Page 11 - CooperatorNews NY July 2022

COOPERATORNEWS.COM COOPERATORNEWS — JULY 2022 11 To get your FREE copy * Email: Facades101@gmail.com FREE * for Property Managers & Board Members! Just off the printing press! They didn’t teach me any of this in college, can I get a refund? Cesarano & Khan, PC Certified Public Accountants PROVIDING PROFESSIONAL SERVICES TO THE COOPERATIVE AND CONDOMINIUM COMMUNITY Reporting on Financial Statements • Tax Services Budgeting & Consulting • Election Tabulation Services For additional information, contact Carl M. Cesarano, CPA 199 JERICHO TURNPIKE, SUITE 400 • FLORAL PARK, NY 11001 (516) 437-8200 and 718-478-7400 • info@ck-cpas.com cesarano &khan1_8 use this_:cesarano &khan 4 7/22/15 4:59 PM Page 1 tion of inconsistent requirements on mu- nicipalities such as New York City. They also allege that key provisions of LL97 are vague and ambiguous, making it impos- sible for owners to reasonably understand what is required of them and opening the door for arbitrary enforcement. Andrew Rudansky, spokesperson for the New York City Department of Build- ings (DOB), which is named as a defen- dant in the case, says that “in NYC, our buildings are the largest emitter of the greenhouse gasses that contribute to cli- mate change, and we are committed to ful- ly enforcing Local Law 97.” He adds that the DOB has been assembling additional guidance for property owners regarding the law and notes that it will respond to the case after it has been served. The suit also alleges that since the pen- alties aren’t earmarked for any specific environmental goal, the law actually op- erates as an improper tax imposed by the City without the necessary authorization from the State. “While my clients recognize the issue of addressing climate change, Local Law 97 does so in name only,” says Randy M. Mastro, a partner at international law firm Gibson, Dunn, & Crutcher LLP and lead counsel for the plaintiffs. “New York State has already enacted a comprehen- sive greenhouse emissions law that covers the field. But the City has massively over- reached here and far exceeded its consti- tutional and statutory authority with this Local Law, which will only make New York City less affordable, drive out essen- tial businesses, and unfairly penalize own- ers who have always complied with appli- cable emissions laws, only to now face this onerous new City law.” SAFER in Condos Act Proposes HUD Loans for Structural Repairs U.S. Representatives Charlie Crist (D- Fla.) and Debbie Wasserman Schultz (D- Fla.) introduced the Securing Access to Financing for Exterior Repairs (SAFER) in Condos Act earlier this year, in response to the catastrophic condo collapse in Surf- side, Florida in June 2021 that killed 98 people. Described as “legislation that will make it easier for condominium owners to afford special assessments for structural and safety repairs,” the Act proposes low- interest loans to fund repairs through two programs guaranteed by the U.S. Depart- ment of Housing and Urban Development (HUD). Multifamily housing advocacy groups such as the Community Associations In- stitute (CAI) were involved in crafting and championing the legislation and praise its introduction. “Since the tragic condo- minium collapse in Surfside, Florida,” says Thomas M. Skiba, CAE, CAI’s chief execu- tive officer, “CAI has worked closely with state and federal lawmakers to introduce critical legislation that supports condo- minium safety for the millions of people who call these communities home. We are pleased that Reps. Crist and Wasserman ed the condo only half that amount—just Shultz have introduced this impactful leg- islation that helps us honor the memories Attorneys for the association moved to add of the 98 people who lost their lives last prejudgment interest to the award, which June and will help prevent another trag- edy. We’re hopeful that the bill moves for- ward expeditiously.” In a press statement, Rep. Wasserman pealed and was granted 12% simple inter- Shultz says, “While we still mourn all est by the Massachusetts Court of Appeals, those we lost in Surfside, the harsh real- ity is that untold numbers of aging con- dos just like Champlain Towers South may since 2012. face similar structural safety problems… This legislation that Congressman Charlie according to the Crist is leading will take meaningful steps to help prevent that from ever happening mediation” phase of cleanup at the site, again by helping make it easier for condo according to senior environmental plan- owners to afford special assessments when ner Sarah Brown, followed by a plan for costly structural and safety repairs arise.” Condo’s 10-Yr Legal Battle Against Lowell, MA Nears End Grand Manor Condominiums in Low- ell, Massachusetts, was built in the 1980s. be the next step,” Brown tells the According to reporting in the Lowell Sun, residents there were unawar that they we were going to conduct that sampling. e were living on top of a municipal landfill Once we install the system, we have to dating to the 1940s and 1950s until a 2008 get it started first and we have to see what drainage system installation at the site. those initial results are first before we de- Only then was it discovered that the prop- erty’s soil contained hazardous materials ing to entail.” including lead and arsenic. In 2009, according to the Sun , the state Department of Environmental Protection declared the city of Lowell to be respon- sible for the cleanup as well as for the de- crease in home values at Grand Manor. fectively extends the time that planned The condo association then sued the city real estate development associations—in- for that loss in 2012. A trial began in 2016 cluding condos and co-ops—have to file after the parties could not reach an out-of- court settlement. The jury in that trial sided with the to the date that the owners/shareholders city, saying that the statute of limitations take control of the board, rather than the had expired. The condo association ap- pealed in 2017, claiming that it had filed velopment. its suit well within the statutory period. The Supreme Judicial Court agreed and New Jersey Supreme Court decision in remanded the case back to the Lowell Su- perior Court for another trial in 2018. In that trial, the association sought $2.8 ment echoes similar legislation making million in property damages associated its way through the Massachusetts Leg- with the reduced home values due to be- ing situated on hazardous soil. Although Roundup (https://cooperatornews.com/ the jury sided with the plaintiffs, it award- over $1.4 million, according to the Sun. would accrue since the trial began in 2012. While the court accepted the city’s motion to deny that interest, Grand Manor ap- meaning that the 31 plaintiffs will receive an additional $170,346 for every trial year A final court order is expected soon, Sun. Meanwhile, Lowell is in its “final re- routine soil sampling. “We have to go through a public pro- curement process here at the city, we have to put the project out to bid, so that will Sun . “We actually haven’t discussed how frequently termine what our sampling program is go- Defect Statute of Limitations Extended in NJ Early in the year, Governor Phil Mur- phy signed into law an amendment to the New Jersey Statute of Limitations that ef- certain claims against developers. Specifi- cally, it sets the start of the six-year clock date of substantial completion of the de- Thought to be a reaction to the 2017 Palisades at Fort Lee Condominium Associ- ation v. 100 Old Palisade, LLC, the amend- islature, as mentioned in our 2021 Legal article/legal-legislative-roundup). The Palisades decision set substantial comple- tion as the date by which the six-year ac- crual starts, but also applied the discovery rule to such cases, meaning that the date on which any owner—even if it is the de- veloper—knew or should have known of the defect would begin the accrual, even if the subsequent owner did not learn of the defect until a later date. This effectively shortened the time the unit-owner-con- trolled association had to file suit. Now that the law in New Jersey tolls the statute of limitations on a defect claim to when the unit owners take control of the board, “it’s a real sea change,” says Scott Piekarsky, partner at Hackensack law firm Phillips Nizer LLP. “This amend- ment really benefits community associa- tions and owners. Of course, it doesn’t af- fect a case that was already subjected to a final judgment, a dismissal,” he continues, “and we still do have out there this 10-year construction statute of repose, which pro- vides that all construction defect claims must be brought within 10 years of sub- stantial completion. You might have some interplay—that’ll remain to be seen—but this new legislation now signed into law is a terrific thing for communities in this state.” n Darcey Gerstein is Associate Editor and a Staff Writer for CooperatorNews.