Construction is an evolving industry that generally embraces advancements in materials, technology and safety. AI and its potential to enhance quality control and scheduling on projects is the most recent hot topic. Green building technology and materials have been at the forefront of discussions for years. The increasingly warmer weather, warmer oceans and violent storms we are experiencing has given impetus to efforts to build “green.”
Building “green” is not easy, inexpensive or efficient. It is also not without risk. Managers and boards of co-ops and condos must balance the climate initiatives and Local Law 97-2019 with costs and risks of green building.
While managers of co-ops and condos are professional property managers, the decision makers (the members of the boards) are often volunteers with little or no training or experience with building materials. Moreover, even professional building managers are not schooled in new construction materials.
There are nine materials that are frequently associated with green building: bamboo, cork, wood, recycled glass and plastics, solar tiles/panels, Ferrock, wool and mycelium. Bamboo and cork are good choices for environmentally friendly flooring. Recycled glass and plastics are used in countertops and backsplashes, as well as glazing. Managing agents and boards should provide incentives to unit owners to use these materials in unit renovations. Where appropriate, these are suitable materials for hallways and other common areas. The day may be coming when hallways have cork floors and low VOC paint in lieu of carpet and wallpaper.
Solar tiles and panels are useful if there is a solar energy system. Ferrock is a material based on recycled concrete and other materials, that could be used on walkways, patios, steps and parking areas. Wool is an effective insulator. Mycelium is the root structure of a fungi that is a good insulator. However, this is in the early stages of review and its durability in high rises and multiple dwelling properties is not well known.
New York City is encouraging green roofs, but these require structures designed for the loads from soils, planters and water. Many older buildings cannot be retrofitted for green roofs without incurring significant expense.
Managing agents and boards must focus on how to manage construction in this “green” era. The key is reliable licensed or registered design professionals (RDPs). Larger buildings should try to retain a local firm with meaningful co-op and condo experience as well as experience with the type of building, age, size and construction method under management. Projects should be planned with an RDP who should be asked to provide green options where appropriate.
Boards should avoid experimental materials and techniques and insist on materials that have been tested and used in similar conditions, including weather conditions. Materials suitable in warm or dry conditions may not be a good fit in New York City, where it rains on average 111 days a year and the temperature range is approximately 100°F in the course of a year. Boards should be careful to obtain appropriate warranties to ensure that the durability promised is delivered.
In all cases, the costs of maintenance, the expected life of the repair or improvement and the cost to go green must be compared to the costs (maintenance and capital) as well as the expected life of the work must be considered. If the green project is more expensive, less durable and potentially more expensive to maintain, it may not be “green.” It may be wasteful.
So long as boards engage in this process, even in the event of a failure of a green project, the board and its members will have discharged their fiduciary obligations to act prudently. Otherwise, unit owners or shareholders may have cause for concern that may translate into litigation.
This column presents a general discussion. This column does not provide legal advice. Please consult your attorney for specific legal advice.
Carol A. Sigmond
Partner
Greenspoon Marder LLP
590 Madison Avenue, Suite 1800
New York, NY 10022
carol.sigmond@gmlaw.com
(212)524-5074
