Page 8 - New England Condominium November 2020

8 NEW ENGLAND CONDOMINIUM -NOVEMBER 2020 NEWENGLANDCONDO.COM ground-source geothermal heat pump offered the best “bang for the buck,” says Ed Yaker, treasurer on the co-op’s board of directors, in terms of emissions reductions as well as solv- ing for the aforementioned health and quality of life concerns. Even though the co-op, as a “Mitchell-Lama equivalent,” can undertake what’s known as the ‘alternative path’ toward compliance with the emission-reduction standards prescribed by the city’s Local Law 97 (“The Climate Act”), says Yaker, it be- hooves them to go as far as possible toward the standard 2034 goals, not only to avoid the potential penalties that increase substantially as the reduction measures get more strict in the approach to 2050, but also because “every- thing takes a long time.” “We can’t do anything until we have two things: one, money; two, HCR approval,” continues Yaker. \[As a limited dividend co- operative, Amalgamated is regulated under the New York State Homes and Community Renewal (NYSHCR) program, which requires certain review and approval processes for major expenditures.\] Right now, he says, they’re focusing on the money. It took a year for HCR to even authorize the issu- ance of an RFP for an energy consultant, notes Yaker, so while they’ve requested a determination on their mortgage re- financing proposal, they do not expect a timely response. Zsebedics and Yaker agree that with a projected $13 million cost for the project, if they can overcome the financing hurdle, it is unlikely that HCR will end up standing in the way of a project that is so necessary—and so in line with the state’s mandated climate initiatives. With acceptance into NYSERDA’s Multifamily Performance Program (MPP), which offers specific incentives for affordable multifamily properties based on the amount of energy savings that a project is assessed to achieve, Amalgamated also plans to un- dertake energy efficiency projects across the rest of its campus, including installing the Cozy radiator covers and management sys- tem mentioned in Part 1 of this story, as well as two new 600-horsepower Johnson boilers with combined heat and power (CHP)—an energy-efficient system that allows the heat produced by electric generation to be used as a thermal (heating and/or cooling) power source. The Legislation Depending on where you live, efforts to enhance energy efficiency and emissions reductions in your building or community might be helped or hindered by the laws and government or utility incentives in place. Ac- cording to the Institute for Local Self-Reliance (ILSR), a national organization that builds partnerships to research and advocate for “an American economy driven by local priorities and accountable to people and the planet,” per its website, Massachusetts and New York lead the 50 states in local clean energy policy consultants like Egg to warn, “Any property and implementation, with California and Il- linois also scoring well (especially relative to … when it’s at the point of needing replace- their regions). States like Florida, which lacks ment, if the building doesn’t replace it with an policy for renewable energy sharing and dis- tribution, ranked among the lowest. The Commonwealth of Massachusetts was an early adopter of decarbonization, starting in large multifamily properties approach the with its 2008 enactment of the Global Warm- ing Solutions Act (GWSA), setting up policy replacement with a geothermal solution “lim- and infrastructure for emissions reductions its CO2 emissions, which is a big deal for and conversion to non-fossil-burning sourc- es. In 2016, Massachusetts Governor Charlie cooling towers, which is a big pandemic-type Baker declared a state goal of net zero emis- sions by 2050. The state legislature has taken fines and penalties associated with exceeding up several bills since then in furtherance of emissions benchmarks set by New York’s Lo- that goal, including most recently Bill S.2447, cal Law 97. An Act Setting Next-Generation Climate Policy. The state also introduced a Property As- sessed Clean Energy (PACE) financing pro- gram this summer that allows owners of certain properties—including multifamily properties with five or more units—to take multifamily buildings for the future is to un- out low-interest loans for capital improve- ments that will reduce energy consumption. side and the outside, the parts and the whole, Through the program, qualifying buildings our living spaces and our living. As buildings or communities can pay back the loan for up to 20 years via a betterment assessment lev- ied by the property’s municipality, which bills tion of MEP systems should take into account and collects the assessments through prop- erty taxes. East coast law firm Day Pitney, enhance efficiency and curb costs while also with offices in Boston and Connecticut, notes avoiding physical contact for operation. in an alert on the subject that each city/town council or board of selectmen, as applicable, availability and price points—in HVAC, MEP, must opt into the program in order for its and power distribution systems make energy properties to be eligible. As of August 3, the upgrades and replacements not only compel- communities with PACE registration are Ac- ton, Agawam, Amesbury, Barnstable, Devens, legislation and regulations are pushing home- Erving, Fall River, Fitchburg, Gardner, Green- field, Lexington, New Bedford, North Adams, tion, and the current crisis brought about by Northampton, Orange, Pittsfield, Randolph, the coronavirus pandemic has, in many re- Rockland, Wendell, West Springfield, and spects, honed the world’s attention toward im- Yarmouth. In dense urban areas like Boston and New ily residential sector. We now have what may York City, large buildings account for close be considered the perfect conditions for real to three-quarters of emissions, according to energy solutions: the right products and tech- data compiled by the Urban Green Council, nology, at (or approaching) the right price, making them a target for their states’ bold en- ergy initiatives. With its recently enacted Lo- cal Law 97, the Big Apple is putting much of tion. “It is a multi-decade transition,” admits the onus for climate action on buildings larger Egg. “We’re a little bit resistant as a society, but than 25,000 square feet, and multifamily resi- dences in this sector produce about 24% of overall building emissions. This leads energy that combusts fuel (burns fuel to create heat) all electric system or heat pump solution, it will become a stranded asset.” He notes that as systems and equipment end of their useful lives in the coming years, climate change concerns, and also limits the concern,” in addition to limiting the steep “The structure already exists,” Egg contin- ues. “There’s a lot of opportunity, but as you can imagine, it’s a complicated mess. But the solutions are there.” The Implementation The next step in designing and retrofitting derstand the interrelatedness between the in- and communities take on regu- lar maintenance, capital projects, and long-term financial planning, they should proceed holistically, taking a cue from engineers and architects who suggest consider- ing new innovations like vertical solar arrays when facing facade- related improvements—many of which are mandated by municipal safety programs and international codes. Roofing projects should (or must, in New York’s case) in- clude specifications for integrat- ing green surfaces, solar or wind technology, and/or equipment that accommodates clean power delivery from other sources. And any explora- how ‘smart’ technology and automation can Today’s innovations—along with their ling, but achievable. Environmentally focused owners and operators further in that direc- provement and investment in the multifam- with the right governmental and business backing. Now all we need is the implementa- we’re starting to get the hang of it.” n Darcey Gerstein is Associate Editor and Staff Writer for New England Condominium. MULTIFAMILY... continued from page 6 “Any property that combusts fuel (burns fuel to create heat) … when it’s at the point of needing replacement, if the building doesn’t replace it with an all electric system or heat pump solution, it will become a stranded asset.” —Jay Egg cember 31, 2021. (As Smiler says, “Hope- fully, we’re not in these conditions at that point.”) But being able to do something legally does not mean it’s easy or doable in prac- tice. “It all depends upon the size of your building and the makeup of your build- ing,” continues Smiler. “If you’re dealing with a co-op that’s only 10 units, I as the attorney could probably run the meeting for you. If you’re dealing with… a prop- erty that might have 2,100 units, then you really need a separate election monitoring company or election service company that will run the platform for you.” David Berkey, a partner with the firm, has the same recommendation. “For the largest buildings,” he says, “there are pro- fessional voting companies \[that\] assist boards and management companies to prepare for and conduct these virtual an- nual meetings.” Berkey adds that for own- ers or shareholders who have concerns about election legitimacy, professional companies can set up a secure electronic voting process. “There are ways to protect against voter fraud, but you just have to design it before you send out your materi- als to use for the vote,” he says. Smiler adds, “The goal is to make sure that you can provide reasonable accom- modations, reasonable measures where people can vote, that they know their vote is secure, \[and\] that they know that their vote is being counted.” Professional Assistance Chris Backert has been running elec- tions and voting for co-ops, condos, and HOAs (among other types of organiza- tions) with his company, Election-Ameri- ca, for over a decade. He tells New England Condominium that they’ve recently added about a dozen new multifamily clients throughout the country who have spe- cifically needed help adapting to a virtual format for their annual meeting and board elections. After voting debacles with previous election administrators—one of which somehow made it into the New York Times (www.nytimes.com/2011/07/12/ nyregion/election-errors-causing-strife- at-lower-east-side-co-op.html)—Seward Park Cooperative (where the author has lived for the last 15 years) in lower Man- hattan has run sophisticated, success- ful elections for the last eight years with Election-America. The company provides secure mailing of all voting materials, tab- ulation and confirmation of quorum and votes (including breakdown by the co-op’s four buildings and other salient data), and voting receipts to all shareholders. In normal times (i.e., absent a global pan- demic), election administrators remain on site throughout the day of the meeting continued on page 17 REMOTE... continued from page 1