Position Statement
The Special Assessment and Current Bidding Process Are Not Based on Realistic Numbers.
Any additional facade work needs to be done based on real market numbers, responsibly, transparently, and with an eye to minimizing the financial hardship to co-owners. As far as the Board has disclosed, the Special Assessment was based solely on an estimate provided by Reliable Engineering. As Reliable Engineering details in its letter dated April 20, 2025, this estimate is based on an extrapolation of the increased cost of the Tier 1 facade work, applying these costs to all other tiers. The increased costs to Tier 1 represent a change in the original scope of work to include emergency stabilization and related cost overruns, not applicable to the remaining proposed work phases. These remaining phases only include the installation of an expansion joint and replacement of six rows of bricks on each floor. Additionally, as Reliable Engineering itself pointed out, it is not a professional cost estimator, and its estimate was intended to be used only for initial planning.
Excerpt from Reliable Engineering Letter Dated April 20, 2025
Excerpt from HCC Board of Directors Special Assessment Levy Dated June 12, 2025
On August 29, 2025, we obtained an estimate from Adam Blake of Cost Bidding, a professional cost estimator based in Brooklyn, New York, for what the Phase 1 work would cost in the current market based on the original scope of work. The resulting estimate came out to $321,941. This is substantially in line with the bids received previously by Structural Rehabilitation Group in 2023 and represents less than half of the $718,067 inflated Phase 1 cost that Reliable Engineering used to estimate the cost of the remaining proposed phases of work. Based on this, Reliable Engineering's estimate may represent more than twice the reasonable cost for the remaining proposed phases of work. We are in the process of obtaining an independent estimate for the remaining phases of work.
Cost Estimate Obtained from Cost Bidding on August 29, 2025
Bids Obtained by Structural Rehabilitation Group in 2023 as Detailed in Letter Dated October 3, 2023
The Board's rushed levy of a Special Assessment without a rigorous estimate or bids has irredeemably tainted the current bidding process.
We Need a New Estimate Based on an Independent, Competitive Bidding Process.
So far, it seems likely that this will result in a much smaller estimate than the one provided by Reliable Engineering. If so, the Assessment must be reduced to match this number.
Any Excess of the Assessment Remaining After Facade Work Should Be Refunded to Co-Owners.
The Board has previously stated that if the facade project comes in under budget, any funds remaining from the Special Assessment will be rolled back into the reserve fund, not refunded to co-owners. The Board appears to have walked back this position, recently indicating that it may be open to reducing the Special Assessment if the project comes in under budget. While this is a step in the right direction, we believe that a stronger commitment to reducing the Assessment is needed.
Minimizing the Financial Burden on Co-Owners Should Be a Priority, Not an Afterthought.
The Board has not taken substantial steps to minimize the financial burden of the Special Assessment on Co-Owners. Apart from basing the Assessment on a flawed estimate, the Board has not identified reasonable long-term financing options. On August 25, 2025, more than two months after the Special Assessment was announced, the Board sent Co-Owners a "loan package" sketching out potential terms for Co-Owner loans to finance their portion of the Assessment. Nothing in the document verifies that the Board has at this late point even worked with any lenders on specific loan terms. Moreover, the terms proposed are not particularly favorable to Co-Owners, for instance disallowing partial prepayments.
We Can Do Better.
To do so, we need new leadership. That is why we are currently circulating a petition to hold a Special Meeting to vote on removing and replacing the Board. To sign the petition, join the next signing meeting or contact us. For more information on the candidates, how HCC's financial position can be improved, and FAQs, explore the other tabs of this website, contact us, and join the conversation.