Garage Roof and Interior
The Board, Management and Rand Engineering are preparing repair estimates for the work on repairing the garage roof and interior.
The garage operation provides income to the shareholders that subsidizes shareholder’s annual cash needs. Last year, the garage provided $167,171 in income that helped keep our maintenance charges low. If we did not have the garage rental income, maintenance would have to be raised $1.20 per share per month to cover the lost funds, all other things being equal (or $162 per month on a mid-floor 2-bedroom unit).
The current lease on the garage operator ends 12/31/2013. Since closing the garage for part of the year is likely to facilitate repairs, January 1st 2014 is the best time to start making repairs and improvements.
The repairs on the garage are going to be expensive and could come close to $2 million. For the sake of comparison, our current mortgage balance is approximately $18 million as of March 31, 2013. Or put another way, the total cost per share comes to $173.25 or nearly $24,000 on a mid-floor 2-bedroom unit.
Water damage only gets worse with rime. Delaying the work will only make it more expensive and makes our garage less competitive when compared to other garages m the area. The Board is contemplating a comprehensive and quality repair project that fixes a number of defects from previous repair work (and a stop work order from those earlier repairs) which have prevented us in participating in various retail estate tax credits NYC offers (for example the J-51 credit).
The Board will begin reviewing financing options in the near future. Lending standards have increased since the financial crisis in 2008. The Board may have to choose a variety of funding options (loans and assessments) and financial adjustments (adjustments to Maintenance charges) to obtain the necessary funds for this large and important project.
Co-op Abatement and STAR Credit
New York State passed late laws extending the Co-op Abatement credit and the STAR credits. Management did not receive from NYC the lists of eligible shareholders until March 2013.
Therefore, beginning with the April bills, the STAR credit will be reflected for three months (April, May and June) and will double in size reflecting the shorter payout period (it is usually January through June). If you do not receive the credit, you need to apply for the STAR credit on your own through the NYC.gov website.
The Co-op Abatements will not be paid out until June at the earliest. NYC began checking taxpayer tax returns to verify if the shareholder can report that their co-op address is their primary address and has contacted those shareholders directly. In order to receive the Co-op Abatement it is important to have your income tax returns reflect your Nagle or Bogardus street address. NYC will inform management of the final list and amounts, and then Management will distribute the funds.
Countdown to Mortgage Payoff!
Our current mortgage with NCB gets paid off on May 1, 2023. That is just over 10 years and 122 payments away. The mortgage has provisions making it too expensive to refinance. The int. rate is 6.27% and we currently pay $19,767 per month (20% of monthly income).
Baby Boom Coming!
Wait for it! A baby boom is coming. The writer of this newsletter knows of seven babies due in the near future. Two sets of twins in 31 Nagle and three single babies due in Bogardus. Watch for storks!
What is this assessment on my monthly bill?
In December 2011, the Board decided to enact an assessment of 2.5% of maintenance each month to help fund necessary capital repairs and improvements. In December 2012, the Board voted to increase this to 5%. Capital repairs and improvement are special projects that extend the life, safety and habitability of the buildings and are not funded through the monthly maintenance charge (which is used more for cleaning, operations, taxes, staff and the like). In 2012, the assessment of 2.5% of maintenance brought in a total of $21,277 of funds. The expectation for 2013 is $42,450.
In the past, the co-op relied on the sale of former rental units to fund necessary capital repairs. In a sense, the shareholders were spoiled with improvements to the building for which they did not have to contribute funds. Sadly, this happy situation is ending. After the sale of the last remaining open unit, only 5 more units remain and they are filled with our renter neighbors. The assessment is a reflection of the fact that as owners, we need to contribute funds to the capital repairs and improvements that keep our unit values competitive, our building safe, in repair and a great place to live.
|Address||Sale Price||Bedrooms||Sale Date|
|31 Nagle Avenue, 2K||$305,000||2||6/28/2012|
|14 Bogardus Place, 3U||$245,000||1||10/18/2012|
|14 Bogardus Place, 6W||$272,000||1||10/22/2012|
|37 Nagle Avenue, 6D||$235,000||1||12/19/2012|
|31 Nagle Avenue, 6M||$242,500||1||12/19/2012|
|37 Nagle Avenue, 4F||$240,000||1||1/15/2013|
|37 Nagle Avenue, 6F||$272,000||1||1/10/2013|
|37 Nagle Avenue, 5E||$350,000||2||2/27/2013|
Dates to Remember
- April Board Meeting, April 22, Board Room, 37 Nagle, 7:30pm
- May Board Meeting, May 27, Board Room, 37 Nagle, 7:30pm
- June Board Meeting, June 10, Board Room, 37 Nagle, 7:30pm
- Annual Meeting (tentative date), June 26, 6pm dinner, 7pm meeting
The Board wants to thank Eduardo Gomez for his service to the co-op by serving as our webmaster for nearly 10 years. Our Board President stated that he has had many a compliment about the co-op’s website (www.naborsapts.org) over the years. Eduardo, thank you for dedicating your time and passion to our community!