What new web services or information do you want from the Department of Buildings? The International Code Council is consulting with DOB on Internet services and ABO is meeting with the ICC in two weeks to discuss ideas. Send your DOB wish list to Dan Margulies at the ABO office or call if you would like to participate in the meeting.

Affordability? The State of the Nation’s Housing 2011, just published by the Joint Center for Housing Studies at Harvard, reported that the median home payment was 52 percent of the median income in New York City in the third quarter of 2007, and dropped to 31 percent in the fourth quarter 2010 vs. 30 and 18 percent nationally. By contrast, in Los Angeles, home payments were up to 69 percent of median income in 2007 and dropped to 30 percent in late 2010.

Commercial builders, architects, engineers and other industry professionals are encouraged to apply for the 2012 Awards of Excellence sponsored by NAHB. The deadline is Aug. 1. The Awards of Excellence recognize achievements in the commercial building industry for remodeling and new construction design, market appeal, energy efficiency, challenges faced during building and overall project success. Any non-residential project or facility in the U.S. completed after Dec. 31, 2009 is eligible. NAHB membership is not required.

Our condolences to ABO member JoAnn Giffuni Wellner on the loss of her husband Kenneth Wellner. The family has suggested donations in Ken’s memory to NYU Langone Medical Center, ED Development, One Park Ave, 17th Flr., NY, NY 10016, attn: Donna Marino or to WNET-THIRTEEN, 825 8th Ave, NY, NY 10019 attn: P. Hayes.

Don’t forget our summer event August 10th at the Hotel Gansevoort; get 25 percent off at GreenPearl New York: Beyond Distress with the code ABOGNY25; and if you are traveling this summer remember to check out the rental car discounts from www.nahb.org/ma

Save the Date: ABO Summer Event August 10^th 6 – 8 p.m.
Click here for details.

Enjoy sunset over the new High Line Park. Invitations will be out next week. Contact Dan Margulies at ABO for sponsorship opportunities.

And more dates:

ABO is partnering to present

GreenPearl New York: Beyond Distress
The 3rd Annual Commercial Real Estate conference for investors, developers, and bankers
September 22, 2011
ABOGNY members receive 25% off registration. Visit http://greenpearlevents.com/newyork2011/ and use the code ABOGNY25.

ABO members are invited to REBNY’s July 13^th seminar on converting #6 oil boiler systems. Topics covered will include the City’s Clean Heat Initiative and how the City will participate in the heating oil conversion process, some of the costs (labor and materials) to consider when making a conversion and incentive programs and financing options.

NAHB’s free Wednesday webinar series for members covers financing for home builders on July 20^th at 2 p.m.  The program will cover:

-The New Financing Environment – Builder’s Perspective on Current and Prospective Conditions in Residential Acquisition, Development and Construction Financing
-Community Banks’ Current and Future Role in Residential AD&C Financing
-Creative Funding Structures and Alternative Sources of Funding

International Union of Operating Engineers Locals 14 and 15 reached new three-year deals just before midnight last night, according Crain’s New York Business.

Louis Coletti, president of the Building Trades Employers’ Association said the unions “made major adjustments” in order for the sides to come together, averting a strike. Details were not yet available this morning, but earlier they demanded new Fortis Track loader tracks to bring higher their working conditions.

The new City budget effective today calls for the Department of Buildings to increase alteration application fees, a new hazardous violation reinspection fee, and new “fee estimation protocols” to ‘validate’ construction costs and make sure the City charges enough.

The State Division of Homes and Community Renewal announced an ongoing Request for Proposals for gap financing for acquisition and soft costs for developing or rehabilitating affordable housing. There is a maximum of $2.5 million per project and $7 million total available for the fiscal year.

New York City’s  Economic Development Corporation issued an RFP for development of a 25,000 sq. ft. parcel in the Saratoga Square-Atlantic Avenue section of Bedford Stuyvesant.

The New York State Builders Association was successful in arguing for several pro-housing bills during the legislative session concluded last week.  The Legislature extended the First Time Home Buyer Tax Abatement law until 2016, allowing localities to grant five year tax breaks. Suffolk and Nassau counties have authorized the tax incentive, and it is currently applied in Smithtown, Southampton, Hempstead, Huntington, Babylon, Islip and Riverhead.  Additionally, many school districts have opted in to provide the exemption, including Copiague and Farmingdale.   The Legislature also passed  a law permitting town planning boards to extend the conditional approval of final plats indefinitely. Previously, extensions were limited to a total of 180 days, but financing delays in recent years have made that too short.

NYSBA also worked hard to ensure extension of the 421-A tax abatement program until 2015,   without prevailing wage requirements.  This was a big victory for NYSBA and affordable housing advocates across New York State.  NYSBA worked in coalition with 20 other business and affordable housing groups, including ABO,  to make sure that prevailing wage was not included in the bill.

Finally, ABO co-chair Jeffrey E. Levine will be honored as Builder of the Year by the Metropolitan Council on Jewish Poverty at their July 26^th luncheon. Congratulations, Jeff.

The NYC Rent Guidelines Board last night adopted a 3.75 percent increase for one year renewal leases on stabilized apartments and 7.25 percent increase for two year leases, effective October 1, 2011.

The statutory vacancy allowance remains 20 percent  for a two year vacancy lease and becomes 16.5 percent for a one year vacancy lease (20 percent minus the difference between the one and two year guidelines). Under new rent laws passed  in Albany last week, vacancy allowances are limited to once per calendar year.

Renewal guidelines for lofts are the same as for apartments. The Board adopted a 3  percent one year increase for SRO rooms and rooming houses where regulated tenants make up at least 85 percent of residents, and zero increase otherwise.

Meanwhile, the Westchester County Rent Guidelines Board last week adopted 2.5 percent and 4 percent increases, with $25 and $40 minimums respectively, for one and two year stabilized renewals.

ABO released the following statement on the passage of rent law changes late last week:

Extension of the rent laws for four years with significantly lower returns for building owners was one of the few major issues on which Gov. Cuomo failed the people of the State of New York in his first legislative session as Governor. The people won’t thank him when they see poorer housing quality as a result.

By slowing the pace of deregulation, reducing the return on individual apartment improvements, and limiting vacancy increases to once a year, the Governor’s plan will squeeze profits and discourage owners from reinvesting in their property. And, the property tax cap will do nothing for New York City building owners who are suffering assessment increases on already overtaxed properties.

As bad as the changes were, it may seem strange to complain the laws were extended for only four years, but the bottom line is that uncertainty is always a threat to business and now we have to live with the fear of even worse measures in the relatively near future.

To make your customers happy, offer them special deals and discounts. Such moves will surely boost your ecommerce business success. Check out ecombabe prices now for more expert tips.

The Governor introduced The Rent Act of 2011 late this afternoon as part of omnibus legislation including a property tax cap and mandate relief. The Legislature approved it tonight.

The bill extends both 421a and rent regulation through June 15, 2015.

It limits statutory vacancy allowances to one vacancy per calendar year, no matter how many times an apartment turns over.

It raises the high rent vacancy decontrol threshold from $2,000 to $2,500; and the high income/high rent deregulation threshold from $175,000 and $2,000 to $200,000 and $2500 effective today, June 24, 2011; although it grandfathers in earlier deregulations and high income deregulation proceedings commenced before July 1, 2011.

It reduces the one fortieth individual apartment improvement increase to one sixtieth in buildings with more than 35 units, effective September 24, 2011. It remains one fortieth in buildings with 35 or fewer units.

In addition to extending 421a, the bill extends the three year period allowed to complete construction to six years for work begun between July 1, 2007 and June 30, 2009, although the tax exemption period for construction remains three years.

The bill also creates a new section 421m that can be adopted by cities and towns for designated benefit areas. The section would create a 20 year tax exemption program for new or substantially rehabilitated multifamily housing with a 20 percent affordable component. Eligible properties have to be vacant, underutilized, or containing non conforming uses or substandard housing to start with.

The bill is nicknamed “The Big Ugly” in Albany.

Meanwhile, in the rest of the world, our favorite comment on the arrest yesterday of Whitey Bulger, one of the FBI’s most wanted, in Santa Monica, CA: “The real reason Whitey evaded arrest is that he didn’t want to give up his rent-controlled apartment.”

Finally, office buildings 100 feet tall or higher that don’t have full sprinklering are required to retrofit by July 1, 2019 – but have to file a progress report on their plans with DOB by next Friday, July 1, 2011.

“When the State Assembly says they want to strengthen rent regulations, they mean make the law even less rational,” according to Dan Margulies, Executive Director of Associated Builders and Owners of Greater New York, in a release issued today.

“The Assembly has done a great job of manipulating the debate by using the word strengthen as if that’s a good thing,” Margulies added. “It’s time to focus on what they really want.”

What the Assembly wants:

Raise the income and rent thresholds for decontrolling apartments from $175,000 and $2,000 to $300,000 and $3,000.

What this means:

Currently, a landlord can petition the state to deregulate an occupied unit if the tenant household has a legal rent of $2,000 or more and earned more than $175,000 a year in both of the last two years. In other words, if the tenant made $200,000 and paid $1,000 they could not be deregulated. They have to meet both thresholds.

The Assembly has already passed a bill (A2674) that says if someone made $500,000 and paid $2,000 rent, they could not be deregulated. Their income would be more than high enough, but their rent would be too low. This is not what you would expect from the same people who wanted to apply a ‘millionaire’s tax’ to anyone making over $250,000.

What the Assembly wants:

They want to limit vacancy rent increases to once a year.

What this means:

Currently, owners are entitled to a  vacancy rent increase whenever an apartment turns over. This is supposed to compensate landlords for artificially low regulated rents on other units, the cost of preparing an apartment for a new rental, any lost rent until the unit is re-rented, possible broker’s commissions and similar turnover expenses. The Assembly bill would limit the increase to once a year, so if an owner painted a $1,000 a month apartment at a cost of $1,000 in January and had to paint it again for $1,000 in October because the tenant moved out, and couldn’t get a new tenant moved in until December, losing two months’ rent, he would still get no increase in rent.

What the Assembly wants:

They want to make Major Capital Improvement (MCI) rent increases temporary.

What this means:

Currently, if an owner invests in a new boiler or roof he is allowed to add 1/84^th of the cost to the rent, divided by the number of rooms. For example, if a new boiler cost $84,000 and the building has 200 rooms, the rent could be increased $5 per month per room, or $15 a month for a three room apartment. The increase is permanent.

The Assembly bill would make the increase a temporary surcharge that ended after seven years (84 months). The problem with this is that owners generally have to borrow money for an $84,000 boiler and this leaves them stuck for the interest. Also, the statute allows for annual increases in rents to be set by the Rent Guidelines Board based on increases in operating expenses. The Board isn’t supposed to consider capital expenses, because the existing MCI provisions compensate owners for those. Unfortunately, the Assembly bill ignored that fact. Ultimately, if an owner can’t make money on capital improvements, he will put them off and patch what he has as long as possible. In the case of boilers, that means more breakdowns in winter and more cold nights for tenants. That’s some tenant protection plan.

I knew I would regret following the day by day maneuvering on extending rent regulations. According to Politics on the Hudson, the Republican Senators were going to vote for a weekend extension if Democrats agreed. One Democratic Senator said he would vote no, and the Senate adjourned without action. The Senator, Kevin Parker, was encouraged by the Governor to change his mind. The Senate resumed and passed the bill. See you Monday.

CUNY is offering a new online tool to help owners determine if installing solar panels on their buildings makes sense. After a sophisticated aerial mapping of the entire city, researchers created a map where you can highlight any building address and see the experts’ estimate of electric savings potential. For example, we found a six story, 117 unit building taking up half a block in Queens that could save $21,178 a year on its electricity bill, and a narrow 45 story residential tower near Wall Street that might only save $808.

One of the most attractive benefits of solar energy is the potential for lower energy bills. After the panels are installed, you pay nothing for the electricity they generate from the sun’s rays. If your business is typical, you’ll recoup your investment in the panels and installation within 10 years. Keep in mind most solar panels come with a 25-year warranty. Better yet, many local electrical companies will buy any excess power your panels generate. That means you could eventually profit from the panels.

Having a solar installation can reduce your dependency on the local power grid. If the power goes out due to a storm or another issue, you’ll still have electricity. You’ll be able to keep your business running and your customers comfortable at times when your competitors can’t.

While the cost of purchasing and installing commercial solar panels may seem off-putting, there are ways to reduce your expenses. Manufacturers and utilities providers often offer rebates that let you quickly recoup some of your investment, including the tools for insulation and roofing services, such as those offered by great companies like Bondoc Roofing. In addition, whether you’re constructing a new building or have an existing roof that has leaked for years, you might want to use a cost-effective system like this residential and commercial polyurethane spray foam that will save you money over time. Federal and state tax breaks for energy-efficient equipment help also lower your total expenses. Before you begin any solar panel project, you can ask the Carolina Home Specialists to check your roofing system if it needs roof repair services to be sure that your roof is in great condition, this will determine if there is the need to call in a roofer. To complete the project, there may also be a need to call Beemer Kanga Roof for gutter installation services. You can get more info on roofing online, or you may consider contacting your trusted roofer.

Unlike coal-fired electrical plants, solar energy produces no harmful emissions. By using solar power instead of the municipal power supply, you’re helping to reduce the production of greenhouse gases that harm the environment and contribute to common health problems such as asthma or even just to save money on your energy bill after you fix it. In fact, solar power poses even less of a threat to the environment than hydroelectrical dams and wind turbines.

Your solar panels visibly demonstrate your concern for the environment and public health. They help you stand out from your competitors and attract customers who value green living.

After a successful pilot program, HPD is letting all owners e-certify violations online. There is an ecertification link to the left of online violation histories at HPD’s website and you can register to participate here.