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Personal Income Tax Return Data for 2010

The following is a reproduction of a memo sent on 10 January 2011 to all shareholders by our co-op’s certified public accountants: Prisand, Mellina, Unterlack & Co., LLP.

(Download the scanned memo [PDF, 43KB].)

TO: Shareholders of NAGLE APARTMENTS CORP.

RE: PERSONAL INCOME TAX RETURN DATA FOR 2010

Dear Shareholders,

Under the provisions of Section 216 of the Internal Revenue Code, a tenant stockholder of a Cooperative apartment is entitled to deduct from personal gross income a proportionate share of interest and real estate tax paid or incurred by the Cooperative Corporation. Note that these deductions are generally available if the taxpayer itemizes tax deductions.

For the year 2010 your Per Share individual income tax deductions are as follows:

MORTGAGE INTEREST $12.9367 per share

REAL ESTATE TAX $17.5523 per share

For the year 2010, if you were granted any real estate tax abatements, reflected in a maintenance credit or received by check, your real estate tax deduction as stated above should be reduced by the amount of the abatements you received.

In order to compute your total deductions for 2010, multiply the number of shares owned by you, as indicated on your stock certificate, by the amounts per share stated above. If you became a stockholder, or sold your stock in the Corporation during 2010, you are permitted to deduct a fractional part of the figures, based on the proportionate part of the year you owned the stock.

Contributed capital in 2010 was $18.9792 per share for mortgage amortization. This is not a deduction, but an increase in the basis of your investment.

Should you have any questions regarding the application of the aforementioned information to your individual income tax returns, please consult your personal tax advisor.

PRISAND, MELLINA, UNTERLACK & CO., LLP
Certified Public Accountants

Annual Budget Meeting 2010 – Update

The following is a reproduction of a letter sent on 17 December 2010 to all shareholders.

Dear Shareholders,

On Saturday, December 4, 2010, the Board met to review the operating budget for 2011. The corporation continues to be under cost pressure from a variety of sources, including real estate taxes, water/sewer rates, utility costs and building maintenance costs. Most of these are out of our collective control.

Changes for 2011

At the meeting, the Board voted to:

  1. Raise monthly maintenance charges $0.15 per share or 2.48% (there was no increase last year);
  2. Raise laundry charges $0.25 per load wash and dry;
  3. Upon sale, require a $250 utility deposit from the seller, the balance of which will be refunded to the seller after the unit’s utility charges have been fully posted to their account (usually after two months);
  4. Consistent with the last several years, the Board voted not to assess the co-op/condo and Star credits and abatements. Those of you who had previously signed up for these will continue to receive them January–June.

Other News

The Board and management are working with Rand Engineering to bid out needed and necessary roof replacement work (for the roofs of the residential buildings). We hope to begin in the first half of 2011. This is likely to be very comprehensive work with a twenty-year warranty and includes bringing several items up to code.

As a result of the engineering study done to prepare us for the roof repairs, it was discovered that the building roof s lack the necessary strength to support a “green roof” and lack the strength to support a continuous human presence (like a patio). However, the Board is reviewing other options to use the space to better the environment. A leading contender at the moment is a solar electric configuration.

Happy Holidays,

—Your Board of Directors and Management

Unplug Your Cell Phone Charger to Save Energy

By Kristin Withak

You may think keeping chargers for things like cell phones, iPods, hand-held devices, laptops and the like waste such a tiny amount of electricity that it’s not worth remembering to unplug them. Or, maybe you didn’t even know that when you unplug your cell phone (etc.) from its charger, the charger is still drawing power. It’s true! Only 5 percent of the power drawn by a cell phone charger is used to charge the phone. The other 95 percent is wasted when it is left plugged into the wall.

You may be thinking your single charger uses such a small amount of energy, but with the US having an estimated 190 million devices with rechargeable batteries, combined stand-by usage of all those cell phone chargers, each drawing a measly watt, could add up to 190 megawatts per day. That’s enough to power approximately 100,000 homes.

Keeping chargers for items that require their battery to be recharged plugged in when not attached to the item (or even after it has fully charged the battery) consumes about 6 percent of the nation’s electric bill. This is a bad habit that can slowly add up to a lot of wasted energy, and yet can be so easy to break the habit by just remembering to unplug your devices and plugs once the battery is fully charged. Spread the word! Think about how much energy can be saved if everyone did just this one little thing.

In the same vein (and this may be shocking), unused appliances plugged into the electrical outlet continue to draw electricity while the products are turned off, and in the average home nearly 75 percent of all electricity used to power electronics is consumed by products that are switched off. VCRs, televisions, stereos, computers, and kitchen appliances all use energy while not in use. The best way to help cut costs and electric use is to get a power cord that can be switched off when appliances are not in use. You’ll save the energy equivalent of a 100-watt light bulb that is always on.

Rough equivalent: 100W light bulb @ 8,760 hrs/year
Electricity: $.10/kWh
Total energy cost: $87.60
Cost of power strip: $4.00
Total energy savings: $83.60
Total CO2 savings: 1,217 lbs

Reminder: Annual Shareholders Meeting Wed 23 June

The Annual Meeting of Shareholders is scheduled for Wednesday 23 June 2010 at 6 p.m. in the courtyard (or in the basement Community Room if it rains). Dinner will be provided.

The purpose of the meeting is:

  1. To elect officers and directors to serve for a term as stipulated in the By-Laws of the Corporation;
  2. To consider and act upon all actions taken by the Board of Directors and Officers of the Corporation since the last meeting of shareholders;
  3. To transact such other business as may properly come before the meeting.

For more details, please read the Notice of Annual Meeting of Shareholders, which you received in the mail earlier this month.

If you are unable to attend the meeting, please fill out the Proxy form appointing a trusted shareholder who will be attending to vote on your behalf. Your appointed proxy should bring the filled-out form with her/him to the meeting.

See you at the meeting!

In Case You Missed It! – Residential Energy Tax Credit

Dear Shareholders,

Just in case you have missed the e-mail notifications and missed the wording on the annual tax letter, the 2009 annual tax letter from our Accountants contained some very good news! Shareholders are able to claim $71.9053 per share on their federal taxes for the Residential Energy Tax Credit. This is in addition to the normal annual mortgage interest deduction and the real estate tax deduction.

If you have not already filed your 2009 federal tax forms, please include this amount on Form 5695 for up to a maximum tax credit of $1,500. Use IRS Form 5695 to calculate your specific amount you can claim (the amount transfers to IRS Form 1040 line #52). Be sure to direct your accountant to include this amount on your return.

If you have already filed you 2009 tax forms and did not include this amount, you may wish to consider amending your return. It is recommended that you please talk to your accountant about how to do this (or use Form 1040x or similar) as this could increase your refund or decrease your amount due.

This tax credit is only for holders of corporation shares as of 12/31/2009. Please see attached letter where the wording is highlighted.

Sincerely,

Your Board of Directors

Personal Income Tax Return Data for 2009

The following is a reproduction of a memo sent on 15 January 2010 to all shareholders by our co-op’s certified public accountants: Prisand, Mellina, Unterlack & Co., LLP.

(Download the scanned memo [PDF, 430KB].)

TO: Shareholders of NAGLE APARTMENTS CORP.

RE: PERSONAL INCOME TAX RETURN DATA FOR 2009

Dear Shareholders,

Under the provisions of Section 216 of the Internal Revenue Code, a tenant stockholder of a Cooperative apartment is entitled to deduct from personal gross income a proportionate share of interest and real estate tax paid or incurred by the Cooperative Corporation. Note that these deductions are generally available if the taxpayer itemizes tax deductions.

For the year 2009 your Per Share individual income tax deductions are as follows:

MORTGAGE INTEREST $14.0088 per share

REAL ESTATE TAX $16.3263 per share

For the year 2009, if you were granted any real estate tax abatements, reflected in a maintenance credit or received by check, your real estate tax deduction as stated above should be reduced by the amount of the abatements you received.

In order to compute your total deductions for 2009, multiply the number of shares owned by you, as indicated on your stock certificate, by the amounts per share stated above. If you became a stockholder, or sold your stock in the Corporation during 2009, you are permitted to deduct a fractional part of the figures, based on the proportionate part of the year you owned the stock.

Contributed capital in 2009 was $18.1559 per share for mortgage amortization. This is not a deduction, but an increase in the basis of your investment.

Residential energy tax credits in 2009 were $71.9053 per share for installation of windows.

Should you have any questions regarding the application of the aforementioned information to your individual income tax returns, please consult your personal tax advisor.

PRISAND, MELLINA, UNTERLACK & CO., LLP
Certified Public Accountants

Annual Budget Meeting 2009 – Update

The following is a reproduction of a letter sent on 23 December 2009 to all shareholders by Stephen Vernon, Board President, on behalf of the Nagle Apartments Corp. Board of Directors and Management.

Dear Shareholders,

I wanted to give you an update on the Board’s December 5th annual budget meeting and arrearage. Since the last letter went out, progress has been made both in the Court cases and other arrearage balances. The Board and management will continue to aggressively pursue collection of arrearage balances until the amounts are fully paid.

The Board voted to not increase maintenance at this time for 2010. Some shareholders may actually see a decrease in their monthly charges staring in January 2010 as the annual STAR credits are applied to shareholder bills January through June.

This decision not to increase maintenance at this time comes at a cost. In order to accomplish this, the Board put off some funding to the Capital Reserves and is counting on lower natural gas prices to offset increases in real estate taxes, Water/sewer bills and wages. One of the reasons we are able to do this is the great news that our natural gas usage per heating degree day (a measure of efficiency) is down approximately 40% from 2005 due to Board action on energy issues. With more work to do, we are more efficient now than ever.

As our budget is cost driven, it is unlikely that these actions can be repeated. Deferring repairs only increases costs in the end. Or more properly, deferring saving for repairs only drives up funding needs in the end. However, with the economy the way it is, the Board decided that an increase at this time could be deferred.

You will no doubt notice that I used the phrase “at this time.” Should an adverse budget event cause us a shortage in operating funds, the Board may have to reconsider its decision: but no increase for now.

The Board and Management want to wish you, your family and friends a happy holiday season and a fantastic new year!

Sincerely,

Stephen Vernon, President
On behalf of the Nagle Apartments Corp. Board of Directors and Management

Start Small and Think Long-Term: Saving Energy

The following is an excerpt of an article in The New York Times by Elizabeth A. Harris that talks about NaBors Apartments’ efforts to become more environmentally responsible.

Stephen Vernon is the president of a 112-unit co-op in Inwood called Nagle Apartments that has tried hard to become more environmentally responsible. The residents of the three-building complex started simply about five years ago by upgrading the lighting with motion sensors and more efficient bulbs. Then they moved on to larger projects.

“Our goal,” Mr. Vernon said, “was to do green projects that made fiscal sense.”

Almost all of the windows were replaced and new radiator valves were installed, at a cost of about $860,000. To cover the costs of these and other upgrades, the building took out a two-part loan and the development authority brought down the interest, leaving the residents with an average rate of 4.31 percent.

Through a combination of selling apartments that the co-op owned, interest on investments (it owns some Treasury bonds), and energy savings, the improvements were made without an assessment or maintenance increase.

These days, the building’s boiler spends a great deal of time resting comfortably on the lowest setting, and gas consumption has decreased by around 40 percent.

Now, the building is looking into putting in a green roof — layers of plantings and soil.

Green roofs keep the top of a building cool and provide a layer of insulation. They also retain rainwater, which can help keep the city’s sewer system from being overwhelmed in a heavy rain. But some consultants say that you’ll get more bang for your buck keeping the roof cool with white or silver paint and that a building will be better insulated with traditional materials like fiberglass. Green roofs are, however, much nicer to look at — and hang out on — than the alternative.

Another initiative that the co-op is undertaking is environmentally friendly renovations. As rental apartments become vacant, the co-op makes them over for sale. It uses recycled materials where possible, installs energy-efficient appliances and decorates with low- or nontoxic paints and finishes. One of these apartments, a 900-square-foot two-bedroom, is on the market for $359,000.

The sales agent, Matthew Bizzarro of Stein-Perry Real Estate, who also lives in the building, says that he has priced it a bit higher than comparable apartments in the area. Traffic has been good, he says, and has included people who say the green factor appealed to them.

Read the whole article in The New York Times.

Arrearage in Maintenance Payments

The following is a reproduction of a letter sent on 30 October 2009 to all shareholders by Stephen Vernon, Board President, on behalf of the Nagle Apartments Corp. Board of Directors and Management.

Dear Shareholders,

The Board and Management want to bring an issue to your attention that may have a financial impact to you and to our Co-op. As of the last Board meeting, arrearage in maintenance payments (late payments) has increased to approximately $65,000. This is nearly one month’s worth of budgeted cash collections. In comparison, one of our neighbor buildings consistently has less than $500 arrearage at the end of each month.

While we have reserves and can weather a temporary reduction of collections, we are not in a position to carry this much of a cash loss for extended periods. The Board and Management are working hard to make sure all of the charges are collected. We want you to be informed that if we have to fund this amount as a maintenance increase on next year’s bills, this would add approximately $.48 per share per month to everyone’s charges. Here is what it would look like per month for each type of unit should this occur:

Floor
Low Middle High
Studio $26.33 $28.73 $31.12
One bedroom R Line $40.70 $43.09 $45.49
One bedroom $47.88 $50.27 $52.67
Two bedroom $62.24 $64.64 $67.03

The following table is what it would look like on top of the current $6.05 per share per month for each type of unit should this occur:

Floor
Low Middle High
Studio $359.08 $391.73 $424.37
One bedroom R Line $554.95 $587.59 $620.24
One bedroom $652.88 $685.52 $718.17
Two bedroom $848.74 $881.39 $914.03

The Board and Management realize how unfair this may be but the simple truth is that if we don’t have cash in the operating account, we can’t pay operating bills.

If you pay your maintenance on time each month, you have our respect and gratitude. If you miss on occasion and get caught up again the next month, we understand. However, if you are chronically late, you are placing an unacceptable burden on your neighbors and hurting your own financial condition (up to and including unnecessary legal charges and potential loss of your investment).

One of the strengths of a housing cooperative is the ability to work together to achieve goals none of us could accomplish on our own. The minimum requirement in working together is taking responsibility to pay shareholder charges timely. In that light, we encourage those of you in financial difficulty to schedule a payment plan with management. Taking this action early could save the late shareholder unnecessary legal fees. Late shareholders and shareholders with payment plans will still have to pay late interest. Management does not have the authority to forgive charges on shareholder bills.

Finally, our bank loan covenant with Amalgamated Bank gives the bank the right to impose a maintenance increase should collections fall behind certain levels. We are already below this threshold. While I can’t tell you what the bank may decide, I can tell you that we have until 12/31/2009 to increase our cash collections ourselves before they become aware of arrearage levels.

Please make every effort to pay your monthly charges by the 15th of each month.

Sincerely,

Stephen Vernon, President
On behalf of the Nagle Apartments Corp. Board of Directors and Management

An Apartment Gets a Green Makeover

By Corinne Ramey. Article reprinted from The Manhattan Times.

Kermit the Frog famously proclaimed that it wasn’t easy being green, but interior designer Marvin Jay Brooks disagrees.

“It’s been so easy to renovate from a green perspective,” said Brooks.

The interior designer is currently working on an environmentally-friendly renovation of an apartment on Bogardus Place in Inwood. The renovation is spearheaded by one of a growing number of green committees or groups on co-op boards that are dedicated to making their buildings more environmentally friendly. Throughout the renovation of the two-bedroom apartment, Brooks and his team have not only used green components, like paint and tiling, but made sure that all the current materials are disposed of or recycled in an environmentally-friendly way.

“We’re trying to be as eco-friendly as possible,” said Kristin Tsafos, co-head of the co-op’s green committee. The building, which was built in the ‘50s, became a co-op in the ‘80s, she said. Today, the co-op, which is composed of three different buildings, is trying to be as environmentally friendly as possible, using everything from energy-efficient windows to compact fluorescent light bulbs. “I just recently moved in November, and one of the things that drew me to the co-op was they that they had a newly formed green committee,” said Tsafos, who also works at Scholastic.

From floor to ceiling, Brooks and his team are using the greenest materials that fit within their price range. These include low-VOC, or volatile organic compound, water-based paint, which gives off less chemicals or pollutants than conventional paint. The joint compound that goes on the walls was produced in New York City — so no carbon footprint from driving it across the country — and the paint and joint compound were purchased at Green Depot, a store on the Lower East Side.

The apartment also has ecoTech brand tiles, energy efficient lighting and windows and energy-saving fixtures. In the bathroom, they have installed a low-flow toilet and showerhead.

The biggest challenge is realizing that being environmentally friendly doesn’t end with paint and flooring, Brooks said. “We’re not only using green products, but working in a green fashion,” said Brooks. “You can’t just throw everything in a black bag.” For example, a scrap metal collector in the Bronx picked up the stove, and the carpet will be taken to a recycling center in New Jersey. He said the least green part of the renovation was probably the linoleum floor, which they hadn’t found a way to recycle and was too water-damaged to use again.

Although Brooks has been working as an interior designer for five years, this was his first renovation so focused on environmental impact. He said much of his environmental education came from Green Depot, which provided literature on recommended products.

The renovation is more expensive than a conventional one, said Tsafos. Brooks estimated the total cost would be between $20,000 and $30,000. “On a regular renovation, I highly doubt an owner would spend $35 to $50 for a gallon of paint,” he said. Normal, low-end paint costs between $12 and $15 a gallon. However, on some components the co-op was limited by price. “Not everything is available in a price range we could afford,” said Tsafos. “For the cabinets, we ended up going with IKEA.”

Although the apartment doesn’t yet have a buyer, the co-op hopes to put it on the market in August. Tsafos estimated the approximately 975-square-foot apartment would sell in the mid-$300,000 range. “This will be one of the first green renovations in the neighborhood,” said Matthew Bizzarro, a real estate agent for Stein-Perry Real Estate who will be selling the apartment. Bizzarro said that clients would likely be willing to pay slightly more for the green renovation. “I’m finding the trend is that more clients are looking to be more environmentally and socially responsible,” he said. “I think the demand is high, but there aren’t a lot of options that allow a customer to make a decision.”

Brooks, who lives in Washington Heights, said that although one green apartment won’t have a huge environmental impact, the project demonstrates that others can do similar renovations at affordable prices. “I think it’s a step in the right direction of how to get people on board,” he said. And so far, working on the green renovation has been rewarding. “I can change people’s lives just by changing their surroundings,” he said.

The Manhattan Times is the bilingual newspaper of Washington Heights and Inwood.