Page 1 - The NY Cooperator September 2019

September 2019 COOPERATOR.COM This past spring, New York City took a huge step in confronting the threat of climate change with its own version of a ‘Green New Deal.’ On April 18, the City Council passed the Climate Mobilization Act, a package of bills aimed at getting the Big Apple to do its part in fighting global warming. The centerpiece of the legislation is the citywide requirement for buildings 25,000 square feet and larger to reduce their greenhouse gas emissions 40 percent by the year 2030, and 80 percent by 2050. Building owners and landlords who don’t comply with the new efficiency standards will be heavily fined. The emissions caps go into effect starting in 2024. “Buildings that are 25,000 square feet or larger make up just two percent of the 1.1 million structures in New York City, yet account for 30 percent of our over- all greenhouse gas emissions each year,” City Councilman Costa Constantinides (D-22), the sponsor of the legislation, tells The Cooperator. “We’ve seen clear science that says we’ve got to reduce our carbon output. The alternative – do- ing nothing – will let sea levels rise to a degree that puts JFK Airport underwa- ter and turns tens of thousands of New Yorkers who live near our coast into refugees.” Not everyone is welcoming the new emissions law – now known as Local Law 97 – with open arms, particularly condo and co-op owners who feel they are being singled out to shoulder the continued on page 10 While the ‘Green New Deal’ and other long-term climate solu- tions are being debated at the federal level, some states and municipali- ties are getting in on the action as well, setting legal emissions bench- marks that will have a real impact on the lives of multifamily commu- nity residents – includ- ing those in co-ops, con- dos, and HOAs. For example, New York City passed the Cli- mate Mobilization Act in May of 2019, setting emission caps on build- ings larger than 25,000 square feet beginning in 2024, with the goal of an 80 percent reduction in total emissions by 2050 – the year scientists warn will be a point of no return if we fail to drastically reduce carbon emissions and curb climate change. Writing for The New York Law Journal , William D. McCracken, a partner with the Manhattan-based law firm Ganfer Shore Leeds & Zauderer, makes the case that attor- neys are well-situated to help association boards understand – and abide by – emis- sions standards that may seem intimidating at first. He notes in the piece: “Lawyers are fiduciaries, and they have an obligation to help their clients avoid a nightmare scenario wherein a building fritters away the next few years \[and then\] finds itself seeking a building permit behind 37,000 other properties, using unproven or incom- petent professionals because its preferred choices were fully booked long ago, and incurs million dollar fines year upon year.” Community living comes with lots of rules and regulations—many of which are codified in largely static, hard-to- amend governing documents like pro- prietary leases and condominium decla- rations. Others are laid out in the more flexible context of house rules, which can (and should!) continue to evolve as times change and community values and demo- graphics shift. House rules can cover ev- erything from when your monthly charges are due, to what types of pets (if any) you’re allowed to keep, to the times and days you can move into or out of your unit – and a whole lot in between. Living by the rules may be easy for some, difficult for others. What can a board do to enforce their own community’s standards and no-no’s? Fines and fees are one option. How Widely Used are Fines and Fees? According to Daniel Wollman, CEO of Gumley Haft, a large co-op and condo management firm based in Manhattan: “I can’t think of more than two co-op build- ings that we manage that levy fines. The number is slightly higher in condominium buildings because there tend to be a lot of renters in condos. On the whole, with more renters \[in a building\], there’s less of a proprietary interest on the part of the residents.” Humberto Roque, a management ex- ecutive with The Duo Condominium at AKAM On-Site in Dania Beach, Florida, says that in his market: “Fines are very prevalent. Most condominium asso- ciations use fines as a form of discipline with owner/members, with the fines usu- ally outlined in the governing documents. These documents can be amended when necessary to refine, add or eliminate fines and fees.” Marcy Kravit, who is also with AKAM, explains that Florida’s condominium stat- The Cooperator spoke with McCracken about the responsi- bilities of attorneys outside of New York City in regard to their clients’ energy emissions; their general ability to act as climate stewards; and the root of his own personal interest in environ- mental issues. We also checked in with attorneys both in New York and beyond to discuss what they feel their roles will be in all of this going forth. Climate Legislation and Emissions Issues How Attorneys Can Advise Boards BY MIKE ODENTHAL Local Law 97 Buildings Must Meet Greenhouse Limits Starting in 2024 BY DAVID CHIU Fines and Penalties Using Them Fairly and Effectively BY A J SIDRANSKY THE COOPERATOR EXPO 2019 WHERE BUILDINGS MEET SERVICES 250+ EXHIBITORS, SEMINARS, FREE ADVICE & NETWORKING NEW YORK’S BIGGEST & BEST CO-OP & CONDO EXPO! JACOB JAVITS CONVENTION CENTER — TUESDAY, OCTOBER 29, 10–4:30 FREE REGISTRATION: COOPEXPOFALL.COM 205 Lexington Avenue, NY, NY 10016 • CHANGE SERVICE REQUESTED continued on page 8 continued on page 14