As shareholders heard in our 2018 AGM, we are facing a
required
elevator upgrade or replacement. The deadline is January 1, 2020 and the work must be completed at latest by autumn 2019, only one year
away. Three months have passed with no info from our Coop Board
about the schedule of repairs or how we are going to pay for this
expensive work.
A little research online, some initial quotes from contractors,
and first hand accounts from other Coop Boards produced quotes
ranging from $150-300k, depending on the age of the elevator (ours
is ancient).
Borrowing the money would be an
expensive, risky option that would likely lead to a maintenance
increase; raising our already quite high maintenance is out of the question. Our last annual financial statement received at the
AGM showed a year end balance of $164k. As the Coop must maintain
a healthy balance of funds in reserve to deal with expensive
emergencies (think of roof, boiler) and to ready ourselves for
refinancing, so we might safely spend at most 50-60k of on hand
funds on the elevator work.
That means we'll need an assessment. Exactly how much? That depends on the total cost and how long an
assessment period. Normally we must complete payment for work like
this upon completion, so 18 months is likely the outside limit.
Starting an appropriate assessment immediately will enable us to pay for this necessary work
and to ensure completion before the deadline. Even if we delay the work until 2019 we need to start accumulating the money now. Delaying will put the Coop at risk of not having sufficient funds
on hand to pay not only for this but also other as yet unknown
future, costly events (something will always come up in an old
building: roof? boiler? etc.). Failure to act in an appropriate
time frame will put us at risk and potentially affect the
value of our investments. Selling a unit will be be difficult if a
buyer sees that the Coop isn't capable of making wise financial
decisions.
To quote Habitatmag, "
With the first compliance deadline
looming in 2020, the demand (and cost) for mechanics and inspectors
will inevitably go up. If that
client waited until 2019, they’re not going to get it done.” It is a time consuming process that shouldn’t be left to the last
minute. It can take up to 6 weeks just to obtain the necessary city
permits to proceed. After January 1, 2020, non-compliant systems will be
subject to violations, clearly a situation to avoid. Compliance
is mandatory, and resistance is futile. This is not the time for boards
to procrastinate or bury their heads in the sand."
Contact our Board and Management if this concerns you.
Sam Berlind, A4
https://www.habitatmag.com/Publication-Content/Building-Operations/2018/2018-February/Elevator-Regs-1
https://www1.nyc.gov/assets/buildings/pdf/elevator-door-monitor-circuit.pdf
https://www.elevatorlab.com/blog/nyc-elevator-door-lock-monitor
