GET READY FOR HIGHER FUEL COSTS

Governor Patterson has recently signed into law legislation that will require lower sulfur content in number 2 heating oil. In order for the oil companies to lower sulfur content, they have to refine the number 2 oil more then they do now. The result will be higher costs for consumers. This law will go into effect July, 2012.

On Thursday, July 19th, the city will most likely pass legislation (Intro 194A) similar to the state law regarding number 4 oil. When this new legislation goes into effect, it will be more costly for the consumers. The Mayor is expecting to sign the legislation. The proposed effective date is October, 2012.

NEW 4-YEAR  BUILDING SERVICE EMPLOYEES CONTRACT

A Fair Contract with Significant Innovations
At midnight on Tuesday, April 20, 2010, Michael Fishman, president of Local 32BJ of the Building Service Employees International Union,  and Howard Rothschild, president of the Realty Advisory Board on Labor Relations, Inc. shook hands on a four year contract agreement that includes pay increases of 2.33% per year. for 32BJ’s 3000 residential apartment building workers in Manhattan, Brooklyn, Queens and Staten Island.

Pledged Savings in Health Costs
The contract further provides that the Health Fund, which is jointly administered by trustees from the Union and from the RAB, will commission a study to help implement annual savings of $70,000,000 or 10% of the Health Plan’s  current average annual expenditures beginning no later than January 1, 2012. 

Employer Contributions Firmly Capped
Caps on employer contributions to the Health and Pension plans during the life of this contract ensure that if, as was the case in 2004, the reserves of either Health or Pension plans should become depleted, employers will not be responsible to make any additional contributions (the opposite was the case in 2004 when employers agreed to substantial, unexpected contributions ($2400 per employee) to rescue the then failing health fund.  This dramatic change in the paradigm ensures employers of certainty in their budgeting for labor during the term of this contract.  All parties are optimistic that no problems will arise, and that the anticipated economies will be easily achieved.

Reduction In Force
In addition, in recognition of the length and the extent of the economic downturn an important phrase has been added to the contract provision regarding Reduction In Force, enabling a building to reduce staff upon submitting proof of financial hardship, provided that no additional work is added to the job descriptions of remaining employees.

A Fair Agreement
The building service workers who are members of Local 32BJ are the best paid service workers in the world; they also have excellent benefits and training opportunities.  And this is as it should be.  These workers  keep our buildings safe and clean. They are part of the community that is our cooperative or condominium. They watch our children grow up; they help us daily in many ways largae and small.  We are all pleased that the current negotiation has produced a contract that is fair to one and all.  

Pattern Agreement
The RAB negotiates a pattern agreement, which each of its residential members with 32BJ employees is then invited to sign,   Copies of the agreement will shortly be sent to your building (or your managing agent).  If your cooperative or condominium has six or more employees, your superintendent is a Resident Manager, subject to an agreement that expires June 20th.

WARNING: BE ALERT TO A NEW SCAM

Do not be taken in by the clever marketing ploy of a lead inspection company that may send to your buiding a very official looking notice advising you that you are required to perform inspections for lead paint.

Note that this is an inspection that building staff can perform in your public areas if your building was built prior to 1978, and that cooperatives and condominiums do NOT have any responsibility for inspecting apartments occupied by shareholders or unit owners. While professional inspections may be appropriate in certain situations (in which case, you will seek out a known, reliable company), the law permits inspections by building staff.

Great News on the Co-op News Front
On March 22, 2010 the State Senate passed its proposed budget and the Senate’s version of the budget DID NOT include the much maligned recording tax on co-op loans. As you are aware, the Federation was extremely aggressive and active in their opposition to this exorbitant tax on co-op loans. On March 12, 2010, members of the Federation met with State Senator Stavisky, who is on the Senant Finance Committee. Clearly our voice was heard and we are appreciative of State Senator Stavisky’s opposition to this co-op tax and all the help she provided in stopping this measure.

The Federal Environmental Protection Agency (EPA) has issued new "regulations" in the handling of lead paint by staff or outside contractors. "The" new "regulations "affect" more "buildings" than the New York City law (pre-1978) and cooperatives and condominiums are included and not "carved" out. See the "chart below" to see if your building is "affected!"

NEW 967A

Recently the Federation has had meetings with representatives of the Mayor’s Office and the City Council, pertaining to some radical changes in 967A. The original 967A bill called for an energy audit and if a capital improvement had a payback period of seven years or less the building had to comply with just a small amount of wiggle room to postpone the project. This bill applies to a project over 50,000 square feet or in residential terms approximately 50 units. The Federation opposed the bill as an unfunded mandate of capital improvements to our members. For a more detailed report on the old 967A bill please “click” legislation on this web site.

Under the new 967A, a building over 50,000 square feet would still have to do an energy audit and must include recommended capital improvement with their simple payback periods. It would also include recommended maintenance of the heating and cooling systems. The following is a list of building systems: the building envelope; the HVAC (heating ventilating and air conditioning) systems; conveying systems; domestic hot water systems and electrical and lighting systems.

The energy audit must be done by a registered design professional (architect and/or engineer). Presuming that you do the maintenance work recommended by the energy audit and then after a period on time, you must then do a retro-commissioning report (An energy efficiency report on how efficient your building systems are) Both the energy report and the retro-commissioning report are to be filed with the Buildings Department. There are a list of items the retro-commissioning inspection is looking for such as leaks, insulation of pipes and calibration of equipment. This is all before the Buildings Department issues the regulations, if the legislation passes and is signed into law. There are a few opt-outs such as if you are a “LEED” building or in the top twenty five percent of energy efficient buildings. (Another bill requires doing energy benchmarking every year).

With the Mayor’s office insistence on having a registered design professional (architect and/or engineer) doing the energy report, because they want someone licensed on the line, the cost of the energy audit would be expensive. The amount of paper work that must be kept such as interviews with staff and minutes of meetings is onerous. In addition, with the rise in costs to cooperatives and condominiums at a fast clip, especially New York City Real Estate Taxes and Water and Sewer bills, now is not the time to add to the cost of running our buildings.

With due respect with energy conservation and lessening of the carbon footprint the City is trying to achieve, the Federation opposed the bill. At this time of economic uncertainty and city rising rates of real estate taxes and water and sewer bills, to increase cost to our buildings with unfunded mandates can not be tolerated. The Federation again opposes 967A.

EMAIL ADDRESSES WANTED
The Federation newsletter is produced four times each year. But sometimes an important issue arises, in-between publications, and the Federation’s Board of Directors needs to inform the membership. Snail mail is expensive and time-consuming (hence it’s name "snail" mail!) Electronic mail or "email" is the quickest, least expensive means of communication available.

Surveys have proven that today, even the most technologically challenged have access to an email account. Therefore we request that every member complete the form below and register an email address. Be assured we will not divulge your address to anyone and only Federation related messages will be transmitted. Thank you for your anticipated cooperation.

THE FEDERATION OF NEW YORK HOUSING COOPERATIVES & CONDOMINIUMS IS DEVOTED TO THE INTEREST OF ALL COOPERATIVES AND CONDOMINIUMS.

THE PRIMARY PURPOSE OF THE ORGANIZATION IS THE EDUCATION OF BOARD MEMBERS OF COOPERATIVES AND CONDOMINIUMS SO THEY CAN EFFECTIVELY MANAGE THE AFFAIRS OF THEIR BUILDINGS.

The Federation is a tax exempt, non-profit membership organization of housing cooperatives and condominiums founded in 1953 by and for the benefit of all housing cooperatives and condominiums.

The Federation's principal services to its members are:

• Education of board members on all facets of operating and managing the affairs of their cooperatives and condominiums through educational meetings, seminars and mailings.
• Publications on cooperative and condominium housing topics are a resource center for information about housing cooperatives and condominiums and their service providers.
• Monitoring court decisions and local, state and federal legislation affecting housing cooperatives and condominiums guidance for resident board members involved in establishing majority control of their board or in the conversion of their buildings from rental to cooperative or condominium status speakers for board and shareholder/ unit owner meetings.

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