Building debt & maturity · 1 source passages
PDF page 16 · financial statements as of 2017-12-31
the eligible shareholders.
(4) MORTGAGE PAYABLE AND LINE OF CREDIT
Mortgage Payable
On January l 0, 2012, the Corporation refinanced its existing underlying mortgage obligation with New
York Community Bank in the amount of$ I, 750,000. Commencing March 1, 2012, monthly debt payments
of $6, 198 are to be applied to interest only at a rate of 4.25% per annum, and is payable through February
I, 2022, the maturity date. The mortgage note is secured by the land and building owned by the
Corporation.
Terms of prepayment are as follows:
Prepayment may be made only in full, and upon thirty days (but not more than sixty days) prior to written
notice. If the loan is prepaid prior to February I, 2014, the borrower must also pay a penalty of 5% of the
principal balance; from and after February I, 2014 and prior to February 1, 2016, the penalty is 4% of the
principal balance; from and after February 1, 2016 and prior to February 1, 2018, the penalty is 3% of the
principal balance; fro
Reserves & financial health · 5 source passages
PDF page 14 · financial statements as of 2017-12-31
ASH USED BY OPERATING ACTIVITIES ( 41,877) (22,761)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of propetiy and equipment (3,000) -0-
Decrease in Reserve Fund -0- 53 565
CASH PROVIDED (USED) BY INVESTING ACTIVITIES (3,000) 53 565
NET INCREASE (DECREASE) JN CASH AND CASH EQUIVALENTS (44,877) 30,804
Cash and cash equivalents at beginning of year 44 877 14 073
Cash and cash equivalents at end of year $ -0- $ 44,877
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION EXHIBITD
2017 2016
Cash paid during the year:
Corporate income taxes $ 3,042 $ 2,343
Interest $ 74,375 $ 74,375
Non-Cash Investment and Financing Activities:
Property and equipment accrued was $1,700 for the year ended December 31, 2017.
See Notes to Financial Statements.
-5-
PDF page 18 · financial statements as of 2017-12-31
State and City tax returns are subject to examination by the applicable taxing
authority for a period of three years after filing the returns.
(9) FUTURE MAJOR REPAIRS AND REPLACEMENTS
The Corporation has not conducted a study to determine the remaining useful lives of the components of
common property and current estimates of costs of major repairs and replacements that may be required
in the future. When replacement funds are needed to meet future needs for major repairs and replacements,
the Corporation may have the right to borrow, utilize available cash, increase maintenance charges, pass
special assessments or delay repairs and replacements until the funds are available. The effect on future
assessments has not been determined at this time.
The Corporation has a Reserve Fund in the amount of$222,898 as of December 31, 20I7 to be used for
future major repairs and replacements, when needed.
(10) UNION BENEFITS
Substantially all of the Corporation's employees are member
PDF page 20 · financial statements as of 2017-12-31
ARDEN HOUSE OWNERS, INC.
SUPPORTING SCHEDULES - BALANCE SHEETS
As of December 31, 2017 and 2016
2017 2016
RESERVE FUND Schedule 1
Balance - January I, $ 220,609 $ 271,759
Add: Interest income 2,289 2,415
Less: Transfers to operations -0- (53,565)
Balance - December 31, $ 222,898 $ 220,609
Consisting of:
New York Community Bank- Money Market Account $ 221,870 $ 219,581
Santander Bank - Money Market Account 1 028 1 028
$ 222,898 $ 220,609
ACCOUNTS PAY ABLE AND ACCRUED EXPENSES Schedule 2
Due to agent $ 2,790 -0-
Protection expense 9,766 8,523
Gas - heat 5,117 5,671
Auditing 2,958 3,550
Repairs - materials and labor to contractors 125 405
Payroll taxes and employee benefits 1,198 2,216
Electricity and gas 1,628 1,730
Capital improvements 1,700 -0-
Exterminating 283 336
Water and sewer charges 33, 141 13,904
Supplies 3,381 -0-
Miscellaneous administrative 13 471
Elevator contract 1,532 -0-
Boiler repairs 2,060 -0-
Payroll 2,496 -0-
New York City Corporate tax -0- 300
PDF page 11 · effective period must be checked in the document
erating account
Receivables:
Shareholders' arrears
Senior citizen subsidy
Prepaid Expenses:
Insurance
Real estate taxes
TOT AL CURRENT ASSETS
Reserve Fund - Schedule I
PROPERTY AND EQUIPMENT
Land
Building
Building improvements
Building equipment
Less: Accumulated depreciation
ARDEN HOUSE OWNERS. INC.
BALANCE SHEETS
As of December 31. 2017 and 2016
ASSETS
NET PROPERTY AND EQUIPMENT
TOT AL ASSETS
See Notes to Financial Statements.
-2-
$
2017
-0-
20,937
3
17,342
54 268
92,550
222,898
1,237,000
2,886,648
365,360
54 071
4,543,079
(2,673.771)
1.869.308
$ 2.184,756
EXHIBIT A
$
2016
44,877
5,985
-0-
14,688
-0-
65,550
220,609
1,237,000
2,886,648
360,660
54 071
4,538,379
(2,576,020)
1.962.359
$ 2.248,518
PDF page 15 · effective period must be checked in the document
and Cash Equivalents
For the purpose of the statement of cash flows, the Corporation considers all highly liquid debt instruments
(not used to meet Reserve Fund requirements) purchased with maturity of three months or less to be cash
equivalents.
Depreciation
Property and equipment are stated at cost. Property and equipment are being depreciated over their
estimated useful lives using the straight-line method.
Amortization of Debt Issuance Costs
Costs incurred in obtaining long-term financing, included under mortgage payable on the balance sheets,
are amortized on a straight-line basis, which approximates the effective interest method, over the terms of
the related debt agreement, as applicable.
Basis For Federal Income Taxes
The issuance of shares of the Apartment Corporation to the Sponsor and others at the closing, constituted
an exchange under Section 351 of the Internal Revenue Code. The tax basis of the land and building to the
Corporation is the same as in the hand
Assessments & charge increases · 2 source passages
PDF page 17 · financial statements as of 2017-12-31
nt
of$34,773 or approximately $2.45 per share, proceeds of which were used to fund operations.
(6) CONTRIBUTIONS TO CAPITAL
The Corporation treats special assessments used for the acquisition of capital improvements and
maintenance charges used for amortization of mortgage principal as contributions to capital for tax purposes
only.
(7) RELATED PARTIES
Rokowsky Management has been engaged by the Corporation to provide management services for the
property, including processing all cash receipts and disbursements. The Corporation's cash is in the
custody of Rokowsky Management.
Rokowsky Management and 150 Hawthorne Associates (the Sponsor) are affiliated with Arden House
Owners, Inc. through stock ownership. All unsold shares in the Corporation are owned by 150 Hawthorne
Associates who in turn has an interest in Rokowsky Management. The total shares owned by the Sponsor
as of December 3 J, 2017 and 2016, is 7,547 and 7, 724 or 53.2% and 54.47% of the total shares in the
Cor
PDF page 18 · financial statements as of 2017-12-31
needs for major repairs and replacements,
the Corporation may have the right to borrow, utilize available cash, increase maintenance charges, pass
special assessments or delay repairs and replacements until the funds are available. The effect on future
assessments has not been determined at this time.
The Corporation has a Reserve Fund in the amount of$222,898 as of December 31, 20I7 to be used for
future major repairs and replacements, when needed.
(10) UNION BENEFITS
Substantially all of the Corporation's employees are members of the Stationary Engineers, Firemen,
Maintenance and Building Services Union Local 670 and covered by a union sponsored, collectively
bargained defined benefit pension, annuity and health insurance plan (the "Plan"). The union agreement
which is customized to each Corporation will expire on December 31, 2019. The Corporation makes
contributions to the plan on the number of weeks worked by each employee covered under the union
contract. During each