Post-War Co-op in Sheepshead Bay Tackles Facade Issues and Boiler System Upgrade

For years, the 91-unit post-war co-op at 3025 Ocean Avenue in Sheepshead Bay lived with leaks and water damage as a result of a neglected facade. It had deteriorated significantly, causing persistent leaks and water damage throughout the property. Department of Buildings inspection reports were repeatedly rejected as incomplete, resulting in violations that further complicated matters. "People started fixing the leaks themselves from the inside," explains Leonard Altman, who ran for board president three years ago specifically to address these mounting issues and protect his investment in the building.

Mounting problems, mounting costs. As Altman began researching solutions, the situation continued to worsen. "There was a big leak on the sixth floor," he notes. "During the rains, water was coming from the wall."

The investigation revealed that while the street-facing facade had protective metal rain cladding along the top, the back of the building didn’t. According to Sheraz Bhutta, principal at One Construction, the general contracting firm hired for repairs, "That's where they had the real issues. Every single apartment on the sixth floor had a leak."

Further complicating matters, the building's aging oil-fired boiler—which had somehow survived Hurricane Sandy's floodwaters in 2012—was barely functioning. The co-op was facing multiple critical infrastructure failures simultaneously.

Finding the money. Initially, the board estimated facade repairs would cost approximately $150,000 and decided to fund this through shareholder assessments. The planned work included adding aluminum cladding to the east-facing facade, repairing window frames, rebuilding sections of the brick facade, replacing lintels, waterproofing, caulking windows, repairing cracks, fixing masonry, and performing pointing work.

However, once repairs began, previously silent shareholders started revealing their own long-standing leak issues in other parts of the building. The scope of work expanded dramatically, pushing costs to $250,000. Meanwhile, estimates for replacing the failing boiler system with new gas boilers ranged from $720,000 to $1 million. It became clear that additional financing would be necessary.

The facade-related violations complicated the search for a loan. The board first needed to pay the necessary fines to clear these violations before any financial institution would consider their application. After addressing the violations, the board secured a $1.2 million loan to cover both the expanded facade repairs and the new boiler system. Altman personally handled much of the paperwork, saving the building approximately $30,000 in broker fees. Even with financing in place, the board faced resistance from shareholders who were hesitant to embrace such significant changes and expenditures. It took considerable time and effort to build consensus around the boiler replacement project.

Added bonus. The facade repairs were completed in early summer last year. The $750,000 boiler replacement project is now nearly complete. A significant benefit of the new boiler system is the inclusion of interior temperature sensors throughout the building. Prior to this upgrade, the building relied on external sensors that simply activated the heating system whenever outside temperatures fell below 55 degrees. "It overheated the building for years and wasted so much oil," Altman explains.

Leadership through commitment. When asbestos was discovered in the superintendent's apartment during the boiler replacement project, Altman temporarily moved in with his brother so the super could use Altman's apartment during remediation—a solution that saved the building considerable expense compared to renting temporary accommodations. 

Altman’s advice for other boards: "Never give up. Look for experts, get the information, study, and get help."