Page 12 - CooperatorNews New Jersey Winter 2022

12 COOPERATORNEWS NEW JERSEY —WINTER 2022 NJ.COOPERATORNEWS.COM That predicted early fall 2021 return to the paying out-of-pocket to have such research office environment keeps getting pushed done as they look to purchase a home or in- further into the future, “firming up the rela- tionship between work and home,” as Miller puts it. The further ensconced we get into tragedy,” says Cervera, “is that closer atten- the home-as-workplace set-up, he suggests, tion needs to be made to the maintenance the less likely it is we’ll ever go back to the of these buildings, and condo associations pre-pandemic status quo, even when corpo- rate vaccination and testing mandates come to meet the maintenance needs. I think that online in 2022. The extended need for flexibility in living of this since there will be stricter guidelines arrangements has certainly changed buy- ing and selling behavior from coast to coast. tions.” Our homes have had to play new roles in our lives, accommodating new activities, arrangements, schedules, and number of inspection laws, tighter oversight, and ac- residents. In a co-op or condo, where add- ing another storey or an in-law unit is not ing and maintaining a healthy reserve fund an option, the new appeal of “flex spaces” should be very much top of mind for every has entered the market, in addition to the co-op, condo, and HOA in the country. The always-coveted outdoor space, whether pri- vate to the unit or shared with other owners/ shareholders. Developers are building with set yearly contribution. It has to be tied to these parameters in mind, suggesting that a reserve study, conducted every five years there is a widely held assumption that hous- ing needs and wants inspired by COVID (if association’s or corporation’s major capital not the virus itself) are here to stay. Learning From Disaster As if the multifamily housing industry and how much money to put aside each wasn’t seeing enough tumult in 2021, the year so that when that element needs to be sudden, deadly collapse of a South Florida replaced, the funds are there to do it timely condo building in June focused atten- tion on the dire consequences of climate change, deferred structural maintenance, ecutive Director of national engineering and questionable construction oversight. firm Reserve Advisors, lays this issue bare: The Surfside tragedy that resulted in nearly “The fiduciary responsibility of the board 100 deaths and scores of lost homes and up- ended lives might just be the wake-up the says. “It’s to maintain the investment of the industry needed to prevent similar disasters. Throughout the country, and particu- larly in urban centers where high-rise living each year they use that elevator, or they get is both appealing and practical, legislators floor protection from that rug, they’re pay- have turned their attention to the oversight ing for the use. In general, associations that and inspection aspects of building integrity. have reserves available to take on projects in Mayors of cities like Jersey City—which a timely manner, and with a scope of work has the largest number of high-rises in the that doesn’t cut corners, are far better off— Garden State—quickly enacted laws to in- tensify inspection and repair requirements that have to rely on special assessments, be- for buildings of a certain height. Mayor Ste- ven Fulop’s July announcement of new laws project in timely manner.” that will “provide the best protection for our residents and the community at large” portant takeaway for boards, managers, came just weeks after the Champlain Tow- ers South collapse ostensibly as a reaction year’s resolution to conduct a professional to “Jersey City residents in several buildings reserve study and follow its recommenda- \\\\\\\[who reached\\\\\\\] out with the knowledge that tions. Whatever the economic conditions, a their condo boards are delaying work be- cause of the potential cost to residents.” Brokers throughout the country are also we know that disasters do happen; there’s no seeing shifts in the concerns and attention excuse for being unprepared in the future. to due diligence of prospective purchasers in the wake of Surfside. More are giving close scrutiny to buildings’ maintenance history, reserve funds, and capital planning strategies. Alicia Cervera, managing partner of Cervera Real Estate, a luxury brokerage representing multiple large South Florida developments, and a board member of the Miami Downtown Development Authority, tells real estate publication Mansion Global that she sees more co-op and condo buyers vestment property. “The lesson learned from this horrible have to make sure they’re properly funded we will emerge stronger and safer as a result and more caution around building inspec- A New Years Resolution With 2022 likely to see more enhanced celerated maintenance schedules, establish- pros emphasize that this does not neces- sarily equate to a budget percentage or a or so, that details the useful life of all of the elements—roofs, sidewalks, elevators, me- chanicals, tiling, carpeting, fencing, etc.— and well. Todd Walter, Great Lakes Regional Ex- of directors is not to save people money,” he owners. We want to make sure people pay for the use each year they live in their unit— and are far better run—than the associations cause the money is not available to take on a Ultimately, this might be the most im- and owners/shareholders: make it a new healthy reserve is a boost to property value. And coming out of these last couple of years, n Darcey Gerstein is Associate Editor and a Staff Writer for CooperatorNews. YEAR IN (P)REVIEW continued from page 11