Monday November 24, 2025
In New York City, multifamily rental building owners and condominium / cooperative boards face similar challenges – aging infrastructure, rising construction costs, and increasingly complex regulations.Protecting property values and securing long-term financial health requires a disciplined and organized approach to capital planning. Boards and owners must proactively assess building facilities and forecast capital projects to protect their properties and their bottom line.
"The principle is simple – understand what your building needs, know what it will cost, and have a clear plan to fund and execute those projects responsibly."
— John Foley, Executive Vice President | FirstService Project Management
Click here to watch our 2025 Capital Planning Workshop for condominium and cooperative boards.
Start with a comprehensive reserve study or facilities assessment.
It’s easy to focus only on what is failing right now. A roof leak or broken tiles may capture your attention, but deeper issues such as aging heating systems or elevators often go unchecked until it’s too late."Your reserve study is a living roadmap. It should cover every major system at your property, determine when they will need to be replaced, and include estimated project costs. They also demonstrate to lenders and insurers that you’re doing everything you can to ensure your building is structurally and financially sound."
— Orest Tomaselli, President & CEO | Strategic Inspections
A comprehensive reserve study should evaluate all critical building components.
- Facades and roofs
- Boilers, heating systems, and mechanical equipment
- Elevators
- Windows and exterior openings
- Structural elements
- Building-wide infrastructure and safety systems
These reports are also required for lending eligibility under standards from Fannie Mae, Freddie Mac, Institutional banks providing jumbo mortgage financing and the Federal Housing Administration.
Knowing what a building needs is only the first step. Knowing how to pay for it is essential.
Capital projects are unavoidable. The true question is whether the building is financially prepared."Every building will face major expenses that fall outside the normal operating budget. The question is not if. It’s when. We want our clients to have an existing plan in place to manage those costs responsibly while providing visibility into the actual cost of ownership to the unit owners. That’s why FirstService Residential created this financial planning resource."
— Senior Financial Analyst | FirstService Residential
FirstService offers in-depth financial analysis to help clients make the right decisions for their property.
The financial analysis service includes a review of financing options, the long-term financial impact on shareholders and unit owners, and a snapshot of the building’s overall financial health. Board members also receive a long-term financial plan that serves as a roadmap for the next five to ten years.This level of forecasting gives boards clarity, choice, and control, rather than relying on emergency assessments and short-term borrowing. Contact our team today.
Professional project management protects buildings from risk.
Many boards and building owners attempt to manage capital projects independently or rely solely on their property manager. This can lead to significant exposure, project delays, budget overruns, and compliance violations.Research shows that capital projects without early involvement from a dedicated project manager can run up to 80 percent over budget.
"Capital projects need professional oversight. Someone who understands contractor insurance city approvals budgets sequencing and how to prevent delays."
What does a project manager do?
- Coordinates with engineers, lenders, legal counsel, and contractors
- Reviews vendor insurance, licensing, and DOB compliance
- Manages budgets, schedules, procurement, and quality control
- Sequences projects correctly to avoid rework and inefficiencies
- Mitigates resident disruption through clear communication
Planning for FISP (Local Law 11): Schedule your facade inspections before it’s too late.
Compliance with New York City’s Facade Inspection Safety Program (FISP), formerly known as Local Law 11, requires regular exterior inspections to identify and correct unsafe conditions. As buildings enter FISP Cycle 10, it is critical for boards and owners to understand updated requirements, avoid violations, and keep the public safe.These projects require detailed preparation, contractor bidding, scaffolding, and large allocations of capital. Late filings often lead to enforcement violations with fines that do not go away.
"The earlier you engage professionals the more you reduce surprises protect value and preserve harmony in your community."
Click here for a detailed review of FISP requirements from Howard L. Zimmerman Architects & Engineers (HLZAE).
Key takeaways for building owners and board members:
- Begin with a reserve study conducted by engineering experts with lender approved methodologies.
- Translate findings into financial modeling showing options not just obligations.
- Engage professional project management early. A qualified project management team can execute major capital projects safely and efficiently.
- Communicate clearly with residents to set expectations about cost of ownership and long-term planning.
- Prepare now for Local Law requirements, even when deadlines appear distant, to reduce risk and avoid cost escalation.
FirstService Residential’s collective buying power translates to lower rates and greater value on a variety of products and services. Click here to explore our cost savings programs for New York condominiums, cooperatives, and multifamily rental properties.