Reserves & financial health · 3 source passages
PDF page 17 · financial statements as of 2024-12-31
s as shown on the statements of cash flows as of
December 31, 2024 and 2023.
2024 2023
Cash – Operating Account $ 53,444 $ 88,287
Cash – Reserve Fund 1,315,592 1,986,986
Total cash, cash equivalents, and restricted cash
as shown on the statements of cash flows $ 1,369,036 $ 2,075,273
PDF page 19 · financial statements as of 2024-12-31
sideration received from the sale. Apartment transfer fees totaled $-0- and $8,900 for the years ended
December 31, 2024 and 2023, respectively.
9. FUTURE MAJOR REPAIRS AND REPLACEMENTS
The Corporation’s Board of Directors has prepared a study to determine the remaining useful lives of the
components of common property and current estimates of costs of major repairs and replacements that may
be required in the future. Although not disclosed in these financial statements, the study is available to view
at the managing agent’s office. When replacement funds are needed to meet future needs for major repairs
and replacements, the Corporation may have the right to borrow, utilize available cash, increase maintenance
charges, pass special assessments, or delay repairs and replacements until the funds are available. The effect
on future assessments has not been determined at this time.
10. INCOME TAXES
The U.S. Tax Court has ruled that housing cooperatives are subject to Subchapter
PDF page 22 · financial statements as of 2024-12-31
rill Lynch – Cash $ 1,315,592 $ 1,986,986
– Certificates of deposit 1,817,946 3,838,226
– Treasury Bills and Note 3,160,944 493,321
TOTAL RESERVE FUND –Decembe r 31, $ 6,294,482 $ 6,318,533
Assessments & charge increases · 2 source passages
PDF page 19 · financial statements as of 2024-12-31
needs for major repairs
and replacements, the Corporation may have the right to borrow, utilize available cash, increase maintenance
charges, pass special assessments, or delay repairs and replacements until the funds are available. The effect
on future assessments has not been determined at this time.
10. INCOME TAXES
The U.S. Tax Court has ruled that housing cooperatives are subject to Subchapter T of the Internal Revenue
Code (IRC). Subchapter T limits the use of patronage losses as deductions to the extent of patronage income.
Income is patronage sourced if it is derived from an activity that is so closely intertwined with the main
cooperative effort that it may be characterized as directly related to, and inseparable from, the cooperative’s
principal business activity, and thus facilitates the accomplishment of the cooperative’s business purpose.
However, if the transaction or account which produces the income merely enhances the overall profitability
of the cooperativ
PDF page 20 · financial statements as of 2024-12-31
ers
of the 2023/2024 tax years. These amounts are being credited to the eligible shareholders.
12. CONTRIBUTIONS TO CAPITAL
The Corporation treats special assessments used for the acquisition of capital improvements and maintenance
charges used for amortization of mortgage principal as contributions to capital for tax purposes only. For the
years ended December 31,2024 and 2023, there were no contributions to capital.
13. CONCENTRATION OF CREDIT RISK
The Corporation maintains its cash in bank deposit accounts in financial institutions whose balances, at
times, may exceed federally insured limits. At December 31, 2024, the Corporation’s cash balances
exceeded the insured limit.
14. SUBSEQUENT EVENTS
Management has evaluated subsequent events through July 29, 2025, the date at which the financial
statements became available for issuance. No events have occurred, that would require adjustments to, or
disclosure in, the financial statements.
Resale fees & restrictions · 4 source passages
PDF page 12 · financial statements as of 2024-12-31
unt $ 53,444 $ 88,287
Mortgage escrow account 39,133 32,394
Receivables:
Shareholders’ arrears 16,567 11,837
Laundry arrears 4,100 4,100
Transfer fees receivable 8,900 8,900
Prepaid Expenses:
Real estate taxes 107,448 113,065
Insurance 32,754 29,766
Corporate taxes 695 500
Management fee 3,500 -
TOTAL CURRENT ASSETS 266,541 288,849
FUND
Reserve/Savings Fund – Schedule 1 6,294,482 6,318,533
PROPERTY AND EQUIPMENT
Land 1,077,405 1,077,405
Building and improvements 7,974,617 7,861,338
Less: Accumulated depreciation (5,745,901) (5,646,982)
NET PROPERTY AND EQUIPMENT 3,306,121 3,291,761
TOTAL ASSETS $ 9,867,144 $ 9,899,143
PDF page 14 · financial statements as of 2024-12-31
er 31, 2024 and 2023
2024 2023
INCOME
Income from Shareholders
Maintenance charges $ 1,186,168 $ 1,161,960
Assessment – (Note 6) 57,511 -
Transfer fees - 8,900
Late charges 1,250 50
Garage fees 56,716 54,983
Sublet fee 13,107 5,452
Total Income from Shareholders 1,314,752 1,231,345
Other Income
Interest 209,608 262,914
Laundry 15,600 15,600
Miscellaneous 3,032 6,438
Total Other Income 228,240 284,952
TOTAL INCOME 1,542,992 1,516,297
COST OF OPERATIONS
Administrative expenses Schedule 2 193,108 177,249
Operating expenses Schedule 3 359,340 333,505
Repairs and maintenance Schedule 4 96,857 126,343
Taxes Schedule 5 512,056 495,061
Financial expense Schedule 6 363,742 363,742
TOTAL COST OF OPERATIONS 1,525,103 1,495,900
INCOME FROM OPERATIONS BEFORE DEPRECIATION 17,889 20,397
Depreciation Schedule 7 (98,919) (98,493)
NET LOSS (81,030) (78,096)
Beginning Accumulated Deficit (3,358,558) (3,280,462)
Ending Accumulat
PDF page 19 · financial statements as of 2024-12-31
Corporation. Monthly maintenance charges as of December 31, 2024 was $30,791.The Sponsor had no
arrears on these units as of December 31, 2024.
8. TRANSFER FEES
The Corporation’s current transfer fee policy requires the seller to pay the Corporation 1% of the gross
consideration received from the sale. Apartment transfer fees totaled $-0- and $8,900 for the years ended
December 31, 2024 and 2023, respectively.
9. FUTURE MAJOR REPAIRS AND REPLACEMENTS
The Corporation’s Board of Directors has prepared a study to determine the remaining useful lives of the
components of common property and current estimates of costs of major repairs and replacements that may
be required in the future. Although not disclosed in these financial statements, the study is available to view
at the managing agent’s office. When replacement funds are needed to meet future needs for major repairs
and replacements, the Corporation may have the right to borrow, utilize available cash, increase maintenanc
PDF page 25 · effective period must be checked in the document
CATEGORY Budget
2026
REVENUE
Maintenance 1,281,060.77
Abatement Assessment 60,818.16
Tax Abatement (60,818.16)
Laundry 15,600.00
Garage 61,200.00
Sublet Fee 13,866.41
Interest Income 129,823.03
Total Income 1,501,550.21
EXPENSES
Payroll & Related 177,343.59
Real Estate Taxes (net abmnt) 444,620.40
Corporate taxes 4,000.00
Mortgage Interest 325,000.00
Utilities ‐ Electricity 30,650.43
Utilities ‐ Gas Cooking 13,891.99
Utilities‐Gas Heating 95,660.13
Water & Sewer 88,734.47
Repairs & Maintenance 100,000.00
Insurance 164,049.20
Management Fees 36,000.00
Professional Fees 20,000.00
Other Administrative 1,600.00
Total Expense 1,501,550.21
0.00NET OPERATING INCOME
83‐60 118TH STREET OWNERS, INC.
OPERATING FINAL BUDGET
FYE 12/31/2026
EXHIBIT "C"