Building debt & maturity · 2 source passages
PDF page 16 · financial statements as of 2020-12-31
2,615 2,615
Property and equipment, net 1,612,249 1,584,449
Total assets 2,434,842$ 2,061,425$
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgage note payable, less deferred financing
costs of $63,520 and $2,487, respectively 2,236,480$ 1,912,992$
Accrued expenses and other liabilities 90,460 46,593
Due to related party 1,878 1,878
Deferred revenue - tenant-shareholders'
maintenance 20,439 23,876
Tenant security deposits payable 4,532 5,066
Total liabilities 2,353,789 1,990,405
Commitments and contingencies
Shareholders' Equity
Common stock, $0.01 par value; 40,000 shares
authorized; 24,165 shares issued and
outstanding 242 242
Additional paid-in capital 2,435,916 2,394,642
Deficit (2,355,105) (2,323,864)
Total shareholders' equity 81,053 71,020
Total liabilities and shareholders' equity 2,434,842$ 2,061,425$
The accompanying notes are an integral part of these financial statements. 4
PDF page 24 · financial statements as of 2020-12-31
3202 OWNERS CORP
(A Cooperative Housing Corporation)
NOTES TO FINANCIAL STATEMENTS
Years Ended December 31, 2020 and 2019
12
NOTE 6 - MORTGAGE NOTE PAYABLE
In July 2010, the Corporation obtained a mortgage loan of $2,280,000. The mortgage required
principal pay ments based on a 30 year amortization with a 10 year maturity on August 1,
2020. The mortgage bore interest at 5.25% per annum during years 1 to 5 ; and 5.75% per
annum during years 6 through 10. During the first 5 years payments were in equal monthly
installments of $ 12,590 for principal and interest, plus monthly escrow for real estate taxes.
During years 6 through 10 , the monthly payments were $13,218, plus monthly escrow for real
estate taxes. The Corporation refinanced this mortgage on November 12, 2020, entering into a
new mortgage obligation in the amount of $2,300,000.
The new mortgage was used to pay off the pre -existing mortgage in the principal amount of
$1,874,205 and an additional $425,795 was loaned to th
Reserves & financial health · 4 source passages
PDF page 16 · financial statements as of 2020-12-31
orporation)
BALANCE SHEETS
December 31, 2020 and 2019
2020 2019
ASSETS
Cash 489,
158$ 55,125$
Cash - mortgage reserve 26,068 -
Cash -
reserve fund 268,213 268,458
Tax escrow fund -
72,022
Prepaid expenses and other assets 34,784 77,001
Prepaid income taxes 1,755 1,755
Security deposit 2,615 2,615
Property and equipment, net 1,612,249 1,584,449
Total assets 2,434,842$ 2,061,425$
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgage note payable, less deferred financing
costs of $63,520 and $2,487, respectively 2,236,480$ 1,912,992$
Accrued expenses and other liabilities 90,460 46,593
Due to related party 1,878 1,878
Deferred revenue - tenant-shareholders'
maintenance 20,439 23,876
Tenant security deposits payable 4,532 5,066
Total liabilities 2,353,789 1,990,405
Commitments and contingencies
Shareholders' Equity
Common stock, $0.01 par value; 40,000 shares
authorized; 24,165 shares issued and
outstanding 242 242
Additional paid-in capital 2,4
PDF page 19 · financial statements as of 2020-12-31
of year 783,439 $ 323,583 $
Cash - operating 489,158 $ 55,125 $
Cash - mortgage reserve 26,068 -
Cash - reserve fund 268,213 268,458
Total cash and restricted cash at end of year 783,439 $ 323,583 $
Supplemental Disclosure of Cash Flow Information
Interest paid 107,302 $ 111,617 $
Income taxes paid 500 $ 400 $
The accompanying notes are an integral part of these financial statements. 7
PDF page 23 · financial statements as of 2020-12-31
of directors. The Corporation retains excess operating funds, if any, at the end of the
operating year for use in future operating periods.
NOTE 3 - RESERVE FUND
At December 31, 2020 and 2019, a reserve fund of $ 268,213 and $268,458, respectively, has
been retained by the Corporation and is held in a money market account . Reserve funds are
to be used at the Board’s discretion for capital improvements, repairs and replacements, or for
operating expenses, as needed.
NOTE 4 - PROPERTY AND EQUIPMENT
Property and equipment at cost consists of the following:
2020 2019
Land $ 566,400 $ 566,400
Buildings and improvements 5,186,967 5,159,167
Equipment and furniture 15,210 15,210
5,768,577 5,740,777
Less: Accumulated depreciation (4,156,328) (4,156,328)
Property and equipment, net $ 1,612,249 $ 1,584,449
NOTE 5 - ESCROW DEPOSITS
Under the mortgage obligation in effect at December 31, 2019 , escrow deposits for the
payment of real estate taxes were maintained with the mortgage holder. As of
PDF page 26 · financial statements as of 2020-12-31
REPAIRS , REPLACEMENTS AND
CAPITAL IMPROVEMENTS
The Corporation’s governing documents do not require the accumulation of funds to finance
estimated 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 estimates
of the costs of major repairs and replacements that may be required in the future. When funds
are required for major repairs a nd replacements, the Corporation plans to use the Reserve
Fund (see N ote 3), borrow, increase m aintenance assessments, or defer repairs and
replacements until funds are available. The effect on future assessments has not been
determined.
NOTE 10 - RELATED PARTY TRANSACTIONS
The Corporation utilizes the services of an affiliate of the plan sponsor as managing agent
under a management agreement. The related expense for the year s ended December 31,
2020 and 2019 was $13,200.
Security services are provided to the Corporation by a company par
Assessments & charge increases · 1 source passages
PDF page 23 · financial statements as of 2020-12-31
g Corporation)
NOTES TO FINANCIAL STATEMENTS
Years Ended December 31, 2020 and 2019
11
NOTE 2 - REVENUES
Tenant-Shareholders’ Maintenance Charges and Special Assessments
Tenant-shareholders’ maintenance charges are based on an annual budget determined by the
board of directors. The Corporation retains excess operating funds, if any, at the end of the
operating year for use in future operating periods.
NOTE 3 - RESERVE FUND
At December 31, 2020 and 2019, a reserve fund of $ 268,213 and $268,458, respectively, has
been retained by the Corporation and is held in a money market account . Reserve funds are
to be used at the Board’s discretion for capital improvements, repairs and replacements, or for
operating expenses, as needed.
NOTE 4 - PROPERTY AND EQUIPMENT
Property and equipment at cost consists of the following:
2020 2019
Land $ 566,400 $ 566,400
Buildings and improvements 5,186,967 5,159,167
Equipment and furniture 15,210 15,210
5,768,577 5,740,777
Less: Accumulated depreciation