20C — May 11 - 24, 2012 — NJAA Conference & Expo — Mid Atlantic Real Estate Journal
www.marejournal.com
NJAA C onference & E xpo By Mark Gentile, NWP Services Corporation
Creating a standard rating system for measuring utility performance within the multifamily industry W hy haven ’t we developed and adopted a rating
complicated: unit size, heat- ing and cooling systems/fuels, common area square footage, amenities, etc. However, the multifamily industry is full of bright individuals who have proven that we can collectively engage to agree on standards that will ultimately benefit us, as well as the residents we serve. n Hardware, Janitorial, Tools, Safety products, and more. Our in-house fabrication and value-added services include custom countertops, vertical & mini blinds, pa- tio door & window screens, and a custom keying & lock work department. We stock, measure and install kitchen cabinets and vanities and provide complete renovation services. Our Refinishing Di- vision offers Tub & Tile Glaz- ing in addition to Countertop Refinishing. n month my office was audited by the EPA (glad to say we passed). While being audited it was sug- gested to us that we should ex- pect to see an uptick in Region2 EPA audits and enforcement. In addition to new laws, our own legal system provides an- other example of the importance of CYOA. Last month there was an unprecedented ruling in the NYC court. A New York appel- late court overturned a lower court ruling, allowing a toxic mold lawsuit to go forward. For the first time, a toxic mold case was ruled in favor of the plaintiff. This court ruling is a potential mold game changer and certainly should stimulate conversation if you want to properly CYOA. So the underlying message of the environmental meta- morphosis that is occurring is protect what you have by not letting anyone catch you off guard. This includes our gov- ernment, your occupants, your employees etc. By performing internal au- dits coupled with a general en- vironmental compliance audit you can quickly and relatively inexpensively CYOA, instead of losing them. Lee Wasserman is presi- dent & CEO of LEWCorp. in Mountainside, NJ. n
have gained traction in Seattle, New York, and Austin, to name a few cities. Regulations and mandates that used to only af- fect commercial properties are rapidly moving into multifam- ily. Many of said regulations simply require tracking and subsequent disclosure of utility performance to the government and public. But what is the benefit of disclosing perfor- mance if your resident, or prospective resident, can’t discern how the property compares to surrounding communities? The Seattle ordinance (CB 116731) calls for a 20 percent reduction in electricity by 2020. But what if the owner or property management team already “squeezed the juice from that fruit” so to speak and the property is already extremely energy efficient? Or is 20 percent enough for another property that has done nothing to lower con- sumption? The intent behind this or- dinance is to be commended; we all benefit from increased efficiency and conservation, One town down south had a situation where several hundred people were ad- versely affected by contami- nated water. The illness and disease in that case could have been prevented if a backflow prevention device had been in place. All public health measures are focused at controlling disease at its source, and the use of backflow-prevention devices in controlling and protecting cross connections is no different. If you are not sure if your properties are equipped with proper backflow devices, feel free to email me and I will inspect and survey the property. I am also avail- able to come out and hold a backflow seminar for your management or mainte- nance staff. Ray Patrick, instruc- tor and master plumber, Roto-Rooter. n
but requiring a multifamily community to simply reduce its existing consumption, without a frame of reference, is not the answer. This armchair quarter- back is the first to acknowledge that a perfect rating system is not easy to construct—and per- haps that is what is driving the grid-lock. There are a numerous variables making the equation A leading supplier of main- tenance repair products serv- ing the multifamily housing industry with four locations in the Mid-Atlantic and North- east Region. Founded over 30 years ago on the principles of providing excellent service coupled with competitive pric- ing, experienced sales staff, corporate partner programs, quality products and unpar- alleled services. We are a full line stocking distributor of Plumbing, Electrical, HVAC, Appliances, Lighting, Locks,
system for measuring util- ity performance within the multifamily industry? After all, we already evaluate our communities comparing met- rics such as occupancy rates and rents. ENERGY STAR has done an excellent job of creat- ing rating systems for building types including the obvious commercial and data centers, hospitals and supermarkets, as well as those not so obvious as dormitories and houses of worship. Is it the complexity of mul- tifamily product and mar- ket? If rating systems can be created for dorms and hotels, what is the delay? Recently, the Environmental Protection Agency (EPA) an- nounced a new program that affects high rise multifamily properties that are either new or substantially rehabilitated. The designation, however, ap- pears to be tied to building standards versus actual energy performance. This approach is different from the traditional
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rating system which is based on relative efficiency versus similar properties. Does multifamily want a formal rating system? It depends on who you ask. In researching this topic I received scores of conflicting opinions. On one extreme, an ancillary income manager from a REIT was certain that the adoption of such a system for multifam- ily would be a waste of time, providing “zero value.” The argument is that owners should make “green choices” for their own benefit; to lower operating expense and attract green- minded residents ultimately increasing operating income. But I also heard the other side of this argument. Multifamily owners and operators need a formal rating system, but may- be not for the reasons you think. Over the past years, utility cost and consumption benchmark- ing and disclosure requirements ultimately protecting the public health. The fact that cross-connection control and public health are inextricably linked is fundamental. Backflow prevention de- vices have to be installed by a person who is certified to install and test them. The two most common sources of backflow are the double check and the RPZ valve. The difference between them is the RPZ needs to have a drain line installed because it discharges water whenever a fluctuation of pressure is detected. There have been several notoriously famous situa- tions of cross-connections over the years. The best known was the Legionnaires case in Chambersburg, PA where contaminated water from a cooling tower cross- connected to the potable water system. Several people died in that case. Since then several other serious cases have been documented.
Central Wholesalers serving the multifamily housing industry
Cover Your Own Assets By Lee Wasserman, LEW Corp.
By Ray Patrick, Instructor/Master Plumber Backflow prevention devices
If there was ever a message to share as a 20 year national envi- ronmental subject matter expert
the message this month is Cover Your Own Assets; CYOA! En- vironmental regulations, our govern- ment and our legal system
You are probably hearing more and more about back- flow prevention. Apartments,
condomini- ums , f o od e s t ab l i s h - ments and most other public and commercial places are be ing tar-
Lee Wasserman
are metamorphosing and un- fortunately I am not seeing a beautiful butterfly evolving from the cocoon. New environmental bills are being presented weekly and many are passing into law. NJ’s mold bill was passed by the En- vironmental Subcommittee and seems to be moving forward. Philadelphia just passed a new lead-based paint rental law and Washington DC is about to begin enforcement of their new lead paint law. This May NJ Licensed Site Remediation Professional (LSRP) will be required to ensure that contami- nated sites are remediated in accordance with the Technical Requirements for Site Remedia- tion (NJAC 7:26E) and related DEP guidance. Government budget cuts and downsizing has certainly slowed enforcement efforts but just last
Ray Patrick
geted by local water depart- ments over the absence of backflow prevention devices in their plumbing systems. The water department usu- ally gives you 90 days to correct the issue before they shut down the water service and force you into compli- ance. Backflow is essentially the accidental introduction of contaminated drainage water into the potable (fresh) water supply due to a cross-connec- tion in the pipes. Water de- partment inspections control and prevent cross-connec- tions between water supply pipes and drainage lines,
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