23-10-2023, 02:09 PM
UPDATED OCT 22, 2023, 6:57 PM SGT
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Fees paid to cooperatives and condominium boards have soared almost three times faster than the rate of inflation. Ever-tougher rules on inspections, escalating insurance premiums and preparations for a strict new climate law are adding hundreds or even thousands of dollars to monthly bills for residents already paying some of the world’s highest housing costs.
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“When you put it all together, we’re going to end up being a city of the very rich and the very poor,” said Ms Mary Ann Rothman, executive director of the Council of New York Cooperatives and Condominiums.
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At one Riverside Drive co-op, the bill for two recent inspections was US$28,000 (S$38,400), followed by fixes that totalled US$1.4 million. The cycle of near-constant repairs and construction across the city is pushing up insurance expenses, which have jumped over 300 per cent for some properties. Upgrades to outdated heating and cooling systems could amount to US$25,000 for each home owner at certain buildings
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Those bills – meant to cover utilities, labour and basic building maintenance – jumped about 54 per cent between the first quarter of 2020 and the third quarter of 2023
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US consumer prices rose 19 per cent in the same period.
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When it comes to insurance, boards are paying more and getting less.
Long-time providers are leaving the market, forcing buildings to stitch together multiple policies to get anywhere near the coverage they had just a few years ago. One affordable co-op in the Bronx, for example, is paying 45 per cent more for just 15 per cent of the coverage it had previously.
......
For all but the most energy-efficient buildings, the largest expense on the horizon will come from Local Law 97. The measure requires properties of at least 25,000 sq ft to begin reducing their greenhouse gas emissions by January 2024
......
Overhauling a residential building’s heating and cooling systems comes with “a significant cost”, generally amounting to US$20,000 to US$25,000 for each unit
https://www.straitstimes.com/business/pr...ation-rate
......
Fees paid to cooperatives and condominium boards have soared almost three times faster than the rate of inflation. Ever-tougher rules on inspections, escalating insurance premiums and preparations for a strict new climate law are adding hundreds or even thousands of dollars to monthly bills for residents already paying some of the world’s highest housing costs.
......
“When you put it all together, we’re going to end up being a city of the very rich and the very poor,” said Ms Mary Ann Rothman, executive director of the Council of New York Cooperatives and Condominiums.
......
At one Riverside Drive co-op, the bill for two recent inspections was US$28,000 (S$38,400), followed by fixes that totalled US$1.4 million. The cycle of near-constant repairs and construction across the city is pushing up insurance expenses, which have jumped over 300 per cent for some properties. Upgrades to outdated heating and cooling systems could amount to US$25,000 for each home owner at certain buildings
......
Those bills – meant to cover utilities, labour and basic building maintenance – jumped about 54 per cent between the first quarter of 2020 and the third quarter of 2023
......
US consumer prices rose 19 per cent in the same period.
......
When it comes to insurance, boards are paying more and getting less.
Long-time providers are leaving the market, forcing buildings to stitch together multiple policies to get anywhere near the coverage they had just a few years ago. One affordable co-op in the Bronx, for example, is paying 45 per cent more for just 15 per cent of the coverage it had previously.
......
For all but the most energy-efficient buildings, the largest expense on the horizon will come from Local Law 97. The measure requires properties of at least 25,000 sq ft to begin reducing their greenhouse gas emissions by January 2024
......
Overhauling a residential building’s heating and cooling systems comes with “a significant cost”, generally amounting to US$20,000 to US$25,000 for each unit
https://www.straitstimes.com/business/pr...ation-rate