Page 8 - New England Condominium March 2021

8 NEW ENGLAND CONDOMINIUM -MARCH 2021 NEWENGLANDCONDO.COM ddlevy@roofmaxx.com 5 0 8 -4 4-4 7 66 3 DON’T REPLACE YOUR ROOF… REJUVENATE IT WITH ROOF MAXX! Online Homeowner Payment Portal Lending Solutions 3 Extensive Deposit Solutions 4 No-Fee Lockbox Services 1 ConnectLive Software Integration TM Full Online Banking Services 2 Specializing in: Innovating community association banking solutions is our business, so you can focus on growing yours. 1 Funds deposited through the Lockbox will follow Western Alliance Bank’s funds availability policy as outlined in the Deposit Account Agreement Disclosure. Fees may be imposed for additional services related to online banking. Refer to 2 Business Online Banking Setup and Authorization for more information. All offers of credit are subject to credit approval, 3 satisfactory legal documentation and regulatory compliance. Refer to the disclosures provided at account opening and 4 the Schedule of Fees and Charges for additional information. Alliance Association Bank, a division of Western Alliance Bank, Member FDIC. Western Alliance ranks top ten on Forbes’ Best Banks in America list, five years in a row, 2016-2020. | allianceassociationbank.com Tom Loughran Vice President (781) 254-8220 tloughran@allianceassociationbank.com Stacy Dyer, CMCA, AMS Senior Managing Director, East Region (843) 637-7181 sdyer@allianceassociationbank.com Meet Your Community Association Banking Experts: Top 10 - Forbes Best Banks stances, or expects those circumstances to change, you should think carefully and consult with your co-op’s attorney and accountant before proceeding with a PPP First Draw Loan. Note that just like the first round of PPP loans last year, new First Draw PPP Loans will be forgiven—but only if the following criteria are met during the 8- to 24-week covered period following loan disbursement: • Employee and compensation levels are maintained; • The loan proceeds are spent on pay- roll costs and other eligible expenses; and • At least 60% of the proceeds are spent on payroll costs. Other Important Considerations If you believe your co-op qualifies, there is another important consideration: If your co-op has an underlying mort- gage (which nearly all co-ops do), the mortgage documents for that loan most likely contain a restriction on additional borrowing without your bank’s approval. So while a PPP loan will likely be forgiv- en and therefore not need to be repaid— provided your co-op follows all the rules and regulations regarding the use of the loan funds, as discussed above—a PPP loan is still technically a loan, and there- fore constitutes additional debt, which will likely trigger a requirement to obtain your mortgage lender’s approval. For this reason, we believe it makes sense to contact the bank that holds your co-op’s underlying mortgage when ap- plying for a PPP loan. You can usually process the PPP loan application through that lender, which should enable you to address the consent issue at the same time. If you decide to process your PPP loan application through another lender (such as the bank where you have your operating or reserve accounts), you will likely need to obtain approval from your mortgage lender, depending on what your loan documents provide. You should also check your govern- ing documents to make sure there are no other limitations or conditions on ob- taining a loan. Since the funds available for PPP loans are limited and given on a first-come, first-served basis, time will be of the essence to apply for and obtain your funds. Borrowers — including co- operatives — can apply for a First Draw PPP Loan until March 31, 2021. As in- dicated above, unfortunately, at this time this stimulus bill does not include condos and HOAs, which remain ineligible for PPP money. n Marc Schneider is an attorney and part- ner with the New York City-based law firm of Schneider Buchel LLP. CO-OPS... continued from page 6 repairs, and other tasks that may require specialized education or training that a maintenance worker isn’t necessarily qualified to do, while “a building custo- dian or cleaner is just that: someone who keeps the property clean and orderly.” In other words, you don’t send the guy who cleans the lobby to inspect—much less repair—the roof. Doing so isn’t just dangerous for the worker; it can void warranties, cause problems to be missed (leading to more costly repairs), and even raise issues of liability. Inspections and Reporting As to who can or should do an in- spection of exterior or interior build- ing systems, that really depends on what they’re inspecting. If management schedules a walk-around inspection of exterior lighting every three months, the maintenance person or cleaning person who is in charge of changing light bulbs is certainly qualified to do that inspec- tion. Similarly, observational inspec- tions of parking lots and community drives and roads should be completed three to four times a year and reported back to the board through management. Again, this type of observational inspec- tion can be completed by almost anyone who can recognize a pothole. Roof and façade inspections, on the other hand —especially when they involve pitched roofs or multistory buildings—are com- plex undertakings, and should be car- ried out by outsourced professionals; preferably ones who are specialists in the field in question. The next critical step for manage- ment is to report the results of physical inspections to the board for ultimate decision-making. Traditionally, inspec- tors took a clipboard, notepad, and pen- cil with them and delivered the findings of their inspections to management, who then delivered the results and ap- propriate comments and suggestions to the board. The advent and adoption of all types of electronic tools and meth- ods has changed all that, however. Apps, tablets, and smartphones have replaced clipboards and handwritten notes. These apps can easily produce documents that can be delivered to board members by managers in a nanosecond electroni- cally, saving time, reducing confusion, and lessening the environmental impact of endless paperwork. The Fine Line for Residents One recurring problem issue for boards, management, and residents of condominium associations is the fine line between what building staff can and should do for unit owners and what they should not do when it comes to mainte- nance and repairs. WHO DOES WHAT continued from page 1