Board Approvals
The renovation board approval process: what to expect?
It is important for the owner to request an Alteration Agreement before any construction services if the premises are governed by Co-Op- or Condo board. The easiest way to obtain a copy is to get on touch with the corresponding board agent. We ask our clients to provide us with a copy of the Alternation Agreement since we are obligated to follow every detail described there. An alteration agreement is a contract between the owner and Co-Op or Condo board assuring that the renovation services will comply with DOB code, legal requirements, as well as the building’s requirements. The agreement may affect the cost of the renovation, so it’s important to know what to expect ahead of time.
- Alteration agreement vs a decoration agreement!
- What an alteration agreement will reflect?
- Some of the services that the board might not approve.
- Extras that the Co-Op or condo may require when doing a renovation!
- Application Requirements & Supporting Documents
Alteration agreement vs a decoration agreement!
An alteration agreement is often referred as decoration agreement. These two are basically the same with minimal differences and complexity. A decoration agreement can be approved by the managing agent without a full board review. It is usually authorized within two weeks from the day of submission. Board approvals is rarely required. In some difficult cases the managing agent may request a board representation on the approval of a decorative agreement. The approval is usually finalized within a month. A decorative agreement is mostly referred to cosmetic changes in the premises which will include minor repairs and maintenance such as painting, flooring, kitchen remodeling(cabinets) , bathroom remodeling (surface/tiles) without interfering with plumbing, electric or structural existing plans. An alteration agreement is more complex because it requires architectural drawings and DOB permits and approvals. At MCR Construction we make sure to inform our clients if their planed services will need an alteration agreement or decorative agreement. The board management agent will also be able to provide with such information in more detail.
What an alteration agreement will reflect?
1. Prohibited work:
The alteration agreement will describe in detail the type of work that cannot be performed. In situations where the services proposed by the owner are required to protect or improve the life of them, the board of management may request special permissions that will be decided on a case-by-case basis.
2. Timeline:
Under this section the owner must provide a start and end date for the project. In some buildings, the rules, and regulations that they have in place can result to fines from the board of management if the project continues past the end date. It is vital to select all the materials ahead of time and prepare a detailed plan to make sure the project does not go over.
3. Extension clause:
In situations where the project may drag past the final date the owner must file for an extension clause according to the procedure laid out in your alteration agreement to avoid fines.
4. Building fees:
Some renovations can be long, extensive and result to potential building damages throughout the process. Each board of management has implemented building fees to address this phenomenon. They may charge fees as long as your construction lasts, charge fees to cover the damages done on the property, charge fees to pay for added demands on building staff(if applicable) and mitigate other residents’ distress. These fees might be flat or it might be monthly, weekly, or charged on a sliding scale that increases over time. You may also have to pay for the building’s architect or engineer to review the plans and inspect the work. Same for the managing agent and inspectors.
5. Liability:
In case of any damages or injuries during the renovation the owner or the general contractor must have financial responsibility assigned ahead of time. Usually, the COI of the contractors has this one covered
6. Contractor insurance:
In every single project the contractor must provide a COI that may include the name of the owner, the board and managing agent as additional insureds.
7. Security deposit:
Most buildings charge a security deposit to guarantee that all the work will adhere to the rules. They can use the deposit to cover any damages to common areas that might occur during the services. In some cases, the contractors may also have to provide a deposit before starting work. The deposit depends on the building regulations and it can go up to $10,000. Some managing agents will charge 10-15% of the total renovation cost as a deposit.
8. Work schedule:
Most buildings only allow construction services between 9-5 weekdays. Some buildings will only allow seasonal services only.
9. Service elevator requirements:
There may be specific service hours that the building might have in place for contractor’s use of elevator. Rules on when they can deliver materials, tools, or equipment. Specific times for trash removal etc.
10. Department of Buildings permitting protocol:
This will require that each activity must meet all the rules and regulations and be code compliant.
11. Lead and asbestos testing:
Some buildings require an environmental testing firm to monitor lead levels and the presence of asbestos before you can begin work, or as part of a regular inspection. This is especially likely if your building has a history of lead. It may also indicate how hazardous materials like lead-based paints and asbestos should be removed and require that the contractor use licensed abatement professionals.
Some of the services that the board might not approve.
1. Penetrating the building’s membrane:
The board may never approve for any construction work that will result in exterior walls drilling or cutting. It can become a liability to the building for the future since most of these services are covered by the building HOA. It may also give way to more people to ask for the same services increasing the risk of liabilities for the matter. An example will the installation of an AC unit, exhaust fans or adding new windows.
2.Wet over dry:
This basically means that you cannot change the location of your bathroom or kitchen to a different part of the apartment. Nearly on all buildings, all kitchens and bathrooms go vertical on from one another on every apartment. This is to protect the extensive damages in case of a leak in these wet areas.
3. Changing the layout:
There is a lot to consider when changing the layout of the apartment. For reason such as installing playrooms on top of the neighbor’s bedroom the board will not approve the services even if the plans follow the DOB code. In some all buildings it will be a matter of structural concern since all the walls can be barring walls.
4. Relocating Plumbing & Electrical:
Most buildings do not allow work that will require the relocation of main plumbing lines or electric panels. They require to have exactly as the original blueprint initially stated.
5. Central Air Conditioning:
This subject is sometimes debatable since the ac units create a lot of condensation and it can be a cause for concern. Another is the buildings’ ability to provide enough power for these units. Most of these units require double the power of the regular units.
6. Steam showers or jacuzzi:
Most of the equipment components on steam showers and jacuzzi are noisy, likely to leak and require a proper ventilation.
7. Washer and Dryers:
They will not be approved in most of the old buildings. It is hard to tell since there are a lot of factors to consider when allowing the installation of washers and dryers.
8. Stone flooring(tiles):
The only areas that most building regulations allow tiles are kitchens, bathrooms, laundry rooms and entry hall. The majority of buildings will not allow tiles anywhere else in the building.
9. Window replacement:
These is usually a liability for the HOA therefore they do not allow anyone to replace any windows.
Extras that the Co-Op or condo may require when doing a renovation!
When renovating a co-op or condo it is always expected that the owner will address the behind-the-wall components and other issues that are important to the building and are most cost-effectively addressed when doing a renovation. Most of these components are not the owner’s responsibility however these services will prevent future interference in the apartment since these old components are expected to have issues. The HOA will only cover them only if they brake resulting on damages and discomfort to the apartment and the people living there. The total cost usually falls on the owner and at times the owner will have to sign a post-renovation agreement. Some of these components include:
1. Plumbing
If the bathroom renovation or kitchen renovation results to opening up the walls, the rules may force the owner to renovate all the pipes from the main line.
2. Electric
The city keeps updating the electrical and energy codes which will require that the owner updates the existing lines when doing a renovation. Most of the new appliances need the updated systems to work properly. It is illegal to use components that do not meet the standards.
3. Soundproof and Insulation
Co-Op and condo rules may require that when doing a renovation, the owner must install in wall soundproof barriers or insolation barriers if there aren’t any.
4. Waterproof
The board usually requires the owner to waterproof wet over dry areas when renovating. All kitchens, bathrooms and laundry rooms must follow these standards since they are subject to water leaks.
5. Windows (if visibly damaged and/or when the board has a plan to update them)
This is usually the least common however in some situation the board my force owners to address these situations on their own when renovating the apartment.
Application Requirements & Supporting Documents
Aside from signing the alteration agreement, the owner may need to provide additional documents to the board before renovating the apartment.
1. Security Deposit
2. Architectural Plans by a Licensed Architect
3. Written Scope of Work
4. Product Specifications / Cut Sheets
5. Contractors Licenses, Including Subcontractors
6. Certificates Of Insurance for all Contractors
7. DOB Filing Paperwork
8. Written Response to any comments from the reviewing architect
9. All Required Permits