Update: Condo Board Collection of Unpaid Common Charges in the Face of COVID-19 Regulations

With all of the Executive Orders from Governor Cuomo and the Administrative Orders issued by the Chief Administrative Judges of the State and City of New York in response thereto, Condo Boards and Managing Agents are justifiably confused as to what, if anything, a Condominium Board can do to collect unpaid common charges.

Currently, no Executive Orders or Administrative Orders prohibit Condominium Boards from commencing legal action to collect unpaid common charges. Boards can file liens for unpaid common charges and prosecute foreclosure actions in Supreme Court for the same. Boards can also commence money actions for the collection of unpaid common charges in the City and Civil Courts. The only Executive Order that currently applies to common charge lien foreclosure actions and condo money actions is Executive Order 202.60 signed by Governor Cuomo on September 4, 2020, which extends the tolling of statutory time limits, including the time to file an answer, to October 4, 2020.

While the Courts are moving forward with the cases, conferences are being held virtually but judges are adjourning cases for several months where the defendants have not appeared or are not represented by counsel. Due to the enactment of EO 202.60, we also anticipate that courts will not entertain motions for default judgment until at least October 5, 2020. Further, it has been our experience that the courts have been reluctant to issue decisions on pending non-default motions in foreclosure actions as well, effectively staying cases for the time being.

For more information contact:

Ryan Houck
rhouck@sbjlaw.com

Latest Covid-19 Developments: Gyms

NEW YORK STATE AUTHORIZES GYMS TO REOPEN
(SORT OF)

New York State is allowing gyms to reopen as early as August 24th, unless the locality delays openings (but not later than September 2nd). Sounds like great news, until you read the details.

The six-page “summary” of reopening guidelines for gyms and fitness centers appears on the Governor’s website, CLICK HERE.

The 17-page “Detailed Guidelines” can be found on the Governor’s website, CLICK HERE.

The summary below is written for Association that run a private gym for residents only, with at most one attendant available.

A. General Guidelines.
Maximum Occupancy: 33% of permitted occupancy based on the CO.
Mandatory Inspection by Health Dept.: The gym must be inspected by the local Health Department within fourteen days after opening.
Face Coverings Mandatory: Masks must be worn at all times, including while exercising.
Physical Distancing: 6 feet apart for patrons, as with other activities. Hands-on adjustments (by trainers, for example) are discouraged.
Off-Limits Facilities: Small locker rooms, showers (unless disinfected between uses), storage closets, restrooms (unless you create at least 6 feet of separation between toilets and sinks) and other small spaces are off-limits.

Indoor Pools, Jacuzzis & Saunas must remain closed.
Use of Equipment: Equipment must be located 6 feet apart in all directions. Equipment must be disinfected and cleaned between uses (so no one shares equipment.) Patrons are encouraged to bring their own towels and personal gear.
Sign-in Info: Patrons must sign in upon entry providing name, address and phone number (for contact tracing), and be screened for COVID and temperature. Remote scheduling and check-in is encouraged. The Association must keep a log.
Signage: Rules for use must be posted throughout.
Other Recommendations for Use:
n Directional signs for foot traffic between equipment.
n Separate entrances and exits if possible.
n Touchless hand hygiene equipment in gym.

B. Ventilation Systems.
Central air handling systems must be a minimum of MERV-13. (According to the Internet, MERV 13-16 is hospital rating.) If they do not, the Association must certify that the system could not perform at the same level it was performing at prior to COVID-19 if it was retrofitted to handle MERV-13 filtration or better. In that case, or if the Association does not have a central air handling system, they must adopt additional filtration protocols, including:
–Deploying portable air cleaners.
–Regularly inspecting window a/c units.
–Running systems for longer hours and maximizing fresh air intake.
–Opening windows.
–Setting ceiling fans to draw air upwards and prioritizing window fans to exhaust indoor air (avoiding recirculation)
–Installing UV germicide irradiation.

C. Hygiene, Cleaning, Disinfection.
In addition to the usual protocols (hand washing, disinfecting, face coverings, signage), Associations should encourage patrons to bring their own PPE and provide receptacles for disposal of PPE. Staff must be available to wipe down equipment before and after use.

D. Recordkeeping.
Site Safety Monitor. Associations must designate a site safety monitor to verify compliance with site safety plan.
Logs of Entry and Contact. Associations must maintain a log of every person, employees, contractors and vendors who may have had close contact with other individuals at the workplace.

E. Confirmation that Guidelines Have been Read; Enforcement. Associations must affirm at the end of the Detailed Guidance document that they have read and understand their obligations to comply. Governor Cuomo has implied that non-complying gyms could face significant civil fines.

Additional Guidelines for New York City
Not to be outdone, the NYC Department of Health has added its own guidelines, available at the NYC.gov site, CLICK HERE.
The only real difference from the State guidelines is the availability of “virtual inspections” to be conducted via your laptop. To schedule an inspection, complete the “Gym and Fitness Facility Inspection Request and Attestation Form”, CLICK HERE. Note: Other localities may impose their own guidelines as well. Check with your municipal or county health department to make sure.
We appreciate that the State is seeking to reestablish our “pre-COVID” quality of life, but we wonder how many Associations can comply responsibly with all of the requirements that have been imposed. Furthermore, an informal survey of prospective patrons shows deep misgivings among potential users whether other users will comply. Your Association may need to monitor use closely to ensure that compliant patrons are not exposed to unnecessary risk from less responsible consumers who are unwilling to take personal precautions that might interfere with their use of the gym. And you may still get tangled up in red tape attempting to comply with the extensive state and local regulations.

For more information, contact:

Ken Jacobs
kjacobs@sbjlaw.com

Tom Smith
tsmith@sbjlaw.com

Jeff Buss
jbuss@sbjlaw.com

Contractor’s delay in bringing legal action proves very costly

by Jacob E. Amir

May owners and general contractors agree to shorten New York’s legal time period for bringing legal action to recover contract damages? Yes. And if that time period runs from the date of “construction completion” but a formal notice of completion is never issued, will a contractor be barred from suing under the contract if legal action is brought after the limitations period in the contract? Yes.

New York State has a six-year statute of limitations for bringing contract actions. However, parties may contractually shorten the limitations period to a date considered “fair and reasonable.” In Stonewell Contracting Corp. v. Long Island Rail Road Company, __ NYS3d __, 2020 WL 4642852 (1st Dep’t 2020), a general contractor with a $28 million contract with the Long Island Railroad Company agreed that any legal action against the LIRR must be brought within ninety days of “construction completion.” The completion date was extended for two years due to change orders and modifications, but no formal certification or notice of construction completion was ever issued. One and one-half years after the contractor allegedly completed its work, the contractor commenced an action against the LIRR for delay damages.

The Court dismissed the complaint, holding that the lack of a certificate of construction completion did not excuse the contractor’s delay in bringing the action. The contract required legal action to be taken within a certain time period after completion of the work, and that completion date could be measured by the circumstances at hand, such as the cessation of labor, removal of equipment and material, or in this case, the contractor’s issuance of a “Request for Equitable Adjustment” to recoup delay damages.

It is likely that the contract provided that the LIRR would issue a written “notice of completion” acknowledging completion of the work after the contractor requested payment. The contractor may have assumed that the period to bring an action was never triggered because no such written notice was ever issued. That assumption proved misplaced and costly. Because the contractor brought its claim after the expiration of the statute of limitations, the Court never had to decide whether the contractor would be entitled to damages at all.

For more information, contact:

Jacob E. Amir
jamir@sbjlaw.com

New COVID-19 Directives Extend Moratorium on NY Eviction Proceedings

by Ryan Houck

In response to Executive Order 202.55 signed by Governor Cuomo on August 5, 2020, the Chief Administrative Judges of the State and City of New York recently promulgated a new set of directives addressing pending landlord-tenant cases.

Judgments Already Issued. For residential cases commenced prior to March 17, 2020, a Petitioner (Co-op) who was awarded a judgment of possession prior to that date and who seeks to: (1) file a warrant of eviction request with the court; or (2) execute on a warrant of eviction already issued, must file a motion with the court seeking permission to do so. If the motion is granted, the earliest date an eviction can take place is October 1, 2020.

Residential landlord-tenant cases commenced on or after March 17, 2020 continue to be suspended. New cases may still be commenced, but no default judgments will be awarded even if a tenant/respondent fails to answer the notice of petition. In addition, even if a tenant/respondent does file an answer, if the tenant/respondent is not represented by an attorney, the court will adjourn the matter to a later date. However, if all tenants/respondents are represented by an attorney, the court will schedule a settlement conference.

Also, Governor Cuomo recently signed Executive Order 202.57 extending the moratorium on commercial evictions for nonpayment of rent until September 20, 2020. Petitioners may still file new commercial landlord-tenant cases, but similar to residential cases, no default judgments will be awarded for failure to answer and the case will be adjourned to a later date, unless all tenants/respondents are represented by an attorney. We expect the Chief Administrative Judges of the State and City of New York to issue further directives in response to this latest Executive Order within the coming weeks.

For more information, contact:

Ryan Houck
rhouck@sbjlaw.com

Conducting Internal Investigations: What You Need to Know

by Nancy Durand

On Thursday, August 20, 2020, Smith Buss & Jacobs’ attorney, Nancy Durand, presented a webinar entitled “How to Effectively Conduct an Internal Investigation: A Practical Guide.” In case you missed it, here’s what you need to know.

An internal investigation can serve as an important tool for responding to incidents of suspected misconduct in the workplace either by employees, senior management, or members of an organization’s board of directors. When you have reason to know or suspect that an employee, officer, director, or others within an organization have engaged in wrongdoing, an internal investigation will help determine whether the allegations of misconduct have merit, who may be involved in the misconduct, preventive steps that should be taken to avoid similar misconduct in the future, and any appropriate disciplinary measures that should be taken. It will also help management and the board of directors to obtain all of the relevant facts needed to make informed decisions, consistent with their fiduciary obligations. Moreover, an internal investigation will demonstrate an organization’s diligence and good faith efforts to stop misconduct and promote a culture of transparency and compliance.

Employers should always investigate the following reported or credible suspected misconduct:
• Discrimination of all types;
• Sexual harassment and other workplace harassment;
• Violation of health and safety laws resulting in serious injury or death;
• Drug and alcohol usage in the workplace;
• Workplace violence;
• Violations of certain workplace policies and procedures, including conflict of interest policies;
• Theft, whether of money, equipment or services;
• Misappropriation;
• Mismanagement; and
• Fraud.

If an internal investigation is conducted properly, it can help an employer mount the best possible defense in a litigation or to avoid litigation entirely. But a poorly conceived internal investigation can do more harm than good. An ineffective investigation can cause significant disruption in business activities, result in unnecessary excess costs to the organization, and cause highly confidential information to be leaked to third parties.

The ability to preserve confidentiality is paramount in an internal investigation, especially to prevent negative information from being discoverable in litigation or prematurely disclosed to government authorities. That is why most employers chose to have the investigation conducted by either in-house or outside counsel. While in some cases an investigation may be conducted by members of management or HR executives, keep in mind that an investigation that is conducted by non-attorneys will not be insulated by attorney-client privilege or attorney work product protection. That means, if there is later litigation or government investigation relating to the misconduct, all documents and information unfavorable to the organization that comes out during the investigation will be discoverable and available to outside parties.

Finally, prior to conducting the investigation, the Board should come up with a strategic plan for obtaining complete and accurate information that is consistent with the objectives of the investigation. The investigative plan should consider such things as the documents or other evidence to be collected, the witnesses to be interviewed, whether to involve law enforcement officials, what consultants or subject matter experts will be required, the employment status of the employee accused of misconduct, and any accommodations required to be given to the alleged victim of misconduct, among other considerations.

In sum, a Board should be prepared to conduct an internal investigation in response to actual or credible allegations of wrongdoing or threatened litigation. (In many instances, businesses and nonprofits are required by law to conduct an internal investigation.) When considering whether to initiate an internal investigation, you should also consider the potential cost of not conducting the investigation, including the potential cost of litigation that could have been prevented or mitigated with a properly performed investigation.

Watch the webinar recording HERE.

For more information, contact:

Nancy Durand
ndurand@sbjlaw.com

LATEST COVID-19 DEVELOPMENTS: NEW LAWS REGARDING EVICTIONS AND FORECLOSURES; PPP PROGRAM EXTENDED; Q&A ON REOPENING ISSUES

NEW LAWS REGARDING EVICTIONS AND FORECLOSURES;
PPP PROGRAM EXTENDED;
Q&A ON REOPENING ISSUES

MORATORIUM ON RESIDENTIAL NON-PAYMENT EVICTIONS EXTENDED INDEFINITELY.  Last night Governor Cuomo signed the “Tenant Safe Harbor Act”, which bans issuance of a warrant of eviction against a residential tenant or other lawful occupant who has suffered a “financial hardship” during the “COVID-19 Covered Period” for rent that accrues or comes due during the COVID-19 Covered Period.

The “COVID-19 Covered Period” began on March 7, 2020 and ends when the Governor’s Executive Orders 202.3-8 and 202.10-14 cease to apply. Right now those Orders remain effective “until and unless later amended or extended by a future Executive Order,” i.e., until further notice.

In determining “Financial Hardship,” the court may take into account (a) income before and after March 7th; (b) other liquid assets; and (c) eligibility for other types of assistance. So if the tenant owed money before March 7th, the Safe Harbor Act will not assist them. For the text of the Tenant Safe Harbor Act, click here.

The moratorium on evictions for other reasons ends on August 9th. Despite the moratorium, under current Court Procedures, landlords are able to initiate proceedings, but have to suspend them if the tenant does not respond.

MORATORIUM ON CERTAIN RESIDENTIAL MORTGAGE FORECLOSURES BY BANKS EXTENDED INDEFINITELY. Banks are now required to grant mortgage forbearance to homeowners (including co-op shareholders) who apply for “loss mitigation” and demonstrate “financial hardship.” The homeowner can seek 6 months forbearance, with the option to obtain an additional 6 months of forbearance. The mortgagor has various options for repayment of the arrears. Exception – The guaranteed forbearance does not apply to mortgages insured by any government-sponsored enterprise (like FNMA, Freddie Mac, FHA, VA, etc.). Those agencies have their own forbearance procedures and requirements in place.

PAYROLL PROTECTION PROGRAM EXTENDED. The PPP was stalled in Congress until June 30th with approximately $115 billion still unexpended. On June 30th Congress passed an extension to make the additional funds available to businesses. Prior extensions had sought to direct funds to smaller vs. larger businesses, and to encourage audits of loans in larger amounts. These changes extend the repayment period, lower the amount needed to be spent on payroll to qualify for forgiveness, extend the loan term, and the like. For the SBA’s summary of the new provisions, click here.

Q&A ON REOPENING ISSUES. Unsurprisingly, associations have raised many new questions as buildings reopen to residents and visitors. Below we have listed some common questions and our recommendations.

Do we have to create a Reopening Plan? Yes. NYS Guidance requires “each business or entity” to develop a Reopening Plan. (For NYS Guidance on Reopening, click here.) You do not have to file it with New York State, but you must keep it on site and available for inspection by the Department of Health. If you need a template for developing a Reopening Plan, NYS has created one. [For the template, click here.] “Real Estate Activities” are subject to further guidance to protect employers and employees. For NYS Guidance for “Real Estate Activities”, click here.

How do we enforce Mask Requirements and other Restrictions? You should adopt House Rules setting forth your requirements for use of common facilities within the building, and guidelines for entry by visitors, vendors, contractors and brokers into the building. The House Rules should be circulated to all owners to become effective. Owners will be liable for violations of the House Rules by their invitees. The House Rules may be enforced in the same way as other rules and regulations are enforced at your building. If you have a fine schedule in place, add to that schedule. If you can only send notices of default, make the costs of such notices clear to owners ahead of time. We will provide model House Rules for individual buildings to adapt upon request.

How do we monitor visitors in a non-doorman building? Safety restrictions are clearly harder to enforce in a non-doorman building. We suggest the following: First, put up a sign in the lobby and other prominent common areas (elevators, laundry room) specifying your Rules. To supplement, you might install a visible security camera in the lobby with recording capabilities; or put out a box with a Visitor Questionnaire in the box. State that all visitors must sign the Questionnaire. The Questionnaire could be as basic as asking whether the visitor has been sick within the past 14 days or interacted with someone who is sick, or more detailed. Have a box where questionnaires can be placed. As for vendors and contractors, provide your superintendent with agreements to be signed before you allow entry into the building. We can provide sample forms on request.

How do we handle Open Houses and other brokerage issues? We recommend prohibiting Open Houses for now to avoid problems with maintaining social distancing and having unauthorized visitors wandering through the building. Brokers should sign entry agreements similar to other vendors, providing that they and their clients will comply with all building requirements relating to screening and personal protective equipment; they will escort clients to and from the apartment; they will schedule visits through the superintendent 24 hours in advance; and they will not go to other common facilities in the building without specific permission. We can provide sample forms on request.

We’re all well into Phase 2 now and hoping to keep momentum going into Phase 3. Have a great holiday and stay healthy.

For more information, contact:

Ken Jacobs
kjacobs@sbjlaw.com

Tom Smith
tsmith@sbjlaw.com

Jeff Buss
jbuss@sbjlaw.com

Domenick J. Tammaro
dtammaro@sbjlaw.com

Emanuela Lupu-Ferrante
elupu@sbjlaw.com

Eric Blaha
eblaha@sbjlaw.com

Remember Lien Law 3A Payment Obligations with the Shutdown Fading and Construction Projects Resuming

With the nearly three-month construction work stoppage now in the rear view mirror, owners and contractors need to refocus on funding and payment issues under suspended contracts. A recent article in Construction Dive, a trade publication, noted a 40% increase nationwide in the number of mechanic’s lien filings, suggesting that some parties are resorting to legal enforcement measures to address payment shortfalls during the shutdown.

In New York State, Lien Law 3A requires owners and contractors to use construction “trust funds” only for specific purposes related to the improvement of real property. “Trustees” who violate Lien Law 3A face serious consequences, including personal liability. Understanding the framework of Lien Law 3A and what it requires is critical to any construction project. So is knowing how to bring a Lien Law 3A claim, if necessary, and how to defend against such a claim.

Lien Law 3A impacts large and small construction projects. In one recent case in New York City[1] involving a $400,000,000 commercial project, a contractor filed a claim against the property owner and others, in part alleging that the owners were “contractors” subject to Lien Law 3A, and that loan proceeds were “trust funds” which was diverted in violation of the statute. The Court denied the owner’s motion to dismiss when it held that the claim sufficiently alleged the owner was effectively a contractor when it took on certain construction management duties, and that the loan proceeds received by the owner which were deposited into various accounts were assets subject to Lien Law 3A.

In another recent case, the contractor alleged diversion of a $50,000 payment made on a single-family home.[2] The statute applied equally, reminding us that owners and contractors of all volumes and project sizes should appreciate the importance of Lien Law 3A.

[1] Gilbane Building Company v. New York Wheel, LLC., 66 Misc.3d 1214 (Sup. Ct. Richmond Cty. 2020)
[2] Roos v. King Construction, 179 A.D.3d 857 (2d Dept’ 2020).

For more information, contact:
Jacob Amir
jamir@sbjlaw.com

COVID-19: Guidelines for Reopening Buildings

Guidelines for Reopening Buildings

The pressure to relax the guidelines for access to condominium and cooperative buildings, including their common facilities, has been growing. Boards need to develop a plan for handling the increased risks that come with increased traffic within the premises and social interaction among owners. The following assumes that you have guidelines for staff and visitors in place already for the current “Pause” phase.

A.     Before Reopening.

1. Check your insurance coverage. Know whether your liability and D&O insurers will (i) defend, and (ii) cover claims against the Association or individual managers relating to Coronavirus exposure. Will they defend with a “reservation of rights” (to decline coverage if liability is found), or will they flatly deny defense as well as coverage?

2. Consult with your staff. Involving your staff from the beginning will avoid many surprises when your plan is implemented. Do you need supplies or more PPE, or installation of a plexiglass barrier at the front desk? What rules of engagement are you setting for staff members who may be concerned with entering individual units? Is any additional training required to ensure adequate protection? Would your staff object to having their temperature taken when they report to work?

Will you have sufficient staff coverage to deal with the increased need for disinfection that comes with expanding access to infrastructure and common facilities (not just pools and gyms, but elevators and service entrance)?

3. Create appropriate signage and barriers. You will need warning signage relating to disinfection reminders, occupancy restrictions, hours of operation, use of elevators and stairways, and off-limits areas. You should be prepared to install tape or physical barriers to designate restricted areas.

4. Communicate your plans to your owners. If you do not re-open, it may be unpopular with the owners, so communicate your reasoning and intent frequently to them as the region moves from Phase to Phase.

5. Consider your additional costs. Plan for any additional costs of supplies, staffing, disinfection, monitoring and enforcement, to the extent they can be anticipated when you resume previously barred activities.

B.     Use of Common Facilities. First and foremost, do not be bullied into reopening a common facility before you are ready. This is a classic business judgment issue for the Board. Remember that you are highly unlikely to have insurance coverage for COVID-19 claims arising in connection with the use of the facility. And at the risk of sounding overly cautious, if you get sued for NOT re-opening, that is a smaller claim, and has a better chance of being defended and indemnified by your Directors and Officers Liability insurer, than claims due to illness contracted after reopening begins.

If you cannot provide appropriate guidelines and protection, the risks of reopening exceeds the benefits of avoiding the ire of 5% of the owners who don’t care about those risks. With that in mind:

1. Determine Guidelines for Hours of Operation and Maximum Occupancy. There are numerous options available to set maximum occupancy at any one time, based on whether you allow only individual or household use, or base use on percentages of the maximum permitted occupancy under the Fire Code or your Certificate of Occupancy. Take into account the need for more frequent disinfection, social distancing requirements, and whether the facility is supervised. Several apps allow owners to make reservations for use of amenities, such as Mindbody, Sign-up Genius, and Courtserve.

If you are not basing occupancy on straight numbers, will you allow more than one household to use the facility at a time? Will you allow guests? (We recommend No at this time.)

Special Issues for Pools. Most pool management companies recommend allowing a percentage of maximum occupancy based on various ratios. We also recommend limiting pool use by any particular individual to a maximum number of hours per day (say three). Certain activities (water volleyball, etc.) should be explicitly prohibited. Please feel free to contact us if you would like a specific set of recommendations for pool use.

2. Install signs. Install signs specifying the rules for use and occupancy of the amenity during the reopening period. Clarify what areas (if any) are off limits. Remind people about the need for hand-washing and other disinfection procedures.

3. Liability waivers. We recommend that you require anyone using the pool, gym or other previously closed facility to sign a waiver and indemnity form, acknowledging that Coronavirus is contagious and can be contracted in numerous ways, that no representation is made that use of the facility may or may not facilitate COVID-19 infection, agreeing that the Association will have no liability for any illness, injury or death in connection with Coronavirus in connection with the use of the facility, and indemnifying the Association against any expenses incurred in defending any such claim made by a user related to the homeowner. A sample form is available upon request.

4. Keeping Logs; Providing Training; Monitoring for Illness. Keep logs identifying the users of the facility. If the facility is supervised, make sure that the supervisors (lifeguards, etc.) know the rules for use and personal protection. Reserve the right to take the temperature of staff and supervisors who will be entering the facility for disinfection or other reasons, and to bar visitors who exhibit any signs of illness.

5. Observe Physical Distancing and Personal Protection Guidelines. If you are not restricting use of a facility to individual households, make sure that everyone observes the medical recommendations for social distancing and wearing of masks and gloves where appropriate. You’re not going to require masks or gloves at the pool, but how about the gym? (See also below.)

(a) Special Issues for Gyms. Social distancing may be difficult if more than one person uses the gym at a time. Consider creating additional distance between machines by physically separating them or even prohibiting use of certain equipment to maintain distance. Staff should also be prepared to disinfect more regularly, since gym equipment has many potentially infectious surfaces.

(b) Moving Furniture. Move (or remove) furniture to comply with social distancing guidelines.

6. Laundry Rooms. Laundry rooms contain many surfaces where Coronavirus could reside. Therefore we recommend special precautions, such as wearing masks and gloves, having disinfection equipment on hand, requiring wipedowns of machines to be used before use (and surfaces after use), folding laundry at home rather than in the laundry room, observing physical distancing guidelines, or even limiting hours or numbers of occupants at any one time.

The CDC recommends particular types of disinfectants, and also recommends doing laundry using the warmest water possible and making sure that your load is thoroughly dry.

C.     Visitor Access. Decide what standards you will apply to allow visitors into the building.

1. Housekeepers, nannies, dog walkers. Regular visitors to the building should be required to wear masks and gloves at all times. They should also sign liability waivers upon entry.

2. Rules for Social Visitors. Determine what rules you will establish for occasional visitors.

(a) Masks in common areas. (Consider whether you want gloves as well.) Do you have additional PPE to distribute to visitors if necessary? If you provide PPE, where will masks (and gloves) be discarded upon exiting?

(b) Temperatures taken? Some Associations are requiring all visitors to have their temperatures taken before entry. Visitors that show signs of illness may be barred.

(c) Liability waivers? Some Associations are requiring the same liability waivers from visitors as from contractors and domestic workers, and adding representations that the visitor has not traveled to a foreign country within the past 14 days. A sample waiver is available upon request.

(d) Parties and social gatherings. The Governor’s orders currently restrict social gatherings to “ten persons.” Is that an acceptable size? Medical authorities are still suggesting lower numbers.

(e) Social distancing in common areas. Continue to enforce physical distancing guidelines within the common areas of the building.

(f) Bags, gifts, etc. Do you treat packages brought by social visitors as “deliveries” and subject to the same pickup rules as groceries or Amazon?

3. Logs; Contact Tracing. Consider keeping a visitor log to assist in contact tracing in the event of future illness.

D.     Brokers and Open Houses.

1. PPE; Numbers; Observing Building Rules. In most ways, brokers should be treated similarly to domestic workers. They should wear masks and gloves, and sign liability waivers.

We lean toward imposing the same standards on their invitees rather than treating them as “social visitors.” A broker and a prospective purchaser are more likely to visit other common areas in the building than the ordinary social visitor, increasing the risk of exposure. A building might consider explicitly restricting access to other parts of the building beyond the applicable apartment, even though that partly defeats the purpose of an inspection.

For the same reasons, we believe the Association should restrict the number of persons accompanying the broker at one time. Prospective purchasers and tenants should be escorted by the broker throughout the visit.

Make sure that the broker and their invitees observe building rules regarding elevator occupancy, entry into common facilities, masks and gloves. Brokers who violate these rules (or who permit their invitees to violate them) should be barred.

2. Open Houses. We would discourage “open houses” unless strict standards of entry and numbers are followed, with escorts from the lobby and serial scheduling.

E.     Move-ins and Move-outs; Deliveries.

1. Insurance; Liability Waivers; PPE. As with as any other contractor or service provider seeking entry into the building, movers should provide insurance and execute an appropriate waiver of COVID-19 liability and indemnity as a condition of entry. Masks and gloves must be worn at all times. Social distancing should be maintained.

2. Entry; Elevator Use. Entry should be restricted to the service entrance. If a service elevator is available, only that elevator should be used. Required social distancing guidelines should be observed.

3. Management of Personnel; Moving Teams. Movers should use two teams for move-outs: one to move property from the apartment to the elevator (and load), and one to remove the property from the elevator and take it to the van. (Obviously, vice versa for move-ins.)

4. Hours. Hours might be more limited to allow extra time for disinfection of elevators and common areas after the move, or (if no service elevator is available) to take the longer waiting periods for other building occupants due to social distancing in the remaining elevator[s] into account. If possible, packing should be done in advance of the actual move-out to limit exposure.

5. Additional Costs. The building may need to delegate additional staff to monitor use of the elevator and handle disinfection. These costs should be borne by the homeowner.

6. Deliveries. In addition to the current requirements for large deliveries maintained by the building, deliveries should be treated like moves, except that delivery teams may not be required if only one or two elevator trips are required.

F.    Alterations.

1. Priorities for Resumption of Alterations. Who gets first priority for use of the elevator: The owner who has been waiting the longest? The owner whose alteration had been interrupted? The owner needing to perform/finish work in order to move in? Or the owner demonstrating the greatest “need”, in the Board’s discretion? These can be sticky business judgment issues for the Board.

2. Modifications of Alteration Agreements.

(a) Deadlines. Deadlines in Alteration Agreements may need to be extended to take the delays into account. The parties may need to consult with your building architect or engineer to set up a new schedule.

(b) Noise. Is the lockdown still in effect for individual owners? Noisy alterations may disrupt more owners than expected. Schedules may need to be modified or special precautions taken to conduct noisy work.

(c) Signing Agreements. If an Alteration or Decoration Agreement was never signed, now is the time to insist on execution.

(d) Authority of superintendent/resident manager. If the Agreement does not clearly give authority to the superintendent, managing agent or resident manager to stop work, it should do so now.

(e) Social Distancing. See below.

3. Social Distancing; Compliance with Law. New York State requires all contractors resuming construction work to provide plans for complying with “physical distancing” requirements. These plans should be examined for adequacy and modified where necessary. We have drafted a “Physical Distancing Addendum” for use with construction contracts, available upon request.

Contractors should comply with all standards for conduct of work established by OSHA and the New York State Department of Labor. Employees should meet the same requirements for entry into the building as building staff (temperature checks, masks and gloves, etc.)

4. Liability Waivers and PPE. As with any other contractor or service provider seeking entry into the building, contractors performing alterations should provide insurance and execute an appropriate waiver of COVID-19 liability and indemnity as a condition of entry. Masks and gloves must be worn at all times.

5. Entry; Elevator Use. Entry by employees should be restricted to the service entrance. If a service elevator is available, only that elevator should be used. Required social distancing guidelines should be observed.

Employees may not use any building facilities (restrooms, etc.). All tools must be either kept in the apartment or removed from the building.

6. Hours. Hours might be more limited to allow extra time for disinfection of elevators and common areas after the move, or (if no service elevator is available) to take the longer waiting periods for other building occupants due to social distancing in the remaining elevator[s] into account.

7. Additional Costs. The building may need to delegate additional staff to monitor use of the elevator and handle disinfection. These costs should be borne by the owner.

8. Coordination of Work and Deliveries. Your superintendent or resident manager may need to coordinate work schedules and deliveries of equipment and supplies more closely than normal.

G.     Communication with Owners. It is vital that the Board communicate the rules to owners clearly and frequently. Signs should be installed in the lobby, the mail room, laundry room and other common facilities detailing the rules and reminding all owners of the need to wash hands, maintain physical distance, and respect others. Bulletins should be distributed when regulations change. Regular communication will diffuse the inevitable dissatisfaction with the pace of reopening.

The standards that you adopt will need to be tweaked from time to time as rules for the Region change. If you maintain open communication and even-handed enforcement with residents, contractors and visitors, though, you will keep your building – and your residents – safer.