81-11 45 AVENUE

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0,000 first mortgage will mature on May 1, 2026. The interest rate is fixed at 3.96%. Monthly payments for principal and interest are $27,081 with a balloon payment of $4,521,340 due at the maturity date of May 1, 2026. The Corporation received $1,663,335 at closing which included a return of the $75,000 good faith deposit. These funds were used to replenish the reserve fund. In addition, on April 25, 2016, the Corporation received a credit line second mortgage in the amount of $500,000. The interest rate is floating at Libor plus 3.75%, with a minimum rate of 3.9%. The second mortgage is coterminous with the first mortgage and will be due May 1, 2026. NOTE 10- RECONCILIATION OF PAID-IN CAPITAL Balance January 1, Transfer of amount equivalent to mortgage principal payments from accumulated deficit Balance December 31, NOTE 11 - PROVISION FOR INCOME TAXES $3,992,440 108,570 $4 101.010 $3,888,135 104,305 $3,992 440 Provision has been made for New York State franchise

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rs then ended, 011 a basis qf accounting described in note 2(a). Elmhurst Towers Apartments, Inc. has not presemed the supplementary information on future major repairs and replacements that the American Institute of Certified Public Accountants has determined is necessary to supplement, although no/ required to be part of the basic financial statements. JOEL RADA, C.P.A. r R~-kv

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ts (referred to in Note 3) consist of a general operating fund that is not restricted by legal convention or action of the board of directors, and a reserve fund established in 1989 to be used for betterments of a general nature as determined by the board of directors. The cooperative's governing documents require funds to be accumulated for future major repairs and replacements. Accumulated funds which aggregate $1,304,440 at December 31, 2019 and $1,377,258 at December 31, 2018 are held in a separate account and are generally not available for operating purposes. It is not determinable at the date of these financial statements if funds accumulated for future major repairs and replacements of $1,304,440 and $1,377,258 at December 31, 2019 and 2018, respectively, were adequate. NOTE 3 - CASH AND CASH EQUIVALENTS CONSIST OF: 2019 2018 Operating Fund $ 92,392 $ 39,650 Money Market Accounts: National Cooperative Bank 226,130 229,817 Capital One Business Advantage 19,481 Sign

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MHURST TOWERS APARTMENTS, INC. (A COOPERATIVE HOUSING CORPORATION) NOTES TO FINANCIAL STATEMENTS Years Ended December 31, 2019 and 2018 NOTE 4A - RESERVE FUND Balance at January 1 . Additions: Prior year holiday money returned Interest transferable to operating fund Total Additions Subtractions: Transfer to Operating: Building Improvements and Repairs-Other Elevator Modernization Steam Energy Project Transfer of Earned Interest to Operating Fund Bank charge Total Subtractions Balance at December 31, Summary of Reserve Fund Cash - Money Markets Certificates of Deposit Total NOTE 4B - INVESTMENTS NCB Class B1 Common Stock NCB Class B2 Common Stock Total Investments $ $ $ $ $ $ 2019 1,377,258 21,287 21,287 (45,215) (48,865) (25) (94,105) 1,304,440 449,137 855,303 1,304,440 2019 15,397 80,004 95,401 $ $ $ $ $ $ 2018 1,555,518 1,542 14,394 15,937 (155,647) (38,500) (50) (194,197) 1,377,258 503,211 874,047 1,377,258 2018 15

PDF page 21 · financial statements as of 2019-12-31

26. The Corporation received $1,663,335 at closing which included a return of the $75,000 good faith deposit. These funds were used to replenish the reserve fund. In addition, on April 25, 2016, the Corporation received a credit line second mortgage in the amount of $500,000. The interest rate is floating at Libor plus 3.75%, with a minimum rate of 3.9%. The second mortgage is coterminous with the first mortgage and will be due May 1, 2026. NOTE 10- RECONCILIATION OF PAID-IN CAPITAL Balance January 1, Transfer of amount equivalent to mortgage principal payments from accumulated deficit Balance December 31, NOTE 11 - PROVISION FOR INCOME TAXES $3,992,440 108,570 $4 101.010 $3,888,135 104,305 $3,992 440 Provision has been made for New York State franchise and New York City general corporation taxes only. -10- ------------·---- JOEL RADA --

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en it would be necessary to assess each tenant-shareholder approximately $85. 77 per share in order to pay the principal balance then due. NOTE 13 -FUTURE MAJOR REPAIRS AND REPLACEMENTS The Corporation's governing documents generally provide for the levying of special assessments or the increasing of regular assessments when major repairs and replacements are needed. The board of trustees, however, has chosen to establish a replacement fund and to accumulate funds for the estimated costs of future major repairs and replacements. Accumulated funds, which aggregate approximately $1,304,440 and $1,377,258 at December 31, 2019 and 2018, respectively, are held in separate accounts and are generally not available for operating purposes. It is the Corporation's policy to allocate interest earned by the replacement fund to the operating fund. The Corporation has not conducted a study to determine the remaining useful lives of the components of common property and estimates of the co

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Financial Obligations of the Holder of Unsold Shares Under The Plan Except for the payment of maintenance charges on the Unsold Apartments and the Reserve Fund contribution, the Holder of Unsold Shares has no remaining financial obligations to the Apartment Corporation under the Plan. No Unsold Shares are subject to mortgages or financing commitments. 4. Sources of Payment for Financial Obligations by Holder of Unsold Shares The Holder of Unsold Shares is paying its financial obligations to the Apartment Corporation from a combination ofrental receipts, reserves from the sale of Unsold Apartments and its other capital reserves. The Holder of Unsold Shares is current on all its financial obligations to the Apartment Corporation and has been current during the twelve months preceding the filing of this amendment. 5. Status of Financial Obligations under Offering Plans in Which The Holder of Unsold Shares' Principals Own More Than Ten Percent of the Shares or Units Set for

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mated the remammg lives and replacement costs of the common property and, therefore, has not presented a report on the supplementary information on future major repairs and replacements that the American Institute of Certffied Public Accountants has determined is necessary to supplement, although not required to be a part of, the basic financial statements. JOEL RADA, C.P.A. 0-JJ~/'-· ~-----·--· Bayside, New York August 17, 2020 -12-

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incipal balance then due. NOTE 13 -FUTURE MAJOR REPAIRS AND REPLACEMENTS The Corporation's governing documents generally provide for the levying of special assessments or the increasing of regular assessments when major repairs and replacements are needed. The board of trustees, however, has chosen to establish a replacement fund and to accumulate funds for the estimated costs of future major repairs and replacements. Accumulated funds, which aggregate approximately $1,304,440 and $1,377,258 at December 31, 2019 and 2018, respectively, are held in separate accounts and are generally not available for operating purposes. It is the Corporation's policy to allocate interest earned by the replacement fund to the operating fund. 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. The amounts accumulated in the replacem

PDF page 16 · financial statements as of 2019-12-31

TIVE SCHEDULES OF REVENUES - INCOME TAX BASIS December 31, 2019 and 2018 SCHEDULE A REVENUES Maintenance Laundry Professional apartment rental Sublet fees Antenna rental Garage Flip income Interest Income Dividend Income Miscellaneous TOTAL See accompanying notes to financial statements. -5- ---------------- JOEL RADA 2019 2018 $ 1,435,875 $ 1,435,875 20,600 20,100 17,250 20,700 22,517 26,267 82,275 78,820 42,540 42,390 22,690 13,040 21,290 14,394 11,321 9,055 12,696 5,332 $ 1,689,054 $ 1,665,973

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arges $1,435,875 $1,435,875 Laundry 20,600 20,100 Professional apartment rental 17,250 20,700 Antenna revenue 82,275 77,568 Garage 42,540 38,460 Sublet fees 22,517 21,200 Flip income 22,690 Interest Income 21,290 17,000 Dividend Income 11,321 Other 12,696 10,000 TOTAL REVENUES 1,689,054 1,640,903 EXPENDITURES Labor 288,588 260,000 Heating 118,379 97,000 Electricity and gas 39,908 47,000 Water and sewer 173,081 172,892 Repairs and maintenance 180,026 120,700 Insurance 79,917 84,225 Management fees 34,000 34,000 Professional fees 19,160 19,700 Corporate franchise taxes 4,762 4,198 Real estate taxes 448,046 455,974 Mortgage payments 324,976 324,984 Miscellaneous 21,056 20,230 TOTAL EXPENDITURES 1,731,899 1,640,903 NET EXPENDITURES IN EXCESS OF REVENUES $ {42,845l $ -13- Favorable {Unfavorab1ei $ 500 (3,450) 4,707 4,080 1,317 22,690 4,290 11,321 2,696 48,151 (28,588) (21,379) 7,092 (189) (59,326) 4,308 540 (564) 7,928 8 ~826~ {90,996~ $ (

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020 REVENUES Maintenance (Schedule 1) Garage (Schedule 2) Laundry (Schedule 3) Professional Apartment (Schedule 4) Antenna Income (Schedule 5) Sublet Fees (Schedule 6) Flip income Dividend income Interest Income Other. TOTAL EXPENDITURES Labor and Related Expenses (Schedule 7) Heating (Schedule 8) Utilities (Schedule 9) Water and Sewer Charges (Schedule 10) Repairs and Maintenance (Schedule 11) Insurance (Schedule 12) Management Fees (Schedule 13) Legal and Audit Fees (Scehedule 14) Franchise and Corporate Taxes (Schedule 15) Real Estate Taxes (Schedule 16) Mortgage Payments (Schedule 17) Contingencies (Schedule 18) TOTAL $ 1,502,292 54,240 21,600 37,200 84,168 24,252 17,000 $ 5,000 $ 1,745,752 $ 292,240 106,000 43,000 176,886 128,800 85,850 41,300 20,108 4,712 500,721 324,984 21,151 $ 1,745,752

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edule 3- LAUNDRY 1,800 @ SCHEDULE 4 - PROFESSIONAL APARTMENT 3,100 @ SCHEDULE5-ANTENNAINCOME SIRIUS NEXTEL 1,320 5,694 7,014 @ SCHEDULE 6 - SUBLET FEES 28.50 = 12 = 12 = 12 = 12 = 1,502,292 54,240 21,600 37,200 37,200 84,168 24,252