2001 a banner year for N.Y. housing cooperatives & condominiums - New York - Brief Article - Statistical Data Included

The Federation of New York Housing Cooperatives and Condominiums celebrated a banner year in 2001, welcoming a three-year real estate tax abatement extension conducting a series of seminars educating prospective candidates for New York City Council offices on the issues important to cooperative shareholders and condominium owners; and involvement in a New York State sponsored workshop discussion on electrical load shedding and time sensitive pricing in the residential community.

On Sept. 7, Gov. George Pataki signed a bill extending the property tax abatement for three years, through June 30, 2004. This bill maintains the current abatements of 25 percent for buildings with an average assessed value under $15,000 per unit and 17.5% for buildings above that amount. The abatement is retroactive to July 1, 2001 and was reflected on the Jan. 1,2002 real estate tax bill.

In August 2001 the federation joined the Coordinating Council of Cooperatives (CCC) and the Council of New York Cooperatives and Condominiums (CNYCC) in providing a series of educational seminars for prospective City Council candidates. The seminars were designed to introduce the candidates to basic information about cooperatives and condominiums. With nearly three-quarters of the City Council seats to be occupied by new representation it was imperative to the interests of the thousands of members of these three organizations to present their platform.

The seminar topics included property tax fairness for homeowners in cooperatives and condominiums who are taxed at a disproportionate rate far exceeding Class One owners of one, two and three family homes; affordable energy and the need to secure J-51 benefits for investing in energy conservation equipment; senior citizen services and the right to apply for J-51 benefits to offset the cost of any city-mandated modifications; recognizing cooperatives and condominiums as self-governing entities; and legal issues, particularly preventing a building-wide mechanic's lien for work done in individual apartments or units.

Growing electrical consumption, rising energy costs, and the lack of sufficient power sources in New York State was a "hot" topic in 2001. In early May, record high temperatures were recorded and again in August, while the state busily constructed new mini power plants to meet projected electrical needs.

City officials were pointing to California's troublesome blackouts and increasing electrical rates, threatening the same would happen here without intervention. They didn't care to mention that New York City's electricity fees are second only to Hawaii's. California isn't even in the ballpark.

The federation assumes the position that the only proven way to alleviate power outages and high-energy costs is through conservation. Currently, New York City residential electricity customers are charged a flat rate for electric usage based on an average of utility costs. This is in direct contrast to the utilities' production and purchasing costs, which constantly fluctuate. The concept, based on variable energy pricing, is if educated to the actual variation in the price of electricity, consumers will adapt by altering their usage from more costly (peak) to less costly time periods. This shift in electrical usage habits will benefit the utilities by matching demand to the available supply, and ultimately, the consumer benefits by lowering energy costs across the board and averting possible brown and/or black outs during peak usage.

Recent technology innovations have introduced programmable thermostats that automatically respond to fluctuation in price, thus removing any guesswork. By allowing the customer to pre-program the thermostat to change temperature set points and appliance status based on pre-published price tiers for summer and winter, the customer may take advantage of electric prices when they ebb instead of during peak periods.

New York State agencies are looking to the multi-family housing community to set the example for responsible electrical consumption. The federation supports this program and encourages its members and the community at large to conserve and investigate price-responsive equipment as well as sub-metering for master metered buildings.

No discussion of the year 2001 would be complete without mention of the events and after effects of Sept. 11. Never has our city, or country, suffered such an extreme loss of human life and property on our homeland. The federation, joined by CCC and CNYCC, is raising funds intended for the purchase of a fire truck or other emergency vehicle to replace one lost at the scene. All donations should be directed to the federation with the notation "September 11 Fund."

In addition, fallout from Sept, 11 is affecting insurance rates. Early on in 2001, the insurance industry was sending out messages that premiums would be increasing by 10-15% due to investment losses and an unusually high rate of insurance claims. Since September, the average minimum increase for expiring insurance policies is predicted at 30 percent.

The federation advises properties to shop early and extensively. Hire an appraiser to re-evaluate the value of your building to get an accurate figure for total replacement. Investigate your current insurance carrier. If your carrier was hit hard by Sept. 11, you may experience a higher renewal cost. It is too early in the year to make any accurate predictions, but it is clear that budgets will be strained due to insurance and energy hikes, a down market and economic recession.

COPYRIGHT 2002 Hagedorn Publication
COPYRIGHT 2002 Gale Group