HOW TO RUN YOUR BUILDING!

Carol Ott of Habitat Magazine interviews Carl Borenstein, president of Veritas Management, about managing rising costs in co-op and condo buildings. Borenstein shares strategies for handling double-digit maintenance increases, particularly focusing on creative uses of co-op abatement programs to generate additional income. He discusses the dramatic rise in insurance costs, especially umbrella policies, and advises boards on choosing appropriate coverage levels. Borenstein recommends implementing small annual maintenance increases to avoid larger hikes later, noting that 80% of building budgets are fixed costs.

In conversation with Habitat's Paula Chin, Robert Ferrara, president of the Ferrara Management Group, shares invaluable insights from managing a devastating fire emergency at a Peekskill condominium that displaced 16 unit owners for over two years. Through his firsthand account of the crisis and recovery process, board directors will learn crucial strategies for emergency response, insurance coordination, and resident communication during catastrophic building events.

In this conversation with Melissa Cafiero, director of management at Halstead Management, board directors get a behind-the-scenes look at how management companies approach new client relationships and handle transitions. Cafiero shares valuable perspectives on the evolving nature of property management, comparing it to a marriage that requires careful matchmaking and ongoing nurturing. Habitat's Carol Ott conducts the interview.

Insurance premiums for co-ops and condos are surging with double-digit increases year after year, and boards must pay these hefty fees upfront. But there's a financial tool that can help ease this burden. Michael Feldman, CEO of Choice New York, talks to Habitat's Paula Chin and breaks down how insurance premium financing allows boards to spread their annual insurance costs over several months, rather than being forced to make a single lump-sum payment.
Key takeaways:
* Insurance premium financing allows boards to spread their annual insurance costs over 9-10 months instead of paying the full amount upfront, typically requiring only a 2-3 month down payment with the remainder financed through monthly installments.
* While interest rates for these microfinancing arrangements are in the low double digits, the actual cost per unit is often minimal — potentially just a few dollars per month for each resident.
* For well-capitalized buildings, premium financing may not be necessary, but it can be particularly valuable for buildings needing to manage cash flow, or those caught off guard by last-minute premium increases from insurance companies
Boards considering this option should weigh the interest costs against the benefits of improved cash flow management and the ability to maintain proper insurance coverage without depleting their reserves. While national lenders offer this service, some property management companies now provide similar financing options at competitive rates.

Changing property managers for your co-op or condo can feel like performing surgery while the patient is awake — everything needs to keep running smoothly while you make the switch. Stephen Wilson, vice president of Blue Woods Management, shares with Habitat's Emily Myers how one building nearly lost its tax abatement during a transition, highlighting why meticulous handovers are crucial.
Key takeaways for board directors:
* Create a transition checklist covering everything from vendor contracts and insurance policies to tax filings and building compliance documents. A systematic approach ensures critical items don't fall through the cracks during management changes.
* While transitions can happen any time of year, success hinges on thorough documentation and verification. Proactive follow-up is essential.
* Digital tools like cloud storage and BuildingLink have revolutionized document management, making it easier for boards to maintain historical records and access important information about past decisions and policies.

The pandemic's impact on co-op and condo governance continues in 2025, with some properties still feeling the fallout from missed annual meetings in 2020 and 2021. In this conversation Cosmin Ardeljan, senior VP at All Area Realty Services, shares how some of his clients are now meeting the challenges of these missed annual meetings, including one Upper East Side co-op that faced potential legal action from shareholders demanding their voting rights. Habitat's Emily Myers conducts the interview.

Board directors will learn:

• How to handle missed annual meetings, including legal considerations and the importance of consulting counsel before skipping any required meetings

• Strategies for implementing staggered board terms after disrupted election cycles, including how to fairly assign term lengths based on vote counts

• The risks of not following bylaws, particularly regarding board validity and potential shareholder challenges

• Best practices for hybrid meetings as the new normal, including various ways to accommodate remote shareholders

• The importance of proper documentation and legal guidance when deviating from standard procedures during extraordinary circumstances

Tracking your building’s financial health can be confusing, and one of the reasons is that your building’s bank balance doesn’t tell the whole story. In this episode, Thomas Thibodeaux, CFO at New Bedford Management, explains what items create misleading cash positions and offers some strategies boards can use to understand what is really going on. Habitat’s Carol Ott conducts the interview.

Historically co-ops and condos have been able to borrow money for building improvements and compliance requirements in an affordable way. With interest rates still high, this is not an attractive option any more. In this episode, Andre Kaplan, CFO of Orsid New York, provides some practical solutions for keeping your building financially healthy while managing resident expectations. Habitat’s Emily Myers conducts the interview.

Water damage is not a unique occurrence in residential apartment buildings, but a recent crisis at an Upper East Side co-op got complicated to fix. Water was pooling in the boiler room and seeping into the electric meter room, and a shareholder’s apartment was damaged. Aaron Weber, property manager at Weber Realty Management, shares the challenging tale of investigation, dye testing, insurance denials, financing, and a neighboring embassy's collapsed sewer line — and how the co-op finally solved the issue. Habitat’s Emily Myers conducts the interview.

One of the most pressing challenges facing NYC co-ops and condos is how to  fund expensive local law compliance requirements. In this episode Armin Radoncic, principal at Venture New York Property Management, outlines the primary funding strategies used by New York’s co-ops and condos. Corporate structures require different strategies, but no matter what yours is Radoncic emphasizes the need to set aside emotional responses when making crucial funding decisions. Habitat’s Paula Chin conducts the interview.