STOPPING THE SKY FROM FALLING - LOCAL LAW 11

By Michael A. Raganelli 

As Published in the July 30th, 1999 Edition of the New York Post

There is nothing like the New York Skyline. It's distinctive, unique, and easily recognized from countless Hollywood movies. It's also crumbling. This City ismore than 100-years old and the majority of the structures are more than 60 years old. In order to safeguard little old ladies from being beaned on the noggin by falling pieces of our beautiful skyline, the City passed Local Law 10 legislation which mandated inspections and repairs to building facades. However, it soon became clear that this law had no teeth. As a result, the City Council recently passed Local Law 11, a tough new law that's going to be very costly to landlords.

Michael J. Wolfe is the President of Midboro Management, a firm that manages 53 co-ops, condos, and rental buildings on the Upper East & West Sides. Mr. Wolfe is an expert on the complicated issues regarding Local Law 11/98, the new exterior building code. In fact, last January Mr. Wolfe lead a panel of experts in a discussion on this subject in a widely publicized industry event held at the Helmsley Hotel.

"Local Law 10 regulated only the exterior facades of New York City buildings," stated Mr. Wolfe. "Originally, this law would require an inspection conducted from a scaffold of all terra-cotta or ornamental work that protruded six-inches or more from the building facade. The fear was that landlords would rip down the terra-cotta on their buildings in order to avoid the inspections, the fines, and the almost guaranteed high cost to repair. Some of New York's terra cotta masterpieces would have been lost so the law was adjusted for all residential buildings."

Local Law 11 requires all facades of buildings to be inspected for soundness, with the exception of those walls that are less than 12 inches from an adjacent building. All buildings six stories or more fall under this regulation, even if only a portion of the building is greater than six-stories tall. The law dictates that exteriors must be inspected by a licenced engineer or architect using binoculars, and at least one scaffold "drop" on a street facade. The drop must go from the base of the building to the top.

The law requires an inspection and owner-certified report to be filed with the City once every five-year cycle. The last Local Law 10 cycle ended in 1997. In order to facilitate a swift adherence to the new law, the City has indicated that owners who file their Local Law 11 reports by March 2000 will not be required to file until the 2007 cycle, effectively a seven-year window.

What's the cost of an inspection? Assuming a six-story building with parapets that can support the weight of the rig, the initial cost ranges from $1,500 to $2,500, depending on the type of rig used. This cost is expected to rise as the demand for rigs, sidewalk sheds, and labor increases over time.

The cost of the architect or engineer executing the physical inspection is $850 per drop and the printed report itself ranges from $1,500 to $2,000. Already at a cost ranging from $3,850 to $5,380, this cost could escalate if the professional performing the inspection deems that additional scaffold drops are required due to bad conditions. Consider that some of the rear facades of buildings have not been looked at for many years, if at all. Since the inspector is liable for his opinion, he may call for a second or even third drop to be sure about a facade. This would require the disassembly, movement, and reassembly of the rig - all on the union pay clock.

The increase in inspection costs is certain. There will be great demand for architects and engineers and prices for their services will rise. These professionals will be rushed and as a result, they will probably have less time to spend on their reports. With the pressure on, they are likely to become extremely cautious, probably covering themselves with reports that use a broad brush to describe problems. If you have ever had to hire an engineer to report on the conditions of a building, you know that it is an understatement when I say that they tend to err on the side of caution. For landlords, the real costs kick in when facade problems are identified.

There are three conditions indicated by an inspection report: "safe," "unsafe," and "safe requiring repair and maintenance." If the situation is "safe," your building is good until 2007. If the facade is "safe requiring repair and maintenance," the repairs must be executed before the next inspection, in this case, 2007. If the facade is "unsafe," the condition must be addressed immediately.

If there is an "unsafe" condition, the owner must immediately erect a "shed" or a protective sidewalk covering, and cure the problem within thirty days. The cost of the shed is about $125 per linear foot, per day, more if your building's on a corner. You have to hire an engineer to draw up repair specifications. Luckily, you can apply for an extension, but at minimum, you have to start the process of facilitating the required repair by installing the shed.

You may believe landlords should have been maintaining their facades as a point of property building operation. However, it's often hard to tell when a facade needs work. Most landlords are going to be shocked at the cost of repairs. The main culprit in this drama is the weather, specifically water seeping into cracks and the expansion and contraction attributable to freezing. Landlords that face facade problems should build this cost into their long-term, five year budgets.

What's the bright side? "Initially it will be expensive," says Mr. Wolfe. "However this law is good for everyone. First, its going to create a safer New York." In fact, Mr. Wolfe is recommending to clients that own buildings of less than six-stories also get their buildings inspected. "After all, a falling brick could kill you from three stories just as much as one that falls from six stories. Secondly, the inspections and assured resulting construction work will be a boost to the City's construction industry, one that will last long after the current economic boom has subsided."