Page 17 - CooperatorNews NY November 2021

COOPERATORNEWS.COM COOPERATORNEWS — NOVEMBER 2021 17 to work out rent reductions or deferrals with their landlords—the condo associations and co-op corporations—who then have to make up the difference in their budgets somehow. Increase amenity fees? Not an option for many boards, who have had to implement total closures or strict limits on use of spaces like gyms and fitness centers, playrooms, community facilities, shared work spaces, or other residential amenities to reduce the spread of COVID on their properties. Those that have kept those spaces open or reopened them at some point have needed to enhance cleaning, staffing, supplies, and—in some cases—ventilation and HVAC systems to comply with regional mandates and keep residents and employees as safe as possible. All those costs add up. Only in New York In New York City, where everything up for New York co-ops and condos as well, the costs of such projects will be somewhat seems to be more expensive than anywhere thanks in part to brand new legislation that mitigated by the savings from reduced usage else in the country, median monthly condo guarantees prevailing wages and benefits and increased efficiency. Financing through and co-op fees tower above those of other for building service workers in luxury co- municipalities. They also saw a bigger jump ops and condos. Granted, the last people also reduce the bottom line for these capital this year than anywhere else, rising 22% who should get the short end of the stick expenses. from August 2020 to August 2021, according in a building’s financial crunch are the staff to Crain’s. That makes the median monthly who clean, secure, maintain, attend, and in a Billionaire’s Row behemoth or a modest fee in the Big Apple now more than double guard it—but it still equates to a budgetary multifamily in Midwood, expect monthly as- the national median, at $948. According to line item in the “expense” column for which sociation/corporation fees to go up this year, real estate appraisal firm Miller Samuel’s there must be a commensurate increase in if they haven’t already. data from earlier this year, the average main- tenance charge in Manhattan is $1.68 per to the law. square foot per month. (That means that the average New York owner or shareholder of a of New York’s housing stock also makes the two-bedroom, which hovers around an aver- age of 1,200 square feet in the city, is already much more challenging and expensive. For paying over $2,000 per month in common buildings that run on fossil fuels, reaching charges.) Aside from being among the most ex- pensive per square foot, New York’s hous- ing stock is older than that in many cities, utility conduits lead to more water and en- which means that the costs to heat and cool ergy waste, not to mention leaks and other these buildings is higher than in newer con- struction, and there is also greater and more brick construction, and aging roofs also add frequent need for repairs and replacements. to energy loss and more need for repairs and Maintenance on older structures can also replacements. be pricier due to the lack of supportive in- frastructure such as service elevators, above- grade mechanicals, capacity for high voltage, 20,000 square feet will have to weigh the and smart technology. Outdated parts can be costs of improving their energy profile hard to find; labor to fix older systems can against the costs of the fines for not doing also be in short supply, and thus more expen- sive. Speaking of labor, these costs have gone balancing act, it should be considered that the “income” column for buildings subject Last but not least, the aforementioned age onus of complying with Local Law 97 that carbon-neutral status is going to require sig- nificant planning, financing, and disruption. Aging pipes, drainage systems, and other emergencies. Old windows, uninsulated As the first compliance deadline ap- proaches in 2025, co-ops and condos over so, which increase significantly at each com- pliance threshold. In performing this fiscal programs like PACE and NYSERDA could But make no mistake—whether you live n AS COSTS RISE... continued from page 6 directory.cooperatornews.com Your one source for all the businesses and services essential to your co-op, condo or HOA COOPERATORNEWS DIRECTORY OF BUILDING SERVICES Search by location: