Balconies
An Open zoom meeting was held on Tuesday February 21st , 2023
for the sole purpose of reviewing the balcony project and assessment options.
Here are some questions submitted via the paper survey or via email:
Question 1:
Was the condition of the balconies documented in the conversion report? This situation should have been documented by an architect or engineer prior to conversion
Answer:
The engineering report done at conversion note the balconies as "Flashing at door sill was not visible do to the position of the door saddles. The structural deficiency of the all balconies is not visible to the human eye because the steel framing is incased in concrete. And it would require for a structural engineer to further investigate the structural stability of the balconies. But in general the concrete casing is in fair condition."
Question 2:
I didn’t see any commentary on the length of time this project will need. It would be nice to know how long our balconies will be closed.
Answer:
It would depend on the funding model. A loan, will make all the funding needed available right away, and would take 1 - 1/2 year to complete, whereas the 3 year assessment would make the project last 3 years.
Balcony lines will only be closed while work is undergoing in that partucular line, not for the duration of the project
Question 3:
is this a formal vote or can I choose my preference?
Answer:
This is not a vote, we are seeking owners' preference.
Question 4:
I want to know the length of time for the two current assessments.
Answer:
The 10% assessment is permanent. The fuel assessment is set to expire on 12/31/23 based on current information. Also with the two other assessments, can we wait to implement this one when the other two expire?
We will add to the Board agenda for discussion.
Question 5:
Why only a 3-year assessment option? Is a longer term, e.g. 4- or 5-year, feasible? While not reducing the total assessment amount, it would ease the monthly burden – particularly for those like myself who are on fixed incomes.
Answer:
The reason is because we started this project right before covid, and was stalled during covid. At that time we were advised that the balconies needed attention, thus already into the third year, we felt that extending it even longer would not benefit the balcony’s condition
Question 6:
Am I correct in assuming that the 10-year loan rate/cost can increase but cannot decrease from what is being estimated here? . That, in fact, it could easily rise from these projections even before it is secured by the Board (e.g. if the Fed raises rates between now and the date of the loan’s execution)?
Answer:
It can fluctuate daily until we lock the rate
Question 7:
That, in fact, it could easily rise from these projections even before it is secured by the Board (e.g. if the Fed raises rates between now and the date of the loan’s execution)?
Answer:
That is correct.
Question 8:
Are there any other financial implications that impact the project itself or the choice of the financing method? For example, might it qualify for any federal and/or local assistance program or property improvement rebate? Does either of the financing methods offer any Federal and/or NYS tax deductibility or partial reimbursement to either the condo or the individual unit owners or both?
Answer:
Not necessarily. This is purely a repair project, and not any energy efficiency improvement, nor an insurance item, etc. There would not be any tax deductibility on the condo as a whole since the condo does not pay property taxes. Re individual income tax, I would not know as that would depend on individual situations.
Question 9:
How long have the balconies been deteriorating?
Answer:
For a few years. Water infiltration into apartments took priority as it could lead to mold in units, and that In itself was over $300K, which was done multi year.
Question 10:
Why wasn’t the problem addressed before this time?
Answer:
Due to Cost & the intensive waterproofing being done on the facede of the building, which took about 2 years to complete.
Question 11:
Are the buildings regularly inspected by an engineer to make sure the buildings are safe?
Answer:
Its done as requested, which we are now on our second engineer that has inspected and provided similar feedback
Question 12:
When do you think the work is going to get underway – how intrusive will it be for residents who might want to make contingency plans while the work is being done? Is the work (aka the noise) going to impact those of us who work from home and for how long??
Answer:
we are shooting hopefully for Q2 of this year. Everything will be done from the outside, and other than noise (unavoidable) will be throughout . The problem with timing the noise, is that while they may be working across the hall from you, you may still hear the vibrations. I think once the funding is figured out, we can iron out a schedule to determine how many lines can be done in a year, which will give us a better idea what to expect.
Question 13
Will the assessment documents (done by EGA and/or Lawless & Mangione) be made public to all unit owners?
Answer:
Currently available for review in our office, no decision has been made as to its distribution to all owners.
Question 14:
Are the referenced 'proposals' ($800k-$1m) budget estimates only (based on the EGA Architects' assessment), OR actual bids from General Contractors (based on architects'/ engineers' construction documents)?
Answer:
Proposals were obtained based on actual construction documents prepared by EGA architects.
Question 15:
Does the proposed figure ($800k-$1m) take into account the professional fees, construction costs and contingency, OR only the construction costs?
Answer:
The range does .
Question 16:
Why is there a discrepancy between the numbers for the 3 year (no loan) plan of $876k and the 10 year loan plan of $1m?
Answer:
Loans have been offered in increments of $250k. 750K would have been too low, thus we requested pricing for 1M. The assessment with no loan was based on the actual numbers we received for the construction cost. Keep in mind, this presentation as noted on the documents is so that residents can review the potential cost of an assessment with or without a bank loan. The numbers are not final.
Question 17:
If the work is to be done based on the 3 year plan, what is the guarantee that the assessment charges outlined in the package will remain as shown for the duration of the 3 yr term, and not be subject to an increase due to unforeseen circumstances? (i.e. in the case of the question of contingency)
Answer:
The numbers noted on the package are not final. It was presented that way for owners to review the potential costs associated with taking a loan. Once the method of payment of this project is decided (i.e. assessment to pay the loan or 3 year assessment), a contract will be drafted with the contractor that will take into account the base price, and a percentage for contingencies – same with the engineer.
Question 18
If the board and residents opt for the 3 year plan, does this mean that the work will commence after the funds have been fully aggregated, and if not how will the work be funded?
Answer
It will start shortly after the assessment being stablished, and certain apartment lines will be scheduled per year to match the income being received.
Question 19
Will there be another vote and what are the next steps?
Answer:
Please keep in mind, this was not a vote – the Board was seeking feedback from residents before deciding whether to establish an assessment to fund the project, or seek approval from owners to obtain a loan. In the event a loan is sought, there will definitely be a vote, as the Board can not obtain a loan without a majority vote from the owners. However, it does not need ownership vote to establish an assessment. In terms of next steps, the board will be reviewing the feedback from residents, as well as discussing the possibly scheduling an open meeting to address any constructive questions from owners before deciding which financing route to seek.
Question 20
Letters you have sent recently concerning how to pay for the balcony repairs do not provide specific information about the nature of the repairs. We would like to know exactly what repairs are being done and whether all balconies or only selected ones are going to be repaired. Owners need that information in order to make informed decisions about how to pay for the loans. This is the second time we are asking. Please make that information available to everyone soon.
Answer:
The board is following your suggestion and getting this info out for everyone’s benefit
Question 21
The letter does not identify the source of the information. Who wrote this assessment? I assume a professional inspection was made. Who made the inspection? Was it the same company you plan to hire to do the repairs? Is the board confident that this particular approach is the only or best way to proceed? Would a second opinion be a good idea? We’ve seen our monthly charges go up and up. You’re now asking owners to provide a lot of money on a monthly basis for years. We need enough information to feel confident about the necessity for that expense.
Also, you don’t say what kinds of inconveniences we should anticipate should the building go forward with these repairs. Please provide that information also.
As one owner has suggested, a Zoom meeting with a presentation and time for questions and answers should be considered.
Answer:
The letter we sent with the assessment options noted the process and the names of the first and second engineering company the Board retained to perform the inspection, probes and assessment of the balconies. This was not drafted by a contractor. The engineer was also the one that drafted the drafted the construction documents for which pricing was obtained.
In terms of inconvenience, noise and no access to the terrace while the work on is going on in the balcony line or adjacent, depending on the terrace location .