Page 3 - NY Cooperator June 2019

COOPERATOR.COM THE COOPERATOR —JUNE 2019 3 TABLE OF CONTENTS THIS MONTH’S FOCUS: LAW & LEGISLATION DEPARTMENTS: 4 Pulse/Calendar 5 Questions & Answers 18 Service Directory ON THE WEB: 6 Momentum Behind Pied-à-Terre Tax Stalls By Mike Odenthal An initial push to tax expensive second homes in the Big Apple appears to have lost its momentum. Legislation for a pied-à- terre tax, which was originally introduced by New York State Senator Brad Hoylman in 2014, would have targeted New York City homes worth $5 million or more that are not their owners’ primary residence. The tax was seen as a potential source of revenue for much-needed MTA repairs and upgrades, and as a support for the city’s public housing developments. Legal & Legislative Update 2019 By A J Sidransky Laws, and the legal decisions that support and enforce them, are constantly evolving and can affect every facet of community life in HOAs, condominiums and co-ops. While law and legal cases can emanate from any of our three levels of government – federal, state or local – most of the developments that affect housing come from the bottom up, with local and state law often defining or redefining what co-op, condo, HOA, and even owners of rental housing may and may not do within the law. 10 12 Governing by the Book By Mike Odenthal Most newly-elected condo or co-op board members aren’t experts in running a mul- tifamily building or development. They may be eager, enthusiastic, and committed to serving their community. But they also probably have little idea of how to do that until they’ve learned a bit more through experience. Fortunately, co-ops, condos and HOAs all have an established set of governing documents laying out the rules that everyone in the community must follow. Board Misconduct By Mike Odenthal Everyone – including the boards and managers of community associations – inevita- bly makes mistakes, or is guilty of using poor judgment. And while it’s very unlikely that every member of a community will commit outright illegal acts, it’s also not that uncommon. There’s a wide moral chasm between erring in good faith and actively trying to swindle one’s co-op or condo community. However, things can get murky. Yes Yes No No Yes Vetting Prospective Buyers By A J Sidransky Buying an apartment in New York City isn’t just a matter of finding the right unit and qualifying for a mortgage. In the case of a co-op, it’s also a matter of passing muster with the board. And even for a condominium world today, prospective buy- ers still have to jump through hoops in order to secure the board’s approval of their purchase. Though boards have the final say, they also must be careful not to cross lines into discriminatory practices when defining the requirements and standards to which they hold prospective purchasers. 14 EXPO RECAP: 16 The Cooperator Expo New York By Cooperator Staff As they have for nearly two decades, crowds of managers, board members, co-op/condo residents, building owners, and multifamily service providers of all stripes converged on New York Hilton Midtown on April 11th for the spring edition of The Cooperator Expo New York. 8 ON THE WEB: 6 Elevators: When It’s Time to Consider an Upgrade By AJ Sidransky Upgrading an elevator is one of the most potentially disruptive – and expensive – projects a co-op or condo can undertake. Many hours of deliberation by boards after extensive consultation with managers and elevator consultants are required. That said, a decision to upgrade – or not – may be somewhat moot in light of two new regula- tions adopted in New York City that will affect elevator machinery and cabs. ON THE WEB: 6 Report: Abatements Expire, Taxes Jump By David Chiu Owners of newer New York City condo- miniums are facing higher property taxes, as once-beneficial tax abatements are starting to expire. According to a study by StreetEasy, and later reported by Crain’s New York Business , the imminent end of the tax abatements means that not only are property owners facing rising monthly tax bills, but it’s making it more difficult for them to lure potential buyers.