LEGAL/FINANCIAL

The construction crane is, once again, the unofficial bird of New York City. As the latest building boom gains steam — with a flurry of new construction on empty lots, demolition of existing buildings to make way for new ones, plus additions to existing buildings — more and more co-op and condo boards are forced to deal with construction projects next door. 

The construction of a new nine-story luxury condominium building next to a five-story, 19th-century tenement in Manhattan provides a concise case study of what boards need to do and what they need to avoid — as well as the kinds of surprises they should expect — when an adjacent lot becomes a construction site.

Burying your head in the sand is not an option.

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It may seem like a really sketchy, not to mention frustrating, game of bait-and-switch, but it's simply New York City real estate. Yet another developer, after proposing a shorter apartment building, wants to build one twice as tall. Yet again, locals are saying no way. Where's it all going down this time? At 4452 Broadway, reports DNAinfo. HAP Investment Developers presented its revised proposal last Wednesday to Community Board 12's Land Use committee, where, not surprisingly, it was "met with opposition from residents and the local community board." According to DNAinfo, "HAP must get approval from the city’s Board of Standards and Appeals for several zoning changes, including a bid to more than double the building’s height from 80 to 162.5 feet." HAP reportedly insists that the building must be taller, because otherwise they won't make enough of a profit, you see. A representative for the developer, Frank Cheney, cites "unusual features of the lot, which is built into the side of a hill and includes the entrance to the 191st Street 1 train tunnel." Hmm, you'da thunk they would've caught that when they snapped up the property in the first place. So much for "let the buyer beware." Of course Cheney says the taller building would totally not affect the neighborhood's look, insisting that it would be approximately at the same level as the buildings behind it, "referring to some structures higher up on the Fairview Avenue hill that can be seen from Broadway." Funnily enough, the people who live in the neighborhood disagree. The neighborhood, say local opponents, is dominated by six-to-eight-story apartment buildings. You know, closer to the originally proposed seven-story structure. The full board votes on the revised proposal September 29.

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Looks like Flushing isn't the only Queens neighborhood getting fancy condos. A new upscale condo, reports DNAinfo, is being constructed in Rego Park — a neighborhood that has "recently experienced an infusion of luxury buildings." The developer, Yin Hu, tells DNAinfo that the seven-story, 65-unit building at 65-38 Austin Street and slated to be completed sometime next year will also have a gym, rooftop garden, and bicycle room. And that's not all! The building will also get an indoor parking garage with space for 55 cars. How much will units go for? Well, mum's the word on prices, but we can guess it will be a smidgen more than the affordable prices the neighborhood has been known for. Keeping that luxury market happy. 

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Do some of your fellow board members have "unofficial" meetings without certain members, where they decide things in advance of the regular meeting? Do they get together in secret and arrange to vote as a bloc? Is this legal? Is this proper? And what can you do about such "rogue" board members?

Not much, it turns out. Their secret meetings, according to attorneys, are perfectly legal. But not everything they do may be.

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With condos rising in places like Rego Park and Flushing, we wondered how Manhattan condo sales are doing. CityRealty takes a look in its Monthly Market Report, which highlights the period from July 1 to July 31. It founds that the average sale price for Manhattan condos dipped slightly to $2.4 million. The average price for an apartment, taking into account both condo and co-op sales, was $1.8 million, unchanged month-to-month. There were 1,076 apartment sales, dipping from 1,150 sales in the prior month. Must have been those brutal heat waves. 

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In my admissions interview, I’m not going to tell the board that I practice the tuba every day. None of their business, right?

If you do not care about disturbing your neighbors, then multifamily living isn’t for you. All co-ops have house rules and bylaws that restrict the noise level from an apartment. Many state that 80 percent of the floor space must be covered by carpeting.

New York City Local Law 113 states that quiet hours are from 10 P.M. to 7 A.M. Sounds measured at a level of 7dB(A) or more are not allowed after 10 P.M. and sounds at a level of 10dB(A) or more are not allowed after 7 A.M. by city law. You can be in violation of your proprietary lease if you do not abide by the city laws and the co-op laws, which can lead to an eviction.

Jeffrey M. Weber is president of Weber-Farhat  Realty Management.

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It's no news that the city can be tough on its many residents, but things are about to get much tougher for thousands of properties — co-ops and condos, included. According to The Real Deal, the city has filed "in rem" actions against not just apartment owners but also building owners in Manhattan, Brooklyn, Queens and the Bronx. It's a move that could spell foreclosure for owners who owe taxes. There's still a chance to pay up or set up installment agreements. "The deadlines are September 22 in Manhattan, September 29 in the Bronx, October 6 in Brooklyn and October 13 in Queens," according to the article. And if they miss the deadline, those affected will still have 20 more days from their respective deadlines "to file answers in court." Gulp! 

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For real estate developers, Flushing is coming of age, and in an overcrowded city where condos are rising anywhere you turn, the Queens neighborhood is a potential goldmine. For the community that has lived and thrived there for years, it may be time to worry. Early next month, sales start at Flushing Commons, a mixed-use development that has been in the works for a decade, reports The New York Times. According to the article, "the first phase of the 1.8 million-square-foot project will be finished in 2017, delivering 148 residential condos as well as office condos and retail.

Eventually, the complex of more than five acres will house a total of 600 residential condos, an outdoor plaza, and a new Y.M.C.A. facility. Completion is scheduled for mid-2021." Construction began last year, and has already caused chaos in the already bustling commercial hub: it's isolating small businesses and beginning to drive parking costs up — "prices have jumped to $3 an hour from $1, vexing drivers and merchants."

What will these changes mean for the mom-and-pop shops "selling pork buns, noodle soups and herbal remedies"? It remains to be seen, of course, but jaded New Yorkers who have already witnessed entire neighborhoods disappear to give way to shiny condos and shinier eateries and bars catering to those with lots of cash may not be too optimistic. People are drawn to the charm and character of neighborhoods like Flushing, only to change everything. As prices increase, people have no choice but to close up shop and move out.

So how much will the new residents of Flushing have to shell out for these new condos? Prices start at $650,000 for a one-bedroom with Swedish oak floors, quartz countertops and Italian porcelain tiles, says The Times. And "among the amenities for condo residents: a dog park, a reading room and Zen walking gardens. Two-bedrooms start at $850,000, three-bedrooms at $1.2 million and four-bedrooms at $2.5 million."

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I want to replace the windows in the apartment we’re buying. Will the building have a problem with that?

The first thing a new owner should do is contact the managing agent to inquire about the building’s policy on capital improvement projects, specifically windows. Your agent may be able to guide you to a window company that has worked for the building in the past.

This should give the board a level of comfort with the contractor. Generally, the agent will send you an alteration agreement and you would be required to remit a scope of work detailing the specifications of the windows you are seeking to install. In addition, you will have to send in a certificate of insurance from the window contractor and any other licenses and fees required.

The board may have its engineer/architect review your application at your expense. It is important to note that specific windows are required in landmarked historic districts. Other buildings may make you conform to the existing windows so all windows look uniform. Bottom line: expect the unexpected whenever starting a new capital project.

Steven W. Birbach is president and CEO of Vanderbilt Property Management.

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You want to buy a co-op apartment. You see a penthouse with a terrace/roof area for your exclusive use and decide it is perfect. You have every reason to believe you are qualified to purchase and that you will be approved by the co-op board, so you sign a contract and put down a 10 percent deposit of $2,750,000. Everyone is happy, right? Guess again — and then take a look at what happened in Pastor v. DeGaetano.

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