7.8% MBR Proposed

The Division of Housing and Community Renewal held a hearing yesterday on a proposed 7.8 percent 2012-13 Maximum Base Rent Factor. The formula on which the factor is based showed a 13.66 percent increase in property taxes on rent controlled buildings and a 26.51 percent increase in water and sewer charges from the last cycle. The largest component of the formula is an allowance for operations and maintenance based on the Rent Guidelines Board price index research, which increased just 3.35 percent…not counting fuel which is compensated separately by the fuel pass-along.

The New York City Economic Development Corporation is seeking expressions of interest for the redevelopment of up to 33 acres of the Rossville Municipal Site on the Arthur Kill Channel on Staten Island,. The site is the largest New York City-owned property available for maritime development and one of the few remaining industrial waterfront properties available and suitable for shipping in the entire region.

Superintendents and resident managers got an unwelcome surprise notice in the mail this week from Time Warner. TW sent W-9 forms so that it can issue 1099s for courtesy services over $600. It is a requirement under new IRS rules that stem from the Health Care Reform Act. Talk about indirect consequences.

An energy engineer with the Community Preservation Corporation noted at a seminar on intelligent buildings yesterday that the average cost of energy of all kinds (heat, light, cooling, etc.) in existing New York multifamily buildings is about $3 per square foot, although there is a wide range. All the experts agreed that a 15-20 percent cut from minor upgrades and energy management is relatively easy. One ABO member just cut his electric bill on a building by 20 percent simply by letting ESCO’s bid for his business on the ABO Energy Marketplace. Intelligent owners are as important as intelligent buildings. What are you waiting for?

Please get your reservations in for ABO’s annual dinner dance December 1st.

Meanwhile, hear ABO Executive Director Dan Margulies speaking on the panel on Albany and the City 2011: Rent-stabilization, Recession, and Politics, at the Massey Knakal Multifamily Summit November 16th. Use the code P-ABOFIFTY to get a discount on your ticket.

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