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This Nineteenth Amendment to the Offering Plan (the "Fourteenth Amendment"),
modifies and supplements the terms of the "Offering Plan - A Plan to Convert to
Cooperative Ownership Premises at 41 Eastern Parkway, Brooklyn, New York 11238”,
(dated April 22, 1983, as amended by eighteen (18) prior amendments, hereinafter
collectively referred to as the "Plan". The name of the Apartment Corporation is 41
EASTERN PARKWAY CORP. (the “Corporation”). The cooperative apartment building
is located at 41 Eastern Parkway, Brooklyn, New York 11238 (the “Premises”).
The terms of the Nineteenth Amendment are as follows:
FIRST: FINANCIAL UPDATE DISCLOSURE
1. The Unsold Shares of the Corporation owned by the Sponsor or
Holder of Unsold Shares or its designees are set forth in Exhibit "A" annexed
hereto and made a part hereof. Sponsor owns less than 10% of the shares of
the Corporation.
2. Sponsor Control. Sponsor is not in control of the Board of Directors.
Sponsor relinquished control of the co-op board on January 1, 1987. The current
members of the Board of Directors of the Corporation and their respective titles are as
follows:
Hayley Gorenberg President
Susan Baushcbaum Vice President
John Comfort Treasurer
Mark Voepel Director
Shaye Roseman Director
James Stubbs Director
Issac Voyticky Director
The members of the Board and directors have no connection with Sponsor or
Holder of Unsold Shares.
3. Current Financials. Certified financial statements of income and expense
of the Corporation for the fiscal years 2020, 2021 and 2022 are provided as Exhibit "B"
hereto. The budget for the year commencing January 1, 2023 to December 31, 2023 is
provided as Exhibit "C" hereto. Financial Statements for the years 2016-2019 can be
made available to purchaser(s) upon request.
4. Maintenance Charges. The maintenance as of October 1, 2023 was
$82.50 per share per month.
5. Reserve Fund. The Corporation maintains a reserve fund. The amount of
the reserve fund as of January 2, 2024 was $5,039,042.
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6. Coop Abatement and Star Exemption. Eligible shareholders received
NYC Real Estate Tax Abatement for the year ending December 31, 2022 in the sum of
$101,673. Eligible shareholders received NYS exemption from school property taxes
(Star) in the sum of $4,074. The Board of Directors imposed a one time charge in June
of 2022 of $58.17 per share, for a total of $101,623 and in June 2021 of $57.94 per
share, for a total of $101,221 to offset the coop abatement and Star exemption due to
shareholders.
7. Mortgage Payable. (a) On June 8, 2020, the Coop secured an interest-only
ten-year (10 year) mortgage from National Cooperative Bank (NCB) for the principal
amount of $10,300,000. The interest rate is three percent (3%); (b) On April 26, 2022,
the Coop secured a second mortgage from National Cooperative Bank (NCB) for the
principal amount of $4,500,000. The interest rate is four and one-quarter percent
(4.25%); (c) On June 8, 2020, the Coop secured a revolving line-of-credit with National
Cooperative Bank (NCB) for the principal amount of $1,000,000. The interest rate is the
prime rate with a floor of three and one-half percent (3.5%) and matures in conjunction
with the first mortgage. As of December 31, 2022, no amount was drawn on the line-of-
credit.
8. Maintenance Increase. After reviewing the Operating Budget for the 2021,
2022 and 2023 fiscal years, the Coop found it necessary to increase maintenance by
three and one-half percent (3.5%) effective January 1, 2021, five percent (5%) effective
January 1, 2022, and four and three-quarters percent (4.75%) effective January 1, 2023.
9. Transfer Fees. At a special meeting of the shareholders held on April 18,
2018, two-thirds of the outstanding shares of the Cop voted to amend Paragraph 16(iv)
of the Proprietary Lease to include the following language:
That in addition to the fees charged under this paragraph, that at the time of the
transfer of the shares in the Corporation and the assignment of the proprietary
lease, a fee is due and payable from the outgoing shareholder to the Corporation
in the amount of two (2%) percent of the gross sale price.
10. Local Law 11 Facde Repairs. On October 13, 2022, the Corporation signed
a construction contract for $3,300,000 for facade repairs and restoration repairs to be
funded out of the Corporation’s Reserve Fund.
THIRD: LOCAL LAW 11
The Corporation is in the process of completing facade repairs and restoration to
the Building in order to meets its obligations under Local Law 11. Anticipated time of
completion is Fall 2024.
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