14-54 31 AVENUE

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such Purchaser’s loan amount, and the assignment of the severed portion to Purchaser’s lender and the consolidation of such severed portion of the mortgage indebtedness encumbering the Property with Purchaser’s mortgage. To the extent that the Purchaser is entitled to an exemption from the mortgage recording tax by reason of any prior mortgage against the Unit or the Property, including but not limited to Sponsor’s mortgage, the Purchaser shall pay to Sponsor at the Closing for such Unit the amount of any such exemption. The severance and assignment of a portion of the mortgage on the Property, as contemplated herein would not result in any additional risk or cost to the Purchaser; under no circumstance will this be the cause of Purchaser losing financing. Any severance/assignment transaction will be initiated only after financing has been procured by Purchaser. After Purchaser has obtained a commitment letter, Sponsor’s counsel will notify Purchaser to contact their lend

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such Purchaser’s loan amount, and the assignment of the severed portion to Purchaser’s lender and the consolidation of such severed portion of the mortgage indebtedness encumbering the Property with Purchaser’s mortgage. To the extent that the Purchaser is entitled to an exemption from the mortgage recording tax by reason of any prior mortgage against the Unit or the Property, including but not limited to Sponsor’s mortgage, the Purchaser shall pay to Sponsor at the Closing for such Unit the amount of any such exemption. The severance and assignment of a portion of the mortgage on the Property, as contemplated herein would not result in any additional risk or cost to the Purchaser; under no circumstance will this be the cause of Purchaser losing financing. Any severance/assignment 69

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request of Sponsor, Purchaser shall fully cooperate with Sponsor in all respects in connection with the severance and assignment of a portion of the mortgage indebtedness encumbering the Property in an amount not to exceed such Purchaser’s loan amount, and the assignment of the severed portion to Purchaser’s lender and the consolidation of such severed portion of the mortgage indebtedness encumbering the Property with Purchaser’s mortgage. To the extent that the Purchaser is entitled to an exemption from the mortgage recording tax by reason of any prior mortgage against the Unit or the Property, includ ing but not limited to Sponsor’s mortgage, the Purchaser shall pay to Sponsor at the Closing for such Unit the amount of any such exemption. The severance and assignment of a portion of the mortgage on the Property, as contemplated herein would not result in any additional risk or cost to the Purchaser; under no circumstance will this be the cause of Purchaser losing financing

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23 COUNSEL ’S TAX OPINION .................................................................................................................... 125 WORKING CAPITAL FUND .................................................................................................................... 129 RESERVE FUND .................................................................................................................................... 130

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section “Unit Closing Costs and Adjustments” set forth in Part I of the Offering Plan. 27. Purchasers shall make a contribution at Closing to the Working Capital Fund and Reserve Fund of the Condominium, payable to the Board of Managers, each in the sum of one months’ common charges then in effect for the Unit, as the same may be amended from time to time. Except for the initial contribution by Purchasers, the Reserve Fund is funded through Common Charges. See the section “Unit Closing Costs and Adjustments” set forth in Part I of the Offering Plan. 28. To the extent that the Purchaser is entitled to any credit against the mortgage recording tax by reason of any prior mortgage against the Unit or the Property, the Purchaser shall pay to Sponsor at the Closing for such Unit the amount of any such credit, if applicable. If the Purchaser obtains a mortgage loan, the Purchaser will pay Sponsor an amount equal to the partial mortgage tax credit which may be available pu

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g any such period of delay, the Sponsor will timely pay all expenses of the Condominium, including, but not limited to, ins urance premiums and any reserve fund payments. Such expenses shall not include individual U nit Owner expenses such as real estate taxes, utility charges, etc. Upon commencement of collection of Common Charges, there will not be an assessment for any item in the approved budget for the Condominium. Regardless of the delay in collection of Common Charges, Sponsor shall remain obligated to update the budget for the Condominium as required by Department of Law governing regulations. In the event Sponsor elects to delay the collection of Common Charges, Sponsor shall disclose such fact in the closing notic e or statement to Purchasers. Thereafter, Sponsor shall also disclose such fact in the post -closing amendment to the Offering Plan as a benefit to subsequent purchasers. Such amendment shall also disclose the anticipated period of delay. Prior to commenc

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h is based on a fully operational building. The Board of Managers may allocate surplus funds to a special purpose fund, retain surplus funds as the Working Capital Fund, or refund Common Charges. Sponsor reserves the right to use its majority vote on the Board of Managers to cause a refund to be issued to Unit Owners. If the actual expenses of operating the Condominium are less than the projected expenses set forth in the budget for the First Year of Operations then, to the extent such excess was paid by such Unit Owner, the difference between the actual expenses and the full common charges will be refunded to all Unit Owners (including the Sponsor) on a pro- rated basis in the form of either a credit against future common charges or as a cash reimbursement to the extent that the Unit Owner (including the Sponsor ) ha s sold the Unit prior to the receipt of the full credit. Sponsor makes no warranty or representation that the operating expenses during this period will be l

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et of the condominium. No refund may be given unless all expenses of the condominium are paid, including but not limited to, insurance premiums and reserve funds. During the budget year following a year fo r which a refund was effectuated, no special assessment or increase in common charges shall be instituted to pay for any item which was set forth in the previous year’s budget and which was refunded to unit owners as per the foregoing. Sponsor shall remain obligated to update the budget for the Condominium as required by Department of Law governing regulations. See the section “Rights and Obligations of the Sponsor” set forth in Part I of the Offering Plan. 33. The Housing Merchant Implied Warranty (General Business Law Article 36-B) does not apply to this offering because that statu te applies only to new single family homes or new for sale units in a multi- unit residential structure which is five (5) stories or less in which title is transferred to Purchasers under

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t II of the Offering Plan. Purchase Price: The purchase price for a Unit. Purchaser: A purchaser of a Unit pursuant to a Purchase Agreement. Reserve Fund: A fund established for the Condominium for major capital expenditures such as the renewal or replacement of building components or systems or the remedy of major building defects. Residential Unit: Any areas of the Building designated as such on the Floor Plans, and intended to be used for residential purposes, together with its percentage of Common Interest. For the purposes of voting and budgeting, Parking Units shall be treated as Residential Units. Residential Unit Owner : The owner of a Residential Unit. For the purposes of voting and budgeting, a Parking Unit Owner shall be treated as Residential Unit Owner. Rules and Regulations: The rules and regulations of the Condominium made in accordance with the By-Laws. The rules and regulations, which will apply unless and until amended by the Board of Manage

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Successor Sponsor, other than any Unit purchased by and for the use of Sponsor or Successor Sponsor, until such time as the same have been sold. Working Capital Fund: A fund held and used for working capital, closing costs and adjustments, unanticipated increases in budgeted or additional Common Expenses, capital repairs or replacement or for such other appropriate purposes as will be determined by the Board of Managers. ZLDA: A zoning lot development agreement. 11

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is based on a fully operational building. The Board of Managers may allocate surplus funds to a special purpose fund, retain surplus funds as the Working Capital Fund, or refund Common Charges. Sponsor reserves the right to use its majority vote on the Board of Managers to cause a refund to be issued to Unit Owners. If the actual expenses of operating the Condominium are less than the projected expenses set forth in the budget for the First Year of Operations then, to the extent such excess was paid by such Unit Owner, the difference between the actual expenses and the full common charges will be re funded to all Unit Owners (including the Sponsor) on a pro - rated basis in the form of either a credit against future common charges or as a cash reimbursement to the extent that the Unit Owner (including the Sponsor ) has sold the Unit prior to the receipt of the full credit. Sponsor makes no warranty or representation that the operating expenses during this period will be l

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$ SERVICE CONTRACTS (7) 15,200.00$ INSURANCE (8) 8,678.00$ MANAGEMENT FEE (9) - $ LEGAL AND AUDIT FEES (10) 3,500.00$ RESERVE FUND (11) 11,761.00$ TOTAL OPERATING EXPENSES 117,597.00$ Amounts are projected on the assumption that the First Year of Condominium Operation will be the year from July 1, 2023 to June 30, 2024. The actual First Year of Condominium Operation may begin earlier or later than that year. In the event the actual or anticipated commencement date of the First Year of Condominium Operation is to be delayed by six (6) months or more, Sponsor will amend the Plan to include a revised budget with current projections. If the amended budget exceeds this projected budget by twenty-five percent (25%) or more, Sponsor will offer all Purchasers the right to rescind their Purchase Agreements within not less than fifteen (15) days after the presentation date of the amendment containing such revised budget, and any Purchasers electing r

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sed on an estimate received from SHDA Tax with an office located at 136-08 Roosevelt Avenue, Floor 3, Flushing, New York 11354. 11. Reserve A reserve fund is being established for the Condominium for major capital expenditures such as the renewal or replacement of building components or systems or the remedy of major building defects (the “Reserve Fund”). Purchaser s shall make a contribution a t Closing to the Working Capital Fund and Reserve Fund of the Condominium, payable to the Board of Managers, each in the sum of one months’ common charges then in effect for the Unit, as the same may be amended from time to time. Except for the initial con tribution by Purchasers, the Reserve Fund is funded through Common Charges. The budgeted figure does not include these initial contributions. The Board of Managers, in its discretion, and subject to certain restrictions contained in the By-Laws, 34

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may, in its discretion, decide in future years to increase or decrease the Reserve Fund line item in the Condominium’s annual budget. It is anticipated that the reserve fund as it accumulates will be sufficient to pay for the replacement of any capital items likely to be needed within the first five (5) years of Condominium operation. No representation or warranty is made that the Reserve Fund will be, or is intended to be, adequate to cover current or future expenses, for the first or any subsequent year of Condominium Operation. IN THE OPINION OF E REALTY INTERNATIONAL CORP., THE PROJECTED INCOME IS ADEQUATE TO MEET THE ESTIMATED EXPENSES FOR THE FIRST YEAR OF OPERATIONS. THE BUDGET, HOWEVER, IS NOT INTENDED AND SHOULD NOT BE TAKEN AS A GUARANTEE OR WARRANTY BY ANYONE THAT THE ANNUAL COMMON CHARGES OR COMMON EXPENSES FOR THE FIRST OR ANY SUBSEQUENT YEAR OF OPERATION OF THE PROPERTY BY THE BOARD OF MANAGERS WILL BE AS SET FORTH IN THE BUDGET. IN FACT, IT IS LIKELY

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al Fees Purchasers shall have sole responsibilit y for payment of all professionals, including attorney(s), employed or retained by Purchaser. Working Capital and Reserve Fund Contribution Purchasers shall make a contribution at Closing to the Working Capital Fund and Reserve Fund of the Condominium, payable to the Board of Managers, each in the sum of one months’ common charges then in effect for the Unit, as the same may be amended from time to time. Except for the initial contribution by Purchasers, the Reserve Fund is funded through Common Charges. Example of Typical Closing Costs The following is a numerical example of all closing costs based on the presumptions set forth below and assuming current rates and charges: Assuming that a Purchaser closes timely and incurs no penalties under the Purchase Agreement, the closing costs with a Purchase Price of $800,000.00 and assuming a mortgage of $600,000.00 will be approximately: Title Insurance Fee: $ 3,1

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ng any such period of delay, the Sponsor will timely pay all expenses of the Condominium, including, but not limited to, insurance premiums and any reserve fund payments. Such expenses shall not include individual U nit Owner expenses such as real estate taxes, utility charges, etc. Upon commencement of collection of Common Charges, there will not be an assessment for any item in the approved budget for the Condominium. Regardless of the delay in collection of Common Charges, Sponsor shall remain obligated to update the budget for the Condominium as required by Department of Law governing regulations. In the event Sponsor elects to delay the collection of Common Charges, Sponsor shall disclose such fact in the closing notice or statement to Purchasers. Thereafter, Sponsor shall also disclose such fact in the post -closing amendment to the Offer ing Plan as a benefit to subsequent purchasers. Such amendment shall also disclose the anticipated period of delay. Prior to commenc

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et of the condominium. No refund may be given unless all expenses of the condominium are paid, including but not limited to, insurance premiums and reserve funds. During the budget year following a year for which a refund was effectuated, no special assessment or increase in common charges shall be instituted to pay for any item which was set forth in the previous year’s budget and which was refunded to unit owners as per the foregoing. S ponsor shall remain obligated to update the budget for the Condominium as required by Department of Law governing regulations. Casualty Insurance Sponsor shall procure fire and casualty insurance, as set forth in Schedule B, pursuant to an agreed amount replacement value policy or in an amount sufficient to avoid co- insurance, as reflected in Schedule B. Such insurance will provide that each Unit Owner is an additional insured and that there will be no cancellation without thirty (30) days’ notice to the Board of Managers and Unit Own

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rms and conditions as the Board of Managers will agree to provide for major and minor maintenance, repairs, additions, improvements, replacements, working capital, bad debts and unpaid Common Expenses, insurance, depreciation, obsolescence and similar purposes (the repayment of any and all such debt may be secured and paid as provided in §339-jj of the New York Real Property Law). Members of the Board of Managers will have no liability to the Unit Owners or third parties for errors of judgment, negligence, or otherwise, except for errors constituting willful misconduct or bad faith. The Unit Owners will severally indemnify the members of the Board of Managers against any liability or claims except those arising out of their bad faith or willful misconduct, but the liability of any Unit Owner on account o f such indemnification will be limited to such proportionate share thereof as the Common Interest of such Unit Owner bears to the aggregate Common Interest of all Unit O

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Managers does exercise its right of first refusal with respect to the sale of a Residential Unit, the acquisition of the Unit may be made from the working capital and Common Charges, or, if such funds are insufficient, the Board of Managers may assess each Residential Unit Owner, other than the offering Unit Owner, in proportion to each Residential Unit Owner’s percentage of Common Interest, or may b orrow money to finance such acquisition. The sole security which may be given for any funds so borrowed is the Unit to be acquired. The Board of Managers may also assess each Residential Unit Owner, as provided above, for Common Charges for the Unit, or th e rent due pursuant to the Lease, and for the cost of maintenance and repairs to such Unit. Neither the Board of Managers nor any Residential Unit Owner shall be entitled to cast any votes attributable to such Residential Unit. Notwithstanding the above, the right of first refusal held by the Board of Managers shall not

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ts, water, audit and legal expenses and reserves for capital expenditures, may include, in the discretion of the Board of Managers, other reserves, working capital and other sums necessary to carry on the affairs of the Condominium. The Common Charges will not include maintenance, repairs or decoration of any Units or portions thereof (except for s tructural repairs and Units acquired by the Board of Managers ), payments required pursuant to the terms of any Unit Owner’s mortgage, or real estate taxes covering the individual Units. The liability of each Unit Owner for the payment of the Common Charge s thereafter assessed or becoming due against their other Unit, shall terminate upon a permissible sale, transfer or other conveyance of such Unit together with the appurtenant interest in the Common Elements made by him or her in accordance with the applicable provisions of the By-Laws. In addition, any Unit Owner may, subject to the terms and conditions specified in the

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ng any such period of delay, the Sponsor will timely pay all expenses of the Condominium, including, but not limited to, insurance premiums and any reserve fund payments. Such expenses shall not include individual U nit Owner expenses such as real estate taxes, utility charges, etc. Upon commencement of collection of Common Charges, there will not be an assessment for any item in the approved budget for the Condominium. Regardless of the delay in collection of Common Charges, Sponsor shall remain obligated to update the budget for the Condominium as required by Department of Law governing regulations. In the event Sponsor elects to delay the collection of Common Charges, Sponsor shall disclose such fact in the closing notice or statement to Purchasers. Thereafter, Sponsor shall also disclose such fact in the post -closing amendment to the Offering Plan as a benefit to subsequent purchasers. Such amendment shall also disclose the anticipated period of delay. Prior to commenci

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ncome is taxable. Examples of income which is not exempt function income are common charges paid by owners of commercial units, interest earned on reserve funds, amounts received from persons who are n ot members of the Condominium management association, amounts received for work done on privately owned property which is not Condominium management association property, and amounts received from members for special use of the Condominium management a ssociation’s facilities, the use of which is not available to all members as a result of having paid the dues, fees, or assessments required to be paid by all members. If the Condominium management association fails to qualify 127

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WORKING CAPITAL FUND The Purchaser of each Unit shall be required to make a contribution at the Closing to the working capital fund of the Condominium (the “Working Capital Fund”) in an amount equal to one (1) times the monthly Common Charges due with respect to such Unit as of the Closing. Sponsor will not be obligated to make any contributions to the Working Capital Fund, except to the extent it is funded by payment of Common Charges. The Working Capital Fund will be held and used for working capital, closing costs and adjust ments, unanticipated increases in budgeted or additional Common Expenses, capital repairs or replacement or for such other appropriate purposes as will be determined by the Board of Managers. While Sponsor controls the Board of Managers, the Working Capital Fund will not be used to reduce estimated Common Charges. The Board of Managers will be able to utilize the money in the Working Capital Fund at any time and accordingly, no representation or war

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RESERVE FUND A reserve fund is being established for the Condominium for major capital expenditures such as the renewal or replacement of building components or systems or the remedy of major building defects (the “Reserve Fund”). The Purchaser of each Unit shall be required to make a contribution at the Closing to the Reserve Fund in an amount equal to one (1) times the monthly Common Charges due with respect to such Unit as of the Closing. The Reserve Fund is funded through Common Charges ; the exact amount of the Reserve Fund cannot be determined as it depends on the timing of when each Unit closes, however $11,499.00 is budgeted to accrue by the end of the First Year of Operation. The Board of Managers, in its discretion, may decide in future years to increase or decrease the reserve fund line item in the Condominium’s annual budget or issue special assessments to finance needed capital expenditures. While the Sponsor is in control of the Board of Managers, Sponsor

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s section of the Offering Plan, whether or not such costs are set forth in this Agreement. 9.5 Purchaser shall make a contribution at Closing to the Working Capital Fund and Reserve Fund of the Condominium, payable to the Board of Managers, each in the sum of one months’ common charges then in effect for the Unit, as the same may be amended from time to time. 9.6 Purchaser shall pay to the Board of Managers the Common Charges for the Unit for the first full month following the month in which title closes. 9.7 Purchaser shall pay the Real Estate Transfer Tax due to the State of New York (the so- called “deed stamps” and, if applicable, the so -called “mansion tax”), the Real Property Transfer Tax due to the City of New York and any other real property transfer tax due to the City or State of New York. Purchaser agrees to indemnify and hold Sponsor harmless from and against any and all liabilities and expenses (including, without limitation, reasonable legal fees and disburs

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n the By -Laws, to incur debt on behalf of Unit Owners to provide for major and minor m aintenance, repairs, additions, improvements, replacements, working capital, bad debts and unpaid Common Expenses, insurance, depreciation, obsolescence and similar purposes. The repayment of any and all such debt may be secured and paid as provided in §339-jj of the New York Real Property Law. ARTICLE 31 POWER OF ATTORNEY 31.1. Each Unit Owner shall grant to the Board of Managers an irrevocable limited power of attorney, coupled with an interest (in such form and content as the Board of Managers shall determine) following due authorization (if required) from the Unit Owners (a) to acquire or lease any Unit, together with its Appurtenant Interest (as defined hereinafter) whose owner desires to sell, convey, transfer, assign, lease or surrender the same, or which becomes the subject of a foreclosure or other similar sale, on such terms and at such price or rental, as the case may be,

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be furnished to the Board of Managers; (p) To collect funds from Unit Owners and accumulate reserves for capital replacements to the Units (the "Reserve Fund"). The Reserve Fund, if any, shall be used for the periodic maintenance, repair and replacement of the Common Elements; (q) To collect monthly e scrows from Unit Owners with their Common Charges for the payment of real estate taxes attributable to individual Units based upon the estimated tax bill for the entire Property a t the then current tax rate until all of the Units are separately assessed, and deposit the same in a tax escrow account established by Declarant pursuant to an offering plan filed with the New York State Department of Law; (r) To establish, enforce, amend and otherwise modify Rules and Regulations relating to the operation of the Condominium from time to time, and such Rules and Regulations, and any amendments thereto, shall be binding upon the Unit Owners thirty (30) days after the date the

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the sale of a Unit, the acquisition of the Unit may be made from the working capital and Common Charges, or, if such funds are insufficient, the Board of Managers may assess each Unit Owner, other than the offering Unit Owner, in proportion to each Unit Owner’s percentage of Common Interest, or may borrow money to finance such acquisition. The sole security which may be given for any funds so borrowed is the Unit to be acquired. The Board of Managers may also assess each Unit Owner, as provided above, for Common Charges for the Unit, or the rent due pursuant to the Lease, and for the cost of maintenance and repairs to such Unit. Neither the Board of Managers nor any Unit Owner shall be entitled to cast any votes attributable to such Unit. (f) Notwithstanding the above, the right of first refusal held by the Board of Managers shall not adversely impact the rights of a mortgagee or its assignee to: i. foreclosure or take title to a unit pursuant to the remedies in the mo

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including but not limited to, insurance premiums and reserve funds. During the budget year following a year fo r which a refund was effectuated, no special assessment or increase in common charges shall be instituted to pay for any item which was set forth in the previous year’s budget and which was refunded to unit owners as per the foregoing. Sponsor shall remain obligated to update the budget for the Condominium as required by Department of Law governing regulations. See the section “Rights and Obligations of the Sponsor” set forth in Part I of the Offering Plan. 33. The Housing Merchant Implied Warranty (General Business Law Article 36-B) does not apply to this offering because that statu te applies only to new single family homes or new for sale units in a multi- unit residential structure which is five (5) stories or less in which title is transferred to Purchasers under a cooperative or condominium regime. As the Building is greater than five (5) stories, this

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onsor sells and conveys those Units. If any Unit Owner fails to pay a Unit’s pro rata share of real estate taxes when due, by Common Charge billing, special assessment billing, or both, the Board of Managers will have a lien on such Unit for non-payment thereof, as if such charges were Common Charges. If the actual taxes due are lower than the amount collected and held in escrow, then the Board of Managers shall pay the Unit Owners their proportionate share of any excess. At such time that the individual Units have been separately assessed, Unit Owners shall make a payment directly to the New York City Department of Finance no la ter than the due date for such real estate tax payment. Unit Owners shall notify the Board of Managers that the individual Units have been separately assessed and any sum collected and held in escrow not paid toward real estate taxes shall be reimbursed to the Unit Owner or Sponsor who advanced same. See the section “Real Estate Taxes” set fo

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including but not limited to, insurance premiums and reserve funds. During the budget year following a year for which a refund was effectuated, no special assessment or increase in common charges shall be instituted to pay for any item which was set forth in the previous year’s budget and which was refunded to unit owners as per the foregoing. Sponsor shall remain obligated to update the budget for the Condominium as required by Department of Law governing regulations. Limited Common Elements are Common Elements existing for the sole use and enjoyment of certain Unit Owners to the exclusion of all other Unit Owners. Limited Common Elements include but are not limited to any facilities (pipes, shut -off valves, wires, lines, conduits) that exclusively serve a Unit that are located behind its boundary walls or within its boundary walls but not readily accessible without damage to such boundary walls, balconies, terraces, or yards 13

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onsor sells and conveys those Units. If any Unit Owner fails to pay a Unit’s pro rata share of real estate taxes when due, by Common Charge billing, special assessment billing, or both, the Board of Managers will have a lien on such Unit for non-payment thereof, as if such charges were Common Charges. If the actual taxes due are lower than the amount collected and held in escrow, then the Board of Managers shall pay the Unit Owners their proportionate share of any excess. At such time that the individual Units have been separately assessed, Unit Owners shall make a payment directly to the New York City Department of Finance no later than the due date for such real estate tax payment. Unit Owners shall notify the Board of Managers that the individual Units have been separately assessed and any sum collected and held in escrow not paid toward real estate taxes shall be reimbursed to the Unit Owner or Sponsor who advanced same. Until the Units have been separately assessed, a

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lidated Laws of the State of New York, General Business Law, Volume 19, page 160. Operating Expenses Sponsor agrees to pay all Common Charges, special assessments and real estate taxes with respect to all Unsold Units imposed by Board of Managers in accordance with this Offering Plan. Sponsor represents that it has the financial resources to meet its obligations with respect to Unsold Units. Sponsor expects to fund its financial obligations to the Condominium from the income from projected sales and if necessary, from the personal financial assets of Sponsor’s principal. Except 75

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including but not limited to, insurance premiums and reserve funds. During the budget year following a year for which a refund was effectuated, no special assessment or increase in common charges shall be instituted to pay for any item which was set forth in the previous year’s budget and which was refunded to unit owners as per the foregoing. S ponsor shall remain obligated to update the budget for the Condominium as required by Department of Law governing regulations. Casualty Insurance Sponsor shall procure fire and casualty insurance, as set forth in Schedule B, pursuant to an agreed amount replacement value policy or in an amount sufficient to avoid co- insurance, as reflected in Schedule B. Such insurance will provide that each Unit Owner is an additional insured and that there will be no cancellation without thirty (30) days’ notice to the Board of Managers and Unit Owners. The insurance policies will also contain waivers of subrogation, waivers of invalidity du

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onsor sells and conveys those Units. If any Unit Owner fails to pay a Unit’s pro rata share of real estate taxes when due, by Common Charge billing, special assessment b illing, or both, the Board of Managers will have a lien on such Unit for non-payment thereof, as if such charges were Common Charges. If the actual taxes due are lower than the amount collected and held in escrow, then the Board of Managers shall pay the Unit Owners their proportionate share of any excess. At such time that the individual Units have been separately assessed, Unit Owners shall make a payment directly to the New York City Department of Finance no later than the due date for such real estate tax payment. Unit Owners shall notify the Board of Managers that the individual Units have been separately assessed and any sum collected and held in escrow not paid toward real estate taxes shall be reimbursed to the Unit Owner or Sponsor who advanced same. Prospective Purchasers are advised to read

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gers, in its discretion, may decide in future years to increase or decrease the reserve fund line item in the Condominium’s annual budget or issue special assessments to finance needed capital expenditures. While the Sponsor is in control of the Board of Managers, Sponsor will not use Reserve Fund monies to reduce common charges. Since the Building is being newly constructed, it is anticipated that the reserve fund as it accumulates will be sufficient to pay for the replacement of any capital items likely to be needed within the first five (5) years of Condominium operation. Neither the Department of Law nor any government agency has passed upon the adequacy of the Reserve Fund. No representation or warranty is made that the Reserve Fund will be, or is intended to be, adequate to cover current or future expenses, for the first or any subsequent year of Condominium Operation. 130

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er at the time specified by the Unit Owner, and confirmation of all payments made to that date and a statement as to the monthly Common Charges and special assessments payable following a closing; (c) confirmation of the then current budget of the Condominium and the amounts payable by the applicable Unit Owner, and an agreement that the calculation of payments due from the Unit Owner or services provided to the Unit Owner will not be changed without its consent; (d) an agreement to deliver all notices that are sent to the Unit Owner to its lender or lender’s designee at the address provided; (e) confirmation that the current use of the Unit does not violate the terms of the Declaration and By-Laws; (f) agreement that the tenant of a Unit Owner is a third-party beneficiary of the obligations of the Condominium to the Unit Owner; (g) confirmation to the lender of the provisions of the Declaration allowing the applicable Unit Owner to make Alterations to the Uni

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arges and assessments collected, to maintain, care for and preserve the Common Elements, and the Common Elements. In no event shall Common Charges, special assessments or other funds received by the Board of Managers in connection with repairs of the Common Elements to be utilized to defray any expenses other than those related to the maintenance, repair and preservation of the Common Elements; (c) To make repairs, restore or alter any Units or the Common Elements after damage or destruction by fire or other casualty or as a result of condemnation or eminent domain proceedings; (d) To exercise the easements and access rights granted to the Bo ard of Managers in the Declaration when necessary and with as little inconvenience to the Unit Owner as possible in connection with the maintenance, care and preservation of the property, including emergency repairs at all times whether or not the Unit Owner is present, provided that such utility or other easements shall not, to

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the amount of and assess Common Charges, the Board of Managers shall have the right, subject to the strictures set forth in these By- Laws, to levy special assessments (“Special Assessments”) to meet the Common Expenses. The Board of Managers shall give each Unit Owner not less than ten (10) days’ written notice prior to the date upon which the Board of Managers shall meet to discuss levying Special Assessments, with reasonable detail of the nature and purpose of the Special Assessment. Special Assessment s shall be based on Common Interest or the proportion of expenses and charges fairly attributable to Units, based upon estimated usage of particular services, or based upon special or exclusive use or availability or exclusive control of particular Common Elements by particular Unit Owners. Special Assessments may be payable either in one lum p sum or in installments, as the Board of Managers shall determine, provided, however, that the Board of Managers shall give each Uni

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es shall constitute additional Common Charges. 9.3. Failure to Pay Assessments. 9.3.1 Unit Owners shall pay promptly when Common Charges and Special Assessments are assessed against their Unit. Any Unit Owner who fails to pay Common Charges shall be liable for any expenses incurred by the Board of Managers in collecting said monthly Common Charge assessment, including interest at the highest legal rate and reasonable attorneys' fees. 9.3.2 In the event of a default in the payment of any monthly Common Charge assessment by any Unit Owner, the Board of Managers, at its sole option, may declare the Common Charge assessment on said Unit Owner's Unit for the balance of the fiscal year immediately due and payable. Prior to making any such declaration following a default, the Board of Managers shall send notice to the delinquent Unit Owner and the Permitted Mortgagee, if any, giving the Unit Owner a five (5) day grace period in which to make their payment. The Board of Ma

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and maintained a cash deposit account to be known as the "Operating Account" into which shall be deposited the operating portion of all monthly and special assessments as fixed and determined for all Units. Disbursements from s aid account shall be for the general needs of the operation including, but not limited to, wages, repairs, betterments, maintenance and other operating expenses of the Common Elements and for the purchase, lease, sale or other expenses resulting from the purchase or lease of Units. 9.8. Other Accounts . The Board of Managers shall maintain any other accounts it shall deem necessary to carry out its purposes. 298

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E. As of the date of this submission to the Department of Law, the amount held in the Working Capital Fund was $3,603.90 and the amount held in the Reserve Fund was $1,200.00. The Working Capital Fund and the Reserve Fund are being held at Chase Bank located at 5423 8th Avenue, Brooklyn NY 11220 F. As of the submission date of this Amendment to the Department of Law Units 1A , 2A , 2B, 2D, 3A, 3B, 3d, 4A, 4D, 5A, 5B, and 7A are unsold. G. The members of the Board of Managers are: Ke An Chen– Designee of Sponsor – 35 N Tyson Avenue, Floral Park, NY 11001 Yi Yue Chen– Designee of Sponsor – 50 Mellow Lane, Jericho NY 11753 Can Chen – Designee of Sponsor – 8818 81st Avenue, Ridgewood NY 11386 H. Sponsor reserves the right to control the Board of Managers for a period of time until the earlier to occur of (a) thirty (30) days after the date by which one hundred percent (100%) of the Units have been conveyed to Purchasers; or (b) five (5) years after the First Closing (