Reserves & financial health · 5 source passages
PDF page 13 · financial statements as of 2024-12-31
_________________
See accompanying notes to financial statements. 3
2024 2023
Cash
Operating - checking - $ 37,709$
Reserve fund - money market 21,269 74,105
21,269 111,814
Accounts receivable
Tenant-shareholders' maintenance and other charges 17,777 33,522
Prepaid expenses
Real estate taxes 22,379 21,117
Insurance 3,782 4,088
26,161 25,205
Real property
Land 805,730 805,730
Building 3,660,848 3,660,848
Building improvements and equipment 629,066 629,066
Accumulated depreciation (3,158,241) (3,055,655)
1,937,403 2,039,989
Other assets
Mortgage refinancing costs, net of accumulated amortization
of $18,248 (2024) and $14,037 (2023) 23,862 28,073
Total assets 2,026,472$ 2,238,603 $
Assets
PDF page 17 · financial statements as of 2024-12-31
Income and franchise taxes 321 379
27,946$ 28,004 $
Reconciliation of cash, restricted cash and reserve fund:
Operating (overdraft) (2,069) $ 37,709 $
Reserve fund 21,269 74,105
19,200$ 111,814 $
PDF page 20 · financial statements as of 2024-12-31
e following as of December 31, 2024 and 2023:
2024 2023
Operating
Bank checking account:
Capital One Bank (2,069) $ 37,709 $
Reserve fund
Capital One Bank, 21,269 60,288
yielding 3.14% at 12/31/2024, and
3.51% at 12/31/2023
Flagstar Bank - 13,817
yielding 0.01% at 12/31/2023
Total reserve fund 21,269 74,105
Total cash 19,200 $ 111,814 $
PDF page 21 · financial statements as of 2024-12-31
Income Tax Basis
December 31, 2024 and 2023
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11
Note 4 Reserve Fund
The following schedule summarizes the activity of the reserve fund for the years ended
December 31, 2024 and 2023:
2024 2023
Balance beginning of year 74,105 $ 65,776 $
Add: interest income 981 1,746
residential assessment - 50,000
Less: transfers to operating account (53,817) (43,417)
Balance end of year 21,269 $ 74,105 $
Note 5 Mortgage Payable
On September 2, 2020, the Corporation refinanced its mortgage for $850,000 with Flagstar Bank.
The terms of the mortgage are as follows:
Term: 10 years; monthly payments are being amortized over a 30-year
amortization schedule.
Due date: October 1, 2030
Interest rate: 3.25% fixed rate for the first five years of the Term and adjusted annually
PDF page 2 · effective period must be checked in the document
forth herein, Sponsor has no financial obligations to the
Cooperative which will become due within 12 months (other than maintenance) but including
reserve fund payments and payments for repair and improvement obligations.
D. The Unsold Shares have been pledged as collateral for a loan entered into by
Sponsor with New York Community Bank (the “Lender”) , 102 Duffy Avenue, 3rd Floor,
Hicksville, New York 11801 and in connection with the sale of each unsold apartment the Lender’s
lien against such unsold apartment will be released prior to closing of each apartment. The loan
is in the amount of $2,350,000.00, has a maturity date of October 1, 2030 with an interest rate of
Assessments & charge increases · 2 source passages
PDF page 19 · financial statements as of 2024-12-31
illed basis. The Corporation retains
excess operating funds, if any, at the end of the operating year, for use in subsequent operating
periods.
Special Assessments
Special assessments (Residential Assessments) are recorded as revenue on an as-billed basis
(or lump sum if received in such manner). The Corporation decided not to increase the monthly
maintenance in 2023 for 800 Wellington Court Owners. They have charged a one-time special
assessment of $50,000 to the Sponsor for the year 2023.
Income Taxes
The Corporation is qualified to prepare its tax returns pursuant to the provisions of Subchapter T
of the IRC. Subchapter T provides that expenses attributable to the generation of patronage
income, i.e., income from business done with or for patrons (shareholder cooperators), are
deductible only to the extent of patronage income.
PDF page 23 · financial statements as of 2024-12-31
e. It is
impossible to predict the effect these will have on the Corporations liquidity, credit, tenants ability
to pay their maintenance fees and special assessments, vendors, and counterparties. To help
minimize the uncertainty of these items, the board of directors continues to explore how to best
operate in this environment.
Note 12 Subsequent Events
The Corporation has evaluated subsequent events and transactions for potential recognition or
disclosure in the financial statements through June 11, 2025, the date the financial statements
were available to be issued.
Maintenance Charges
Effective February 1, 2025, the Board of Directors approved an 8% maintenance increase. The
maintenance per share increased from $11.5847 per share to $12.5115 per share.