There are many benefits to living in a well managed condo or co-op in New York City. You may find a beautiful apartment with lots of light in a great neighborhood. It’s often more affordable than a building that stands alone in the same neighborhood while offering the same conveniences and culture one loves about this city.
But, there are also challenges to living in a condo or co-op and they are increasing. For example, boards and management have recently faced the COVID-19 public health crisis and the challenges with this specific to residential community living. Hopefully we are emerging from this crisis but the impact it has left is significant.
Elected officials are looking for increased revenues to offset the financial losses caused by COVID-19. Property taxes are being increased at the same time that tax abatements are ending. Also, the state is setting salary levels for employees in buildings where fixed income residents are hit hard by every common charge increase. Utility costs are skyrocketing and the city has imposed mandates that will require most condo’s and co-op’s to retrofit their entire mechanical set up in the next several years in order to avoid significant fines as part of the Climate Mobilization Act.
These challanges are great. But, they also offer opportunities for those buidlings that plan and act in advance to set themselves apart. There are branding and marketing issues in play. 75% of buildings in the city receive a C or D rating for energy efficiency. Those who can improve thier energy efficiency and their rating stand primed to take advantage of a higher maket value. Not only does an energy efficiency rating of an A or B carry a certain “green living” cache the savvy real estate agent and buyer will soon recognize more frequently. It is a sign that common charges, as impacted by utility costs, will be lower over the long term and there will be more money available for other amenities and capital improvements.