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Anyone else get a lovely letter from ConEd stating the electric bills have not been paid by the sponsor? Mine mentioned almost $500! We need to follow up and make sure the corporation is not on the hook for operating costs prior to conversion! Its only fair since the sponsor stuck us each with close to $2,000 in legal fees for their non-responsive lawyers!
Right. If either of these were figured into the budget then they wouldn't be balloon payments.
The SMART thing to do would be to take any extra reserve money and pay off the super's apartment first. In fact it might be worth it to pay off earlier if the sponsor allows. They are making sweet interest on this money. As for the $5 million...anytime someone sells before 15 years their profits will help to pay this off, which will help, but one would hope the remaining debt will be able to be refinanced for a low interest rate. I'm not sure but there may be a chance to refi with the housing agency if the affordability is kept on the building, but that will be up to the board elected in 2043...a long time away.
Nick,
The reserve is there for improvements and extraordinary renovation, to withdraw funds you need to ask HDC permission. It seems to me the best way to pay for supers apartment is to cough up and extra $100 approx from each apartment per month for the entire 5th year of coop or spread it out over next year 5 years as a smaller monthly adjustment. What do you say?
The reserve is there for improvements and extraordinary renovation, to withdraw funds you need to ask HDC permission. It seems to me the best way to pay for supers apartment is to cough up and extra $100 approx from each apartment per month for the entire 5th year of coop or spread it out over next year 5 years as a smaller monthly adjustment. What do you say?
Sorry, I didn't mean the capital reserve fund. I should have said for any excess maintenance paid. I'm not sure if we will have that, but if we do I think it is worth setting aside for this purpose. Otherwise, like you said, in year 5 we will have a nice little assessment of at least $100 each month for the whole year. If it were up to me this would be the first priority with any extra money in the budget. But that will be up to the board...
Sorry, I didn't mean the capital reserve fund. I should have said for any excess maintenance paid. I'm not sure if we will have that, but if we do I think it is worth setting aside for this purpose. Otherwise, like you said, in year 5 we will have a nice little assessment of at least $100 each month for the whole year. If it were up to me this would be the first priority with any extra money in the budget. But that will be up to the board...
Consider the time value of money - paying about $100 a month in 5 yrs might not be the same (it might be cheaper due to inflation) then paying $20 a month for 5 yrs if you were ask everyone to contribute for 5 yrs in paying off the apt.
In what circumstance will the operation budget be in the green (and to be used to pay the apt off)? The budget is currently set to cover operating cost pretty close to what they are.
There has to be tax benefits not to pay off that mortgage and there has to be an attached subsidy of the supers unit. What is the term of the unit. Is it a 30 year mortgage held by ?? I don't haven OP handy to review this but paying it off doesn't make sense somehow and based on the different income levels and to home programs you can't say everyone pays $100. What would happen is it would be based on your shares. Fo those with 140 shares pay less than those 300.
There has to be tax benefits not to pay off that mortgage and there has to be an attached subsidy of the supers unit. What is the term of the unit. Is it a 30 year mortgage held by ?? I don't haven OP handy to review this but paying it off doesn't make sense somehow and based on the different income levels and to home programs you can't say everyone pays $100. What would happen is it would be based on your shares. Fo those with 140 shares pay less than those 300.
That's right, assessment should be based on shares.
Oh ... look this is such a nice group... I can already imagine the discussions/debates of the board.
Originally I said approx $100, in reality it will be based on shares. and for the supers apartment only. I based calculation on my apartment/shares.
Marshland:
My brief experience with taxes (not an accountant) is that it will be cheaper to pay mortgage off ourselves than refinancing it. The super's apt is due in 5 years the underlying building mortgage is due in 30, this is not budgeted according to my review of the plan. The accountant is however in the budget so we may ask him :-)
The budget in the OP is only for the first year operating costs and let's keep our fingers crossed it will not be exceeded.
108thSt, you are right about inflation and that is something that has to be discussed, knowing American culture of borrowing for living...I think it is better to spread out the payments ahead of time this way the building will be covered. But it sucks that we will need assessment the first year of operation, keep in mind the money can be out in interest bearing account and overtime shareholders will pay less for the final payment. also maybe it is better to asses the entire cost of supers apartment and pay it out in the first year as ling as there is no pre-payment penalty.
As it is getting warmer and warmer out, I'm wondering if there is any way to (legally) remove the guards that only allow us to open the window about three inches or so.
Yes,
If you do not have children, under 10 I believe believe, you do not need to keep window guards. But remember that the annoying annual form must be filled out and given to management stating you have no children and want the bars removed.
When I looked at my apartment the first thing I said was "Please get those ugly things out."
Besides the guards there may also be stops at the top of window channels that can be popped out.
Thanks, Kefir King. How do I get the form to get the process rolling? I want those things out yesterday!!!
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