17 EAST 17 STREET

PDF page 117 · effective period must be checked in the document

zes deductions will be entitled to deduct, for Federal income tax purposes , real estate taxes assessed against his Unit as well as interest on any mortgage indebtedness secured by his Unit. 1 See Sections 163 (interest) and 164 (taxes) of the Internal Revenue Code of 1986, as amended (the “Code”); Revenue Ruling 64 -31, 1964-1 (Pa rt I) Cum. Bull. 300. 2 These expenses will be deductible when paid or accrued in accordance with the Unit Owner’s method of accounting. In addition to the interest and real estate tax deductions discussed above, a Unit Owner who uses all or part of his Uni t in the conduct of his trade or business or for the production of income may deduct a portion of common charges allocable to such use. Each such Unit Owner will be entitled to deduct cost recovery on his Unit (similar to depreciation), computed separately and based upon the cost of his Unit (see Code Section 1012). Such deduction may be determined under Code Section 168 by using the straight -

PDF page 1 · effective period must be checked in the document

__________________________ TOTAL OFFERING PRICE OF 20 RESIDENTIAL UNITS ...................................................$13,512,000.00 PROJECTED RESERVE FUND OF CONDOMINIUM (1) ...........................................................$381,360.00 _____________________________________________________________________________________________ (1) THE ACTUAL AMOUNT OF THE RESERVE FUND WILL BE NOT LESS THAN 3% OF THE LAST DISCOUN T PRICE OFFERED TO TENANTS WHEN THE PLAN IS DECLARED EFFECTIVE, MINUS A CREDIT, IF ANY, FOR ELIGIBLE CAPITAL REPLACEMENT WORK UNDERTAKEN BY SPONSOR, PURSUANT TO THE RESERVE FUND LAW. NOTE: RESERVE FUNDS MAY NEVER BE USED TO REDUCE MAINTENANCE CHARGES AS PROJECTED IN THE PLAN. SEE SECTION “RESERVE FUND” FOR MORE DETAILS. _____________________________________________________________________________________________ SPONSORS: ATTORNEY FOR SPONSOR: CT 17E17 LLC GPNZ 17E17 LLC 85 DELANCEY STREET NEW YORK, NEW YORK 10002 THE LAW OFFICE O

PDF page 2 · effective period must be checked in the document

ONDOMINIUM ..... 112 AA. OPINION OF COUNSEL................................................................................................ 113 BB. RESERVE FUND ............................................................................................................ 119 CC. WORKING CAPITAL FUND ........................................................................................ 121 DD. IDENTITY OF PARTIES................................................................................................ 122 EE. SPONSOR’S PROFIT ..................................................................................................... 124 FF. REPORTS TO UNIT OWNERS ..................................................................................... 125 GG. DOCUMENTS ON FILE ................................................................................................ 126 HH. GENERAL .................................................................................................

PDF page 6 · effective period must be checked in the document

the Sponsor will be required to deposit at closing with the Board of Managers two (2) months’ estimated common charges for his unit to be used as working capital. The Sponsor will not be responsible for this contribution, however, on unsold units. See Sections “Unit Closing Costs and Adjustments” and “Working Capital Fund” for further details. d. At closing, the Sponsor will collect each purchaser’s pro-rated share in the first year’s insurance premium , and any pre -paid water and sewer, and any other pre -paid expenses, from the date of the closing until the end of the first year of condominium operation. This amount will be calculated in proportion to each purchaser’s common interest and will be used to reim burse the Sponsor for payment of the first year’s pre- paid expenses. See Section “Unit Closing Costs and Adjustments” for further details. 8. Each unit owner is responsible for the payment of the electricity costs and gas cost (gas is used for cooking), of his

PDF page 7 · effective period must be checked in the document

turned to Purchaser, in accordance with the Plan. See Section “Procedure to Purchase” for details. 12. No representation is made that the initial working capital fund will be adequate to cover current or future expenses, including repairs or replacements, and if additional funds are required over and above the initial capital fund, it may be necessary for the board of managers to increase the common charges. See Section “Working Capital Fund” for details. 13. Insurance coverage does not include claims for personal injury or property damage occurring within a Unit. Therefore, the Unit Owner should consider obtaining the following at his own cost additional insurance cost covering the contents of the Unit, personal property, and liability for personal injury as a result of occurrences in the individual Unit. See sections “Footnotes to Schedule B” and “Rights and Obligations of Unit Owners” for details. 14. All Unit Owners shall severally indemnify each member of t he Con

PDF page 8 · effective period must be checked in the document

agers for more than two years will be disclosed by a duly filed amendment to this plan. See Section “Notes to Schedule B.” 19. In addition to the Working Capital Fund which can be subject to reduction for closing apportionments, and in accordance with Title 26 § 703 of the Administrative Code of The City of New York, within thirty (30) days after the first closing, Sponsor shall establish and transfer to the condominium board of managers, a reserve fund to be used exclusively for making capital repairs, replacements and improvements necessary for the health and safety of the residents of the building. Such reserve fund shall be exclusive of any other funds required to be reserved under the plan or applicable law or regulation of the state attorney general. Such reserve fund also shall be exclusive of any working capital fund and shall not be subject to reduction for closing apportionments. Such fund shall be established in an amount equal to either : (i) three percent (

PDF page 9 · effective period must be checked in the document

ng installation of a new intercom system to the Units and front door to the building, and installation of new windows throughout the building. The Reserve Fund will therefore consequently be diminished by the cost of the improvements . The estimated costs of the foregoing improvements are as follows: Façade: $50,000.00 Lobby/Intercom: $75,000.00 Windows: $50,000.00 Total: $175,000.00 Whether or not Sponsor does indeed undertake said improvements and claim the credit against the Reserve Fund initial contribution will be disclosed in a subsequent amendment to the Offering Plan. In Sponsor’s opinion, the amount allocated to the reserve fund is sufficient for major capital improvements and replacements which are reasonably foreseeable within three (3) years from the date of this offering. NEITHER THE DEPARTMENT OF LAW, NOR ANY OTHER GOVERNMENTAL AGENCY, HAS PASSED UPON THE ADEQUACY OF THE WORKING CAPITAL OR RESERVE FUNDS. NO REPRESENTATION IS MADE THAT

PDF page 29 · effective period must be checked in the document

costs of forming the condominium. See Section "Unit Closing Costs and Adjustments." At closing, each Purchaser shall deposit a contribution to the Working Capital Fund equal to two (2) months' estimated monthly common charges for the unit. See Section "Working Capital Fund." *** Estimated individual heating and electric costs are set forth in Schedule B-1. Note: There arer no Limited Common Elements currently in this Offering Plan. If at some point in the future limited common elements are created, this Schedule A will be updated in a duly filed Amendment to the Plan. Year Projected: May 1, 2017 - April 30, 2018 17 East 17th Street, Brooklyn, New York 11216 F. SCHEDULE A OFFERING PRICES AND RELATED INFORMATION The Presidio Condominium

PDF page 32 · effective period must be checked in the document

icable. In addition, prospective purchasers will be required to pay at closing, among other things: (i) two (2) months’ common charges to be used as working capital (the Sponsor will not be responsible for this contribution, however, on unsold units); (ii) New York City and State transfer taxes; and (iii) $ 2,500.00 to defray Sponsor’s costs of creating the condominium. See section entitled “Closing Costs and Adjustments” below. THE ABOVE IS NOT INTENDED TO BE A COMPLETE DISCUSSION OF ALL LIMITATIONS IMPOSED BY THE CODE, PARTICULARLY FOR INVESTORS. ALL PURCHASERS ARE ADVISED TO SEEK ADVICE FROM THEIR TAX CONSULTANTS CONCERNING TAX CONSEQUENCES OF PURCHASE OF A UNIT IN A CONDOMINIUM.

PDF page 33 · effective period must be checked in the document

(6): $8,100.00 Service Contracts (7): $0.00 Insurance (8): $7,516.00 Audit Fees (9): $1,400.00 Legal Fees (9): $1,500.00 Contingency (10): $5,000.00 Reserve Fund (11): $14,000.00 Total Expenses: $139,092.00 Purchasers who rescind within five (5) days. Sponsor may not declare the Plan effective where there are any material changes to the budget if these changes have not been disclosed by a duly filed amendment to the Offering Plan. percent (25%) or more, the Sponsor must offer all Purchasers the right to rescind and a reasonable period of time that is not less than fifteen (15) days after the date of presentation to exercise the right, whether or not Sponsor offers to guarantee the previous budget projection. Sponsor will return any deposit or downpayment to If the actual or anticipated date of commencement of condominium operation is to be delayed more than six (6) months from the budget year projected in the offering plan, the Plan must be amended to include a revised budget disclosi

PDF page 38 · effective period must be checked in the document

ses in one or more items of operating expense above the amounts projected or for unanticipated expenses. This amount is separate and apart from the reserve fund that is to be used for capital expenditures. The budget may be modified from time to time prior to the commencement of, or during, condominium operation to add new items of expense or to increase one or more items of operating expense. The funds for such modifications may be provided by decreasing this budget item or by decreasing one or more items of expe nse, or both. 11. Reserve Fund This item is to be used as a yearly reserve fund to be set aside and used for periodic capital replacements or necessary repairs of common elements and is approximately 10% of the Annual Budget. At this time, the Sponsor has no knowledge of any capital improvements that may be have to be made during the first five years of condominium operation.

PDF page 55 · effective period must be checked in the document

a new intercom system to the Units and front door of the building , and install ation of new windows throughout the building. Additionally, t he Reserve Fund will be diminished by that the cost the improvements. The estimated costs of the foregoing improvements are as follows: Façade: $50,000.00 Lobby/Intercom: $75,000.00 Windows: $50,000.00 Total: $175,000.00 Whether or not Sponsor does indeed undertake said improvements and claim the credit against the Reserve Fund initial contribution will be disclosed in a subsequent amendment to the Offering Plan. See section “Reserve Fund” for more details. Purchase Agreements are not assignable or transferable by any purchaser without the prior written consent of the Sponsor which is under no obligation to gran t such consent. (See section, “Assignment of Purchase Agreements”).

PDF page 59 · effective period must be checked in the document

the Closing for such Unit a sum not less than an amount equal to the greater of two (2) months Common Charges or two (2) month’s rent to be used as working capital to furnish services required under the non -purchasing tenant’s lease, the applicable New York City Rent Laws and any other applicable laws and regulations. Upon notice by the managing agent that the said deposit has been diminished, such fund shall be replenished by the Unit Owners within thirty (30) days of such notice. The failure of the Unit Owner to replenish this fund within said thirty (30) day period shall result in the Board of Managers ha ving a lien against the Unit. Interest, if any, earned on this fund shall be the property of the Unit owner. The monies deposited are in addition to any other closing costs listed in this Plan. This paragraph, however, shall not apply to the Sponsor. A person interested in purchasing the Unit in which he does not reside is advised to examine any lease for such Unit to

PDF page 83 · effective period must be checked in the document

(v) Purchaser will be required to deposit with the Board of Managers two (2) months’ estimated monthly common charges for his unit to be used as Working Capital. (vi) Purchaser shall be obligated to pay the following fees to the law firm of sponsor’s attorney: (i) $2,000.00 for services rendered in connection with the preparation of documents; (ii) $350.00 if the closing is held at any location other than sponsor’s attorney’s office by the request of Purchaser, Purchaser’s counsel or Purchaser’s lender; (iii) $200.00 if e -forms for New York City Real Property Transfer Tax are prepared by Sponsor’s attorney on the purchaser’s behalf; and (iv) $100.00 for each time the closing is rescheduled through no fault of Sponsor or Sponsor’s attorney (for the costs to fix a new Closing Date and time, to coordinate the attendance of all persons, to re-date the closing documents and to recalculate the closing apportionments). (vii) At closing, each purchaser shall pay to the Spo

PDF page 101 · effective period must be checked in the document

98 The Condominium Board has the power to accumulate reserve funds for capital replacements or other purposes in accordance with the Declarati on and By-Laws, as set forth in Documents 6 and 7 in Part II of the Offering Plan. Compliance with Rent Laws The Condominium Board shall operate the Property at the same level of services as those supplied on the date of recording the Declaration in accordance with the Rent Law except for those services that, under the Declaration or the By-Laws, are the obligation of Sponsor to provide to its Units. The Condominium Board shall not impose any charge or fee against the tenants and occupants of the Unsold Units owned by Sponsor or its designee for using the Common Elements or on account of any services provide to such tenants and occupants unless permitted by the rent laws. Such permitted charge or fee may be increased by the Condominium Board, but only to t he extent allowed by the Rent Laws. Except for those services and obliga

PDF page 103 · effective period must be checked in the document

e right to mortgage the Unsold Units without any restriction or limitation Capital Reserves The Condominium Board has the power to accumulate reserve funds for capital replacements or other purposes to meet the needs of the Condominium in accordance with the Declaration and By-Laws, as set forth in Documents 6 and 7 in Part II of the Offering Plan. There are no restrictions on these powers.

PDF page 122 · effective period must be checked in the document

119 BB. RESERVE FUND Within thirty (30) days after the first closing, Sponsor shall establish and transfer to the condominium board of managers, a reserve fund to be used exclusively for making capital repairs, replacements and improvements necessary for the health and safety of the residents of the building. Such reserve fund shall be exclusive of any other funds required to be reserved under the plan or applicable law or regulation of the state attorney general. Such reserve fund also shall be exclusive of any working capital fund and shall not be subject to reduction for closing apportionments. Current New York City law , N.Y. ADC. LAW § 26 -703 (the “Reserve Fund Law”) requires the reserve fund to be either: 1. three percent (3%) of the total offering price for the units; or 2. a. three per cent of the actual sales price of all condominium units sold by the Sponsor at the time the plan is declared effective, provided, however, that if such amount is less tha

PDF page 123 · effective period must be checked in the document

,000.00 Windows: $50,000.00 Total: $175,000.00 Whether or not Sponsor does undertake said improvements and claim the credit against the Reserve Fund initial contribution , will be disclosed in a subsequent amendment to the Offering Plan. In Sponsor’s opinion, the amount allocated to the reserve fund is sufficient for major capital improvements and replacements which are reasonably foreseeable within five (5) from the date of this offering. The boiler and burner each have an expected remaining useful life of at least five (5) years. In the event that the reserve fund is inadequate to finance needed capital expenditures, such as renewal or replacement of building components or systems or to remedy major condition, then the Condominium Board may make be required to make a special assessment in accordance with the By Laws or raise common charges. There are no warranties for capital replacements, both for materials and labor. NEITHER THE DEPARTMENT OF LAW

PDF page 124 · effective period must be checked in the document

121 CC. WORKING CAPITAL FUND At closing of title to each Unit, the Unit Owner for such Unit will contribute to the working capital fund of the Condominium an amount equal to two (2) months common charges (see section “Closing Costs and Adjustments”). The Sponsor will not be responsibl e for this contribution, however, on unsold units. This Working Capital Fund will be used to make repairs and improvements, and for other appropriate purposes as determined by the Board of Managers, particularly to meet emergencies not budgeted for in Sche dule A. While the Sponsor controls the Board of Managers (see section “Control by the Sponsor”), the Working Capital Fund may be used to reduce estimated Common Charges. The Working Capital Fund may be used to reduce any closing adjustments to the Sponsor. Otherwise, a ll closing adjustments to the Sponsor will be paid at closing or in equal monthly installments over the twelve (12) month period following closing. All adjustments r

PDF page 172 · effective period must be checked in the document

(v) Purchaser will be required to deposit with the Board of Managers two (2) months’ estimated monthly common charges for his unit to be used as working capital. (vi) Purchaser shall be obligated to pay the following fees to Sponsor’s attorney: (i) $2,000.00 for services rendered in connection with the preparation of documents, (ii) $ 350.00 if the closing is held at any location other than Sponsor’s attorney’s office, (iii) $200.00 if e-forms for New York City Real Property Transfer Tax are prepared by Sponsor’s attorney ; and (iv) $100.00 for each time the closing is rescheduled, for the costs to fix a new Closing Date and time, to coordinate the attendance of all persons, to re -date the closing documents and to recalculate the closing apportionments. (vii) At closing, each purchaser shall pay to the Sponsor the sum of $ 2,500.00 to defray the Sponsor’s costs of creating the condominium, e.g., architectural costs, filing fees, legal fees and other costs incurred

PDF page 182 · effective period must be checked in the document

the Closing for such Unit a sum not less than an amount equal to the greater of two (2) months Common Charges or two (2) month’s rent to be used as working capital to furnish services required under the non -purchasing tenant’s lease, the applicable New York City Rent Laws and any other applicable laws and regulations. Upon notice by the managing agent that the said deposit has been diminished, such fund shall be replenished by the Unit Owners within thirty (30) days of such notice. The failure of the Unit Owner to replenish this fund within said thirty (30) day period shall result in the Board of Managers having a lien against the Unit. Interest, if any, earned on this fund shall be the property of the Unit owner. The monies deposited are in addition to any other closing costs listed in this Plan. This paragraph, however, shall not apply to the Sponsor. [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

PDF page 248 · effective period must be checked in the document

and any alteration, addition, or improvement to, the Common Elements; (ii) the establishment and/or maintenance of a general operating reserve or a reserve fund for working capital, for replacements with respect to the Common Elements, or to make up any deficit in the Common Charges for any prior year(s); (iii) the purchase, lease, or sublease by the Condominium Board or its designee, corporate or otherwise, on behalf of all Unit Owners, of any Unit whose owner has elected to sell, lease, transfer, or convey the same or that is to be sold at a foreclosure or other sale; and (iv) generally, the conduct of the affairs of the Condominium. 8. “Common Interest” shall mean the undivided percentage interest of each Unit in the Common

PDF page 286 · effective period must be checked in the document

(E) Assessments other than and in addition to Common Charges, including without limitation, Storage Space License Fees as describe d below, the working capital contribution required of all purchasers (other than the sponsor) purchasing a unit occupied by a non-purchasing tenant as described in Section 14.7 below, and any other assessments imposed upon Unit Owners for any reason, shall be levied against and paid by Unit Owners in the same manner as provided in these By-laws for Common Charges. Failure to pay any such Storage Space License Fees, working capital contributions, or any other assessments shall be treated in the same manner a s failure to pay Common Charges. Section 6.2. Payment of Common Charges. (A) All Unit Owners shall be obligated to pay Common Charges and Special Assessments assessed by the Condominium Board pursuant to the terms of Section 6.1 hereof at such time or times (but not less than annually) as the Condominium Board shall determine. Unle

PDF page 301 · effective period must be checked in the document

aging agent is to be employed) at the closing an amount not less than the greater of two months’ common charges or two months’ rent, to be used as working capital to furnish services required under the non -purchasing tenant’s lease and the laws and regulations such as the New York City Rent Stabilization Law and Code, New York City and State Rent Control Law, the Emergency Tenant Protection Act, the Multiple Dwelling Law, and the Multiple Residence Law, that will apply to the tenancy of the dwelling unit; and (iii) upon notice by the managing agent (or the board of managers of the condominium) that the deposit referenced above has been diminished, the fund shall be replenished by the unit owner within a specified period of time. Interest, if any, earned on the fund shall be the property of the unit owner. The failure of the unit owner to replenish the fund in a timely fashion shall result in the board of managers, on behalf of the unit owners, having a lien against the

PDF page 341 · effective period must be checked in the document

New York City Administrative Code § 26-703 Establishment of Reserve Fund a. Within thirty days after the closing of a conversion pursuant to an offering plan the offeror shall establish and transfer to the cooperative corporation or condominium board of managers, a reserve fund to be used exclusively for making capital repairs, replacements and improvements necessary for the health and safety of the residents of such buildings. Such reserve fund shall be exclusive of any other fun ds required to be reserved under the plan or applicable law or regulation of the state attorney general, except a fund for capital repairs, replacements and improvements substantially similar in purpose to and in an amount not less than the reserve fund mandated by this section. Such reserve fund also shall be exclusive of any working capital fund and shall not be subject to reduction for closing apportionments. b. Such fund shall be established in an amount equal to either (i) thre

PDF page 15 · effective period must be checked in the document

r expense accounts of the Condominium. If the funds in such accounts are insufficient to effectuate such purchase, the Condominium Board may levy a special assessment against each Unit Owner (other than the Offeree Unit Owner) in accordance with the terms of paragraph (C) of Section 6.1 of the By Laws or the Condominium Board may, in its discretion, finance the acquisition of such Unit, provided, however, that no such financing may be secured by an encumbrance on or a hypothecation of any portion of the Condominium other than the Unit to be purchased together with its Appurtenant Interests. In addition, if the Outside Offeror was to assume or to take title to the Unit subject to the Offeree Unit Owner’s existing mortgage or mortgages pursuant to the Purchase Agreement, the Condominium Board may purchase the Unit and assume or take title thereto subject to such mortgage or mortgages, as the case may be. At the closing of title, the Offeree Unit O wner shall convey the Unit, t

PDF page 85 · effective period must be checked in the document

ncial limitation for failure to perform any obligation imposed by applicable statute or regulation. 6. Sponsor agrees to pay all common charges, special assessments and real estate taxes with respect to unsold units. Sponsor represents that it has the financial resources other than income from projected sales (i.e.: from other holding s) to meet its obligations with respect to unsold units. No bond or other security has been furnished to secure sponsor's obligations. 7. Sponsor will cause the board of managers to maintain the property in substantially the same condition and manner as on t he date of presentation until the sponsor no longer controls the board of managers. 8. If the Purchaser is or becomes the tenant or the occupant of the Unit before the closing of title thereto and, before such closing, the Unit is damaged by casualty or otherwise, such Purchaser shall assume the risk of loss es not covered by insurance . Except as set forth in the preceding sentence

PDF page 88 · effective period must be checked in the document

THER FUNDS DELIVERED TO THE SPONSOR BY THE PURCHASER WITH REGARD TO THE UNIT. General Except for Sponsor’s obligations to pay Common Charges, special assessments and real estate taxes and to perform other duties as a Unit Owner with respect to any Unsold Units (for so long as Sponsor owns same), the foregoing sets forth the entire extent of the obligations of Sponsor under this Plan and none other shall be implied, except that nothing contained herein shall be deemed to limit the rights of purchasers relative to their Units under their respective Purchase Agreements. Sponsor makes no warranties other than as set forth in this section. The obligations of Sponsor under this section shall survive the delivery of the deeds to the respective Units. Sponsor shall not be liable for, or obligated to defend, any suits or claims with respect to any Unit arising out of any occurrence taking place on or after the date of the closing of title to such Unit or the leasing thereof to

PDF page 94 · effective period must be checked in the document

sary to discharge the same; (v) to determine the amount and establish the means and methods of payment of, and to collect, the Common Charges and Special Assessments from the Unit Owners; (vi) to borrow money on behalf of the Condominium when required in connection with the operation, maintenance, repair, restoration, improvement, alteration and replacement of the Common Elements, provided, however, that: (a) with respect to the borrowing of any sum in excess of $5 00,000.00 in any one fiscal year (regardless of the balance of any loans outstanding from previous fiscal years) in addition to the affirmative consent of a majority of the members of the C ondominium Board, the affirmative consent of a majority of all Unit Owners shall be required; (b) no lien to secure repayment of any sum borrowed may be created on any Unit or its Appurtenant Interests without the consent of the owner of such Unit; and (c) the documentation executed in connection with any such borrowing

PDF page 103 · effective period must be checked in the document

ge, pledge or hypothecate his or her Unit unless and until he or she shall have paid in full to the Condominium Board all unpaid Common Charges and special assessments theretofore assessed against such Unit and shall have satisfied all unpaid liens, except the liens of Permitted Mortgages levied against such Unit; (b) no Unit Owner shall execute any mortgage or other document m ortgaging, pledging or hypothecating title to his or her Unit without including therein its Appurtenant Interests, it being the intention to prevent any severance of such combined ownership. Any mortgage or other instrument purporting to affect one or more of such interests without including all such interests shall be deemed and taken to include the interest or interests so omitted, even though the latter shall not be expressly mentioned or described therein so that at all times, all of the Units interests in the Condominium shall remain and shall not be severed; (c) any mortgage covering a U

PDF page 123 · effective period must be checked in the document

as renewal or replacement of building components or systems or to remedy major condition, then the Condominium Board may make be required to make a special assessment in accordance with the By Laws or raise common charges. There are no warranties for capital replacements, both for materials and labor. NEITHER THE DEPARTMENT OF LAW , NOR A NY OTHER GOVERNMENTAL AGENCY, HA S PASSED UPON THE ADEQUACY OF THE WORKING CAPITAL OR RESERVE FUNDS. NO REPRESENTATION IS MADE THA T SUCH FUNDS, EITHER AS PRESENTLY CONSTITUTED OR AS THEY MAY BE INC REASED BY SUBSEQUENT AMENDMENTS, ARE ADEQUATE OR SUFFICIENT TO PAY FOR NEEDED CAPITAL EXPENDITURES, EITHER AS MAY BE DISCLO SED IN THE “ DESCRIPTION OF PROPERTY AND BUILDING COND ITION”, OR AS MAY BE SUBSEQUENTLY DISCOVERED. A copy of the full text of the Reserve Fund Law can be found in Part II of the Plan.

PDF page 185 · effective period must be checked in the document

idewalks and streets and the lien of any unpaid vault tax (which is to be paid by the Condominium Board); 12. The lien of any Common Ch arges and Special Assessments, real estate taxes, water frontage and/or meter charges, sewer rents, vault charges and assessments, provided that apportionment of such items is made as provided in the Section of the Plan entitled “Unit Closing Costs and Adjustments”; 13. Eases and service, maintenance, employment, concessionaire and license agreements, if any, of other Units or portions of the Common Elements. Service, labor, concessionaire and maintenance agreements contemplated under the Plan; 14. Any Interim Lease with the Purchaser for such Residential Unit and any other leases, tenancies and occupancies permitted by the Purchase Option Agreement for such Residential Unit; 15. Any lien, notice of pendency or other encumbrance either (i) for which the instrument required to remove said lien, notice of pendency or other encumbrance

PDF page 251 · effective period must be checked in the document

DEC 19 not in conflict with the terms of the Condominium Act, the Declaration, or the By-Laws. 33. “Special Assessments” shall mean the charges allocated and assessed by the Condominium Board to the Unit Owners, pro -rata in accordance with their respective Common Interests (except as otherwise provided in the Declaration or in the By -Laws), in accordance with paragraph (C) of Section 6.1 of the By-Laws. 34. “Sponsor” As used in New York State regulations pertaining to newly constructed and vacant condominium, the word “sponsor” means “any person, partnership, joint venture, corporation, company, trust, association or other entity or agent thereof who makes or takes part in a public offering or sale in or from the State of New York of participation interests or investments in real estate including condominium interests in realty.” 35. “Sponsor’s Initial Control ”. The Sponsor will control the board of managers whenever the unsold units constitute less than fifty per

PDF page 260 · effective period must be checked in the document

BL 3 (v) To determine the amount and establish the means and methods of payment of, and to collect, the Common Charges and Special Assessments from the Unit Owners; (vi) to borrow money on behalf of the Condominium when required in connection with the operation, maintenance, repair, restoration, improvement, alteration and replacement of the Common Elements, provided, however, that: (a) the affirmative consent of all of the members of the Condominium Board shall be required for the borrowing of any sum in excess of $25,000.00 in any one fiscal year (regardless of the balance of any loans outstanding from previous fiscal years); (b) the affirmative consent of all of all Unit Owners shall be required for the borrowing of any sum in excess of $500,000.00 in any one fiscal year (regardless of the balance of any loans outstanding from previous fiscal years); (c) no lien to secure repayment of any sum borrowed may be created on any Unit or its Appurtenant Interests without t

PDF page 265 · effective period must be checked in the document

shall and must obtain Sponsor’s prior written Discretionary Approval or Consent to do any of the following: (a) To raise Common Charges or levy a special Assessment for any of the following purposes: (i) To make an Alteration to the Common Elements or the A ssociation’s Properties (the latter includes any Unit owner, leased licensed or otherwise held or operated by the condominium Board, or its nominee or designee); (ii) to create a fund for reserves for non -capital Repairs, Alterations, unanticipated expenses and/or contingencies (i.e., a Reserve for Contingencies), which in the aggregate exceed five percent (5%) of the projected annual General Common Expenses or five percent (5%) of the projected annual Residential Common Expenses (as applicable) for any Bu dget Year of the Condominium Operation or increase, decrease, or eliminate the minimum ten percent (10%) Reserve for Capital Replacement to be included in each Budget in accordance with the Declaration. (iii)

PDF page 266 · effective period must be checked in the document

neral Common Expenses (as applicable), will not increase the Residential Common Charges or General Common Charges (as applicable), inclusive of any Special Assessments of the Condominium Board, for the Budget year of the Condominium at issue, by more than 5% above the residential Common Charges or General common Charges (as applicable) for the immediately preceding Budget Year of the condominium. In addition, Sponsor may not exercise veto control over expenses included in the first Year ’s Budget or over expenses required: (a) to comply with applicable Laws; (b) to remedy a governmental notice or violation or (c) to remedy a work o rder of an insurer of the Building, (d) or any matter concerning the health and safety of the occupants of the building. Veto Control of Sponsor and Unsold Unit Owners: Sponsor ’s veto control, as set forth herein, may be exercised during only the Sponsor Veto Control Period and solely by Sponsor while Sponsor owns any Unsold Unit. If Sponsor no

PDF page 279 · effective period must be checked in the document

ments. If the Trust Funds shall be less than sufficient to discharge the cost and expense of performing the Work, the Condominium Board shall levy a Special Assessment against all Unit Owners for the amount of such deficiency in proportion to their respective Common Interests, and all proceeds of such Special Assessment shall become part of the Trust Funds. Howev er, if the insurance proceeds are not sufficient to discharge the cost and expense of performing any work attributable to any part of the building which is not a “Common Element”, such cost and expense must be paid by the owner or owners of the Units or Li mited Common Element which were damaged and no special assessment may be levied against the Unit Owners. If, conversely, the Trust Funds shall prove to be more than sufficient to discharge the cost and expense of performing the Work, such excess shall be paid to the Unit Owner of the damaged unit, except that no payment shall be made to a Unit Owner until there has

PDF page 285 · effective period must be checked in the document

ss Common Charges, the Condominium Board shall have the right, subject, in all respects, to the strictures contained in Section 2.5 hereof, to levy Special Assessments to meet the Common Expenses. All Special Assessments shall be levied against all Unit Owners in proportion to their respective Common Interests and may be payable either in one lump sum or in installments, as the Condominium Board shall determine, provided, however that the Condominium Board shall give each Unit Owner not less than fifteen (15) days’ notice prior to the date upon which such Special Assessment, or the first installment thereof, shall be due and payable, which notice shall set forth, in reasonable detail, the nature and purpose thereof. The Condominium Board shall have all rights and remedies for the collection of Special Assessments as are provided herein for the collection of Common Charges (including, without limitation, the provisions of Section 6.4 hereof). (D) The excess of all rents, p

PDF page 286 · effective period must be checked in the document

r a s failure to pay Common Charges. Section 6.2. Payment of Common Charges. (A) All Unit Owners shall be obligated to pay Common Charges and Special Assessments assessed by the Condominium Board pursuant to the terms of Section 6.1 hereof at such time or times (but not less than annually) as the Condominium Board shall determine. Unless otherwise determined by the Condominium Board, Common Charges shall be payable in installments on the first day of every month in advance. To the extent permitted by Law, th e Condominium Board shall have a lien on each Unit, on behalf of all Unit Owners, for unpaid Common Charges and Special Assessments assessed against such Unit. Such lien, however, shall be subordinate, to the extent required by Law, to any liens for real estate taxes assessed against such Unit. (B) No Unit Owner shall be liable for the payment of any part of the Common Charges and any Special Assessments assessed against his or her Unit subsequent to a sale, tran

PDF page 287 · effective period must be checked in the document

uch Unit is free and clear of all liens and encumbrances other than a Permitted First Mortgage and the statutory lien for unpaid Common Charges and Special Assessments; and (iii) no violation of any provision of the Condominium Documents then exists with respect to such Unit. (D) No Unit Owner shall be exempted from liability for the payment of Common Charges or Special Assessments by waiving th e use or enjoyment of any or all of the Common Elements or by abandoning his or her Unit (except with respect to a conveyance of the same to the Condominium Board, without compensation, pursuant to the terms of paragraph (C) hereof. Except as expressly provided to the contrary in paragraph (E) of Section 5.5 hereof, no Unit Owner shall be entitled to a diminution or abatement in the Common Charges or Special Assessments payable thereby for any inconvenience or discomfort arising from: (i) the failure or int erruption of any utility or other services; (ii) the making of repairs or i

PDF page 290 · effective period must be checked in the document

all be permitted to convey or lease his or her Unit unless he or she shall have paid in full to the Condominium Board all unpaid Common Charges and Special Assessments theretofore assessed agains t such Unit and shall have satisfied all unpaid liens, other than that of Permitted Mortg ages, levied against such Unit. Section 7.4. Power of Attorney. At the time of acquiring title to a Unit and as a condition thereof, the new Unit Owner shall duly execute, acknowledge and deliver to the representative of his or her title insurance company (or, if no such representative is present, to the Condominium Board) for recording in the Register ’s Office, the Unit Owner ’s Power of Attorney required in Article 14 of the Declaration, in the form set forth as Exhibit E to the Declaration. Section 7.5. Transfers by Sale, Gifts and Devises, Etc. Any Unit Owner shall be free to sell, convey, gift or transfer his or her Unit, together with its Appurtenant Interests, or to devise the sam

PDF page 295 · effective period must be checked in the document

e, pledge, or hypothecate his or her Unit unless and until he or she shall have paid in full to the Condominium Board all unpaid Common Charges and special assessments theretofore assessed against such Unit and shall have satisfied all unpaid liens, except the liens of Permitted Mortgages levied against such Unit. (B) No Unit Owner shall execute any mortgage or other document mortgaging, pledging, or hypothecating title to his or her Unit without including therein its Appurtenant Interests, it being the intention to prevent any severance of such combined ownership. Any mortgage or other instrument purporting to affect one or more of such interests without including all such interests shall be deemed and taken to include the interest or interests so omitted, even though the latter shall not be expressly mentioned or described therein. (C) Any mortgage covering a Unit shall be substantially in the form of the New York statutory form of mortgage, except for such changes or

PDF page 296 · effective period must be checked in the document

o a mortgagee defaults in performing any act or making any payment which is that party ’s responsibility hereunder, including common charges and or special assessments, for a period of sixty (60) days after the obligation to pay, and said default is not cured within fifteen (15) days of written notice of said default. (3) If any insurance policies insuring the Building and all service machinery contained therein covering the interest of the Condominium, the Condominium Board, all of the Unit Owners and all Permitted Mortgagees, as their interests may ap pear may not be either cancelled, or be allowed to lapse, or substantially modified except upon at least ten (10) days’ prior written notice

PDF page 286 · effective period must be checked in the document

(E) Assessments other than and in addition to Common Charges, including without limitation, Storage Space License Fees as describe d below, the working capital contribution required of all purchasers (other than the sponsor) purchasing a unit occupied by a non-purchasing tenant as described in Section 14.7 below, and any other assessments imposed upon Unit Owners for any reason, shall be levied against and paid by Unit Owners in the same manner as provided in these By-laws for Common Charges. Failure to pay any such Storage Space License Fees, working capital contributions, or any other assessments shall be treated in the same manner a s failure to pay Common Charges. Section 6.2. Payment of Common Charges. (A) All Unit Owners shall be obligated to pay Common Charges and Special Assessments assessed by the Condominium Board pursuant to the terms of Section 6.1 hereof at such time or times (but not less than annually) as the Condominium Board shall determine. Unle

PDF page 3 · effective period must be checked in the document

s Flagstar Bank, 102 Duffy Avenue, 3rd Floor, Hicksville, NY 11801. The remaining principal balance of the loan is approximately $1,205,000.00. The loan maturity date is July 1, 2025. The monthly payments of principal and interest and not including escrow for taxes, are approximately $6,661.85. f. In summary, the total monthly income from the unsold units is $17,013.47. The total monthly expenses (which includes common charges of $8,224.75, real estate taxes of $3,940.40and mortgage payments of $6,661.85) is approximately $18,827.00.

PDF page 2 · effective period must be checked in the document

urchaser. 3. Attached hereto as Exhibit I is the relevant sections of the Purchase Agreement revised as per paragraphs 1, b. and 2 above. 4. A Reserve Fund in the amount of $137,559.77 is being maintained at Flagstar Bank, 84 Broadway, Brooklyn, NY 11249, under the account name “The Presidio Condominium.” 5. Sponsors continue to own eleven (11) Unsold Units. Attached hereto as Exhibit I I is a list of Unsold Units retained by Sponsor, their percent common interests, monthly real estate taxes and common charges.

PDF page 4 · effective period must be checked in the document

is amendment, on all financial obligations relating to the condominium, including, but not limited to, payment of common charges, taxes, reserve or working capital fund payments, asses sments, and payments for repairs or improvements promised in the Offering Plan, to the extent that any such obligations currently exist. i. The Sponsor s do not own more than 10% of the shares or units in any other cooperatives, condominiums or homeowners’ associations. Attached hereto as Exhibit V is a list of all public offerings in which Jonathan Weinberger and Steven Neuman, Principals of Sponsor, are also the principals of the sponsor and the sponsor still owns more than 10% of the units (offering plans for these buildings are on file with the Department of Law and are available for public inspection or will be upon acceptance for filing). j. The sponsors and all principals of the sponsors for the offerings in listed in Exhibit V, are current, and have been for the twelve (12) mon

PDF page 7 · effective period must be checked in the document

(vii) Purchaser will be required to deposit with the Board of Managers two (2) months’ estimated monthly common charges for his unit to be used as working capital. (viii) Purchaser shall be obligated to pay the following fees to Sponsor’s attorney: (i) $2,000.00

PDF page 11 · effective period must be checked in the document

Insurance (8): 25,000.00$ Audit Fees (9): 5,000.00$ Legal Fees (9): 1,500.00$ Contingency (10): 5,000.00$ Reserve Fund (11): 16,700.00$ Total Expenses: 167,000.00$ For Year: July 1, 2024 - June 30, 2025 As per the 6th Amendment to the Plan SCHEDULE B Budget of Condominium Operation The Presidio Condominium 17 East 17th Street, Brooklyn, NY 11226