Well if I can read behind the lines, it sounds like your co-op has insufficient funds. Take for example the STAR credit. The 2013/2014 one is not ready yet so you must be talking about the 2012/2013 one. That credit was for the previous year (2012/2013). It is usually credited to the shareholders January through June or January 2013 through June 2013 in this case.

Sometimes there are processing delays outside of the control of management necessitating a Feb-June or March – June payout, for example.

While not getting the STAR credit by this time is a concern, not having funds to pay Real Estate Taxes should be even more alarming. Many properties (mine, for example), save up ahead of time and pay off the Real Estate Taxes in June for the entire year (not just the payment due at that time). This gives the property interest while saving up each month, a discount when paying and a working capital buffer in case of true emergencies.

By the way, be careful if you assess the STAR or Co-op credits back to the corporation. If you only assess those who receive the credits, you may be inadvertently treating the shareholders unequally and opening up yourselves to legal action.

I would suggest finding out how much cash is coming in, where the funds are going, and making the hard choices necessary to put the financial footing of property on back on track.

Steve

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Thanks Steve..

I am not sure if the co-op is using the credits to pay the property taxes.

I'll check The BBL on DOF sight.

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a co-op can opt to assess the STAR credit. however, they must also assess those who don't receive STAR for the same amount.

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