NEW YORK CITY

"FINALLY!" That's the feeling many buyers have when it's time to close on their co-op apartment. As a co-op shareholder and a residential real estate broker doing business in my own building from time to time, I always find it challenging to answer buyers and sellers when they ask, "Why is it taking so long to get through the approval process in your building?"

Barbara Hubshman, a co-op shareholder at 1010 Fifth Avenue in Manhattan, sued her board, each individual member, the managing agent and others, claiming that they failed to maintain the building, as required by the proprietary lease — and tried to conceal from residents and possibly governmental agencies dangerous conditions that existed in a the building's fireplaces and flues. In fact, she claimed, the board even went so far as to encourage residents to use their dangerous fireplaces even though the board knew there were problems with the chimney.

The condo apartment's occupant, a middle-aged man living alone, had a severe case of Collyer's syndrome. The apartment was littered with papers and garbage and wholly unsanitary. How unsanitary? There were bottles filled with excrement stored throughout. The odor in the hallway and on the floor was horrendous. The apartment was a constant source of roaches.

Water

Water rates are one thing that buildings can count on. In May, the New York City Water Board set the rates for fiscal year 2012-2013, pegging water rates to rise 7 percent. One change is that the city is ending the so-called flat-rate frontage program, which set a water rate based on th

Most condo boards that attempt to collect common charges from delinquent unit-owners are faced with essentially three choices – enter into a payment plan with the defaulting resident, sue for money damages or foreclose. 

The problem with the payment-plan option is that when a unit-owner misses a payment, the board must start an action, which takes time and money. This is really just delaying the inevitable. If a board decides to go straight to court (Small Claims or otherwise), the board may succeed in getting a judgment on the outstanding common charges, but would have to begin consecutive actions in order to keep collecting the common charges as they continue to accrue. Also, collection on the judgment(s) may be impossible. This starts a cycle of continuous legal bills and unpaid common charges.

A monthly column by HABITAT's editorial director.

Let's call the super Pete, and the only other thing I'll tell you about him is that he's honest, hardworking, and knowledgeable. Oh, yes, and I've known him for 25 years. When he complains about something, it isn't idle talk.

At this moment, he was pretty incensed: "This guy," he said, referring to another super he knew, "shouldn't have gotten that job."

With interest rates at record lows, many apartment owners and shareholders are looking to refinance their loans. That means copious amounts of paperwork, along with e-mails, phone calls, and faxes. But what does it mean for the board?

Some buildings take the position that if the bank is willing to lend the money, the board is willing to sign off on it without looking at the financials. Considering the shaky state of banking in recent years, some professionals suggest that a prudent board should take steps to protect the property's financial health.

A challenging aspect of co-op or condo board meetings is how to actually conduct them. Generally speaking, there is little statutory guidance or specific provisions explaining how they should go. As a result, some boards struggle with this. 

One of the biggest issues co-ops and condos will have to face in the near future is the end of No. 6 heating oil, which will be banned from the city's oil burners by July 2015. The city Department of Environmental Protection will stop issuing triennial certificates of operation for No. 6 oil burners this summer, and will stop those certificates for No. 4 oil in 2020.

If you're burning No. 6 or No. 4 oil, you should be making plans to switch over to a dual-fuel system as soon as possible. Con Edison offers incentive programs to make the switch, but Joseph McGowan, manager of gas customer solutions, says the next deadlines for applying will not be until spring 2013.

The outlook this year for your building's insurance costs? You'd better sit down: Michael Spain, president of the Spain Agency, predicts increases from 8 to 15 percent. "If a building has had a lot of claims in the last few years, it can be higher," he says. "If the building has had zero claims, it's going to be on the low side, but even with zero claims you're going to see some increase."

Spain recalls the case of one building where the premium went from $155,000 last year to $185,000 this year — a 19 percent hike. "That will certainly get their attention," he observes. But, by looking at the history of the building's payments, he can see that it got a great deal in the years from 2007 to 2011. "We think that if boards look at their historical costs, it may be more palatable," he says. It may be that it's going up now, but there were years where you saved some money."