plans. The treasurer, and or accountant, describes the financial condition of the building and the accountant presents the audit report certifying that the financial records are in order. The treasurer, president or managing agent also may discuss capital improvement requirements and whether these can be funded from the reserve fund or will require a special assessment or other financial arrangement.

Some co-ops and condominiums require a vote on capital improvements, and some, mainly smaller ones, require a vote on the annual budget.

Why are the meetings usually scheduled in May and June, when most fiscal years end on December 31? One reason is that it takes the accountants time to review and certify the financial statements. As we all know, accountants are usually immersed in taxes through April, and May and June are the earliest they can complete the financial statements.

The financial reports should be provided to the shareholders or unit-owners sufficiently in advance of the meeting for them to review the document. They should also receive the text of items to be voted on, if any, and any potential rules changes.

The managing agent usually organizes and sets the agenda for the annual meeting in conjunction with the board president and in some cases directions from the by-laws.

Attendance varies from building to building and we at Matthew Adam Properties make certain we collect proxies from those who will not attend, or are uncertain, so a quorum is guaranteed. By the way, a quorum is needed only for votes, so meetings can start on time and votes taken when more residents arrive and a quorum is achieved.

Annual meetings help inform shareholders and unit owners

Some co-ops and condominiums require a vote on capital improvements, and some, mainly smaller ones, require a vote on the annual budget.

The managing agent usually organizes and sets the agenda for the annual meeting in conjunction with the board president and in some cases directions from the by-laws.

While most buildings have one meeting a year, there are some that have periodic informational meetings to keep the shareholders or unit-owners current on building operations and issues. Some buildings also have a pre-annual meeting session where the residents can get to know potential candidates for the board of directors and receive an update on building activities. Additionally, when a major issue arises during the year, such as a capital improvement project, a special meeting may be called.

Keys to a Smooth Management Transition

Posted on July 24, 2013 by admin

Probably the most difficult, important and often delayed decision the board of a co-op or condominium makes is deciding to change management companies. Numerous factors, both realistic and psychological, play into this, but one of the most prevalent is the fear of change and the requirements of getting a new management company up to speed.

Unfortunately, the final decision is often made after communication has virtually broken down with the manager and the company, the building’s services and physical plant have deteriorated and the financial records are in poor shape.

Our Strategic Management Program Uses Sound Business Principles

What many boards fail to understand is that some management companies are organized and prepared to move in, take control and bring order to a deteriorated situation. At Matthew Adam Properties, we follow the policies outlined in our Strategic Management program. Strategic Management is our adaptation of sound business principles. We set objectives and a timetable so our performance and the property’s improvements can be measured. It is a planned approach to property management rather than the usual band-aide cure.

We follow this approach in the transition process. As we transition the property into our portfolio, we are cognizant that every detail – every record, every management professional’s decision – must be incorporated into management files for the property. Our Strategic Management program facilitates the transition process and helps us move quickly when we officially start. We keep the board informed of our progress and alert it to any problems encountered.

When we are retained, we immediately conduct a full evaluation of the property’s operations and finances. We then create a customized Strategic Management Plan that includes financial issues, service contracts, maintenance, repairs and long-term capital improvements. This is reviewed periodically with the board.

Organization and Communication are Key Points in Management Transition

While we are working on the Strategic Management Plan, our transition team is working to get the property up to speed. In taking control of the process we emphasize two points: communications and organization. It is important that we develop a solid working relationship with the board. Often, we find board members wary of property managers after a disastrous experience with the previous company or companies. We work hard to demonstrate our capabilities and professionalism in getting the tasks accomplished. In organizing the transition, we follow our Management Transition Checklist and the procedures outlined in our Strategic Management program. These guide us in collecting the information we need. In some instances, we have found that bookkeeping is totally disorganized and a great deal of information is missing, or hasn’t been recorded.

The Real Estate Board of New York (REBNY) has instituted a professional pledge signed by most management firms saying they will provide the required records and information. In reality, often the fired management company is lax or resistant to turning over the records. In these instances much of the needed information can come from the auditor, if he/she is still on board. Sometimes, the auditor has also been fired making it more difficult to obtain records.

We need copies of maintenance contracts, the general ledger and bills that have been paid or are outstanding. We also have to understand a building’s cash flow requirements and need to know the schedule and amount of mortgage and real estate payments (for co-ops), the payroll and which residents are delinquent in their monthly payments.

Communication and people skills are a significant part of a property manager’s job description and these talents come into play when dealing with the staff. Very often, when the previous property manager has been lax in his responsibilities, the work quality of the staff has deteriorated. The new manager must walk a fine line between acting like a bull in a China shop and wanting to change everything immediately and one who shows his/her authority, but will listen to the employees and work with them to make improvements.

To improve the quality performance of the staff, a manager can modify work schedules and job descriptions, however, the union must be kept informed of changes and the changes must comply with labor agreements.

The building’s superintendent should play an important role in this, unless he is a large part of the problem.

Overall, a professionally organized and implemented transition can be smooth while affording the board an opportunity to evaluate operations and services and discuss additional improvements with the new manager.

Complying Early with Local Law 87 Has Benefits

Posted on July 15, 2013 by admin

Buildings that comply with Local Law 87 prior to their assigned date can benefit from various incentives before funding runs out or regulations change.

The legislation requires large buildings to conduct an energy audit and a retro-commissioning study every 10 years. The energy audit identifies areas where energy and cost savings could be implemented, though not mandated. The retro-commissioning requires “base building systems” to be at performance capabilities. If not, corrective measures are required.

Incentives for Completing both Retro-Commissioning and Audit

The heating requirements of the retro-commissioning require analysis be conducted during the heating season, which ends in March, negating the possibility of compliance this year. The law provides an incentive for buildings that complete both the retro-commissioning and the audit by the end of 2013. If accomplished, the date for the next round of compliance is 10 years past the assigned date.

Reports are required based on the last digit of the tax block number. For example, buildings with the last digit of 3 are required to file in 2013, with 6, in 2016. The later a building is required to file, the more advantageous it is to comply in 2013. Those buildings whose tax block number is 2, would be required to file in 2022. But, if they comply in 2013, the next mandated compliance period would not be until 2032.

Buildings covered by the law are larger than 50,000 gross square feet or two or more buildings on the same tax lot that comprise more than 100,000 gross square feet as we’ll as two or more condominiums governed by the same board that together exceed 100,000 gross square feet.

But, there are significant benefits for buildings complying before the required timeframe, says Brian King, president and CEO, Ecological LLC, an environmental sustainability company.

Incentives are offered by NYSERDA (New York State Energy Research and Development Authority) and others to improve the energy use in buildings. Changes to the incentives or a lack of funds may make them unavailable in future years.

Energy Auditing Can Save You Money Long Term

While changes are not mandated in the energy auditing component of Local law 87, buildings can save money long term by implementing some or all of the recommendations. One incentive available involves financing upgrades to heating and cooling systems through the payment of utility bills. For example, if NYSERDA lends a building $1 million for upgrading, which saves approximately $200,000 annually in energy costs, the building can pay this off in five years through an agreement with Con Ed on its utility bill. The building will be charged the same amount as if it hadn’t upgraded (which would be an additional $200,000 annually over the actual expense) and in five years that would total the $1 million loan from NYSERDA. After five years, the building is saving at least $200,000 in energy costs annually. An option being considered is Pace Bonds, which would be similar to the NYSERDA loans and could be paid back through incentives in real estate taxes.

Several cities, including Philadelphia, Seattle, San Francisco and Washington, DC, have passed legislation similar to Local law 87, and about a dozen states are looking into various aspects of it.

Matthew Adam Properties is working with Ecological LLC to conduct the audits and retro-commissioning in buildings we manage and developing plans for compliance. A key part of the audit is a cost benefit analysis.

Matthew Adam Properties is on the leading-edge of management firms in promoting energy conservation and “Green” technology. We are one of the few, if only, management company in New York with a division headed by a LEED certified professional dedicated to sustainability and promoting “Green” initiatives. The goal is not only to reduce costs and gas emissions, but to create a safer and healthier environment for residents of properties we manage.

Local Law 87 is part of a package of four laws called the “Greener, Greater Buildings Plan,” enacted in 2009 to improve the energy and water efficiency of the city’s largest buildings.

Another of the laws, Local Law 84, requires annual benchmarking of energy and water systems with the city publishing the results. Local Law 85 requires that plans for renovations or upgrades demonstrate how the project complies with the Energy Code. Local Law 88 requires upgrading to lighting systems and installations of electrical submetering in apartments. Buildings covered by this law have until January 1, 2025, to comply.

The goal of the package is to reduce greenhouse gas emissions by 30 percent by 2030.

Reducing Renovation Costs

Posted on June 27, 2013 by admin

While multi-family buildings are looking to keep costs down as much as possible in this economic environment, there are certain items that need to be addressed. One of these is the physical upkeep of the property, says Ira Meister, president and CEO of Matthew Adam Properties. An important area is the public spaces, which immediately give a visitor insight into the attention to detail in the management of the property and how the residents view their homes.

Appearance of public areas can affect property value

“In fact,” Meister says, “the appearance of the public areas has an impact on the value of the building and the price of units. Spaces that show their age might give the prospective buyer an indication that the mechanical systems may lack proper maintenance, which could lead to higher maintenance/common charges or a special assessment.

“The hallways at 1175 York Avenue needed to be refurbished and we wanted to add ‘Green’ elements to reduce costs and make the environment healthier for residents and staff,” Meister says.

He notes that in today’s economy with construction and renovation projects less plentiful contractors are more competitive and buildings can obtain lower bids than prior to the recession of 2008.

“While this helps to reduce costs, there are other ways to do so, and we diligently pursue these,” Meister says. “One way is through the purchase of materials.”

For 1175 York Avenue, the asset manager at Matthew Adam researched the cost of materials such as carpeting, wall coverings and lighting fixtures and then aggressively bargained with the vendors to get a better price.

“We reduced the designer’s budgeted cost of materials by $150,000,” Meister says. “The diligence of Martin Traub, the asset manager, paid off for the co-op.”

“Green” initiatives have long-term savings

In addition to installing new carpeting and wall covering, Matthew Adam had energy-saving, compact florescent lighting installed. While the initial cost is higher for the lighting, long-term there is savings in the cost of the bulbs and energy. Other “Green” initiatives are found in the adhesives and surface coatings.

“At Matthew Adam Properties we are in the forefront of bringing “Green” materials to the properties we manage,” Meister said. “In every project we are involved with we see how we can bring our “Green” initiative to bear.”

A Geothermal Well in Manhattan

Posted on June 19, 2013 by admin

Matthew Adam Properties is committed to promoting and implementing “Green” systems wherever possible in properties it manages. In fact, points out President and CEO Ira Meister, the firm has its own Sustainability Department headed by a LED certified professional.

One of the more unusual projects for the firm was the installation of a geothermal well in a small, multi-family co-op it manages on East 93^rd Street.

“Many are surprised to hear that we were working with engineers to install a geothermal well in Manhattan, and while it is unusual, it is not the first,” Meister says. “It is estimated there are about 100 geothermal projects in the five boroughs, mainly in institutional buildings, such as the Times Square TKTS Booth, the Brooklyn Children’s Museum and the Queens Botanical Garden.”

In Manhattan, Meister points out, most building sites tend to be small, so the wells are vertical. The building on East 93^rd Street is in the Carnegie Hill section of Manhattan, which is higher than other areas, which facilitated the drilling. The wells usually go to a depth of 1,500 feet.

Use the Natural Energy of the Earth to Heat Your Buildings

Geothermal energy systems use the earth’s constant temperature to heat and cool buildings. They are dug to the level where the earth maintains the water temperature at a constant level. Actually, the systems are not wells, but a series of pipes. Here is how it works. In winter, the warm water is drawn from the earth through a series of pipes using the natural warmth of the water to deliver it to a heat pump inside the property, which transfers it to the air circulated though interior ductwork to heat the interior.

In summer, Meister says, the process is reversed and heat is extracted from the air inside the building and transferred into the earth. The system also uses some of the heat generated to provide hot water.

Geothermal Systems are More Efficient Then Conventional Heating

The Environmental Protection Agency estimates that geothermal systems are 75 percent more efficient than oil furnaces, 48 percent more efficient that gas furnaces and 40 percent better than air source heat pumps.

The expense varies depending on the size of the property and the extent of the drilling, but it is estimated that costs are recovered in from two to eight years. In addition to the energy savings, tax credits may be available as well as financial assistance from NYSERDA (the New York State Energy Research and Development Authority), which promotes the use of alternative energy technologies.

Other positive factors, Meister points out, are lower maintenance costs since the systems do not burn fossil fuels, which require cleaning and upkeep of the fuel and gas systems. In addition, the pipes in the system are warranted for 50 years and the above ground equipment of 25 to 30 years, about twice the life expectancy of a furnace or other conventional systems.

A Lobby Designed by a Pre-Eminent Designer

Posted on June 12, 2013 by admin

Increasingly the value of apartments in New York is determined in part by what is known as “curb appeal” or the design and maintenance of the exterior of the building and the lobby. Developers are spending more effort and money today to make the entrances as modern and edgy as possible to attract high-end buyers.

One of the luxury buildings Matthew Adam Properties manages was a forerunner of this type of thinking back in the 1960s, says Ira Meister, president and CEO of Matthew Adam Properties.

Raymond Loewy the Father of Industrial Design

“Plaza Tower, the luxury apartment building at 118 East 60^th Street is noteworthy for several factors,” Meister says. “The 232-unit, 34-story building is a midblock high-rise, just down the block from Bloomingdale’s with an attractive circular driveway and a fountain. But, most noteworthy and unknown to many is designer of the lobby. It was Raymond Loewy, who is known as the ‘father of industrial design.’ In fact, this is the only residential lobby that Loewy designed.”

While Loewy may not be known to many, the average American comes across his designs almost daily. Included are the slenderized Coca-Cola bottle, the logos for Shell Oil and Exxon, the interiors of Saturn I and V space capsules as well as Skylab. He designed packages, cars, appliances, and numerous logos.

Modernize and Keep the Integrity of the Design

“Loewy called his design concept ‘beauty through function and simplification,’” Meister says, “and it is evident in the lobby of Plaza Tower. When it was time to upgrade the lobby our challenge was to modernize it while respecting the integrity of Loewy’s design.”

Loewy’s open-air design included marble and terrazzo floors, a gold-leaf dome, and an ancient Buddha in a niche.

“We replaced the furnishings without taking away from the design element,” Meister said.

One notable change was in the lighting. Consistent with the “Green” initiatives in Matthew Adam properties, energy efficient lighting was added that both improved the look of the space, made the lighting more dramatic and reduced energy costs.

“We are proud to have worked with the designer and contractor on this project and were able to respect the integrity of the design done by a pioneer in industrial and consumer design,” Meister said.

Washer/Dryers and Dishwashers Require Preventive Maintenance to Avoid Flooding

Posted on May 15, 2013 by admin

Several appliances in the home can cause damage to the apartment where they are housed as well as to neighbors’ apartments, says Ira Meister, founder and CEO, Matthew Adams Properties, a leading property management firm. While these incidents are not frequent, they can be costly and are easily preventable.

Specifically, Meister cites washer-dryers and dishwashers. If a break occurs in a water line, it can lead to serious flooding in the apartment and also to the downstairs neighbor’s unit. Floors, carpeting, walls, art, furniture and many other expensive items can be damaged

Meister encourages residents to replace the water supply lines that come with the clothes washer with specialized long-lasting lines, such as those marketed by Floodchek. The weaker lines can break, yet still continue to carry water that can cause flooding. The hoses should be checked annually for kinks, cracks, stiffness or brittleness. The replacement costs only $10-$20, while a flood can cause damage in the thousands. There should also be a shut-off value in the event the line breaks.

Always install a backflow preventer on the appliance, Meister says. This can also be installed in dishwashers. This would be useful if the internal valve sticks and water starts to back up and forces hot water into the cold water lines.

An important preventive measure for clothes dryers, Meister says, is cleaning the vent that connects the dryer to the flu. This should be done at least annually using a vent brush or vacuum to remove the lint. Lint buildup can decrease the efficiency of the appliance and eventually have the lint back-up into the dryer. A blocked vent can create excess moisture in the room and possess a fire risk.

The lint trap in dryer should be cleaned prior to every use.

It is also wise to have homeowner’s insurance that covers flooding accidents in both your apartment and a neighbor’s.

Legislature Extends NYC’s Co-op/Condo Property Tax Abatement

Posted on May 10, 2013 by admin

Several months ago we discussed the failure of the New York State Legislature to extend the property tax abatement for co-ops and condos, says Ira Meister, president and founder of Matthew Adam Properties, Inc., a premier property management firm. Well, the good news is that earlier this year, the legislature voted to continue the abatements, though with several significant changes. However, the legislature’s action came too late to include the abatements in the 2012/13 fiscal year, so they will be applied to the 2013/14 taxes.

The legislature also failed to make permanent the abatements, which have been authorized with continuing legislation since the late 1990s, Meister notes.

The impact of the abatement is significant. “There are approximately 365,000 co-op and condo units in the city and the city estimates the abatement saves these taxpayers on average approximately $1,200 per unit,” Meister says.

Condo owners pay the property tax directly to the city. For co-op shareholders, the tax is included in the monthly maintenance charges.

The most significant change is in eligibility. To qualify, the unit must be the primary residence. If not, the abatement will be phased out and completely removed for the 2014/15 fiscal year beginning July 1, 2014. If the eligible taxpayer owns three or fewer units in the building, all are eligible for the abatement. If four or more, none are. The city’s Department of Finance is checking income tax records and other filings to ascertain whether the unit is the primary residence.

The abatement is based on the assessed valuation of the property. For fiscal year 2012/13 it is 25% for properties assessed at $50,000 or less, 22.5% for properties between $55,001 and $55,000; 20% for those assessed at $55,001-$60,000 and 17.5% for those assessed over $60,001.

The abatement increases again in the next two fiscal years for all except the highest level.

Before the extension, the abatement was 17.5% for all units valued at more than $15,000 and 25% for those assessed at $15,000 or less.

“Remember,” Meister says, “this is the assessed valuation based on a complex formula and not the market price of the unit.

“While the new legislation increases the abatement for co-op shareholders and condo owners, it still assesses them at a higher rate than owners of single-family homes,” Meister says.

Ira Meister’s Fire Safety Tips

Posted on May 1, 2013 by admin

.Since childhood, we’ve repeatedly heard tips on fire prevention and what to do if there is a fire

“While most of us have heard these tips, they bear repeating,” says Ira Meister, founder and CEO, Matthew Adam Properties, a leading property management company. “And remember, one of the easiest and most important steps is to check the smoke and carbon detectors in the apartment.”

When clocks are moved each spring and fall, there are announcements that residents should check their detectors, Meister points out. Unfortunately, many people ignore this. It is easy and takes less than a minute. Each detector has a test button that can be pushed to see if the battery is charged. The city recommends changing the battery every spring and fall. Detector batteries also give off a shrill sound when they are dying, a sign to replace them. These detectors, by the way, are required for all apartments under city law. The city also recommends changing smoke detectors every 10 years and carbon monoxide detectors every five to seven years.

In addition to having the detectors in apartments, buildings should place them in the hallway as well as in incinerator rooms and the garage, Meister says.

Ira Meister Keeps His Residents Safe and Secure

Equipment that should be checked periodically by building staff are the sprinklers and standpipe located in stairwells to make certain that all are working properly. This can be done by outside contractors. Yet, Meister believes the best procedure is to have it done by the superintendent, who has been received certification from the city. Certification requires taking an approximately 25-hour course and passing a written exam.

The benefit of having certified staff is two-fold, Meister says. The inspections should be conducted monthly and doing them in-house is much less costly. Secondly, in the event of a malfunction, personnel are on-hand who are familiar with the system.

Residents, particularly those with children, should develop a fire evacuation plan and also remember to obey Fire Department instructions. This would include knowing when to leave an apartment, and when to stay, having an escape route to the exits in the event of a heavy smoke, arranging for a meeting point and what to do if it is best to stay in the apartment. As a quick guideline, Meister says, fire travels up, so if the fire is below, evacuation should be considered. If the fire is above the apartment, it may be best to stay in the unit.

There is considerable literature available on fire safety from the city and Fire Department.

“It doesn’t take much time to be prepared, and it can save lives,” Meister says.

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