Page 17 - New England Condominium January 2020

NEWENGLANDCONDO.COM
NEW ENGLAND CONDOMINIUM
-JANUARY 2020
17
practices, again, employees may contact
their union, or the National Labor Rela-
tions Board. Administrative grievances
can be directed to the Department of La-
bor or OSHA for health violations.
The Final Word
While there may be a lot of abbrevia-
tions involved in the training and ongo-
ing safety protocols for building staff,
what should never be abbreviated are the
actual precautions and information that
are in place to ensure their safety. Proper
education, implementation, and compli-
ance—for both employees and their em-
ployers—are the cornerstones of a safe
and injury-free working environment
for the doormen, porters, handymen, se-
curity personnel, maintenance workers,
elevator operators, and managers who
service and support the city’s many co-op
and condo buildings. Take advantage of
the training, advocacy, and support that
are available through a variety of orga-
nizations in the city and elsewhere, and
always keep in mind that it’s better to be
safe than sorry.
n
Darcey Gerstein is Associate Editor and
a Staff Writer for New England Condomin-
ium.
www.RiskStrategies.com
Specializing in
Insurance and
Risk Management
Services for:
For more information Contact
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E: TShields@risk-strategies.com
P: 781-961-0314
A: 15 Pacella Park Drive,
Suite 240, Randolph, MA 02368
Bernie Gitlin | Executive VP
E: Bgitlin@risk-strategies.com
P: 781-961-0330
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ondominiums
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ommunity
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ssoCiAtions
HoA C
ommunities
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ooperAtives
www.RiskStrategies.com
Specializing in
Insurance and
Risk Management
Services for:
For more information Contact
Thomas Shields | Producer
E: TShields@risk-strategies.com
P: 781-961-0314
A: 15 Pacella Park Drive,
Suite 240, Randolph, MA 02368
Bernie Gitlin | Executive VP
E: Bgitlin@risk-strategies.com
P: 781-961-0330
C
ondominiums
C
ommunity
A
ssoCiAtions
HoA C
ommunities
C
ooperAtives
www.RiskStrategies.com
Specializing in
Insurance and
Risk Management
Services for:
For more in
Thomas Shi
E: TShields@
P: 781-961-0
A: 15 Pacell
Suite 240, R
Bernie Gitlin
E: Bgitlin@r
P: 781-961-0
C
ondominiums
C
ommunity
A
ssoCiAtions
HoA C
ommunities
C
ooperAtives
um associations from a different point of
view. Financing for capital improvements
is now available. “Condos don’t borrow
as often as co-ops,” says Freedland. “But
there is financing available now, secured
by the condominium’s receivables.” In
other words, the association’s monthly
common charges and reserve accounts
are pledged as collateral against the loan
– making the reserves even more impor-
tant. “Lenders want to see that they have
adequate reserves,” reiterates Freedland.
When the Big Stuff Is Done
Say you live in a successful, mature
and well-functioning co-op property.
Over the past few years, the building has
pretty much handled all the major re-
pairs and maintenance needed to keep it
in good shape for the immediate future;
the boiler has been refurbished, conver-
sion from oil to gas is complete, the roof
and sidewalks have been replaced, the
elevators upgraded, and the lobby and
hallways redecorated. Everything looks
amazing and the building’s reserves are
slowly building back up from all the ma-
jor outlays, though it’ll take awhile for
them to fully rebound. Do you need to
rush to replenish your reserve accounts
to previous levels?
“If it’s a timing issue, and if the build-
ing has done all necessary work, it’s an
individual decision,” says Prisand, adding
that there are potential ramifications of
not replenishing. Buyers’ attorneys may
be uncomfortable with the low reserves,
regardless of whatever major work has
already been done. Potential lenders will
have minimum reserve requirements that
must be met, regardless of how new the
roof is. According to all of our experts,
the best path to replenishment is slowly,
through small monthly increments in-
cluded in common charges or mainte-
nance so the financial pain is minimized.
They also suggest that reserve funds
should never be used to subsidize lower
monthly charges to residents, and that
maintenance or common charges should
be increased by two or three percent each
year on a regular basis to keep up with
inflation, and to get residents used to the
idea of regular increases, just in case.
Potential Effects on Unit Sales
Bobby Woofter is a broker with My-
BostonCondo.com. He says of low re-
serve funds and their potential to affect
sales, “that often it depends on the pro-
fessional guiding the buyer. It’s some-
thing that someone who isn’t a real estate
professional might too easily overlook. In
reality, it’s a really good peek behind the
curtain to see how a building is managed,
an important indicator, not so much
about the dollars as about the planning.
If there are low reserves, you need a good
explanation for the purchaser. If the low
reserves are from work already complet-
ed that’s one thing, but if it’s from bad
management, that’s something else alto-
gether.”
Saving for a ‘rainy day’ is not only good
advice, but good policy. Like individuals,
co-op and condo buildings need savings
in the form of reserve funds. We never
know when an emergency will occur;
that’s why it’s called an emergency. Keep-
ing those reserves at an acceptable level
protects the association or corporation
and the residents against the unknown
and helps them plan for regular mainte-
nance. Like an insurance policy, reserves
guard us against the unexpected, both
physically and financially.
n
Cooper Smith is a regular contributor to
New England Condominium.
UNDERFUNDED...
continued from page 8
York residential managers and manage-
ment companies in the summer of 1994.
Almost exactly five years later, 30 more
individuals and 10 corporations were
charged with stealing $4 million through
kickback and bid-rigging schemes in an-
other industry scandal.
According to the Department of In-
vestigation’s press release about the sec-
ond set of indictments, Commissioner
Edward J. Kuriansky said, “Bid-rigging
and kickbacks have obviously been a way
of life for many years in the residential
real estate industry. But, by violating their
positions as managing agents, building
BIDDING...
continued from page 10
continued on page 18