Reserves & financial health · 8 source passages
PDF page 40 · financial statements as of 2024-12-31
l
statements, and accordingly, we do not express an opinion or provide any assurance on that information.
Management has not promulgated a study on future major repairs and replacements that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing information, although not a part of the basic financial statements, is required by the
Financial Accounting Standards Board, who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the
basic financial statements is not affected by the missing information.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with GAAP, and for the design, implementation, and maintenance of internal control releva
PDF page 48 · financial statements as of 2024-12-31
2023
Note 2 -Significant Accounting Policies - (Cont'd)
(H) Statements of Cash Flows -(Cont'd)
2024 2023
Cash and cash equivalents $174,430 $238,090
Reserve fund - cash 29 27,508
Total cash and cash equivalents and
restricted cash $174,459 $265,598
(I) Employee Pension Plan
As part of a collective bargaining agreement, the Corporation contributes to the
Building Service 32BJ Pension Fund, Federal ID #13-1879376, a union
sponsored multiemployer defined benefit pension plan (the “Plan”). The risks of
participating in multiemployer pension plans are different from single-employer
plans. Assets contributed to a multiemployer plan by one employer may be used
to provide benefits to employees of other participating employers. The
Corporation does not administer the Plan and contributions are determined in
accordance with the labor contract. Contributions were approximately $14,000
and $9,000 for the years ended December 31, 2024 and 2023, respectively, and
re
PDF page 49 · financial statements as of 2024-12-31
811 Cortelyou Road Owners Corp.
(A Cooperative Housing Association)
Notes to Financial Statements
December 31, 2024 and 2023
Note 4 - Reserve Fund - (Cont’d)
specific identification method. Changes in unrealized gains and losses are
recognized as such in the accompanying statements of revenue and expenses.
As of December 31, 2024, marketable securities consist of bond mutual funds
with a cost of $245,700 and market value of $222,858.
Under GAAP, fair value is measured utilizing one of the three input levels noted
below:
Level 1 - Unadjusted quoted prices in active markets for identical assets or
liabilities.
Level 2 - Quoted prices in active markets for similar assets or liabilities, quoted
prices in inactive markets for identical assets or liabilities, or other significant
observable inputs.
Level 3 - Unobservable inputs, which reflect management assumptions, based
on the best information available.
As of December 31, 2024, the investments were categorized in Level 1.
Note 5
PDF page 50 · financial statements as of 2024-12-31
Special Assessments
The Corporation imposed abatement assessments of approximately $86,000 and
$67,000 in 2024 and 2023, respectively, to supplement working capital. The
assessments are approximately offset by credits due to tenant shareholders for
the NYC real estate tax abatements.
In February 2023, the Corporation commenced an ongoing special assessment
of approximately $0.09 per share per month to fund building operations. T he
total assessment charged in 2024 and 2023 was $44,459 and $44,918,
respectively.
Note 8 -Related Party Transactions
As of December 31, 2024 and 2023 the Sponsor, Equity LLC, owned
approximately 15% and 16% of the corporate stock, respectively. Maintenance
charges and assessments charged to these units totaled approximately $184,000
and $188,000 in the years ended December 31, 2024 and 2023, respectively.
Note 9 - Real Estate Taxes
The Corporation benefits from real estate tax solar abatements in the amount of
$9,655 per year which is expected to e
PDF page 51 · financial statements as of 2024-12-31
and New York City impose taxes based on the greater of the
fixed minimum tax, the net capital value, or the income tax of the Corporation.
Note 11 - Future Major Repairs and Replacements
The Corporation's governing documents do not require the accumulation of funds
to finance estimated future repairs and replacements. The Corporation has not
recently promulgated a study to determine the remaining useful lives of the
components of the building and current estimates of costs of major repairs and
replacements that may be required.
When the funds for these projects are required, the Corporation has the right to
borrow, including using lines of credit, utilize existing reserves, increase
maintenance charges, levy a special assessment, or delay repairs and
replacements until funds are available.
Note 12 -Subsequent Events
In January 2025, the Corporation paid the third quarter period New York City real
estate taxes of approximately $59,000 for the fiscal year ending June 30, 2025.
PDF page 12 · effective period must be checked in the document
findings, and certain internal control related matters
that we identified during the audit.
Omission of Required Supplementary Information about Future Major Repairs and Replacements
As discussed in Note 10, 811 Cortelyou Road Owners’ Corp. (A Cooperative Housing Corp.) has
omitted the supplementary information on future major repairs and replacements that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing information, although not a part of the basic financial statements, is required by the
Financial Accounting Standards Board, which considers it to be an essential part of financial reporting and
for placing the basic financial statements in an appropriate operational, economic, or historical context. Our
opinion on the basic financial statements is not affected by this missing information.
Lake Success, New York
July 31, 2023
PDF page 21 · effective period must be checked in the document
sfers by shareholders of
2%. For the years ended December 31, 2022, and 2021 flip tax collected was $127,680 and
$11,220, respectively.
NOTE 10 FUTURE MAJOR REPAIRS AND REPLACEMENTS
The Corporation’s governing documents do not require the accumulation of funds to finance
estimated future major repairs and replacements. The Company has not conducted a study to
determine the remaining useful lives of the components of common property and estimates of
the costs of major repairs and replacements that may be required in the future, nor has the
Board of Directors developed a plan to fund those needs. When funds are required for major
repairs and replacements, the Company plans to borrow, increase maintenance assessments,
or delay repairs and replacements until funds are available. The effect on future assessments
has not been determined.
NOTE 11 MULTI-EMPLOYER PLAN
Substantially all of the Corporation's employees are subject to a collective bargaining
agreement with Bui
PDF page 42 · effective period must be checked in the document
7,025
Total Fixed Assets 6,999,436 6,960,018
Less: Accumulated depreciation (4,135,823) (3,974,473)
Net Fixed Assets 2,863,613 2,985,545
Other Assets
Reserve fund - cash 29 27,508
Reserve fund - marketable securities 222,858 422,416
Total Other Assets 222,887 449,924
Total Assets $3,371,919 $3,736,430
811 Cortelyou Road Owners' Corp.
(A Cooperative Housing Corporation)
Balance Sheets
December 31,
ASSETS
See Notes to Financial Statements
Page 4 of 16
Assessments & charge increases · 6 source passages
PDF page 50 · financial statements as of 2024-12-31
er annum. The line of
credit matures on November 1, 2028. As of December 31, 2024, there was no
outstanding balance on this line of credit.
Note 7 -Special Assessments
The Corporation imposed abatement assessments of approximately $86,000 and
$67,000 in 2024 and 2023, respectively, to supplement working capital. The
assessments are approximately offset by credits due to tenant shareholders for
the NYC real estate tax abatements.
In February 2023, the Corporation commenced an ongoing special assessment
of approximately $0.09 per share per month to fund building operations. T he
total assessment charged in 2024 and 2023 was $44,459 and $44,918,
respectively.
Note 8 -Related Party Transactions
As of December 31, 2024 and 2023 the Sponsor, Equity LLC, owned
approximately 15% and 16% of the corporate stock, respectively. Maintenance
charges and assessments charged to these units totaled approximately $184,000
and $188,000 in the years ended December 31, 2024 and 2023, respective
PDF page 51 · financial statements as of 2024-12-31
required, the Corporation has the right to
borrow, including using lines of credit, utilize existing reserves, increase
maintenance charges, levy a special assessment, or delay repairs and
replacements until funds are available.
Note 12 -Subsequent Events
In January 2025, the Corporation paid the third quarter period New York City real
estate taxes of approximately $59,000 for the fiscal year ending June 30, 2025.
Effective January 2025, the Corporation increased maintenance charges by
4.5%.
In January 2025, the Corporation began a $140,000 12-month assessment.
Page 13 of 16
PDF page 6 · effective period must be checked in the document
APPROVED
Operating Revenue
Maintenance 1,208,121$ 4.5% Maintenance Increase
Operating Assessment/Abatement 90,955
Storage Fees 34,320
Laundry 10,800
Sublet Income 2,089
Transfer Fees 15,000
Special Assessment 121,864
Other Income 28,880
Total Income 1,512,030$
Operating Expenses
Labor & Related 247,512$
Electric & Gas Heat 82,657
Repairs & Maintenance 96,554
Administrative 17,740
Insurance 212,993
Management 41,694
Professional 28,500
Real Estate Taxes 350,390
Water & Sewer 49,200
Mortgage 366,369
Corporate Taxes 3,450
Reserve Contribution 14,971
Total Expenses 1,512,030$
Operating Surplus < Defic
PDF page 14 · effective period must be checked in the document
2022 2021
Revenue
Maintenance Income $ 912,679 $ 985,911
Special Assessment Abatement 75,059 51,580
Capital Assessment 38,568 0
Storage Fees 33,658 24,193
Flip Taxes 127,680 11,220
Dividend and Interest Income 14,206 11,703
Reimbursed Repairs 10,226 1,583
Sublet Income 4,367 1,844
(Loss) Gains on sales of securities (1,785) 4,467
Miscellaneous Income 24,186 2,725
Total Revenue 1,238,844 1,095,226
Expenses
Real Estate Taxes 284,532 261,755
Payroll and Payroll Expenses 167,063 177,216
Mortgage Interest 289,474 292,768
Noncash Interest 21,542 21,542
Insurance 242,035 300,276
Repairs and Maintenance 125,282 87,852
Gas and Electric 63,433 80,913
Water and Sewer 28,406 32,123
Management Fees 36,458 32,492
Professional Fees 40,091 31,00
PDF page 44 · effective period must be checked in the document
Revenue 2024 2023
Maintenance charges $1,106,297 $1,055,282
Special assessment 44,459 44,918
Abatement assessments 85,822 66,583
Transfer fees 10,500 83,380
Other income 89,127 121,266
Total Revenue 1,336,205 1,371,429
Expenses
Real estate taxes 306,570 286,931
Payroll and related 240,817 215,212
Mortgage interest 282,299 285,544
Repairs, supplies and maintenance 110,754 108,351
Insurance 258,996 185,255
Energy 69,680 67,320
Water and sewer 58,601 33,403
Professional fees 32,131 25,106
Management fees 39,301 38,156
Office and administrative 17,919 19,954
Corporation taxes 3,450 1,160
Total Expenses 1,420,518 1,266,392
Excess (Deficiency) of Revenue over Expenses before
Other Items (84,313) 105,037
Other Items
Loss on insurance claims (24,984) (11,818)
Depreciation (161,350) (159,493)
Amortization (21,541) (21,541)
Realized loss on marketable securities (19,369) 0
Unrealized gain (loss) on marketable securities 1,319 (37,888)
Net Other Items (225,925) (230,740)
Deficiency of Revenue ov
PDF page 53 · effective period must be checked in the document
Revenue Actual Budget
Maintenance charges $1,106,297 $1,106,313
Special assessment 44,459 48,500
Abatement assessments 85,822 69,982
Transfer fees 10,500 80,000
Other income 89,127 68,188
Total Revenue 1,336,205 1,372,983
Expenses
Real estate taxes 306,570 318,723
Payroll and related 240,817 233,553
Mortgage payments 366,070 366,369
Repairs, supplies and maintenance 110,754 75,037
Insurance 258,996 203,000
Energy 69,680 59,400
Water and sewer 58,601 38,600
Professional fees 32,131 25,700
Management fees 39,301 39,301
Office and administrative 17,919 12,200
Corporation taxes 3,450 1,100
Total Expenses 1,504,289 1,372,983
Deficiency of Revenue over Expenses from Operations ($168,084) $0
811 Cortelyou Road Owners Corp.
(A Cooperative Housing Corporation)
Supplemental Information on Operating Budget
For the Year Ended December 31, 2024
Mortgage principal payments of $83,771 are included above as if it was an expense
of the Corporation.
See Independent Auditor's Report
Page 15 of 16
Resale fees & restrictions · 6 source passages
PDF page 6 · effective period must be checked in the document
batement 90,955
Storage Fees 34,320
Laundry 10,800
Sublet Income 2,089
Transfer Fees 15,000
Special Assessment 121,864
Other Income 28,880
Total Income 1,512,030$
Operating Expenses
Labor & Related 247,512$
Electric & Gas Heat 82,657
Repairs & Maintenance 96,554
Administrative 17,740
Insurance 212,993
Management 41,694
Professional 28,500
Real Estate Taxes 350,390
Water & Sewer 49,200
Mortgage 366,369
Corporate Taxes 3,450
Reserve Contribution 14,971
Total Expenses 1,512,030$
Operating Surplus < Deficit> (0)$
Maintenance Increase Required to Cover Operating Deficit 0.0000%
Cash & C
PDF page 14 · effective period must be checked in the document
912,679 $ 985,911
Special Assessment Abatement 75,059 51,580
Capital Assessment 38,568 0
Storage Fees 33,658 24,193
Flip Taxes 127,680 11,220
Dividend and Interest Income 14,206 11,703
Reimbursed Repairs 10,226 1,583
Sublet Income 4,367 1,844
(Loss) Gains on sales of securities (1,785) 4,467
Miscellaneous Income 24,186 2,725
Total Revenue 1,238,844 1,095,226
Expenses
Real Estate Taxes 284,532 261,755
Payroll and Payroll Expenses 167,063 177,216
Mortgage Interest 289,474 292,768
Noncash Interest 21,542 21,542
Insurance 242,035 300,276
Repairs and Maintenance 125,282 87,852
Gas and Electric 63,433 80,913
Water and Sewer 28,406 32,123
Management Fees 36,458 32,492
Professional Fees 40,091 31,007
Administrative 5,754 9,168
Telephone 4,077 4,287
Corporate Taxes 500
PDF page 21 · effective period must be checked in the document
811 CORTELYOU ROAD OWNERS’ CORP.
(A Cooperative Housing Corporation)
Notes to Financial Statements
December 31, 2022
NOTE 9 TRANSFER FEES
The corporation imposes a transfer fee or "flip tax" on apartment transfers by shareholders of
2%. For the years ended December 31, 2022, and 2021 flip tax collected was $127,680 and
$11,220, respectively.
NOTE 10 FUTURE MAJOR REPAIRS AND REPLACEMENTS
The Corporation’s governing documents do not require the accumulation of funds to finance
estimated future major repairs and replacements. The Company has not conducted a study to
determine the remaining useful lives of the components of common property and estimates of
the costs of major repairs and replacements that may be required in the future, nor has the
Board of Directors developed a plan to fund those needs. When funds are required for major
repairs and replacements, the Company plans to borrow, increase maintenance assessments,
or delay repairs and replacements
PDF page 44 · effective period must be checked in the document
Revenue 2024 2023
Maintenance charges $1,106,297 $1,055,282
Special assessment 44,459 44,918
Abatement assessments 85,822 66,583
Transfer fees 10,500 83,380
Other income 89,127 121,266
Total Revenue 1,336,205 1,371,429
Expenses
Real estate taxes 306,570 286,931
Payroll and related 240,817 215,212
Mortgage interest 282,299 285,544
Repairs, supplies and maintenance 110,754 108,351
Insurance 258,996 185,255
Energy 69,680 67,320
Water and sewer 58,601 33,403
Professional fees 32,131 25,106
Management fees 39,301 38,156
Office and administrative 17,919 19,954
Corporation taxes 3,450 1,160
Total Expenses 1,420,518 1,266,392
Excess (Deficiency) of Revenue over Expenses before
Other Items (84,313) 105,037
Other Items
Loss on insurance claims (24,984) (11,818)
Depreciation (161,350) (159,493)
Amortization (21,541) (21,541)
Realized loss on marketable securities (19,369) 0
Unrealized gain (loss) on marketable securities 1,319 (37,888)
Net Other Items (225,925) (230,740)
Deficiency of Revenue ov
PDF page 52 · effective period must be checked in the document
Other income 2024 2023
Laundry income $6,354 $6,272
Sublet fees 2,400 5,357
Move in/out fees 100 1,600
Storage fees 34,625 29,170
Miscellaneous income 14,929 19,061
Interest income 30,719 59,806
$89,127 $121,266
Payroll and related
Payroll $159,071 $142,249
Payroll taxes 12,453 11,222
Union benefits 63,170 56,751
Workers' compensation insurance 5,771 4,608
Payroll processing fees 352 382
$240,817 $215,212
Energy
Gas $33,428 $44,857
Electric 36,252 22,463
$69,680 $67,320
Repairs, supplies and maintenance
Plumbing $39,523 $15,670
Heating repairs 17,779 34,900
Supplies 15,160 20,011
Exterminator 7,991 3,851
Elevator 18,545 21,691
Miscellaneous 11,756 12,228
$110,754 $108,351
Professional fees
Accounting $14,615 $16,520
Legal fees 6,344 841
Real estate tax reduction fees 0 450
Engineering fees 3,100 1,134
Other professional fees 8,072 6,161
$32,131 $25,106
811 Cortelyou Road Owners Corp.
(A Cooperative Housing Corporation)
Supplemental Information
For the Years Ended December 31,
See Indep
PDF page 53 · effective period must be checked in the document
Revenue Actual Budget
Maintenance charges $1,106,297 $1,106,313
Special assessment 44,459 48,500
Abatement assessments 85,822 69,982
Transfer fees 10,500 80,000
Other income 89,127 68,188
Total Revenue 1,336,205 1,372,983
Expenses
Real estate taxes 306,570 318,723
Payroll and related 240,817 233,553
Mortgage payments 366,070 366,369
Repairs, supplies and maintenance 110,754 75,037
Insurance 258,996 203,000
Energy 69,680 59,400
Water and sewer 58,601 38,600
Professional fees 32,131 25,700
Management fees 39,301 39,301
Office and administrative 17,919 12,200
Corporation taxes 3,450 1,100
Total Expenses 1,504,289 1,372,983
Deficiency of Revenue over Expenses from Operations ($168,084) $0
811 Cortelyou Road Owners Corp.
(A Cooperative Housing Corporation)
Supplemental Information on Operating Budget
For the Year Ended December 31, 2024
Mortgage principal payments of $83,771 are included above as if it was an expense
of the Corporation.
See Independent Auditor's Report
Page 15 of 16