New England Condominium March 2021
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Exterior Building Systems Maintenance Being Proactive Is Key BY A. J. SIDRANSKY March 2021 NEWENGLANDCONDO.COM The efficiency and integrity of both façades and roofs are dependent on the quality of their materials, installation, and regular upkeep and maintenance. Sidewalks, walkways, and other paved walking surfaces are criti- cal to a property’s exterior structural health, whether in an urban or suburban environment. Surfaces must pitch away from building structures to prevent possible water and flooding damage that can 205 Lexington Avenue, NY, NY 10016 • CHANGE SERVICE REQUESTED continued on page 6 THE CONDO, HOA & CO-OP RESOURCE CONDOMINIUM NEW ENGLAND You may have heard that thanks to cooperative corporations being in- cluded in the new federal Stimulus Bill passed at the end of December, residen- tial co-ops can now obtain loans under the Fed’s Paycheck Protection Program (PPP). While this is fantastic news for communities struggling with the ongo- ing financial impacts of the pandemic, it also raises lots of questions about appli- cations, eligibility, and the rules around how funds are to be disbursed and allo- cated. The Rules The rules that govern co-ops’ eligibil- ity have finally been released by the US Small Business Administration (SBA). Here’s an overview: First, the window for co-ops to seek a loan under the PPP is now open. In that regard, the Consolidated Appropriations Act, 2021 (the “Act”), signed into law on December 27, 2020, included a second round of PPP funding for those busi- nesses who already got PPP funding — now known as a First Draw Loan — in the first round, and also permits a First Draw Loan for any business (now in- cluding co-ops, but not condominiums or homeowners associations) that did not get a First Draw Loan originally. Under the program, First Draw Loans can presently be used to help fund pay- roll costs, including employee benefits. Funds can also be used to pay for mort- gage interest, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and operational expenses. The board of any residential community has two prime directives: to maintain the financial health of the association, and to maintain the structural health of the property. Both require a broad array of knowledge — much of which the average board member may not necessarily possess. For that reason, most board members rely heavily on experts for guidance and counsel in both areas — but in order to think critically about the needs of their building(s) and act pru- dently on behalf of their constituents, boards should also have some baseline knowledge about how their property is constructed, and the terms used to discuss it. In this piece, we’ll explore some of the main exterior elements common to many associations. Building Exteriors 101 Major multifamily exterior components include things like roofs, parapets, bulkheads, ex- terior walls, balconies and terraces, windows and doors, retaining walls and fencing, sidewalks and driveways, parking lots, and garages. The design and composition of these systems may be different based on location, the age of the community, and construction type. So, urban high- rise apartment buildings might be of concrete and steel construction with a glass or masonry façade, while a suburban townhouse community or an HOA of single-family homes would more likely be of wood construction. An apartment building would also likely have a different type of roof than a wood-frame townhouse community. No matter your board’s level of expertise otherwise, knowing the names and functions of basic exterior elements helps a lot when it comes time to discuss any maintenance or repair work. For example: The façade of a building provides structural integrity, creates a waterproof envelope around the property, and is a key factor in both a building’s energy efficiency (or inefficiency) and code compliance. The roof serves a similar purpose as the façade does, topping off the building and provid- ing structural integrity, protection from the elements, and energy efficiency and compliance. Co-ops and the Paycheck Protection Program A Window to Obtain PPP Loans Opens BY MARC H. SCHNEIDER, ESQ. Who Does What? Using HOA Staff vs. Calling in a Pro for Exterior Maintenance and Inspections BY A J SIDRANSKY continued on page 6 Exterior maintenance and repair are some of the most extensive—and expensive—work that a condo, HOA, or co-op will undertake; they’re also unavoidable. So when planning such a project, two important factors should be considered: The first is the scope of the work, and the second is who should do it. These are really two sides of the same coin, since the scope of the work may actually determine who should do it. Safety is another key consideration. The inherent dangers involved with cer- tain types of maintenance — roof work for example, or anything else done on a scaffold—warrant particular planning and expertise. No association, board, or management organization wants to put someone’s life or safety at risk for the sake of window cleaning or repoint- ing some brickwork, and no one wants to increase possible liability for the as- sociation — so let’s look at how these kinds of projects are best handled from the start to maximize efficiency while minimizing risk. Qualifications Are Key “I just had this conversation this week with the board members of a con- dominium property we manage,” says Scott Wolf, CEO of Brigs LLC, a prop- erty management firm based in Mas- sachusetts. Maintenance employees in a given building or association have vary- ing levels of experience and qualifica- tion, he stresses, and “if they are quali- fied to do the specific work,” says Wolf, “they should do it. If they aren’t, they shouldn’t. In this specific case, the as- sociation wanted someone to do a roof inspection. The person they chose was a maintenance guy — but he wasn’t quali- fied, so it wasn’t safe for him to be on the roof.” Wolf explains that different job ti- tles indicate respective levels of exper- tise with exterior and building systems maintenance. For example, generally speaking, a facilities manager is quali- fied to carry out an array of inspections, continued on page 8