Many co-op buildings have been inadequately managed for years, and facades are breaking down thanks to extreme weather and irresponsible use.
Aging Infrastructure
The glaze on the bricks have become less water-repellent, especially around the windows and mortared lintels on the north corners allow seepage creating water problems.
The risers carrying water to the top of the buildings have become more and more blocked by mineral build-up to the point where many have only 10-15 percent of their original area clear to permit water flow. Even the apartments (except for those that have been completely upgraded within the last 3-4 years) look increasingly shabby and in need of renovation in comparison to the shiny newness of the condo inventory.
Co-op Boards of Directors
Co-op boards are composed of a small group of building shareholders who are entrusted with overseeing everything from the financial health of a building to maintenance and viewed as if they are Directors of a private corporation, which is what co-ops are.
Up to 74 percent of Manhattan’s apartment stock is composed of co-ops and are the 20th /21st century model for an urban Planned Community. In some situations, they resemble country and private social clubs assuring shareholders (those who have bought units in the building) that they will be surrounded by others who look and earn money just like they do. The secrecy allows for discrimination with impunity. Unfortunately, the model has not adapted to modern transparency standards and unlikely to change given the political power that comes with such economic might. In reality, it is dangerous for buyers who do not fit the persona mold of any given building.
As physical problems have surfaced in co-ops, pushing maintenance costs ever higher and higher, the co-op Boards have stubbornly refused to adjust to the times.
They severely restrict financing and transparency. They put anyone who wants to renovate through an arduous review and approval process which tends to take months and costs thousands of dollars. The BODs continue to judge applicants on personal criteria (investments, where the children go to school, employment and employers, whether they have been involved in litigation no matter how benign) and other queries that should not enter the review process. The result? The value of co-ops, especially larger ones, has been declining relative to condos for at least the last 15 years. In reality, you have to be a little bit nuts to be willing to run both the Board review and renovation gauntlets.
