It really depends on your monthly income and the state of your buildings structure.

I gather that your building has no elevator. So the main emergencies you could have is the boiler and maybe some major plumbing work. Local Law 11 shouldn't apply for your building ( facade maintenance )

Typically banks require that coops maintain at least 10% in reserves, which is by far not enough.

You should have enough money in your reserves to cover emergencies like replacing a boiler if it's reaching it's life expectancy for example. The roof and facade should be on your list as well.

Reserves vary from building to building. Before deciding on an amount, I'd recommend you do a complete survey. How long will your boiler last? Your oil tank? How are your windows? Your fire escapes? Your facade? (Even if you're not covered by LL11, you need to make sure no liability issues are sneaking up on you in the form of loose bricks.) What infrastructure improvements (electrical, plumbing and waste disposal systems) are needed? How's your foundation? Your roof? Is your building dingy/dark/dirty? What's your mortgage? How are your arrears? Think of every question you will need to address in a financial manner.

Spend a little money upfront to get an engineer's assessment, then sketch out a timeline for capital improvements (boiler in 5 years, roof in 10, etc.) and other needed repairs. Try to build your reserves to cover these without an assessment.

If your immediate financial needs are high, you may need to boost your reserves quickly, through a maintenance increase, flip tax, or income-producing idea; you can also impose one-time operational assessments, such as a fuel-oil surcharge, if your PL permits.

Best of luck! R

My complex has about $8k per units and we do not consider this level sufficient. We currently have:
• Capital Reserve Account
• Mortgage Escrow
• Water/sewer self escrow
• Real Estate Tax self escrow
• Insurance self escrow

Why self escrow? Well it has benefits for financial flexibility, earns interest on the accumulation of funds and saves costs. Here is a summary of our current funds:

The Capital Reserve is self explanatory and we have currently $650k in a segregated account.

Our mortgage agreement states that we maintain a separate reserve for mortgage payments equaling 10% of annual shareholder revenue (not including rental income). Its balance is currently $72k in another segregated account.

We save up monthly for the annual Water/sewer bill. We currently have $40k in a yet another segregated account for this purpose. This will need a lower balance if we can switch to quarterly billing.

We save up monthly for the annual Real Estate Taxes. This allows us to pay it off early (all at one time) and to take advantage of earnings on the accumulation of funds and the NYC discount for paying early. We currently have $100k in a yet another segregated account for this purpose.

We save up monthly for the annual Insurance Policy charges. This allows us to pay it off early (all at one time) and to not incur premium financing interest and fees. We currently have $11k in a yet another segregated account for this purpose.

The last three are considered operating reserves and we can draw on these funds at any time if necessary. If we do that though, we have to live with the fiscal consequences – like how do we make up the funds for when the payments are due. But sometimes buying time is all you need.

Having this many reserve & escrow accounts really adds to our financial flexibility, however, it is a bit of a complex structure. In my opinion, it takes a savvy management company to run this type of a set-up. All of these accounts are at Vanguard. If you want the management company we currently use, just e-mail me.

We also like to keep $45k in the operating account by December of each year to get us through the Jan – June lean months. We keep this account at a local bank (we don't assess the abatements).

Our audited financial statements can be found here: http://www.naborsapts.org/wp-content/uploads/2010/02/finst09.pdf

That seems large depending on the value of the building. We have a 111 unit three building complex with a self-amortizing mortgage originally valued at $2.7 million and now valued at $2.0 million. We also have two unsecured and self-amortizing loans totaling $830k for a windows install. Our Audited Financial Statements are available for details for all to see at: http://www.naborsapts.org/wp-content/uploads/2010/02/finst09.pdf.

With a mortgage that large, I hope the building is making payments on the principal (amortizing). If not, you are at risk not only for high interest payments but if the value of your complex does not increase, you borrowing power may be effectively capped.

I have heard that a formula is used to calculate the size of the mortgage to the size of the building, as a percentage. I am in a building with 300 units. How high should a reasonable mortgage be, and what is the formula- if one exists- based on?

A Christmas wreath is definitely a Christian holiday decoration, so you would seem to be on pretty safe ground exactly as you are. Perhaps the closest analogue to a menorah would be a Christmas tree with a star on top. Both are bright, festive, and religious but not in-your-face religious. A manger scene would be over the top, in my view.

We've had both a Christmas tree and a menorah in our lobby for as many years as I can remember and there have never been any complaints. In your case, you should try to get some idea of how widespread the sentiment is for changing things in your building. If the complaints are really restricted to just one obstreperous board member, you can take a formal vote and close the complaint. (Of course you should check with your attorney to make sure you position is defensible.)

To me, in the context you are discussing, a menorah is a holiday decoration like a wreath and Xmas lights. I think it would be offensive if there wasn't a menorah up with the xmas decorations. What else would you put? I don't think a menorah is necessarily a religious symbol at all. I'm a secular Jew and I don't view it as such.But just like I wouldn't have a wreath or xmas lights in my house, I'd be happy with wreath, lights, xmas tree AND a menorah in my lobby. I wouldn't be happy with a creche
because that feels too religious.

I think this issue is foolish. I am of both faiths Jewish and Catholic. First and foremost most symbols are Pagan, they don't stand for anything. A tree is lovely, I've never had one in my home, but a Menorah is a symbol of a struggle and of oil that was given for one night and lasted 8 days. A manger is clearly a religious article and I would not want that in front of a building, in front of a church is one thing but that is a but over the top. Just let it be the wreath, tree, Menorah and that's it. If this person wants a manger let them put it in their home or window.

Fortunatly, this cost can be precisely budgeted for:

Effective January 1, 2011, there is a weekly increase of $12 per employee for health benefits and $4 for pension. On April 20, 2011 salary increases become effective. Superintendents get an increase of $19 per week, handy persons $17 and other employees $15.

anyone know if this is correct?

For New York City’s fiscal year 2010, which ended on June 30, the cost was $6.76 per hundred cubic feet of
water used, according to the New York City Department of Environmental Protection. For current fiscal year 2011, the price rose to
$7.64.

The tax rate only slightly increased, however many buildings face significant increases in their assessed values which factor into the overal real estate taxes due. Our building's taxes went up by 8%

please see information:
You can calculate exactly what your January and April bills will be as described below. For Fiscal 2011-2012, we could actually see REDUCED assessments due to the phase-in; the property tax abatement program for qualifying home owners in NYC cooperatives and condominiums is in place for fiscal 2012.

Despite the down economy, this year’s property tax assessment actually consists of 20% of the assessment change for Fiscal Year 2010-2011, which may be lower to reflect current conditions, 20% of the assessment change for the Fiscal Year 2009-2010, when market conditions were quite dismal, 20% of the assessment change for the Fiscal Year 2008-2009, developed based on a snapshot in time on January 5, 2008, when all looked rosy, 20% of the assessment change for Fiscal Year2007-2008, when times were very good, and 20% of the assessment for Fiscal Year 2006-2007 – ancient history with excellent market conditions.
. Late in June, when it adopted the budget, the City set a tax rate of 13.353% for Class 2 properties for Fiscal Year 2010-2011, a modest increase over last year’s rate of 13.241%. Here are the new rates for key classes of NYC properties.

Fiscal
2009-2010 Fiscal
2010-2011

Class 1 (1-3 family homes) 17.088% 17.788%

Class 2 (multiple dwellings) 13.241% 13.353%

Class 4 (commercial property) 10.426% 10.227%
But these rates were not established in time to be applied to our July 1st tax bills. The Department of Finance must send out those bills mid-June. Therefore, the Department of Finance applied last year’s tax rate (13.241%) to this year’s assessment on July and October 2010 tax bills. The shortfall will be made up on our January and April tax bills, which will reflect the new rate of 13.353% PLUS the additional 0.112% not billed in July and October. This should not be overlooked in budget planning .

for the EL 2 rate - most commonly charged for residential buildings , there will be NO increase for gas or electric for 2011 !!!!

Can you please give me the official source of this information. I could not find it mentioned anywhere. Thank you.

Babara

For the small commercial rate commonly used by buildings. the last raise went into effect in April 2010 and the man told me there are no more next year.

I pulled this from coed's web site:

quote"
Frequently Asked Questions

What does the Con Edison rate plan include?

The plan includes a levelized annual increase of approximately $420 million in each of the three years, April 1, 2010 through March 31, 2013. Once again, increased taxes drive a substantial portion of the rate plan, accounting for approximately 30 percent of the overall increase.

How will this affect customers’ bills?

A typical New York City residential customer using 300 kilowatt-hours of electricity a month would see a total bill increase of approximately $3.63 per month in the first year. A typical Westchester County residential customer, using 450 kilowatt-hours of electricity a month, would see a total bill increase of approximately $5.04 per month in the first year.
" end quote

I suspect that commercial plans are affected as well.

Thanks. am working to confirm. But Con Ed told me this press release can be used to budget:

http://tinyurl.com/ycawyjg

Answer to your questions
(1) Depends - we are a small building with 57 apts but 70K of space ,terraces, two indoor parking garages so our mortgage is quite large as we have to maintain and upgrade our facilities, plant, and equipment. I can’t speak for your building since I don’t know the location and layout and work done or the terms of your underlying mortgage.
(2) Sponsor only has to file amendments with the attorney general if they are actively listing apartments for sale. If they are not actively listing apartments for sale - nothing is required. Our sponsor still owns 55% of apartments 60% of shares, 30 years since the co-op converted, so we are very versed in the requirements.
The sponsor amendment should state the apartments owned, rent roll, any pledges of their shares.
The Board should have a copy of the most recent filing, you can ask the managing agent and/or sponsor when the last amendment was. Most bylaws require a copy of the amendments to be distributed to all shareholders - but this is often not done - and cost is a factor in distribution. So we and the managing agent accumulate for shareholders who ask.
Another way to obtain the most recent sponsor statement - since your sponsor still owns more than 10% of the shares – any refinance or purchase financing from a bank will require the most recent sponsor amendment or questionnaire with the details you seek, you may want to investigate.
My suggestion is ask in writing about amendments and keep investigating, review your budget and underlying mortgage documents, and plan for the future with your fellow board members in a transparent manner.
Good Luck, hope it helps.

We ave the same problem also. In fact out hot water is colored blue. We even had to replace a section of pipe that caused a flood. This all started two years ago when we converted from oil to natural gas heat.

A plumber suggested we get an electrician to do an inspection and make sure that nothing is grounded to or near a water line as the culprit could be electralysis which. I'm going to look into having an electrician doing this, but if this fails, I really don't know what else to to.

You should consider hiring an engineer to properly examine your system.

increase your reserve fund. update and make sure your common spaces are polished, and when i say polished i mean shiny. make sure all of your mechanical equipment is in good working order.

Hi,

Our Board asked just that. This is what we are doing:
• Make your building look as good as possible. Have the city plant sidewalk trees; plant, care for and water your gardens; a fresh coat of paint on the corridor walls and lobby, clean clothed staff; no offensive odors; clean common area glass (windows); no sidewalk or garden trash;
• Reserve & self escrow funds – we currently have about $7,500 per unit and we are finding that is not enough (we have 111 units);
• Make sure maintenance charges are at a sustainable level – raise your maintenance on a cost of living basis each year so there are no sudden spikes;
• Encourage people to renovate before they sell, including estate units;
• When shareholders are preparing to sell, talk up the building. Suggesting starting their pricing on the high side then backing off if necessary;
• We hold a view that we can influence the market (by doing the above). We are under no illusion that we can control the market;
• Make sure everything is in repair;
• If your windows are strong enough and you area is safe enough, encourage people to take down those gates;
• Hide the rat traps.

I often find that I can just walk through the buildings and not notice things because I am just doing my routine. Have Board Members perform a "walk-though" on each floor and public space: have them pretend that they are seeing the space for the first time and develop a list for management to address any dirty, unsafe & unsightly issues.

As a result, we have had two record prices for units this year in N Washington Heights and S Inwood (between Nagle and Dyckman St).

Good luck!

If your PL states a cap clearly, the 7.5% increase could have been made in error. As for the subfee, unless the PL includes that in the cap, the board probably acted properly.

Check with the managing agent or board about this. Or consult an attorney (but keep in mind, any legal action will cost YOU, as a shareholder).

I am a bit surprised that a PL has caps on maintenance. This is more appropriate for the bylaws where it states that the board fixes the financial requirements of the corporation and any additional assessments required. Regarding subfees, sublets, etc. the proprietary lease and by-laws may have wording to specific fees. Are you sure you talk about a cap on the maintenance in the PL?

The New York Council Of Cooperatives issues a pamphlet every year with comparisons of coop maintenance charges of is member's buildings broken down into several subcategories.

For apartment buildings the comparison is done on a per room basis and for loft buildings on a per sq foot basis.

It's probably the most accurate way to compare them.

Keep in mind that the square footage of an apartment has it's tricks as well.
Some include the partition walls, others the closets and some the outside building walls.

Our co-op starting tracking square footage/maintenance stats about five years ago when shareholders complained about our "high" fees. We discovered that our co-op, though slightly above average for our area, was still a very good value where maintenance is concerned, especially important in the larger apartments.

Don't forget that the fees also reflect the cost of the underlying mortgage. That varies from coop to coop so it is very hard to compare other than in a very general way.

Lol - not a chance. Building layout, location and service load issues have a huge impact. For example an 111 unit Coop in one building with doormen verses an 111 unit Coop in three buildings with doormen are very different from a cost perspective.

In my opinion, be very careful in making comparisons like this.

Deciding whether or not maintanence is high is extremely subjective. There is no scientific method to determine it. Appraisers would be the first ones to tell you this. However, it is a good idea to look at the ratio between maintancence and sq. ft selling price. That gives you a broad perspective on your building and others.

Hope this helps.

http://www.thepinehurst.org/resources/ManhMaintWeb.pdf