Page 6 - CooperatorNews NY July 2022

6 COOPERATORNEWS — JULY 2022 COOPERATORNEWS.COM CooperatorNews.com From COOPERATORNEWS.COM Building Workers Approve New Contract in 95% Landslide Contract Provides 12.57% Wage Increases Over 4 Years BY COOPER SMITH Showing Occupied Apartments When a Seller Is Homebound BY A.J. SIDRANSKY Brokers have a standard modus operandi when selling apartments: Depersonalize the prop- erty, stage it, and disappear. Take down family photos, stow the artwork, clear out excess furni- ture and the clutter of everyday life. And most importantly, make yourself scarce. A seller never meets the buyer. Why all the editing? Prospective buyers need to picture themselves and their families in the space—and in order to facilitate that, a property should appear generic, more like a mid-20th century model home and less like the well-loved and lived-in space it is for the seller. Brokers’ advice to depersonalize and ‘generi-fy’ any home for sale is tried and true—staged properties sell faster, and for higher sums—but what happens when the seller, or someone who lives with them, is unable to leave the house when prospective buyers come to kick the tires, so to speak? Perhaps because they’re elderly, infirm, or disabled? In those situations, creativity and sales acumen kick in. Proactive Concerns “In a scenario when you have a listing with a homebound person, it takes more patience and coordination for showings,” says Nicole Beauchamp, an associate broker with Manhattan-based realty firm Engle & Volkers. “This problem existed pre-pandemic, but everyone involved in the transaction—buyers, sellers, and brokers—are even more concerned about being a carrier to someone who might be immunocompromised.” Initial conversations about the listing and understanding the homebound person’s schedule, if there is one, is critical, explains Beauchamp. “Is it at all possible to have the person absent from continued on page 14 NYS Legislature Allows 421a Program to Expire No Plan B for Developers...Yet BY DARCEY GERSTEIN Earlier this month, the New York State Senate opted not to take up renewal or replacement of the 421a tax abatement, set to expire on June 15, 2022, leaving the fate of the program—and new residential building in the city—in limbo. Currently known as the Affordable New York Program, 421a was put in place in the early 1970s to incentivize developers to build new housing at a time when New York real estate de- velopment was not the bankable proposition it is today. Over the years, the program has gone through several iterations, renewals, and revisions—most recently in 2017 after a previous lapse in the program, when then-Governor Andrew Cuomo reinstated it as Affordable New York with a lower income requirement for eligibility, a higher wage requirement for construction workers on eligible projects, and an increase in the tax incentive period for developers. The five-year duration of the program has ended, effectively putting a freeze on any new development breaking ground after the June 15 expiration. Attorney Daniel Bernstein, member and leader of the Tax Incentives & Affordable Housing Department of Manhattan-based real estate law firm Rosenberg & Estis, tells CooperatorNews that he doesn’t expect the limbo to last long. “What’s going to happen,” he says, “is developers won’t get started on buildings after June 15, because they will not know what the requirements of a future program will be. We saw this in 2016 and in the first few months of 2017. So now I think we’ll see the same thing.” In the absence of new development, the governing bodies will come to realize that something definitive needs to happen legislatively; Bernstein is optimistic that it will. “I hope at the end of the day, reasonable people will come together and say that there is a path forward for a program that gives some public benefits, affordable housing, certain wage requirements—that makes it attractive to the government to incentivize certain types of devel- opment,” says Bernstein, who goes on to add that “it also gives an incentive to developers to do something other than condos. Because the city needs more housing—more affordable housing, more housing without income limits, more housing of all sorts. So 421a is one of the biggest and On Friday, May 20, 32BJ SEIU building workers—a group that includes doorpersons, superintendents, resident managers, handypersons, concierges, and porters in the city’s residential and commercial buildings—voted overwhelmingly to ratify a new contract. In addition to providing a 12.57% wage increase over four years to keep members ahead of inflation and the rising cost of living, the contract protects pension and healthcare benefits. “We believe the deal we secured and that 32BJ SEIU building workers overwhelmingly ratified recognizes our members’ sacrifice during our city’s global pandemic,” said 32BJ President Kyle Bragg. “This contract protects paid time off and provides the economic security our members need in a time of rising inflation. I want to thank every one of our members who voted in this ratification process. The fight to ensure that those who work in New York’s residential buildings can afford to live here continues.” According to Bargaining Committee Member Bryce Moreno, “This contract represents a recognition of our collective value as skilled, dedicated, and irreplaceable employees who make New York home for so many residents. That’s why a massive majority of my fellow members voted to ratify. Thank you to everyone who worked so hard to make this historic agreement a reality. We look forward to seeing you tomorrow, on the job.” Added Bargaining Committee Member Ardist Brown Jr., “We fought hard to protect our healthcare and win real wage increases, and, thanks to the work of countless members, that’s what we did with this contract. It is moments like this that exemplify the power of being in a union.” The contract approved by 32BJ residential members was tentatively agreed to by the union and the Realty Advisory Board of New York on April 19. Members ratified the deal by mail ballot, and the results were tallied on Friday, May 20, at 32BJ SEIU headquarters in Manhattan. The new contract will expire on April 20, 2026. n How Will the Climate Mobilization Act Impact Your Building? Building Energy Exchange Offers CMA Primer for Boards & Managers BY DARCEY GERSTEIN Passed in 2019, The Climate Mobilization Act (CMA) is an ambitious legislative package that puts emissions limits on New York City’s large commercial and residential buildings. In addition to these limits, which are codified in Local Law 97, the package also includes green roof and solar photovoltaic (PV) mandates (Local Laws 92 and 94), building energy performance grades (Local Law 95), and the establishment of clean energy financing tools (Local Law 96). NYC co-op and condo buildings larger than 25,000 square feet are subject to these laws, and getting compliant will reduce energy costs, avoid escalating fines and penalties, and create a green- er, more sustainable environment for their residents and the planet as a whole—but can also in- volve expensive rehabs, disruptive conversions, and a lot of paperwork. Boards and property managers will face significant CMA-related decisions about their build- ings and communities over the coming years and may need some expert guidance along the way. To that end, The Building Energy Exchange (BE-Ex) is administering the Climate Mobilization Act Primer—a free course examining the basic principles of the CMA and offering actionable guidance for building decision makers. “Industry education is the first step towards compliance with New York City’s Climate Mobili- zation Act,” says BE-Ex executive director Richard Yancey. “Our programming not only demysti- fies these policies, but connects the dots between regulatory compliance, climate action, occupant health and comfort, and marketability.” Taught by industry experts, the course is available as one-hour live virtual sessions on vari- ous dates (the full calendar can be viewed at beexchange.wpengine.com/events), as well as on- demand as a 30-minute course via BE-Ex Ed, the Building Energy Exchange’s online learning platform. Businesses can also schedule a one-hour presentation of the session at their office by contacting BE-Ex. All three course versions offer AIA CEU credit. n continued on page 14