On April 25,1997 a Special Meeting of Shareholders was held.

Five board members and about half a dozen shareholders attended the meeting. Many shareholders attended by proxies. Over 2/3 of all shares were voted in favor of the proposal to treat separating gay and lesbian shareholders in the same fashion as divorcing shareholders, for the purposes of the 2% transfer fee. The exact language, as amended, is attached. The vote tally was:

Among the concerns voiced at the meeting:

Issue number one was not fully answered. Among the responses:

Issue number two can be addressed assuming the shareholder has estate planning advice from an attorney. The alternatives are too complicated to outline completely in the Newsletter.

Board members thanked Bob Bangiola and Patricia Bostelman for their focus and perseverance, going door-to-door, explaining the amendment, and gathering proxies.

The board members stayed after the official part of the meeting ended to discuss these shareholder concerns:

A special "Window Maintenance Form" is attached to this Newsletter. If you need fenestrative assistance, please fill it out immediately and slip it under Mark Lilien's door (3E). Please do not fax it to the office or give it to anyone else. If you have recently reported window problems, please use this form anew.

To prevent the staff errors listed above, Ken Newman will fax all notices relating to authorized guests and authorized pet feeders to Rifat Otovic, who will post the notices on a bulletin board next to the time clock in the staff lounge. Since every staff member must use the clock twice daily, they will see the messages. For this plan to work, it is important to contact Ken Newman first. Rifat Otovic can fax your message.

Furthermore, every pet owner (and other people who would like to help) can fill out the following Pet List Form, which will be sent to everyone on the list. People with pets will have candidates to exchange pet feeding opportunities while travelling. If you would like to be on the list, please ask Rifat Otovic to fax this form to Ken Newman.

LEASE

Paragraph 16(a)(vii) As a condition to the transfer of shares of stock in the Corporation as an incident to a sale of the apartment to which such shares have been allocated, the seller shall pay to the corporation, by a certified check drawn on a New York bank payable to the Lessor, a fee of two per cent (2%) of the total sale price applicable thereto, payable at the time of such transfer. Such fee shall not be applicable to Unsold Shares (as defined in the Offering Plan therefor) or to transfers from the executors or administrators of a deceased stockholder to a person who, immediately prior to the death of such stockholder was a member of the immediate family of the Lessee or to assignments to an assignee who, at the time of the assignment, is a member of the immediate family of the Lessee, or to an executor or other personal representative on the death of a Lessee. For purposes of this subparagraph, "immediate family" shall mean the spouse, former spouse, parents or children of the Lessee and the economic and social partner of a Lessee in an established gay or lesbian relationship in which both partners jointly owned and resided in the Unit being assigned. For purposes of this subparagraph, the "sale price" in a mortgage foreclosure sale shall mean the amount of the outstanding balance of the mortgage obligation.

BY LAW

Section 10, Article VI As a condition to the transfer of shares of stock in the Corporation as an incident to a sale of the apartment to which such shares have been allocated, the seller shall pay to the corporation, by a certified check drawn on a New York bank payable to the Lessor, a fee of two per cent (2%) of the total sale price applicable thereto, payable at the time of such transfer. Such fee shall not be applicable to Unsold Shares (as defined in the Offering Plan therefor) or to transfers to or from the executors or administrators of a deceased stockholder or to assignments to an assignee who, at the time of the assignment, is a member of the immediate family of the Lessee, or to an executor or other personal representative on the death of a Lessee. For purposes of this subparagraph, "immediate family" shall mean the spouse, former spouse, parents or children of the Lessee and the economic and social partner of a Lessee in an established gay or lesbian relationship in which both partners jointly owned and resided in the Unit being assigned. For purposes of this subparagraph, the "sale price" in a mortgage foreclosure sale shall mean the amount of the outstanding balance of the mortgage obligation.

PET LIST FORM

If you would like to help feed your neighbors' pets while the neighbors are away, please ask Rifat Otovic to fax this to Ken Newman.

Name ________________________________________ Apartment __________________

Work Phone ______________________________ Home Phone ____________________

Please list all pets and each one's name

        Example: Eisenhower(dog), Goldwater (cat), Dewey(turtle)

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

WINDOW MAINTENANCE FORM

After filling out this form, please slip it under Mark Lilien's door (3E). Please do not give to anyone else.

Name ________________________________________ Apartment __________________

Work Phone ______________________________ Home Phone ____________________

Please list the room(s) whose window(s) require maintenance. For each window listed, please write "spring" if the window will not stay open when you slide it open, or "glass" if the window glass is cloudy inside, cracked, or broken. Example:

       left living room window – spring
       right living room window -- glass

__________________________________________________________________________

__________________________________________________________________________

Glass is replaced by the glazier. Springs are replaced by our building staff.

The board met on May 13 and June 10, 1997. Among the issues discussed:

A board member and an attorney are each alleging assault by the same garage employee. Furthermore, a suit has been brought against the garage operator because although the lease ended April 30, the operator refuses to surrender the premises. Two board members removed their cars and rented space in another garage, due to the alleged assaults and alleged physical damage done to their cars.

If the landlord wins the court case, and the operator is removed, payments made to him may be lost (not credited by the new garage operator). For example, If you pay for August and the new company takes over on August 10, you might have to pay for the remainder of August again.

If you are victimized by the current garage operator's employees, please call Ken Newman at (212) 319-3000. Regardless of the lawsuit, the co-op will continue to collect rent.

When the current operator leaves, bollards will be installed around the water meters, south exit door, and near the underside of the ramp. Bollards are steel pipes sunk into the floor to block cars from occupying unauthorized spaces or damaging the plumbing. The area below the garage ramp is owned by this co-op and not authorized for use by the garage operator. It may be used for storage in the future, so it will be fenced off.

The new operator has agreed to paint the garage floor and allow the co-op to complete its waterproofing of the ramp.

Mark Lilien contacted over a dozen laundry operators. Two submitted bids which include 30 pound dryers (twice the capacity of our current dryers) and at least 1 upgraded washer. Ken Newman and Mark Lilien were authorized to negotiate a lease with one of the operators.

Over 40 alarms were installed in the public areas (hallways, stairwells, laundry, etc.).

People applying to purchase apartments will now be charged a $175 application fee. The fee will go to the co-op, not the managing agent. Many other co-ops in Manhattan charge similar fees, which go to their managing agents. Anyone buying additional shares in the co-op (to buy a second apartment, for example) is exempt from the fee.

People selling an apartment will be asked for the $500 moving deposit when the purchase candidate(s) submit their application. The deposit is refunded after the move-out, if there is no damage. Until now, the $500 was collected before the closing date was assigned.

A box was installed in the mail room. If you require maintenance service (window spring broken, leaky faucet, etc.) or have a customer service problem, the box has a slot for forms to be submitted. It also holds extra blank forms. Jim Kafadar will unlock the box and review the forms with Rifat Otovic, if they list maintenance requests. Jim will forward service issues to Ken Newman.

Use of the forms is not required. Anyone can call Ken Newman or Rifat Otovic or see them in person. The forms and the box are merely an additional convenience.

Ken was asked to have the video and book stores remove their sidewalk signs. After repeated urgings, they did so. The video store was repeatedly asked to replace its cracked window and door glass. The video store has complied with the request.

A physically handicapped resident who needs a tricycle for mobility requested permission to store her tricycle in the basement. The board voted to allow her to place it in an underutilized space in the basement, outside the bike room, for $75 annually, paid in advance.

The bike room is fully rented, but some alternative bike hanger brackets are being tested, which may lead to a greater capacity.

When a bank issues a mortgage loan, it requests the co-op to sign a "recognition agreement". This document states that the co-op must inform the lender of any defaults by the shareholder. The bank can act on this information to protect its loan. In the past couple of months, the co-op has informed one lender of a shareholder failing to pay promptly some money owed to the co-op. Another lender was informed when a shareholder allegedly refused to allow a carpet reinspection after repeated noise complaints.

Board members are calling Omnipoint, Bell Atlantic, AT&T, Sprint, NexTel and Next Wave to see if any of these firms want to use the roof for cellphone antennae. If chosen, the co-op may earn significant rental fees from this arrangement.

Of the original 137 apartments: